Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.2
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Summary of components of earnings before income taxes and the consolidated income tax provision
  Year Ended September 30,
  2020 2019 2018
Domestic $ (40.3) $ 44.1  $ 33.7 
Foreign 21.8  132.6  112.8 
Total (loss) earnings before income taxes $ (18.5) $ 176.7  $ 146.5 
Income tax expense:      
Current provision:      
Federal $ (2.4) $ 11.1  $ 38.2 
State 3.0  4.5  6.7 
Foreign 53.8  28.2  16.7 
Total current provision 54.4  43.8  61.6 
Deferred (benefit) provision:      
Federal (6.6) (3.8) (7.5)
State (2.4) (0.2) 0.5 
Foreign (10.5) 10.7  10.7 
Total deferred (benefit) provision (19.5) 6.7  3.7 
Income tax expense $ 34.9  $ 50.5  $ 65.3 
Schedule of reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate
  Year Ended September 30,
  2020 2019 2018
Federal statutory rates 21.0  % 21.0  % 24.5  %
Adjustments resulting from the tax effect of:      
State income taxes, net of federal benefit 0.3  1.6  2.4 
Foreign income tax rate differential (14.3) 4.1  (0.6)
Domestic manufacturer’s deduction —  —  (1.2)
Share-based compensation (19.1) (1.2) (1.6)
Foreign distribution taxes (54.7) 1.0  (1.7)
Valuation allowance (2.1) (0.4) (0.7)
Goodwill impairment charge (14.1) —  11.2 
Impact of inclusion of foreign income (1)
(101.1) —  — 
Transition tax —  —  17.8 
Deferred tax impact of rate change —  —  (9.4)
Impact of foreign legislated rate changes 41.5  —  — 
Transaction costs (8.7) —  — 
Unrecognized tax benefits (4.0) 1.9  2.1 
Other, net (33.3) 0.6  1.8 
Effective income tax rate (188.6) % 28.6  % 44.6  %
Summary of deferred income tax balance sheet accounts
  September 30,
  2020 2019
Deferred tax assets:    
Employee benefit accruals $ 30.9  $ 40.1 
Loss and tax credit carryforwards 51.4  10.9 
Interest limitation carryforward 26.0  18.3 
Operating lease liabilities 31.3  — 
Rebates and other discounts 4.6  4.5 
Self-insurance reserves 2.8  2.1 
Inventory, net 4.8  2.6 
Other, net 16.8  11.7 
Total deferred tax assets before valuation allowance 168.6  90.2 
Less valuation allowance (21.0) (0.5)
Total deferred tax assets, net 147.6  89.7 
Deferred tax liabilities:    
Depreciation (27.6) (10.3)
Amortization (202.3) (89.4)
Operating right-of-use assets (32.0) — 
Long-term contracts and customer prepayments (43.8) (46.8)
Unremitted earnings of foreign operations (13.2) (1.2)
Other, net (1.4) (0.9)
Total deferred tax liabilities (320.3) (148.6)
Deferred tax liabilities, net $ (172.7) $ (58.9)
Amounts recorded in the Consolidated Balance Sheets:    
Deferred tax assets, non-current 13.1  2.7 
Deferred tax liabilities, non-current (185.8) (61.6)
Total $ (172.7) $ (58.9)
Activity within the reserve for unrecognized tax benefits
A reconciliation of the unrecognized tax benefits is as follows:
  September 30,
  2020 2019 2018
Balance at September 30 $ 9.7  $ 12.1  $ 9.9 
Assumed and recognized tax positions as part of Milacron acquisition 29.2  —  — 
Additions for tax positions related to the current year 0.6  0.3  0.3 
Additions for tax positions of prior years 0.7  4.0  2.8 
Reductions for tax positions of prior years (4.4) (0.4) (0.6)
Settlements (0.1) (6.3) (0.3)
Balance at September 30 $ 35.7  $ 9.7  $ 12.1