content_image/214542.jpg content_image/214541.jpg content_image/214543.jpg content_image/214544.jpg
## Note 3 – Income Taxes 

## Provision for Income Taxes 

The Company’s income (loss) from continuing operations before taxes is as follows: 

<img src='content_image/214542.jpg'>

The Company’s provision (benefit) for income taxes from continu- ing operations consists of: 

<img src='content_image/214541.jpg'>

A reconciliation of the statutory U.S. federal tax rate to the Compa- ny’s effective tax rate from continuing operations is as follows: 

<img src='content_image/214543.jpg'>

The Company has not provided taxes on the undistributed earnings of its non-U.S. subsidiaries as of December 31, 2012 because it intends to permanently reinvest these earnings outside the U.S. As of December 31, 2012, the cumulative amount of non-U.S. earnings upon which taxes have not been provided is approximately $405 million. If these earnings were distributed in the form of dividends or otherwise, the Company would be subject to income and with- holding taxes. However, it is not practical to estimate the amount of tax payable upon the remittance of these earnings because such tax depends upon circumstances existing when the remittance occurs. 

In 2012, 2011 and 2010, income tax benefits attributable to equity- based compensation transactions exceeded amounts recorded at grant date fair market value and, accordingly, were credited to equity in the amounts of $3.6 million, $6.1 million and $3.3 mil- lion, respectively. 

In 2012, 2011 and 2010, tax provision (benefit) of $(13.4) million, $(44.1) million, and $6.6 million, respectively, primarily related to changes in pension and post-retirement plan assets and benefit obligations, was recorded to accumulated other comprehensive income. 

## Deferred Taxes and Valuation Allowances 

The components of deferred tax assets and liabilities included on the Company’s Consolidated Balance Sheets are as follows: 

<img src='content_image/214544.jpg'>

