Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Earnings before income taxes and income tax expense

(Loss) earnings before income taxes and income tax expense consist of:

	Years Ended December 31,
	2011			2010			2009
	(in thousands)

(Loss) earnings before income taxes:
United States	$	(120,159	)	$	382,463		$	539,002
Foreign		(88,310	)		83,159			85,483
Total	$	(208,469	)	$	465,622		$	624,485
Income tax expense:
Partnership UBT	$	8,737		$	10,363		$	2,420
Corporate subsidiaries:
Federal		10,600			2,570			5,550
State and local		1,772			1,401			632
Foreign		11,411			25,144			32,001
Current tax expense		32,520			39,478			40,603
Deferred tax (benefit) expense		(29,422	)		(955	)		5,374
Income tax expense	$	3,098		$	38,523		$	45,977

Difference between the effective tax rates and UBT statutory tax rate

The principal reasons for the difference between the effective tax rates and the UBT statutory tax rate of 4.0% are as follows:

	Years Ended December 31,
	2011						2010						2009
	(in thousands)

UBT statutory rate		$	(8,339	)	4.0	%		$	18,625		4.0	%		$	24,979		4.0	%
Corporate subsidiaries' federal, state, local and foreign income taxes			2,998		(1.4	)			25,544		5.5				32,585		5.2
Effect of ASC 740 adjustments, miscellaneous taxes, and other			2,560		(1.3	)			1,445		0.3				(1,988	)	(0.3	)
Income not taxable resulting from use of UBT business apportionment factors and effect of deferred compensation charge			5,879		(2.8	)			(7,091	)	(1.5	)			(9,599	)	(1.5	)
Income tax expense and effective tax rate		$	3,098		(1.5	)		$	38,523		8.3			$	45,977		7.4

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years Ended December 31,
	2011			2010			2009
	(in thousands)

Balance as of beginning of period	$	5,326		$	7,365		$	8,805
Additions for prior year tax positions		190			-			174
Reductions for prior year tax positions		-			-			-
Additions for current year tax positions		761			823			1,182
Reductions for current year tax positions		-			-			(52	)
Reductions related to closed years/settlements with tax authorities		(2,249	)		(2,862	)		(2,744	)
Balance as of end of period	$	4,028		$	5,326		$	7,365

Tax effect of significant items comprising the net deferred tax asset (liability)

The tax effect of significant items comprising the net deferred tax asset (liability) is as follows:

	December 31,
	2011			2010
	(in thousands)
Deferred tax asset:
Differences between book and tax basis:
Benefits from net operating loss carryforwards	$	5,138		$	-
Deferred compensation plans		35,716			15,431
Other, primarily accrued expenses deductible when paid		14,398			7,183
		55,252			22,614
Less: valuation allowance		(5,138	)		-
Deferred tax asset		50,114			22,614
Deferred tax liability:
Differences between book and tax basis:
Intangible assets		14,325			14,575
Translation adjustment		9,413			8,303
Other, primarily undistributed earnings of certain foreign subsidiaries		330			2,979
Deferred tax liability		24,068			25,857
Net deferred tax asset (liability)	$	26,046		$	(3,243	)

- 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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