Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.2
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Summary of components of earnings before income taxes and the consolidated income tax provision
  Year Ended September 30,
  2021 2020 2019
Domestic $ 64.1  $ (40.3) $ 44.1 
Foreign 289.7  21.8  132.6 
Total earnings (loss) before income taxes $ 353.8  $ (18.5) $ 176.7 
Income tax expense:      
Current provision:      
Federal $ 6.0  $ (2.4) $ 11.1 
State 4.8  3.0  4.5 
Foreign 75.6  53.8  28.2 
Total current provision 86.4  54.4  43.8 
Deferred provision (benefit):      
Federal 13.9  (6.6) (3.8)
State (0.5) (2.4) (0.2)
Foreign (1.2) (10.5) 10.7 
Total deferred provision (benefit) 12.2  (19.5) 6.7 
Income tax expense $ 98.6  $ 34.9  $ 50.5 
Schedule of reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate
A reconciliation of the statutory federal income tax rate and the effective tax rate is as follows: 
  Year Ended September 30,
  2021 2020 2019
Federal statutory rates 21.0  % 21.0  % 21.0  %
Adjustments resulting from the tax effect of:      
State income taxes, net of federal benefit 0.9  0.3  1.6 
Foreign income tax rate differential 2.0  (14.3) 4.1 
Share-based compensation 0.4  (19.1) (1.2)
Foreign distribution taxes 3.1  (54.7) 1.0 
Valuation allowance 0.3  (2.1) (0.4)
Goodwill impairment charge —  (14.1) — 
Impact of inclusion of foreign income (1)
0.5  (101.1) — 
Impact of foreign legislative rate changes —  41.5  — 
Transaction costs —  (8.7) — 
Divestitures (2.6) —  — 
Unrecognized tax benefits 1.7  (4.0) 1.9 
Other, net 0.6  (33.3) 0.6 
Effective income tax rate 27.9  % (188.6) % 28.6  %
(1)  Represents Subpart F income, GILTI (less Section 250 deduction), and FDII net of associated foreign tax credits
Summary of deferred income tax balance sheet accounts
  September 30,
  2021 2020
Deferred tax assets:    
Employee benefit accruals $ 37.6  $ 30.9 
Loss and tax credit carryforwards 38.9  51.4 
Interest limitation carryforward 23.2  26.0 
Operating lease liabilities 37.0  31.3 
Rebates and other discounts 5.2  4.6 
Self-insurance reserves 2.9  2.8 
Inventory, net 8.3  4.8 
Other, net 20.0  16.8 
Total deferred tax assets before valuation allowance 173.1  168.6 
Less valuation allowance (24.4) (21.0)
Total deferred tax assets, net 148.7  147.6 
Deferred tax liabilities:    
Depreciation (24.5) (27.6)
Amortization (210.1) (202.3)
Operating right-of-use assets (37.4) (32.0)
Long-term contracts and customer prepayments (55.3) (43.8)
Unremitted earnings of foreign operations (15.0) (13.2)
Other, net (4.1) (1.4)
Total deferred tax liabilities (346.4) (320.3)
Deferred tax liabilities, net $ (197.7) $ (172.7)
Amounts recorded in the Consolidated Balance Sheets:    
Deferred tax assets, non-current 9.0  13.1 
Deferred tax liabilities, non-current (206.7) (185.8)
Total $ (197.7) $ (172.7)
Activity within the reserve for unrecognized tax benefits
A reconciliation of the unrecognized tax benefits is as follows:
  September 30,
  2021 2020 2019
Balance at September 30 $ 35.7  $ 9.7  $ 12.1 
Assumed and recognized tax positions as part of Milacron acquisition —  29.2  — 
Additions for tax positions related to the current year 6.5  0.6  0.3 
Additions for tax positions of prior years 1.6  0.7  4.0 
Reductions for tax positions of prior years (3.3) (4.4) (0.4)
Settlements —  (0.1) (6.3)
Balance at September 30 $ 40.5  $ 35.7  $ 9.7