American Airlines 2001 Annual Report Download - page 31

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29
The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows
(in millions):
Year Ended December 31,
2001 2000 1999
Statutory income tax provision (benefit) $ (965) $ 450 $ 352
State income tax provision (benefit), net of federal
tax effect (58) 30 32
Foreign tax credit carryforwards (7) - -
Meal expense 18 19 19
Change in valuation allowance 7 - (67)
Other, net 11 9 14
Income tax provision (benefit) $ (994) $ 508 $ 350
The change in valuation allowance in 2001 related to the Company’s uncertainty regarding the realization of the foreign
tax credit carryforward, and in 1999 related to the realization of a tax loss on the sale of the Company’s investment in Canadian
(see Note 4).
The components of AMR’s deferred tax assets and liabilities were (in millions):
December 31,
2001 2000
Deferred tax assets:
Postretirement benefits other than pensions $ 925 $ 632
Rent expense 765 522
Alternative minimum tax credit carryforwards 572 184
Operating loss carryforwards 412 -
Frequent flyer obligation 409 362
Gains from lease transactions 216 225
Other 784 541
Valuation allowance (7) -
Total deferred tax assets 4,076 2,466
Deferred tax liabilities:
Accelerated depreciation and amortization (4,065) (3,822)
Purchased intangible assets (369) -
Pensions (157) (89)
Other (322) (245)
Total deferred tax liabilities (4,913) (4,156)
Net deferred tax liability $ (837) $ (1,690)
At December 31, 2001, AMR had available for federal income tax purposes an alternative minimum tax credit carry-
forward of approximately $572 million which is available for an indefinite period, and federal and state net operating losses
of approximately $1.1 billion for regular tax purposes which will fully expire, if unused, in 2021.
Cash payments (receipts) for income taxes were $(28) million, $49 million and $71 million for 2001, 2000 and
1999, respectively.