Airtran 2007 Annual Report Download - page 69

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63
63
Note 10 – Other Comprehensive Income
Other comprehensive income is composed of changes in the fair value of certain of our derivative financial instruments and
the funded status of our postemployment obligations. The components of “Accumulated other comprehensive income (loss)”,
are as follows (in thousands):
Unrealized
gain (loss) on
derivative
instruments
Postemploym
ent
obligations
Accumulated ot
her
comprehensive
income (loss)
Balance at Januar
y
1, 2005....................................................................... $ — $ — $ —
Changes in fair valu
e
................................................................................ — — —
Reclassification to earnings ...................................................................... — — —
Balance at December 31, 2005.................................................................. — — —
Changes in fair value, net of income taxes ................................................ 84 — 84
Reclassification to earnings ...................................................................... — — —
Adjustment to initially adopt FAS 158, net of income taxes ...................... — (5,336) (5,336)
Reclassification to earnings ...................................................................... — — —
Balance at December 31, 2006.................................................................. 84 (5,336) (5,252)
Changes in fair value, net of income taxes ................................................ 15,721 — 15,721
Reclassification to earnings, net of income taxes....................................... (14,688) 1,012 (13,676)
Change in actuarial gains and losses , net of income taxes......................... — 4,557 4,557
Balance at December 31, 2007.................................................................. $ 1,117 $ 233 $ 1,350
Note 11 – Income Taxes
We are subject to taxation in the United States and various state jurisdictions. Our tax years for 1996 through 2007 are
subject to examination by the Internal Revenue Service. The total amount of unrecognized tax benefits and related penalties
and interest is not material as of December 31, 2007. We do not anticipate any material change in the total amount of
unrecognized tax benefits to occur within the next twelve months.
The components of the provision for income taxes are as follows (in thousands):
Year ended Decembe
r
31
,
2007 2006 2005
Current provision:
Federal..................................................................................................................... $ 205 $ — $ —
Stat
e
........................................................................................................................ — — —
Total current provision .................................................................................... 205 — —
Deferred provision:
Federal..................................................................................................................... 31,771 9,805 5,119
Stat
e
........................................................................................................................ 2,693 138 (484
)
Total deferred provision .................................................................................. 34,464 9,943 4,635
Provision for income taxes ................................................................................................ $ 34,669 $ 9,943 $ 4,635
A reconciliation of taxes computed at the statutory federal tax rate on income before income taxes to the provision for income
taxes is as follows (in thousands):
Year ended Decembe
r
31
,
2007 2006 2005
Tax computed at federal statutory rat
e
.................................................................................
.
$ 30,573 $ 8,629 $ 4,263
State income taxes, net of federal benefit .............................................................................
.
2,241 516 302
Other ..................................................................................................................................
.
1,855 798 70
Provision for income taxes ..................................................................................................
.
$ 34,669 $ 9,943 $ 4,635
63
(484)