Taxes Based on Income

6 Months Ended

Jun. 30, 2012

Taxes Based on Income [Abstract]

Taxes Based on Income

Note 11. Taxes Based on Income

The effective tax rate for continuing operations was approximately 33% and 31% for the three and six months ended June 30, 2012, respectively, and approximately 39% and 40% for the three and six months ended July 2, 2011, respectively. The effective tax rate for the three and six months ended June 30, 2012 included discrete tax benefits of $2.7 million and $6.4 million, respectively, for releases of certain tax reserves due to lapses of applicable statutory periods and adjustments to foreign income taxes. The effective tax rate for the three and six months ended July 2, 2011 included discrete tax expense items of $2.9 million and $6.2 million, respectively, primarily related to an adjustment to foreign income taxes and increases in certain tax reserves and allowances.

The following table summarizes the Company’s income from continuing operations before taxes, provision for income taxes from continuing operations, and effective tax rates:

	Three Months Ended						Six Months Ended
(In millions)	June 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
Income from continuing operations before taxes		$  77.0			$  87.1			$  142.1			$  149.7
Provision for income taxes		25.7			34.0			44.5			59.7
Effective tax rate		33	%		39	%		31	%		40	%

The amount of income taxes the Company pays is subject to ongoing audits by taxing jurisdictions around the world. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. The Company believes that it has adequately provided for reasonably foreseeable outcomes related to these matters. However, the Company’s future results may include favorable or unfavorable adjustments to its estimated tax liabilities in the period the assessments are made or resolved, which may impact the Company’s effective tax rate. With some exceptions, the Company and its subsidiaries are no longer subject to income tax examinations by tax authorities for years prior to 2005.

It is reasonably possible that, during the next 12 months, the Company may realize a decrease in its gross uncertain tax positions of approximately $9 million, primarily as a result of cash payments and closing tax years. The Company anticipates that it is reasonably possible that cash payments of up to $1 million relating to gross uncertain tax positions could be paid within the next 12 months.

In addition, the Company expects to make cash payments of approximately $10 million as a result of the settlement of certain foreign tax audits that has been agreed with tax authorities but not finally assessed as of June 30, 2012.