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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Taxes |
Income Taxes | (8) Income Taxes The significant components of the Company's deferred income tax liabilities and assets are as follows:
|  | December 31, |
--- | --- | --- | ---
|  | 2012 |  | 2011 |
|  | (in millions) |
Deferred income tax liabilities: |  |  |  |  |  |  |
Excess tax over book depreciation |  | $ | 22.7 |  | $ | 20.6 |
Intangibles |  |  | 31.8 |  |  | 33.6 |
Other |  |  | 15.7 |  |  | 14.1 |
Total deferred tax liabilities |  |  | 70.2 |  |  | 68.3 |
Deferred income tax assets: |  |  |  |  |  |  |
Accrued expenses |  |  | 16.7 |  |  | 17.9 |
Net operating loss carry-forward |  |  | 5.5 |  |  | 6.5 |
Inventory reserves |  |  | 8.7 |  |  | 8.1 |
Pension—accumulated other comprehensive income |  |  | 15.8 |  |  | 12.0 |
Other |  |  | 14.8 |  |  | 15.2 |
Total deferred tax assets |  |  | 61.5 |  |  | 59.7 |
Less: valuation allowance |  |  | (10.1 | ) |  | (9.1 | )
Net deferred tax assets |  |  | 51.4 |  |  | 50.6 |
Net deferred tax liabilities |  | $ | (18.8 | ) | $ | (17.7 | )
The provision for income taxes from continuing operations is based on the following pre-tax income:
|  | Years Ended December 31, |
--- | --- | --- | ---
|  | 2012 |  | 2011 |  | 2010 |
|  | (in millions) |
Domestic |  | $ | 27.3 |  | $ | 39.6 |  | $ | 43.5 |
Foreign |  |  | 73.0 |  |  | 51.5 |  |  | 51.0 |
|  | $ | 100.3 |  | $ | 91.1 |  | $ | 94.5 |
The provision for income taxes from continuing operations consists of the following:
|  | Years Ended December 31, |
--- | --- | --- | ---
|  | 2012 |  | 2011 |  | 2010 |
|  | (in millions) |
Current tax expense: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 5.0 |  | $ | 6.9 |  | $ | 12.0 |
Foreign |  |  | 21.4 |  |  | 18.6 |  |  | 20.5 |
State |  |  | 1.3 |  |  | 1.8 |  |  | 2.9 |
|  |  | 27.7 |  |  | 27.3 |  |  | 35.4 |
Deferred tax expense (benefit): |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4.4 |  |  | 5.5 |  |  | 1.6 |
Foreign |  |  | (3.5 | ) |  | (7.3 | ) |  | (5.9 | )
State |  |  | 1.1 |  |  | 1.2 |  |  | 0.3 |
|  |  | 2.0 |  |  | (0.6 | ) |  | (4.0 | )
|  | $ | 29.7 |  | $ | 26.7 |  | $ | 31.4 |
Actual income taxes reported from continuing operations are different than would have been computed by applying the federal statutory tax rate to income from continuing operations before income taxes. The reasons for this difference are as follows:
|  | Years Ended December 31, |
--- | --- | --- | ---
|  | 2012 |  | 2011 |  | 2010 |
|  | (in millions) |
Computed expected federal income expense |  | $ | 35.1 |  | $ | 31.9 |  | $ | 33.0 |
State income taxes, net of federal tax benefit |  |  | 1.5 |  |  | 1.9 |  |  | 2.1 |
Foreign tax rate differential |  |  | (7.6 | ) |  | (2.6 | ) |  | (3.3 | )
China tax clawback |  |  | — |  |  | (4.2 | ) |  | — |
Other, net |  |  | 0.7 |  |  | (0.3 | ) |  | (0.4 | )
|  | $ | 29.7 |  | $ | 26.7 |  | $ | 31.4 |
At December 31, 2012, the Company had foreign net operating loss carry forwards of $21.2 million for income tax purposes; $7.4 million of the losses can be carried forward indefinitely, $1.1 million of the losses expire in 2017, and $12.7 million expire in 2020. The net operating losses consist of $5.0 million related to Austrian operations, $2.4 million to Italian operations, $13.2 million to Dutch operations, and $0.6 million related to Chinese operations. At December 31, 2012 and December 31, 2011, the Company had a valuation allowance of $10.1 million and $9.1 million, respectively, all of which relates to U.S. capital losses. Management believes that the ability of the Company to use such losses within the applicable carry forward period does not rise to the level of the more likely than not threshold. The Company does not have a valuation allowance with respect to other deferred tax assets, as management believes that it is more likely than not that the Company will recover such deferred tax assets. Changes enacted in income tax laws had no material effect on the Company in 2012, 2011 or 2010. Undistributed earnings of the Company's foreign subsidiaries amounted to approximately $329.7 million at December 31, 2012, $282.2 million at December 31, 2011, and $313.0 million at December 31, 2010. Those earnings are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal and state income taxes has been recorded thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Company will be subject to withholding taxes payable to the various foreign countries. Determination of the amount of U.S. income tax liability that would be incurred is not practicable because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits may be available to reduce some portion of any U.S. income tax liability. Withholding taxes of approximately $9.8 million would be payable upon remittance of all previously unremitted earnings at December 31, 2012.

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- 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 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 2: 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 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: 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 6: 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 7: 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 8: 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 + Details
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