Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Income of U.S. and Foreign Operations Before Taxes

The following table summarizes the income of U.S. and foreign operations before taxes:



	Year Ended September 30,
	2018		2017		2016
(In millions)
Income Before Taxes
United States	$	71.0	$	29.3	$	58.9
Foreign	252.6		223.9		217.1
Total	$	323.6	$	253.2	$	276.0

Components of the Provision for Income Taxes

The following table shows the components of the provision for income taxes:



	Year Ended September 30,
	2018			2017		2016
(In millions)
Current Tax Provision
Federal	$	44.5		$	2.4	$	—
State	4.0			0.6		0.6
Foreign	68.9			47.0		58.3
	117.4			50.0		58.9
Deferred Tax Provision
Federal	0.4			1.3		1.3
State	(0.3		)	0.1		0.1
Foreign	1.4			1.6		(1.5		)
	1.5			3.0		(0.1		)
Income Tax Provision	$	118.9		$	53.0	$	58.8

Reconciliation of the Differences Between the United States Federal Statutory Tax Rate and the Effective Tax Rate

ncome tax expense (benefit) differs from the expected amounts based on the statutory U.S. federal tax rate for the years ended September 30, 2018, 2017 and 2016 as follows:



	Year Ended September 30,
	2018			2017			2016
(In millions)
U.S. federal tax	$	79.4		$	88.4		$	97.5
State taxes, net of federal benefit	0.8			0.5			2.2
Foreign tax differentials	(3.6		)	(34.7		)	(30.7		)
U.S. taxes on foreign earnings	(0.9		)	(0.3		)	4.7
Other credit and incentives	(1.7		)	(0.8		)	(0.8		)
U.S. tax law change	41.7			—			—
Valuation allowance	0.6			0.9			(19.2		)
Other	2.6			(1.0		)	5.1
Income Tax Expense (Benefit)	$	118.9		$	53.0		$	58.8

Significant Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities are as follows:



	September 30,
	2018			2017
(In millions)
Gross Deferred Tax Assets
Tax loss carryforwards	$	0.4		$	0.5
Tax credit carryforwards	3.1			0.9
Retirement benefits and compensation accruals	9.3			10.9
Reserves and accruals	6.2			—
Other	4.0			1.5
Valuation allowance	(1.4		)	(0.9		)
Deferred Tax Assets	21.6			12.9
Gross Deferred Tax Liabilities
Intangible assets	4.1			9.1
Reserves and accruals	—			1.6
Plant and equipment	35.2			22.9
Unremitted earnings of foreign entities	—			0.7
Partnership investments	0.3			0.8
Accounting method change	4.6			—
Other	0.4			0.2
Deferred Tax Liabilities	44.6			35.3
Net Deferred Income Tax Liability	$	23.0		$	22.4

Deferred tax assets and liabilities are included within the Annual Consolidated Financial Statements as follows:



	September 30,
	2018		2017
(In millions)
Other non-current assets	$	18.3	$	18.1
Deferred tax liabilities	41.3		40.5
Net Deferred Income Tax Liability	$	23.0	$	22.4

Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the unrecognized tax benefits excluding interest and penalties is as follows:



	Year Ended September 30,
(In millions)	2018			2017
Unrecognized Tax Benefits
Balance at beginning of year	$	15.7		$	12.9
Additions for tax positions for the current year	2.8			2.1
Additions for tax positions of prior years	1.8			1.0
Reductions for tax positions of prior years	(4.9		)	(0.2		)
Statute of limitations expiration	(1.9		)	(0.1		)
Balance at End of Year	$	13.5		$	15.7

Major Tax Jurisdictions

We generally remain subject to examination in the following major tax jurisdictions for the years indicated below:



	Open Tax Years
Major Tax Jurisdiction
United States	2017-2018
China	2008-2018
South Korea	2010-2018
Taiwan	2013-2018