XML 36 R16.htm IDEA: XBRL DOCUMENT v2.3.0.15
Taxation
9 Months Ended
Sep. 30, 2011
Taxation [Abstract] 
Taxation

NOTE 6—TAXATION

A roll-forward of unrecognized tax benefits and associated accrued interest and penalties is as follows:

 

(in millions)

    Interest and
Penalties		     Unrecognized
Tax Benefits		     Total  

Opening balance at January 1, 2011

    $ 0.3      $ 8.3      $ 8.6   

Additions related to tax positions taken in the current period

      0.0        5.0        5.0   

Additions for tax positions of prior periods

      0.1        0.0        0.1   

Reductions for tax positions of prior periods

      (0.1 )      (1.8 )      (1.9 ) 

Closing balance at September 30, 2011

      0.3        11.5        11.8   

Current

      (0.1 )      (0.7 )      (0.8 ) 

Non-current

    $ 0.2      $ 10.8      $ 11.0   

All of the $11.8 million of unrecognized tax benefits, and interest and penalties, would impact our effective tax rate if recognized.

We recognize accrued interest and penalties associated with uncertain tax positions as part of income taxes in our consolidated statements of income.

In the third quarter of 2011, the Company determined that a portion of the NewMarket Corporation civil complaint settlement (see Note 13), and associated legal and other professional expenses, would be tax deductible and accordingly recorded a $4.8 million addition to unrecognized tax benefits. Also during the third quarter of 2011, an additional $0.2 million was recorded in respect of acquisition-related costs; and there was a $1.8 million reduction in unrecognized tax benefits, and $0.1 million for associated interest and penalties, due to the expiration of applicable statutes of limitations for certain tax years.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. As at September 30, 2011, the Company's subsidiaries in the U.S. are subject to state tax audits in various states, and the Company's German subsidiaries are subject to tax audits. The Company does not anticipate that adjustments, if any, arising out of these tax audits would result in a material change to its financial position as at September 30, 2011.

The Company and its U.S. subsidiaries remain open to examination by the IRS for years 1998 to 2004 and 2007 onwards due to the net operating losses in the period 1998 to 2002, although no examination is currently underway. The Company's subsidiaries in foreign tax jurisdictions are open to examination including France (2008 onwards), Germany (2005 onwards), Switzerland (2009 onwards) and the United Kingdom (2008 onwards).