Table of Contents Interest income decreased in 2020 compared to 2019 primarily as a result of lower returns on our short-term investments. Interest expense, net increased in 2020 compared to 2019 primarily due to the issuance of debt and lower capitalized interest offset in part by lower interest expense on our variable-rate debt. In 2020, other nonoperating income, net included $329 million of non-service related pension and other postretirement benefit plan income. This income was offset in part by $170 million of net special charges principally for mark-to-market unrealized losses associated with our equity investment in China Southern Airlines and certain treasury rate lock derivative instruments and $24 million of net foreign currency losses, primarily associated with losses from Latin American currencies. In 2019, other nonoperating income, net principally included $183 million of non-service related pension and other postretirement benefit plan income. This income was offset in part by $32 million of net foreign currency losses, primarily associated with losses from Latin American currencies. The increase in non-service related pension and other postretirement benefit plan income in 2020 as compared to 2019 is principally due to an increase in the expected return on pension plan assets. In 2020, we recorded an income tax benefit of $2.6 billion at an effective rate of approximately 22%. Substantially all of our income or loss before income taxes is attributable to the United States. At December 31, 2020, we had approximately $16.5 billion of federal NOLs available to reduce future federal taxable income, of which $8.5 billion will expire beginning in 2023 if unused and $8.0 billion can be carried forward indefinitely. We also had approximately $5.0 billion of NOL Carryforwards to reduce future state taxable income at December 31, 2020, which will expire in taxable years 2020 through 2040 if unused. In 2019, we recorded an income tax provision of $570 million at an effective rate of approximately 25%, which was substantially non-cash. See Note 7 to AAG’s Consolidated Financial Statements in Part II, Item 8A for additional information on income taxes. As discussed above, American’s results of operations for 2020 were significantly impacted by the COVID-19 pandemic. As a result, the comparison of American’s 2020 financial results to 2019 are largely not meaningful. Refer to the "2020 Financial Overview" above for discussion of American’s 2020 financial results and the impact of the COVID-19 pandemic on American’s business. For a comparison of the 2019 to 2018 reporting periods, see Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – “ American’s Results of Operations  –  2019 Compared to 2018”  of American’s 2019 Form 10-K. 73 American’s Results of Operations Income Taxes Merger integration expenses included costs associated with integration projects, principally our technical operations, flight attendant, human resources and payroll systems. (7) Nonoperating Results Year Ended December 31, Increase (Decrease) Percent Increase (Decrease) 2020 2019 (In millions, except percentage changes) Interest income $ 41  $ 127  $ (86) (67.7) Interest expense, net (1,227) (1,095) (132) 12.0  Other income, net 154  159  (5) (3.2) Total nonoperating expense, net $ (1,032) $ (809) $ (223) 27.5 