Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of earnings from continuing operations

The components of income (loss) from continuing operations before income taxes, categorized based on the location of the taxing authorities, were as follows:

	Successor									Predecessor
	Years Ended December 31,						Period from February 26 to December 31,			Period from January 1 to February 26,
(In thousands)	2012			2011			2010			2010
United States	$	(181,955	)	$	(16,214	)	$	(140,719	)	$	49,214
Foreign		2,862			9,625			5,028			(1,062	)
Total	$	(179,093	)	$	(6,589	)	$	(135,691	)	$	48,152

Income tax provisions (benefits)

The income tax provisions (benefits) are as follows:

	Successor									Predecessor
	Years Ended December 31,						Period from February 26 to December 31,			Period from January 1 to February 26,
(In thousands)	2012			2011			2010			2010
Current:
Federal	$	313		$	215		$	(600	)	$	—
State		400			(9	)		292			—
Foreign		1,433			2,907			626			—
		2,146			3,113			318			—
Deferred:
Federal		(43,749	)		(5,035	)		(5,701	)		(12,233	)
State		(19	)		(5,878	)		(2,700	)		(2,084	)
Foreign		(2,232	)		(195	)		430			—
Valuation allowance		42,197			15,756			5,446			12,386
		(3,803	)		4,648			(2,525	)		(1,931	)
Total provision (benefit)	$	(1,657	)	$	7,761		$	(2,207	)	$	(1,931	)

Reconciliation of the U.S. statutory tax rate to effective tax rate

A reconciliation of the U.S. statutory tax rate to our effective tax rate (benefit) is as follows:

	Successor									Predecessor
	Years Ended December 31,						Period from February 26 to December 31,			Period from January 1 to February 26,
	2012			2011			2010			2010
Statutory tax rate		(35.0	)%		(35.0	)%		(35.0	)%		35.0	%
State and local income taxes		0.2			(89.3	)		(2.0	)		(4.3	)
Incremental foreign tax (benefit)		(0.1	)		(10.6	)		(0.6	)		0.8
Change in valuation allowance		23.6			239.1			4.1			25.3
Goodwill impairment		12.3			—			—			—
Change in liability for unrecognized tax benefits		(0.5	)		14.3			(0.4	)		—
Reorganization costs		—			—			28.3			(61.9	)
Inducement expense		—			—			21.1			—
Mark to market valuation of convertible debt		—			—			(19.5	)		—
Other items—net		(1.4	)		(0.7	)		2.4			1.1
Effective tax rate		(0.9	)%		117.8	%		(1.6	)%		(4.0	)%

Deferred income tax assets and liabilities

Deferred income tax assets and liabilities comprised the following at December 31:

(In thousands)	2012			2011
Deferred tax assets:
Postretirement and postemployment benefits	$	27,208		$	27,138
Accrued liabilities, reserves and other		10,219			3,241
Debt transaction and refinancing costs		2,498			1,985
Inventories		2,340			1,531
Accrued compensation and benefits		3,008			4,854
Worker's compensation		1,999			1,923
Pension benefit		18,108			21,361
State income taxes		1,442			1,442
Tax credits		3,728			1,335
Indirect effect of unrecognized tax benefits		2,243			1,333
Loss carryforwards		74,357			63,364
Valuation allowance		(101,248	)		(55,355	)
Total deferred tax assets		45,902			74,152
Deferred tax liabilities:
Asset basis and depreciation		(9,475	)		(21,041	)
Intangible assets		(45,805	)		(66,437	)
Total deferred tax liabilities		(55,280	)		(87,478	)
Net deferred tax liability		(9,378	)		(13,326	)
Current deferred tax asset		4,591			7,675
Long-term deferred tax asset		5,052			—
Long-term deferred income tax asset (liability)—net	$	(19,021	)	$	(21,001	)

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits are as follows:

	Successor									Predecessor
	Years Ended December 31,						Period from February 26 to December 31,			Period from January 1 to February 26,
(In thousands)	2012			2011			2010			2010
Balance at beginning of the period	$	7,033		$	6,184		$	7,060		$	7,060
Additions based on tax positions related to the current year		4			161			489			—
Additions for tax positions of prior years					818			93			—
Reductions for tax positions of prior years		(800	)		—			—			—
Removal of penalties and interest		—			—			—			—
Reductions due to lapse of statute of limitations		(1,597	)		(130	)		(1,458	)		—
Settlements with taxing authorities		—			—			—			—
Balance at end of period	$	4,640		$	7,033		$	6,184		$	7,060