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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

The provision for income taxes was as follows:

(in thousands)	2012		2011			2010
Currently payable:
Federal	$	22,394	$	28,480		$	11,476
State		3,024		2,845			1,939
Foreign		22,065		22,713			24,949
		47,483		54,038			38,364
Deferred (benefit) expense:
Federal		170		(5,669	)		7,320
State		603		(274	)		404
Foreign		2,143		2,805			961
		2,916		(3,138	)		8,685
Income taxes	$	50,399	$	50,900		$	47,049

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)	2012			2011
Deferred tax assets:
Benefit plans	$	17,375		$	15,597
Liabilities and reserves		9,140			9,482
Operating loss and credit carryovers		48,441			32,397
Other		16,096			16,084
Gross deferred tax assets		91,052			73,560
Valuation allowance		(41,049	)		(34,863	)
Deferred tax assets		50,003			38,697
Deferred tax liabilities:
Property, plant and equipment		(19,430	)		(18,565	)
Other assets		(2,784	)		(1,999	)
Other		(26,668	)		(25,182	)
Deferred tax liabilities		(48,882	)		(45,746	)
Net deferred tax assets (liabilities)	$	1,121		$	(7,049	)

Effective income tax rate reconciliation

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

	2012			2011			2010
Taxes at statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		1.5			1.0			1.1
Tax credits		—			(0.2	)		(0.3	)
Taxes on foreign earnings		(4.1	)		(2.5	)		(3.7	)
Resolution of prior years' tax matters		(1.4	)		(0.6	)		(1.5	)
Valuation allowance adjustments		(0.5	)		(0.6	)		—
Revaluation of previously held interest		—			(0.7	)		—
Other, net		(1.6	)		(1.7	)		(0.1	)
Effective tax rate		28.9	%		29.7	%		30.5	%

Earnings before income taxes

Earnings before income taxes were as follows:

(in thousands)	2012		2011		2010
United States	$	79,118	$	70,023	$	56,150
Foreign		95,189		101,361		98,043
Total	$	174,307	$	171,384	$	154,193

Reconciliation of the change in liability for unrecognized tax benefits

A reconciliation of the change in the liability for unrecognized tax benefits for 2012 and 2011 is as follows:

(in thousands)	2012			2011
Balance at beginning of year	$	8,787		$	9,423
Increases for tax positions taken in the current year		599			694
Increases for tax positions taken in prior years		553			365
Decreases for tax positions taken in prior years		—			(147	)
Decreases related to settlements with tax authorities		(1,678	)		(206	)
Decreases as a result of lapse of the applicable statutes of limitations		(1,362	)		(1,077	)
Foreign currency exchange rate changes		192			(265	)
Balance at the end of year	$	7,091		$	8,787

- 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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