Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of the provision for income taxes

The components of the provision for income taxes from continuing operations are as follows:



	Year Ended December 31,
	2012			2011			2010
	(in millions)
Current:
Federal	$	(5.7	)	$	20.8		$	(33.8	)
State	7.0			5.5			(2.4		)
Foreign	6.4			5.4			5.0
Total current	7.7			31.7			(31.2		)
Deferred:
Federal	126.6			62.2			65.4
State	3.2			1.3			3.5
Foreign	(3.5		)	(3.0		)	(0.4		)
Total deferred	126.3			60.5			68.5
Provision	$	134.0		$	92.2		$	37.3

Amounts previously reported have been adjusted to exclude discontinued operations resulting from the expected sale of the Company's ready-mix concrete operations. See Note 2 Acquisitions and Divestitures.

Components of deferred tax liabilities and assets

The components of deferred tax liabilities and assets are as follows:



	December 31,
	2012			2011
	(in millions)
Deferred tax liabilities:
Depreciation, depletion, and amortization	$	887.6		$	740.8
Derivatives	12.4			14.5
Convertible debt	96.5			88.4
Total deferred tax liabilities	996.5			843.7
Deferred tax assets:
Workers compensation, pensions, and other benefits	52.4			47.8
Warranties and reserves	15.6			14.4
Equity items	81.5			72.8
Tax loss carryforwards and credits	249.7			234.9
Inventory	17.9			11.1
Accrued liabilities and other	3.9			4.7
Total deferred tax assets	421.0			385.7
Net deferred tax liabilities before valuation allowance	575.5			458.0
Valuation allowance	19.7			19.3
Net deferred tax liabilities before reserve for uncertain tax positions	595.2			477.3
Deferred tax assets included in reserve for uncertain tax positions	(39.4		)	(42.6		)
Adjusted net deferred tax liabilities	$	555.8		$	434.7

Reconciliation between the statutory United States Federal income tax rate and the Company's effective income tax rate

The following is a reconciliation between the statutory U.S. Federal income tax rate and the Company’s effective income tax rate on income from continuing operations:



	Year Ended December 31,
	2012		2011		2010
Statutory rate	35.0	%	35.0	%	35.0	%
State taxes	2.0		2.1		3.4
Tax settlements	(0.6	)	—		4.8
Changes in tax reserves	(1.4	)	0.4		(10.7	)
Other, net	(0.3	)	1.1		2.5
Effective rate	34.7	%	38.6	%	35.0	%

Change in unrecognized tax benefits

The change in unrecognized tax benefits for the years ended December 31, 2012, 2011, and 2010 was as follows:



	Year Ended December 31,
	2012			2011			2010
	(in millions)
Beginning balance	$	52.5		$	36.8		$	40.1
Additions for tax positions related to the current year	4.1			3.8			3.3
Additions for tax positions of prior years	—			16.4			9.3
Reductions for tax positions of prior years	(1.1		)	(0.1		)	(5.6		)
Settlements	(3.4		)	(3.5		)	(9.5		)
Expiration of statute of limitations	(3.4		)	(0.9		)	(0.8		)
Ending balance	$	48.7		$	52.5		$	36.8

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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