Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

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)	2012			2011			2010
Computed “expected” tax expense excluding non-controlling interest	$	128,275		$	155,714		$	127,625
Adjustments to tax expense attributable to:
Foreign tax differences	(36,139		)	(40,733		)	(33,322		)
Tax-exempt investment income	(62		)	(116		)	(974		)
State income taxes, net of federal benefit	658			3,849			1,803
Change in valuation allowance	-			(754		)	(6,189		)
Federal tax credits	(1,693		)	(5,153		)	(3,351		)
Change in pension deferred tax	(1,252		)	(199		)	(329		)
Domestic manufacturing deduction	(5,643		)	(8,012		)	(4,837		)
Other	46			(5,545		)	607
Total income tax expense	$	84,190		$	99,051		$	81,033

Schedule of components of earnings before income taxes

	Years ended December 31,
(Thousands of dollars)	2012			2011		2010
United States	$	178,821		$	300,992	$	223,401
Foreign	187,680			143,906		141,243
Total earnings excluding non-controlling interest	366,501			444,898		364,644
Less: net loss (income) attributable to non-controlling interest	(277		)	2,290		599
Total earnings before income taxes	$	366,778		$	442,608	$	364,045

Schedule of components of total income taxes

	Years ended December 31,
(Thousands of dollars)	2012			2011			2010
Current:
Federal	$	68,928		$	79,069		$	48,814
Foreign	31,149			15,318			15,855
State and local	6,507			6,549			2,924
Deferred:
Federal	(16,818		)	(1,761		)	13,204
Foreign	(935		)	(232		)	15
State and local	(4,641		)	108			221
Income tax expense	84,190			99,051			81,033
Unrealized changes in other comprehensive income	(9,197		)	(12,604		)	(5,443		)
Total income taxes	$	74,993		$	86,447		$	75,590

Schedule of components of the net deferred income tax liability

	December 31,
(Thousands of dollars)	2012		2011
Deferred income tax liabilities:
Cash basis farming adjustment	$	10,413	$	10,581
Depreciation	108,083		109,409
LIFO	7,012		27,927
Other	3,770		4,406
	$	129,278	$	152,323
Deferred income tax assets:
Reserves/accruals	$	87,836	$	83,816
Tax credit carry-forwards	12,813		11,217
Deferred earnings of foreign subsidiaries	17,851		12,672
Net operating and capital loss carry-forwards	11,756		15,800
Other	1,442		2,041
	131,698		125,546
Valuation allowance	11,758		16,320
Net deferred income tax liability	$	9,338	$	43,097

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

(Thousands of dollars)	2012			2011
Beginning balance at January 1	$	7,898		$	3,548
Additions for uncertain tax positions of prior years	929			66
Decreases for uncertain tax positions of prior years	(2,715		)	(109		)
Additions for uncertain tax positions of current year	1,165			4,791
Lapse of statute of limitations	(2,224		)	(398		)
Ending balance at December 31	$	5,053		$	7,898