Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income from Continuing Operations Before Income Taxes and Noncontrolling Interest

Income from continuing operations before income taxes and noncontrolling interest consisted of the following:

In thousands	2011		2010		2009
U.S.	$	36,832	$	217,213	$	111,530
International		74,748		82,934		61,117
Income from continuing operations before taxes and noncontrolling interest	$	111,580	$	300,147	$	172,647

Provision for Income Taxes for Continuing Operations

The provision for income taxes for continuing operations consisted of the following:

In thousands	2011			2010		2009
Currently payable
Federal	$	51,158		$	44,766	$	10,502
State		6,980			6,591		2,456
International		24,005			17,877		13,947
Total current taxes		82,143			69,234		26,905
Deferred
Federal and state		419			26,445		26,733
International		(9,503	)		1,521		2,790
Total deferred taxes		(9,084	)		27,966		29,523
Total provision for income taxes	$	73,059		$	97,200	$	56,428

Reconciliation of U.S. Statutory Income Tax Rate to Effective Tax Rate for Continuing Operations

Reconciliation of the U.S. statutory income tax rate to our effective tax rate for continuing operations follows:

Percentages	2011			2010			2009
U.S. statutory income tax rate		35.0			35.0			35.0
State income taxes, net of federal tax benefit		3.3			2.1			2.6
Tax effect of stock-based compensation		0.4			0.2			0.2
Tax effect of international operations		(9.8	)		(3.8	)		(3.5)
Tax credits		(0.9	)		(0.3	)		(1.4)
Domestic manufacturing deduction		(3.3	)		(1.4	)		(0.4)
ESOP dividend benefit		(0.6	)		(0.2	)		(0.4)
Goodwill		40.4			—			—
All other, net		1.0			0.8			0.6
Effective tax rate on continuing operations		65.5			32.4			32.7

Reconciliation of Beginning and Ending Gross Unrecognized Tax Benefits

Reconciliation of the beginning and ending gross unrecognized tax benefits follows:

In thousands	2011			2010			2009
Gross unrecognized tax benefits — beginning balance	$	24,260		$	29,962		$	28,139
Gross increases for tax positions in prior periods		2,042			286			3,191
Gross decreases for tax positions in prior periods		(192	)		(2,490	)		(2,433)
Gross increases based on tax positions related to the current year		3,201			1,431			1,789
Gross decreases related to settlements with taxing authorities		(2,465	)		(4,182	)		(209)
Reductions due to statute expiration		(377	)		(747	)		(515)
Gross unrecognized tax benefits at December 31	$	26,469		$	24,260		$	29,962

Deferred Taxes

Deferred taxes were classified in the Consolidated Balance Sheets as follows:

In thousands	2011		2010
Deferred tax assets	$	60,899	$	56,349
Other noncurrent assets		—		1,647
Other current liabilities		—		(547)
Deferred tax liabilities		(188,957)		(169,198)
Net deferred tax liability	$	(128,058)	$	(111,749)

Tax Effects of Major Items Recorded as Deferred Tax Assets and Liabilities

The tax effects of the major items recorded as deferred tax assets and liabilities are as follows:

	2011				2010
	Deferred tax				Deferred tax
In thousands	Assets		Liabilities		Assets		Liabilities
Accounts receivable allowances	$	3,726	$	—	$	4,490	$	—
Inventory valuation		18,891		—		17,381		—
Accelerated depreciation/amortization		—		13,270		—		11,436
Accrued product claims and warranties		22,430		—		25,753		—
Employee benefit accruals		129,642		—		110,547		—
Goodwill and other intangibles		—		191,067		—		187,103
Other, net		—		98,410		—		71,381
Total deferred taxes	$	174,689	$	302,747	$	158,171	$	269,920
Net deferred tax liability			$	(128,058)			$	(111,749)