Note 8 - Income taxes:

	Three months ended September 30,							Nine months ended September 30,
	2012			2013				2012				2013
	(In millions)
Expected tax expense (benefit), at U.S. Federal statutory income tax rate of 35%	$	11.9		$	(15.3	)	$		118.3		$		(54.7	)
Non-U.S. tax rates		(.8	)		.7				(12.5	)			3.2
Incremental tax (benefit) on earnings (losses) of non-U.S. companies		(12.8	)		1.3				(7.1	)			(3.4	)
U.S. State income taxes and other, net		.3			(.3	)			2.6				3.6
Total	$	(1.4	)	$	(13.6	)	$		101.3		$		(51.3	)
Comprehensive provision for income taxes (benefit) allocable to:
Net income (loss)	$	(1.4	)	$	(13.6	)	$		101.3		$		(51.3	)
Other comprehensive income (loss):
Marketable securities		2.1			3.8				(7.9	)			4.5
Currency translation		4.4			4.1				2.7				2.8
Pension plans		.7			1.1				2.2				3.3
OPEB plans		—			—				(.1	)			(.1	)
Total	$	5.8		$	(4.6	)	$		98.2		$		(40.8	)

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 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 tax is assessed at the time of the distribution against the company making such distribution. Consequently, our 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 French subsidiary distributed a $1.8 million dividend. Distributions from our French subsidiary in 2013 are nil. 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 certain 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, we 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 7). 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 $3 million during the next twelve months related to certain adjustments to our prior year returns.