The income tax provision on 2013 forecasted annual income is estimated to be 33.7% as of June 30, 2013, compared with a benefit of 64.6% for the year ended December 31, 2012. The primary differences between these rates and the statutory rate generally relate to changes in tax contingencies, certain nondeductible expenses including Chapter 11 expenses, tax rate differences in foreign jurisdictions and other discrete adjustments. In addition, the 2012 benefit was primarily due to the $365.0 million charge to increase the asbestos-related liability, the release of the state valuation allowance, and the utilization of domestic production activity incentives.

Grace generally has not had to pay U.S. Federal income taxes in cash in recent years since available tax deductions and credits have fully offset U.S. taxable income.

Grace files U.S. federal income tax returns as well as income tax returns in various state and foreign jurisdictions. In many cases, Grace's uncertain tax positions are related to income tax returns for tax years that remain subject to examination by the relevant taxing authorities. The following table summarizes these open tax years by major jurisdiction:



Tax Jurisdiction(1)	Examination in Progress	Examination Not Yet Initiated
United States—Federal	2007 - 2009	2010 - 2012
United States—State	2007 - 2011	2009 - 2012
Germany	2006 - 2008	2009 - 2012
France	2009 - 2011	2012
United Kingdom	None	2008 - 2012
Italy	None	2008 - 2012
Canada	None	2006 - 2012

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(1)	Includes federal, state, provincial or local jurisdictions, as applicable.

Grace notes that there are attributes generated in prior years that are otherwise closed by statute and were carried forward into years that are open to examination. Those attributes may still be subject to adjustment to the extent utilized in open years.

As a large taxpayer, Grace is under continual audit by the various tax authorities on open-year tax positions. Based on the status of current examinations in various taxing jurisdictions and applicable judicial decisions applied to Grace's fact pattern, Grace believes it is reasonably possible that in the next 12 months, the amount of the liability for unrecognized tax benefits could increase by as much as $87 million, along with accelerated recognition of a deferred charge of $2.1 million, or decrease by as much as $78 million.

Grace accrues potential interest and any associated penalties related to uncertain tax positions in "provision for income taxes" in the Consolidated Statements of Operations. The total amount of interest and penalties accrued on uncertain tax positions included in the Consolidated Balance Sheets was $9.9 million ($6.9 million net of applicable tax benefits) and $8.3 million ($5.5 million net of applicable tax benefits) as of June 30, 2013, and December 31, 2012, respectively.