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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income (loss) from continuing operations before income taxes and equity income as reported in the Consolidated Statements of Operations consists of the following:
(In thousands) |  | 2012 |  | 2011 |  | 2010
United States |  | $ | 40,411 |  |  | $ | 47,680 |  |  | $ | 23,037 |
International |  | (258,906 | ) |  | (6,015 | ) |  | (2,561 | )
Total income (loss) before income taxes and equity income |  | $ | (218,495 | ) |  | $ | 41,665 |  |  | $ | 20,476 |
Income tax expense as reported in the Consolidated Statements of Operations consists of the following:
(In thousands) |  | 2012 |  | 2011 |  | 2010
Income tax expense (benefit): |  |  |  |  |  |
Currently payable: |  |  |  |  |  |
U.S. federal |  | $ | 22,603 |  |  | $ | 4,249 |  |  | $ | (325 | )
U.S. state |  | 1,561 |  |  | 913 |  |  | 453 |
International |  | 21,795 |  |  | 23,860 |  |  | 30,765 |
Total income taxes currently payable |  | 45,959 |  |  | 29,022 |  |  | 30,893 |
Deferred U.S. federal |  | (3,831 | ) |  | 670 |  |  | 6,228 |
Deferred U.S. state |  | (843 | ) |  | 503 |  |  | (56 | )
Deferred international |  | (6,034 | ) |  | 19,653 |  |  | (32,789 | )
Total income tax expense |  | $ | 35,251 |  |  | $ | 49,848 |  |  | $ | 4,276 |
Cash payments for income taxes, including taxes on the gain or loss from discontinued business, were $42.6 million, $42.3 million and $27.4 million for 2012, 2011 and 2010, respectively. The following is a reconciliation of the normal expected statutory U.S. federal income tax rate to the effective income tax rate as a percentage of Income (loss) from continuing operations before income taxes and noncontrolling interest as reported in the Consolidated Statements of Operations:
|  | 2012 |  | 2011 |  | 2010
U.S. federal income tax rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
U.S. state income taxes, net of federal income tax benefit |  | (0.1 | ) |  | 2.9 |  |  | 5.1 |
U.S. domestic manufacturing deductions and credits |  | 1.7 |  |  | (9.6 | ) |  | (5.9 | )
Change in permanent reinvestment assertion |  | — |  |  | — |  |  | 9.3 |
Difference in effective tax rates on international earnings and remittances |  | (0.7 | ) |  | (11.7 | ) |  | (34.4 | )
Uncertain tax position contingencies and settlements |  | 2.5 |  |  | (18.0 | ) |  | 1.2 |
Changes in realization on beginning of the year deferred tax assets |  | (1.8 | ) |  | 89.1 |  |  | 8.4 |
Restructuring charges with no realizable tax benefits |  | (9.8 | ) |  | 23.0 |  |  | 11.2 |
U.S. nondeductible items |  | (0.7 | ) |  | 6.0 |  |  | 8.7 |
Deferred charges |  | — |  |  | — |  |  | (19.0 | )
Non-deductible goodwill impairment |  | (42.5 | ) |  | — |  |  | — |
Cumulative effect of change in statutory tax rates/laws |  | 0.1 |  |  | 3.5 |  |  | 3.4 |
Other, net |  | 0.2 |  |  | (0.6 | ) |  | (2.1 | )
Effective income tax rate |  | (16.1 | )% |  | 119.6 | % |  | 20.9 | %
The decrease in the effective income tax rate for 2012 compared with 2011 is the result of lower earnings from continuing operations, a non-deductible goodwill impairment charge of $265.0 million for which the Company has no tax basis as a result of historical stock acquisitions, and a change in the realizability of beginning of the year deferred tax assets of $37.3 million primarily related to the Company's U.K. deferred tax assets on its U.K. pension obligations recorded in 2011 and not repeated in 2012. The decrease in the effective tax rate for 2012 compared with 2011 was offset by a change in the earnings mix of the Company for year 2012 compared with prior years primarily due to the jurisdictional impact of the Company's restructuring charges, and the reduction in tax benefits from the lapse of several statutes of limitations for uncertain tax positions in 2012 compared to 2011. The tax effects of the temporary differences giving rise to the Company's deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows:
|  | 2012 |  | 2011
(In thousands) |  | Asset |  | Liability |  | Asset |  | Liability
Depreciation and amortization |  | $ | — |  |  | $ | 99,219 |  |  | $ | — |  |  | $ | 120,590 |
Expense accruals |  | 38,595 |  |  | — |  |  | 43,418 |  |  | — |
Inventories |  | 2,649 |  |  | — |  |  | 2,588 |  |  | — |
Provision for receivables |  | 1,677 |  |  | — |  |  | 2,205 |  |  | — |
Deferred revenue |  | — |  |  | 2,014 |  |  | — |  |  | 2,065 |
Operating loss carryforwards |  | 99,475 |  |  | — |  |  | 79,408 |  |  | — |
Foreign tax credit carryforwards |  | 24,223 |  |  | — |  |  | 29,540 |  |  | — |
Pensions |  | 104,413 |  |  | — |  |  | 95,657 |  |  | — |
Currency adjustments |  | 26,661 |  |  | — |  |  | 30,813 |  |  | — |
Post-retirement benefits |  | 1,160 |  |  | — |  |  | 1,079 |  |  | — |
Other |  | 25,324 |  |  | — |  |  | 19,299 |  |  | — |
Subtotal |  | 324,177 |  |  | 101,233 |  |  | 304,007 |  |  | 122,655 |
Valuation allowance |  | (126,532 | ) |  | — |  |  | (99,617 | ) |  | — |
Total deferred income taxes |  | $ | 197,645 |  |  | $ | 101,233 |  |  | $ | 204,390 |  |  | $ | 122,655 |
The deferred tax asset and liability balances recognized on the Consolidated Balance Sheets at December 31, 2012 and 2011 are as follows:
(In thousands) |  | 2012 |  | 2011
Other current assets |  | $ | 45,672 |  |  | $ | 50,694 |
Other assets |  | 70,271 |  |  | 59,200 |
Other current liabilities |  | (651 | ) |  | (729 | )
Deferred income taxes |  | (18,880 | ) |  | (27,430 | )
At December 31, 2012, the tax-effected amount of net operating loss carryforwards ("NOLs") totaled $99.5 million. Tax-effected NOLs from international operations are $90.4 million. Of that amount, $63.6 million can be carried forward indefinitely, and $26.8 million will expire at various times between 2013 and 2032. Tax-effected U.S. state NOLs are $9.1 million. Of that amount, $0.1 million expire at various times between 2013 and 2017, $3.1 million expire at various times between 2018 and 2022, $2.7 million expire at various times between 2023 and 2027, and $3.2 million expire at various times between 2028 and 2032. The valuation allowances of $126.5 million and $99.6 million at December 31, 2012 and 2011, respectively, related principally to deferred tax assets for U.K. pension liabilities, NOLs, currency translation and foreign investment tax credits that are uncertain as to realizability. Due to the negative financial performance of the Company's U.K. operations and restructuring charges, the Company recorded a non-cash tax expense of approximately $6.1 million and $35.4 million in 2012 and 2011 to recognize a valuation allowance to fully offset the U.K. operations' net deferred tax assets primarily related to U.K. pension liabilities and losses from operations, as the Company determined it is more likely than not that these assets will not be realized. Additionally in 2011, the Company recorded an additional valuation allowance of approximately $22.9 million through Accumulated other comprehensive loss related to U.K. pension liability adjustments that were recorded through Accumulated other comprehensive loss during 2011. Excluding the valuation allowance activity related to the Company's U.K. operations, the remaining increase in valuation allowances resulted primarily from restructuring charges that were incurred in certain jurisdictions which generated losses, where the Company determined it is more likely than not that these assets will not be realized. The Company has not provided U.S. income taxes on certain of its non-U.S. subsidiaries' undistributed earnings as such amounts are indefinitely reinvested outside the United States. At December 31, 2012 and 2011, such earnings were approximately $882 million and $834 million, respectively. If these earnings were repatriated at December 31, 2012, the one-time tax cost associated with the repatriation would be approximately $166 million. The Company has a tax holiday in Asia that expired in 2012. The Company no longer has tax holidays in Europe and the Middle East as they have all expired. During 2011, the tax holidays resulted in a reduction of $0.1 million in income tax expense, while during 2010 and 2012 these tax holidays resulted in no change to income tax expense. The Company recognizes accrued interest and penalty expense related to unrecognized income tax benefits ("UTB") in income tax expense. During 2012, 2011 and 2010 the Company recognized an income tax benefit of $1.8 million, $1.0 million and $0.3 million, respectively, for interest and penalties. The Company has accrued $8.0 million and $9.7 million for the payment of interest and penalties at December 31, 2012 and 2011, respectively. A reconciliation of the change in the UTB balance from January 1, 2010 to December 31, 2012 is as follows:
(In thousands) |  | Unrecognized Income Tax Benefits |  | Deferred Income Tax Benefits |  | Unrecognized Income Tax Benefits, Net of Deferred Income Tax Benefits
Balances, January 1, 2010 |  | $ | 36,791 |  |  | $ | (949 | ) |  | $ | 35,842 |
Additions for tax positions related to the current year (includes currency translation adjustment) |  | 1,846 |  |  | — |  |  | 1,846 |
Additions for tax positions related to prior years (includes currency translation adjustment) |  | 313 |  |  | (44 | ) |  | 269 |
Other reductions for tax positions related to prior years |  | (429 | ) |  | — |  |  | (429 | )
Statutes of limitation expirations |  | (2,348 | ) |  | 156 |  |  | (2,192 | )
Settlements |  | (284 | ) |  | 99 |  |  | (185 | )
Balance at December 31, 2010 |  | $ | 35,889 |  |  | $ | (738 | ) |  | $ | 35,151 |
Additions for tax positions related to the current year (includes currency translation adjustment) |  | 2,534 |  |  | (10 | ) |  | 2,524 |
Additions for tax positions related to prior years (includes currency translation adjustment) |  | 4,014 |  |  | (11 | ) |  | 4,003 |
Other reductions for tax positions related to prior years |  | (147 | ) |  | — |  |  | (147 | )
Statutes of limitation expirations |  | (8,521 | ) |  | 224 |  |  | (8,297 | )
Settlements |  | (361 | ) |  | 18 |  |  | (343 | )
Balance at December 31, 2011 |  | $ | 33,408 |  |  | $ | (517 | ) |  | $ | 32,891 |
Additions for tax positions related to the current year (includes currency translation adjustment) |  | 584 |  |  | (8 | ) |  | 576 |
Additions for tax positions related to prior years (includes currency translation adjustment) |  | 37 |  |  | 2 |  |  | 39 |
Other reductions for tax positions related to prior years |  | (3,987 | ) |  | — |  |  | (3,987 | )
Statutes of limitation expirations |  | (5,124 | ) |  | 154 |  |  | (4,970 | )
Settlements |  | — |  |  | — |  |  | — |
Total unrecognized income tax benefits that, if recognized, would impact the effective income tax rate at December 31, 2012 |  | $ | 24,918 |  |  | $ | (369 | ) |  | $ | 24,549 |
Included in the additions for tax positions related to the current year for 2012 is approximately $0.2 million of unrecognized tax benefits that created additional operating losses in a foreign jurisdiction. To the extent the unrecognized tax benefit is recognized, a full valuation allowance would be recorded against these operating losses. Included in the other reductions for tax positions related to prior years for 2012 is $4.0 million of previously unrecognized tax benefits, which were recognized in 2012 as a result of changes in legislation in a foreign jurisdiction. These benefits were previously deemed to not meet the more likely than not standard. Within the next twelve months, it is reasonably possible that up to $3.8 million of unrecognized income tax benefits will be recognized upon settlement of tax examinations and the expiration of various statutes of limitations The Company files its income tax returns as prescribed by the tax laws of the jurisdictions in which it operates. With few exceptions, the Company is no longer subject to U.S. and international examinations by tax authorities for the years through 2006.

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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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