INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred tax assets and liabilities at December 31, 2014 and 2013, are as follows:



(in millions)	2014		2013
DEFERRED TAX LIABILITIES:
Accelerated depreciation	$	4,277	$	4,069
Fuel derivative instruments	—		36
Other	51		84
Total deferred tax liabilities	4,328		4,189
DEFERRED TAX ASSETS:
Fuel derivative instruments	521		8
Deferred gains from sale and leaseback of aircraft	20		24
Capital and operating leases	125		163
Construction obligation	209		168
Accrued engine maintenance	83		90
Accrued employee benefits	334		307
State taxes	65		74
Business partner income	90		457
Net operating losses and credit carryforwards	3		14
Other	96		118
Total deferred tax assets	1,546		1,423
Net deferred tax liability	$	2,782	$	2,766

The provision for income taxes is composed of the following:



(in millions)	2014		2013			2012
CURRENT:
Federal	$	203	$	355		$	(45	)
State	29		44			12
Total current	232		399			(33		)
DEFERRED:
Federal	421		62			287
State	27		(6		)	10
Total deferred	448		56			297
	$	680	$	455		$	264

The effective tax rate on income before income taxes differed from the federal income tax statutory rate for the following reasons:



(in millions)	2014			2013			2012
Tax at statutory U.S. tax rates	$	636		$	423		$	240
Nondeductible items	9			10			10
State income taxes, net of federal benefit	37			25			14
Other, net	(2		)	(3		)	—
Total income tax provision	$	680		$	455		$	264

During 2014, the Company continued to maintain and did not adjust, a $5 million liability for unrecognized tax benefits, the majority of which related to AirTran’s tax positions in prior years.

The only periods subject to examination for the Company’s federal tax return are the 2013 and 2014 tax years.