SkyWest Airlines 2009 Annual Report Download - page 79
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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2009
(4) Income Taxes (Continued)
The significant components of the net deferred tax assets and liabilities are as follows (in
thousands):
As of December 31,
2009 2008
Deferred tax assets:
Accrued benefits ............................... $ 22,729 $ 22,423
Net operating loss carryforward .................... 39,368 23,300
AMT credit carryforward ......................... 23,379 30,180
Deferred aircraft credits ......................... 38,283 46,831
Accrued reserves and other ....................... 14,881 14,463
Total deferred tax assets ........................... 138,640 137,197
Deferred tax liabilities:
Accelerated depreciation ......................... (629,586) (568,217)
Maintenance and other .......................... (397) —
Total deferred tax liabilities ......................... (629,983) (568,217)
Net deferred tax liability ........................... $(491,343) $(431,020)
The Company’s 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.
At December 31, 2009, the Company had federal net operating losses of approximately
$82.1 million and state net operating losses of approximately $408.1 million which will start to expire in
2026 and 2010 respectively. As of December 31, 2009, the Company also had an alternative minimum
tax credit of approximately $23.4 million which does not expire.
(5) Commitments and Contingencies
Lease Obligations
The Company leases 284 aircraft, as well as airport facilities, office space, and various other
property and equipment under non-cancelable operating leases which are generally on a long-term net
rent basis where the Company pays taxes, maintenance, insurance and certain other operating expenses
applicable to the leased property. Management expects that, in the normal course of business, leases
that expire will be renewed or replaced by other leases. The following table summarizes future
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