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Income Taxes (Tables)

12 Months Ended

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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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 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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