Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Selected income tax data (in millions):

	2022		2021		2020
Components of Income before income taxes
United States	$	371.3	$	885.1	$	556.2
Non-United States	702.3		641.1		579.9
Total	$	1,073.6	$	1,526.2	$	1,136.1

Schedule of Components of Income Tax Expense (Benefit)

Components of Income tax provision
Current
United States	$	71.6	$	149.6	$	68.1
Non-United States	102.9		190.7		96.6
State and local	13.6		25.7		13.9
Total current	188.1		366.0		178.6
Deferred
United States	(10.7)		(154.7)		(32.8)
Non-United States	(13.0)		(19.0)		(24.7)
State and local	(9.9)		(10.4)		(8.2)
Total deferred	(33.6)		(184.1)		(65.7)
Income tax provision	$	154.5	$	181.9	$	112.9
Total income taxes paid	$	340.2	$	329.3	$	187.9

Schedule of Effective Income Tax Rate Reconciliation

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

	2022		2021		2020
Statutory tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes	0.5		1.4		0.8
Non-United States taxes	(5.4)		(3.8)		(5.0)
Repatriation of foreign earnings	1.1		0.9		1.3
Foreign-derived intangible income	(0.5)		(2.8)		(1.0)
Settlements with taxing authorities	—		(1.0)		(0.2)
Sensia formation	0.1		0.1		(1.1)
Change in valuation allowance (1)	(0.5)		(1.7)		(2.7)
Share-based compensation	(1.0)		(1.1)		(1.9)
Research and development tax credit	(1.0)		(0.6)		(1.1)
Other	0.1		(0.5)		(0.2)
Effective income tax rate	14.4	%	11.9	%	9.9	%

(1) During fiscal 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) consists of (in millions):

	2022		2021
Deferred income tax assets
Compensation and benefits	$	26.7	$	41.7
Inventory	10.4		12.8
Returns, rebates and incentives	61.7		37.5
Retirement benefits	80.7		153.1
Environmental remediation and other site-related costs	23.6		22.8
Share-based compensation	21.5		18.5
Other accruals and reserves	249.9		250.2
Net operating loss carryforwards	85.2		130.4
Tax credit carryforwards	19.3		20.3
Capital loss carryforwards	13.0		15.3
Other	10.7		23.7
Subtotal	602.7		726.3
Valuation allowance	(23.1)		(32.6)
Net deferred income tax assets	579.6		693.7
Deferred income tax liabilities
Property	(36.9)		(43.7)
Intangible assets	(149.8)		(160.5)
Investments	(26.0)		(64.3)
Unremitted earnings of foreign subsidiaries	(20.0)		(42.0)
Other	(2.1)		(2.3)
Deferred income tax liabilities	(234.8)		(312.8)
Total net deferred income tax assets	$	344.8	$	380.9

Schedule of Tax Attributes and Valuation Allowances

Tax attributes and related valuation allowances at September 30, 2022 consists of (in millions):

Tax attributes and related valuation allowances	Tax Benefit Amount		Valuation Allowance		Carryforward Period Ends
Non-United States net operating loss carryforward	$	3.7	$	3.7	2023	-	9/30/2030
Non-United States net operating loss carryforward	42.2		1.6		Indefinite
Non-United States capital loss carryforward	12.9		12.8		Indefinite
United States credit carryforward	9.3		—		2030	-	2041
United States capital loss carryforward	0.1		—		2026
United States net operating loss carryforward	0.1		—		2023	-	2036
United States net operating loss carryforward	26.5		—		Indefinite
State and local net operating loss carryforward	12.7		1.1		2024	-	2040
State tax credit carryforward	10.0		—		2023	-	2037
Subtotal	117.5		19.2
Other deferred tax assets	3.9		3.9		Indefinite
Total	$	121.4	$	23.1

Schedule of Gross Unrecognized Tax Benefits

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

	2022		2021		2020
Gross unrecognized tax benefits balance at beginning of year	$	4.3	$	25.5	$	19.9
Additions based on tax positions related to the current year	0.1		0.1		—
Additions based on tax positions related to prior years	—		0.4		5.6
Reductions related to settlements with taxing authorities	(0.5)		(18.1)		—
Reductions related to lapses of statute of limitations	—		(3.6)		—
Gross unrecognized tax benefits balance at end of year	$	3.9	$	4.3	$	25.5