Income Tax Matters

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Matters

Income Tax Matters

Tax Provision. The provision for incomes taxes, for each period presented, consisted of the following:

	Quarter Ended
	March 31,
	2013			2012
Domestic	$	15.4		$	15.6
Foreign	(7.2		)	0.7
Total	$	8.2		$	16.3

The income tax provision for the quarters ended March 31, 2013 and March 31, 2012 was $8.2 and $16.3, reflecting an effective tax rate of 19.7% and 38.1%, respectively. The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2013 was the result of a decrease in unrecognized tax benefits, including interest and penalties, of $7.5, resulting in a 17.9% decrease in the effective tax rate. The decrease in unrecognized tax benefits was a result of an audit settlement with the Canada Revenue Agency Competent Authority on February 28, 2013 for the 1998-2004 tax years. As a result of the settlement, a refund of $7.9 which represents amounts previously paid against the accrued tax reserve is expected. Such amount was included in Other receivables at March 31, 2013. The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2012 was primarily the result of an increase in unrecognized tax benefits, including interest and penalties, of $0.1, resulting in a 0.3% increase in the effective tax rate.

   The Company’s gross unrecognized benefits relating to uncertain tax positions were $8.8 and $15.7 at March 31, 2013 and December 31, 2012, respectively, of which, $7.7 and $14.6 would impact the effective tax rate at March 31, 2013 and December 31, 2012, respectively, if and when the gross unrecognized tax benefits are recognized.

The Company expects its gross unrecognized tax benefits to be reduced by $3.5 within the next 12 months.

See Note 7 of Notes to Consolidated Financial Statements included in Part II, Item 8. “Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 for additional information regarding income taxes.