Airtran 1999 Annual Report Download - page 42

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A reconciliation of the provision for income taxes (benefit) to the federal statutory
rate is as follows (in thousands):
1999 1998 1997
Tax at statutory rate $(33,829) $(14,258) $(41,803)
State taxes, net of federal benefit (3,089) (606) (4,761)
Goodwill 517 7,705 89
Alternative minimum tax 909 ——
Benefit of preacquisition net operating
loss carryforwards 2,387 ——
Other (434) (110) (570)
Valuation reserve 36,278 7,269 24,270
$ 2,739 $ — $(22,775)
Deferred income taxes reflect the net tax effects of temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for income tax purposes. Significant components of the Company’s
deferred tax liabilities and assets are as follows (in thousands):
December 31,
1999 1998
Deferred tax liabilities:
Depreciation $— $ 28,370
Other —342
Total deferred tax liabilities —28,712
Deferred tax assets:
Depreciation 21,740 —
Accrued liabilities 1,011 2,362
Non qualified stock options 930 930
Federal operating loss carryforwards 37,938 49,470
State operating loss carryforwards 6,741 8,158
AMT credit carryforwards 3,526 2,617
Other 4,024 4,807
Total deferred tax assets 75,910 68,344
Valuation allowance for deferred tax assets (75,910) (39,632)
Net deferred tax assets —28,712
Net deferred tax liabilities $— $—