Rendering
Component: (Network and Table) |
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Network | 2308301 - Disclosure - INCOME TAXES (Tables) (http://www.alaskaair.com/role/IncomeTaxesTables) |
Table | (Implied) |
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis] | 0000766421 (http://www.sec.gov/CIK) |
Income Tax Disclosure [Abstract] | Period [Axis] |
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2016-01-01 - 2016-12-31 |
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Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax (assets) and liabilities comprise the following (in millions): | | | | | | | | | | 2016 | | 2015 | Excess of tax over book depreciation | $ | 1,282 |
| | $ | 1,110 |
| Intangibles | 39 |
| | — |
| Other—net | 26 |
| | 23 |
| Gross deferred tax liabilities | 1,347 |
| | 1,133 |
| | | | | Mileage Plan™ | (310 | ) | | (208 | ) | Inventory obsolescence | (23 | ) | | (22 | ) | Deferred gains | (8 | ) | | (8 | ) | Employee benefits | (196 | ) | | (167 | ) | Fuel hedge contracts | — |
| | (5 | ) | Acquired net operating losses | (289 | ) | | — |
| Other—net | (62 | ) | | (41 | ) | Gross deferred tax assets | (888 | ) | | (451 | ) | Valuation allowance | 4 |
| | — |
| Net deferred tax (assets) liabilities | $ | 463 |
| | $ | 682 |
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax expense were as follows (in millions): | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | Current income tax expense: | | | | | | Federal | $ | 392 |
| | $ | 397 |
| | $ | 229 |
| State | 48 |
| | 30 |
| | 27 |
| Total current income tax expense | 440 |
| | 427 |
| | 256 |
| | | | | | | Deferred income tax expense: | |
| | |
| | |
| Federal | 77 |
| | 60 |
| | 103 |
| State | 14 |
| | (23 | ) | | 11 |
| Total deferred income tax expense | 91 |
| | 37 |
| | 114 |
| Income tax expense | $ | 531 |
| | $ | 464 |
| | $ | 370 |
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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 changes as follows (in millions): | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | Income before income tax | $ | 1,345 |
| | $ | 1,312 |
| | $ | 975 |
| | | | | | | Expected tax expense | 471 |
| | 459 |
| | 341 |
| Nondeductible expenses | 20 |
| | 4 |
| | 4 |
| State income taxes | 28 |
| | 19 |
| | 25 |
| State income sourcing | 13 |
| | (15 | ) | | — |
| Other—net | (1 | ) | | (3 | ) | | — |
| Actual tax expense | $ | 531 |
| | $ | 464 |
| | $ | 370 |
| | | | | | | Effective tax rate | 39.5 | % | | 35.4 | % | | 37.9 | % |
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Summary of Income Tax Contingencies [Table Text Block] | The Company has identified its federal tax return and its state tax returns in Alaska, Oregon and California as “major” tax jurisdictions. A summary of the Company's jurisdictions and the periods that are subject to examination are as follows: | | | Jurisdiction | Period | Federal | 2006 to 2015 (a)(b) | Alaska | 2012 to 2015 | California | 2006 to 2015(a) | Oregon | 2003 to 2015(a) |
| | (a) | The 2003, 2004, 2008-2010 and 2011 Oregon tax returns are subject to examination only to the extent of net operating loss carryforwards from those years that were utilized in 2010 and later years. The 2006-2012 Federal and California Virgin America tax returns are subject to examination only to the extent of net operating loss carryforwards from those years that were utilized in 2012 and later years. |
Changes in the liability for unrecognized tax benefits during 2016, 2015 and 2014 are as follows (in millions): | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | Balance at January 1, | $ | 22 |
| | $ | 3 |
| | $ | 2 |
| Additions based on tax positions and settlements related to the current year | 3 |
| | 19 |
| | 1 |
| Additions from acquisitions | 8 |
| | — |
| | — |
| Balance at December 31, | $ | 33 |
| | $ | 22 |
| | $ | 3 |
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