Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income (loss) from continuing operations before provision (benefit) for taxes and discontinued operations by domestic and foreign source

     Income from operations before provision for taxes by domestic and foreign source is as follows:

Thousands of Dollars		2012		2011		2010
Domestic	$	56,905	$	46,950	$	49,484
Foreign		50,141		50,790		49,365
Income from operations  before provision for      income taxes	$	107,046	$	97,740	$	98,849

Provision (benefit) for taxes on income

The provision (benefit) for taxes on income consists of the following:

Thousands of Dollars				2012			2011			2010
Domestic
Taxes currently payable
	Federal		$	14,838		$	11,793		$	12,287
	State and local			1,318			2,145			1,861
Deferred income taxes				3,236			(1,886	)		411
	Domestic tax provision			19,392			12,052			14,559
Foreign
Taxes currently payable				13,364			12,297			13,043
Deferred income taxes				(1,979	)		3,136			1,361
	Foreign tax provision			11,385			15,433			14,404
		Total tax provision	$	30,777		$	27,486		$	28,963

Reconciliation of statutory federal tax rate to effective federal tax rate

     The major elements contributing to the difference between the U.S. federal statutory tax rate and the consolidated effective tax rate are as follows:

Percentages		2012		2011		2010
U.S. statutory tax rate		35.0	%	35.0	%	35.0	%
Depletion		(3.9	)	(4.1	)	(3.8	)
Difference between tax provided on foreign earnings
	and the U.S. statutory rate	(4.1	)	(1.0	)	(3.1	)
Change in Mexican law		(0.5	)	(0.2	)	0.3
State and local taxes, net of Federal tax benefit		1.5		1.2		1.2
Tax credits and foreign dividends		(0.1	)	(0.1	)	(0.1	)
Change in valuation allowance		(1.1	)	(1.2	)	(0.1	)
Impact of uncertain tax positions		0.9		(2.8	)	(1.5	)
Impact of officer's non-deductible compensation		2.1		2.9		1.2
Other		(1.1	)	(1.6	)	0.2
Consolidated effective tax rate		28.8	%	28.1	%	29.3	%

Deferred tax assets and liabilities

     The Company believes that its accrued liabilities are sufficient to cover its U.S. and foreign tax contingencies.  The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

Thousands of Dollars		2012		2011
Deferred tax assets:
Accrued expenses	$	12,200	$	9,752
Net operating loss carry forwards		11,414		11,083
Pension and post-retirement benefits costs		43,828		40,584
Other		12,850		11,163
Valuation allowance.		(5,666)		(6,860	)
Total deferred tax assets	$	74,626	$	65,722

Thousands of Dollars		2012		2011
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation	$	10,333	$	4,832
Intangible assets		12,412		11,387
Mexican tax recapture		429		1,021
Other		3,983		4,067
Total deferred tax liabilities		27,157		21,307
Net deferred tax assets	$	47,469	$	44,415

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     The current and long-term portion of net deferred tax assets is as follows:

Thousands of Dollars		2012		2011
Net deferred tax assets, current	$	6,253	$	4,903
Net deferred assets, long term		41,216		39,512
	$	47,469	$	44,415

Activity related to unrecognized tax benefits

     The following table summarizes the activity related to our unrecognized tax benefits:

(Thousands of Dollars)		2012		2011
Balance as of January 1, 2012	$	3,912	$	6,473
Increases related to current year positions		696		563
Increases (decreases)  related to new judgments		206		(373	)
Decreases related to audit settlements and statute expirations		--		(2,751	)
Other		--		--
Balance as of December 31, 2012	$	4,814	$	3,912