Income Taxes (Tables)

12 Months Ended

Mar. 31, 2019

Components of the Provision (Benefit) For Income Taxes

The components of the provision (benefit) for income taxes are as follows (in millions):



	Year ended March 31,
	2019			2018			2017
Current:
United States	$	55.7		$	29.9		$	18.9
Non-United States	21.6			23.1			16.0
State and local	8.0			4.1			2.5
Total current	85.3			57.1			37.4
Deferred:
United States	(23.0		)	(71.5		)	(19.1		)
Non-United States	(5.2		)	(3.1		)	(0.9		)
State and local	(3.7		)	(2.0		)	(1.8		)
Total deferred	(31.9		)	(76.6		)	(21.8		)
Provision (benefit) for income taxes	$	53.4		$	(19.5	)	$	15.6

U.S. Statutory Income Tax Rate Reconciliation

The provision (benefit) for income taxes differs from the United States statutory income tax rate due to the following items (in millions):



	Year ended March 31,
	2019			2018			2017
Provision for income taxes at U.S. federal statutory income tax rate	$	50.1		$	59.0		$	37.5
State and local income taxes, net of federal benefit	5.3			2.9			1.1
Nef effects of foreign rate differential	1.8			(2.6		)	0.8
Net effects of foreign operations	1.6			(7.4		)	(5.3		)
Net effect to deferred taxes for changes in tax rates	(2.6		)	(0.3		)	(0.3		)
Net effect to deferred taxes for U.S. Tax Reform	0.8			(67.1		)	—
Net effect of U.S. Tax Reform transition tax	(0.1		)	0.2			—
Net effects of GILTI inclusion	6.5			—			—
Foreign derived intangible income deduction	(1.8		)	—			—
Unrecognized tax benefits, net of federal benefit	(7.0		)	1.1			1.3
Domestic production activities deduction	—			(3.2		)	(3.2		)
Research and development credit	(0.9		)	(0.9		)	(7.6		)
Excess tax benefits related to equity compensation	(1.1		)	(0.5		)	(7.0		)
§162(m) compensation limitation	1.9			1.0			—
Net changes in valuation allowance	(2.3		)	(2.8		)	(2.3		)
Other	1.2			1.1			0.6
Provision (benefit) for income taxes	$	53.4		$	(19.5	)	$	15.6

Components of Income (Loss) Before Income Taxes

The provision (benefit) for income taxes was calculated based upon the following components of income from continuing operations before income taxes (in millions):



	Year ended March 31,
	2019		2018		2017
United States	$	174.8	$	117.1	$	69.1
Non-United States	64.0		70.0		38.2
Income before income taxes	$	238.8	$	187.1	$	107.3

Schedule of Deferred Income Taxes

Deferred income taxes consist of the tax effects of the following temporary differences (in millions):



	March 31, 2019			March 31, 2018
Deferred tax assets:
Compensation and retirement benefits	$	55.7		$	47.0
General accruals and reserves	9.8			7.1
State tax net operating loss carryforwards	21.9			23.1
Federal and state capital loss carryforwards	12.7			—
Foreign net operating loss and interest carryforwards	6.7			9.2
Other	0.3			3.1
Total deferred tax assets before valuation allowance	107.1			89.5
Valuation allowance	(32.4		)	(23.0		)
Total deferred tax assets	74.7			66.5
Deferred tax liabilities:
Property, plant and equipment	32.6			33.1
Inventories	15.4			19.7
Intangible assets and goodwill	137.9			142.5
Cancellation of indebtedness	—			7.1
Total deferred tax liabilities	185.9			202.4
Net deferred tax liabilities	$	111.2		$	135.9

Net amount on Consolidated Balance Sheets consists of:
Other assets	$	14.7		$	13.4
Deferred income taxes	(125.9		)	(149.3		)
Net long-term deferred tax liabilities	$	(111.2	)	$	(135.9	)

Reconciliation of Gross Unrecognized Tax Benefits

The following table represents a reconciliation of the beginning and ending amount of the gross unrecognized tax benefits, excluding interest and penalties, for the fiscal years ended March 31, 2019 and March 31, 2018 (in millions):



	Year Ended March 31,
	2019			2018
Balance at beginning of period	$	15.6		$	15.0
Additions based on tax positions related to the current year	7.7			0.8
Additions for tax positions of prior years	4.7			—
Reductions for tax positions of prior years	—			—
Settlements	(2.3		)	—
Reductions due to lapse of applicable statute of limitations	(7.1		)	(0.6		)
Cumulative translation adjustment	(0.3		)	0.4
Balance at end of period	$	18.3		$	15.6