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

Income Taxes (Tables)

v3.21.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2021
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) 2021 2020 2019
Income before income taxes:
Domestic $ 241.9  $ 209.6  $ 196.4 
Foreign 170.1  78.4  104.2 
Income before income taxes: $ 412.0  $ 288.0  $ 300.6 
Income tax expense:
Current:
Domestic $ (38.5) $ (31.1) $ (26.6)
Foreign 8.6  39.8  (6.5)
Current income tax (expense) benefit (29.9) 8.7  (33.1)
Deferred:
Domestic (1.4) (4.5) (1.3)
Foreign (117.9) (50.7) (37.4)
Deferred income tax expense (119.3) (55.2) (38.7)
Total income tax expense $ (149.2) $ (46.5) $ (71.8)
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) 2021 2020 2019
Income tax expense computed at the statutory tax rates $ (58.1) $ (38.7) $ (48.9)
US state income taxes, net of the federal benefit (8.0) (5.7) (3.1)
Asbestos - effect of foreign exchange (36.8) 20.9  14.9 
Expenses not deductible (2.0) (5.5) (4.0)
Stock and executive compensation (5.5) (1.7) (1.3)
Foreign taxes on domestic income (49.8) (43.5) (34.5)
Prior year tax adjustments 5.9  (0.4) (0.3)
Taxes on foreign income (1.6) 2.7  4.5 
US net operating loss carryback 4.9  25.5  — 
Other items 1.8  (0.1) 0.9 
Total income tax expense $ (149.2) $ (46.5) $ (71.8)
Effective tax rate 36.2  % 16.1  % 23.9  %
Deferred Tax Assets and Liabilities
Deferred tax balances consist of the following components:
  31 March
(Millions of US dollars) 2021 2020
Deferred tax assets:
Intangible assets $ 1,038.7  $ 1,126.4 
Asbestos liability 367.4  319.1 
Other provisions and accruals 62.2  54.1 
Net operating loss carryforwards 61.0  41.3 
Foreign and research tax credit carryforwards 122.1  114.2 
Total deferred tax assets 1,651.4  1,655.1 
Valuation allowance (262.7) (262.9)
Total deferred tax assets net of valuation allowance 1,388.7  1,392.2 
Deferred tax liabilities:
Depreciable and amortizable assets (151.7) (117.5)
Other (49.1) (48.1)
Total deferred tax liabilities (200.8) (165.6)
Total deferred taxes, net $ 1,187.9  $ 1,226.6