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Income Taxes | 9 Months Ended
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Sep. 30, 2013
Income Taxes | Note 13 —Income taxes:
| Three months ended September 30, |  |  | Nine months ended September 30, |
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| 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |
| (In millions) |
Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35% | $ |  | 9.5 |  |  | $ |  | (21.0 | ) |  | $ |  | 104.8 |  |  | $ |  | (72.0 | )
Incremental tax (benefit) on earnings of non-U.S. companies |  | (12.8 | ) |  |  | 1.3 |  |  |  | (7.1 | ) |  |  | (3.4 | )
Non-U.S. tax rates |  | (.7 | ) |  |  | .8 |  |  |  | (12.4 | ) |  |  | 3.3 |
Adjustment to the reserve for uncertain tax positions, net |  | .3 |  |  |  | .6 |  |  |  | 1.7 |  |  |  | 2.3 |
Nondeductible expenses |  | .8 |  |  |  | .5 |  |  |  | 3.0 |  |  |  | 3.1 |
U.S. state income taxes and other, net |  | (.1 | ) |  |  | (1.1 | ) |  |  | (.3 | ) |  |  | (1.3 | )
Income tax expense (benefit) | $ |  | (3.0 | ) |  | $ |  | (18.9 | ) |  | $ |  | 89.7 |  |  | $ |  | (68.0 | )
| Three months ended September 30, |  |  | Nine months ended September 30, |
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| 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |
| (In millions) |
Comprehensive provision for income taxes (benefit) allocable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations | $ |  | (3.0 | ) |  | $ |  | (18.9 | ) |  | $ |  | 89.7 |  |  | $ |  | (68.0 | )
Discontinued operations |  | .9 |  |  |  | — |  |  |  | 2.4 |  |  |  | — |
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marketable securities |  | 3.2 |  |  |  | 6.3 |  |  |  | (12.8 | ) |  |  | 7.5 |
Currency translation |  | 4.4 |  |  |  | 4.1 |  |  |  | 2.7 |  |  |  | 2.8 |
Pension plans |  | .8 |  |  |  | 1.2 |  |  |  | 2.5 |  |  |  | 3.6 |
OPEB plans |  | (.2 | ) |  |  | (.2 | ) |  |  | (.5 | ) |  |  | (.5 | )
Total | $ |  | 6.1 |  |  | $ |  | (7.5 | ) |  | $ |  | 84.0 |  |  | $ |  | (54.6 | )
Our income tax benefit in the third quarter of 2012 includes an incremental tax benefit of $11.1 million as we determined in the third quarter 2012 that due to global changes in our business, we would not remit certain dividends from our Chemicals Segment’s non-U.S. jurisdictions. As a result, certain tax attributes were available for carryback to offset prior year tax expense. In the third quarter of 2012, France enacted certain changes in their income tax laws, including a 3% nondeductible surtax on all dividend distributions which is assessed at the time of the distribution against the company making such distribution. Consequently, our Chemicals Segment’s French subsidiary will be required to pay an additional 3% tax on all future dividend distributions. Our undistributed earnings in France are deemed to be permanently reinvested and such tax will be recognized as part of our income tax expense in the period during which the dividend is declared and will be remitted to the French government in accordance with the applicable tax law. During the third quarter of 2012, our Chemicals Segment’s French subsidiary distributed a $1.8 million dividend. There have been no dividend distributions from our Chemicals Segment’s French subsidiary during 2013. At September 30, 2013, our French subsidiary has undistributed earnings of approximately $10.9 million that, if distributed, would be subject to the 3% surtax. Tax authorities are examining cert ain of our U.S. and non-U.S. tax returns and have or may propose tax deficiencies, including penalties and interest. Because of the inherent uncertainties involved in settlement initiatives and court and tax proceedings, we cannot guarantee that these matters will be resolved in our favor, and therefore our potential exposure, if any, is also uncertain. In 2011 and 2012, Kronos received notices of re-assessment from the Canadian federal and provincial tax authorities related to the years 2002 through 2004. We object to the re-assessments and believe the position is without merit. Accordingly, we are appealing the re-assessments and in connection with such appeal we were required to post letters of credit aggregating Cdn. $7.5 million (see Note 10). If the full amount of the proposed adjustment were ultimately to be assessed against us, the cash tax liability would be approximately $15.7 million. We believe we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity. We currently estimate that our unrecognized tax benefits may change by $4.4 million during the next twelve months related to certain adjustments to our prior year returns and the expiration of certain statutes of limitations.

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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 Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 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=26873400&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 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: 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 6: 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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