Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

Note 10: Income Taxes Provisions for income taxes are as follows:

	Nine Months Ended September 30,				Three Months Ended September 30,
	2012		2011		2012			2011
	(In Thousands)
Current:
Federal	$	21,405	$	24,497	$	3,964		$	2,583
State		3,912		6,869		639			1,200
Total Current		25,317		31,366		4,603			3,783
Deferred:
Federal		1,556		1,932		(664	)		554
State		237		284		(82	)		96
Total Deferred		1,793		2,216		(746	)		650
Provisions for income taxes	$	27,110	$	33,582	$	3,857		$	4,433

For the nine and three months ended September 30, 2012 and 2011, the current provision 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. For the nine and three months ended September 30, 2012 and 2011, the current provision for state income taxes shown above includes regular state income tax and provisions for uncertain state income tax positions.

At December 31, 2011, we have remaining state tax net operating loss (“NOL”) carryforwards of approximately $8.0 million that begin expiring in 2013.

Our annual estimated effective tax rate for 2012 includes the impact of permanent tax differences, such as the domestic manufacturer’s deduction, the advanced energy credit and other permanent items.

The tax provision for the nine months ended September 30, 2012 and 2011 was $27.1 million (36% of pre-tax income) and $33.6 million (37% of pre-tax income), respectively.

We had approximately $2.6 million and $0.7 million accrued for uncertain tax liabilities at September 30, 2012 and December 31, 2011, respectively, which are included in current and noncurrent accrued and other liabilities.

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 and certain state tax authorities for the tax years 2007-2010. As of September 30, 2012, 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.