INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES [Abstract]

Significant components of income taxes attributable to continuing operations

The significant components of income taxes attributable to continuing operations consisted of (in thousands):

	2012			2011			2010
Current:
Federal	$	(68,880	)	$	(39,708	)	$	16,959
Foreign		23,931			15,368			32,402
State		100			566			(908	)
Total current provision (benefit)		(44,849	)		(23,774	)		48,453
Deferred		26,074			18,115			43,481
Total provision (benefit)	$	(18,775	)	$	(5,659	)	$	91,934

Income tax expense (benefit), income tax reconciliation

Differences between our provision for income taxes and the amount determined by applying our applicable statutory rate to income before income taxes are set forth below (dollars in thousands):

	2012			2011			2010
Statutory rate		24.5	%		35	%		35	%
Tax at statutory rate	$	44,950		$	45,528		$	125,837
Increase (decrease) due to:
Capitalized interest transactions		(39,204	)		-			-
Foreign rate differential		(29,223	)		(46,720	)		(25,711	)
Deferred intercompany gain/loss		(8,749	)		(12,629	)		-
Change in valuation allowance		2,806			-			-
Prior period adjustments		4,482			(1,398	)		-
Unrecognized tax benefits		2,463			3,895			-
Excess compensation		1,432			1,447			-
Extraterritorial income exclusion		(45	)		(522	)		-
Domestic production activities		-			-			(6,372	)
Other, net		1,259			4,740			(1,820	)
Total provision	$	(19,829	)	$	(5,659	)	$	91,934

Deferred tax assets and liabilities

Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities at December 31 were as follows (in thousands):

	2012					2011
	Current		Noncurrent			Current		Noncurrent
Deferred tax assets:
Accrued employee benefit plan costs	$	27,011	$	118,961		$	26,519	$	72,467
U.S. net operating loss		-		30,623			-		64,495
U.K. net operating loss		-		7,889			-		14,722
Other		5,567		21,154			4,874		10,861
Total deferred tax assets		32,578		178,627			31,393		162,545
Less: valuation allowance		-		(17,528	)		-		(14,722	)
Deferred tax assets, net of valuation allowance		32,578		161,099			31,393		147,823
Deferred tax liabilities:
Property, plant and equipment		-		590,334			-		615,319
Other		5,950		44,637			4,370		8,947
Total deferred tax liabilities		5,950		634,971			4,370		624,266
Net deferred tax asset (liability)	$	26,628	$	(473,872	)	$	27,023	$	(476,443	)

Changes in gross unrecognized tax benefits

The following table sets forth the changes in the Company's gross unrecognized tax benefits during the years ended December 31 (in thousands):

	2012		2011		2010
Gross unrecognized tax benefits - beginning of year	$	55,300	$	51,000	$	54,200
Gross increases - tax positions in prior period		700		4,300		-
Gross decreases - tax positions in prior period		-		-		(1,300	)
Gross increases - current period tax positions		2,900		-		-
Settlements		-		-		-
Lapse of statute of limitations		-		-		(1,900	)
Gross unrecognized tax benefit - end of year	$	58,900	$	55,300	$	51,000

Schedule of Income before Income Tax

Income from continuing operations before income taxes consisted of the following:

	2012		2011			2010
U.S.	$	9,800	$	(1,200	)	$	260,300
Non-U.S.		173,700		131,300			118,700