US Airways 2008 Annual Report Download - page 150

Table of Contents
US Airways, 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, 2008 and 2007 are as follows (in millions):
2008 2007
Deferred tax assets:
Net operating loss carryforwards $ 515 $ 263
Property, plant and equipment 21 21
Investments 95 19
Financing transactions 25 18
Employee benefits 338 335
Dividend Miles awards 144 153
AMT credit carryforward 38 38
Other deferred tax assets 197 15
Valuation allowance (643) (83)
Net deferred tax assets 730 779
Deferred tax liabilities:
Depreciation and amortization 522 478
Sale and leaseback transactions and deferred rent 144 146
Leasing transactions 47 59
Long-lived intangibles 31 31
Other deferred tax liabilities 4 84
Total deferred tax liabilities 748 798
Net deferred tax liabilities 18 19
Less: current deferred tax liabilities — —
Non-current deferred tax liabilities $ 18 $ 19
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.
US Airways files tax returns in the U.S. federal jurisdiction, and in various states and foreign jurisdictions. All federal and state tax
filings for US Airways and AWA for fiscal years through December 31, 2007 have been timely filed. There are currently no federal
audits and one state audit in process. US Airways' federal income tax year 2004 was closed by operation of the statute of limitations
expiring, and there were no extensions filed. US Airways is not currently under IRS examination. US Airways files tax returns in
44 states, and its major state tax jurisdictions are Arizona, California, Pennsylvania and North Carolina. Tax years up to 2003 for these
state tax jurisdictions are closed by operation of the statute of limitations expiring, and there were no extensions filed.
US Airways believes that its income tax filing positions and deductions related to tax periods subject to examination will be
sustained upon audit and does not anticipate any adjustments that will result in a material adverse effect on US Airways' financial
condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to
FIN 48, "Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109."
148