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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2022
Income Tax Disclosure [Abstract] |
Schedule of Domestic and Foreign Pretax (Loss) Income from Continuing Operations | The domestic and foreign pretax income (loss) from continuing operations is as follows:
| Fiscal Year Ended September 30,
| 2022 |  | 2021 |  | 2020
| (in millions)
Domestic | $ | 385 |  |  | $ | 182 |  |  | $ | (655) |
Foreign | 355 |  |  | 274 |  |  | 208 |
Income (loss) before income taxes | $ | 740 |  |  | $ | 456 |  |  | $ | (447) |
Current and Deferred Income Taxes | Current and deferred income tax expense provided are as follows:
| Fiscal Year Ended September 30,
| 2022 |  | 2021 |  | 2020
| (in millions)
Federal: |  |  |  |  |
Current | $ | 23 |  |  | $ | 6 |  |  | $ | 3 |
Deferred | 44 |  |  | 31 |  |  | (28) |
Foreign: |  |  |  |  |
Current (a) | 128 |  |  | 107 |  |  | 74 |
Deferred | (30) |  |  | (5) |  |  | (28) |
U.S. State: |  |  |  |  |
Current | 21 |  |  | 9 |  |  | 3 |
Deferred | (1) |  |  | 1 |  |  | (1) |
Income tax expense | $ | 185 |  |  | $ | 149 |  |  | $ | 23 |
______________________________________ (a)Includes withholding taxes of $27 million, $26 million and $15 million for the fiscal years ended September 30, 2022, 2021 and 2020, respectively.
Differences between U.S. Federal Statutory Income Tax Rate of 35% and Income Taxes Provided | The differences between the U.S. federal statutory income tax rate of 21.0% for each of the fiscal years ended September 30, 2022, 2021 and 2020 and income taxes provided are as follows:
| Fiscal Year Ended September 30,
| 2022 |  | 2021 |  | 2020
| (in millions)
Taxes on income at the U.S. federal statutory rate | $ | 155 |  |  | $ | 96 |  |  | $ | (94) |
U.S. state and local taxes | 15 |  |  | 10 |  |  | 2 |
Foreign income taxed at different rates, including withholding taxes | 25 |  |  | 34 |  |  | 10 |
Increase in valuation allowance | 2 |  |  | 2 |  |  | 1 |
Release of valuation allowance | (8) |  |  | (6) |  |  | (38) |
Change in tax rates | 1 |  |  | 10 |  |  | 4 |
Impact of GILTI and FDII | (6) |  |  | (4) |  |  | 2 |
IPO Costs | — |  |  | — |  |  | 22 |
Executive Compensation | 2 |  |  | 2 |  |  | 2 |
Non-deductible long term incentive plan | 4 |  |  | 3 |  |  | 112 |
Other | (5) |  |  | 2 |  |  | — |
Income tax expense | $ | 185 |  |  | $ | 149 |  |  | $ | 23 |
Significant Components of Company's Net Deferred Tax Assets/(Liabilities) | Significant components of the Company’s net deferred tax liabilities are summarized below:
| September 30, 2022 |  | September 30, 2021 (a)
| (in millions)
Deferred tax assets: |  |  |
Allowance and reserves | $ | 27 |  |  | $ | 25 |
Employee benefits and compensation | 75 |  |  | 78 |
Other accruals | 27 |  |  | 28 |
Property, plant and equipment | 30 |  |  | 19 |
Operating lease liabilities | 66 |  |  | 77 |
Tax attribute carryforwards | 65 |  |  | 135 |
Deferred revenue and debt | 17 |  |  | 14 |
Total deferred tax assets | 307 |  |  | 376 |
Less: Valuation allowance | (29) |  |  | (38) |
Deferred tax assets, net of valuation allowance | 278 |  |  | 338 |
Deferred tax liabilities: |  |  |
Royalty advances | (24) |  |  | (19) |
Operating lease right-of-use assets | (52) |  |  | (63) |
Accrued royalties | (37) |  |  | (38) |
Intangible assets | (333) |  |  | (393) |
Debt and other | (23) |  |  | (1) |
Total deferred tax liabilities | (469) |  |  | (514) |
Net deferred tax liabilities | $ | (191) |  |  | $ | (176) |
______________________________________ (a)Prior year amounts were updated to reflect an immaterial correction of previous netting of certain deferred taxes.
Reconciliation of Unrecognized Tax Benefits Including Interest and Penalties | The following table reflects changes in the gross unrecognized tax benefits, including interest and penalties:
| Fiscal Year Ended September 30,
| 2022 |  | 2021 |  | 2020
| (in millions)
Gross unrecognized tax benefits - beginning of period | $ | 12 |  |  | $ | 12 |  |  | $ | 12 |
Additions for prior year tax positions | 1 |  |  | 3 |  |  | 3 |
Subtractions for prior year tax positions | (5) |  |  | (3) |  |  | (3) |
Gross unrecognized tax benefits - end of period | $ | 8 |  |  | $ | 12 |  |  | $ | 12 |

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