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

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2018
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)
 
2018
 
2017
 
2016
Income before income taxes:
 
 
 
 
 
 
Domestic
 
$
155.1

 
$
172.2

 
$
150.1

Foreign
 
19.2

 
194.8

 
180.4

Income before income taxes:
 
$
174.3

 
$
367.0

 
$
330.5

Income tax expense:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Domestic
 
$
(14.8
)
 
$
(15.2
)
 
$
(12.6
)
Foreign
 
(69.4
)
 
(36.0
)
 
(59.2
)
Current income tax expense
 
(84.2
)
 
(51.2
)
 
(71.8
)
Deferred:
 
 
 
 
 
 
Domestic
 
(1.8
)
 
(4.0
)
 
(5.6
)
Foreign
 
57.8

 
(35.3
)
 
(8.7
)
Deferred income tax benefit (expense)
 
56.0

 
(39.3
)
 
(14.3
)
Total income tax expense
 
$
(28.2
)
 
$
(90.5
)
 
$
(86.1
)
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)
 
2018
 
2017
 
2016
Income tax expense computed at the statutory tax rates
 
$
(24.6
)
 
$
(84.4
)
 
$
(79.1
)
US state income taxes, net of the federal benefit
 
(4.3
)
 
(3.0
)
 
(3.6
)
Asbestos - effect of foreign exchange
 
(1.8
)
 
0.8

 
(0.8
)
Expenses not deductible
 
(4.7
)
 
(2.5
)
 
(2.0
)
US manufacturing deduction
 
2.5

 
2.2

 
4.1

Foreign taxes on domestic income
 
(34.2
)
 
(2.1
)
 
(5.7
)
Amortization of intangibles
 
12.4

 
2.8

 
2.9

Taxes on foreign income
 
(3.0
)
 
(5.4
)
 
(7.4
)
Net deferred tax liability revaluation
 
27.7

 
—

 
—

Other items
 
1.8

 
1.1

 
5.5

Total income tax expense
 
$
(28.2
)
 
$
(90.5
)
 
$
(86.1
)
Effective tax rate
 
16.2
%
 
24.7
%
 
26.1
%
Deferred Tax Assets and Liabilities
Deferred tax balances consist of the following components:
 
 
31 March
(Millions of US dollars)
 
2018
 
2017
Deferred tax assets:
 
 
 
 
Asbestos liability
 
$
382.9

 
$
356.6

Other provisions and accruals
 
37.7

 
52.8

Net operating loss carryforwards
 
25.5

 
24.2

Foreign tax credit carryforwards
 
126.1

 
107.5

Total deferred tax assets
 
572.2

 
541.1

Valuation allowance
 
(129.6
)
 
(110.4
)
Total deferred tax assets net of valuation allowance
 
442.6

 
430.7

Deferred tax liabilities:
 
 
 
 
Depreciable and amortizable assets
 
(81.6
)
 
(130.0
)
Other
 
(14.6
)
 
(12.0
)
Total deferred tax liabilities
 
(96.2
)
 
(142.0
)
Total deferred taxes, net
 
$
346.4

 
$
288.7

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 2015
 
$
4.9

 
$
0.3

Additions for tax positions of the current year
 
0.2

 
—

Reductions in tax positions of prior year
 
(4.1
)
 
(0.3
)
Settlements paid during the current period
 
(0.3
)
 
—

Balance at 31 March 2016
 
$
0.7

 
$
—

Additions for tax positions of the current year
 
0.1

 
—

Reductions in tax positions of prior year
 
(0.1
)
 
—

Balance at 31 March 2017
 
$
0.7

 
$
—

Additions for tax positions of the current year
 
—

 
—

Reductions in tax positions of prior year
 
—

 
—

Balance at 31 March 2018
 
$
0.7

 
$
—