Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Schedule of components of provision for income taxes

The provision for income taxes includes the following components (in thousands):

	Year ended December 31,
	2016		2015		2014
Current tax provision (benefit):
Federal	$	(3,801)	$	3,801	$	(176)
State		111		1,035		838
Foreign				—		2,081
		(3,690)		4,836		2,743
Deferred tax provision (benefit):
Federal		(77,430)		66,430		4,697
State		(6,106)		5,239		371
		(83,536)		71,669		5,068
Provision for income taxes	$	(87,226)	$	76,505	$	7,811

Schedule of income tax rate reconciliation

	Year ended December 31,
	2016		2015		2014
Current tax provision (benefit):
Federal	$	(3,801)	$	3,801	$	(176)
State		111		1,035		838
Foreign				—		2,081
		(3,690)		4,836		2,743
Deferred tax provision (benefit):
Federal		(77,430)		66,430		4,697
State		(6,106)		5,239		371
		(83,536)		71,669		5,068
Provision for income taxes	$	(87,226)	$	76,505	$	7,811

The following is a reconciliation between the statutory federal income tax rate of 35% and the effective rate which is derived by dividing the provision for income taxes by income (loss) before for income taxes (in thousands):

	Year ended December 31,
	2016		2015		2014
Computed provision (benefit) for income taxes at the statutory rate	$	(87,084)	$	68,013	$	(5,720)
Increase (decrease) in income taxes resulting from:
State income tax provision (benefit), net of federal income tax benefit		(5,768)		5,416		(107)
Non-deductible expenses		3,552		3,641		3,865
Valuation allowance changes affecting the provision for income taxes		751		(899)		5,981
Foreign income taxes, net of federal & state benefit		—		—		1,973
Other, net		1,323		334		1,819
Provision for income taxes	$	(87,226)	$	76,505	$	7,811

Schedule of components of the net deferred tax assets and liabilities

The significant components of the Company’s net deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands):

	As of December 31,
	2016		2015
Deferred tax assets:
Intangible asset	$	4,983	$	30,369
Accrued benefits		48,482		47,514
Net operating loss carryforward		286,389		82,211
AMT credit carryforward		17,589		21,391
Deferred aircraft credits		60,415		55,544
Accrued reserves and other		47,906		24,575
Total deferred tax assets		465,764		261,604
Valuation allowance		(8,877)		(8,126)
Deferred tax liabilities:
Accelerated depreciation		(1,022,291)		(902,322)
Total deferred tax liabilities		(1,022,291)		(902,322)
Net deferred tax liability	$	(565,404)	$	(648,844)