Comprehensive Income and Shareholders Equity

6 Months Ended

Apr. 30, 2012

Comprehensive Income and Shareholders Equity [Abstract]

COMPREHENSIVE INCOME AND SHAREHOLDERS EQUITY

NOTE 17 — COMPREHENSIVE INCOME AND SHAREHOLDERS EQUITY

Comprehensive income is comprised of net income and other charges and credits to equity that are not the result of transactions with the Company’s owners.

The components of comprehensive income are as follows (Dollars in millions):

	Three months ended						Six months ended
	April 30,						April 30,
	2012			2011			2012			2011
				As restated (1)						As restated (1)
Net income	$	36.2		$	50.6		$	60.8		$	91.7
Other comprehensive income:
Foreign currency translation adjustment		1.4			54.1			15.0			23.7
Changes in fair value of interest rate and other derivatives, net of tax		—			0.3			(0.2	)		0.8
Minimum pension liabilities adjustment, net of tax		(0.5	)		(1.0	)		3.8			(0.9	)
Comprehensive income	$	37.1		$	104.0		$	79.4		$	115.3

(1) The consolidated balance sheet and the consolidated statement of changes in shareholders’ equity as of October 31, 2010 have been restated to correct prior period errors. However, the quarterly balance sheets as of January 31, 2011, April 30, 2011 and July 31, 2011 were not restated as part of the October 31, 2011 restatement since the corrections did not impact total assets, consolidated net income or cash flows of the Company, but have been restated within this filing for comparative purposes.

The components of accumulated other comprehensive income within the Company’s consolidated balance sheets were adjusted as follows (Dollars in millions):

	April 30, 2011			January 31, 2011			Change
Accumulated other comprehensive loss:
Foreigh currency translation, as reported	$	68.3		$	14.2		$	54.1
Restatment		(44.3	)		(44.3	)		—
Foreigh currency translation, as adjusted	$	24.0		$	(30.1	)	$	54.1
	April 30, 2011			October 31, 2010			Change
Accumulated other comprehensive loss:
Foreigh currency translation, as reported	$	68.3		$	44.6		$	23.7
Restatment		(44.3	)		(44.3	)		—
Foreigh currency translation, as adjusted	$	24.0		$	0.3		$	23.7

In the fourth quarter of 2011, the Company corrected an error which occurred in 2003 related to the balance sheet elimination of certain intercompany balances. The effect of the error impacted both foreign currency translation within other comprehensive income (loss), which had been overstated by $19.6 million, and accounts payable, which had been understated by $19.6 million. The Company has corrected the error for 2011 by restating the consolidated statements of changes in shareholders’ equity and the consolidated balance sheets. The correction of the error did not impact total assets, consolidated net income, or cash flows.

During the third quarter of 2011, the Company recorded an out-of-period correction of an error in both noncontrolling interest, which had been understated by $24.7 million, and foreign currency translation within the other comprehensive income (loss), which had been overstated by $24.7 million, as of October 31, 2010. Since the Company restated its consolidated financial statements for the intercompany error noted above, the consolidated balance sheet as of October 31, 2010 and the consolidated statements of changes in shareholders’ equity have also been restated to reflect this correction as of October 31, 2010. The correction of the error did not impact total assets, consolidated net income or cash flows.

The following is the income tax benefit (expense) for each other comprehensive income line items (Dollars in millions):

	Three months ended					Six months ended
	April 30,					April 30,
	2012		2011			2012			2011
Income tax benefit (expense):
Changes in fair value of interest rate and other derivatives		—		(0.1	)		0.1			(0.4	)
Minimum pension liabilities adjustment		0.2		0.3			(1.5	)		0.3

The components of Shareholders’ Equity from October 31, 2011 to April 30, 2012 (Dollars in millions, shares in thousands):

	Capital Stock				Treasury Stock						Retained Earnings			Noncontrolling interests			Accumulated Other Comprehensive Income (Loss)			Shareholders’ Equity
	Common Shares		Amount		Treasury Shares			Amount
As of October 31, 2011		47,093	$	113.8		29,749		$	(132.0	)	$	1,401.7		$	156.8		$	(148.1	)	$	1,392.2
Net income												60.7			0.1						60.8
Other comprehensive income (loss):
- foreign currency translation															(22.3	)		15.0			(7.3	)
- interest rate and other derivatives, net of income tax expense of $0.1																		(0.2	)		(0.2	)
- minimum pension liability adjustment, net of income tax expense of $1.5																		3.8			3.8
Comprehensive income																					57.1
Other noncontrolling interests															3.7						3.7
Dividends paid												(48.8	)								(48.8	)
Stock options exercised		45		0.6		(45	)		0.1												0.7
Restricted stock executives and directors		19		0.9		(19	)		—												0.9
Long-term incentive shares issued		134		5.8		(134	)		0.3												6.1
As of April 30, 2012		47,291	$	121.1		29,551		$	(131.6	)	$	1,413.6		$	138.3		$	(129.5	)	$	1,411.9