Frontier Airlines 2007 Annual Report Download - page 84

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The components of deferred tax assets and liabilities as of December 31 are as follows:
2007 2006
DEFERRED TAX ASSETS
Current:
Nondeductible reserves and accruals $ 7,510 $ 3,467
Total current deferred tax assets $ 7,510 $ 3,467
Noncurrent:
Nondeductible accruals and deferred revenue $ 30,561 $ 5,304
Treasury locks 2,006 2,585
Stock option excess tax benefits 2,661 2,661
Alternative minimum tax credit 759 636
Deferred gain on Delta warrant 14,147 —
Net operating loss carryforward, net of liability for uncertain tax positions (FIN 48) 152,806 149,360
Prepaid rent 20,867 14,894
Share-based compensation 1,744 540
Deferred credits and sale leaseback gain 10,474 8,446
Total 236,025 184,426
Valuation allowance (8,119) (8,119)
Total noncurrent deferred tax assets 227,906 176,307
DEFERRED TAX LIABILITIES
Noncurrent:
Slot amortization (3,880) (2,272)
Accelerated depreciation and fixed asset basis differences for tax purposes (408,330) (314,921)
Total noncurrent deferred tax liabilities (412,210) (317,193)
Total net noncurrent deferred tax liabilities $ (184,304) $ (140,886)
The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes – An
Interpretation of FASB 109 (FIN 48). The Company adopted the provisions of FIN 48 on January 1, 2007. The total amount of
unrecognized tax benefits as of the date of the adoption was $3,515, of which the Company had previously recorded $1,148 for
income tax contingencies prior to adoption. Accordingly, the Company recognized a $2,367 increase in the liability for the
unrecognized tax benefits which was accounted for as a reduction to retained earnings and an increase to deferred tax liability. During
the year ended December 31, 2007, the Company recognized approximately $894 additional tax expense for unrecognized tax
benefits. All of the unrecognized tax benefits as of December 31, 2007, if recognized, would affect the effective tax rate. The
Company monitors ongoing tax cases related to its unrecognized tax benefits. If an unfavorable tax case judgment is rendered, the
Company may increase its tax liability for the unrecognized tax benefits by up to $1,500. In addition, the Company’s 2001 through
2007 tax years remain subject to examination by major tax jurisdictions due to our net operating loss carryforwards.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, February 21, 2008 Powered by Morningstar® Document Research℠