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Income Taxes
 12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Inflation Reduction Act
In August 2022, the Inflation Reduction Act of 2022 (“Act”) was signed into U.S. law. Under the Act, there is a new 15% corporate minimum tax and a new 1% excise tax on stock repurchases that are effective after December 31, 2022. Further, the Act includes provisions related to climate change, energy, and health care. These provisions are not expected to have a material impact on the Company’s consolidated financial statements.

The Organisation for Economic Co-operation and Development (“OECD”) Global Anti-Base Erosion Model Rules (“Pillar Two”) aim to ensure that multinationals with revenues in excess of EUR 750 million pay a minimum effective corporate tax rate of 15% (minimum tax) in each jurisdiction in which they operate. EU member states are required to adopt the OECD Pillar rules, some countries have already adopted and other non-U.S. countries are expected to follow suit. Under these rules, the Company is required to pay a “top-up” tax to the extent that the effective tax rate in any given country is below 15%. The United States is not expected to pass Pillar Two legislation in the near term, but the top-up tax can be collected by other
countries. The Pillar Two legislation is effective for the Company with the fiscal year beginning October 1, 2024. This minimum tax, if any, will be recognized in the period in which it is incurred.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing and the business interest expense limitation. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented after. The legislation did not have a material impact on the Company’s fiscal 2025 effective tax rate or consolidated financial statements and is not expected to have a material impact in fiscal 2026. The Company continues to review the OBBBA tax provisions to assess impacts to the consolidated financial statements.
Income tax expense/(benefit) for the years ended September 30, 2025, 2024, and 2023 was allocated as follows:
Fiscal Year Ended September 30,
(in millions)202520242023
Income tax expense attributable to income from operations$102.9 $93.3 $84.5 
Taxes allocated to stockholders’ equity, related to pension liabilities— 0.3 0.2 
Taxes allocated to stockholders’ equity, related to hedge accounting0.2 8.1 11.1 
Total income tax expense$103.1 $101.7 $95.8 
The components of income tax expense/(benefit) attributable to income from operations were as follows:
Fiscal Year Ended September 30,
(in millions)202520242023
Current taxes:
U.S. federal$37.2 $26.4 $15.8 
U.S. state and local7.0 5.9 3.9 
Brazil19.7 18.2 16.0 
Germany3.4 4.2 4.5 
Singapore9.4 7.7 4.9 
United Kingdom9.5 34.5 30.9 
Other international9.4 6.9 10.9 
Total current taxes95.6 103.8 86.9 
Deferred taxes:
U.S. federal(2.0)1.7 (1.1)
U.S. state and local(1.0)0.5 — 
Brazil1.2 (3.6)— 
Germany— (0.4)— 
United Kingdom10.5 (7.2)(1.4)
Other international(1.4)(1.5)0.1 
Total deferred taxes7.3 (10.5)(2.4)
Income tax expense$102.9 $93.3 $84.5 
U.S. and international components of income from operations, before tax, were as follows:
Fiscal Year Ended September 30,
(in millions)202520242023
U.S.$148.9 $97.8 $135.1 
Brazil44.6 37.8 35.3 
Germany11.1 12.1 13.3 
Singapore70.3 55.1 38.1 
United Kingdom65.4 121.3 77.7 
Other international68.5 30.0 23.5 
Income from operations, before tax$408.8 $354.1 $323.0 
Items accounting for the difference between income taxes computed at the federal statutory rate and income tax expense were as follows:
Fiscal Year Ended September 30,
202520242023
Federal statutory rate effect of:21.0 %21.0 %21.0 %
U.S. State and local income taxes1.1 %1.5 %1.0 %
Foreign earnings and losses taxed at different rates0.5 %2.6 %1.1 %
Stock compensation(1.4)%(1.0)%(0.6)%
BEAT1.0 %— %— %
Pillar 2 minimum tax0.8 %— %— %
Non-deductible compensation1.9 %1.5 %1.5 %
Permanent items0.1 %(0.8)%1.8 %
U.S. bargain purchase gain— %— %(1.4)%
GILTI0.6 %2.0 %2.0 %
R&D Credit(0.4)%(0.5)%(0.2)%
Effective rate25.2 %26.3 %26.2 %
The components of deferred income tax assets and liabilities were as follows:
(in millions)September 30, 2025September 30, 2024
Deferred tax assets:
Share-based compensation$21.0 $12.2 
Deferred compensation— 5.4 
Net operating loss carryforwards31.5 19.6 
Capitalized interest5.0 — 
Bad debt reserve7.7 7.2 
Foreign tax credit carryforwards0.4 1.2 
Other compensation9.8 7.5 
Pension2.9 2.5 
Right of use assets30.2 30.1 
Property and equipment2.1 3.4 
Other2.4 2.9 
Total gross deferred tax assets113.0 92.0 
Less valuation allowance(18.5)(15.5)
Deferred tax assets94.5 76.5 
Deferred income tax liabilities:
Unrealized gain on securities4.1 3.1 
Prepaid expenses2.7 2.5 
Intangibles105.2 — 
Right of use liabilities25.2 26.7 
Mark to market on inventory7.6 3.8 
Other deferred liabilities3.3 0.5 
Deferred compensation9.3 — 
Hedging2.0 2.2 
Deferred income tax liabilities159.4 38.8 
Deferred income taxes, net$(64.9)$37.7 
Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.
As of September 30, 2025 and 2024, the Company has net operating loss carryforwards for U.S. federal, state, local, and foreign income tax purposes of $13.0 million and $5.3 million, net of valuation allowances, respectively, which are available to offset future taxable income in these jurisdictions. The state and local net operating loss carryforwards of $12.1 million, net of valuation allowance, begin to expire after September 2025.
The Company also has $0.6 million, net of valuation allowances, of federal net operating loss carryforwards, which consist of a portion that will expire in tax years ending 2031 through 2036, and are limited by Internal Revenue Code (“IRC”) Section 382.
The remaining portion of the federal net operating loss carryforwards do not expire, but cannot be utilized until after 2037 and are also limited by IRC Section 382. As of September 30, 2025, the Company has $0.3 million, net of valuation allowance, of foreign net operating loss carryforwards primarily in Brazil, Columbia, Germany, Netherlands and United Kingdom, which have various carryforward periods.

The valuation allowance for deferred tax assets as of September 30, 2025 was $18.5 million. The net change in the total valuation allowance for the year ended September 30, 2025 was an increase of $3.0 million. The increase was related to the increase in foreign net operating loss carryforwards and increases related to foreign tax credits. The valuation allowances as of September 30, 2025 and 2024 were primarily related to U.S. state and local and foreign net operating loss carryforwards that, in the judgment of management, are not more likely than not to be realized.
The Company does not intend to distribute earnings of its foreign subsidiaries in a taxable manner, and therefore intends to limit distributions to earnings previously taxed in the U.S., or earnings that would qualify for the 100 percent dividends received deduction, and earnings that would not result in any significant foreign taxes. The Company repatriated $73.5 million and $100.0 million during the years ended September 30, 2025 and 2024, respectively, of earnings previously taxed in the U.S. resulting in no significant incremental taxes. Therefore, the Company has not recognized a deferred tax liability on its investment in foreign subsidiaries.
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authority, based upon the technical merits of the position. The tax benefit recognized in the consolidated financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended September 30,
(in millions)202520242023
Balance, beginning of year$0.3 $— $— 
Gross increases for tax positions related to current year— — — 
Gross increases for tax positions related to prior years0.4 0.3 — 
Gross decreases for tax positions of prior years— — — 
Settlements— — — 
Lapse of statute of limitations(0.2)— — 
Balance, end of year$0.5 $0.3 $— 
The Company had $0.5 million of unrecognized tax benefits as of September 30, 2025 that, if recognized, would affect the effective tax rate. The Company had a de minimis balance of unrecognized tax benefits as of September 30, 2024 and 2023 that, if recognized, would affect the effective tax rate.
Accrued interest and penalties are included in the related tax liability line in the Consolidated Balance Sheets. The Company had $0.1 million and $0.1 million of accrued interest and penalties included in the Consolidated Balance Sheets as of September 30, 2025 and 2024, respectively.
The Company recognizes accrued interest and penalties related to income taxes as a component of income tax expense. The Company had $0.0 million of interest, net of federal benefit, and penalties recognized as a component of income tax expense during the year ended September 30, 2025, $0.1 million of interest, net of federal benefit, and penalties recognized as a component of income tax expense during the year ended September 30, 2024 and a de minimis amount during the year ended September 30, 2023.
The Company and its subsidiaries file income tax returns with the U.S. federal jurisdiction and various U.S. state and local and foreign jurisdictions. The Company has open tax years ranging from September 30, 2018 through September 30, 2025 with U.S. federal and state and local taxing authorities, however the Company has acquired net operating losses from tax year 2010 that may allow the IRS to make adjustments to positions in returns as early as 2010. In the U.K., the Company has open tax years ending September 30, 2023 to September 30, 2025. In Brazil, the Company has open tax years ranging from December 31, 2020 through December 31, 2024. In Singapore, the Company has open tax years ranging from September 30, 2021 to September 30, 2025.