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Income Taxes (Tables)
12 Months Ended
Sep. 30, 2019
Income Taxes  
Schedule of income tax (benefit) expense

Fiscal Year Ended

    

September 30,

    

September 30,

    

September 30,

2019

2018

2017

(in millions)

Current:

Federal

$

9.2

$

(122.4)

$

10.3

State

 

45.4

 

19.0

 

17.9

Foreign

 

43.2

 

47.1

 

29.3

Total current income tax expense (benefit)

 

97.8

 

(56.3)

 

57.5

Deferred:

Federal

 

(67.0)

 

14.5

 

(8.3)

State

 

(41.7)

 

39.0

 

10.4

Foreign

 

10.8

 

(16.8)

 

(51.9)

Total deferred income tax (benefit) expense

 

(97.9)

 

36.7

 

(49.8)

Total income tax (benefit) expense

$

(0.1)

$

(19.6)

$

7.7

Major elements contributing to the difference between the U.S. federal statutory rate of 24.5% for fiscal year 2018 and 35% for fiscal years ended 2017 and 2016 and the effective tax rate

Fiscal Year Ended

 

September 30,

September 30,

September 30,

 

2019

2018

2017

 

    

Amount

    

%

    

Amount

    

%

    

Amount

    

%

 

(in millions)

 

Tax at federal statutory rate

$

(38.7)

 

21.0

%  

$

43.5

 

24.5

%  

$

150.3

 

35.0

%

State income tax, net of federal benefit

 

9.0

 

(4.9)

 

17.8

 

10.0

 

24.3

 

5.7

Impairment of goodwill, nondeductible for tax

82.7

(44.9)

33.9

19.1

Foreign residual income

28.9

(15.7)

10.3

5.8

(9.2)

(2.1)

Nondeductible costs

9.2

(5.0)

3.5

1.9

5.8

1.4

Change in uncertain tax positions

6.0

(3.3)

(31.4)

(17.7)

9.5

2.2

Return to provision, primarily foreign tax credits

3.7

(2.0)

(18.5)

(10.4)

Income tax credits and incentives

(47.6)

25.8

(37.2)

(21.0)

(56.8)

(13.2)

Valuation allowance

(20.3)

11.0

58.7

33.1

(51.2)

(11.9)

Exclusion of tax on non-controlling interests

(16.3)

8.9

(14.9)

(8.4)

(28.2)

(6.6)

Foreign tax rate differential

(4.8)

2.6

(1.6)

(0.9)

(19.2)

(4.5)

Audit settlement

(4.6)

2.5

(27.7)

(15.6)

Tax exempt income

 

(3.9)

 

2.1

 

(7.4)

 

(4.2)

 

(17.9)

 

(4.2)

Impact of changes in tax law

(1.5)

0.8

(47.8)

(26.9)

Other items, net

(1.9)

1.2

(0.8)

(0.4)

0.3

Total income tax expense (benefit)

$

(0.1)

 

0.1

%  

$

(19.6)

 

(11.1)

%  

$

7.7

 

1.8

%

Schedule of deferred tax assets (liabilities)

Fiscal Year Ended

    

September 30,

    

September 30,

2019

2018

(in millions)

Deferred tax assets:

Compensation and benefit accruals not currently deductible

$

132.9

$

108.3

Net operating loss carryforwards

 

228.2

 

252.4

Self-insurance reserves

 

12.9

 

13.5

Research and experimentation and other tax credits

 

120.5

 

178.1

Pension liability

 

105.1

 

88.2

Accrued liabilities

 

125.4

 

63.4

Other

 

28.8

 

27.8

Total deferred tax assets

 

753.8

 

731.7

Deferred tax liabilities:

Unearned revenue

 

(106.9)

 

(121.1)

Depreciation and amortization

 

(78.5)

 

(135.9)

Acquired intangible assets

 

(49.6)

 

(56.0)

Investment in subsidiaries

(108.7)

(109.5)

Total deferred tax liabilities

 

(343.7)

 

(422.5)

Valuation allowance

 

(169.1)

 

(197.1)

Net deferred tax assets

$

241.0

$

112.1

Reconciliation of the beginning and ending amount of gross unrecognized tax benefits

Fiscal Year Ended

    

September 30,

    

September 30,

2019

2018

(in millions)

Balance at the beginning of the year

$

60.0

$

102.1

Gross increase in current period’s tax positions

 

3.4

 

4.0

Gross increase in prior years’ tax positions

 

0.8

 

2.2

Gross decrease in prior years’ tax positions

 

(1.0)

 

(14.4)

Decrease due to settlement with tax authorities

 

 

(31.9)

Decrease due to lapse of statute of limitations

 

 

(1.7)

Gross change due to foreign exchange fluctuations

(0.8)

(0.3)

Balance at the end of the year

$

62.4

$

60.0