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INCOME TAXES (TABLES)

12 Months Ended

Dec. 31, 2014

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred tax (assets) and liabilities comprise the following (in millions):



	2014			2013
Excess of tax over book depreciation	$	1,042		$	919
Other—net	22			21
Gross deferred tax liabilities	1,064			940

Mileage Plan	(206		)	(185		)
Inventory obsolescence	(20		)	(18		)
Deferred gains	(10		)	(12		)
Employee benefits	(166		)	(85		)
Fuel hedge contracts	(5		)	(14		)
Other—net	(24		)	(30		)
Gross deferred tax assets	(431		)	(344		)
Net deferred tax liabilities	633			596

Current deferred tax asset	(117		)	(113		)
Noncurrent deferred tax liability	750			709
Net deferred tax liability	$	633		$	596

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of income tax expense were as follows (in millions):



	2014		2013		2012
Current tax expense:
Federal	$	229	145		$	83
State	27		17		11
Total current	256		162		94

Deferred tax expense:
Federal	103		131		94
State	11		15		10
Total deferred	114		146		104
Income tax expense	$	370	$	308	$	198

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income tax expense reconciles to the amount computed by applying the U.S. federal rate of 35% to income before income tax and accounting change as follows (in millions):



	2014			2013			2012
Income before income tax	$	975		$	816		$	514

Expected tax expense	341			286			180
Nondeductible expenses	4			4			3
State income taxes	25			21			14
Other—net	—			(3		)	1
Actual tax expense	$	370		$	308		$	198

Effective tax rate	37.9		%	37.7		%	38.5		%

Summary of Income Tax Contingencies [Table Text Block]

A summary of the Company's jurisdictions and the periods that are subject to examination are as follows:



Jurisdiction	Period
Federal	2011 to 2013
Alaska	2011 to 2013
California	2010 to 2013
Oregon	2007 to 2013

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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