Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019


	SBH						SB/RH
(in millions)	2019		2018		2017		2019		2018		2017
United States	$	(267.3)	$	(140.4)	$	(150.7)	$	(202.7)	$	25.4	$	50.7
Outside the United States		73.5		104.7		122.8		73.5		104.7		122.9
Income from operations before income taxes	$	(193.8)	$	(35.7)	$	(27.9)	$	(129.2)	$	130.1	$	173.6


	SBH						SB/RH
(in millions)	2019		2018		2017		2019		2018		2017
Current tax expense:
U.S. Federal	$	(47.6)	$	58.1	$	6.9	$	(47.6)	$	58.4	$	4.2
Foreign		44.3		34.7		13.2		44.3		34.7		13.2
State and local		2.7		1.0		0.6		2.7		1.0		0.6
Total current tax expense		(0.6)		93.8		20.7		(0.6)		94.1		18.0
Deferred tax (benefit) expense:
U.S. Federal		9.9		(539.7)		(18.0)		24.3		(170.0)		(12.2)
Foreign		(4.9)		3.1		(10.1)		(4.9)		3.0		(10.1)
State and local		(11.5)		(19.9)		(4.4)		(8.1)		(3.9)		(4.3)
Total deferred tax expense		(6.5)		(556.5)		(32.5)		11.3		(170.9)		(26.6)
Income tax expense	$	(7.1)	$	(462.7)	$	(11.8)	$	10.7	$	(76.8)	$	(8.6)


	SBH						SB/RH
(in millions)	2019		2018		2017		2019		2018		2017
U.S. Statutory federal income tax expense	$	(40.7)	$	(8.8)	$	(9.7)	$	(27.1)	$	31.9	$	60.8
Permanent items		3.7		7.6		4.8		3.8		(3.5)		0.8
Goodwill impairment		12.2		—		—		12.2		—		—
Foreign statutory rate vs. U.S. statutory rate		(10.3)		3.0		(32.8)		(10.3)		3.0		(32.8)
State income taxes, net of federal effect		(14.2)		(2.9)		1.2		(11.1)		(1.9)		1.3
Illinois state rate change		—		—		(3.4)		—		—		(3.4)
Tax reform act - U.S. rate change		—		(166.7)		—		—		(181.7)		—
Global intangible low tax income inclusion		8.6		—		—		8.6		—		—
Foreign dividend received deduction tax law change		95.9		—		—		95.9		—		—
Tax reform act - mandatory repatriation		(48.0)		73.1		—		(48.0)		73.1		—
Residual tax on foreign earnings		1.5		5.9		(36.1)		1.5		5.9		(36.1)
Change in valuation allowance		(29.9)		(365.6)		77.1		(29.9)		(0.3)		18.1
Unrecognized tax expense (benefit)		6.2		(0.1)		3.9		6.2		(0.1)		3.9
Share based compensation adjustments		4.6		(5.5)		(4.9)		4.6		(0.5)		(0.4)
Research and development tax credits		(4.4)		(1.9)		(9.3)		(4.4)		(1.9)		(9.3)
UK Tax refund		—		—		(1.5)		—		—		(1.5)
Outside basis difference		—		—		(0.8)		—		—		(5.4)
Return to provision adjustments and other, net		7.7		(0.8)		(0.3)		8.7		(0.8)		(4.6)
Income tax expense	$	(7.1)	$	(462.7)	$	(11.8)	$	10.7	$	(76.8)	$	(8.6)


	SBH				SB/RH
(in millions)	2019		2018		2019		2018
Deferred tax assets
Employee benefits	$	37.6	$	24.8	$	36.0	$	23.1
Restructuring		0.9		0.5		0.9		0.5
Inventories and receivables		16.8		25.0		16.8		25.0
Marketing and promotional accruals		10.6		9.9		10.6		9.9
Property, plant and equipment		5.9		32.1		5.9		31.2
Unrealized losses		12.8		7.1		12.8		7.1
Intangibles		19.0		14.3		19.0		14.3
Investment in subsidiaries		0.3		16.9		0.3		0.3
Net operating loss and credit carry forwards		530.6		790.8		229.8		281.8
Other		32.7		30.2		31.9		44.5
Total deferred tax assets		667.2		951.6		364.0		437.7
Deferred tax liabilities
Property, plant and equipment		11.1		51.4		11.1		51.4
Unrealized gains		9.0		7.3		9.0		7.3
Intangibles		311.8		416.4		311.8		416.4
Investment in partnership		37.6		52.0		55.0		52.0
Taxes on unremitted foreign earnings		5.0		6.2		5.0		6.2
Other		10.9		7.6		10.8		7.6
Total deferred tax liabilities		385.4		540.9		402.7		540.9
Net deferred tax liabilities		281.8		410.7		(38.7)		(103.2)
Valuation allowance		(307.0)		(282.6)		(202.8)		(178.4)
Net deferred tax liabilities, net valuation allowance	$	(25.2)	$	128.1	$	(241.5)	$	(281.6)
Reported as:
Deferred charges and other	$	30.7	$	163.1	$	30.7	$	5.4
Deferred taxes (noncurrent liability)		55.9		35.0		272.2		287.0


(in millions)	2019		2018		2017
Unrecognized tax benefits, beginning of year	$	15.0	$	15.6	$	11.8
Gross increase – tax positions in prior period		5.3		0.9		3.3
Gross decrease – tax positions in prior period		(0.4)		(3.5)		(0.1)
Gross increase – tax positions in current period		3.5		2.5		0.9
Settlements		(1.1)		(0.3)		—
Lapse of statutes of limitations		(1.4)		(0.2)		(0.3)
Unrecognized tax benefits, end of year	$	20.9	$	15.0	$	15.6