US Airways 2008 Annual Report Download - page 105

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):
Year Ended December 31,
2008 2007 2006
Current provision:
Federal $ 1 $ 1 $ 10
State — 1 2
Total current 1 2 12
Deferred provision:
Federal — (1) 77
State (1) 6 12
Total deferred (1) 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,
2008 2007 2006
Income tax expense (benefit) at the federal statutory income tax rate $ (773) $ 152 $ 142
Book expenses not deductible for tax purposes 229 13 (4)
State income tax expense, net of federal income tax expense (benefit) (30) 30 10
Change in valuation allowance 573 (186) (67)
AMT provision 1 1 10
Other, net — (3) 10
Total $ — $ 7 $ 101
Effective tax rate —% 1.5% 24.9%
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