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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2020
Income Tax Disclosure [Abstract] |
Components of income tax expense (benefit) | The components of the Company’s income tax expense are as follows:
| Year Ended September 30,
| 2020 |  | 2019 |  | 2018
| (In millions)
Current tax expense: |  |  |  |  |
Federal | $ | 484.0 |  |  | $ | 407.3 |  |  | $ | 373.2 |
State | 104.4 |  |  | 79.3 |  |  | 53.6 |
| 588.4 |  |  | 486.6 |  |  | 426.8 |
Deferred tax expense (benefit): |  |  |  |  |
Federal | 20.0 |  |  | 13.9 |  |  | 158.7 |
State | (5.9) |  |  | 6.2 |  |  | 12.2 |
| 14.1 |  |  | 20.1 |  |  | 170.9 |
Total income tax expense | $ | 602.5 |  |  | $ | 506.7 |  |  | $ | 597.7 |
Comparison of income tax expense (benefit) and tax computed at the statutory rate | Differences between income tax expense and tax computed by applying the federal statutory rate of 21% in fiscal 2020 and 2019, and 24.5% in fiscal 2018 to income before income taxes during each year is due to the following:
| Year Ended September 30,
| 2020 |  | 2019 |  | 2018
| (In millions)
Income taxes at federal statutory rate | $ | 626.4 |  |  | $ | 446.3 |  |  | $ | 505.0 |
Increase (decrease) in tax resulting from: |  |  |  |  |
State income taxes, net of federal benefit | 79.1 |  |  | 69.1 |  |  | 59.4 |
Domestic production activities deduction | — |  |  | — |  |  | (36.7) |
Valuation allowance | (11.2) |  |  | (0.2) |  |  | (7.3) |
Tax credits | (93.4) |  |  | (1.6) |  |  | (19.0) |
Excess tax benefit from stock-based compensation | (22.3) |  |  | (16.1) |  |  | (21.2) |
Tax law change | — |  |  | — |  |  | 108.7 |
Tax contingencies | 8.9 |  |  | — |  |  | — |
Other | 15.0 |  |  | 9.2 |  |  | 8.8 |
Total income tax expense | $ | 602.5 |  |  | $ | 506.7 |  |  | $ | 597.7 |
Components of deferred tax assets and liabilities | Components of deferred income taxes are summarized as follows:
| September 30,
| 2020 |  | 2019
| (In millions)
Deferred tax assets: |  |  |
Inventory costs | $ | 37.6 |  |  | $ | 39.8 |
Inventory impairments | 21.5 |  |  | 27.9 |
Warranty and construction defect costs | 156.7 |  |  | 135.1 |
Net operating loss carryforwards | 17.5 |  |  | 31.5 |
Tax credit carryforwards | 2.1 |  |  | 3.5 |
Incentive compensation plans | 68.3 |  |  | 65.1 |
Other | 15.6 |  |  | 7.2 |
Total deferred tax assets | 319.3 |  |  | 310.1 |
Valuation allowance | (7.5) |  |  | (18.7) |
Total deferred tax assets, net of valuation allowance | $ | 311.8 |  |  | $ | 291.4 |
Deferred tax liabilities: |  |  |
Deferral of profit on home closings | 131.9 |  |  | 95.4 |
Depreciation of fixed assets | 19.0 |  |  | 14.2 |
Other | 16.0 |  |  | 18.7 |
Total deferred tax liabilities | $ | 166.9 |  |  | $ | 128.3 |
Deferred income taxes, net | $ | 144.9 |  |  | $ | 163.1 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for fiscal 2020 is as follows.
| Year Ended September 30, 2020
| (In millions)
Unrecognized tax benefits, beginning of year | $ | — |
Additions attributable to tax positions taken in the current year | 8.9 |
Additions attributable to tax positions taken in prior years | — |
Settlements | — |
Unrecognized tax benefits, end of year | $ | 8.9 |

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