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

Income Taxes (Tables)

v3.22.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2022
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) 2022 2021 2020
Income before income taxes:
Domestic $ 295.0  $ 241.9  $ 209.6 
Foreign 348.1  170.1  78.4 
Income before income taxes: $ 643.1  $ 412.0  $ 288.0 
Income tax expense:
Current:
Domestic $ 44.4  $ 38.5  $ 31.1 
Foreign 53.9  (8.6) (39.8)
Current income tax expense (benefit) 98.3  29.9  (8.7)
Deferred:
Domestic 9.4  1.4  4.5 
Foreign 76.3  117.9  50.7 
Deferred income tax expense 85.7  119.3  55.2 
Total income tax expense $ 184.0  $ 149.2  $ 46.5 
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) 2022 2021 2020
Income tax expense computed at the statutory tax rates $ 109.7  $ 58.1  $ 38.7 
US state income taxes, net of the federal benefit 9.2  8.0  5.7 
Asbestos - effect of foreign exchange (3.5) 36.8  (20.9)
Expenses not deductible 1.9  2.0  5.5 
Stock and executive compensation (0.8) 5.5  1.7 
Foreign taxes on domestic income 55.2  49.8  43.5 
Prior year tax adjustments (1.2) (5.9) 0.4 
Taxes on foreign income 9.9  1.6  (2.7)
US net operating loss carryback —  (4.9) (25.5)
Other items 3.6  (1.8) 0.1 
Total income tax expense $ 184.0  $ 149.2  $ 46.5 
Effective tax rate 28.6  % 36.2  % 16.1  %
Deferred Tax Assets and Liabilities
Deferred tax balances consist of the following components:
  31 March
(Millions of US dollars) 2022 2021
Deferred tax assets:
Intangible assets $ 958.2  $ 1,038.7 
Asbestos liability 360.1  367.4 
Tax credit carryforwards 118.7  122.1 
Other provisions and accruals 73.3  62.2 
Net operating loss carryforwards 66.2  61.0 
Total deferred tax assets 1,576.5  1,651.4 
Valuation allowance (261.2) (262.7)
Total deferred tax assets net of valuation allowance 1,315.3  1,388.7 
Deferred tax liabilities:
Depreciable and amortizable assets (164.0) (151.7)
Other (59.0) (49.1)
Total deferred tax liabilities (223.0) (200.8)
Total deferred taxes, net $ 1,092.3  $ 1,187.9