Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Summary of components of earnings before income taxes and the consolidated income tax provision
 
Year Ended September 30,
 
2018
 
2017
 
2016
Domestic
$
33.7

 
$
108.2

 
$
99.3

Foreign
112.8

 
80.1

 
64.8

Total earnings before income taxes
$
146.5

 
$
188.3

 
$
164.1

 
 
 
 
 
 
Income tax expense:
 

 
 

 
 

Current provision:
 

 
 

 
 

Federal
$
38.2

 
$
0.5

 
$
28.9

State
6.7

 
(0.4
)
 
5.1

Foreign
16.7

 
22.7

 
18.0

Total current provision
61.6

 
22.8

 
52.0

 
 
 
 
 
 
Deferred provision (benefit):
 

 
 

 
 

Federal
(7.5
)
 
32.0

 
3.2

State
0.5

 
5.0

 
(0.7
)
Foreign
10.7

 
0.1

 
(7.2
)
Total deferred provision (benefit)
3.7

 
37.1

 
(4.7
)
Income tax expense
$
65.3

 
$
59.9

 
$
47.3

Schedule of reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate
 
Year Ended September 30,
 
2018
 
2017
 
2016
Federal statutory rates
24.5
 %
 
35.0
 %
 
35.0
 %
Adjustments resulting from the tax effect of:
 

 
 

 
 

State income taxes, net of federal benefit
2.4

 
1.6

 
2.0

Foreign income tax rate differential
(0.6
)
 
(5.8
)
 
(6.7
)
Domestic manufacturer’s deduction
(1.2
)
 
(0.3
)
 
(1.9
)
Share-based compensation
(1.6
)
 
(1.1
)
 
(1.5
)
Foreign distribution taxes
(1.7
)
 
2.7

 

Valuation allowance
(0.7
)
 
(1.3
)
 
1.7

Goodwill impairment charge
11.2

 

 

Transition tax
17.8

 

 

Deferred tax impact of rate change
(9.4
)
 

 

Unrecognized tax benefits
2.1

 

 

Other, net
1.8

 
1.0

 
0.2

Effective income tax rate
44.6
 %
 
31.8
 %
 
28.8
 %
Summary of deferred income tax balance sheet accounts
 
September 30,
 
2018
 
2017
Deferred tax assets:
 

 
 

Employee benefit accruals
$
29.0

 
$
46.0

Loss and tax credit carryforwards
37.3

 
43.7

Rebates and other discounts
4.4

 
5.8

Self-insurance reserves
2.5

 
4.6

Inventory, net
2.0

 
3.1

Other, net
8.5

 
12.6

Total deferred tax assets before valuation allowance
83.7

 
115.8

Less valuation allowance
(1.8
)
 
(3.1
)
Total deferred tax assets, net
81.9

 
112.7

Deferred tax liabilities:
 

 
 

Depreciation
(8.3
)
 
(11.6
)
Amortization
(105.3
)
 
(134.9
)
Long-term contracts and customer prepayments
(38.9
)
 
(28.9
)
Unremitted earnings of foreign operations
(0.5
)
 
(4.2
)
Other, net
(1.8
)
 
(5.1
)
Total deferred tax liabilities
(154.8
)
 
(184.7
)
Deferred tax liabilities, net
$
(72.9
)
 
$
(72.0
)
 
 
 
 
Amounts recorded in the balance sheets:
 

 
 

Deferred tax assets, non-current
3.5

 
3.7

Deferred tax liabilities, non-current
(76.4
)
 
(75.7
)
Total
$
(72.9
)
 
$
(72.0
)
Activity within the reserve for unrecognized tax benefits
A reconciliation of the unrecognized tax benefits is as follows:
 
September 30,
 
2018
 
2017
 
2016
Balance at September 30
$
9.9

 
$
7.7

 
$
7.8

Additions for tax positions related to the current year
0.3

 
0.7

 
0.2

Additions for tax positions of prior years
2.8

 
3.4

 
1.7

Reductions for tax positions of prior years
(0.6
)
 
(1.5
)
 
(2.0
)
Settlements
(0.3
)
 
(0.4
)
 

Balance at September 30
$
12.1

 
$
9.9

 
$
7.7