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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Significant components of the provision for income taxes from continuing operations are as follows:
 Year Ended December 31,
202120202019
(in thousands)
Current:
Federal$— $(141,997)$(22,429)
State and local568 (1,847)1,218 
Foreign1,183 (1,554)6,693 
Total current expense (benefit)1,751 (145,398)(14,518)
Deferred:
Federal(47,468)(33,494)106,703 
State and local(2,034)(12,592)8,986 
Total deferred expense (benefit)(49,502)(46,086)115,689 
Total income tax expense (benefit)$(47,751)$(191,484)$101,171 

The income tax provision differs from that computed at the federal statutory corporate tax rate as follows:
 Year Ended December 31,
202120202019
Expected provision at federal statutory tax rate21.0 %21.0 %21.0 %
State tax expense, net of federal benefit0.2 %1.9 %1.8 %
Revaluation of deferred taxes— %9.2 %(2.1)%
Premium on convertible debt repurchase(11.4)%— %— %
Other(0.6)%(1.2)%2.5 %
Total income tax expense (benefit)9.2 %30.9 %23.2 %

The Company accounts for income taxes using the asset and liability method. Deferred taxes are recorded based on differences between the consolidated financial statement basis and tax basis of assets and liabilities and available tax loss and credit carryforwards. At December 31, 2021 and 2020, the significant components of the Company's deferred taxes consisted of the following:
 December 31,
20212020
(in thousands)
Deferred tax assets:
Income tax credits$4,298 $4,298 
Net operating losses263,350 220,071 
Deferred revenue23,119 11,740 
Nondeductible accruals21,858 21,918 
Deferred manufacturing credits8,458 6,442 
Accrued maintenance566 568 
Equity compensation3,787 3,433 
Loan liability11,643 — 
Operating lease liability432,492 313,142 
Interest expense18,544 — 
Other334 465 
Valuation allowance(5,099)(2,949)
Deferred tax assets783,350 $579,128 
Deferred tax liabilities:
Convertible debt— 14,942 
Prepaid expenses770 898 
Property, plant and equipment644,407 603,173 
Deferred financing costs99 124 
Accrued aircraft and engine maintenance74,742 80,916 
Right-of-use asset438,804 318,969 
Deferred tax liabilities1,158,822 1,019,022 
Net deferred tax assets (liabilities)$(375,472)$(439,894)


On March 27, 2020, the CARES Act was enacted. The CARES Act allows for a five-year carryback of federal net operating losses generated in tax years 2018 through 2020. The Company filed for a carryback of its adjusted 2018 federal net operating tax loss to tax years 2013 and 2014. The federal net operating loss carryback resulted in a tax benefit of $56.1 million since the federal net operating losses can be benefited at the higher 35% federal tax rate in effect for tax years 2013 and 2014. The federal net operating loss carry back also generated an additional income tax receivable of $142.0 million as of December 31, 2020. During 2021, the Company received $109.2 million of the federal income tax receivable.
In assessing the realizability of the deferred tax assets, management considered whether it is more likely than not that some or all of the deferred tax assets would be realized. In evaluating the Company’s ability to utilize its deferred tax assets, it considered all available evidence, both positive and negative, in determining future taxable income on a jurisdiction by jurisdiction basis. As of December 31, 2021 and 2020, the Company had a valuation allowance of $5.1 million and $2.9 million, respectively, against certain deferred tax assets related to equity compensation for executives due to changes in tax law resulting from the Tax Cuts and Jobs Act ("TCJA"), state net operating loss carryforwards and foreign tax credits.
As of December 31, 2021, the Company had $2.8 million of foreign tax credits, $1.4 million of general business tax credits, $1.1 billion of federal net operating loss and $420.6 million of state net operating loss available, that may be applied against future tax liabilities. The foreign tax credits will begin to expire in 2025, the state net operating losses will begin to expire in 2027, the general business credits will begin to expire in 2038 and there is no expiration of federal net operating losses.
For tax years ended December 31, 2021, 2020 and 2019, the Company did not recognize any liabilities for uncertain tax positions nor any interest and penalties on unrecognized tax benefits.
For tax years 2021, 2020 and 2019, all income for the Company is subject to domestic income taxes.
The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company's federal income tax returns for 2018 through 2020 tax years are still subject to examination in the United States Various state and foreign jurisdiction tax years also remain open to examination. The Company believes that any potential assessment would be immaterial to its consolidated financial statements.