Energizer 2013 Annual Report Download - page 78

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
The deferred tax assets and deferred tax liabilities recorded on the balance sheet at September 30 for the years indicated are as
follows and include current and noncurrent amounts:
2013 2012
Deferred tax liabilities:
Depreciation and property differences $ (83.8)$ (101.1)
Intangible assets (580.7)(574.3)
Other tax liabilities (8.5)(6.4)
Gross deferred tax liabilities (673.0)(681.8)
Deferred tax assets:
Accrued liabilities 104.4 105.7
Deferred and stock-related compensation 102.5 103.6
Tax loss carryforwards and tax credits 10.4 13.9
Intangible assets 17.1 17.3
Postretirement benefits other than pensions 2.6 11.6
Pension plans 81.3 155.3
Inventory differences 28.6 31.7
Other tax assets 5.6 6.6
Gross deferred tax assets 352.5 445.7
Valuation allowance (9.5)(11.9)
Net deferred tax liabilities $ (330.0)$ (248.0)
There were no material tax loss carryforwards that expired in fiscal 2013. Future expirations of tax loss carryforwards and tax
credits, if not utilized, are not material from 2014 through 2018. For years subsequent to 2018 or for tax loss carryforwards
and tax credits that have no expiration, the value at September 30, 2013 was $9.8. The valuation allowance is attributed to tax
loss carryforwards and tax credits outside the U.S.
We regularly repatriate a portion of current year earnings from select non U.S. subsidiaries. Generally, these non-U.S.
subsidiaries are in tax jurisdictions with effective tax rates that do not result in materially higher U.S. tax provisions related to
the repatriated earnings. No provision is made for additional taxes on undistributed earnings of foreign affiliates that are
intended and planned to be indefinitely invested in the affiliate. We intend to, and have plans to, reinvest these earnings
indefinitely in our foreign subsidiaries to, amongst other things, fund local operations, including a substantial manufacturing
footprint in Asia, fund pension and other post retirement obligations, fund capital projects and to support foreign growth
initiatives including potential acquisitions, such as the foreign cash utilized to fund a portion of the October 2013 feminine care
brand acquisition. At September 30, 2013, approximately $1,460 of foreign subsidiary earnings was considered indefinitely
invested in those businesses. We estimate that the U.S. federal income tax liability that could potentially arise if indefinitely
invested earnings of foreign subsidiaries were repatriated in full to the U.S. would be significant. While it is not practical to
calculate a specific potential U.S. tax exposure due to changing statutory rates in foreign jurisdictions over time, as well as
other factors, we estimate the range of potential U.S. tax may be in excess of $170, if all undistributed earnings were repatriated
assuming foreign cash was available to do so. Applicable U.S. income and foreign withholding taxes would be provided on
these earnings in the periods in which they are no longer considered indefinitely reinvested.
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