Recoverable Non-income Taxes

9 Months Ended

Sep. 30, 2011

Recoverable Non-income Taxes [Abstract]

Recoverable Non-income Taxes

NOTE 6. Recoverable Non-income Taxes

We pay various value-added taxes in jurisdictions outside of the United States. These include taxes levied on material purchases, fixed asset purchases, and various social taxes. The majority of these taxes are creditable when goods are sold to customers domestically or against income taxes due. Since the taxes are recoverable upon completion of these procedures, they are recorded as assets upon payment of the taxes.

Historically, due to the concentration of exports, such taxes were typically credited against income taxes. However, with reduced profitability, primarily in Brazil, we instead sought these refunds via alternate proceedings.

Following is a summary of the recoverable non-income taxes recorded on our balance sheet at September 30, 2011 and December 31, 2010:

(In Millions)	September 30, 2011		December 31, 2010
Brazil	$	48.3	$	84.7
India		10.8		14.2
Europe		0.7		8.5
Total recoverable non-income taxes	$	59.8	$	107.4

At September 30, 2011, a receivable of $40.9 million was included in current assets and $18.9 million was included in non-current assets and is expected to be recovered through 2014. The actual amounts received as expressed in U.S. Dollars will vary depending on the exchange rate at the time of receipt or future reporting date.

In Brazil, $15.0 million of the previously classified current portion of refundable non-income taxes at December 31, 2010 was deposited in a court appointed cash account in the first quarter of 2011 until resolution of an unrelated social security tax matter. This deposit is reflected as a long term receivable in “Other assets” on our balance sheet as the timing of resolution of this tax dispute is uncertain and might take several years.