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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Taxes [Abstract] |
Income Taxes | 05. Income Taxes The provision for income taxes was as follows:
Year Ended December 31 |  |  | 2012 |  |  | 2011 |  |  | 2010 |
Current |  |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 17.5 |  | $ | 24.2 |  | $ | 37.4 |
State |  |  | 9.6 |  |  | 2.8 |  |  | 3.2 |
Non-United States |  |  | 155.3 |  |  | 176.5 |  |  | 126.3 |
Total current |  |  | 182.4 |  |  | 203.5 |  |  | 166.9 |
Deferred |  |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |  |
Federal |  |  | (20.4 | ) |  | (2.3 | ) |  | (81.1 | )
State |  |  | 0.5 |  |  | 3.3 |  |  | (2.9 | )
Non-United States |  |  | 8.3 |  |  | 23.8 |  |  | 15.5 |
Total deferred |  |  | (11.6 | ) |  | 24.8 |  |  | (68.5 | )
Total provision |  | $ | 170.8 |  | $ | 228.3 |  | $ | 98.4 |
A reconciliation between taxes computed at the United States Federal statutory rate of 35% and the consolidated effective tax rate is as follows:
Year Ended December 31 |  |  | 2012 |  |  | 2011 |  |  | 2010 |
Income tax based on statutory rate |  | $ | 128.9 |  | $ | 168.0 |  | $ | (57.8 | )
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |
State income taxes, net of Federal benefit |  |  | 6.7 |  |  | 5.2 |  |  | (0.6 | )
Non-United States tax rate difference |  |  | 40.8 |  |  | 40.6 |  |  | 38.7 |
Repatriation of non-United States earnings |  |  | (16.9 | ) |  | 11.1 |  |  | (4.8 | )
Change in valuation reserve |  |  | 4.7 |  |  | (3.3 | ) |  | 11.7 |
Non-deductible goodwill impairment charge |  |  | — |  |  | — |  |  | 109.1 |
Other, net |  |  | 6.6 |  |  | 6.7 |  |  | 2.1 |
Tax provision |  | $ | 170.8 |  | $ | 228.3 |  | $ | 98.4 |
Deferred income taxes are recorded on temporary differences at the tax rate expected to be in effect when the temporary differences reverse. Temporary differences, which gave rise to the deferred taxes, were as follows:
Year Ended December 31 |  |  | 2012 |  |  | 2011 |
Current Future Income Tax Benefits (Expense) |  |  |  |  |  |  |
Accrued payroll taxes and insurance |  | $ | 11.8 |  | $ | 10.7 |
Employee compensation payable |  |  | 20.3 |  |  | 26.8 |
Pension and postretirement benefits |  |  | (3.0 | ) |  | (5.6 | )
Other |  |  | 32.5 |  |  | 22.0 |
Valuation allowance |  |  | (4.9 | ) |  | (2.9 | )
|  |  | 56.7 |  |  | 51.0 |
Noncurrent Future Income Tax Benefits (Expense) |  |  |  |  |  |  |
Accrued payroll taxes and insurance |  |  | 19.9 |  |  | 22.5 |
Pension and postretirement benefits |  |  | 58.7 |  |  | 55.0 |
Intangible assets |  |  | (118.1 | ) |  | (126.4 | )
Net operating losses |  |  | 149.0 |  |  | 144.9 |
Other |  |  | 82.7 |  |  | 103.5 |
Valuation allowance |  |  | (126.2 | ) |  | (116.3 | )
|  |  | 66.0 |  |  | 83.2 |
Total future tax benefits |  | $ | 122.7 |  | $ | 134.2 |
Current tax asset |  | $ | 60.6 |  | $ | 52.4 |
Current tax liability |  |  | (3.9 | ) |  | (1.4 | )
Noncurrent tax asset |  |  | 84.4 |  |  | 102.7 |
Noncurrent tax liability |  |  | (18.4 | ) |  | (19.5 | )
Total future tax benefits |  | $ | 122.7 |  | $ | 134.2 |
The current tax liability is recorded in accrued liabilities, the noncurrent tax asset is recorded in other assets and the noncurrent tax liability is recorded in other long-term liabilities in the Consolidated Balance Sheets. We have United States Federal and non-United States net operating loss carryforwards and United States state net operating loss carryforwards totaling $483.4 and $310.9, respectively, as of December 31, 2012. The net operating loss carryforwards expire as follows:
|  | United States Federal and Non-United States |  | United States — State |
2013 |  | $ | 1.9 |  | $ | 2.0 |
2014 |  |  | 7.0 |  |  | 7.6 |
2015 |  |  | 7.1 |  |  | 4.1 |
2016 |  |  | 10.5 |  |  | 2.9 |
2017 |  |  | 5.6 |  |  | 6.2 |
Thereafter |  |  | 134.7 |  |  | 288.1 |
No expirations |  |  | 316.6 |  |  | — |
Total net operating loss carryforwards |  | $ | 483.4 |  | $ | 310.9 |
We have recorded a deferred tax asset of $149.0 as of December 31, 2012, for the benefit of these net operating losses. Realization of this asset is dependent on generating sufficient taxable income prior to the expiration of the loss carryforwards. A related valuation allowance of $118.1 has been recorded as of December 31, 2012, as management believes that realization of certain net operating loss carryforwards is unlikely. Pretax income of non-United States operations was $234.6, $395.5 and $191.1 in 2012, 2011 and 2010, respectively. We have not provided United States income taxes and non-United States withholding taxes on $594.8 of unremitted earnings of non-United States subsidiaries that are considered to be reinvested indefinitely. Deferred taxes are provided on $341.1 of unremitted earnings of non-United States subsidiaries that may be remitted to the United States. As of December 31, 2012 and 2011, we have recorded a deferred tax liability of $15.7 and $22.0, respectively, related to these non-United States earnings that may be remitted. As of December 31, 2012, we have gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $28.5. We have related tax benefits of $2.5, and the net amount of $26.0 would favorably affect the effective tax rate if recognized. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. As of December 31, 2011, we had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $27.0. We had related tax benefits of $3.6 for a net amount of $23.4. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. We accrued net interest and penalties of $0.1 and $0.6 during 2012 and 2011, respectively. In 2010, we had a net benefit of $1.3 due to a $1.8 benefit from statute expirations. The following table summarizes the activity related to our unrecognized tax benefits during 2012, 2011 and 2010:
|  |  | 2012 |  |  | 2011 |  |  | 2010 |
Gross unrecognized tax benefits, beginning of year |  | $ | 25.0 |  | $ | 25.0 |  | $ | 41.7 |
Increases in prior year tax positions |  |  | 5.8 |  |  | 0.9 |  |  | 3.0 |
Decreases in prior year tax positions |  |  | (0.8 | ) |  | (1.5 | ) |  | (2.0 | )
Increases for current year tax positions |  |  | 3.1 |  |  | 2.5 |  |  | — |
Expiration of statute of limitations and audit settlements |  |  | (6.7 | ) |  | (1.9 | ) |  | (17.7 | )
Gross unrecognized tax benefits, end of year |  | $ | 26.4 |  | $ | 25.0 |  | $ | 25.0 |
Potential interest and penalties |  |  | 2.1 |  |  | 2.0 |  |  | 1.4 |
Balance, end of year |  | $ | 28.5 |  | $ | 27.0 |  | $ | 26.4 |
We conduct business globally in 80 countries and territories. We are routinely audited by the tax authorities of the various tax jurisdictions in which we operate. Generally, the tax years that could be subject to examination are 2009 through 2011 for our major operations in Germany, Italy, France, Japan, United States and United Kingdom. During 2012, we closed the United States tax examination for our 2008 and 2009 tax years and as of December 31, 2012, we are subject to tax audits in France, Germany, Denmark, Austria, Italy, Spain and Norway. We believe that the resolution of these audits will not have a material impact on earnings.

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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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