Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes

Schedule of reconciliation of computed expected tax expense excluding non-controlling interest to income tax expense (benefit) attributable to continuing operations

	Years ended December 31,
(Thousands of dollars)	2011			2010			2009
Computed “expected” tax expense excluding non-controlling interest	$	155,714		$	127,625		$	31,572
Adjustments to tax expense attributable to:
Foreign tax differences	(40,733		)	(33,322		)	(20,332		)
Tax-exempt investment income	(116		)	(974		)	(1,809		)
State income taxes, net of federal benefit	3,849			1,803			(3,010		)
Change in valuation allowance	(754		)	(6,189		)	(2,146		)
Federal tax credits	(5,153		)	(3,351		)	(3,672		)
Change in pension deferred tax	(199		)	(329		)	(3,508		)
Domestic manufacturing deduction	(8,012		)	(4,837		)	(459		)
Other	(5,545		)	607			1,088
Total income tax expense (benefit)	$	99,051		$	81,033		$	(2,276	)

Schedule of components of earnings before income taxes

	Years ended December 31,
(Thousands of dollars)	2011		2010		2009
United States	$	300,992	$	223,401	$	(14,511	)
Foreign	143,906		141,243		104,717
Total earnings excluding non-controlling interest	444,898		364,644		90,206
Less net loss attributable to non-controlling interest	2,290		599		965
Total earnings before income taxes	$	442,608	$	364,045	$	89,241

Schedule of components of total income taxes

	Years ended December 31,
(Thousands of dollars)	2011			2010			2009
Current:
Federal	$	79,069		$	48,814		$	943
Foreign	15,318			15,855			8,454
State and local	6,549			2,924			(125		)
Deferred:
Federal	(1,761		)	13,204			(18,216		)
Foreign	(232		)	15			10,285
State and local	108			221			(3,617		)
Income tax expense (benefit)	99,051			81,033			(2,276		)
Unrealized changes in other comprehensive income	(12,604		)	(5,443		)	(3,206		)
Total income taxes	$	86,447		$	75,590		$	(5,482	)

Schedule of components of the net deferred income tax liability

	December 31,
(Thousands of dollars)	2011		2010
Deferred income tax liabilities:
Cash basis farming adjustment	$	10,581	$	10,724
Depreciation	109,409		98,692
LIFO	27,927		29,017
Other	4,406		3,768
	$	152,323	$	142,201
Deferred income tax assets:
Reserves/accruals	$	83,816	$	67,244
Tax credit carry-forwards	11,217		9,554
Deferred earnings of foreign subsidiaries	12,672		6,274
Net operating and capital loss carry-forwards	15,800		18,727
Foreign minimum tax credit carry-forward	–		10,400
Other	2,041		3,364
	125,546		115,563
Valuation allowance	16,320		30,664
Net deferred income tax liability	$	43,097	$	57,302

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

(Thousands of dollars)	2011			2010
Beginning balance at January 1	$	3,548		$	3,395
Additions for uncertain tax positions of prior years	66			596
Decreases for uncertain tax positions of prior years	(109		)	(367		)
Additions for uncertain tax positions of current year	4,791			21
Settlements	–			(97		)
Lapse of statute of limitations	(398		)	–
Ending balance at December 31	$	7,898		$	3,548