XML 49 R39.htm IDEA: XBRL DOCUMENT v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Pre-tax Income (Loss) from Continuing Operations

Pre-tax income was taxed in the following jurisdictions (in millions):

 

 

Year Ended
December 31,

 

 

(transition period)
Three Months Ended
December 31,

 

 

Year Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

 

2021

 

Domestic

 

$

705.9

 

 

$

243.1

 

 

$

16.8

 

 

$

489.0

 

Foreign

 

 

91.7

 

 

 

32.5

 

 

 

7.4

 

 

 

56.3

 

 

$

797.6

 

 

$

275.6

 

 

$

24.2

 

 

$

545.3

 

 

Schedule of Components of Provision for (Benefit from) Income Taxes

Significant components of the provision for income taxes were as follows (in millions):

 

 

Year Ended
December 31,

 

 

(transition period)
Three Months Ended
December 31,

 

 

Year Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

 

2021

 

Allocated to Income Before Losses of Unconsolidated Affiliates

 

 

 

 

 

 

 

 

 

 

 

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

268.4

 

 

$

98.1

 

 

$

168.3

 

 

$

(94.7

)

Foreign

 

 

29.9

 

 

 

42.0

 

 

 

1.0

 

 

 

8.5

 

State

 

 

52.1

 

 

 

10.9

 

 

 

11.4

 

 

 

22.8

 

Total current

 

 

350.4

 

 

 

151.0

 

 

 

180.7

 

 

 

(63.4

)

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(126.0

)

 

 

(53.3

)

 

 

(166.4

)

 

 

119.3

 

Foreign

 

 

(8.0

)

 

 

(1.4

)

 

 

(0.5

)

 

 

(5.6

)

State

 

 

(26.4

)

 

 

1.2

 

 

 

(12.6

)

 

 

(13.9

)

Total deferred

 

 

(160.4

)

 

 

(53.5

)

 

 

(179.5

)

 

 

99.8

 

 

$

190.0

 

 

$

97.5

 

 

$

1.2

 

 

$

36.4

 

Allocated to Other Comprehensive Income (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

Deferred federal, state and foreign

 

$

1.8

 

 

$

(19.2

)

 

$

(2.8

)

 

$

(20.0

)

Schedule of Reconciliation of Income Tax Computed at U.S. Federal Statutory Tax Rates to Income Tax Expense

The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense was:

 

 

Year Ended
December 31,

 

 

(transition period)
Three Months Ended
December 31,

 

 

Year Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

 

2021

 

Effective Rate Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes, net

 

 

2.5

%

 

 

3.9

%

 

 

2.7

%

 

 

2.2

%

Foreign taxes

 

 

1.0

%

 

 

13.7

%

 

 

5.0

%

 

 

1.6

%

Tax audit settlements

 

 

%

 

 

0.1

%

 

 

%

 

 

-0.9

%

Valuation allowance

 

 

0.7

%

 

 

-0.1

%

 

 

3.0

%

 

 

-1.2

%

Domestic tax credits

 

 

-1.8

%

 

 

-3.0

%

 

 

-15.8

%

 

 

-2.3

%

Foreign-derived intangible income deduction

 

 

-0.2

%

 

 

-0.9

%

 

 

-8.9

%

 

 

%

Global intangible low-taxed income, net

 

 

%

 

 

0.6

%

 

 

-1.6

%

 

 

0.2

%

Share-based compensation

 

 

0.4

%

 

 

0.3

%

 

 

-5.2

%

 

 

%

CARES Act net operating loss carryback

 

 

0.3

%

 

 

-0.9

%

 

 

%

 

 

-13.8

%

Other, net

 

 

-0.1

%

 

 

0.7

%

 

 

4.8

%

 

 

-0.1

%

 

 

 

23.8

%

 

 

35.4

%

 

 

5.0

%

 

 

6.7

%

Components of Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities were comprised of the following (in millions):

 

 

December 31,

 

 

 

2023

 

 

2022

 

Deferred tax assets:

 

 

 

 

 

 

Other long-term liabilities

 

$

35.0

 

 

$

41.3

 

Research & Development

 

 

87.8

 

 

 

84.5

 

Losses and credits

 

 

37.6

 

 

 

44.5

 

Accrued warranty

 

 

14.3

 

 

 

13.4

 

Other current liabilities

 

 

26.8

 

 

 

21.6

 

Customer advances

 

 

182.0

 

 

 

75.3

 

Payroll-related obligations

 

 

21.2

 

 

 

13.1

 

Other

 

 

28.4

 

 

 

15.8

 

Gross deferred tax assets

 

 

433.1

 

 

 

309.5

 

Less valuation allowance

 

 

(12.0

)

 

 

(6.2

)

Deferred tax assets, net

 

 

421.1

 

 

 

303.3

 

Deferred tax liabilities:

 

 

 

 

 

 

Intangible assets

 

 

(81.7

)

 

 

(55.6

)

Property, plant and equipment

 

 

(30.6

)

 

 

(30.9

)

Inventories

 

 

(6.1

)

 

 

(35.0

)

Other

 

$

(67.5

)

 

 

(47.0

)

Deferred tax liabilities

 

 

(185.9

)

 

 

(168.5

)

Net deferred tax asset (liability)

 

$

235.2

 

 

$

134.8

 

The increase in deferred tax assets for customer advances relates to customer advances remaining in the Company's possession for a longer period of time. For tax purposes, the Company generally can only defer income on customer advances until the year after receipt. As the Company's backlog extends beyond one year, a greater number of customer advances have been recognized in income for tax purposes prior to recognition of revenue for book purposes.

Schedule of Classification of Deferred Tax Asset in Consolidated Balance Sheets

The net deferred tax asset is classified in the Consolidated Balance Sheets as follows (in millions):

 

 

December 31,

 

 

 

2023

 

 

2022

 

Long-term net deferred tax asset

 

$

262.0

 

 

$

134.8

 

Long-term net deferred tax liability

 

 

(26.8

)

 

 

 

Net deferred tax asset (liability)

 

$

235.2

 

 

$

134.8

 

 

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of gross unrecognized tax benefits, excluding interest and penalties, was as follows (in millions):

 

 

Year Ended
December 31,

 

 

(transition period)
Three Months Ended
December 31,

 

 

Year Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

 

2021

 

Balance at beginning of period

 

$

98.8

 

 

$

41.5

 

 

$

46.0

 

 

$

79.8

 

Additions for tax positions related to current year

 

 

5.0

 

 

 

50.2

 

 

 

0.5

 

 

 

15.8

 

Additions for tax positions related to prior years

 

 

0.7

 

 

 

20.9

 

 

 

 

 

 

0.6

 

Reductions for tax positions related to prior years

 

 

(36.5

)

 

 

(10.0

)

 

 

(5.0

)

 

 

(46.0

)

Foreign currency translation

 

 

0.3

 

 

 

(1.9

)

 

 

 

 

 

 

Lapse of statutes of limitations

 

 

(4.0

)

 

 

(1.9

)

 

 

 

 

 

(4.2

)

Balance at end of period

 

$

64.3

 

 

$

98.8

 

 

$

41.5

 

 

$

46.0

 

Schedule of Tax Years Open for Examination Under Applicable Statutes As of December 31, 2023, tax years open for examination under applicable statutes were as follows:

 

Tax Jurisdiction

 

Open Tax Years

Australia

 

2019 - 2023

Belgium

 

2020 - 2023

Brazil

 

2019 - 2023

Canada

 

2019 - 2023

China

 

2018 - 2023

Mexico

 

2019 - 2023

Netherlands

 

2018 - 2023

United Kingdom

 

2022 - 2023

Other Non-U.S. Countries

 

2017 - 2023

United States (federal general)

 

2016 - 2023

United States (state and local)

 

2013 - 2023