Frontier Airlines 2008 Annual Report Download - page 81

12. INCOME TAXES
The components of the provision for income tax expense for the years ended December 31 are as follows:
2008 2007 2006
Federal:
Current $ — $ — $ —
Deferred 46,616 45,102 43,171
Total Federal 46,616 45,102 43,171
State:
Current 2,092 120 495
Deferred 1,880 5,094 8,233
Total State 3,972 5,214 8,728
Valuation allowance 1,404 — —
Expense for uncertain tax positions (FIN 48) 843 894 —
Income tax expense $ 52,835 $ 51,210 $ 51,899
A reconciliation of income tax expense at the applicable federal statutory income tax rate to the tax provision as reported for
the years ended December 31 are as follows:
2008 2007 2006
Federal income tax expense at statutory rate $ 48,095 $ 46,799 $ 45,993
State income tax expense, net of federal benefit 2,569 3,489 5,673
Other 2,171 922 233
Income tax expense $ 52,835 $ 51,210 $ 51,899
The components of deferred tax assets and liabilities as of December 31 are as follows:
2008 2007
DEFERRED TAX ASSETS
Current:
Nondeductible reserves and accruals $ 7,406 $ 7,510
Total current deferred tax assets $ 7,406 $ 7,510
Noncurrent:
Nondeductible accruals and deferred revenue $ 42,301 $ 30,561
Deferred gain on Delta warrant 16,794 14,147
Net operating loss carryforward, net of liability for uncertain tax positions (FIN 48) 165,977 152,806
Prepaid rent 18,094 20,867
Other 8,584 7,170
Deferred credits and sale leaseback gain 9,771 10,474
Total 261,521 236,025
Valuation allowance (9,523) (8,119)
Total noncurrent deferred tax assets 251,998 227,906
DEFERRED TAX LIABILITIES
Noncurrent:
Slot amortization (5,604) (3,880)
Accelerated depreciation and fixed asset basis differences for tax purposes (480,222) (408,330)
Total noncurrent deferred tax liabilities (485,826) (412,210)
Total net noncurrent deferred tax liabilities $ (233,828) $ (184,304)
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 16, 2009 Powered by Morningstar® Document Research℠