Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Continuing Operations Provision For Income Taxes


Year ended December 31 (millions)		2011		2010		2009
Income (loss) from continuing operations before income taxes
United States	$	(20.4)	$	37.4	$	25.9
Foreign		226.4		185.5		192.3
Total income from continuing operations before income taxes	$	206.0	$	222.9	$	218.2
Continuing operations provision for income taxes
Current
United States	$	2.8	$	8.7	$	(6.7)
Foreign		43.8		75.4		45.8
State and local		.2		.3		(.4)
Total		46.8		84.4		38.7
Deferred
Foreign		18.0		(25.6)		3.6
Total continuing operations provision for income taxes	$	64.8	$	58.8	$	42.3

Reconciliation Of Provision For Income Taxes Attributable To Continuing Operations


Year ended December 31 (millions)		2011		2010		2009
United States statutory income tax provision	$	72.1	$	78.0	$	76.4
Income and losses for which no provision or benefit has been recognized		21.8		(3.0)		(7.8)
Foreign rate differential and other foreign tax expense		(9.9)		(32.0)		(6.1)
Income tax withholdings		9.8		13.1		8.8
Permanent items		4.2		4.3		5.0
Foreign currency devaluation		–		5.7		–
Enacted rate changes		8.4		4.1		2.0
Change in uncertain tax positions		6.1		1.0		4.0
Change in valuation allowances due to changes in judgment		(15.2)		(13.2)		(28.7)
Income tax credits, U.S.		(4.2)		.4		(11.1)
Tax audit matters		(28.3)		.1		–
Other		–		.3		(.2)
Continuing operations provision for income taxes	$	64.8	$	58.8	$	42.3

Significant Portions Of Deferred Tax Assets And Liabilities


December 31 (millions)		2011		2010
Deferred tax assets
Tax loss carryforwards	$	800.6	$	750.0
Postretirement benefits		787.1		529.4
Foreign tax credit carryforwards		553.3		479.4
Capitalized research and development		267.4		304.1
Other tax credit carryforwards		144.2		164.2
Deferred revenue		91.0		107.1
Employee benefits and compensation		54.3		53.5
Purchased capitalized software		46.0		45.8
Depreciation		38.6		60.2
Warranty, bad debts and other reserves		18.4		23.5
Capitalized costs		17.3		18.2
Debt related		8.8		38.2
Capitalized intellectual property rights		–		28.4
Other		22.9		39.8
		2,849.9		2,641.8
Valuation allowance		(2,648.5)		(2,426.4)
Total deferred tax assets	$	201.4	$	215.4
Deferred tax liabilities
Other	$	27.1	$	30.0
Total deferred tax liabilities	$	27.1	$	30.0
Net deferred tax assets	$	174.3	$	185.4

Reconciliation Of Changes In Unrecognized Tax Benefits


Year ended December 31 (millions)	2011		2010
Balance at January 1	$	19.5	$	4.0
Additions based on tax positions related to the current year		6.0		13.9
Additions for tax positions of prior years		–		2.3
Reductions for tax positions of prior years		–		(.2)
Reductions as a result of a lapse of applicable statute of limitations		–		(.1)
Settlements		(1.2)		(.4)
Balance at December 31	$	24.3	$	19.5

- 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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