SkyWest Airlines 2005 Annual Report Download - page 61

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57
The following is a reconciliation between the statutory Federal income tax rate of 35% and the effective rate which is derived
by dividing the provision for income taxes by income before provision for income taxes (in thousands):
Year ended December 31,
2005 2004 2003
Computed “expected” provision for
income taxes at the statutory rates $ 62,869 $ 47,805 $ 38,320
Increase in income taxes resulting from:
State income taxes,
net of Federal income tax benefit 6,387 5,313 4,338
Other, net (1,897) 1,516 42
Provision for income taxes $ 67,359 $ 54,634 $ 42,700
The significant components of the net deferred tax assets and liabilities are as follows (in thousands):
As of December 31,
2005 2004
Deferred tax assets:
Accrued benefits $ 14,673 $ 7,303
Net operating loss carryforward 7,265 1,335
AMT credit carryforward - 639
Accrued reserves and other 19,074 2,592
Total deferred tax assets 41,012 11,869
Deferred tax liabilities:
Accelerated depreciation (204,598) (189,766)
Maintenance and other (20,470) 551
Total deferred tax liabilities (225,068) (189,215)
Net deferred tax liability $ (184,056) $ (177,346)
The Company’s income tax receivable and deferred tax liabilities were primarily generated through accelerated bonus
depreciation on newly purchased aircraft and support equipment in accordance with the Job Creation and Worker Assistance Act
of 2002.