Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes [Line Items]

Components of Income Tax Provision

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

	Year Ended December 31,
	2019		2018		2017
Current income tax provision:
State and Local	$	2	$	3	$	10
Foreign	8		29		14
Current income tax provision	10		32		24
Deferred income tax provision:
Federal	498		390		2,026
State and Local	62		50		63
Deferred income tax provision	560		440		2,089
Total income tax provision	$	570	$	472	$	2,113

Reconciliation of Income Tax Provision

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

	Year Ended December 31,
	2019		2018			2017
Statutory income tax provision	$	474	$	396		$	1,188
State income tax provision, net of federal tax effect	47		44			59
Book expenses not deductible for tax purposes	31		12			33
Foreign income taxes, net of federal tax effect	8		23			7
Change in valuation allowance	4		(6		)	(3		)
2017 Tax Act	—		—			823
Other, net	6		3			6
Income tax provision	$	570	$	472		$	2,113

Deferred Tax Assets and Liabilities

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

	December 31,
	2019			2018
Deferred tax assets:
Operating loss carryforwards	$	2,103		$	2,343
Leases	2,077			2,189
Loyalty program liability	1,755			1,770
Pensions	1,229			1,430
Postretirement benefits other than pensions	145			145
Rent expense	126			136
Alternative minimum tax (AMT) credit carryforwards	90			175
Reorganization items	30			33
Other	613			631
Total deferred tax assets	8,168			8,852
Valuation allowance	(34		)	(30		)
Net deferred tax assets	8,134			8,822
Deferred tax liabilities:
Accelerated depreciation and amortization	(5,196		)	(5,280		)
Leases	(1,979		)	(2,081		)
Other	(343		)	(326		)
Total deferred tax liabilities	(7,518		)	(7,687		)
Net deferred tax asset	$	616		$	1,135

American Airlines, Inc. [Member]

Income Taxes [Line Items]

Components of Income Tax Provision

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

	Year Ended December 31,
	2019		2018		2017
Current income tax provision:
State and Local	$	2	$	3	$	14
Foreign	8		28		10
Current income tax provision	10		31		24
Deferred income tax provision:
Federal	567		453		2,176
State and Local	56		50		70
Deferred income tax provision	623		503		2,246
Total income tax provision	$	633	$	534	$	2,270

Reconciliation of Income Tax Provision

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

	Year Ended December 31,
	2019		2018			2017
Statutory income tax provision	$	547	$	460		$	1,244
State income tax provision, net of federal tax effect	41		46			53
Book expenses not deductible for tax purposes	29		10			30
Foreign income taxes, net of federal tax effect	8		22			6
Change in valuation allowance	5		(6		)	4
2017 Tax Act	—		—			924
Other, net	3		2			9
Income tax provision	$	633	$	534		$	2,270

Deferred Tax Assets and Liabilities

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

	December 31,
	2019			2018
Deferred tax assets:
Operating loss carryforwards	$	2,115		$	2,420
Leases	2,067			2,176
Loyalty program liability	1,755			1,770
Pensions	1,219			1,421
Postretirement benefits other than pensions	145			145
Rent expense	126			136
Alternative minimum tax (AMT) credit carryforwards	118			231
Reorganization items	30			33
Other	569			588
Total deferred tax assets	8,144			8,920
Valuation allowance	(24		)	(19		)
Net deferred tax assets	8,120			8,901
Deferred tax liabilities:
Accelerated depreciation and amortization	(5,153		)	(5,243		)
Leases	(1,968		)	(2,068		)
Other	(340		)	(321		)
Total deferred tax liabilities	(7,461		)	(7,632		)
Net deferred tax asset	$	659		$	1,269