US Airways 2006 Annual Report Download - page 115

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of
December 31, 2006 and 2005 are as follows (in millions):
2006 2005
Deferred tax assets:
Net operating loss carryforwards $ 364 $ 570
Property, plant and equipment 21 30
Employee benefits 297 301
Dividend Miles awards 205 135
AMT credit carryforward 37 25
Other deferred tax assets 65 57
Valuation allowance (263) (446)
Net deferred tax assets 726 672
Deferred tax liabilities:
Depreciation and amortization 502 455
Sale and leaseback transactions and deferred rent 123 118
Leasing transactions 20 21
Financing transactions 42 44
Long-lived intangibles 31 31
Other deferred tax liabilities 30 34
Total deferred tax liabilities 748 703
Net deferred tax liabilities 22 31
Less: current deferred tax liabilities — —
Non-current deferred tax liabilities $ 22 $ 31
The reason for significant differences between taxable and pretax book income primarily relates to depreciation on fixed assets,
employee pension and postretirement benefit costs, employee-related accruals and leasing transactions.
The federal income tax returns of the Company through 2002 have been examined and settled with the Internal Revenue Service.
The Company is not currently under examination.
10. Commitments and Contingencies
(a) Commitments to Purchase Flight Equipment and Maintenance Services
Airbus Purchase Commitments
In August 2006, AWA amended its A320/A319 Purchase Agreement with Airbus to add seven new Airbus A321s to an existing
order for thirty A320 family aircraft. The amendment also converted one A320 aircraft and seven A319 aircraft to an order of eight A321
aircraft. Deliveries of the 15 new A321 aircraft will begin in 2008 and run through 2010. The new A321s will be configured to
accommodate up to 187 passengers in two classes of service and will be used for replacement purposes or modest expansion should
market conditions warrant.
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