Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Line Items]

Components of Income Tax Provision

The significant components of the income tax provision (benefit) were (in millions):

	Year Ended December 31,
	2022		2021		2020
Current income tax benefit:
State, local and foreign	$	(6)	$	—	$	—
Deferred income tax provision (benefit):
Federal	59		(508)		(2,335)
State and local	6		(47)		(233)
Deferred income tax provision (benefit)	65		(555)		(2,568)
Total income tax provision (benefit)	$	59	$	(555)	$	(2,568)

Reconciliation of Income Tax Provision

The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):

	Year Ended December 31,
	2022		2021		2020
Statutory income tax provision (benefit)	$	39	$	(535)	$	(2,405)
State, local and foreign income tax benefit, net of federal tax effect	—		(37)		(183)
Book expenses not deductible for tax purposes	22		23		22
Other, net	(2)		(6)		(2)
Income tax provision (benefit)	$	59	$	(555)	$	(2,568)

Deferred Tax Assets and Liabilities

The components of our deferred tax assets and liabilities were (in millions):

	December 31,
	2022		2021
Deferred tax assets:
Operating loss and other carryforwards	$	4,679	$	4,612
Loyalty program liability	1,809		1,903
Leases	1,819		1,833
Pensions	474		941
Postretirement benefits other than pensions	179		214
Rent expense	130		92
Other	742		784
Total deferred tax assets	9,832		10,379
Valuation allowance	(19)		(34)
Net deferred tax assets	9,813		10,345
Deferred tax liabilities:
Accelerated depreciation and amortization	(4,630)		(4,747)
Leases	(1,832)		(1,767)
Other	(262)		(284)
Total deferred tax liabilities	(6,724)		(6,798)
Net deferred tax asset	$	3,089	$	3,547

American Airlines, Inc.

Income Taxes [Line Items]

Components of Income Tax Provision

The significant components of the income tax provision (benefit) were (in millions):

	Year Ended December 31,
	2022		2021		2020
Current income tax benefit:
State, local and foreign	$	(6)	$	—	$	—
Deferred income tax provision (benefit):
Federal	112		(453)		(2,224)
State and local	10		(47)		(229)
Deferred income tax provision (benefit)	122		(500)		(2,453)
Total income tax provision (benefit)	$	116	$	(500)	$	(2,453)

Reconciliation of Income Tax Provision

The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):

	Year Ended December 31,
	2022		2021		2020
Statutory income tax provision (benefit)	$	95	$	(478)	$	(2,290)
State, local and foreign income tax provision (benefit), net of federal tax effect	3		(37)		(181)
Book expenses not deductible for tax purposes	20		21		20
Other, net	(2)		(6)		(2)
Income tax provision (benefit)	$	116	$	(500)	$	(2,453)

Deferred Tax Assets and Liabilities

The components of American’s deferred tax assets and liabilities were (in millions):

	December 31,
	2022		2021
Deferred tax assets:
Operating loss and other carryforwards	$	4,492	$	4,476
Loyalty program liability	1,809		1,903
Leases	1,804		1,822
Pensions	467		934
Postretirement benefits other than pensions	179		215
Rent expense	130		92
Other	689		734
Total deferred tax assets	9,570		10,176
Valuation allowance	(9)		(24)
Net deferred tax assets	9,561		10,152
Deferred tax liabilities:
Accelerated depreciation and amortization	(4,603)		(4,715)
Leases	(1,817)		(1,758)
Other	(256)		(279)
Total deferred tax liabilities	(6,676)		(6,752)
Net deferred tax asset	$	2,885	$	3,400