Spirit Airlines 2015 Annual Report Download - page 85

Notes to Financial Statements—(Continued)
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12. Defined Contribution 401(k) Plan
The Company sponsors three defined contribution 401(k) plans, Spirit Airlines, Inc. Employee Retirement Savings Plan
(first plan), Spirit Airlines, Inc. Pilots’ Retirement Savings Plan (second plan) and Spirit Airlines, Inc. Puerto Rico Retirement
Savings Plan (third plan). The first plan is for all employees that are not covered by the pilots’ collective bargaining agreement,
who have at least 60 days of service and have attained the age of 21. The Company may make a Qualified Discretionary
Contribution, as defined in the plan, or provide matching contributions to this plan. The Company currently provides matching
contribution to the plan at 50% of the employee’s contribution up to a maximum employer contribution of 3% of the
employee’s annual compensation.
The second plan is for the Company’s pilots, and contains the same service requirements as the first plan. Throughout
2015, the Company matched 100% of the pilot's contribution, up to 9% of the individual pilot's annual compensation. Both the
first and the second plans are subject to the annual IRS elective deferral limit, which was $18,000 for 2015.
The third plan is for all Company employees residing in Puerto Rico and was adopted on April 16, 2012. It contains the
same service requirements as the first and second plans. For pilots participating in the Puerto Rico plan, the Company matches
100% of their contribution, up to 9% of the individual pilot's annual compensation, but subject to the annual Puerto Rico pre-
tax elective deferral limit, which was $18,000 for 2015. For all other employees participating in the Puerto Rico plan, the
Company provides for matching contribution to the plan at 50% of the employee's contribution up to a maximum employer
contribution of 3% of the employee's annual compensation.
Matching contributions made to all plans were $12.5 million, $9.7 million and $7.7 million in 2015, 2014 and 2013,
respectively, and were included within salaries, wages and benefits in the accompanying statements of operations.
13. Income Taxes
Significant components of the provision for income taxes from continuing operations are as follows:
Year Ended December 31,
2015 2014 2013
(in thousands)
Current:
Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,632 $ 85,966 $ 86,437
State and local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,702 5,389 6,595
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,235 2,057 413
Total current expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,569 93,412 93,445
Deferred:
Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149,583 34,240 11,658
State and local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,031 (122) 389
Total deferred expense (benefit). . . . . . . . . . . . . . . . . . . . 155,614 34,118 12,047
Total income tax expense (benefit) . . . . . . . . . . . . . . . . . $ 185,183 $ 127,530 $ 105,492
The income tax provision differs from that computed at the federal statutory corporate tax rate as follows:
Year Ended December 31,
2015 2014 2013
Expected provision at federal statutory tax rate. . . . . . . . . . . . . . . . 35.0% 35.0 % 35.0%
State tax expense, net of federal benefit. . . . . . . . . . . . . . . . . . . . . . 1.7% 1.0 % 1.7%
Income tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% (0.4)% —%
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2% 0.5 % 0.7%
Total income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . 36.9% 36.1 % 37.4%