NOTE E. Income Taxes

The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to their expiration. Pioneer monitors Company-specific, oil and gas industry and worldwide economic factors to assess the likelihood that the Company's deferred tax attributes in the U.S., state, local and foreign tax jurisdictions will be utilized prior to their expiration.

Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement methodology for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of March 31, 2012, the Company had no significant unrecognized tax benefits. The Company's policy is to account for interest charges with respect to income taxes as interest expense and any penalties, with respect to income taxes, as other expense in the consolidated statements of operations. The Company files income tax returns in the U.S. federal and various state and foreign jurisdictions. With few exceptions, the Company believes that it is no longer subject to examinations by tax authorities for years before 2006. As of March 31, 2012, no adjustments had been proposed in any jurisdiction that would have a significant effect on the Company's liquidity, future results of operations or financial position.

Income tax (provisions) benefits. The Company's income tax (provisions) benefits attributable to income from continuing operations consisted of the following for the three months ended March 31, 2012 and 2011:


	Three Months Ended March 31,
	2012			2011
	(in thousands)
Current:
U.S. federal	$	(8,158	)	$	—
U.S. state		(3,674	)		(2,398	)

		(11,832	)		(2,398	)

Deferred:
U.S. federal		(105,865	)		39,880
U.S. state		(6	)		10,425

		(105,871	)		50,305

Income tax (provision) benefit	$	(117,703	)	$	47,907

Discontinued operations. The Company's income tax provisions attributable to income from discontinued operations consisted of the following for the three months ended March 31, 2012 and 2011:


	Three Months Ended March 31,
	2012			2011
	(in thousands)
Current:
U.S. state	$	72		$	(5,725	)
Foreign		(5,477	)		(8,167	)

		(5,405	)		(13,892	)

Deferred:
U.S. federal		(1,779	)		(226,414	)
U.S. state		(6	)		(2,148	)
Foreign		470			(7,667	)

		(1,315	)		(236,229	)

Income tax provision	$	(6,720	)	$	(250,121	)

See Note Q for additional information regarding discontinued operations.