Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of domestic and foreign components of income before taxes

The domestic and foreign components of income before taxes are as follows for the years ended December 31, (in millions):

	2012			2011			2010
Domestic	$	(11.6	)	$	(25.3	)	$	(12.5	)
Foreign		149.9			170.8			162.6
	$	138.3		$	145.5		$	150.1

Components of income tax provision

The components of the income tax provision are as follows for the years ended December 31, (in millions):

	2012			2011			2010
Current income tax (benefit) expense:
Federal	$	1.4		$	(0.6	)	$	0.3
State		0.9			0.2			—
Foreign		69.5			56.7			56.6
Total current income tax expense		71.8			56.3			56.9
Deferred income tax (benefit):
Federal		1.2			(3.8	)		0.3
State		—			(0.9	)		—
Foreign		(12.9	)		(0.1	)		(3.9	)
Total deferred income tax (benefit)		(11.7	)		(4.8	)		(3.6	)
Income tax provision	$	60.1		$	51.5		$	53.3

Reconciliation of United States federal statutory rate to effective income tax rate

A reconciliation of the United States federal statutory rate to the effective income tax rate is as follows for the years ended December 31:

	2012			2011			2010
Statutory tax rate		35.0	%		35.0	%		35.0	%
Foreign tax rate differential		(7.2	)		(8.0	)		(5.7	)
Permanent differences		18.7			12.8			13.7
Tax contingencies		3.0			6.1			4.4
Change in tax rates		(0.7	)		0.2			0.1
Withholding taxes		0.3			—			(1.3	)
State income taxes, net of federal benefits		0.3			(0.3	)		0.7
Purchase accounting		0.9			(3.0	)		0.2
Tax Credits		(9.5	)		(5.1	)		(4.1	)
Other		0.1			(1.5	)		(0.5	)
Change in valuation allowance for unbenefitted losses		2.6			(0.8	)		(7.0	)
Effective tax rate		43.5	%		35.4	%		35.5	%

Schedule of tax effect of temporary items that give rise to significant portions of deferred tax assets and liabilities

The tax effect of temporary items that give rise to significant portions of the deferred tax assets and liabilities are as follows as of December 31, (in millions):

	2012			2011
Deferred tax assets:
Accounts receivable	$	1.3		$	—
Accrued expenses		0.8			6.1
Compensation		8.6			8.2
Investments		0.8			4.2
Deferred revenue		2.2			4.4
Net operating loss carryforwards		10.6			15.3
Capital loss carryforwards		—			0.3
Foreign tax and other tax credit carryforwards		15.5			14.8
Foreign statutory reserves		15.0			4.9
Unrealized currency gain/loss		4.8			—
Warranty reserve		3.1			2.9
Other		0.6			1.3
Gross deferred tax assets		63.3			62.4
Less valuation allowance		(39.9	)		(33.7	)
Total deferred tax assets		23.4			28.7
Deferred tax liabilities:
Accounts receivable		0.1			1.0
Fixed assets		2.8			4.0
Foreign statutory reserves		5.8			12.5
Investments		0.3			2.5
Inventory		0.3			0.6
Intangibles		5.8			7.6
Accrued expenses		3.9			3.8
Other		—			3.0
Total deferred tax liabilities		19.0			35.0
Net deferred tax liability	$	4.4		$	(6.3	)

Tabular reconciliation of beginning and ending amount of unrecognized tax benefits

A tabular reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

Gross unrecognized tax benefits at December 31, 2009	$	23.2
Gross increases—tax positions in prior periods		3.1
Gross decreases—tax positions in prior periods		(1.4	)
Gross increases—current period tax positions		2.1
Gross unrecognized tax benefits at December 31, 2010		27.0
Gross increases—tax positions in prior periods		5.5
Gross decreases—tax positions in prior periods		(0.6	)
Gross increases—current period tax positions		3.1
Gross decreases—current period tax positions		(0.4	)
Gross unrecognized tax benefits at December 31, 2011		34.6
Gross increases—tax positions in prior periods		5.9
Gross decreases—tax positions in prior periods		(2.2	)
Gross increases—current period tax positions		12.0
Settlements		(4.6	)
Lapse of statutes		(3.6	)
Gross unrecognized tax benefits at December 31, 2012	$	42.1