INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Components of Earnings Before Incomes Taxes

The components of earnings before incomes taxes were:

	Year Ended December 31,
	2012		2011		2010
Earnings before income taxes
United States	$	167.7	$	142.1	$	103.4
Foreign		165.8		180.9		108.0
Earnings before income taxes	$	333.5	$	323.0	$	211.4

Components of Income Tax Expense

Income tax expense consists of the following:

	Year Ended December 31,
	2012		2011		2010
Current:
Federal	$	22.3	$	1.8	$	0.5
State		3.0		2.3		0.8
Foreign		24.6		28.5		23.0
		49.9		32.6		24.3
Deferred:
Federal		41.6		52.4		39.2
State		2.2		3.9		4.8
Foreign		6.1		6.3		(0.2	)
		49.9		62.6		43.8
Total income tax expense	$	99.8	$	95.2	$	68.1

Difference Between Income Tax Expense and Amount Computed by Applying Statutory United States Federal Income Tax Rate to Pre-Tax Earnings

The difference between income tax expense and the amount computed by applying the statutory U.S. federal income tax rate (35%) to the pre-tax earnings consists of the following:

	Year Ended December 31,
	2012			2011			2010
Statutory federal income tax expense	$	116.7		$	113.0		$	74.0
U.S. state income taxes		5.9			6.0			4.6
Foreign tax rate differential		(36.0	)		(27.8	)		(16.8	)
Non-deductible charges/losses and other		14.8			8.0			9.3
Research and development credit		(1.6	)		(4.0	)		(3.0	)
	$	99.8		$	95.2		$	68.1

Tax Effects of Temporary Differences and Carryforwards that Give Rise to Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences and carryforwards that give rise to deferred income tax assets and liabilities consist of the following:

	December 31,
	2012			2011
Deferred tax assets:
Inventory reserves	$	21.7		$	18.3
Warranty reserves		12.5			9.3
Accrued liabilities		37.5			15.5
Net operating loss carryforward		22.4			19.6
Research and development
credit carry forward		18.8			38.2
Alternative minimum
tax credit carryforward		5.0			5.0
Other		5.6			4.7
	$	123.5		$	110.6
Deferred tax liabilities:
Book to tax revenue differences		(31.7	)		(37.5	)
Intangible assets		(127.9	)		(92.8	)
Depreciation		(38.2	)		(23.2	)
Software development costs		(0.7	)		(1.3	)
		(198.5	)		(154.8	)
Net deferred tax liability before valuation
allowance		(75.0	)		(44.2	)
Valuation allowance		(26.5	)		(20.1	)
Net deferred tax liability	$	(101.5	)	$	(64.3	)

Reconciliation of Beginning and Ending Amounts of Gross Uncertain Tax Positions

A reconciliation of the beginning and ending amounts of gross uncertain tax positions is presented below:

	2012		2011			2010
Balance, beginning of the period	$	21.7	$	21.5		$	18.5
Additions for current year tax positions		10.6		6.1			3.1
Additions for tax positions of prior years		2.3		--			--
Currency fluctuations		--		(0.1	)		(0.1	)
Settlements with taxing authorities		--		(5.8	)		--
Balance, end of the period	$	34.6	$	21.7		$	21.5