Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

Note 10—Income Taxes

Total income taxes were allocated as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2012			2011			2012			2011
Income tax (benefit) on loss before income taxes	$	(118.6	)	$	(107.7	)	$	(277.4	)	$	(193.5	)
Income tax expense on discontinued operations		8.8			8.0			16.2			15.5
Accumulated other comprehensive loss/(income)		1.7			(17.2	)		4.6			0.2
Accumulated deficit		—			—			—			6.0

We classify reserves for tax uncertainties within accrued expenses and deferred credits and other in our consolidated condensed balance sheets, separate from any related income tax payable or deferred income taxes. Reserve amounts relate to any potential income tax liabilities resulting from uncertain tax positions as well as potential interest or penalties associated with those liabilities.

We file income tax returns, including returns for our subsidiaries, with federal, state, and foreign jurisdictions. We are under regular and recurring audit by the Internal Revenue Service (“IRS”) on open tax positions, and it is possible that the amount of the liability for unrecognized tax benefits could change during the next twelve months. The IRS audit of our 2008 federal income tax year concluded during the quarter ended June 30, 2010. The IRS proposed an adjustment to our cancellation of debt income tax position which was appealed. In the quarter ended June 30, 2012, the issue was settled resulting in a reduction of our net operating loss carryforwards of approximately $5.4 million. In connection with the settlement, the total amount of unrecognized tax benefits (“UTB”) decreased by $72.2 million. The decrease in UTB did not impact the Company’s effective tax rate.