88 assets will be realized. Future deterioration in the New Zealand unit's profitability could result in the need to record a valuation allowance against its deferred tax assets in a subsequent period. As of December 31, 2012 , the Company has recorded approximately $ 74.3 million of valuation allowance to adjust deferred tax assets to the amount judged more likely than not to be realized. The valuation allowance is primarily attributable to certain foreign temporary dif ferences and tax loss and tax credit carryforwards due to uncertainties regarding the ability to obtain future tax benefits for these tax attributes. The Company has recognized deferred tax assets of approximately $ 7.9 million for tax loss carryforwards in various taxing jurisdictions as follows (in millions): Tax Loss Jurisdiction Carryforward Expiration New Zealand $ 11.2 Indefinite Spain 6.9 2026 - 2027 Colombia 5.6 Indefinite Others 3.0 Various Total $ 26.7   The Company also has various foreign subsidiaries with approximately $ 237 million of tax loss carryforwards in various jurisdictions that are subject to a valuation allowance due to statutory limitations on utilization, uncertainty of future profitability , and other relevant factors. The Company does not provide for deferred taxes on the excess of the financial reporting over the tax basis in investments in foreign subsidiaries that are essentially permanent in duration. That excess was approximately $ 800 million as of December 31, 2012 . The determination of the additional tax expense that would be incurred upon repatriation of assets or disposition of foreign subsidiaries is not practical. The Company applies ASC 740 - Income T axes in determining unrecognized tax benefits. ASC 740 - Income T axes prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the year: (in millions) Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Unrecognized Tax Benefit — Beginning balance $ 58.8 $ 66.1 $ 79.4 Gross Increases — Tax Positions in Prior Period 3.4 2.1 4.7 Gross Decreases — Tax Positions in Prior Period (4.2 ) (4.9 ) (10.3 ) Gross Increases — Tax Positions in Current Period 14.9 8.0 14.2 Gross Increases — Business Combinations — — — Settlements — (0.3 ) — Lapse of Statute of Limitations (9.6 ) (11.4 ) (22.9 ) Foreign Currency Translation 0.7 (0.8 ) 1.0 Unrecognized Tax Benefit — Ending Balance $ 64.0 $ 58.8 $ 66.1 Included in the balance of unrecognized tax benefits at December 31, 2012 , 201 1 and 2010 are $ 61.5 million , $ 54.3 million and $ 58.3 million , respectively , of tax benefits that, if recognized, would af fect the ef fective tax rate. Also included in the balance of unrecognized tax benefits at December 31, 2012 , 201 1 and 2010 are $ 2.5 million , $ 4.5 million and $ 7.8 million of tax benefits that, if recognized, would result in adjustments to deferred taxes. The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. Related to the unrecognized tax benefits noted above, the Company accrued penalties of $ 1.2 million and interest of $ 2.4 million during 2012 and in total, as of December 31, 2012 , has recognized a liability for penalties of $ 7.8 million and interest of $ 13.8 million . During 201 1 and 2010 , the Company accrued penalties of $ (1.1) million and $ 0.6 million , respectively , and interest of $ 0.7 million and $ (3.7) million , respectively , and in total, as of December 31, 201 1 and 2010 , had recognized liabilities for penalties of $ 6.5 million and $ 7.8 million , respectively and interest of $ 1 1.4 million and $ 10.9 million , respectively . T able of Contents