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Income Taxes
9 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The total amount of gross unrecognized tax benefits that would reduce the Company's effective tax rates was $0.3 million at September 30, 2012 and $1.1 million at December 31, 2011. The amount of accrued interest expense included as a liability within the Company's Condensed Consolidated Statements of Financial Position was less than $0.1 million at September 30, 2012 and $0.1 million at December 31, 2011. In 2012, the Company recognized approximately $0.8 million of previously reserved tax benefits, based on the settlement of various state and federal tax issues. The tax benefit related to this recognition was reduced by tax expense of $0.6 million on pension liability previously recognized in other comprehensive income.
For the quarter ended September 30, 2011, the Company recognized net favorable income tax adjustments of approximately $3.8 million that were largely the result of reversing previously reserved tax benefits related to the loss on the sale of one of our subsidiaries in 2007 due to lapse of statute of limitations and other tax adjustments.
During the quarter ended September 30, 2012, the Company finalized its examination of Federal income tax returns for 2009 and 2010 in the United States but is currently under examination for 2007 and 2008 in Canada, as well as certain states. The Company does not expect any significant changes to its unrecognized tax benefits in the next 12 months.
As of September 30, 2012, the Company and its significant subsidiaries are subject to examination for the years after 2006 in Brazil, after 2006 in Canada, and after 2010 in the United States. The Company and its subsidiaries are subject to examination in certain states within the United States starting after 2007 and in the remaining states after 2008.