The impact of the adoption of SFAS 123(R) on our Consolidated Balance Sheet at January 1, 2005 is as follows (in thousands):

Note 8 - Income Taxes

Income from continuing operations before the provision for income taxes is attributable to the following jurisdictions (in thousands):

The provision for income taxes consisted of the following (in thousands):

We made payments related to income taxes totaling $74.8 million in 2006 and $14.3 million in 2005. We deferred our third and fourth quarter 2005 estimated federal tax payments as allowed by the Katrina Emergency Tax Relief Act of 2005 (the Act). These payments of approximately $27.0 million were paid in October 2006.

A reconciliation of the U.S. federal statutory tax rate to our effective tax rate on income before income taxes and equity earnings is as follows:

We recorded equity earnings in LAC net of income tax expense of $1.0 million and $0.9 million in 2006 and 2005, respectively. These amounts are not reflected in the tables above.