Income taxes (Tables)

12 Months Ended

Dec. 31, 2012

Component of Income Taxes

	Years ended December 31,
	2010			2011			2012
	(In millions)
Pre-tax income (loss) from continuing operations:
United States	$	(.8	)	$	51.6		$	89.0
Non-U.S. subsidiaries		79.6			409.2			212.4
Total	$	78.8		$	460.8		$	301.4
Expected tax expense, at U.S. federal statutory income tax rate of 35%	$	27.6		$	161.3		$	105.4
Non-U.S. tax rates		(3.8	)		(17.1	)		(11.9	)
Incremental U.S. tax on earnings of non-U.S. companies		18.3			28.8			1.0
German tax attribute adjustments		(35.2	)		—			—
U.S. state income taxes, net		3.1			4.0			1.3
Adjustment to the reserve for uncertain tax positions, net		5.2			(8.5	)		4.2
Change in valuation allowance		(.1	)		(.7	)		(1.1	)
Nondeductible expenses		2.5			3.7			4.3
Tax rate changes		(1.5	)		(.1	)		1.9
French dividend surtax		—			—			.3
Other, net		(1.6	)		(1.5	)		(.6	)
Provision for income taxes	$	14.5		$	169.9		$	104.8
Components of income tax expense (benefit):
Currently payable (refundable):
U.S. federal and state	$	3.6		$	8.0		$	.9
Non-U.S.		16.2			78.7			42.6
Total		19.8			86.7			43.5
Deferred income taxes:
U.S. federal and state		19.0			28.6			34.5
Non-U.S.		(24.3	)		54.6			26.8
Total		(5.3	)		83.2			61.3
Provision for income taxes	$	14.5		$	169.9		$	104.8
Comprehensive provision for income taxes (benefit) allocable to:
Income from continuing operations	$	14.5		$	169.9		$	104.8
Income from discontinued operations		4.0			5.0			5.4
Other comprehensive income:
Marketable securities		6.0			7.7			(11.6	)
Currency translation		(.2	)		—			4.9
Pension plans		(.5	)		(6.5	)		(18.3	)
OPEB plans		2.1			(1.0	)		(.7	)
Total	$	25.9		$	175.1		$	84.5

Components of Net Deferred Tax Liability

The components of the net deferred tax liability at December 31, 2011 and 2012 are summarized below.

	December 31,
	2011						2012
	Assets			Liabilities			Assets			Liabilities
	(In millions)
Tax effect of temporary differences related to:
Inventories	$	8.4		$	(6.6	)	$	3.6		$	(10.3	)
Marketable securities		2.2			(142.4	)		—			(164.8	)
Property and equipment		—			(89.3	)		—			(104.5	)
Accrued OPEB costs		6.8			—			6.9			—
Accrued pension costs		16.8			—			33.3			—
Accrued environmental liabilities and other deductible differences		38.8			—			43.1			—
Other taxable differences		—			(25.3	)		—			(30.3	)
Investments in subsidiaries and affiliates		—			(258.2	)		—			(258.3	)
Tax on unremitted earnings of non-U.S. subsidiaries		—			(22.0	)		—			(7.6	)
Tax loss and tax credit carryforwards		160.0			—			153.0			—
Valuation allowance		(1.3	)		—			(.2	)		—
Adjusted gross deferred tax assets (liabilities)		231.7			(543.8	)		239.7			(575.8	)
Netting of items by tax jurisdiction		(80.2	)		80.2			(109.8	)		109.8
		151.5			(463.6	)		129.9			(466.0	)
Less net current deferred tax asset (liability)		18.8			(6.4	)		9.6			(11.2	)
Net noncurrent deferred tax asset (liability)	$	132.7		$	(457.2	)	$	120.3		$	(454.8	)

Changes in Uncertain Tax Positions

	Years ended December 31,
		2010			2011			2012
		(In millions)
Unrecognized tax benefits:
Amount beginning of year		$	31.8		$	37.4		$	23.0
Net increase:
Tax positions taken in prior periods			.3			.5			1.1
Tax positions taken in current period			5.4			6.0			11.0
Settlements with taxing authorities—cash paid			—			—			(.1	)
Lapse due to applicable statute of Limitations			(.5	)		(20.6	)		(1.8	)
Changes in currency exchange rates			.4			(.3	)		.2
Amount at end of year		$	37.4		$	23.0		$	33.4