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Income Taxes (Tables)
12 Months Ended
Sep. 30, 2022
Income Taxes  
Schedule of income tax (benefit) expense

Fiscal Year Ended

    

September 30, 

    

September 30, 

    

September 30, 

2022

2021

2020

(in millions)

Current:

Federal

$

22.8

$

32.2

$

21.8

State

 

16.0

 

6.8

 

12.7

Foreign

 

75.8

 

53.2

 

55.7

Total current income tax expense

 

114.6

 

92.2

 

90.2

Deferred:

Federal

 

22.1

 

(28.8)

 

(21.8)

State

 

11.8

 

18.8

 

12.8

Foreign

 

(12.4)

 

6.8

 

(35.4)

Total deferred income tax benefit

 

21.5

 

(3.2)

 

(44.4)

Total income tax expense

$

136.1

$

89.0

$

45.8

Major elements contributing to the difference between the U.S. federal statutory rate of 21% for fiscal years ended September 30, 2022, 2021 and 2020 and the effective tax rate

Fiscal Year Ended

 

September 30, 

September 30, 

September 30, 

 

2022

2021

2020

 

    

Amount

    

%

    

Amount

    

%

    

Amount

    

%

 

(in millions)

 

Tax at federal statutory rate

$

115.6

 

21.0

%  

$

85.8

 

21.0

%  

$

48.8

 

21.0

%

State income tax, net of federal benefit

 

20.2

 

3.7

 

8.0

 

2.0

 

8.4

 

3.6

Foreign residual income

46.4

8.4

45.6

11.1

39.5

17.0

Nondeductible costs

19.7

3.6

6.0

1.5

15.8

6.8

Change in uncertain tax positions

15.4

2.8

8.5

2.1

(8.3)

(3.6)

Foreign tax rate differential

1.1

0.2

8.8

2.1

3.2

1.4

Income tax credits and incentives

(51.0)

(9.3)

(51.3)

(12.5)

(47.8)

(20.6)

Valuation allowance

(18.0)

(3.3)

12.4

3.0

(15.9)

(6.9)

Tax exempt income

(5.9)

(1.1)

(5.4)

(1.3)

(5.1)

(2.2)

Exclusion of tax on non-controlling interests

(5.1)

(0.9)

(6.1)

(1.5)

(3.4)

(1.5)

Tax rate changes

(4.1)

(0.7)

(26.8)

(6.5)

(0.5)

(0.2)

Audit settlement

(1.5)

(0.3)

10.4

2.5

Return to provision

(1.5)

(0.3)

(9.5)

(2.3)

5.1

2.2

Other items, net

4.8

0.9

2.6

0.6

6.0

2.7

Total income tax expense

$

136.1

 

24.7

%  

$

89.0

 

21.8

%  

$

45.8

 

19.7

%

Schedule of deferred tax assets (liabilities)

Fiscal Year Ended

    

September 30, 

    

September 30, 

2022

2021

(in millions)

Deferred tax assets:

Compensation and benefit accruals not currently deductible

$

91.6

$

130.0

Net operating loss carryforwards

 

113.7

 

169.8

Self-insurance reserves

 

4.5

 

12.3

Research and experimentation and other tax credits

 

111.4

 

117.2

Pension liability

 

52.1

 

87.7

Accrued liabilities

 

280.4

 

284.7

Capital loss carryforward

64.4

62.0

Other

 

5.3

 

37.3

Total deferred tax assets

 

723.4

 

901.0

Deferred tax liabilities:

Unearned revenue

 

(1.5)

 

(19.8)

Depreciation and amortization

 

(111.4)

 

(116.5)

Acquired intangible assets

 

(11.2)

 

(19.4)

Investment in subsidiaries

 

(10.8)

 

(13.4)

Right of use assets

(125.6)

(145.6)

Contingent consideration

(33.6)

(33.8)

Total deferred tax liabilities

 

(294.1)

 

(348.5)

Valuation allowance

 

(154.4)

 

(197.7)

Net deferred tax assets

$

274.9

$

354.8

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

Fiscal Year Ended

    

September 30, 

    

September 30, 

2022

2021

(in millions)

Balance at the beginning of the year

$

46.4

$

47.1

Gross increase in current period’s tax positions

 

17.4

 

4.3

Gross increase in prior years’ tax positions

 

2.4

 

7.5

Gross decrease in prior years’ tax positions

 

(8.0)

 

Decrease due to settlement with tax authorities

 

(1.4)

 

(1.3)

Decrease due to lapse of statute of limitations

 

(0.5)

 

Gross change due to foreign exchange fluctuations

(1.1)

(11.2)

Balance at the end of the year

$

55.2

$

46.4