US Airways 2003 Annual Report Download - page 75

Table of Contents
of deferred tax liabilities) during the periods in which those temporary differences will become deductible.
The components of US Airways' provision (credit) for income taxes are as follows (in millions):
Successor
Company
Predecessor
Company
Nine
Months Ended
December 31,
2003
Three
Months Ended
March 31,
2003
Year Ended
December 31,
2002
2001
Current provision:
Federal $ 3 $ — $ (248) $ (298)
State 3 — (7) (7)
Total current 6 — (255) (305)
Deferred provision:
Federal — — — 459
State — — — 55
Total deferred — — — 514
Provision (credit) for income taxes $ 6 $ — $ (255) $ 209
The significant components of the deferred income tax provision (credit) for the nine months ended December 31, 2003, three months ended March 31,
2003, and years ended December 31, 2002 and 2001 are as follows (in millions):
Successor Company Predecessor Company
Nine
Months Ended
December 31, 2003
Three
Months Ended
March 31, 2003
Year Ended
December 31,
2002
2001
Deferred tax provision (exclusive of the other components listed below) $ 399 $ 200 $ (359) $ (343)
Increase (decrease) in the valuation allowance for deferred tax assets (399) (200) 359 857
Total $ — $ — $ — $ 514
A reconciliation of taxes computed at the statutory federal tax rate on income (loss) before income taxes to the provision (credit) for income taxes is
provided below (in millions):
Successor Company Predecessor Company
Nine Months Ended
December 31,
2003
Three
Months Ended
March 31,
2003
Year Ended
December 31,
2002
2001
Tax provision (credit) computed at federal statutory rate $ (54) $ 564 $ (670) $ (626)
Book expenses not deductible for tax purposes 11 (200) 14 17
State income tax provision (credit), net of federal benefit 3 — (5) 31
Increase (decrease) in the federal valuation allowance (140) (371) 317 789
Limitation of recognizing tax benefit of NOLs/credits — — 80 —
Reduction in NOL from discharge of indebtedness 180 — — —
Expiration of investment and foreign tax credits 19 — 9 —
Other (13) 7 — (2)