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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2012
Calculation of Income Tax (Benefit) Expense from Continuing Operations Before Income Tax | Income tax (benefit) expense was calculated based upon the following components of income (loss) from continuing operations before income tax:
|  | September 30, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Pretax income (loss): |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | (146,542 | ) |  | $ | (74,815 | ) |  | $ | (238,179 | )
Outside the United States |  |  | 171,928 |  |  |  | 132,749 |  |  |  | 105,867 |
Total pretax income (loss) |  | $ | 25,386 |  |  | $ | 57,934 |  |  | $ | (132,312 | )
Schedule of Components of Income Tax (Benefit) Expense | The components of income tax (benefit) expense were as follows:
|  | September 30, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 74,388 |  |  | $ | (875 | ) |  | $ | — |
Foreign |  |  | 38,113 |  |  |  | 32,649 |  |  |  | 44,481 |
State |  |  | (370 | ) |  |  | 2,336 |  |  |  | 2,913 |
Total current |  |  | 112,131 |  |  |  | 34,110 |  |  |  | 47,394 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (199,162 | ) |  |  | (20,622 | ) |  |  | 22,119 |
Foreign |  |  | 5,190 |  |  |  | 28,054 |  |  |  | (6,514 | )
State |  |  | (3,441 | ) |  |  | 9,013 |  |  |  | 196 |
Total deferred |  |  | (197,413 | ) |  |  | 16,445 |  |  |  | 15,801 |
Income tax (benefit) expense |  | $ | (85,282 | ) |  | $ | 50,555 |  |  | $ | 63,195 |
Schedule of Differences Between Income Taxes Expected and Reported Income Tax | The differences between income taxes expected at the U.S. Federal statutory income tax rate of 35% and reported income tax (benefit) expense are summarized as follows:
|  | September 30, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Expected income tax (benefit) expense at Federal statutory rate |  | $ | 8,885 |  |  | $ | 20,277 |  |  | $ | (46,309 | )
Valuation allowance for deferred tax assets |  |  | (142,126 | ) |  |  | 72,335 |  |  |  | 92,673 |
Preferred stock equity conversion feature |  |  | 54,810 |  |  |  | (9,486 | ) |  |  | — |
Residual tax on foreign earnings |  |  | 29,844 |  |  |  | 18,943 |  |  |  | 6,609 |
Foreign rate differential |  |  | (14,115 | ) |  |  | (12,650 | ) |  |  | (9,601 | )
Bargain purchase gain |  |  | — |  |  |  | (55,419 | ) |  |  | — |
Gain on contingent purchase price reduction |  |  | (14,350 | ) |  |  | — |  |  |  | — |
Permanent items |  |  | 9,544 |  |  |  | 10,657 |  |  |  | 4,829 |
Exempt foreign income |  |  | (5,760 | ) |  |  | (380 | ) |  |  | (9 | )
Unrecognized tax benefits |  |  | (4,386 | ) |  |  | (2,793 | ) |  |  | 3,234 |
State and local income taxes |  |  | (8,539 | ) |  |  | 1,235 |  |  |  | (4,975 | )
Dividends received deduction |  |  | (965 | ) |  |  | — |  |  |  | — |
Inflationary adjustments |  |  | (803 | ) |  |  | (1,472 | ) |  |  | 3,409 |
Capitalized transaction costs |  |  | 343 |  |  |  | 2,800 |  |  |  | — |
Deferred tax correction of immaterial prior period error |  |  | — |  |  |  | 4,873 |  |  |  | 5,900 |
Reorganization items |  |  | — |  |  |  | — |  |  |  | 8,678 |
Other |  |  | 2,336 |  |  |  | 1,635 |  |  |  | (1,243 | )
Reported income tax (benefit) expense |  | $ | (85,282 | ) |  | $ | 50,555 |  |  | $ | 63,195 |
Effective tax rate |  |  | (335.9 | )% |  |  | 87.3 | % |  |  | (47.8 | )%
Schedule of Components of Deferred Income Tax Assets and Liabilities | The following table summarizes the components of deferred income tax assets and liabilities:
|  | September 30, |
|  | 2012 |  |  | 2011 |
Current deferred tax assets: |  |  |  |  |  |  |  |
Employee benefits |  | $ | 29,491 |  |  | $ | 14,188 |
Restructuring |  |  | 8,054 |  |  |  | 10,682 |
Inventories and receivables |  |  | 22,495 |  |  |  | 21,521 |
Marketing and promotional accruals |  |  | 8,270 |  |  |  | 8,911 |
Capitalized transaction costs |  |  | 129 |  |  |  | 292 |
Unrealized losses on mark-to-market securities |  |  | 10,213 |  |  |  | 9,574 |
Other |  |  | 15,090 |  |  |  | 14,971 |
Valuation allowance |  |  | (48,968 | ) |  |  | (37,523 | )
Total current deferred tax assets |  |  | 44,774 |  |  |  | 42,616 |
Current deferred tax liabilities: |  |  |  |  |  |  |  |
Inventories and receivables |  |  | (2,618 | ) |  |  | (5,015 | )
Unrealized gains |  |  | (1,153 | ) |  |  | (2,382 | )
Other |  |  | (7,936 | ) |  |  | (5,705 | )
Total current deferred tax liabilities |  |  | (11,707 | ) |  |  | (13,102 | )
Net current deferred tax assets, included in “Prepaid expenses and other current assets” |  | $ | 33,067 |  |  | $ | 29,514 |
Noncurrent deferred tax assets: |  |  |  |  |  |  |  |
Employee benefits |  | $ | 37,488 |  |  | $ | 32,369 |
Restructuring and purchase accounting |  |  | 371 |  |  |  | 2,269 |
Net operating loss, credit and capital loss carry forwards |  |  | 914,480 |  |  |  | 1,026,610 |
Prepaid royalty |  |  | 7,006 |  |  |  | 7,346 |
Properties |  |  | 3,255 |  |  |  | 5,240 |
Capitalized transaction costs |  |  | — |  |  |  | 4,648 |
Unrealized losses on mark-to-market securities |  |  | 12,734 |  |  |  | 18,574 |
Long-term debt |  |  | 3,976 |  |  |  | 22,602 |
Intangibles |  |  | 4,282 |  |  |  | 4,749 |
Deferred acquisition costs |  |  | 9,906 |  |  |  | 74,175 |
Insurance reserves and claim related adjustments |  |  | 620,285 |  |  |  | 408,214 |
Other |  |  | 30,850 |  |  |  | 28,556 |
Valuation allowance |  |  | (611,139 | ) |  |  | (764,710 | )
Total noncurrent deferred tax assets |  |  | 1,033,494 |  |  |  | 870,642 |
Noncurrent deferred tax liabilities: |  |  |  |  |  |  |  |
Properties |  |  | (15,337 | ) |  |  | (16,593 | )
Unrealized gains |  |  | (15,803 | ) |  |  | (11,619 | )
Intangibles |  |  | (596,199 | ) |  |  | (571,454 | )
Value of business acquired |  |  | (36,512 | ) |  |  | (148,876 | )
Tax on unremitted foreign earnings |  |  | (29,231 | ) |  |  | — |
Investments |  |  | (438,655 | ) |  |  | (246,632 | )
Other |  |  | (4,511 | ) |  |  | (6,418 | )
Total noncurrent deferred tax liabilities |  |  | (1,136,248 | ) |  |  | (1,001,592 | )
Net noncurrent deferred tax liabilities, included in “Deferred tax assets” (Insurance and Financial Services) and “Deferred tax liabilities” (Consumer Products and Other) |  | $ | (102,754 | ) |  | $ | (130,950 | )
Net current and noncurrent deferred tax liabilities |  | $ | (69,687 | ) |  | $ | (101,436 | )
Summary of Changes to Unrecognized Tax Benefits Reserves Excluding Related Interest and Penalties | The following table summarizes changes to the Company’s UTB reserves, excluding related interest and penalties:
Unrecognized tax benefits at September 30, 2009 |  | $ | 7,765 |
Russell Hobbs acquired unrecognized tax benefits |  |  | 3,251 |
HGI unrecognized tax benefits as of June 16, 2010 |  |  | 732 |
Gross decrease — tax positions in prior period |  |  | (904 | )
Gross increase — tax positions in current period |  |  | 3,390 |
Lapse of statutes of limitations |  |  | (1,060 | )
Unrecognized tax benefits at September 30, 2010 |  | $ | 13,174 |
Gross increase — tax positions in prior period |  |  | 1,658 |
Gross decrease — tax positions in prior period |  |  | (823 | )
Gross increase — tax positions in current period |  |  | 596 |
Settlements |  |  | (1,850 | )
Lapse of statutes of limitations |  |  | (3,742 | )
Unrecognized tax benefits at September 30, 2011 |  | $ | 9,013 |
Gross increase — tax positions in prior period |  |  | 773 |
Gross decrease — tax positions in prior period |  |  | (1,308 | )
Gross increase — tax positions in current period |  |  | 776 |
Settlements |  |  | (1,737 | )
Lapse of statutes of limitations |  |  | (1,640 | )
Unrecognized tax benefits at September 30, 2012 |  | $ | 5,877 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 21 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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