Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense Income tax expense consists of the following components: 
 
Years Ended 31 March
(Millions of US dollars) 2023 2022 2021
Income before income taxes:
Domestic $ 270.0  $ 295.0  $ 241.9 
Foreign 453.5  348.1  170.1 
Income before income taxes: $ 723.5  $ 643.1  $ 412.0 
Income tax expense:
Current:
Domestic $ 42.9  $ 44.4  $ 38.5 
Foreign 81.4  53.9  (8.6)
Current income tax expense 124.3  98.3  29.9 
Deferred:
Domestic 11.8  9.4  1.4 
Foreign 75.4  76.3  117.9 
Deferred income tax expense 87.2  85.7  119.3 
Total income tax expense $ 211.5  $ 184.0  $ 149.2 
Reconciled Tax at Statutory Rates
Income tax expense is reconciled to the tax at the statutory rates as follows:
 
Years Ended 31 March
(Millions of US dollars) 2023 2022 2021
Income tax expense computed at the statutory tax rates $ 135.1  $ 109.7  $ 58.1 
US state income taxes, net of the federal benefit 10.6  9.2  8.0 
Asbestos - effect of foreign exchange (13.3) (3.5) 36.8 
Expenses not deductible 3.3  1.9  2.0 
Stock and executive compensation 1.9  (0.8) 5.5 
Foreign taxes on domestic income 61.2  55.2  49.8 
Prior year tax adjustments (0.1) (1.2) (5.9)
Taxes on foreign income 12.0  9.9  1.6 
US net operating loss carryback —  —  (4.9)
Other items 0.8  3.6  (1.8)
Total income tax expense $ 211.5  $ 184.0  $ 149.2 
Effective tax rate 29.2  % 28.6  % 36.2  %
Deferred Tax Assets and Liabilities
The tax effects of significant temporary differences creating deferred tax assets and liabilities were:
  31 March
(Millions of US dollars) 2023 2022
Deferred tax assets:
Intangible assets $ 879.0  $ 958.2 
Asbestos liability 298.6  360.1 
Tax credit carryforwards 115.0  118.7 
Other provisions and accruals 85.3  73.3 
Net operating loss carryforwards 75.4  66.2 
Total deferred tax assets 1,453.3  1,576.5 
Valuation allowance (258.0) (261.2)
Total deferred tax assets net of valuation allowance 1,195.3  1,315.3 
Deferred tax liabilities:
Depreciable and amortizable assets (167.3) (164.0)
Other (67.4) (59.0)
Total deferred tax liabilities (234.7) (223.0)
Total deferred taxes, net $ 960.6  $ 1,092.3