Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Summary of components of earnings before income taxes and the consolidated income tax provision
 
Year Ended September 30,
 
2019
 
2018
 
2017
Domestic
$
44.1

 
$
33.7

 
$
108.2

Foreign
132.6

 
112.8

 
80.1

Total earnings before income taxes
$
176.7

 
$
146.5

 
$
188.3

 
 
 
 
 
 
Income tax expense:
 

 
 

 
 

Current provision:
 

 
 

 
 

Federal
$
11.1

 
$
38.2

 
$
0.5

State
4.5

 
6.7

 
(0.4
)
Foreign
28.2

 
16.7

 
22.7

Total current provision
43.8

 
61.6

 
22.8

 
 
 
 
 
 
Deferred provision (benefit):
 

 
 

 
 

Federal
(3.8
)
 
(7.5
)
 
32.0

State
(0.2
)
 
0.5

 
5.0

Foreign
10.7

 
10.7

 
0.1

Total deferred provision (benefit)
6.7

 
3.7

 
37.1

Income tax expense
$
50.5

 
$
65.3

 
$
59.9


Schedule of reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate
 
Year Ended September 30,
 
2019
 
2018
 
2017
Federal statutory rates
21.0
 %
 
24.5
 %
 
35.0
 %
Adjustments resulting from the tax effect of:
 

 
 

 
 

State income taxes, net of federal benefit
1.6

 
2.4

 
1.6

Foreign income tax rate differential
4.1

 
(0.6
)
 
(5.8
)
Domestic manufacturer’s deduction

 
(1.2
)
 
(0.3
)
Share-based compensation
(1.2
)
 
(1.6
)
 
(1.1
)
Foreign distribution taxes
1.0

 
(1.7
)
 
2.7

Valuation allowance
(0.4
)
 
(0.7
)
 
(1.3
)
Goodwill impairment charge

 
11.2

 

Transition tax

 
17.8

 

Deferred tax impact of rate change

 
(9.4
)
 

Unrecognized tax benefits
1.9

 
2.1

 

Other, net
0.6

 
1.8

 
1.0

Effective income tax rate
28.6
 %
 
44.6
 %
 
31.8
 %

Summary of deferred income tax balance sheet accounts
 
September 30,
 
2019
 
2018
Deferred tax assets:
 

 
 

Employee benefit accruals
$
40.6

 
$
29.0

Loss and tax credit carryforwards
11.3

 
23.1

Interest limitation carryforward
18.3

 
14.2

Rebates and other discounts
4.5

 
4.4

Self-insurance reserves
2.1

 
2.5

Inventory, net
2.8

 
2.0

Other, net
15.1

 
8.5

Total deferred tax assets before valuation allowance
94.7

 
83.7

Less valuation allowance
(0.9
)
 
(1.8
)
Total deferred tax assets, net
93.8

 
81.9

Deferred tax liabilities:
 

 
 

Depreciation
(10.8
)
 
(8.3
)
Amortization
(105.0
)
 
(105.3
)
Long-term contracts and customer prepayments
(46.8
)
 
(38.9
)
Unremitted earnings of foreign operations
(1.2
)
 
(0.5
)
Other, net
(0.9
)
 
(1.8
)
Total deferred tax liabilities
(164.7
)
 
(154.8
)
Deferred tax liabilities, net
$
(70.9
)
 
$
(72.9
)
 
 
 
 
Amounts recorded in the balance sheets:
 

 
 

Deferred tax assets, non-current
2.7

 
3.5

Deferred tax liabilities, non-current
(73.6
)
 
(76.4
)
Total
$
(70.9
)
 
$
(72.9
)

Activity within the reserve for unrecognized tax benefits
A reconciliation of the unrecognized tax benefits is as follows:
 
September 30,
 
2019
 
2018
 
2017
Balance at September 30
$
12.1

 
$
9.9

 
$
7.7

Additions for tax positions related to the current year
0.3

 
0.3

 
0.7

Additions for tax positions of prior years
4.0

 
2.8

 
3.4

Reductions for tax positions of prior years
(0.4
)
 
(0.6
)
 
(1.5
)
Settlements
(6.3
)
 
(0.3
)
 
(0.4
)
Balance at September 30
$
9.7

 
$
12.1

 
$
9.9