Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Income (loss) Before Income Taxes

For financial reporting purposes, income (loss) before income taxes includes the following components:

	Year Ended December 31,
	2012		2011		2010
Income (loss) before income taxes:
United States	$	69,363	$	57,339	$	(12,202	)
Foreign		138,246		147,188		132,982
	$	207,609	$	204,527	$	120,780

Components of Income Tax Expense

Components of income tax expense, in thousands, were as follows:

	Year Ended December 31,
	2012			2011			2010
Current income tax expense:
Federal	$	41,113		$	3,456		$	8,174
State		6,302			5,321			3,547
Foreign		33,335			44,541			27,918
		80,750			53,318			39,639
Deferred income tax expense (benefit):
Federal		(5,688	)		26,183			14,290
State		(488	)		2,750			1,225
Foreign		7,494			(5,217	)		5,322
		1,318			23,716			20,837
Total income tax expense	$	82,068		$	77,034		$	60,476

Reconciliation of Income Tax Expense Computed at Statutory Tax Rates Compared to Effective Tax Rates

A reconciliation of income tax expense computed at statutory tax rates compared to effective income tax rates was as follows:

	Year Ended December 31,
	2012			2011			2010
Statutory rate		35.0	%		35.0	%		35.0	%
Foreign items		5.1	%		3.6	%		1.2	%
State income taxes, net of Federal benefit		2.0	%		1.6	%		2.1	%
Change in valuation allowance		-1.7	%		-2.6	%		0.0	%
Federal tax credits		-0.9	%		-1.0	%		-1.6	%
Non-deductible meals		0.3	%		0.2	%		0.4	%
Uncertain tax positions		0.2	%		-0.6	%		1.3	%
Goodwill impairment		0.0	%		0.0	%		11.2	%
Share based compensation		0.0	%		1.9	%		0.0	%
Other		-0.5	%		-0.4	%		0.5	%
		39.5	%		37.7	%		50.1	%

Components of Deferred Taxes

Significant temporary differences between reported financial and taxable earnings that give rise to deferred income tax assets and liabilities, in thousands, were as follows:

	Year Ended December 31,
	2012			2011
Deferred income tax assets:
Net operating loss carryforwards	$	126,556		$	136,159
Benefit plans		27,691			22,248
Accrued expenses		12,260			16,292
Tax credits		12,327			13,022
Interest rate hedge activities		1,125			2,934
Reserves not currently deductible for tax purposes		6,078			9,700
Allowance for doubtful accounts		2,478			2,937
Foreign currency translation		1,867			3,373
Other		12,336			3,253
Gross deferred income tax assets		202,718			209,918
Less valuation allowance		(112,626	)		(114,686	)
Total deferred income tax assets	$	90,092		$	95,232
Deferred income tax liabilities:
Acquired intangibles amortization	$	140,109		$	142,235
Excess tax depreciation over financial depreciation		36,264			32,135
International earnings		27,080			27,097
Prepaid expenses		5,889			5,218
Total deferred income tax liabilities		209,342			206,685
Net deferred income tax liability	$	119,250		$	111,453
Deferred income tax assets / liabilities included in the balance sheet are:
Deferred income tax asset—current	$	13,148		$	10,068
Deferred income tax liability—long-term		132,398			121,521
Net deferred income taxes	$	119,250		$	111,453

Summary of Activity Related to Unrecognized Tax Benefits

The following summarizes the activity related to our unrecognized tax benefits recorded in accordance with ASC 740-10 in 2012, 2011 and 2010, in thousands:

Balance at January 1, 2010	$	17,940
Increases for positions taken in current year		4,283
Decrease due to settlements with taxing authorities		(539	)
Expiration of the statute of limitations for the assessment of taxes		(2,248	)
Balance at December 31, 2010		19,436
Increases for positions taken in current year		3,680
Decreases for positions taken in prior years		(3,817	)
Decrease due to settlements with taxing authorities		(2,309	)
Balance at December 31, 2011		16,990
Increases for positions taken in current year		2,502
Decreases for positions taken in prior years		(4,533	)
Decrease due to settlements with taxing authorities		(168	)
Expiration of the statute of limitations for the assessment of taxes		(801	)
Balance at December 31, 2012	$	13,990