10. INCOME TAXES

The components of income (loss) from continuing operations before income taxes are as follows (in millions):

	Year Ended December 31,
	2012			2011		2010
United States	$	(66.5	)	$	43.5	$	43.5
Foreign		24.9			35.5		22.6
Total	$	(41.6	)	$	79.0	$	66.1

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

	Year Ended December 31,
	2012			2011			2010
Current:
Federal	$	(5.4	)	$	13.6		$	9.5
State		0.3			2.2			2.3
Foreign		8.1			8.4			7.1
Total current		3.0			24.2			18.9

Deferred:
Federal		(16.5	)		0.5			4.7
State		(3.3	)		0.4			(0.2	)
Foreign		(16.8	)		(0.7	)		0.1
Total deferred		(36.6	)		0.2			4.6
TOTAL	$	(33.6	)	$	24.4		$	23.5

Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations.

The Company recorded tax (benefit) expense of $(0.2) million, $0.1 million and $0.0 million in 2012, 2011 and 2010, respectively.

A reconciliation of the difference between the income tax expense and the computed income tax expense based on the Federal statutory corporate rate is as follows (in millions):

	Year Ended December 31,
	2012					2011						2010
Income tax at Federal statutory rate	$	(14.5	)	35.0	%		$	27.6		35.0	%		$	23.1		35.0	%
Foreign taxes at rates different from the U.S. rate		(3.7	)	8.9				(0.9	)	(1.1	)			(1.4	)	(2.0	)
State and local income taxes and changes in valuation allowances, net of federal tax benefit		(2.1	)	(5.0	)			1.3		1.6				1.4		2.0
Changes in valuation allowances		(13.3	)	(31.9	)			(3.7	)	(4.7	)			(0.1	)	(0.2	)
Non-deductible items		0.1		0.2				0.1		0.1				0.7		1.1
Other items, net		(0.1	)	0.2				-		-				(0.2	)	(0.3	)
Income tax at Federal statutory rate	$	(33.6	)	80.8	%		$	24.4		30.9	%		$	23.5		35.6	%

The deferred tax assets and liabilities are comprised of the following (in millions):

	December 31,
	2012			2011
Assets:
Current:
Accrued expenses and other liabilities	$	12.1		$	13.6
Inventory		6.2			2.6
Valuation allowances		(2.2	)		(1.5	)
Total current assets	$	16.1		$	14.7

Non-current:
Net operating loss and credit carryforwards	$	25.7		$	23.4
Depreciation		2.6			3.6
Intangible & other		22.4			7.6
Valuation allowances		(8.9	)		(28.4	)
Total non-current assets	$	41.8		$	6.2

Liabilities :
Current :
Deductible assets	$	2.5		$	0.8
Other		-			4.3
Total current liabilities	$	2.5		$	5.1

Non-current:
Amortization	$	6.2		$	8.0
Depreciation		5.4			-
Other		-			.5
Total non-current liabilities	$	11.6		$	8.5

The Company has not provided for federal income taxes applicable to the undistributed earnings of its foreign subsidiaries of approximately $127.4 million as of December 31, 2012, since these earnings are considered indefinitely reinvested. The Company has foreign net operating loss carryforwards which expire through 2030. The Company records these benefits as assets to the extent that utilization of such assets is more likely than not; otherwise, a valuation allowance has been recorded. The Company has also provided valuation allowances for certain state deferred tax assets and net operating loss carryforwards where it is not likely they will be realized.

As of December 31, 2012, the Company has approximately $1.2 million in foreign tax credit carryforwards expiring in years through 2022 and various amounts of state and foreign net operating loss carryforwards expiring through 2032. The Company has recorded valuation allowances of approximately $11.1 million including, valuations against federal tax credits of $1.2 million, tax effected net operating loss carryforwards in foreign and state jurisdictions of $5.0 million and $4.2 million, respectively, and deductible temporary differences of $0.7 million for state deductible temporary differences.

The Company is routinely audited by federal, state and foreign tax authorities with respect to its income taxes. The Company regularly reviews and evaluates the likelihood of audit assessments. The Company's federal income tax returns have been audited through 2009. The Company has not signed any consents to extend the statute of limitations for any subsequent years. The Company's significant state tax returns have been audited through 2006. The Company considers its significant tax jurisdictions in foreign locations to be the United Kingdom, Canada, France, Italy and Germany. The Company remains subject to examination in the United Kingdom for years after 2010, in Canada for years after 2006, in France for years after 2007, in Italy for years after 2007, in Netherlands for years after 2005 and in Germany for years after 2007.

In accordance with the guidance for accounting for uncertainty in income taxes the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit of an uncertain tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount that is greater than 50% likely to be realized upon settlement with the tax authority. To the extent we prevail in matters for which accruals have been established or are required to pay amounts in excess of accruals, our effective tax rate in a given financial statement period could be affected. As of December 31, 2012 the Company had no uncertain tax positions. There were no accrued interest or penalty charges related to unrecognized tax benefits recorded in income tax expense in 2012 or 2011.