US Airways 2009 Annual Report Download - page 95

Table of Contents
The components of the provision (benefit) for income taxes are as follows (in millions):
Year Ended December 31,
2009 2008 2007
Current provision:
Federal $ — $ 1 $ 1
State — — 1
Total current — 1 2
Deferred provision:
Federal (38) — (1)
State — (1) 6
Total deferred (38) (1) 5
Provision (benefit) for income taxes $ (38) $ — $ 7
Income tax expense (benefit) differs from amounts computed at the federal statutory income tax rate as follows (in millions):
Year Ended December 31,
2009 2008 2007
Income tax expense (benefit) at the federal statutory income tax rate $ (85) $ (775) $ 151
Book expenses not deductible for tax purposes 17 229 13
State income tax expense, net of federal income tax expense (benefit) (6) (30) 30
Change in valuation allowance 74 575 (185)
AMT provision (benefit) (14) 1 1
Allocation to other comprehensive income (21) — —
Long-lived intangibles (3) — —
Other, net — — (3)
Total $ (38) $ — $ 7
Effective tax rate (15.7)% —% 1.5%
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of
December 31, 2009 and 2008 are as follows (in millions):
2009 2008
Deferred tax assets:
Net operating loss carryforwards $ 779 $ 546
Property, plant and equipment 30 22
Investments 63 95
Financing transactions 41 25
Employee benefits 346 352
Dividend Miles awards 126 144
AMT credit carryforward 25 38
Other deferred tax assets 26 199
Valuation allowance (623) (646)
Net deferred tax assets 813 775
Deferred tax liabilities:
Depreciation and amortization 582 563
Sale and leaseback transactions and deferred rent 137 144
Leasing transactions 45 47
Long-lived intangibles 25 31
Other deferred tax liabilities 40 9
Total deferred tax liabilities 829 794
Net deferred tax liabilities 16 19
Less: current deferred tax liabilities — —
Non-current deferred tax liabilities $ 16 $ 19
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