Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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,
	2021		2020		2019
Current income tax provision:
State and Local	$	—	$	—	$	2
Foreign	—		—		8
Current income tax provision	—		—		10
Deferred income tax provision (benefit):
Federal	(508)		(2,335)		498
State and Local	(47)		(233)		62
Deferred income tax provision (benefit)	(555)		(2,568)		560
Total income tax provision (benefit)	$	(555)	$	(2,568)	$	570

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,
	2021		2020		2019
Statutory income tax provision (benefit)	$	(535)	$	(2,405)	$	474
State income tax provision (benefit), net of federal tax effect	(37)		(183)		47
Book expenses not deductible for tax purposes	23		22		31
Foreign income taxes, net of federal tax effect	—		—		8
Change in valuation allowance	—		—		4
Other, net	(6)		(2)		6
Income tax provision (benefit)	$	(555)	$	(2,568)	$	570

Deferred Tax Assets and Liabilities

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

	December 31,
	2021		2020
Deferred tax assets:
Operating loss and other carryforwards	$	4,612	$	4,027
Loyalty program liability	1,903		1,977
Leases	1,833		1,913
Pensions	941		1,405
Postretirement benefits other than pensions	214		203
Rent expense	92		96
Reorganization items	24		28
Other	760		847
Total deferred tax assets	10,379		10,496
Valuation allowance	(34)		(34)
Net deferred tax assets	10,345		10,462
Deferred tax liabilities:
Accelerated depreciation and amortization	(4,747)		(5,028)
Leases	(1,767)		(1,818)
Other	(284)		(386)
Total deferred tax liabilities	(6,798)		(7,232)
Net deferred tax asset	$	3,547	$	3,230

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,
	2021		2020		2019
Current income tax provision:
State and Local	$	—	$	—	$	2
Foreign	—		—		8
Current income tax provision	—		—		10
Deferred income tax provision (benefit):
Federal	(453)		(2,224)		567
State and Local	(47)		(229)		56
Deferred income tax provision (benefit)	(500)		(2,453)		623
Total income tax provision (benefit)	$	(500)	$	(2,453)	$	633

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,
	2021		2020		2019
Statutory income tax provision (benefit)	$	(478)	$	(2,290)	$	547
State income tax provision (benefit), net of federal tax effect	(37)		(181)		41
Book expenses not deductible for tax purposes	21		20		29
Foreign income taxes, net of federal tax effect	—		—		8
Change in valuation allowance	—		—		5
Other, net	(6)		(2)		3
Income tax provision (benefit)	$	(500)	$	(2,453)	$	633

Deferred Tax Assets and Liabilities

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

	December 31,
	2021		2020
Deferred tax assets:
Operating loss and other carryforwards	$	4,476	$	3,944
Loyalty program liability	1,903		1,977
Leases	1,822		1,904
Pensions	934		1,397
Postretirement benefits other than pensions	215		203
Rent expense	92		96
Reorganization items	24		28
Other	710		796
Total deferred tax assets	10,176		10,345
Valuation allowance	(24)		(24)
Net deferred tax assets	10,152		10,321
Deferred tax liabilities:
Accelerated depreciation and amortization	(4,715)		(4,992)
Leases	(1,758)		(1,809)
Other	(279)		(294)
Total deferred tax liabilities	(6,752)		(7,095)
Net deferred tax asset	$	3,400	$	3,226