Taxes Payable

  
  
Maturities of Lease Liabilities   
Future minimum lease payments under non-cancellable leases as of December 31, 2021 (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Aircraft(a) |  | CPA Aircraft |  | Airport and Terminal Facilities |  | Corporate Real Estate and Other |
| 2022 | $ | 221  |  |  | $ | 84  |  |  | $ | 3  |  |  | $ | 11  |  |
| 2023 | 158  |  |  | 84  |  |  | 2  |  |  | 9  |  |
| 2024 | 101  |  |  | 84  |  |  | 2  |  |  | 7  |  |
| 2025 | 95  |  |  | 84  |  |  | 2  |  |  | 4  |  |
| 2026 | 89  |  |  | 84  |  |  | 2  |  |  | 4  |  |
| Thereafter | 311  |  |  | 291  |  |  | 8  |  |  | 75  |  |
| Total Lease Payments | $ | 975  |  |  | $ | 711  |  |  | $ | 19  |  |  | $ | 110  |  |
| Less: Imputed interest | (127) |  |  | (91) |  |  | (3) |  |  | (52) |  |
| Total | $ | 848  |  |  | $ | 620  |  |  | $ | 16  |  |  | $ | 58  |  |

(a) - Future minimum lease payments for aircraft includes commitments for aircraft which have been removed from operating service as the Company remains obligated under existing terms. (b) - Future minimum lease payments in the table above are inclusive of incentive credits related to leased Boeing 737-9 aircraft. As a result, the operating lease liabilities presented on the consolidated balance sheet exceed total future payments. This difference will exist until all leased 737-9 aircraft are delivered.  
As of December 31, 2021, we have entered into but not yet commenced leases for Boeing 737-9 and E175 aircraft, as well as other non-aircraft equipment. The liabilities associated with these leases are expected to be approximately $730 million. These leases will commence in 2022 and 2023 with lease terms ranging from 2023 to 2035.   
NOTE 8. INCOME TAXES  
Deferred Income Taxes  
Deferred income taxes reflect the impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and such amounts for tax purposes. The Company has a net deferred tax liability, primarily due to differences in depreciation rates for federal income tax purposes and for financial reporting purposes.  
Deferred tax (assets) and liabilities comprise the following (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |
| Excess of tax over book depreciation | $ | 1,145  |  |  | $ | 1,126  |  |
| Intangibles - net | 19  |  |  | 15  |  |
| Operating lease assets | 351  |  |  | 342  |  |
| Other - net | 76  |  |  | 106  |  |
| Deferred tax liabilities | 1,591  |  |  | 1,589  |  |
|  |  |  |  |
| Mileage Plan | (416) |  |  | (385) |  |
| Inventory obsolescence | (17) |  |  | (17) |  |
|  |  |  |  |
| Employee benefits | (127) |  |  | (215) |  |
| Net operating losses | (25) |  |  | (27) |  |
| Operating lease liabilities | (374) |  |  | (381) |  |
| Leasehold maintenance | (40) |  |  | (73) |  |
| Other - net | (34) |  |  | (103) |  |
| Deferred tax assets | (1,033) |  |  | (1,201) |  |
| Valuation allowance | 20  |  |  | 19  |  |
| Net deferred tax liabilities | $ | 578  |  |  | $ | 407  |  |

  
At December 31, 2021, the Company has paid gross taxes of $52 million and expect to pay $21 million more for the tax year 2021. The Company is also awaiting payment of a $285 million federal tax refund receivable as a result of carrying back losses 73
