Income Tax

12 Months Ended

Dec. 31, 2012

Income Tax

Note 7 – Income Tax

The components of the provision (benefit) for tax on income were as follows at December 31:

	2012			2011			2010
Current:
Federal	$	154		$	176		$	135
State		2			3			4
		156			179			139
Deferred:
Federal		(128	)		(139	)		(83	)
	$	28		$	40		$	56

The tax impact of temporary differences constitute our net deferred income tax liability. The components of the net deferred income tax liability consisted of the following at December 31:

	2012			2011
Deferred tax assets:
Allowance for losses on receivables	$	126		$	133
Other		16			22
		142			155
Deferred tax liabilities:
Leased assets		(1,246	)		(1,387	)
Net deferred tax liability	$	(1,104	)	$	(1,232	)

Income tax computed at the United States federal income tax rate and the provision for tax on income differ as follows for the years ended December 31:

	2012				2011				2010
Tax computed at federal statutory rate	$	27	35.0	%	$	39	35.0	%	$	53	35.0	%
State income taxes, net of federal tax benefit		1	1.4			1	1.0			3	1.8
	$	28	36.4	%	$	40	36.0	%	$	56	36.8	%

During the first quarter of 2012 we filed an appeal with the IRS for the 2007-2008 tax years. The 2009-2010 IRS audit began in the second quarter of 2012. We are also subject to examination in major state and international jurisdictions for the 2001-2012 tax years. As of December 31, 2012 and 2011, we did not have any unrecognized tax benefits.

Pursuant to our tax sharing agreement with Boeing, we made payments with respect to tax obligations to Boeing of $152, $178 and $99 in 2012, 2011 and 2010 respectively. In 2012, 2011, and 2010 we did not receive or make income tax payments from or to other federal, state and foreign tax agencies.

For the years ended December 31, 2012, 2011 and 2010, we did not incur any income tax related interest income, interest expense or penalties.