Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The components of income before income tax expense for 2011, 2010 and 2009 are as follows (in thousands):

	2011		2010		2009
United States	$	115,413	$	86,985	$	69,444
Other countries	123,429		122,163		101,815
Operating income before income tax expense	$	238,842	$	209,148	$	171,259

The components of income tax expense for 2011, 2010 and 2009 are as follows (in thousands):

	2011			2010			2009
Current:
United States	$	43,632		$	38,704		$	10,110
Other countries	11,515			30,357			18,628
State and provincial	5,600			4,821			2,790
	60,747			73,882			31,528
Deferred:
United States	(8,905		)	(9,699		)	23,031
Other countries	2,892			100			1,441
State and provincial	(536		)	(536		)	1,164
Total deferred	(6,549		)	(10,135		)	25,636
Income tax expense	$	54,198		$	63,747		$	57,164

The differences in income tax expense computed using The Netherlands statutory income tax rate of 25.0%, 25.5% and 25.5% in 2011, 2010 and 2009, respectively, and our income tax expense as reported in the accompanying Consolidated Statements of Operations for 2011, 2010 and 2009 are as follows (in thousands):

	2011			2010			2009
Tax at The Netherlands income tax rate	$	59,711		$	53,333		$	43,671
Reserve for pending audit settlement	—			—			(4,468		)
International earnings taxed at rates other than The Netherlands statutory rate	(241		)	3,698			8,618
Non-deductible expenses	2,691			2,524			3,366
Change in valuation allowance	(1,279		)	75			1,564
State and provincial taxes	3,166			2,597			3,954
Adjustments of prior year taxes	(17,229		)	(389		)	(297		)
Adjustments of income tax reserves	7,050			4,093			3,402
Other	329			(2,184		)	(2,646		)
Income tax expense	$	54,198		$	63,747		$	57,164

Included in Adjustments of prior year taxes is the reversal of $10.4 million in tax liabilities provided over the period 2007-2010 as a result of recently concluded audits of prior year returns.  The remainder reflects adjustments to true-up the tax accrual for prior year taxes with the tax liability reported in the filed tax returns.

Deferred tax assets and liabilities result from various temporary differences between the financial statement carrying amount and their tax basis. Deferred tax assets and liabilities as of December 31, 2011 and 2010 are summarized as follows (in thousands):

	2011			2010
Deferred tax assets:
Net operating loss carry-forwards	$	7,143		$	9,518
Tax credit carry-forwards	5,483			7,571
Reserves	9,804			11,429
Property, plant and equipment	—			3,611
Unrealized benefit plan loss	1,200			1,445
Other	9,857			951
	33,487			34,525
Valuation allowance	(9,342		)	(10,739		)
Net deferred tax asset	24,145			23,786
Deferred tax liabilities:
Intangibles	(2,174		)	(197		)
Property, plant and equipment	(3,203		)	—
Exchangeable debt	—			(16,652		)
Other	(4,830		)	452
Total deferred tax liabilities	(10,207		)	(16,397		)
Net deferred income taxes	$	13,938		$	7,389
	2011			2010
Current deferred tax assets	$	10,483		$	10,508
Current deferred tax liabilities	(4,676		)	(921		)
Long-term deferred tax assets	13,662			13,278
Long-term deferred tax liabilities	(5,531		)	(15,476		)
Total deferred tax assets (liabilities)	$	13,938		$	7,389

At December 31, 2011, we had tax net operating loss carry-forwards in various tax jurisdictions of approximately $29.4 million. Although we cannot be certain that these operating loss carry-forwards will be utilized, we anticipate that we will have sufficient taxable income in future years to allow us to fully utilize the carry-forwards that are not subject to a valuation allowance as of December 31, 2011. If unused, those carry-forwards which are subject to expiration may expire during the years 2012 through 2021. At December 31, 2011, we maintained a valuation allowance of $7.1 million on our net operating loss carry-forwards. During 2011, $0.5 million of operating loss carry-forwards which carried a full valuation allowance expired unused.

Our Exchangeable Notes fully matured and were settled in 2011 which resulted in a reversal of the related deferred tax liability that was established for the difference between the book and tax basis of the Exchangeable Notes.

We file income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. We are currently undergoing multiple examinations in various jurisdictions, and the years 1999 through 2010 remain open for examination in various tax jurisdictions in which we operate.

During 2011, payments were made to certain tax jurisdictions, resulting in a reduction to the unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2011			2010			2009
Unrecognized tax benefits at January 1,	$	9,986		$	8,324		$	5,974
Tax positions, current period	1,512			1,149			4,668
Tax positions, prior period	4,959			2,181			—
Settlements with taxing authorities	—			(555		)	(1,449		)
Lapse of applicable statute of limitations	(2,430		)	(1,113		)	(869		)
Unrecognized tax benefits at December 31,	$	14,027		$	9,986		$	8,324

Changes in our estimate of unrecognized tax benefits would affect our effective tax rate. The amounts included in the table above for settlements with tax authorities primarily represent cash payments.

Our policy is to record accrued interest and penalties on uncertain tax positions, net of any tax effect, as part of total tax expense for the period. The corresponding liability is carried along with the tax exposure as a non-current payable in Other Long-term Liabilities. For the years ended December 31, 2011, 2010 and 2009, we had approximately $3.0 million, $2.9 million and $3.2 million, respectively, accrued for the payment of interest and penalties.

During 2011, we recognized tax benefits of $2.6 million relating to tax deductions in excess of book expense for stock-based compensation awards. These tax benefits are recorded to Additional Paid-in Capital to the extent deductions reduce current taxable income as we are able to realize the tax benefits.