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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits is as follows:

($ in millions)	2011			2010
Balance at January 1	$	5.0		$	5.6
Additions for tax positions taken in the current year		1.3			0.6
Additions for tax positions of prior years		0.7			1.1
Reduction for expiration of statute of limitations/audits		(0.7	)		(2.3	)
Balance at December 31	$	6.3		$	5.0

Components of income before taxes

The components of income before income taxes are:

($ in millions)	2011		2010		2009
U.S. operations	$	15.8	$	7.2	$	6.5
International operations		76.9		67.3		76.6
Total income before income taxes	$	92.7	$	74.5	$	83.1

Income tax provision components, by jurisdiction

The related provision for income taxes consists of:

($ in millions)	2011		2010			2009
Current:
Federal	$	-	$	0.6		$	0.3
State		-		0.2			0.1
International		20.6		14.6			17.9
Current income tax provision		20.6		15.4			18.3
Deferred:
Federal and state		2.7		(0.5	)		(5.1	)
International		0.2		(1.3	)		0.3
Deferred income tax provision		2.9		(1.8	)		(4.8	)
Income tax expense	$	23.5	$	13.6		$	13.5

Components of deferred tax assets and liabilities

The significant components of our deferred tax assets and liabilities at December 31 are:

($ in millions)	2011			2010
Deferred tax assets
Net operating loss carryforwards	$	21.7		$	28.1
Tax credit carryforwards		42.5			33.3
Restructuring and impairment charges		1.7			5.5
Capital loss carryforwards		-			1.4
Pension and deferred compensation		62.3			48.6
Other		9.3			8.7
Valuation allowance		(19.3	)		(24.9	)
Total deferred tax assets		118.2			100.7
Deferred tax liabilities:
Accelerated depreciation		41.2			39.5
Other		6.5			7.1
Total deferred tax liabilities		47.7			46.6
Net deferred tax asset	$	70.5		$	54.1

Federal tax rate reconciliation

A reconciliation of the U.S. federal corporate tax rate to our effective consolidated tax rate on income before income taxes follows:

	2011			2010			2009
U.S. federal corporate tax rate		35.0	%		35.0	%		35.0	%
Tax on international operations less than U.S. tax rate		(8.9	)		(11.0	)		(7.6	)
Non-benefited losses		-			1.4			2.0
Reversal of prior valuation allowance		(0.1	)		(0.2	)		(1.2	)
Reversal of reserves for unrecognized tax benefits		-			(3.0	)		(3.4	)
U.S. tax on international earnings, net of foreign tax credits		(1.5	)		(2.2	)		(3.2	)
State income taxes, net of federal tax effect		0.7			(1.6	)		(1.1	)
General business credits and Section 199 Deduction		(2.4	)		(1.5	)		(5.4	)
Other		2.5			1.4			1.1
Effective tax rate		25.3	%		18.3	%		16.2	%

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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