Energizer 2014 Annual Report Download - page 75

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ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
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 $250, 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.
Unrecognized tax benefits activity for the years ended September 30, 2014 and 2013 are summarized below:
2014 2013
Unrecognized tax benefits, beginning of year $ 37.3 $ 41.0
Additions based on current year tax positions and acquisitions 4.2 3.4
Reductions for prior year tax positions (0.1)(0.3)
Settlements with taxing authorities/statute expirations (3.6)(6.8)
Unrecognized tax benefits, end of year $ 37.8 $ 37.3
Included in the unrecognized tax benefits noted above are $32.1 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 $10.4 of interest, (net of
the deferred tax asset of $3.8) and $2.8 of penalties at September 30, 2014, and $9.6 of interest, (net of the deferred tax asset of
$3.4) and $2.8 of penalties at September 30, 2013. 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, 2004. 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.
(9) 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.
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