INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES [Abstract]

INCOME TAXES

INCOME TAXES

        The following summarizes the provision for income taxes:

Year Ended December 31,		2011			2010			2009
(In millions)
Current:
Federal	$	(4.9	)	$	16.5		$	(5.2	)
State and local		0.6			2.2			4.9
Foreign		6.0			7.5			5.8
		1.7			26.2			5.5
Deferred:
Federal		26.7			6.3			13.0
State and local		0.6			(0.7	)		1.0
Foreign		(9.4	)		(1.1	)		(3.3	)
		17.9			4.5			10.7
Provision (benefit) for income taxes	$	19.6		$	30.7		$	16.2

        The domestic and foreign components of income (loss) before provision for income taxes are as follows:

Year Ended December 31,		2011			2010			2009
(In millions)
Income (loss) before provision for income taxes
United States	$	72.7		$	91.8		$	(54.1	)
Foreign		(1.6	)		(6.7	)		(16.0	)
	$	71.1		$	85.1		$	(70.1	)

        The provision for income taxes on adjusted historical income differs from the amounts computed by applying the applicable Federal statutory rates due to the following:

Year Ended December 31,		2011			2010			2009
(In millions)
Provision (benefit) for Federal income taxes at the statutory rate	$	24.9		$	29.8		$	(24.5	)
State and local income taxes, net of federal benefit		0.9			0.9			3.9
Foreign income tax difference		(8.9	)		(2.2	)		(2.1	)
Nondeductible goodwill impairment		-			-			41.3
Change in deferred balance - fixed assets		-			-			(2.3	)
Other items, net		2.7			2.2			(0.1	)
Provision for income taxes	$	19.6		$	30.7		$	16.2

        We have not provided for U.S. Federal and foreign withholding taxes on $47.1 million of foreign subsidiary undistributed earnings as of December 31, 2011. Such earnings are intended to be reinvested indefinitely.

        The following is a summary of the significant components of our deferred tax assets and liabilities:

December 31,		2011			2010
(In millions)
Deferred tax assets (liabilities):
Nondeductible accruals and allowances	$	52.9		$	54.6
Depreciation		8.9			13.2
Intangible asset valuation and amortization		(157.6	)		(97.4	)
Loss and credit carryforwards		39.0			42.1
Amortization of stock-based compensation		14.1			14.1
Deferred compensation		2.4			3.0
Inventory valuation		(8.3	)		(8.6	)
Pension		11.1			7.3
Gain on sale-leaseback transaction		1.9			2.2
Prepaid expenses		(2.7	)		(2.5	)
Display costs		(4.0	)		(3.6	)
Contingent payment liability		5.9			7.0
Other (net)		0.4			1.6
Partnership differences		(4.6	)		(1.1	)
Unrealized translation loss		1.9			-
Fair value adjustment on interest rate swap		1.8			0.9
Inventory overhead		(2.0	)		0.7
Valuation allowances		(8.1	)		(5.8	)
Net deferred tax (liability) asset	$	(47.0	)	$	27.7
Included in:
Current assets	$	26.4		$	28.0
Noncurrent liabilities		(73.4	)		(0.3	)
Net deferred tax (liability) asset	$	(47.0	)	$	27.7

        As of December 31, 2011, we had net operating loss carryforwards of $468.9 million (consisting of $4.7 million of federal, $419.8 million of state and $44.4 million of foreign carryforwards) which expire through 2031 and state tax credit carryforwards of $8.0 million, which expire through 2021.

Uncertain tax positions

        Our total unrecognized tax benefits as of December 31, 2011 and 2010 were $4.7 million and $5.6 million, respectively (net of federal tax benefit), which included $1.4 million of interest and penalties (net of federal tax benefit) as of both December 31, 2011 and 2010.

(In millions)		2011			2010
Uncertain tax positions, beginning of year	$	5.6		$	6.6
Decreases for tax positions related to prior years		(0.9	)		(1.0	)
Settlements with tax authorities during the year		-			-
Uncertain tax positions, end of year	$	4.7		$	5.6

        If recognized as of December 31, 2011 and 2010, $4.7 million and $5.6 million, respectively (net of federal tax benefit) of our unrecognized tax benefit would reduce income tax expense and the effective tax rate.

        We file a consolidated U.S. federal income tax return as well as separate, unitary and combined income tax returns in multiple state jurisdictions. In addition, we file income tax returns in various foreign jurisdictions.

        The Internal Revenue Service has completed examination of our federal returns for taxable years prior to 2009. Our state income tax examinations, with limited exceptions, have been completed for the periods prior to 2007. We reasonably expect to settle all ongoing audits by December 31, 2012.