US Airways 2006 Annual Report Download - page 114

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
The components of the provision for income taxes for the tax year ended December 31, 2006 are as follows (in millions). The tax
expense for tax years 2005 and 2004 were insignificant to the financial statements:
Year Ended
December 31,
2006
Current provision:
Federal $ 10
State 2
Total current 12
Deferred provision:
Federal 77
State 12
Total deferred 89
Provision for income taxes $ 101
Income tax expense (benefit) differs from amounts computed at the federal statutory income tax rate as follows (in millions):
Year Ended December 31,
2006 2005 2004
Income tax expense (benefit) at the federal statutory income tax rate $ 142 $ (188) $ (31)
State income tax expense (benefit), net of federal income tax expense (benefit) 10 — (3)
Change in state deferred tax items — (15) —
Change in valuation allowance (67) 218 32
Book expense not deductible for tax (4) (4) —
Indefinite lived asset — (13) —
AMT provision 10 — —
Other, net 10 2 2
Total $ 101 $ — $ —
Effective tax rate 24.9% — —
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