INCOME TAXES

The following summarizes the (benefit) provision for income taxes:

Year Ended December 31,	2012			2011			2010
(In millions)
Current:
Federal	$	2.1		$	(4.9	)	$	16.5
State and local		1.5			0.6			2.2
Foreign		9.9			6.0			7.5
		13.5			1.7			26.2
Deferred:
Federal		(11.6	)		26.7			6.3
State and local		(2.6	)		0.6			(0.7	)
Foreign		(12.2	)		(9.4	)		(1.1	)
		(26.4	)		17.9			4.5
(Benefit) provision for income taxes	$	(12.9	)	$	19.6		$	30.7

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

Year Ended December 31,	2012			2011			2010
(In millions)
(Loss) income before (benefit) provision for income taxes
United States	$	(2.4	)	$	72.7		$	91.8
Foreign		(65.5	)		(1.6	)		(6.7	)
	$	(67.9	)	$	71.1		$	85.1

The (benefit) 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,	2012			2011			2010
(In millions)
(Benefit) provision for Federal income taxes at the statutory rate	$	(23.8	)	$	24.9		$	29.8
State and local income taxes, net of federal benefit		(0.6	)		0.9			0.9
Foreign income tax difference		(6.8	)		(8.9	)		(2.2	)
Nondeductible goodwill impairment		16.7			-			-
Other items, net		1.6			2.7			2.2
(Benefit) provision for income taxes	$	(12.9	)	$	19.6		$	30.7

We have not provided for deferred U.S. income taxes or foreign withholding taxes on $48.2 million of foreign subsidiary undistributed earnings as of December 31, 2012. The unrecorded U.S. tax liability associated with these undistributed earnings is approximately $15.4 million at December 31, 2012. Such earnings are intended to be reinvested indefinitely and, therefore, no U.S. tax liability is required.

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

December 31,	2012			2011
(In millions)
Deferred tax assets (liabilities):
Nondeductible accruals and allowances	$	65.4		$	52.9
Depreciation		2.8			8.9
Intangible asset valuation and amortization		(154.3	)		(157.6	)
Loss and credit carryforwards		43.4			39.0
Amortization of stock-based compensation		15.2			14.1
Deferred compensation		2.9			2.4
Inventory valuation		(6.8	)		(8.3	)
Pension		11.0			11.1
Gain on sale-leaseback transaction		1.7			1.9
Prepaid expenses		(2.1	)		(2.7	)
Display costs		(3.8	)		(4.0	)
Adjustments to acquisition consideration payable		7.8			5.9
Other (net)		0.1			0.4
Partnership differences		-			(4.6	)
Unrealized translation loss		0.6			1.9
Fair value adjustment on interest rate swaps		1.3			1.8
Inventory overhead		0.1			(2.0	)
Valuation allowances		(8.8	)		(8.1	)
Net deferred tax liability	$	(23.5	)	$	(47.0	)
Included in:
Current assets		33.2			26.4
Noncurrent liabilities		(56.7	)		(73.4	)
Net deferred tax liability	$	(23.5	)	$	(47.0	)

As of December 31, 2012, we had net operating loss carryforwards of $482.5 million (consisting of $6.8 million of federal, $416.4 million of state and $59.3 million of foreign carryforwards) which expire through 2032 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, 2012 and 2011 were $0.3 million and $4.7 million, respectively (net of federal tax benefit), which included $0.0 million and $1.4 million of interest and penalties, respectively (net of federal tax benefit).

(In millions)	2012			2011

Uncertain tax positions, beginning of year	$	4.7		$	5.6
Decreases for tax positions related to prior years		(1.1	)		(0.9	)
Settlements with tax authorities during the year		(3.3	)		-
Uncertain tax positions, end of year	$	0.3		$	4.7

If recognized as of December 31, 2012 and 2011, $0.3 million and $4.7 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 2008. We reasonably expect to settle all ongoing audits by December 31, 2013.