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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES 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, 2022 and 2021, are as follows:
 
(in millions)20222021
DEFERRED TAX LIABILITIES:
Accelerated depreciation$3,279 $2,883 
Prepaid insurance238 189 
Operating lease right-of-use assets311 356 
Other154 188 
Total deferred tax liabilities3,982 3,616 
DEFERRED TAX ASSETS:
Accrued employee benefits424 341 
Rapid rewards loyalty liability616 636 
Operating lease liabilities313 371 
Customer flight credits43 305 
Net operating losses and tax credits (a)310 36 
Other291 157 
Total deferred tax assets1,997 1,846 
Net deferred tax liability$1,985 $1,770 
(a) At December 31, 2022 and 2021, the Company had approximately $43 million and $44 million, respectively, of state net operating loss carryforwards (tax effected) to reduce future state taxable income. These state net operating loss carryforwards will expire in years 2025 - 2041 if unused. At December 31, 2022, the Company had $275 million (tax effected) of federal net operating loss carryforwards that were generated in 2022. The federal net operating loss can be carried forward indefinitely.

The provision (benefit) for income taxes is composed of the following:

(in millions)202220212020
CURRENT:
Federal (a)$(36)$337 $(273)
State(3)33 (5)
Change in federal statutory rate (b)— (2)(188)
Total current(39)368 (466)
DEFERRED:
Federal (a)208 (43)(589)
State20 23 (127)
Total deferred228 (20)(716)
Income tax provision (benefit)$189 $348 $(1,182)
(a) The CARES Act allows entities to carry back 2020 losses to prior periods of up to five years, and claim refunds of federal taxes paid. The Company filed the refund claim with the IRS, and received a refund of $472 million during second quarter 2022.
(b) The benefit is representative of the excess refund generated as the result of carrying the 2020 losses back to a period when the federal statutory tax rate was 35 percent as opposed to the current tax rate of 21 percent.
The effective tax rate on Income (loss) before income taxes differed from the federal income tax statutory rate for the following reasons:

(in millions)202220212020
Tax at statutory U.S. tax rates$153 $278 $(894)
State income taxes, net of federal benefit12 45 (115)
Change in federal statutory tax rate— (2)(a)(188)(a)
Convertible debt repurchases31 21 10 
Federal tax credits(13)(2)(1)
Other, net6 8 6 
Total income tax provision (benefit)$189 $348 $(1,182)
(a) The benefit is representative of the excess refund generated as the result of carrying the 2020 losses back to a period when the federal statutory tax rate was 35 percent as opposed to the current tax rate of 21 percent.

The only periods subject to examination for the Company’s federal tax return are 2020, 2021 and 2022 tax years. The Company is also subject to various examinations from state and local income tax jurisdictions in the ordinary course of business. These examinations are not expected to have a material effect on the financial results of the Company.