XML 73 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2011
Income Taxes |
Income Taxes |
Note 9. Income Taxes Reliance and its subsidiaries file numerous consolidated and separate income tax returns in the United States federal jurisdiction and in many state and foreign jurisdictions. The Company is no longer subject to U.S. federal, state and local tax examinations for years before 2006. Significant components of the provision for income taxes attributable to operations are as follows:
|  | Year Ended December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2010 |  | 2009 |
|  | (in millions) |
Current: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 153.1 |  | $ | 40.3 |  | $ | (13.5 | )
State |  |  | 22.1 |  |  | 12.2 |  |  | 2.9 |
Foreign |  |  | 14.4 |  |  | 3.4 |  |  | (1.1 | )
|  |  | 189.6 |  |  | 55.9 |  |  | (11.7 | )
Deferred: |  |  |  |  |  |  |  |  |  |
Federal |  |  | (24.1 | ) |  | 34.0 |  |  | 60.0 |
State |  |  | (2.3 | ) |  | 7.9 |  |  | (3.1 | )
Foreign |  |  | (0.8 | ) |  | 0.8 |  |  | 1.1 |
|  |  | (27.2 | ) |  | 42.7 |  |  | 58.0 |
|  | $ | 162.4 |  | $ | 98.6 |  | $ | 46.3 |
Components of U.S. and international income (loss) before income taxes were as follows:
|  | Year Ended December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2010 |  | 2009 |
|  |  |  | (in millions) |  |  |
U.S. |  | $ | 452.0 |  | $ | 275.8 |  | $ | 201.7 |
International |  |  | 59.6 |  |  | 20.7 |  |  | (6.2 | )
Income before income taxes |  | $ | 511.6 |  | $ | 296.5 |  | $ | 195.5 |
The reconciliation of income tax at the U.S. federal statutory tax rates to income tax expense is as follows:
|  | Year Ended December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2010 |  | 2009 |
Income tax at U.S. federal statutory tax rate |  |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income tax, net of federal tax effect |  |  | 2.4 |  |  | 3.9 |  |  | (0.6 | )
Net effect of life insurance policies |  |  | (2.3 | ) |  | (2.6 | ) |  | (6.3 | )
Net effect of changes in unrecognized tax benefits |  |  | — |  |  | (0.1 | ) |  | (5.8 | )
Domestic production activity deduction |  |  | (1.5 | ) |  | (1.2 | ) |  | — |
Other, net |  |  | (1.9 | ) |  | (1.7 | ) |  | 1.4 |
Effective tax rate |  |  | 31.7 | % |  | 33.3 | % |  | 23.7 | %
Significant components of the Company's deferred tax assets and liabilities are as follows:
|  | December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2010 |
|  | (in millions) |
Deferred tax assets: |  |  |  |  |  |  |
Accrued expenses not currently deductible for tax |  | $ | 45.7 |  | $ | 35.8 |
Inventory costs capitalized for tax purposes |  |  | 24.7 |  |  | 13.0 |
Allowance for doubtful accounts |  |  | 9.3 |  |  | 7.5 |
Tax credit carryforwards |  |  | 1.1 |  |  | 1.1 |
Net operating loss carryforwards |  |  | 3.1 |  |  | 3.2 |
Other |  |  | 24.1 |  |  | 14.5 |
Total deferred tax assets |  |  | 108.0 |  |  | 75.1 |
Deferred tax liabilities: |  |  |  |  |  |  |
Property, plant and equipment, net |  |  | (154.1 | ) |  | (134.8 | )
Goodwill and other intangible assets |  |  | (342.9 | ) |  | (284.7 | )
LIFO inventories |  |  | (17.5 | ) |  | (36.9 | )
Other |  |  | — |  |  | (0.9 | )
Total deferred tax liabilities |  |  | (514.5 | ) |  | (457.3 | )
Net deferred tax liabilities |  | $ | (406.5 | ) | $ | (382.2 | )
As of December 31, 2011, the Company had available state net operating loss carryforwards ("NOL's") of $4.8 million to offset future income taxes, expiring in years 2012 through 2031. The Company believes that it is more likely than not that it will be able to realize these NOL's within their respective carryforward periods. Taxes on Foreign Income As of December 31, 2011, unremitted earnings of subsidiaries outside of the United States were approximately $128.6 million on which no United States taxes had been provided. The Company's intention is to indefinitely reinvest these earnings outside the United States. It is not practicable to estimate the amount of additional taxes that might be payable upon repatriation of foreign earnings. Unrecognized Tax Benefits The Company is under audit by various state jurisdictions but does not anticipate any material adjustments from these examinations. Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:
|  | Year Ended December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2010 |  | 2009 |
|  |  |  | (in millions) |  |  |
Unrecognized tax benefits at January 1 |  | $ | 15.4 |  | $ | 15.5 |  | $ | 23.4 |
Increases in tax positions for prior years |  |  | 1.3 |  |  | 0.3 |  |  | 2.8 |
Decreases in tax positions for prior years |  |  | (0.2 | ) |  | (0.9 | ) |  | (3.6 | )
Increases in tax positions for current year |  |  | 3.7 |  |  | 3.0 |  |  | 2.9 |
Settlements |  |  | (0.1 | ) |  | (0.3 | ) |  | (1.3 | )
Lapses in statutes-of-limitation periods |  |  | (4.0 | ) |  | (2.2 | ) |  | (8.7 | )
Unrecognized tax benefits at December 31 |  | $ | 16.1 |  | $ | 15.4 |  | $ | 15.5 |
As of December 31, 2011, $16.1 million of unrecognized tax benefits would impact the effective tax rate if recognized. Accrued interest and penalties, net of applicable tax effect, related to uncertain tax positions were approximately $1.1 million as of December 31, 2011 and 2010.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration