Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes from continuing operations for each of the three years in the period ended December 31 consisted of the following ($ in millions):


	2012			2011			2010
Current:
Federal	$	(1.8	)	$	(3.8	)	$	(3.0	)
Foreign		3.2			2.1			5.3
State and local		0.1			0.3			0.3

		1.5			(1.4	)		2.6
Deferred:
Federal	$	2.1		$	4.7		$	70.8
Foreign		0.3			0.2			(0.9	)
State and local		-			-			2.6

		2.4			4.9			72.5

Total income tax provision	$	3.9		$	3.5		$	75.1

Differences between Statutory Federal Income Tax Rate and Effective Income Tax Rate

Differences between the statutory federal income tax rate and the effective income tax rate from continuing operations for each of the three years in the period ended December 31 are summarized below:


	2012			2011			2010
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		1.0			0.9			16.4
Valuation allowance		41.3			8.8			7,646.4
Bad debt deduction		(24.9	)		-
Asset dispositions and write-offs		(29.5	)
Non-deductible acquisition costs		-			-			41.6
Tax reserves		(1.0	)		4.1			(100.9	)
R&D tax credits		-			(4.1	)		(54.8	)
Foreign tax rate effects		(7.2	)		(22.5	)		(138.0	)
Other, net		0.4			(1.1	)		64.3

Effective income tax rate		15.1	%		21.1	%		7,510.0	%

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31 are summarized as follows ($ in millions):


	2012			2011
Deferred tax assets:
Depreciation and amortization	$	12.5		$	12.5
Accrued expenses		27.9			28.0
Net operating loss, capital loss, alternative minimum tax, research and development, and foreign tax credit carryforwards		75.0			73.1
Definite lived intangibles		1.8			1.8
Pension benefits		31.1			27.4
Other		0.3			0.2
Deferred revenue		0.1			0.1

Gross deferred tax assets		148.7			143.1
Valuation allowance		(131.8	)		(123.9	)

Total deferred tax assets		16.9			19.2
Deferred tax liabilities:
Depreciation and amortization		(5.0	)		(5.9	)
Expenses capitalized for book		(2.1	)		(2.5	)
Indefinite lived intangibles		(56.2	)		(54.5	)

Gross deferred tax liabilities		(63.3	)		(62.9	)

Net deferred tax liability	$	(46.4	)	$	(43.7	)

Classification of Net Deferred Tax Assets in Balance Sheet

The net deferred tax asset at December 31 is classified in the balance sheet as follows ($ in millions):


	2012			2011
Current net deferred tax assets	$	4.0		$	4.8
Current valuation allowance		(14.6	)		(7.5	)

Total current deferred tax liability	$	(10.6	)	$	(2.7	)

Long-term net deferred tax asset	$	81.4		$	75.3
Long-term valuation allowance		(117.2	)		(116.3	)

Long-term net deferred tax liability	$	(35.8	)	$	(41.0	)

Income (Loss) from Continuing Operations before Taxes

Income (loss) from continuing operations before taxes for each of the three years ended December 31 consisted of the following ($ in millions):


	2012		2011		2010
U.S.	$	10.0	$	2.5	$	(13.6	)
Non-U.S.		15.9		14.1		14.6

	$	25.9	$	16.6	$	1.0

Summary of Activities Related to Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits ($ in millions):


Balance at January 1, 2011	$	3.8
Increases related to current year tax		1.3
Decreases due to settlements with tax authorities		(0.2	)
Decreases due to lapse of statute of limitations		(0.6	)

Balance at December 31, 2011	$	4.3
Increases related to current year tax		0.2
Increases from prior period positions		0.1
Decreases from prior period positions		(0.2	)
Decreases due to lapse of statute of limitations		(0.4	)

Balance at December 31, 2012	$	4.0