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Tax Positions
The amount of unrecognized tax benefits at December 31, 2013, was $23.5 million, all of which would affect the Company’s effective
tax rate if recognized. The amount of unrecognized tax benefits at December 31, 2012, was $24.2 million, all of which would affect
the Company’s effective tax rate if recognized. The amount of unrecognized tax benefits at December 31, 2011, was $23.1 million, all
of which would affect the Company’s effective tax rate if recognized.
The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of its income tax provision. As
of December 31, 2013, the Company had $1.7 million of accrued interest and penalties. For 2013, the Company recognized in its
statement of earnings a net expense of $0.1 million for interest and penalties. As of December 31, 2012, the Company had
$1.7 million of accrued interest and penalties. For 2012, the Company recognized in its statement of earnings a net benefit of
$0.7 million for interest and penalties. As of December 31, 2011, the Company had $2.4 million of accrued interest and penalties. For
2011, the Company recognized in its statement of earnings a net benefit of $0.5 million for interest and penalties.
It is reasonably possible that the total amount of unrecognized tax benefits will increase or decrease in the next 12 months. Such
changes could occur based on the expiration of various statutes of limitations or the conclusion of ongoing tax audits in various
jurisdictions around the world. If those events occur within the next 12 months, the Company estimates that its unrecognized tax
benefits amount could decrease by an amount in the range of $0 million to $7.0 million, the impact of which would affect the
Company’s effective tax rate.
Several tax years are subject to examination by major tax jurisdictions. In the U.S., federal tax years 2010 and after are subject to
examination. The Internal Revenue Service is currently auditing tax years 2010 and 2011. In France, tax years 2011 and after are
subject to examination. The French Tax Administration concluded its audit of tax years 2008 and 2009 in 2012. In Switzerland, tax
years 2009 and after are subject to examination. In most of the other countries where the Company files income tax returns, 2008 is
the earliest tax year that is subject to examination. The Company believes that adequate amounts have been provided for any
adjustments that may result from those examinations.
A reconciliation of the total beginning and ending amounts of unrecognized tax benefits, included in Accrued liabilities and Other
liabilities on the Consolidated Statements of Financial Position, is as follows:
2013 2012 2011
Balance at January 1 $ 24.2 $ 23.1 $ 25.5
Increases / (decreases) in unrecognized tax benefits as a result of tax
positions taken during a prior period 3.2 6.9 2.6
Increases / (decreases) in unrecognized tax benefits as a result of tax
positions taken during the current period 3.7 3.0 1.4
Increases / (decreases) in unrecognized tax benefits relating to
settlements with taxing authorities (2.0) (6.5) (1.6)
Reductions to unrecognized tax benefits as a result of a lapse of the
applicable statute of limitations (5.6) (2.3) (4.8)
Balance at December 31 $ 23.5 $ 24.2 $ 23.1
Other
Cash paid for income taxes, net of (refunds), was $60.8 million, $(1.4) million, and $93.3 million in 2013, 2012, and 2011,
respectively.
15. STOCKHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSS)
The Class A Common Stock is voting and exchangeable for Class B Common Stock in very limited circumstances. The Class B
Common Stock is non-voting and is convertible, subject to certain limitations, into Class A Common Stock.
At December 31, 2013, there were 804.2 million shares of authorized, unissued Class A Common Stock. Of this amount,
approximately 16.3 million shares of Class A Common Stock have been reserved under employee stock incentive plans and
nonemployee director plans. There were also 1.8 million shares of unissued and unreserved Class B Common Stock at December 31,
2013. These shares are available for a variety of general corporate purposes, including future public offerings to raise additional
capital and for facilitating acquisitions.
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