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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Components of Income Tax Expense

Tax Expense. Income tax expense consists of the following components (in millions):



	2012			2011		2010
Current:
Federal	$	2.8		$	—	$	—
State and local	0.7			0.7		1.0
Foreign	36.2			1.7		2.0
Total current	39.7			2.4		3.0
Deferred:
Federal	99.2			78.0		66.4
State and local	(7.4		)	4.5		6.7
Foreign	105.5			38.2		33.1
Total deferred	197.3			120.7		106.2
Total income tax expense	$	237.0		$	123.1	$	109.2

Schedule of Income before Income Taxes, Domestic and Foreign

Income before income taxes consists of the following (in millions):



	2012		2011		2010
Income before income taxes:
U.S.	$	282.8	$	231.0	$	193.2
Foreign	333.6		224.0		96.0
Total income before income taxes	$	616.4	$	455.0	$	289.2

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities follow at December 31 (in millions):



	2012			2011
Liabilities:
Depreciation and amortization	$	902.9		$	849.8
Investments	73.8			75.3
Other, net	6.0			7.5
Gross deferred tax liabilities	982.7			932.6
Assets:
Loss carryovers	(54.3		)	(189.7		)
Book reserves not currently deductible for tax	(77.1		)	(94.7		)
Other, net	(53.5		)	(27.3		)
Gross deferred tax assets before valuation allowance	(184.9		)	(311.7		)
Valuation allowance	4.3			15.5
Net deferred tax assets	(180.6		)	(296.2		)
Net deferred tax liability	$	802.1		$	636.4

Schedule of Effective Income Tax Rate Reconciliation

Tax Rates. Differences between the Company’s effective income tax rate and the U.S. federal statutory income tax rate of 35% follow (in millions):



	2012			2011			2010
Income tax expense using the statutory rate in effect	$	215.7		$	159.3		$	101.2
Tax effect of:
Difference between U.S. and foreign tax rate	(18.4		)	(14.5		)	(8.4		)
Foreign exchange and inflation adjustments	42.3			(23.5		)	22.6
State and local income tax provision, net	8.4			7.0			6.6
Change in valuation allowances	(11.2		)	(1.6		)	(9.9		)
Tax credits	(3.1		)	(2.3		)	(2.3		)
Uncertain tax positions	1.9			—			—
Other, net	1.4			(1.3		)	(0.6		)
Income tax expense	$	237.0		$	123.1		$	109.2
Effective tax rate	38.4		%	27.1		%	37.8		%

Schedule of Change in Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):



	2012		2011
Balance at January 1,	$	1.7	$	1.7
Additions based on tax positions related to the current year	0.9		—
Additions for tax positions of prior years	1.0		—
Balance at December 31,	$	3.6	$	1.7

- 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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