Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate from continuing operations follows:



	2011		2010		2009
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State taxes (net of federal benefit)	0.9		0.4		0.7
Foreign losses without tax benefit	0.3		3.0		6.0
Foreign operations taxed at lower rates	(20.6	)	(28.0	)	(42.7	)
ESOP dividend	(0.3	)	(0.7	)	(1.7	)
Repatriation from current year foreign earnings	5.9		4.7		—
Other	0.5		1.0		3.0
Consolidated effective income tax rate	21.7	%	15.4	%	0.3	%

Schedule of Income before Income Tax, Domestic and Foreign and Components of Income Tax Expense

The components of Income from continuing operations before income taxes and Income taxes follow:



	2011			2010			2009
Income (loss) from continuing operations before income taxes:
U.S.	$	19,341		$	(8,545	)	$	(7,920	)
International	97,548			72,350			50,880
Income from continuing operations before income taxes	$	116,889		$	63,805		$	42,960
Income tax provision:
Current:
U.S. – federal	$	11,829		$	578		$	(30	)
U.S. – state	805			758			203
International	11,695			9,958			7,486
	24,329			11,294			7,659
Deferred:
U.S. – federal	831			(423		)	(2,236		)
U.S. – state	928			(434		)	290
International	(772		)	(610		)	(5,583		)
	987			(1,467		)	(7,529		)
Income taxes	$25,316			$9,827			$130

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31 consist of the tax effects of temporary differences related to the following:



	Assets						Liabilities
	2011			2010			2011			2010
Allowance for doubtful accounts	$	767		$	1,171		$	71		$	70
Depreciation and amortization	708			2,541			12,359			12,060
Inventory valuation	12,890			11,018			1,109			992
Other postretirement/postemployment costs	20,945			20,889			(354		)	(321		)
Tax loss carryforwards	39,238			58,692			—			(1,349		)
Pension	43,998			20,747			23			125
Accrued compensation	6,885			11,073			—			—
Goodwill	(31,807		)	(28,337		)	633			635
Swedish tax incentive	—			—			3,922			4,169
Contingent convertible debt interest	(10,089		)	(25,046		)	—			—
Unrealized foreign currency (loss) gain	—			—			2,463			2,652
Other	9,636			10,459			1,867			3,664
	93,171			83,207			22,093			22,697
Valuation allowance	(16,681		)	(30,036		)	—			—
	$	76,490		$	53,171		$	22,093		$	22,697
Current deferred income taxes	$	28,829		$	10,449		$	1,431		$	1,667
Non-current deferred income taxes	47,661			42,722			20,662			21,030
	$	76,490		$	53,171		$	22,093		$	22,697

Summary of Income Tax Contingencies

A reconciliation of the unrecognized tax benefits for 2011, 2010 and 2009 follows:



	2011			2010			2009
Balance at January 1	$	7,102		$	7,017		$	7,611
Increase (decrease) in unrecognized tax benefits due to:
Tax positions taken during prior periods	—			240			—
Tax positions taken during the current period	215			17			59
Settlements with taxing authorities	(175		)	—			(320		)
Lapse of the applicable statute of limitations	(177		)	(172		)	(333		)
Balance at December 31	$	6,965		$	7,102		$	7,017

The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. The liability for unrecognized tax benefits included accrued interest of $0, $39 and $29 at December 31, 2011, 2010 and 2009, respectively.

The Company or its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by various taxing authorities, including the IRS in the U.S. and the taxing authorities in other major jurisdictions such as Brazil, Canada, France, Germany, Mexico, Singapore, Sweden, Switzerland and the United Kingdom. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2003. See Note 20 of the Consolidated Financial Statements for a discussion of current IRS matters.

- 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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