Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2013
Income Taxes  
Summary of components of earnings before income taxes and the consolidated income tax provision

 

 

 

Year Ended September 30,

 

 

 

2013

 

2012

 

2011

 

Domestic

 

$

108.0

 

$

116.3

 

$

140.5

 

Foreign

 

(14.3

)

18.6

 

17.3

 

Total earnings before income taxes

 

$

93.7

 

$

134.9

 

$

157.8

 

 

 

 

 

 

 

 

 

Income tax expense:

 

 

 

 

 

 

 

Current provision:

 

 

 

 

 

 

 

Federal

 

$

37.0

 

$

27.1

 

$

45.4

 

State

 

5.5

 

4.0

 

6.1

 

Foreign

 

9.4

 

4.0

 

4.7

 

Total current provision

 

51.9

 

35.1

 

56.2

 

 

 

 

 

 

 

 

 

Deferred provision (benefit):

 

 

 

 

 

 

 

Federal

 

(2.9

)

(4.1

)

(1.6

)

State

 

(0.5

)

0.3

 

(2.4

)

Foreign

 

(20.2

)

(1.2

)

(0.5

)

Total deferred provision (benefit)

 

(23.6

)

(5.0

)

(4.5

)

Income tax expense

 

$

28.3

 

$

30.1

 

$

51.7

 

Schedule of reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate

 

 

 

Year Ended September 30,

 

 

 

2013

 

2012

 

2011

 

Federal statutory rates

 

35.0

%

35.0

%

35.0

%

Adjustments resulting from the tax effect of:

 

 

 

 

 

 

 

Permanent reinvestment of unremitted earnings

 

 

(8.1

)

 

State income taxes, net of federal benefit

 

3.5

 

2.6

 

1.8

 

Foreign income tax rate differential

 

(7.0

)

(3.1

)

(1.2

)

Domestic manufacturer’s deduction

 

(4.0

)

(2.6

)

(2.7

)

Non-deductible acquisition costs

 

1.4

 

 

 

Valuation allowance

 

0.8

 

 

(0.6

)

Other, net

 

0.5

 

(1.5

)

0.5

 

Effective income tax rate

 

30.2

%

22.3

%

32.8

%

Summary of deferred income tax balance sheet accounts

 

 

 

September 30,

 

 

 

2013

 

2012

 

Deferred tax assets:

 

 

 

 

 

Employee benefit accruals

 

$

63.9

 

$

64.1

 

Loss and tax credit carryforwards

 

39.6

 

2.7

 

Rebates and other discounts

 

5.5

 

4.4

 

Self-insurance reserves

 

6.4

 

5.9

 

Casket pricing obligation

 

2.7

 

2.9

 

Allowance for doubtful accounts

 

1.2

 

1.2

 

Inventory

 

2.0

 

2.0

 

Other, net

 

8.3

 

4.6

 

Total deferred tax assets before valuation allowance

 

129.6

 

87.8

 

Less valuation allowance

 

(2.5

)

(0.9

)

Total deferred tax assets, net

 

127.1

 

86.9

 

Deferred tax liabilities:

 

 

 

 

 

Depreciation

 

(20.9

)

(12.4

)

Amortization

 

(152.1

)

(71.8

)

Long-term contracts and customer prepayments

 

(14.6

)

 

Unremitted earnings of foreign operations

 

(0.2

)

(0.1

)

Other, net

 

(3.8

)

(1.8

)

Total deferred tax liabilities

 

(191.6

)

(86.1

)

Deferred tax assets and liabilities, net

 

$

(64.5

)

$

0.8

 

 

 

 

 

 

 

Amounts recorded in the balance sheets:

 

 

 

 

 

Deferred taxes, current

 

$

10.2

 

$

18.7

 

Deferred taxes, long-term

 

(74.7

)

(17.9

)

Deferred tax assets and liabilities, net

 

$

(64.5

)

$

0.8

 

Activity within the reserve for unrecognized tax benefits

 

 

 

 

September 30,

 

 

 

2013

 

2012

 

2011

 

Balance at October 1

 

$

2.9

 

$

7.3

 

$

7.8

 

Additions for tax positions related to the current year

 

0.2

 

0.2

 

0.2

 

Additions for tax positions of prior years

 

1.5

 

1.0

 

0.5

 

Reductions for tax positions of prior years

 

(1.2

)

(2.5

)

(1.2

)

Settlements

 

(1.3

)

(3.5

)

 

Balance attributable to acquisition of Coperion

 

4.3

 

 

 

Balance attributable to pre-spin added in current year

 

 

0.4

 

 

Balance at September 30

 

$

6.4

 

$

2.9

 

$

7.3