Income Tax Matters

9 Months Ended

Sep. 30, 2013

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



	Quarter Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013			2012
Domestic	$	14.7		$	17.7	$	41.1		$	45.8
Foreign	(4.4		)	0.5		(10.9		)	1.9
Total	$	10.3		$	18.2	$	30.2		$	47.7

The income tax provision for the three months ended September 30, 2013 and September 30, 2012 was $10.3 and $18.2, reflecting an effective tax rate of 28.9% and 38.4%, respectively. The difference between the effective tax rate and the projected blended statutory tax rate for the three months ended September 30, 2013 was primarily the result of a decrease from a bilateral Advanced Pricing Agreement between Canada and the U.S for $2.7, resulting in a 7.7% decrease in the effective rate. As a result of the advanced pricing agreement, a refund of $2.9 which represents amounts previously paid against Canadian accrued taxes, is expected to be received within the next twelve months. Such amount was included in Other receivables at September 30, 2013.

The difference between the effective tax rate and the projected blended statutory tax rate for the three months ended September 30, 2012 was primarily the result of an increase in unrecognized tax benefits, including interest and penalties, of $0.3, resulting in a 0.7% increase in the effective tax rate.

The income tax provision for the nine months ended September 30, 2013 and September 30, 2012 was $30.2 and $47.7, reflecting an effective tax rate of 28.1% and 38.4%, respectively. The difference between the effective tax rate and the projected blended statutory tax rate for the nine months ended September 30, 2013 was primarily the result of (i) a decrease in unrecognized tax benefits, including interest and penalties, of $7.7, resulting in a 7.1% decrease in the effective tax rate due to an audit settlement with the Canada Revenue Agency Competent Authority on February 28, 2013 for the 1998-2004 tax years and (ii) a decrease from a bilateral Advanced Pricing Agreement between Canada and the U.S for $2.7, resulting in a 2.5% decrease in the effective rate. As a result of the audit settlement and advanced pricing agreement with Canada, a refund of $10.7, which represents amounts previously paid against Canadian accrued taxes, is expected to be received within the next twelve months. Such amount was included in Other receivables at September 30, 2013.

The difference between the effective tax rate and the projected blended statutory tax rate for the nine months ended September 30, 2012 was primarily the result of an increase in unrecognized tax benefits, including interest and penalties, of $0.7, resulting in a 0.6% increase in the effective tax rate.

The Company’s gross unrecognized benefits relating to uncertain tax positions were $6.9 and $15.7 at September 30, 2013 and December 31, 2012, respectively, of which, $5.8 and $14.6 would impact the effective tax rate at September 30, 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 $3.0 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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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