INCOME TAXES

12 Months Ended

Dec. 31, 2012

INCOME TAXES

INCOME TAXES

11. INCOME TAXES

        ARLP's indirect subsidiary, ASI, is subject to federal and state income taxes. ASI's income is principally due to its subsidiary, Matrix Design. ASI has minor temporary differences between Matrix Design's financial reporting basis and the tax basis of its assets and liabilities. Components of income tax expense (benefit) are as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Current:
Federal	$	(37	)	$	(337	)	$	1,517
State		(183	)		(75	)		240
		(220	)		(412	)		1,757
Deferred:
Federal		(753	)		(17	)		(13	)
State		(109	)		(1	)		(2	)
		(862	)		(18	)		(15	)
Income tax expense (benefit)	$	(1,082	)	$	(430	)	$	1,742

        Reconciliations from the provision for income taxes at the U.S. federal statutory tax rate to the effective tax rate for the provision for income taxes are as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Income taxes at statutory rate	$	115,550		$	135,069		$	112,967
Less: Income taxes at statutory rate on Partnership income not subject to income taxes		(116,260	)		(135,204	)		(111,345	)
Increase/(decrease) resulting from:
State taxes, net of federal income tax		(83	)		(7	)		162
Other		(289	)		(288	)		(42	)
Income tax expense (benefit)	$	(1,082	)	$	(430	)	$	1,742