Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense are as follows (in millions):

	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	(10)	$	(134)	$	19
State and local	—		1		3
Current income tax expense (benefit)	(10)		(133)		22
Deferred:
Federal	(32)		(5)		49
State and local	(1)		(9)		4
Foreign	1		—		(1)
Deferred income tax expense (benefit)	(32)		(14)		52
Total income tax expense (benefit)	$	(42)	$	(147)	$	74

Schedule of Effective Income Tax Rate Reconciliation

The income tax provision differs from that computed at the federal statutory corporate tax rate as follows:

	Year Ended December 31,
	2021		2020		2019
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
Reserves for uncertain tax positions, net	6.2	%	(0.2)	%	0.1	%
Stock-based compensation	5.2	%	—	%	(0.2)	%
State taxes, net of federal benefit	1.6	%	2.1	%	1.8	%
Nondeductible warrants	(3.5)	%	(0.5)	%	—	%
Impact of CARES Act	—	%	16.9	%	—	%
Other	(1.3)	%	0.2	%	0.1	%
Effective income tax rate	29.2	%	39.5	%	22.8	%

Schedule of Deferred Tax Assets and Liabilities

The following table shows the components of the Company’s deferred tax assets and liabilities (in millions):

	December 31,
	2021		2020
Deferred tax assets:
Operating lease liability	$	551	$	514
Net operating losses	47		9
Nondeductible accruals	32		25
Deferred revenue	12		12
Income tax credits	2		—
Valuation allowance	(8)		—
Other	10		11
Deferred tax assets	$	646	$	571
Deferred tax liabilities:
Right of use asset	$	(545)	$	(507)
Property and equipment	(36)		(34)
Maintenance deposits	(22)		(19)
Intangibles	(6)		(7)
Leasehold interests	—		(6)
Other	(12)		(7)
Deferred tax liabilities	(621)		(580)
Net deferred tax assets (liabilities)	$	25	$	(9)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table shows the components of the Company’s unrecognized tax benefits related to uncertain tax positions (in millions):

	2021		2020		2019
Unrecognized tax benefits at January 1	$	10	$	9	$	9
Increase for tax positions taken during prior period	—		—		—
Decrease for tax positions taken during prior period	(9)		—		—
Increase for tax positions taken during current period	—		1		—
Unrecognized tax benefits at December 31	$	1	$	10	$	9