Delta Airlines 2012 Annual Report Download - page 94

NOTE 12 . INCOME TAXES
Income Tax (Provision) Benefit
Our income tax (provision) benefit consisted of the following:
The following table presents the principal reasons for the difference between the effective tax rate and the U.S. federal statutory income tax rate:
Deferred Taxes
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting and income tax purposes. The following table shows significant components of our deferred tax assets and liabilities:
87
Year Ended December 31,
(in millions) 2012 2011 2010
Current tax benefit (provision)
$
1
$
83
$
(7
)
Deferred tax provision
(449
)
(349
)
(265
)
Decrease in valuation allowance
432
351
257
Income tax (provision) benefit
$
(16
)
$
85
$
(15
)
Year Ended December 31,
2012 2011 2010
U.S. federal statutory income tax rate
35.0
%
35.0
%
35.0
%
State taxes
3.3
3.4
2.3
Decrease in valuation allowance
(40.8
)
(45.7
)
(42.3
)
Release of uncertain tax position reserve
—
(
9.0
)
—
Other
4.0
5.3
7.6
Effective income tax rate
1.5
%
(11.0
)%
2.6
%
December 31,
(in millions) 2012 2011
Deferred tax assets:
Net operating loss carryforwards
$
6,414
$
6,647
Pension, postretirement and other benefits
6,415
5,703
AMT credit carryforward
402
402
Deferred revenue
2,133
2,297
Rent expense
233
284
Reorganization items, net
209
395
Other
439
564
Valuation allowance
(10,963
)
(10,705
)
Total deferred tax assets
$
5,282
$
5,587
Deferred tax liabilities:
Depreciation
$
4,851
$
5,093
Debt valuation
162
206
Intangible assets
1,730
1,755
Fuel hedge derivatives
31
32
Other
92
68
Total deferred tax liabilities
$
6,866
$
7,154