Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Selected income tax data (in millions):

	2020		2019		2018
Components of income before income taxes:
United States	$	556.2	$	280.8	$	721.6
Non-United States	579.9		620.2		609.2
Total	$	1,136.1	$	901.0	$	1,330.8

Schedule of Components of Income Tax Expense (Benefit)

Components of the income tax provision:
Current:
United States	$	68.1		$	105.6		$	475.3
Non-United States	96.6			112.1			131.4
State and local	13.9			16.5			18.1
Total current	178.6			234.2			624.8
Deferred:
United States	(32.8		)	(27.0		)	118.6
Non-United States	(24.7		)	(0.1		)	48.0
State and local	(8.2		)	(1.9		)	3.9
Total deferred	(65.7		)	(29.0		)	170.5
Income tax provision	$	112.9		$	205.2		$	795.3
Total income taxes paid	$	187.9		$	293.3		$	222.9

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between the U.S. federal statutory rate and our effective tax rate was:

	2020		2019		2018
Statutory tax rate	21.0	%	21.0	%	24.5	%
State and local income taxes	0.8		0.1		1.0
Non-United States taxes	(5.2	)	(4.8	)	(4.4	)
Repatriation of foreign earnings	1.3		2.8		4.2
Foreign-derived intangible income	(1.0	)	(1.6	)	—
Impact of the Tax Act	—		—		36.6
Sensia formation	(1.1	)	—		—
Change in valuation allowance(a)	(2.7	)	7.6		0.7
Share-based compensation	(1.9	)	(0.9	)	(1.3	)
Research and development tax credit	(1.1	)	(1.2	)	(1.3	)
Other	(0.2	)	(0.2	)	(0.2	)
Effective income tax rate	9.9	%	22.8	%	59.8	%

^(a) During fiscal year 2020, we reversed a portion of our valuation allowance against deferred tax assets associated with the change in fair value of the PTC Shares. This resulted in a decrease to the effective tax rate of 2.7% and a corresponding valuation allowance of $30.1 million, as described further in the table below.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to our net deferred income tax assets (liabilities) were (in millions):

	2020			2019
Deferred income tax assets:
Compensation and benefits	$	6.0		$	6.0
Inventory	10.5			11.1
Returns, rebates and incentives	34.5			29.8
Retirement benefits	306.8			298.5
Environmental remediation and other site-related costs	23.8			26.2
Share-based compensation	18.6			21.6
Other accruals and reserves	68.4			46.9
Investments	31.6			69.6
Net operating loss carryforwards	31.1			18.5
Tax credit carryforwards	17.3			16.5
Capital loss carryforwards	10.8			9.5
Other	16.8			10.7
Subtotal	576.2			564.9
Valuation allowance	(58.0		)	(93.8		)
Net deferred income tax assets	518.2			471.1
Deferred income tax liabilities:
Property	(48.0		)	(55.8		)
Intangible assets	(25.3		)	(24.4		)
Unremitted earnings of foreign subsidiaries	(28.3		)	(25.5		)
Other	(1.0		)	(1.3		)
Deferred income tax liabilities	(102.6		)	(107.0		)
Total net deferred income tax assets	$	415.6		$	364.1

Schedule of Tax Attributes and Valuation Allowances

Tax attributes and related valuation allowances at September 30, 2020 were (in millions):

Tax attributes and related valuation allowances	Tax Benefit Amount		Valuation Allowance		Carryforward Period Ends
Non-United States net operating loss carryforward	$	19.0	$	5.8	2021	-	2030
Non-United States net operating loss carryforward	4.9		4.0		Indefinite
Non-United States capital loss carryforward	10.8		10.8		Indefinite
United States credit carryforward	1.1		1.1		2021		2030
United States net operating loss carryforward	0.3		—		2021	-	2036
State and local net operating loss carryforward	6.9		1.4		2021	-	2038
State tax credit carryforward	16.2		0.7		2021	-	2035
Subtotal	59.2		23.8
Other deferred tax assets	34.2		34.2		Indefinite
Total	$	93.4	$	58.0

Schedule of Gross Unrecognized Tax Benefits

A reconciliation of our gross unrecognized tax benefits, excluding interest and penalties, is as follows (in millions):

	2020		2019			2018
Gross unrecognized tax benefits balance at beginning of year	$	19.9	$	20.1		$	31.1
Additions based on tax positions related to the current year	—		—			—
Additions based on tax positions related to prior years	5.6		—			3.0
Reductions based on tax positions related to prior years	—		—			(1.1		)
Reductions related to settlements with taxing authorities	—		—			(11.3		)
Reductions related to lapses of statute of limitations	—		(0.2		)	(1.6		)
Effect of foreign currency translation	—		—			—
Gross unrecognized tax benefits balance at end of year	$	25.5	$	19.9		$	20.1