Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Schedule of components of provision (benefit) for income taxes

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

	Year ended December 31,
	2017		2016		2015
Current tax provision (benefit):
Federal	$	5,853	$	(3,801)	$	3,801
State		180		111		1,035
		6,033		(3,690)		4,836
Deferred tax provision (benefit):
Federal		(166,890)		(77,430)		66,430
State		20,133		(6,106)		5,239
		(146,757)		(83,536)		71,669
Provision (benefit) for income taxes	$	(140,724)	$	(87,226)	$	76,505

Schedule of income tax rate reconciliation

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

	Year ended December 31,
	2017		2016		2015
Computed provision (benefit) for income taxes at the statutory rate	$	100,864	$	(87,084)	$	68,013
Increase (decrease) in income taxes resulting from:
State income tax provision (benefit), net of federal income tax benefit		7,778		(5,768)		5,416
Non-deductible expenses		3,230		3,552		3,641
Valuation allowance changes affecting the provision for income taxes		505		751		(899)
Excess tax benefits from share-based compensation		(5,377)		—		—
Revaluation of net deferred taxes for the Tax Act		(246,845)		—		—
Other, net		(879)		1,323		334
Provision (benefit) for income taxes	$	(140,724)	$	(87,226)	$	76,505

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, 2017 and 2016 are as follows (in thousands):

	As of December 31,
	2017		2016
Deferred tax assets:
Intangible asset	$	(206)	$	4,983
Accrued benefits		31,651		48,482
Net operating loss carryforward		122,648		286,389
AMT credit carryforward		23,443		17,589
Deferred aircraft credits		53,870		60,415
Accrued reserves and other		26,853		47,906
Total deferred tax assets		258,259		465,764
Valuation allowance		(10,642)		(8,877)
Deferred tax liabilities:
Accelerated depreciation		(666,637)		(1,022,291)
Total deferred tax liabilities		(666,637)		(1,022,291)
Net deferred tax liability	$	(419,020)	$	(565,404)