Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

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

	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	(1)	$	—	$	(10)
State and local	1		—		—
Current income tax expense (benefit)	—		—		(10)
Deferred:
Federal	41		(7)		(32)
State and local	2		(1)		(1)
Foreign	—		—		1
Deferred income tax expense (benefit)	43		(8)		(32)
Total income tax expense (benefit)	$	43	$	(8)	$	(42)

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,
	2023		2022		2021
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	1.4		1.7		1.6
Valuation allowance	115.8		—		—
Employee benefits	6.6		(1.6)		—
State refund adjustment	3.7		—		—
Executive compensation limitation	3.6		(3.9)		(0.5)
Change in state effective rate	0.9		0.8		—
Return to provision adjustment	—		(2.9)		—
Nondeductible warrants	—		—		(3.5)
Other non-deductible expenses	1.4		—		—
Excess tax benefits of stock-based compensation	(17.2)		1.2		5.2
Reserves for uncertain tax positions, net	(3.0)		0.6		6.2
Other	0.2		0.9		(0.8)
Effective income tax rate	134.4	%	17.8	%	29.2	%

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,
	2023		2022
Deferred tax assets:
Operating lease liability	$	669	$	568
Net operating losses	75		50
Nondeductible accruals	30		42
Deferred revenue	16		14
Income tax credits	2		1
Valuation allowance	(48)		(8)
Other	13		10
Deferred tax assets	$	757	$	677
Deferred tax liabilities:
Right-of-use asset	$	(658)	$	(559)
Property and equipment	(55)		(41)
Maintenance deposits	(19)		(24)
Intangibles	(6)		(6)
Other	(27)		(14)
Deferred tax liabilities	(765)		(644)
Net deferred tax assets (liabilities)	$	(8)	$	33

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):

	2023		2022		2021
Unrecognized tax benefits at January 1	$	1	$	1	$	10
Decrease for tax positions taken during prior period	(1)		—		(9)
Increase for tax positions taken during current period	—		—		—
Unrecognized tax benefits at December 31	$	—	$	1	$	1