Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Earnings (Loss) from Operations Before Income Taxes

Income taxes have been based on the following components of earnings (loss) from operations before income taxes for the years ended December 31, 2012, 2011 and 2010:

	2012			2011			2010
U.S.	$	(710.1	)	$	(274.5	)	$	171.0
Foreign		70.1			37.1			152.0
Total	$	(640.0	)	$	(237.4	)	$	323.0

Components of Income Tax Expense (Benefit) from Operations

The components of income tax expense (benefit) from operations for the years ended December 31, 2012, 2011 and 2010 were as follows:

	2012			2011			2010
Federal:
Current	$	8.6		$	(10.1	)	$	100.1
Deferred		(55.5	)		(82.1	)		(1.7	)
State:
Current		10.5			(19.5	)		(1.2	)
Deferred		(18.3	)		(21.5	)		(10.3	)
Foreign:
Current		46.5			36.3			41.6
Deferred		21.8			(19.4	)		(22.6	)
Total	$	13.6		$	(116.3	)	$	105.9

Reconciliation of Differences Between Federal Statutory and Effective Income Tax Rate

The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s effective income tax rate:

	2012			2011			2010
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Adjustment of uncertain tax positions		3.1			30.2			(4.0	)
Foreign tax rate differential		3.2			15.5			(6.1	)
Adjustment of interest on uncertain tax positions		0.6			10.1			0.6
Domestic manufacturing deduction		0.5			2.2			(2.6	)
Acquisition-related expenses		(0.1	)		(0.1	)		1.2
Change in valuation allowances		(4.4	)		(1.0	)		(4.4	)
State and local income taxes, net of U.S. federal income tax benefit		—			(1.6	)		(0.2	)
Restructuring and impairment charges		(40.1	)		(39.5	)		8.3
International reorganization		3.9			—			—
Foreign withholding tax		(1.7	)		—			2.2
Enactment of Health Care Reform Act		—			—			1.0
Other		(2.1	)		(1.8	)		1.8
Effective income tax rate		(2.1	%)		49.0	%		32.8	%

Significant Deferred Tax Assets and Liabilities

The significant deferred tax assets and liabilities at December 31, 2012 and 2011 were as follows:

	2012			2011
Deferred tax assets:
Pension and other postretirement benefit plan liabilities	$	524.1		$	489.3
Net operating losses and other tax carryforwards		331.6			339.3
Accrued liabilities		155.2			178.5
Other		99.4			81.8
Total deferred tax assets		1,110.3			1,088.9
Valuation allowances		(273.6	)		(273.2	)
Net deferred tax assets	$	836.7		$	815.7
Deferred tax liabilities:
Accelerated depreciation	$	(226.3	)	$	(257.7	)
Other intangible assets		(98.6	)		(212.5	)
Inventories		(30.7	)		(47.1	)
Other		(30.2	)		(22.5	)
Total deferred tax liabilities		(385.8	)		(539.8	)
Net deferred tax assets	$	450.9		$	275.9

Transactions Affecting Valuation Allowance On Deferred Tax Assets

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2012, 2011 and 2010 were as follows:

	2012			2011			2010
Balance, beginning of year	$	273.2		$	259.5		$	277.5
Current year expense (benefit)—net		28.2			2.4			(9.6	)
Write-offs		(37.9	)		(1.8	)		(9.4	)
Foreign exchange and other		10.1			13.1			1.0
Balance, end of year	$	273.6		$	273.2		$	259.5

Unrecognized Tax Benefits

Changes in the Company’s unrecognized tax benefits at December 31, 2012, 2011 and 2010 were as follows:

	2012			2011			2010
Balance at beginning of year	$	76.4		$	157.1		$	176.4
Additions for tax positions of the current year		6.3			6.1			10.2
Additions for tax positions of prior years		3.9			6.0			9.5
Reductions for tax positions of prior years		(29.6	)		(26.9	)		(18.1	)
Settlements during the year		(5.6	)		(3.3	)		(9.6	)
Lapses of applicable statutes of limitations		(3.5	)		(62.3	)		(13.6	)
Foreign exchange and other		—			(0.3	)		2.3
Balance at end of year	$	47.9		$	76.4		$	157.1