US Airways 2005 Annual Report Download - page 254

Table of Contents
US Airways, Inc.
Notes to the Financial Statements — (Continued)
The significant components of the deferred income tax provision (credit) for the three months ended December 31, 2005, the nine months ended
September 30, 2005, the year ended December 31, 2004, the nine months ended December 31, 2003 and the three months ended March 31, 2003 are as
follows (in millions):
Successor
Company Predecessor Company
Three Months Nine Months Nine Months Three Months
Ended Ended Year Ended Ended Ended
December 31, September 30, December 31, December 31, March 31,
2005 2005 2004 2003 2003
Deferred tax provision (benefit), exclusive of the other components listed below $ (56) $ 723 $ (206) $ 399 $ 200
Increase (decrease) in the valuation allowance for deferred tax assets 56 (723) 205 (399) (200)
Total $ — $ — $ (1) $ — $ —
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
Three Months Nine Months Nine Months Three Months
Ended Ended Year Ended Ended Ended
December 31, September 30, December 31, December 31, March 31,
2005 2005 2004 2003 2003
Tax provision (credit) computed at federal statutory rate $ (42) $ 97 $ (205) $ (54) $ 564
Book expenses not deductible for tax purposes (3) 615 1 11 (200)
State income tax provision, net of federal benefit — (1) (2) 3 —
Increase (decrease) in the federal valuation allowance 45 (753) 181 (140) (371)
Reduction in net operating losses from discharge of indebtedness — 40 — 180 —
Expiration of investment and foreign tax credits — — 5 19 —
Other — — 13 (13) 7
Provision (credit) for income taxes $ — $ (2) $ (7) $ 6 $ —
Effective tax rate —% (1)% 1% 4% —%
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