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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 7. Income Taxes Provision (benefit) for income taxes are as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (In Thousands) |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | (4 | )
State |  |  | 2,320 |  |  |  | (250 | ) |  |  | 33 |
Total Current |  | $ | 2,320 |  |  | $ | (250 | ) |  | $ | 29 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | $ | 43,217 |  |  | $ | (6,217 | ) |  | $ | (4,631 | )
State |  |  | (6,363 | ) |  |  | 1,911 |  |  |  | (147 | )
Total Deferred |  | $ | 36,854 |  |  | $ | (4,306 | ) |  | $ | (4,778 | )
Provision (benefit) for income taxes |  | $ | 39,174 |  |  | $ | (4,556 | ) |  | $ | (4,749 | )
The current provision (benefit) for federal and state income taxes shown above includes federal and state income tax after the consideration of permanent and temporary differences between income for GAAP and tax purposes. The deferred tax provision (benefit) results from the recognition of changes in our prior year deferred tax assets and liabilities, and the utilization of federal and state NOL carryforwards and other temporary differences. We reduce income tax expense for tax credits in the year they arise and are earned. On December 31, 2022, our gross amount of tax credits available to offset state income taxes was $4.3 million ($3.4 million net of federal benefit). Most of these tax credits carryforward for 9 years and begin expiring in 2022. The gross amount of federal tax credits was $8.1 million. These credits carryforward for 20 years and begin expiring in 2034. In 2022, we utilized approximately $240 million and $243 million of federal and state NOL carryforwards, respectively, to reduce tax liabilities and in 2021, we utilized approximately $64 million and $56 million of federal and state NOL carryforwards, respectively, to reduce tax liabilities (minimal in 2020). On December 31, 2022, we have remaining federal and state tax NOL carryforwards of $352 million and $440 million, respectively. The federal NOL carryforwards begin expiring in 2036 and the state NOL carryforwards began expiring in 2023. We considered both positive and negative evidence in our determination of the need for valuation allowances for the deferred tax assets associated with federal and state NOLs and federal credits and in conjunction with the IRC Section 382 limitation. Information evaluated includes our financial position and results of operations for the current and preceding years, the availability of deferred tax liabilities and tax carrybacks, as well as an evaluation of currently available information about future years. Valuation allowances are reflective of our quarterly analysis of the four sources of taxable income, including the calculation of the reversal of existing tax assets and liabilities, the impact of annual utilization limitations of interest expense and net operating losses and our results of operations. Based on our analysis, we believe that it is more-likely-than-not that all of our federal deferred tax assets will be utilized and a portion of our state deferred tax assets will not be able to be utilized. Information relating to our valuation allowance are included in the tables below. In 2022, the provision for income taxes includes the reversal of approximately $13 million of federal valuation allowance and $19 million of state valuation allowance primarily due to current year income. There is no federal valuation allowance left as of December 31, 2022. Deferred tax assets and liabilities include temporary differences and carryforwards as follows:
|  | December 31, |
|  | 2022 |  |  | 2021 |
|  | (In Thousands) |
Deferred compensation |  | $ | 2,354 |  |  | $ | 2,390 |
Other accrued liabilities |  |  | 1,813 |  |  |  | 1,721 |
Lease liability |  |  | 5,215 |  |  |  | 6,710 |
Interest expense carryforward |  |  | 16,025 |  |  |  | 27,928 |
Net operating loss |  |  | 93,201 |  |  |  | 159,213 |
Other |  |  | 11,950 |  |  |  | 12,030 |
Less valuation allowance on deferred tax assets |  |  | (14,916 | ) |  |  | (46,968 | )
Total deferred tax assets |  | $ | 115,642 |  |  | $ | 163,024 |
Property, plant and equipment |  |  | (169,507 | ) |  |  | (178,535 | )
Right-of-use-assets |  |  | (5,340 | ) |  |  | (6,709 | )
Prepaid and other insurance reserves |  |  | (4,282 | ) |  |  | (4,413 | )
Total deferred tax liabilities |  | $ | (179,129 | ) |  | $ | (189,657 | )
Net deferred tax liabilities |  | $ | (63,487 | ) |  | $ | (26,633 | )
All of our income (loss) before taxes relates to domestic operations. Detailed below are the differences between the amount of the provision (benefit) for income taxes and the amount which would result from the application of the federal statutory rate to “Income (loss) before benefit for income taxes.”
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (In Thousands) |
Provision (benefit) for income taxes at federal statutory rate |  | $ | 56,543 |  |  | $ | 8,187 |  |  | $ | (13,999 | )
State current and deferred income tax provision (benefit) |  |  | 9,374 |  |  |  | 1,833 |  |  |  | (5,094 | )
Valuation allowance - Federal |  |  | (12,701 | ) |  |  | (13,400 | ) |  |  | 8,758 |
Valuation allowance - State |  |  | (19,351 | ) |  |  | (4,286 | ) |  |  | 4,308 |
State tax rate changes |  |  | 2,824 |  |  |  | 7,360 |  |  |  | (660 | )
Tax credits |  |  | — |  |  |  | (2,835 | ) |  |  | — |
PPP loan forgiveness |  |  | — |  |  |  | (2,456 | ) |  |  | — |
Other |  |  | 2,485 |  |  |  | 1,041 |  |  |  | 1,938 |
Provision (benefit) for income taxes |  | $ | 39,174 |  |  | $ | (4,556 | ) |  | $ | (4,749 | )
A reconciliation of the beginning and ending amount of uncertain tax positions is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (In Thousands) |
Balance at beginning of year |  | $ | — |  |  | $ | 464 |  |  | $ | 519 |
Additions based on tax positions related to the current year |  |  | — |  |  |  | — |  |  |  | — |
Reductions for tax positions of prior years |  |  | — |  |  |  | (464 | ) |  |  | (55 | )
Balance at end of year |  | $ | — |  |  | $ | — |  |  | $ | 464 |
We expect that the amount of unrecognized tax benefits may change as the result of ongoing operations, the outcomes of audits, and the expiration of statute of limitations. This change is not expected to have a significant effect on our results of operations or financial condition. As of December 31, 2022, there is no remaining uncertain tax position. We record interest related to unrecognized tax positions in interest expense and penalties in operating other expense. For 2022, 2021 and 2020, the amounts for interest and penalties associated with unrecognized tax positions were minimal. At December 31, 2022, there was no accrued interest or penalties (no ne at December 31, 2021). LSB and certain of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the 2019-2022 years remain open for all purposes of examination by the U.S. Internal Revenue Service (“IRS”) and other major tax jurisdictions. Additionally, the 2013-2018 years remain subject to examination for determining the amount of net operating loss and other carryforwards.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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