Income Tax

9 Months Ended

Sep. 30, 2011

Income Tax

Income Tax

Note 7 Income Tax

For the nine months ended September 30, 2011, the Company recorded an income tax benefit of $17.0.  For the periods February 20 to September 30, 2010 and January 1 to February 19, 2010, the Company recorded an income tax benefit of $39.6 and an income tax expense of $54.0, respectively.  The income tax benefit for the nine months ended September 30, 2011 was driven by the Company’s jurisdictional earnings mix of foreign earnings at a low tax rate and domestic losses at a high tax rate, as well as the impairment of non-deductible goodwill and indefinite-lived intangibles.  The income tax benefit for the nine months ended September 30, 2011 was further impacted by the establishment of a valuation allowance on certain U.S. tax assets, offset by the reversal of valuation allowance previously recorded on certain of our state net operating loss carryforwards.

The income tax expense recorded this quarter reflects the limitation under U.S. GAAP that the income tax benefit recorded for the year to date loss can not be greater than the anticipated full year income tax benefit.

The income tax benefit for the period February 20 to September 30, 2010 reflects the establishment of a valuation allowance on certain tax assets and the continued tax impact of fresh start accounting.  The income tax expense for the period January 1 to February 19, 2010 primarily relates to the cancellation of indebtedness income resulting from the Company’s emergence from bankruptcy and the tax impact of fresh start accounting.

We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and may not accurately anticipate actual outcomes.  The amount of unrecognized tax benefits, including interest from uncertain tax positions, at September 30, 2011 and December 31, 2010 were $26.5 and $24.2, respectively.