INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities as of December 31, 2023 and 2022, are as follows:

(in millions)	2023		2022
DEFERRED TAX LIABILITIES:
Accelerated depreciation	$	3,595	$	3,279
Prepaid insurance	258		238
Operating lease right-of-use assets	276		311
Other	91		154
Total deferred tax liabilities	4,220		3,982
DEFERRED TAX ASSETS:
Accrued employee benefits	757		424
Loyalty program and flight credit liability	599		659
Operating lease liabilities	279		313
Net operating losses and tax credits (a)	309		310
Other	232		291
Total deferred tax assets	2,176		1,997
Net deferred tax liability	$	2,044	$	1,985

(a) As of December 31, 2023 and 2022, the Company had approximately $36 million and $43 million, respectively, of state net operating loss carryforwards (tax effected) to reduce future state taxable income. These state net operating loss carryforwards will expire in years 2025 through 2041 if unused. As of December 31, 2023 and 2022, the Company had $268 million and $275 million, respectively, of federal net operating loss carryforwards (tax effected) that may be carried forward indefinitely.

Components of the Income Tax Provision

The provision (benefit) for income taxes is composed of the following:

(in millions)	2023		2022		2021
CURRENT:
Federal	$	(10)	$	(36)	$	337
State	19		(3)		33
Change in federal statutory rate	—		—		(2)
Total current	9		(39)		368
DEFERRED:
Federal	140		208		(43)
State	19		20		23
Total deferred	159		228		(20)
Income tax provision (benefit)	$	168	$	189	$	348

Income Tax Provision Reconciliation To Federal Income Tax Statutory Rate

The effective tax rate on Income (loss) before income taxes differed from the federal income tax statutory rate for the following reasons:

(in millions)	2023		2022		2021
Tax at statutory U.S. tax rates	$	133	$	153	$	278
State income taxes, net of federal benefit	30		12		45
Change in federal statutory tax rate	—		—		(2)
Convertible debt repurchases	—		31		21
DOT settlement	22		—		—
Federal tax credits	(19)		(13)		(2)
Other, net	2		6		8
Total income tax provision (benefit)	$	168	$	189	$	348