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

Income Taxes (Tables)

v3.20.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2020
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)
 
2020
 
2019
 
2018
Income before income taxes:
 
 
 
 
 
 
Domestic
 
$
209.6

 
$
196.4

 
$
155.1

Foreign
 
78.4

 
104.2

 
19.2

Income before income taxes:
 
$
288.0

 
$
300.6

 
$
174.3

Income tax expense:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Domestic
 
$
(31.1
)
 
$
(26.6
)
 
$
(14.8
)
Foreign
 
39.8

 
(6.5
)
 
(69.4
)
Current income tax benefit (expense)
 
8.7

 
(33.1
)
 
(84.2
)
Deferred:
 
 
 
 
 
 
Domestic
 
(4.5
)
 
(1.3
)
 
(1.8
)
Foreign
 
(50.7
)
 
(37.4
)
 
57.8

Deferred income tax (expense) benefit
 
(55.2
)
 
(38.7
)
 
56.0

Total income tax expense
 
$
(46.5
)
 
$
(71.8
)
 
$
(28.2
)

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)
 
2020
 
2019
 
2018
Income tax expense computed at the statutory tax rates
 
$
(38.7
)
 
$
(48.9
)
 
$
(24.6
)
US state income taxes, net of the federal benefit
 
(5.7
)
 
(3.1
)
 
(4.3
)
Asbestos - effect of foreign exchange
 
20.9

 
14.9

 
(1.8
)
Expenses not deductible
 
(7.4
)
 
(4.9
)
 
(4.7
)
US manufacturing deduction
 
—

 
—

 
2.5

Foreign taxes on domestic income
 
(43.5
)
 
(34.5
)
 
(34.2
)
Amortization of intangibles
 
—

 
—

 
12.4

Taxes on foreign income
 
2.7

 
4.5

 
(3.0
)
Net deferred tax liability revaluation
 
(1.8
)
 
0.2

 
27.7

US net operating loss carryback
 
25.5

 
—

 
—

Other items
 
1.5

 
—

 
1.8

Total income tax expense
 
$
(46.5
)
 
$
(71.8
)
 
$
(28.2
)
Effective tax rate
 
16.1
%
 
23.9
%
 
16.2
%

Deferred Tax Assets and Liabilities
Deferred tax balances consist of the following components:
 
 
31 March
(Millions of US dollars)
 
2020
 
2019
Deferred tax assets:
 
 
 
 
Intangible assets
 
$
1,126.4

 
$
1,209.8

Asbestos liability
 
319.1

 
349.3

Other provisions and accruals
 
54.1

 
55.6

Net operating loss carryforwards
 
41.3

 
69.9

Foreign and research tax credit carryforwards
 
114.2

 
115.5

Total deferred tax assets
 
1,655.1

 
1,800.1

Valuation allowance
 
(262.9
)
 
(267.6
)
Total deferred tax assets net of valuation allowance
 
1,392.2

 
1,532.5

Deferred tax liabilities:
 
 
 
 
Depreciable and amortizable assets
 
(117.5
)
 
(132.2
)
Other
 
(48.1
)
 
(38.5
)
Total deferred tax liabilities
 
(165.6
)
 
(170.7
)
Total deferred taxes, net
 
$
1,226.6

 
$
1,361.8


Reconciliation of Unrecognized Tax Benefits and Interest and Penalties
A reconciliation of the beginning and ending amount of unrecognized tax benefits and interest and penalties are as follows:
(Millions of US Dollars)
 
Unrecognized
tax benefits
 
Interest and
Penalties
Balance at 31 March 2017
 
$
0.7

 
$
—

Additions for tax positions of the current and prior year
 
—

 
—

Balance at 31 March 2018
 
$
0.7

 
$
—

Additions for tax positions of the current year
 
0.1

 
0.1

Reductions applicable to lapse of statute of limitations
 
(0.2
)
 
—

Balance at 31 March 2019
 
$
0.6

 
$
0.1

Additions for tax positions of the prior years
 
0.1

 
—

Balance at 31 March 2020
 
$
0.7

 
$
0.1