Southwest Airlines 1999 Annual Report Download - page 45

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The Company sponsors Employee savings plans under Section 401(k) of the
Internal Revenue Code. The plans cover substantially all full-time Employees. The amount
of matching contributions varies by Employee group. Company contributions generally vest
over five years with credit for prior years’ service granted. Company matching contributions
expensed in 1999, 1998, and 1997 were $53.7 million, $46.4 million, and $39.7 million,
respectively.
11. INCOME TAXES
Deferred income taxes reflect the net tax effects of temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for income tax purposes. The components of deferred tax assets and
liabilities at December 31, 1999 and 1998, are as follows:
(In thousands)1999 1998
DEFERRED TAX LIABILITIES:
Accelerated depreciation $782,341 $641,673
Scheduled airframe maintenance 47,168 40,073
Other 110,638 95,485
Total deferred tax liabilities 940,147 777,231
DEFERRED TAX ASSETS:
Deferred gains from sale and leaseback of aircraft 101,960 107,157
Capital and operating leases 64,704 61,275
Other 102,070 80,326
Total deferred tax assets 268,734 248,758
Net deferred tax liability $671,413 $528,473
The provision for income taxes is composed of the following:
(In thousands)1999 1998 1997
CURRENT:
Federal $137,393 $143,989 $102,938
State 18,900 19,357 14,535
Total current 156,293 163,346 117,473
DEFERRED:
Federal 128,984 96,237 75,990
State 13,956 12,098 5,721
Total deferred 142,940 108,335 81,711
$299,233 $271,681 $199,184
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