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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]  
Components of earnings before taxes

The components of earnings before taxes consist of the following (in millions):

 

                         
For the Years Ended December 31,   2011     2010     2009  

United States operations

  $ 485.7     $ 382.4     $ 489.7  

Foreign operations

    493.2       477.8       508.5  

 

   

 

 

   

 

 

 

Total

  $ 978.9     $ 860.2     $ 998.2  

 

   

 

 

   

 

 

 

The provision for income taxes consists of (in millions):

 

                         

Current:

                       

Federal

  $ 148.4     $ 235.3     $ 204.9  

State

    14.3       19.5       23.3  

Foreign

    75.9       81.0       72.3  

 

   

 

 

   

 

 

 
      238.6       335.8       300.5  

 

   

 

 

   

 

 

 

Deferred:

                       

Federal

    (2.6     (54.9     (17.4

State

    (0.9     (2.0     (3.1

Foreign

    (16.2     (15.6     0.8  

 

   

 

 

   

 

 

 
      (19.7     (72.5     (19.7

 

   

 

 

   

 

 

 

Provision for income taxes

  $ 218.9     $ 263.3     $ 280.8  

 

   

 

 

   

 

 

 
Reconciliation of the U.S. statutory income tax rate to effective tax rate

A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows:

 

                         
For the Years Ended December 31,   2011     2010     2009  

U.S. statutory income tax rate

    35.0     35.0     35.0

State taxes, net of federal deduction

    0.7       1.3       1.4  

Tax impact of foreign operations, including foreign tax credits

    (11.0     (10.6     (9.9

Tax benefit relating to U.S. manufacturer’s deduction and export sales

    (1.6     (2.6     (1.5

R&D credit

    (0.5     (0.8     (0.3

Goodwill impairment

          8.3       2.6  

Other

    (0.2           0.8  

 

   

 

 

   

 

 

 

Effective income tax rate

    22.4     30.6     28.1

 

   

 

 

   

 

 

 
Components of deferred taxes

The components of deferred taxes consisted of the following (in millions):

 

                 
As of December, 31   2011     2010  

Deferred tax assets:

               

Inventory

  $ 218.5     $ 234.3  

Net operating loss carryover

    23.5       22.0  

Tax credit carryover

    16.9       32.5  

Capital loss carryover

    4.0        

Accrued liabilities

    116.1       91.3  

Share-based compensation

    98.3       85.4  

Unremitted earnings of foreign subsidiaries

    103.9       104.2  

Other

    73.1       59.2  

 

   

 

 

 

Total deferred tax assets

    654.3       628.9  

Less: Valuation allowances

    (40.3     (39.9

 

   

 

 

 

Total deferred tax assets after valuation

    614.0       589.0  

 

   

 

 

 

Deferred tax liabilities:

               

Fixed assets

  $ (111.6   $ (101.7

Intangible assets

    (148.9     (151.9

Accrued liabilities

    (1.0     (0.7

Other

          (1.0

 

   

 

 

 

Total deferred tax liabilities

    (261.5     (255.3

 

   

 

 

 

Total net deferred tax assets

  $ 352.5     $ 333.7  

 

   

 

 

 
Tabular reconciliation of the total amounts of unrecognized tax benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions):

 

                         
For the Years Ended December 31,   2011     2010     2009  

Balance at January 1

  $ 168.0     $ 150.4     $ 129.5  

Increases related to prior periods

    11.4       23.1       32.9  

Decreases related to prior periods

    (49.0     (6.1     (26.7

Increases related to current period

    34.4       23.7       17.4  

Decreases related to settlements with taxing authorities

    (4.8     (14.1     (1.1

Decreases related to lapse of statute of limitations

    (1.6     (9.0     (1.6

 

   

 

 

   

 

 

 

Balance at December 31

  $ 158.4     $ 168.0     $ 150.4