INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2024

Income tax expense (benefit) was calculated based upon the following components of income (loss) from continuing operations before income taxes for the years ended September 30, 2024, 2023 and 2022:



(in millions)	2024		2023		2022
United States	$	8.0	$	(399.8)	$	(263.0)
Outside the United States	155.6		109.6		172.7
Income (loss) from continuing operations before income taxes	$	163.6	$	(290.2)	$	(90.3)

Schedule of Components of Income Tax Expense

The components of income tax expense (benefit) for the years ended September 30, 2024, 2023 and 2022 are as follows:



(in millions)	2024		2023		2022
Current tax expense:
U.S. Federal	$	27.4	$	81.8	$	7.7
Foreign	31.9		44.9		24.7
State and local	1.3		(0.4)		(1.1)
Total current tax expense	60.6		126.3		31.3
Deferred tax expense (benefit):
U.S. Federal	6.2		(197.7)		(26.5)
Foreign	1.2		5.0		(1.2)
State and local	(3.7)		9.9		(16.9)
Total deferred tax expense (benefit)	3.7		(182.8)		(44.6)
Income tax expense (benefit)	$	64.3	$	(56.5)	$	(13.3)

Schedule of Reconciliation of Income Tax Expense (Benefit)

The following reconciles the total income tax expense (benefit), based on the U.S. Federal statutory income tax rate of 21% with the Company’s recognized income tax expense (benefit):



(in millions)	2024		2023		2022
U.S. Statutory federal income tax expense (benefit)	$	34.4	$	(60.9)	$	(19.0)
Permanent items	8.1		5.0		(1.7)
Goodwill impairment	—		2.8		—
Foreign statutory rate vs. U.S. statutory rate	(3.7)		(1.6)		(4.7)
State income taxes, net of federal effect	(3.2)		(14.5)		(8.3)
State effective rate change	1.0		(4.0)		1.2

GILTI	5.0		2.1		16.5
GILTI impact of retroactive law changes	—		—		(3.2)

Residual tax on foreign earnings	1.9		1.5		4.8
Change in valuation allowance	1.9		0.2		3.6
Unrecognized tax expense	7.3		3.8		2.2
Share based compensation adjustments	0.3		0.3		(5.6)
Research and development tax credits	(2.3)		(1.8)		(1.9)

Partnership outside basis adjustment	7.7		7.0		1.2
Return to provision adjustments and other, net	5.9		3.6		1.6
Income tax expense (benefit)	$	64.3	$	(56.5)	$	(13.3)

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of September 30, 2024 and 2023 are as follows:



(in millions)	2024		2023
Deferred tax assets
Employee benefits	$	27.4	$	22.9

Inventories and receivables	28.0		31.9
Marketing and promotional accruals	5.1		5.3
Property, plant and equipment	2.3		2.8
Unrealized losses	22.2		30.5
Intangibles	9.6		9.3

Operating lease liabilities	27.7		27.6
Net operating loss and other carry forwards	322.2		331.6
Other	21.1		17.0
Total deferred tax assets	465.6		478.9
Deferred tax liabilities
Property, plant and equipment	4.4		7.9
Unrealized gains	6.8		11.1
Intangibles	171.8		167.2
Operating lease assets	23.4		24.6
Investment in partnership	78.3		80.3
Taxes on unremitted foreign earnings	1.7		1.2
Other	13.7		13.0
Total deferred tax liabilities	300.1		305.3
Net deferred tax liabilities	165.5		173.6
Valuation allowance	(321.4)		(333.4)
Net deferred tax liabilities, net valuation allowance	$	(155.9)	$	(159.8)
Reported as:
Deferred charges and other	$	14.9	$	15.0
Deferred income taxes (noncurrent liability)	170.8		174.8

Schedule of Unrecognized Tax Benefits

The following table summarizes the changes to the amount of unrecognized tax benefits for the years ended September 30, 2024, 2023 and 2022:


(in millions)	2024		2023		2022
Unrecognized tax benefits, beginning of year	$	121.1	$	100.9	$	18.0
Gross increase – tax positions in prior period	77.5		21.5		84.4
Gross decrease – tax positions in prior period	(9.2)		(34.4)		(2.9)
Gross increase – tax positions in current period	1.7		33.4		1.7
Settlements	(0.6)		—		—
Lapse of statutes of limitations	(0.3)		(0.3)		(0.3)
Unrecognized tax benefits, end of year	$	190.2	$	121.1	$	100.9