Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income taxes from continuing operations are presented below.



	2018			2017			2016
	(in millions)
U.S.	$	97.3		$	82.7		$	69.7
Non-U.S.	(1.6		)	(4.2		)	(0.4		)
Income before income taxes	$	95.7		$	78.5		$	69.3

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of income tax (benefit) expense from continuing operations are presented below.



	2018			2017			2016
	(in millions)
Current:
U.S. federal	$	25.7		$	25.4		$	28.9
U.S. state and local	7.1			4.0			2.0
Non-U.S.	0.6			0.5			(0.1		)
	33.4			29.9			30.8
Deferred:
U.S. federal	(42.6		)	(4.3		)	(9.8		)
U.S. state and local	(1.0		)	(0.2		)	3.4
Non-U.S.	0.3			(1.2		)	(0.2		)
	(43.3		)	(5.7		)	(6.6		)
Income tax (benefit) expense	$	(9.9	)	$	24.2		$	24.2

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The reconciliation between income tax expense at the U.S. federal statutory income tax rate and reported income tax expense from continuing operations is presented below.



	2018			2017			2016
	(in millions)
Expense at U.S. federal statutory income tax rates of 24.5%, 35% and 35%, respectively	$	23.4		$	27.5		$	24.3
Adjustments to reconcile to income tax expense:
State income taxes, net of federal benefit	4.8			2.7			3.1
Domestic production activities deduction	(2.4		)	(4.5		)	(3.0		)
Tax credits	(1.7		)	(1.4		)	(2.0		)
Nondeductible expenses, other than compensation	0.5			0.6			0.7
Valuation allowances	0.5			0.4			—
Foreign income taxes	—			0.3			0.2
Nondeductible compensation	0.2			0.5			0.4
Excess tax benefits related to stock compensation	(0.6		)	(2.1		)	(0.5		)
Federal tax rate change	(42.5		)	(0.4		)	0.4
Federal transition tax	7.5			—			—
Other	0.4			0.6			0.6
Income tax (benefit) expense	$	(9.9	)	$	24.2		$	24.2

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax balances are presented below.



	September 30,
	2018			2017
	(in millions)
Deferred income tax assets:
Inventory reserves	$	10.4		$	12.0
Accrued expenses	13.3			14.9
Pension	—			6.0
Stock-based compensation	3.3			6.2
State net operating losses	3.2			3.2
Federal credit carryovers	2.1			0.9
Other	1.0			2.7
	33.3			45.9
Valuation allowance	(1.9		)	(1.5		)
Total deferred income tax assets, net of valuation allowance	31.4			44.4
Deferred income tax liabilities:
Intangible assets	95.7			151.2
Pension	2.3			—
Other	11.4			7.2
Total deferred income tax liabilities	109.4			158.4
Net deferred income tax liabilities	$	78.0		$	114.0

Balance sheet presentation:
Deferred income taxes	$	79.2		$	115.1
Less deferred tax assets included in other noncurrent assets	1.2			1.1
Net deferred income tax liabilities	$	78.0		$	114.0

Summary of Unrecognized Tax Benefits

The following table summarizes information concerning our gross unrecognized tax benefits.



	2018			2017
	(in millions)
Balance at beginning of year	$	3.0		$	2.8
Increases related to prior year positions	0.1			0.1
Increases related to current year positions	0.3			0.2
Decreases due to lapse in statute of limitations	(0.1		)	(0.1		)
Balance at end of year	$	3.3		$	3.0