Thrifty Car Rental 2007 Annual Report Download - page 78

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15. INCOME TAXES
Income tax expense consists of the following:
Year Ended December 31,
2007 2006 2005
(In Thousands)
Current:
Federal 2,979$ 3,786$ 10,000$
State and local 124 179 826
Foreign 513 2,071 424
3,616 6,036 11,250
Deferred:
Federal 3,287 27,217 35,100
State and local 4,690 3,476 7,840
7,977 30,693 42,940
11,593$ 36,729$ 54,190$
Deferred tax assets and liabilities consist of the following:
2007 2006
Deferred tax assets:
Vehicle insurance reserves 39,263$ 38,633$
Allowance for doubtful accounts and notes receivable 2,087 4,063
Other accrued liabilities 41,548 55,283
Federal and state NOL carryforwards 143,568 168,243
Interest rate swap 19,715 -
AMT credit carryforward 16,718 13,786
Canadian NOL carryforwards 19,880 17,700
Canadian depreciation 526 489
Other Canadian temporary differences 6 -
283,311 298,197
Valuation allowance (23,186) (18,572)
Total 260,125$ 279,625$
Deferred tax liabilities:
Depreciation 501,115$ 521,808$
Interest rate swap - 4,727
Other Canadian temporary differences - 836
Other 26,422 18,709
Total 527,537$ 546,080$
December 31,
(In Thousands)
For the year ended December 31, 2007, the change in the net deferred tax liabilities constituted
$7,977,000 of deferred tax expense, ($7,700,000) of other comprehensive income that relates to the
interest rate swap and foreign currency translation, and approximately $700,000 related to the stock
acquisition of a former franchisee.
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