Frontier Airlines 2008 Annual Report Download - page 82

The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes – An
Interpretation of FASB 109 (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, 2008 and 2007, the Company
recognized approximately $843 and $894 additional tax expense for unrecognized tax benefits. All of the unrecognized tax benefits as
of December 31, 2008, 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 as much as $1,650. In addition, the tax years 2001 through 2005 are currently open and could potentially
be adjusted due to an ongoing Internal Revenue Service audit of the Company. Any adjustments could potentially increase or decrease
the Company's net operating loss and change the FIN 48 liability. It is expected that the audit will be completed during 2009 and the
Company’s 2006 through 2008 tax years would 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, March 16, 2009 Powered by Morningstar® Document Research℠