Income Taxes (Benefit) (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Income before Income Tax, Domestic and Foreign

The following table summarizes earnings (loss) before income taxes (benefit) of U.S. and foreign operations (dollars in thousands):



	Period from November 4 through December 31, 2011			Period from January 1 through November 3, 2011		Year Ended December 31,
	Period from November 4 through December 31, 2011			Period from January 1 through November 3, 2011		2010		2009
	Successor			Predecessor		Predecessor		Predecessor
Domestic	$	(169,372	)	$	167,624	$	243,053	$	234,436
Foreign	10,569			102,635		112,620		99,945
	(158,803		)	270,259		355,673		334,381
Earnings from discontinued operations before income taxes	6,223			37,055		55,167		80,652
Earnings from continuing operations before income taxes	$	(165,026	)	$	233,204	$	300,506	$	253,729

Schedule of Components of Income Tax Expense (Benefit)

The following table summarizes the composition of income taxes (benefit) (dollars in thousands):



	Period from November 4 through December 31, 2011			Period from January 1 through November 3, 2011			Year Ended December 31,
	Period from November 4 through December 31, 2011			Period from January 1 through November 3, 2011			2010			2009
	Successor			Predecessor			Predecessor			Predecessor
Current:
Federal	$	(3,060	)	$	78,686		$	126,646		$	83,234
State	1,212			15,717			26,570			21,055
International	5,114			11,757			7,589			16,513
Total current expense	3,266			106,160			160,805			120,802
Deferred:
Federal	(40,227		)	(19,952		)	(51,316		)	(6,067		)
State	(4,009		)	(2,019		)	(8,985		)	(2,065		)
International	(2,964		)	(4,868		)	(915		)	(6,991		)
Total deferred tax expense (benefit)	(47,200		)	(26,839		)	(61,216		)	(15,123		)
	(43,934		)	79,321			99,589			105,679
Income tax related to discontinued operations	2,396			4,954			9,921			12,831
Income taxes (benefit) related to continuing operations	$	(46,330	)	$	74,367		$	89,668		$	92,848

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate is as follows:



	Period from November 4 through December 31, 2011 ⁽¹⁾		Period from January 1 through November 3, 2011		Year Ended December 31,
	Period from November 4 through December 31, 2011 ⁽¹⁾		Period from January 1 through November 3, 2011		2010		2009
	Successor		Predecessor		Predecessor		Predecessor
Computed "expected" tax rate	35.0	%	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.0		3.6		3.4		3.2
Non-deductible items	(9.1	)	3.2		1.2		1.0
Effect of international operations	0.3		(10.4	)	(10.3	)	(6.8	)
Section 199 production deduction	—		(1.6	)	(1.0	)	(0.6	)
Research and development credit	0.1		(0.6	)	(0.3	)	(0.4	)
Other, net	0.4		0.1		—		0.2
	27.7		29.3		28.0		31.6
Change in rate related to discontinued operations	0.4		2.6		1.8		5.0
Effective tax rate related to continuing operations	28.1	%	31.9	%	29.8	%	36.6	%

_____________________


⁽¹⁾	The period from November 4, 2011 through December 31, 2011 includes a loss before income tax benefit. The consolidated effective income tax rates represent adjustments to the computed “expected” income tax benefit rate for the period. Therefore, negative percentages represent reductions to the income tax benefit rate.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities consist of the following (dollars in thousands):



	December 31, 2011			December 31, 2010
	Successor			Predecessor
Deferred Tax Assets:
Foreign tax credit	$	129,320		$	—
Net operating loss	109,854			—
Accounts receivable	10,252			13,353
Foreign net operating loss carry forwards	5,745			12,323
Convertible note hedge	—			35,543
Accrued liabilities	11,285			7,164
Deferred foreign tax asset	25,607			23,160
Equity-based compensation	107			24,084
Accrued interest	9,194			4,758
Loan fees	—			3,289
Unrealized foreign exchange currency	(8,983		)	1,253
Inventory	(4,301		)	6,616
Other	2,350			(470		)
Total gross deferred tax assets	290,430			131,073
Less: valuation allowances	(18,247		)	(15,335		)
Net deferred tax assets	272,183			115,738
Deferred Tax Liabilities:
Intangible assets, amortizable	(537,809		)	(143,718		)
Intangible assets, indefinite-lived	(527,244		)	—
U.S. tax on foreign earnings	(290,601		)	—
Deferred state tax liability	(13,519		)	(16,246		)
Convertible debt instruments	—			(39,700		)
Depreciation	(114,762		)	(32,197		)
Total gross deferred tax liabilities	(1,483,935		)	(231,861		)
Net deferred tax liability	(1,211,752		)	(116,123		)
Less: current deferred tax asset	(23,270		)	(30,112		)
Less: non-current deferred tax asset	(18,322		)	(17,151		)
Non-current deferred tax liability	$	(1,253,344	)	$	(163,386	)

Reconciliation of the Allowance for Uncertain Tax Positions

The reconciliation of the allowance for uncertain tax positions is as follows (dollars in thousands):



	December 31, 2011			December 31, 2010
	Successor			Predecessor
Balance at beginning of year	$	28,105		$	22,155
Net additions for tax positions of prior years	773			11,003
Net reductions for tax positions of prior years	(43		)	(4,388		)
Net additions on positions related to the current year	2,061			2,499
Settlements	(175		)	(1,316		)
Reductions resulting from a lapse of the applicable statute of limitation	(1,394		)	(1,848		)
Balance at end of year	29,327			28,105
Accrued interest and penalties	8,968			7,483
Gross unrecognized income tax benefit	$	38,295		$	35,588

- 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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