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Income Taxes
 9 Months Ended
Sep. 30, 2013
Income taxes

Note 13 - Income taxes:

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

2012

 

 

2013

 

 

2012

 

 

2013

 

 

(In millions)

 

Expected tax provision (benefit) at U.S. federal statutory income tax rate of 35%

$

  3.8

 

 

$

(3.1

)

 

$

  25.2

 

 

$

(15.9

)

Incremental U.S. tax and rate differences on equity in earnings

 

(1.7

)

 

 

—

 

 

 

(7.6

)

 

 

(7.4

)

Nontaxable income

 

(.1

)

 

 

(.1

)

 

 

(.8

)

 

 

(.8

)

U.S. state income taxes and other, net

 

  .1

 

 

 

  .1

 

 

 

.  6

 

 

 

  .3

 

Total

$

  2.1

 

 

$

(3.1

)

 

$

  17.4

 

 

$

(23.8

)

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

2012

 

 

2013

 

 

2012

 

 

2013

 

 

(In millions)

 

Comprehensive provision (benefit) for income taxes allocable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

  2.1

 

 

$

(3.1

)

 

$

  17.4

 

 

$

(23.8

)

Discontinued operations

 

  1.0

 

 

 

—

 

 

 

  2.5

 

 

 

—

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

(.3

)

 

 

  32.1

 

 

 

(42.6

)

 

 

  38.5

 

Currency translation

 

  4.4

 

 

 

  2.2

 

 

 

  2.0

 

 

 

(.1

)

Pension plans

 

  .3

 

 

 

  .4

 

 

 

  .9

 

 

 

  1.1

 

OPEB plans

 

—

 

 

 

(.1

)

 

 

(.2

)

 

 

(.2

)

Total

$

  7.5

 

 

$

  31.5

 

 

$

(20.0

)

 

$

  15.5

 

Tax authorities are examining certain of our U.S. and non-U.S. tax returns, including those of Kronos, and tax authorities have or may propose tax deficiencies, including penalties and interest. We cannot guarantee these tax matters will be resolved in our favor due to the inherent uncertainties involved in settlement initiatives and court and tax proceedings. We believe we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

In 2011 and 2012, Kronos received notices of re-assessment from the Canadian federal and provincial tax authorities related to the years 2002 through 2004.  Kronos objects to the re-assessments and believes the position is without merit. If the full amount of the proposed adjustment were ultimately to be assessed against Kronos, the cash tax liability would be approximately $15.7 million.  Kronos believes that it has adequate accruals for this matter.

We currently estimate that our unrecognized tax benefits will not change materially during the next twelve months.