Those lines mean that a filter is applied to the routing process.
Look at this example:
R1 have OSPF configured and we apply the distribute-list 1 in the inbound direction, so the show ip protocol output will change to:
R1(config-router)#distribute-list 1 in
R1#show ip protocols
Routing Protocol is "ospf 1"
Outgoing update filter list for all interfaces is not set
Incoming update filter list for all interfaces is 1