Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Selected income tax data (in millions):

	2021		2020		2019
Components of income before income taxes:
United States	$	885.1	$	556.2	$	280.8
Non-United States	641.1		579.9		620.2
Total	$	1,526.2	$	1,136.1	$	901.0

Schedule of Components of Income Tax Expense (Benefit)

Components of the income tax provision:
Current:
United States	$	149.6	$	68.1	$	105.6
Non-United States	190.7		96.6		112.1
State and local	25.7		13.9		16.5
Total current	366.0		178.6		234.2
Deferred:
United States	(154.7)		(32.8)		(27.0)
Non-United States	(19.0)		(24.7)		(0.1)
State and local	(10.4)		(8.2)		(1.9)
Total deferred	(184.1)		(65.7)		(29.0)
Income tax provision	$	181.9	$	112.9	$	205.2
Total income taxes paid	$	329.3	$	187.9	$	293.3

Schedule of Effective Income Tax Rate Reconciliation

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

	2021		2020		2019
Statutory tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes	1.4		0.8		0.1
Non-United States taxes	(3.8)		(5.0)		(4.8)
Repatriation of foreign earnings	0.9		1.3		2.8
Foreign-derived intangible income	(2.8)		(1.0)		(1.6)
Settlements with taxing authorities	(1.0)		(0.2)		—
Sensia formation	0.1		(1.1)		—
Change in valuation allowance(a)	(1.7)		(2.7)		7.6
Share-based compensation	(1.1)		(1.9)		(0.9)
Research and development tax credit	(0.6)		(1.1)		(1.2)
Other	(0.5)		(0.2)		(0.2)
Effective income tax rate	11.9	%	9.9	%	22.8	%

(a) During fiscal year 2021, we reversed 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 1.7% and no remaining valuation allowance related to PTC Shares, 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):

	2021		2020
Deferred income tax assets:
Compensation and benefits	$	41.7	$	6.0
Inventory	12.8		10.5
Returns, rebates and incentives	37.5		34.5
Retirement benefits	153.1		306.8
Environmental remediation and other site-related costs	22.8		23.8
Share-based compensation	18.5		18.6
Other accruals and reserves	250.2		68.4
Investments	—		31.6
Net operating loss carryforwards	130.4		31.1
Tax credit carryforwards	20.3		17.3
Capital loss carryforwards	15.3		10.8
Other	23.7		16.8
Subtotal	726.3		576.2
Valuation allowance	(32.6)		(58.0)
Net deferred income tax assets	693.7		518.2
Deferred income tax liabilities:
Property	(43.7)		(48.0)
Intangible assets	(160.5)		(25.3)
Investments	(64.3)		—
Unremitted earnings of foreign subsidiaries	(42.0)		(28.3)
Other	(2.3)		(1.0)
Deferred income tax liabilities	(312.8)		(102.6)
Total net deferred income tax assets	$	380.9	$	415.6

Schedule of Tax Attributes and Valuation Allowances

Tax attributes and related valuation allowances at September 30, 2021 were (in millions):

Tax attributes and related valuation allowances	Tax Benefit Amount		Valuation Allowance		Carryforward Period Ends
Non-United States net operating loss carryforward	$	6.6	$	6.2	2022	-	9/30/2030
Non-United States net operating loss carryforward	36.5		3.2		Indefinite
Non-United States capital loss carryforward	15.3		15.3		Indefinite
United States credit carryforward	9.4		1.2		2030	-	2041
United States net operating loss carryforward	19.4		—		2022	-	2037
United States net operating loss carryforward	50.7		—		Indefinite
State and local net operating loss carryforward	17.2		1.2		2022	-	2038
State tax credit carryforward	10.9		—		2022	-	2035
Subtotal	166.0		27.1
Other deferred tax assets	5.5		5.5		Indefinite
Total	$	171.5	$	32.6

Schedule of Gross Unrecognized Tax Benefits

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

	2021		2020		2019
Gross unrecognized tax benefits balance at beginning of year	$	25.5	$	19.9	$	20.1
Additions based on tax positions related to the current year	0.1		—		—
Additions based on tax positions related to prior years	0.4		5.6		—
Reductions based on tax positions related to prior years	—		—		—
Reductions related to settlements with taxing authorities	(18.1)		—		—
Reductions related to lapses of statute of limitations	(3.6)		—		(0.2)
Effect of foreign currency translation	—		—		—
Gross unrecognized tax benefits balance at end of year	$	4.3	$	25.5	$	19.9