Income Taxes

The consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser extent, taxes attributable to non-controlling interests as follows:



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2013			2012			2013
Controlling Interests:
Current tax	$	8.8		$	32.7		$	31.1		$	73.6
Intangible-related deferred taxes	11.7			5.2			0.1			29.4
Other deferred taxes	(1.2		)	(6.3		)	4.9			(1.4		)
Total controlling interests	19.3			31.6			36.1			101.6
Non-controlling Interests:
Current tax	$	2.8		$	3.1		$	9.1		$	9.0
Deferred taxes	(2.7		)	(3.7		)	0.8			(4.0		)
Total non-controlling interests	0.1			(0.6		)	9.9			5.0
Provision for income taxes	$	19.4		$	31.0		$	46.0		$	106.6
Income before income taxes (controlling interest)	$	74.2		$	106.8		$	135.0		$	303.9
Effective tax rate attributable to controlling interests⁽¹⁾	26.0		%	29.6		%	26.7		%	33.4		%

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(1)	Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest).

During the three and nine months ended September 30, 2012, the Company recognized a deferred tax benefit of $7.2 million ($4.8 million attributable to the controlling interest) from the revaluation of its deferred taxes as a result of a reduction of corporate tax rates in the United Kingdom and reduced its deferred tax valuation allowance by $3.1 million and $8.3 million, respectively, primarily related to indirect tax benefits from foreign tax positions.

During the three and nine months ended September 30, 2013, the Company recognized a deferred tax benefit of $11.1 million ($7.5 million attributable to the controlling interest) from the revaluation of its deferred taxes as a result of a reduction of corporate tax rates in the United Kingdom. The Company also reduced its deferred tax valuation allowance by $1.6 million in the nine months ended September 30, 2013, primarily related to indirect tax benefits from foreign tax positions.

The components of deferred tax assets and liabilities are as follows:



	December 31, 2012			September 30, 2013
Deferred Tax Assets
State net operating loss carryforwards	$	23.9		$	27.5
Deferred compensation	23.9			27.2
Foreign tax credit carryforwards	20.1			10.2
Tax benefit of uncertain tax positions	17.6			16.3
Accrued expenses	6.0			11.3
Capital loss carryforwards	1.5			1.5
Total deferred tax assets	93.0			94.0
Valuation allowance	(21.3		)	(24.9		)
Deferred tax assets, net of valuation allowance	71.7			69.1
Deferred Tax Liabilities
Intangible asset amortization	$	(238.2	)	$	(265.4	)
Convertible securities interest	(189.2		)	(142.1		)
Non-deductible intangible amortization	(120.1		)	(103.1		)
Deferred revenue	(18.5		)	(17.1		)
Other	(2.8		)	(2.8		)
Total deferred tax liabilities	(568.8		)	(530.5		)
Net deferred tax liability	$	(497.1	)	$	(461.4	)

Deferred tax liabilities are primarily the result of tax deductions for the Company's intangible assets and convertible securities. The Company amortizes most of its intangible assets for tax purposes only, reducing its tax basis below its carrying value for financial statement purposes and generating deferred taxes each reporting period. The Company's 2008 senior convertible notes and junior convertible trust preferred securities also generate deferred taxes because the Company's tax deductions are higher than the interest expense recorded for financial statement purposes. In the nine months ended September 30, 2013, $50.6 million of deferred tax liabilities were reclassified to stockholders' equity related to the settlement of the 2008 senior convertible notes.

At September 30, 2013, the Company has state net operating loss carryforwards that expire over a 15-year period beginning in 2013. The Company also has foreign tax credit carryforwards that expire over a 10-year period beginning in 2013. The valuation allowances at December 31, 2012 and September 30, 2013 were principally related to the Company's projections of taxable income prior to the expiration of these state and federal carryforwards.

As of September 30, 2013, the Company carried a liability for uncertain tax positions of $20.9 million, including $2.1 million for interest and related charges. At September 30, 2013 this liability also included $17.7 million for tax positions that, if recognized, would affect the Company's effective tax rate.

The Company periodically has tax examinations in the United States and foreign jurisdictions. Examination outcomes, and any related settlements, are subject to significant uncertainty. The completion of examinations may result in the payment of additional taxes and/or the recognition of tax benefits.