(8) Income Taxes

The significant components of the Company's deferred income tax liabilities and assets are as follows:

	December 31,

	2012			2011
	(in millions)
Deferred income tax liabilities:
Excess tax over book depreciation	$	22.7		$	20.6
Intangibles		31.8			33.6
Other		15.7			14.1

Total deferred tax liabilities		70.2			68.3
Deferred income tax assets:
Accrued expenses		16.7			17.9
Net operating loss carry-forward		5.5			6.5
Inventory reserves		8.7			8.1
Pension—accumulated other comprehensive income		15.8			12.0
Other		14.8			15.2

Total deferred tax assets		61.5			59.7
Less: valuation allowance		(10.1	)		(9.1	)

Net deferred tax assets		51.4			50.6

Net deferred tax liabilities	$	(18.8	)	$	(17.7	)

The provision for income taxes from continuing operations is based on the following pre-tax income:

	Years Ended December 31,

	2012		2011		2010
	(in millions)
Domestic	$	27.3	$	39.6	$	43.5
Foreign		73.0		51.5		51.0

	$	100.3	$	91.1	$	94.5

The provision for income taxes from continuing operations consists of the following:

	Years Ended December 31,

	2012			2011			2010
	(in millions)
Current tax expense:
Federal	$	5.0		$	6.9		$	12.0
Foreign		21.4			18.6			20.5
State		1.3			1.8			2.9

		27.7			27.3			35.4

Deferred tax expense (benefit):
Federal		4.4			5.5			1.6
Foreign		(3.5	)		(7.3	)		(5.9	)
State		1.1			1.2			0.3

		2.0			(0.6	)		(4.0	)

	$	29.7		$	26.7		$	31.4

Actual income taxes reported from continuing operations are different than would have been computed by applying the federal statutory tax rate to income from continuing operations before income taxes. The reasons for this difference are as follows:

	Years Ended December 31,

	2012			2011			2010
	(in millions)
Computed expected federal income expense	$	35.1		$	31.9		$	33.0
State income taxes, net of federal tax benefit		1.5			1.9			2.1
Foreign tax rate differential		(7.6	)		(2.6	)		(3.3	)
China tax clawback		—			(4.2	)		—
Other, net		0.7			(0.3	)		(0.4	)

	$	29.7		$	26.7		$	31.4

At December 31, 2012, the Company had foreign net operating loss carry forwards of $21.2 million for income tax purposes; $7.4 million of the losses can be carried forward indefinitely, $1.1 million of the losses expire in 2017, and $12.7 million expire in 2020. The net operating losses consist of $5.0 million related to Austrian operations, $2.4 million to Italian operations, $13.2 million to Dutch operations, and $0.6 million related to Chinese operations.

At December 31, 2012 and December 31, 2011, the Company had a valuation allowance of $10.1 million and $9.1 million, respectively, all of which relates to U.S. capital losses. Management believes that the ability of the Company to use such losses within the applicable carry forward period does not rise to the level of the more likely than not threshold. The Company does not have a valuation allowance with respect to other deferred tax assets, as management believes that it is more likely than not that the Company will recover such deferred tax assets.

Changes enacted in income tax laws had no material effect on the Company in 2012, 2011 or 2010.

Undistributed earnings of the Company's foreign subsidiaries amounted to approximately $329.7 million at December 31, 2012, $282.2 million at December 31, 2011, and $313.0 million at December 31, 2010. Those earnings are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal and state income taxes has been recorded thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Company will be subject to withholding taxes payable to the various foreign countries. Determination of the amount of U.S. income tax liability that would be incurred is not practicable because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits may be available to reduce some portion of any U.S. income tax liability. Withholding taxes of approximately $9.8 million would be payable upon remittance of all previously unremitted earnings at December 31, 2012.