Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Summary of components of earnings before income taxes and the consolidated income tax provision
 
Year Ended September 30,
 
2017
 
2016
 
2015
Domestic
$
108.2

 
$
99.3

 
$
110.0

Foreign
80.1

 
64.8

 
52.3

Total earnings before income taxes
$
188.3

 
$
164.1

 
$
162.3

 
 
 
 
 
 
Income tax expense:
 

 
 

 
 

Current provision:
 

 
 

 
 

Federal
$
0.5

 
$
28.9

 
$
35.0

State
(0.4
)
 
5.1

 
4.4

Foreign
22.7

 
18.0

 
10.2

Total current provision
22.8

 
52.0

 
49.6

 
 
 
 
 
 
Deferred provision (benefit):
 

 
 

 
 

Federal
32.0

 
3.2

 
(0.5
)
State
5.0

 
(0.7
)
 
1.6

Foreign
0.1

 
(7.2
)
 
(1.6
)
Total deferred provision (benefit)
37.1

 
(4.7
)
 
(0.5
)
Income tax expense
$
59.9

 
$
47.3

 
$
49.1

Schedule of reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate
 
Year Ended September 30,
 
2017
 
2016
 
2015
Federal statutory rates
35.0
 %
 
35.0
 %
 
35.0
 %
Adjustments resulting from the tax effect of:
 

 
 

 
 

State income taxes, net of federal benefit
1.6

 
2.0

 
2.3

Foreign income tax rate differential
(5.8
)
 
(6.7
)
 
(6.2
)
Domestic manufacturer’s deduction
(0.3
)
 
(1.9
)
 
(2.2
)
Share-based compensation
(1.1
)
 
(1.5
)
 

Unremitted Earnings
2.7

 

 

Valuation allowance
(1.3
)
 
1.7

 
0.3

Other, net
1.0

 
0.2

 
1.0

Effective income tax rate
31.8
 %
 
28.8
 %
 
30.2
 %
Summary of deferred income tax balance sheet accounts
 
September 30,
 
2017
 
2016
Deferred tax assets:
 

 
 

Employee benefit accruals
$
46.0

 
$
90.1

Loss and tax credit carryforwards
43.7

 
40.6

Rebates and other discounts
5.8

 
5.7

Self-insurance reserves
4.6

 
4.6

Casket pricing obligation
1.3

 
1.6

Allowance for doubtful accounts
1.0

 
1.1

Inventory, net
3.1

 
3.2

Other, net
10.3

 
11.9

Total deferred tax assets before valuation allowance
115.8

 
158.8

Less valuation allowance
(3.1
)
 
(5.5
)
Total deferred tax assets, net
112.7

 
153.3

Deferred tax liabilities:
 

 
 

Depreciation
(11.6
)
 
(9.7
)
Amortization
(134.9
)
 
(134.9
)
Long-term contracts and customer prepayments
(28.9
)
 
(21.2
)
Unremitted earnings of foreign operations
(4.2
)
 
(0.2
)
Other, net
(5.1
)
 
(8.8
)
Total deferred tax liabilities
(184.7
)
 
(174.8
)
Deferred tax liabilities, net
$
(72.0
)
 
$
(21.5
)
 
 
 
 
Amounts recorded in the balance sheets:
 

 
 

Deferred tax assets, current
$

 
$
23.9

Deferred tax assets, non-current
3.7

 

Deferred tax liabilities, current

 
(22.8
)
Deferred tax liabilities, non-current
(75.7
)
 
(22.6
)
Total
$
(72.0
)
 
$
(21.5
)
Activity within the reserve for unrecognized tax benefits
A reconciliation of the unrecognized tax benefits is as follows:
 
September 30,
 
2017
 
2016
 
2015
Balance at September 30
$
7.7

 
$
7.8

 
$
8.4

Additions for tax positions related to the current year
0.7

 
0.2

 
0.6

Additions for tax positions of prior years
3.4

 
1.7

 
0.8

Reductions for tax positions of prior years
(1.5
)
 
(2.0
)
 
(2.0
)
Settlements
(0.4
)
 

 

Balance at September 30
$
9.9

 
$
7.7

 
$
7.8