Energizer 2013 Annual Report Download - page 79

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ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Unrecognized tax benefits activity for the years ended September 30, 2013 and 2012 are summarized below:
2013 2012
Unrecognized tax benefits, beginning of year $ 41.0 $ 41.2
Additions based on current year tax positions and acquisitions 3.4 3.3
Reductions for prior year tax positions (0.3)(0.8)
Settlements with taxing authorities/statute expirations (6.8)(2.7)
Unrecognized tax benefits, end of year $ 37.3 $ 41.0
Included in the unrecognized tax benefits noted above are $31.9 of uncertain tax positions that would affect the Company’s
effective tax rate, if recognized. The Company does not expect any significant increases or decreases to their unrecognized tax
benefits within twelve months of this reporting date. In the Consolidated Balance Sheets, unrecognized tax benefits are
classified as Other liabilities (non-current) to the extent that payments are not anticipated within one year.
The Company classifies accrued interest and penalties related to unrecognized tax benefits in the income tax provision. The
accrued interest and penalties are not included in the table above. The Company accrued approximately $9.6 of interest and
$2.8 of penalties at September 30, 2013 and $9.0 of interest and $2.8 of penalties at September 30, 2012. Interest was computed
on the difference between the tax position recognized in accordance with GAAP and the amount previously taken or expected
to be taken in the Company’s tax returns.
The Company files income tax returns in the U.S. federal jurisdiction, various cities and states, and more than 50 foreign
jurisdictions where the Company has operations. U.S. federal income tax returns for tax years ended September 30, 2007 and
after remain subject to examination by the Internal Revenue Service. With few exceptions, the Company is no longer subject to
state and local income tax examinations for years before September 30, 2003. The status of international income tax
examinations varies by jurisdiction. At this time, the Company does not anticipate any material adjustments to its financial
statements resulting from tax examinations currently in progress.
(7) Earnings Per Share
For each period presented below, basic earnings per share is based on the average number of shares outstanding during the
period. Diluted earnings per share is based on the average number of shares used for the basic earnings per share calculation,
adjusted for the dilutive effect of stock options and restricted stock equivalents.
The following table sets forth the computation of basic and diluted earnings per share:
(in millions, except per share data)
FOR THE YEARS ENDED
SEPTEMBER 30,
2013 2012 2011
Numerator:
Net earnings for basic and dilutive earnings per share $ 407.0 $ 408.9 $ 261.2
Denominator:
Weighted-average shares - basic 62.1 64.9 69.6
Effect of dilutive securities:
Stock options 0.1 0.2 0.2
Restricted stock equivalents 0.7 0.6 0.5
Total dilutive securities 0.8 0.8 0.7
Weighted-average shares - diluted 62.9 65.7 70.3
Basic net earnings per share $ 6.55 $ 6.30 $ 3.75
Diluted net earnings per share $ 6.47 $ 6.22 $ 3.72
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