US Airways 2007 Annual Report Download - page 101

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
The components of the provision for income taxes are as follows (in millions). The tax expense for tax year 2005 was insignificant
to the financial statements:
Year Ended Year Ended
December 31, December 31,
2007 2006
Current provision:
Federal $ 1 $ 10
State 1 2
Total current 2 12
Deferred provision:
Federal (1) 77
State 6 12
Total deferred 5 89
Provision for income taxes $ 7 $ 101
Income tax expense (benefit) differs from amounts computed at the federal statutory income tax rate as follows (in millions):
Year Ended December 31,
2007 2006 2005
Income tax expense (benefit) at the federal statutory income tax rate $ 152 $ 142 $ (188)
Book expenses not deductible for tax purposes 13 (4) (4)
State income tax expense, net of federal income tax expense (benefit) 7 10 —
Change in state deferred tax items — — (15)
Change in valuation allowance (163) (67) 218
Indefinite lived asset — — (13)
AMT provision 1 10 —
Other, net (3) 10 2
Total $ 7 $ 101 $ —
Effective tax rate 1.5% 24.9% —
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