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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 30, 2022
Income Tax Disclosure [Abstract] |
Provision (Benefit) For Income Taxes Allocated to Continuing Operations | The provision (benefit) for income taxes allocated to continuing operations consisted of the following:
| Year Ended September 30,
| 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | 22.8 |  |  | $ | 113.7 |  |  | $ | 104.3 |
State | 9.3 |  |  | 31.6 |  |  | 25.3 |
Foreign | 8.7 |  |  | 2.7 |  |  | 0.3 |
Total Current | 40.8 |  |  | 148.0 |  |  | 129.9 |
Deferred: |  |  |  |  |
Federal | (125.5) |  |  | 9.1 |  |  | (1.6) |
State | (23.3) |  |  | 1.5 |  |  | (2.0) |
Foreign | (12.6) |  |  | 1.2 |  |  | (2.6) |
Total Deferred | (161.4) |  |  | 11.8 |  |  | (6.2) |
Income tax expense (benefit) from continuing operations | $ | (120.6) |  |  | $ | 159.8 |  |  | $ | 123.7 |
The Domestic and Foreign Components of Income From Continuing Operations Before Income Taxes | The domestic and foreign components of income (loss) from continuing operations before income taxes were as follows:
| Year Ended September 30,
| 2022 |  | 2021 |  | 2020
Domestic | $ | (427.3) |  |  | $ | 670.2 |  |  | $ | 483.7 |
Foreign | (130.8) |  |  | 6.9 |  |  | 26.9 |
Income (loss) from continuing operations before income taxes | $ | (558.1) |  |  | $ | 677.1 |  |  | $ | 510.6 |
Reconciliation of the Federal Corporate Income Tax Rate and the Effective Tax Rate | A reconciliation of the federal corporate income tax rate and the effective tax rate on income (loss) from continuing operations before income taxes is summarized below:
| Year Ended September 30,
| 2022 |  | 2021 |  | 2020
Statutory income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Effect of foreign operations | (2.5) |  |  | (0.1) |  |  | (0.7) |
State taxes, net of federal benefit | 2.6 |  |  | 3.9 |  |  | 3.5 |
Effect of other permanent differences | 2.8 |  |  | (1.1) |  |  | — |
Research and Experimentation and other federal tax credits | 0.2 |  |  | (0.2) |  |  | (0.3) |
Effect of tax contingencies | (1.8) |  |  | — |  |  | 0.1 |
Other | (0.7) |  |  | 0.1 |  |  | 0.6 |
Effective income tax rate | 21.6 | % |  | 23.6 | % |  | 24.2 | %
During fiscal 2022, the Company recognized non-cash, pre-tax goodwill and intangible asset impairment charges of $668.3 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations. The tax impact of the impairment charges was a benefit of $148.3, which is net of the impact of non-deductible goodwill of $18.8, for fiscal 2022 and was recorded in the “Income tax expense (benefit) from continuing operations” line in the Consolidated Statements of Operations. The tax impact of non-deductible goodwill was considered a discrete item because the Company has no remaining non-deductible goodwill. This discrete item, which is included in the “Effect of foreign operations” line in the table above, decreased the fiscal 2022 effective tax rate by approximately 340 bps because the Company incurred a net loss during this period. Additionally, excess tax benefits related to share-based compensation, which are included in the “Effect of other permanent differences” line in the table above, increased the fiscal 2022 effective tax rate by approximately 260 bps.
Components of Deferred Income Tax Assets and Liabilities | Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities, and operating loss and tax credit carryforwards for tax purposes. The components of the deferred income tax assets and liabilities were as follows:
| September 30,
| 2022 |  | 2021
DEFERRED TAX ASSETS |  |  |
Accrued liabilities | $ | 80.8 |  |  | $ | 65.6 |
Lease liabilities | 70.7 |  |  | 71.0 |
Intangible assets | 60.8 |  |  | — |
Inventories | 43.2 |  |  | 16.8 |
Convertible debt investments | 25.3 |  |  | — |
Net operating loss carryovers | 21.7 |  |  | 14.2 |
Foreign tax credit carryovers | 15.0 |  |  | 14.9 |
Accounts receivable | 8.7 |  |  | 8.5 |
Other | 12.5 |  |  | 5.0 |
Gross deferred tax assets | 338.7 |  |  | 196.0 |
Valuation allowance | (40.7) |  |  | (32.3) |
Total deferred tax assets | 298.0 |  |  | 163.7 |
DEFERRED TAX LIABILITIES |  |  |
Intangible assets | — |  |  | (73.3) |
Lease right-of-use assets | (68.6) |  |  | (69.6) |
Property, plant and equipment | (65.8) |  |  | (55.8) |
Outside basis difference in equity investments | (14.8) |  |  | (7.2) |
Derivative contracts | (10.5) |  |  | — |
Other | (3.3) |  |  | (5.6) |
Total deferred tax liabilities | (163.0) |  |  | (211.5) |
Net deferred tax asset (liability) | $ | 135.0 |  |  | $ | (47.8) |
Reconciliation of the Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows:
| Year Ended September 30,
| 2022 |  | 2021 |  | 2020
Balance at beginning of year | $ | 24.1 |  |  | $ | 30.2 |  |  | $ | 29.5 |
Additions for tax positions of the current year | 11.3 |  |  | 0.3 |  |  | 0.3 |
Additions for tax positions of prior years | 2.2 |  |  | 6.1 |  |  | 4.5 |
Reductions for tax positions of prior years | (2.5) |  |  | (5.9) |  |  | (2.4) |
Settlements with tax authorities | 1.3 |  |  | 0.2 |  |  | 0.3 |
Expiration of statutes of limitation | (0.6) |  |  | (6.8) |  |  | (2.0) |
Balance at end of year | $ | 35.8 |  |  | $ | 24.1 |  |  | $ | 30.2 |

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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