INCOME TAXES	6 Months Ended
Jun. 29, 2013
INCOME TAXES
INCOME TAXES	(14) INCOME TAXES *Uncertain Tax Positions* As of June 29, 2013, we had gross unrecognized tax benefits of $73.0 (net unrecognized tax benefits of $36.8). Of these net unrecognized tax benefits, $35.7, if recognized, would impact our effective tax rate from continuing operations. We classify interest and penalties related to unrecognized tax benefits as a component of our income tax provision. As of June 29, 2013, gross accrued interest excluded from the amounts above totaled $7.4 (net accrued interest of $5.6). There were no significant penalties recorded during the three and six months ended June 29, 2013 or June 30, 2012. Based on the outcome of certain examinations or as a result of the expiration of statute of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by approximately $10.0 to $15.0. *Other Tax Matters* For the three months ended June 29, 2013, we recorded an income tax provision of $12.4 on $51.3 of pre-tax income from continuing operations, resulting in an effective rate of 24.2%. This compares to an income tax provision for the three months ended June 30, 2012 of $9.0 on $46.9 of pre-tax income from continuing operations, resulting in an effective rate of 19.2%. The effective tax rate for the second quarter of 2013 was impacted favorably by income tax benefits of $1.8 associated with statute expirations during the period. The effective tax rate for the second quarter of 2012 was impacted favorably by tax benefits of $2.5 recorded in connection with various audit settlements and statute expirations during the period. For the six months ended June 29, 2013, we recorded an income tax provision of $8.7 on $59.4 of pre-tax income from continuing operations, resulting in an effective tax rate of 14.6%. This compares to an income tax provision for the six months ended June 30, 2012 of $22.4 on $69.1 of pre-tax income from continuing operations, resulting in an effective tax rate of 32.4%. The effective tax rate for the first six months of 2013 was impacted favorably by the $1.8 of tax benefits noted above that were recorded during the second quarter of 2013, as well as tax benefits recorded of $4.1 related to the Research and Experimentation Credit generated in 2012 and $2.0 related to various foreign tax credits. The effective tax rate for the six months ended June 30, 2012 was impacted unfavorably by an incremental tax charge of $6.1 associated with the deconsolidation of our dry cooling business in China, as the goodwill allocated to the transaction is not deductible for tax purposes, offset by the income tax benefits noted above that were recorded in the second quarter of 2012. We perform reviews of our income tax positions on a continual basis and accrue for potential uncertain positions when we determine that an uncertain position meets the criteria of the Income Taxes topic of the Codification. Accruals for these uncertain tax positions are recorded in “Income taxes payable” and “Deferred and other income taxes” in the accompanying condensed consolidated balance sheets based on the expectation as to the timing of when the matters will be resolved. As events change and resolution occurs, these accruals are adjusted, such as in the case of audit settlements with taxing authorities. The IRS concluded its audit of our 2008 and 2009 federal income tax returns, which did not result in tax liabilities that materially differed from the accruals previously established. During 2012, the IRS initiated an audit of our 2010 and 2011 federal income tax returns. With regard to this audit, we believe any contingencies are adequately provided for. State income tax returns generally are subject to examination for a period of three to five years after filing the respective tax returns. The impact on such tax returns of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination, administrative appeal or litigation. We believe any uncertain tax positions related to these examinations have been adequately provided for. We have various foreign income tax returns under examination. The most significant of these examinations is in Denmark for the 2006 to 2010 tax years. We believe that any uncertain tax positions related to these examinations have been adequately provided for. An unfavorable resolution of one or more of the above matters could have a material adverse effect on our results of operations or cash flows in the quarter and year in which an adjustment is recorded or the tax is due or paid. As audits and examinations are still in process or we have not yet reached the final stages of the appeals process, the timing of the ultimate resolution and any payments that may be required for the above matters cannot be determined at this time. Upon the conclusion of our disposition activities discussed in Note 3, we may recognize an additional income tax provision or benefit, generally, as part of discontinued operations.

(14) INCOME TAXES

Uncertain Tax Positions

As of June 29, 2013, we had gross unrecognized tax benefits of $73.0 (net unrecognized tax benefits of $36.8). Of these net unrecognized tax benefits, $35.7, if recognized, would impact our effective tax rate from continuing operations.

We classify interest and penalties related to unrecognized tax benefits as a component of our income tax provision. As of June 29, 2013, gross accrued interest excluded from the amounts above totaled $7.4 (net accrued interest of $5.6). There were no significant penalties recorded during the three and six months ended June 29, 2013 or June 30, 2012.

Based on the outcome of certain examinations or as a result of the expiration of statute of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by approximately $10.0 to $15.0.

Other Tax Matters

For the three months ended June 29, 2013, we recorded an income tax provision of $12.4 on $51.3 of pre-tax income from continuing operations, resulting in an effective rate of 24.2%. This compares to an income tax provision for the three months ended June 30, 2012 of $9.0 on $46.9 of pre-tax income from continuing operations, resulting in an effective rate of 19.2%. The effective tax rate for the second quarter of 2013 was impacted favorably by income tax benefits of $1.8 associated with statute expirations during the period. The effective tax rate for the second quarter of 2012 was impacted favorably by tax benefits of $2.5 recorded in connection with various audit settlements and statute expirations during the period.

For the six months ended June 29, 2013, we recorded an income tax provision of $8.7 on $59.4 of pre-tax income from continuing operations, resulting in an effective tax rate of 14.6%. This compares to an income tax provision for the six months ended June 30, 2012 of $22.4 on $69.1 of pre-tax income from continuing operations, resulting in an effective tax rate of 32.4%. The effective tax rate for the first six months of 2013 was impacted favorably by the $1.8 of tax benefits noted above that were recorded during the second quarter of 2013, as well as tax benefits recorded of $4.1 related to the Research and Experimentation Credit generated in 2012 and $2.0 related to various foreign tax credits. The effective tax rate for the six months ended June 30, 2012 was impacted unfavorably by an incremental tax charge of $6.1 associated with the deconsolidation of our dry cooling business in China, as the goodwill allocated to the transaction is not deductible for tax purposes, offset by the income tax benefits noted above that were recorded in the second quarter of 2012.

We perform reviews of our income tax positions on a continual basis and accrue for potential uncertain positions when we determine that an uncertain position meets the criteria of the Income Taxes topic of the Codification. Accruals for these uncertain tax positions are recorded in “Income taxes payable” and “Deferred and other income taxes” in the accompanying condensed consolidated balance sheets based on the expectation as to the timing of when the matters will be resolved. As events change and resolution occurs, these accruals are adjusted, such as in the case of audit settlements with taxing authorities.

The IRS concluded its audit of our 2008 and 2009 federal income tax returns, which did not result in tax liabilities that materially differed from the accruals previously established. During 2012, the IRS initiated an audit of our 2010 and 2011 federal income tax returns. With regard to this audit, we believe any contingencies are adequately provided for.

State income tax returns generally are subject to examination for a period of three to five years after filing the respective tax returns. The impact on such tax returns of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination, administrative appeal or litigation. We believe any uncertain tax positions related to these examinations have been adequately provided for.

We have various foreign income tax returns under examination. The most significant of these examinations is in Denmark for the 2006 to 2010 tax years. We believe that any uncertain tax positions related to these examinations have been adequately provided for.

An unfavorable resolution of one or more of the above matters could have a material adverse effect on our results of operations or cash flows in the quarter and year in which an adjustment is recorded or the tax is due or paid. As audits and examinations are still in process or we have not yet reached the final stages of the appeals process, the timing of the ultimate resolution and any payments that may be required for the above matters cannot be determined at this time.

Upon the conclusion of our disposition activities discussed in Note 3, we may recognize an additional income tax provision or benefit, generally, as part of discontinued operations.