Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2015			2014			2013
Current	$	20		$	(16	)	$	(22	)
Deferred		(3,014	)		346			(324	)
Income tax provision (benefit)	$	(2,994	)	$	330		$	(346	)

Computation of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2015			2014			2013
Statutory income tax provision (benefit)	$	1,616		$	1,123		$	(763	)
State income tax provision (benefit), net of federal tax effect		72			75			(8	)
Book expenses (benefits) not deductible for tax purposes		57			(1	)		27
Bankruptcy administration expenses		3			95			83
Interest cutback to net operating loss (NOL)		—			—			141
Alternative minimum tax credit refund		—			(24	)		(22	)
Change in valuation allowance		(4,742	)		(1,323	)		717
Tax provision (benefit) resulting from OCI allocation		—			330			(538	)
Other, net		—			55			17
Income tax provision (benefit)	$	(2,994	)	$	330		$	(346	)

Deferred Tax Assets and Liabilities

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

	December 31,
	2015			2014
Deferred tax assets:
Postretirement benefits other than pensions	$	340		$	386
Rent expense		134			180
Alternative minimum tax credit carryforwards		346			346
Operating loss carryforwards		2,558			3,461
Pensions		2,436			2,403
Loyalty program obligation		590			948
Gains from lease transactions		262			207
Reorganization items		57			64
Other		1,200			1,210
Total deferred tax assets		7,923			9,205
Valuation allowance		(22	)		(4,816	)
Net deferred tax assets		7,901			4,389
Deferred tax liabilities:
Accelerated depreciation and amortization		(5,158	)		(4,829	)
Other		(266	)		(98	)
Total deferred tax liabilities		(5,424	)		(4,927	)
Net deferred tax asset (liability)	$	2,477		$	(538	)

American Airlines, Inc. [Member]

Components of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2015			2014			2013
Current	$	15		$	(24	)	$	(30	)
Deferred		(3,467	)		344			(324	)
Income tax provision (benefit)	$	(3,452	)	$	320		$	(354	)

Computation of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2015			2014			2013
Statutory income tax provision (benefit)	$	1,635		$	1,144		$	(725	)
State income tax provision (benefit), net of federal tax effect		71			81			(18	)
Book expenses not deductible for tax purposes		55			4			25
Bankruptcy administration expenses		3			86			82
Interest cutback to net operating loss (NOL)		—			—			53
Alternative minimum tax credit refund		—			(29	)		(30	)
Change in valuation allowance		(5,216	)		(1,285	)		780
Tax provision (benefit) resulting from OCI allocation		—			328			(538	)
Other, net		—			(9	)		17
Income tax provision (benefit)	$	(3,452	)	$	320		$	(354	)

Deferred Tax Assets and Liabilities

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

	December 31,
	2015			2014
Deferred tax assets:
Postretirement benefits other than pensions	$	340		$	379
Rent expense		134			121
Alternative minimum tax credit carryforwards		458			458
Operating loss carryforwards		2,818			3,737
Pensions		2,420			2,394
Loyalty program obligation		590			948
Gains from lease transactions		261			208
Reorganization items		57			64
Other		1,123			1,172
Total deferred tax assets		8,201			9,481
Valuation allowance		(14	)		(5,196	)
Net deferred tax assets		8,187			4,285
Deferred tax liabilities:
Accelerated depreciation and amortization		(5,011	)		(4,579	)
Other		(244	)		(242	)
Total deferred tax liabilities		(5,255	)		(4,821	)
Net deferred tax asset (liability)	$	2,932		$	(536	)