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Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

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,
			2021						2020						2019
			(In millions)
Current tax expense:
Federal			$	978.1					$	484.0					$	407.3
State			197.0						104.4						79.3
			1,175.1						588.4						486.6
Deferred tax expense (benefit):
Federal			(12.7)						20.0						13.9
State			2.7						(5.9)						6.2
			(10.0)						14.1						20.1
Total income tax expense			$	1,165.1					$	602.5					$	506.7

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% to income before income taxes during each year is due to the following:

			Year Ended September 30,
			2021						2020						2019
			(In millions)
Income taxes at federal statutory rate			$	1,124.8					$	626.4					$	446.3
Increase (decrease) in tax resulting from:
State income taxes, net of federal benefit			166.9						79.1						69.1
Valuation allowance			(3.3)						(11.2)						(0.2)
Tax credits			(116.3)						(93.4)						(1.6)
Excess tax benefit from stock-based compensation			(38.4)						(22.3)						(16.1)
Tax contingencies			(6.0)						8.9						—
Other			37.4						15.0						9.2
Total income tax expense			$	1,165.1					$	602.5					$	506.7

Components of deferred tax assets and liabilities

Components of deferred income taxes are summarized as follows:

			September 30,
			2021						2020
			(In millions)
Deferred tax assets:
Inventory costs			$	63.5					$	37.6
Inventory impairments			12.7						21.5
Warranty and construction defect costs			190.5						156.7
Net operating loss carryforwards			11.7						17.5
Tax credit carryforwards			1.6						2.1
Incentive compensation plans			77.5						68.3
Other			15.6						15.6
Total deferred tax assets			373.1						319.3
Valuation allowance			(4.2)						(7.5)
Total deferred tax assets, net of valuation allowance			368.9						311.8
Deferred tax liabilities:
Deferral of profit on home closings			166.7						131.9
Depreciation of fixed assets			14.4						19.0
Other			32.5						16.0
Total deferred tax liabilities			213.6						166.9
Deferred income taxes, net			$	155.3					$	144.9

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for fiscal 2021 and 2020 is as follows:

			Year Ended September 30,
			2021						2020
			(In millions)
Unrecognized tax benefits, beginning of year			$	8.9					$	—
Additions attributable to tax positions taken in the current year			1.5						8.9
Additions attributable to tax positions taken in prior years			—						—
Settlements			(7.5)						—
Unrecognized tax benefits, end of year			$	2.9					$	8.9

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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.

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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.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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