Note 11: Income Taxes

Provisions for income taxes are as follows:


	Six Months Ended				Three Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
			(In Thousands)
Current:
Federal	$	784	$	17,441	$	1,754	$	12,051
State		297		3,273		412		2,198

Total Current		1,081		20,714		2,166		14,249

Deferred:
Federal		2,280		2,220		1,971		1,049
State		261		319		230		153

Total Deferred		2,541		2,539		2,201		1,202

Provisions for income taxes	$	3,622	$	23,253	$	4,367	$	15,451

For the six and three months ended June 30, 2013 and 2012, the current provisions for federal income taxes shown above includes regular federal income tax after the consideration of permanent and temporary differences between income for GAAP and tax purposes, including the benefit related to the retroactive tax relief for certain tax provisions that expired in 2012 as discussed below. For the six and three months ended June 30, 2013 and 2012, the current provisions for state income taxes shown above includes regular state income tax and provisions for uncertain state income tax positions.

Our annual estimated effective tax rate for 2013 includes the impact of permanent tax differences, such as the domestic manufacturer’s deduction, the advanced energy credit and other permanent items. In connection with the American Taxpayer Relief Act of 2012 that was signed into law in January 2013, we recorded a one-time benefit of approximately $0.5 million related to the retroactive tax relief for certain tax provisions that expired in 2012. Because the legislation was signed into law after December 31, 2012, the retroactive effects of the law reduced the current provision for the six months ended June 30, 2013 and impacted the estimated effective tax rate for 2013.

The tax provision for the six months ended June 30, 2013 and 2012 was $3.6 million (37% of pre-tax income, excluding the impact of the 2012 retroactive tax benefits) and $23.3 million (36% of pre-tax income), respectively.

LSB and certain of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the 2009-2011 years remain open for all purposes of examination by the U.S. Internal Revenue Service (“IRS”) and other major tax jurisdictions. We are under examination by the IRS for the tax years 2008-2010. As of June 30, 2013, the IRS has proposed certain adjustments, which we are protesting. We anticipate that the adjustments, if any, will not result in a material change to our financial position, results of operations and cash flows.