XML 29 R22.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Income Taxes and Discontinued Operations
9 Months Ended
Jun. 30, 2011
Income Taxes and Discontinued Operations  
Income Taxes and Discontinued Operations

15.     INCOME TAXES AND DISCONTINUED OPERATIONS

As of 30 June 2011, our unrecognized tax benefits totaled $162.9, of which $127.3 would impact the effective tax rate if recognized. For the nine months ended 30 June 2011, our unrecognized tax benefits decreased $70.8. In the third quarter of 2011, a U.S. Internal Revenue Service audit over tax years 2007 and 2008 was completed resulting in a decrease in unrecognized tax benefits of $36.0 and a favorable impact to current year earnings of $23.9.  This included a tax benefit of $8.9 or $.04 per share, recognized in income from discontinued operations for the three and nine months ended 30 June 2011, as it relates to the previously divested healthcare business.  The remaining benefit, partially offset by return to provision reconciliation adjustments recorded in the third quarter, did not have a material impact on income from continuing operations or the effective tax rate for the three and nine months ended 30 June 2011. 

The remainder of the change in unrecognized tax benefits for the year primarily resulted from changes in our position on temporary items that did not have a material impact on current year earnings or the effective tax rate. For additional historical information on the U.S Healthcare divestiture, refer to our 2010 Form 10-K.

We are currently being challenged by Spanish tax authorities over deductions taken by certain of our Spanish subsidiaries during fiscal years 2005-2008. A formal assessment by Spanish authorities has not been received to date. Although we believe that all positions taken are compliant with applicable laws, it is reasonably possible that a material change in the unrecognized tax benefits may occur during the next twelve months. However, quantification of an estimated range cannot be made at this time.