Tecumseh Products 2012 Annual Report Download - page 56

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55
Provision for (benefit from) income taxes from continuing operations consists of the following:
(in millions) 2012 2011 2010
Current:
U.S. federal.............................................................................................. $ (4.6)$ (1.2)$ (1.2)
State and local.......................................................................................... (0.1) 0.1 0.1
Foreign income and withholding taxes.................................................... (0.6) 0.1 (0.3)
$(5.3)$ (1.0)$ (1.4)
Deferred:
U.S. federal.............................................................................................. (4.8)—
(15.1)
State and local.......................................................................................... — — —
Foreign..................................................................................................... (0.1) 0.1 (0.1)
(4.9) 0.1 (15.2)
Benefit from income taxes from continuing operations .......................... $ (10.2)$ (0.9)$ (16.6)
A reconciliation between the actual income tax expense (benefit) provided and the income tax expense (benefit) computed by
applying the statutory federal income tax rate of 35% to income before tax is as follows:
(in millions) 2012 2011 2010
Income taxes expense (benefit) at U.S. statutory rate............................. $ 4.5 $ (25.3)$ (27.5)
State and local income taxes ................................................................... (0.1) 0.1 0.1
Foreign tax rate differential..................................................................... 0.2 0.4 (0.1)
Valuation allowance................................................................................ (88.7) 25.7 9.9
Capital loss expiration............................................................................. 68.5 — —
Intraperiod allocation .............................................................................. (4.8) — 3.9
Release of uncertain tax positions........................................................... (4.5)— —
Tax refunds.............................................................................................. (1.0)(1.7)(1.2)
Deemed foreign dividend........................................................................ 15.7 — —
Other........................................................................................................ — (0.1)(1.7)
$(10.2)$ (0.9)$ (16.6)
Deferred income taxes reflect the effect of temporary differences between the tax basis of an asset or liability and its reported
amount in the financial statements. Provisions are also made for estimated taxes which may be incurred on the remittance of
subsidiaries’ undistributed earnings, none of which are deemed to be permanently reinvested.