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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

The provision for income taxes was as follows:

(in thousands)	2011			2010		2009
Currently payable:
Federal	$	28,480		$	11,476	$	16,637
State		2,845			1,939		2,711
Foreign		22,713			24,949		21,161
		54,038			38,364		40,509
Deferred (benefit) expense:
Federal		(5,669	)		7,320		(2,287	)
State		(274	)		404		40
Foreign		2,805			961		(1,648	)
		(3,138	)		8,685		(3,895	)
Income taxes	$	50,900		$	47,049	$	36,614

Tax effects of temporary differences - Deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following:

(in thousands)	2011			2010
Deferred tax assets:
Benefit plans	$	15,597		$	12,802
Liabilities and reserves		9,482			10,397
Foreign operating loss carryovers		32,397			39,536
Other		16,084			14,782
Gross deferred tax assets		73,560			77,517
Valuation allowance		(34,863	)		(39,084	)
Deferred tax assets		38,697			38,433
Deferred tax liabilities:
Property, plant and equipment		(18,565	)		(24,298	)
Other assets		(1,999	)		(2,755	)
Other		(25,182	)		(19,820	)
Deferred tax liabilities		(45,746	)		(46,873	)
Net deferred tax liabilities	$	(7,049	)	$	(8,440	)

Effective income tax rate reconciliation

The effective tax rate differed from the statutory federal income tax rate of 35% as described below:

	2011			2010			2009
Taxes at statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		1.0			1.1			1.6
Tax credits		(0.2	)		(0.3	)		(0.3	)
Taxes on foreign earnings		(2.5	)		(3.7	)		(3.6	)
Resolution of prior years' tax matters		(0.6	)		(1.5	)		(2.1	)
Valuation allowance adjustments		(0.6	)		-			(0.4	)
Revaluation of previously held interest		(0.7	)		-			-
Other, net		(1.7	)		(0.1	)		(0.5	)
Effective tax rate		29.7	%		30.5	%		29.7	%

Earnings before income taxes

Earnings before income taxes were as follows:

(in thousands)	2011		2010		2009
United States	$	70,023	$	56,150	$	46,467
Foreign		101,361		98,043		76,708
Total	$	171,384	$	154,193	$	123,175

Reconciliation of the change in liability for unrecognized tax benefits

A reconciliation of the change in the liability for unrecognized tax benefits for 2011 and 2010 is as follows:

(in thousands)	2011			2010
Balance at beginning of year	$	9,423		$	12,213
Increases for tax positions taken in the current year		694			677
Increases for tax positions taken in prior years		365			870
Decreases for tax positions taken in prior years		(147	)		(792	)
Decreases related to settlements with tax authorities		(206	)		(2,276	)
Decreases as a result of lapse of the applicable statutes of limitations		(1,077	)		(846	)
Foreign currency exchange rate changes		(265	)		(423	)
Balance at the end of year	$	8,787		$	9,423

- 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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