Income before income taxes and the provision for income taxes consisted of the following:

	Year Ended December 31,

	2011			2010			2009
Income from continuing operations:
United States	$	8.0		$	71.2		$	253.6
Foreign		161.2			152.5			44.3

	$	169.2		$	223.7		$	297.9

Provision for (benefit from) income taxes:
Current:
United States	$	20.7		$	(33.1	)	$	57.3
Foreign		29.3			17.2			13.7

Total current		50.0			(15.9	)		71.0

Deferred and other:
United States		(43.1	)		65.6			4.1
Foreign		7.4			(4.0	)		(1.4	)

Total deferred and other		(35.7	)		61.6			2.7

Total provision	$	14.3		$	45.7		$	73.7

The reconciliation of income tax computed at the U.S. federal statutory tax rate to our effective income tax rate was as follows:

	Year Ended December 31,

	2011			2010			2009
Tax at U.S. federal statutory rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of U.S. federal benefit		1.3			2.0			1.7
U.S. credits and exemptions		(8.7	)		(0.6	)		(1.5	)
Foreign earnings taxed at lower rates		(5.3	)		(10.8	)		(10.5	)
Audit settlements with taxing authorities		(0.4	)		(0.6	)		(0.9	)
Adjustments to uncertain tax positions		1.5			(3.6	)		1.4
Changes in valuation allowance		(18.4	)		(5.3	)		2.0
Benefit for loss on investment in foreign subsidiary		—			—			(1.5	)
Law change regarding deductibility of Medicare Part D expenses		—			2.8			—
Tax on repatriation of foreign earnings		4.1			1.6			—
Other		(0.6	)		(0.1	)		(1.0	)

		8.5	%		20.4	%		24.7	%

Significant components of our deferred tax assets and liabilities were as follows:

	As of December 31,

	2011			2010
Deferred tax assets:
Working capital accruals	$	37.8		$	39.7
Legal, environmental and self-insurance accruals		45.6			40.6
Pension, other postretirement and postemployment benefits		169.9			151.2
NOL and credit carryforwards		242.5			206.3
Payroll and compensation		46.1			48.6
Other		71.0			80.1

Total deferred tax assets		612.9			566.5
Valuation allowance		(124.5	)		(162.7	)

Net deferred tax assets		488.4			403.8

Deferred tax liabilities:
Accelerated depreciation		36.1			25.5
Basis difference in affiliates		40.5			38.6
Intangible assets recorded in acquisitions		344.5			213.9
Other		58.9			60.2

Total deferred tax liabilities		480.0			338.2

	$	8.4		$	65.6

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We periodically assess deferred tax assets to determine if they will be realized and the adequacy of deferred tax liabilities, incorporating the results of local, state, federal and foreign tax audits in our estimates and judgments.

At December 31, 2011, we had the following tax loss carryforwards available: state tax loss carryforwards of approximately $561.6 and tax losses of various foreign jurisdictions of approximately $678.8, $638.5 of which is reported in continuing operations. We also had U.S. foreign tax and general business credit carryforwards of $29.1 and $12.7, respectively. Of these amounts, approximately $6.9 expire in 2012 and $728.7 expire at various times between 2012 and 2031. The remaining carryforwards have no expiration date.

Realization of deferred tax assets associated with net operating loss and credit carryforwards is dependent upon generating sufficient taxable income prior to their expiration in the appropriate tax jurisdiction. We believe that it is more likely than not that certain of these net operating loss and credit carryforwards will expire unused and, accordingly, have established a valuation allowance against the deferred tax assets associated with these carryforwards. Although realization is not assured for the remaining deferred tax assets, we believe it is more likely than not that the deferred tax assets will be realized through future taxable earnings or tax planning strategies. However, deferred tax assets could be reduced in the near term if our estimates of taxable income during the carryforward period are significantly reduced or tax planning strategies are no longer viable. The valuation allowance decreased by $38.2 and $37.9 in 2011 and 2010, respectively. Of the decrease in 2011, $31.2 was recognized as a reduction in tax expense from continuing operations and $7.7 was an increase to tax expense from discontinued operations. Of the decrease in 2010, $11.7 was recognized as a reduction in tax expense from continuing operations and $9.8 as a tax benefit from discontinued operations.

The amount of income tax that we pay annually is dependent on various factors, including the timing of certain deductions. These deductions can vary from year to year, and, consequently, the amount of income taxes paid in future years will vary from the amounts paid in the prior year.

Undistributed foreign earnings are considered indefinitely reinvested. Accordingly, we have made no provision for U.S. federal and state income taxes or foreign withholding taxes for these foreign earnings. If these earnings were distributed, we would be subject to U.S. income taxes (subject to a reduction for foreign tax credits) and withholding taxes payable to the various foreign countries. At December 31, 2011, we had approximately $1,703.0 of undistributed foreign earnings for which no U.S. federal or state income taxes have been provided.

As of December 31, 2011, we had gross unrecognized tax benefits of $85.2 (net unrecognized tax benefits of $68.0), of which $61.7, if recognized, would impact our effective tax rate from continuing operations. Similarly, at December 31, 2010 and 2009, we had gross unrecognized tax benefits of $95.5 (net unrecognized tax benefits of $77.4) and $120.9 (net unrecognized tax benefits of $105.3), respectively.

We classify interest and penalties related to unrecognized tax benefits as a component of our income tax provision. As of December 31, 2011, gross accrued interest excluded from the amounts above totaled $12.9 (net accrued interest of $10.1), while the related amounts as of December 31, 2010 and 2009 were $15.6 (net accrued interest of $11.3) and $21.9 (net accrued interest of $16.5), respectively. Our income tax provision for the years ended December 31, 2011, 2010 and 2009 included gross interest income of $2.3, $4.0 and $0.7, respectively. There were no significant penalties recorded during any of the years presented.

Based on the outcome of certain examinations or as a result of the expiration of statutes of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by approximately $30.0 to $40.0. The previously unrecognized tax benefits relate to a variety of tax issues including transfer pricing matters, deductibility of interest expense in certain jurisdictions, and other, primarily foreign, tax matters.

The aggregate changes in the balance of unrecognized tax benefits for the years ended December 31, 2011, 2010 and 2009 were as follows:

	2011			2010			2009

Unrecognized tax benefit — opening balance	$	95.5		$	120.9		$	102.9
Gross increases — tax positions in prior period		3.3			13.9			29.8
Gross decreases — tax positions in prior period		(11.4	)		(13.4	)		(3.2	)
Gross increases — tax positions in current period		10.9			8.7			11.2
Settlements		(0.9	)		(24.5	)		(5.8	)
Lapse of statute of limitations		(11.5	)		(8.3	)		(16.8	)
Change due to foreign currency exchange rates		(0.7	)		(1.8	)		2.8

Unrecognized tax benefit — ending balance	$	85.2		$	95.5		$	120.9

During 2011, we adopted an alternative method of allocating certain expenses between foreign and domestic sources for federal income tax purposes. As a result of this method change, we have determined that it is more likely than not that we will be able to utilize our existing foreign tax credits within the remaining carryforward period. Accordingly, we released the valuation allowance on our foreign tax credit carryforwards in 2011, resulting in an income tax benefit of $27.8. In addition, the effective tax rate for the year ended December 31, 2011 was impacted favorably by tax benefits of $2.5 associated with the conclusion of a Canadian appeals process and $7.7 of tax credits related to the expansion of our power transformer facility in Waukesha, WI. These tax benefits were offset partially by $6.9 of federal income taxes that were provided in connection with our plan to repatriate a portion of the earnings of a foreign subsidiary.

During 2010, the IRS completed the field examination of our 2006 and 2007 federal income tax returns and issued a Revenue Agent's Report ("RAR"). Upon issuance of the RAR, we reduced a portion of our valuation allowance and our liability for uncertain tax positions to reflect amounts determined to be effectively settled or that satisfied the more likely than not threshold, resulting in the recognition of income tax benefits of $18.2 and $7.3 to continuing and discontinued operations, respectively. Further, we disagreed with and protested certain adjustments included in the RAR to the Appeals Office of the IRS. In the fourth quarter of 2011, we settled all issues under appeal with the IRS for the 2006 and 2007 tax years with no further recognition of income tax expense or benefit resulting.

In addition, the effective income tax rate for the year ended December 31, 2010 was impacted favorably by a $16.0 tax benefit related to the reduction in liabilities for uncertain tax positions associated with various foreign and domestic statute expirations and the settlement of state examinations. These benefits were offset partially by a domestic charge of $6.2 associated with the taxation of prescription drug costs for retirees under Medicare Part D as a result of the 2010 enactment of the Patient Protection and Affordable Care Act (the "PPAC Act") and $3.6 associated with the repatriation of foreign earnings.

In 2009, the statute of limitations expired for various state income tax returns. As a result of these expirations, we recognized tax benefits of $18.0 during 2009, with approximately $7.9 recorded to continuing operations and the remainder of $10.1 recorded to discontinued operations. In addition, the effective tax rate for the year ended December 31, 2009 was impacted favorably by a tax benefit of $4.9 associated with a loss on an investment in a foreign subsidiary.

We perform reviews of our income tax positions on a continuous basis and accrue for potential uncertain positions when we determine that an uncertain position meets the criteria of the Income Taxes Topic of the Codification. Accruals for these uncertain tax positions are recorded in "Income taxes payable" and "Deferred and other income taxes" in the accompanying consolidated balance sheets based on the expectation as to the timing of when the matters will be resolved. As events change and resolution occurs, these accruals are adjusted, such as in the case of audit settlements with taxing authorities.

The IRS currently is performing an audit of our 2008 and 2009 federal income tax returns. At this stage, the outcome of the audit is uncertain; however, we believe that any contingencies are adequately provided for. We reasonably expect to conclude this examination within the next twelve months.

State income tax returns generally are subject to examination for a period of three to five years after filing of the respective tax return. The impact on such tax returns of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination, administrative appeal or litigation. We believe that any uncertain tax positions related to these examinations have been adequately provided for.

We have various foreign income tax returns under examination. Significant jurisdictions with tax examinations underway include: Canada for the 2000 to 2002 and 2006 tax returns, Germany for the 2005 to 2009 tax returns, Denmark for the 2006 to 2010 tax returns, and the United Kingdom for the 2009 tax return. We believe that any uncertain tax positions related to these examinations have been adequately provided for.

An unfavorable resolution of one or more of the above matters could have a material adverse effect on our results of operations or cash flows in the quarter and year in which an adjustment is recorded or the tax is due or paid. As audits and examinations are still in process or we have not reached the final stages of the appeals process for any of the above matters, the timing of the ultimate resolution and any payments that may be required for the above matters cannot be determined at this time.

Upon the conclusion of our disposition activities discussed in Note 4, we may recognize an additional income tax provision or benefit, generally, as part of discontinued operations.