Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019		2018
Current income tax provision (benefit):
State and Local	$	—	$	2	$	3
Foreign	—		8		29
Current income tax provision (benefit)	—		10		32
Deferred income tax provision (benefit):
Federal	(2,335)		498		390
State and Local	(233)		62		50
Deferred income tax provision (benefit)	(2,568)		560		440
Total income tax provision (benefit)	$	(2,568)	$	570	$	472

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,
	2020		2019		2018
Statutory income tax provision (benefit)	$	(2,405)	$	474	$	396
State income tax provision (benefit), net of federal tax effect	(183)		47		44
Book expenses not deductible for tax purposes	22		31		12
Foreign income taxes, net of federal tax effect	—		8		23
Change in valuation allowance	—		4		(6)
Other, net	(2)		6		3
Income tax provision (benefit)	$	(2,568)	$	570	$	472

Deferred Tax Assets and Liabilities

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

	December 31,
	2020		2019
Deferred tax assets:
Operating loss carryforwards and other credits	$	4,027	$	2,103
Loyalty program liability	1,977		1,755
Leases	1,913		2,077
Pensions	1,405		1,229
Postretirement benefits other than pensions	203		145
Rent expense	96		126
Reorganization items	28		30
Alternative minimum tax (AMT) credit carryforwards	—		90
Other	847		613
Total deferred tax assets	10,496		8,168
Valuation allowance	(34)		(34)
Net deferred tax assets	10,462		8,134
Deferred tax liabilities:
Accelerated depreciation and amortization	(5,028)		(5,196)
Leases	(1,818)		(1,979)
Other	(386)		(343)
Total deferred tax liabilities	(7,232)		(7,518)
Net deferred tax asset	$	3,230	$	616

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,
	2020		2019		2018
Current income tax provision (benefit):
State and Local	$	—	$	2	$	3
Foreign	—		8		28
Current income tax provision (benefit)	—		10		31
Deferred income tax provision (benefit):
Federal	(2,224)		567		453
State and Local	(229)		56		50
Deferred income tax provision (benefit)	(2,453)		623		503
Total income tax provision (benefit)	$	(2,453)	$	633	$	534

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,
	2020		2019		2018
Statutory income tax provision (benefit)	$	(2,290)	$	547	$	460
State income tax provision (benefit), net of federal tax effect	(181)		41		46
Book expenses not deductible for tax purposes	20		29		10
Foreign income taxes, net of federal tax effect	—		8		22
Change in valuation allowance	—		5		(6)
Other, net	(2)		3		2
Income tax provision (benefit)	$	(2,453)	$	633	$	534

Deferred Tax Assets and Liabilities

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

	December 31,
	2020		2019
Deferred tax assets:
Operating loss carryforwards and other credits	$	3,944	$	2,115
Loyalty program liability	1,977		1,755
Leases	1,904		2,067
Pensions	1,397		1,219
Postretirement benefits other than pensions	203		145
Rent expense	96		126
Reorganization items	28		30
Alternative minimum tax (AMT) credit carryforwards	—		118
Other	796		569
Total deferred tax assets	10,345		8,144
Valuation allowance	(24)		(24)
Net deferred tax assets	10,321		8,120
Deferred tax liabilities:
Accelerated depreciation and amortization	(4,992)		(5,153)
Leases	(1,809)		(1,968)
Other	(294)		(340)
Total deferred tax liabilities	(7,095)		(7,461)
Net deferred tax asset	$	3,226	$	659