Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

U.S. and Non-U.S. Income Before Income Tax

The Company’s income before taxes by fiscal year consisted of the following:

	For the Years Ended September 30,
	2020		2019		2018
	(in millions)
U.S.	$	9,178	$	9,536	$	8,088
Non-U.S.	4,612		5,348		4,718
Total income before taxes	$	13,790	$	14,884	$	12,806

Comprehensive Income Tax (Expense) Benefit Components Table

Income tax provision by fiscal year consisted of the following:

	For the Years Ended September 30,
	2020		2019		2018
	(in millions)
Current:
U.S. federal	$	1,662	$	1,504	$	2,819
State and local	212		243		219
Non-U.S.	743		843		754
Total current taxes	2,617		2,590		3,792
Deferred:
U.S. federal	42		184		(1,214)
State and local	9		28		(96)
Non-U.S.	256		2		23
Total deferred taxes	307		214		(1,287)
Total income tax provision	$	2,924	$	2,804	$	2,505

Components of Deferred Tax Assets and Liabilities

The tax effect of temporary differences that give rise to significant portions of deferred tax assets and liabilities at September 30, 2020 and 2019, are presented below:

	September 30,
	2020		2019
	(in millions)
Deferred Tax Assets:
Accrued compensation and benefits	$	114	$	117
Accrued litigation obligation	204		273
Client incentives	121		125
Net operating loss carryforwards	80		65
Comprehensive loss	148		33
Federal benefit of state taxes	203		148
Other	12		6
Valuation allowance	(84)		(69)
Deferred tax assets	798		698
Deferred Tax Liabilities:
Property, equipment and technology, net	(343)		(314)
Intangible assets	(5,492)		(4,983)
Foreign taxes	(137)		(184)
Deferred tax liabilities	(5,972)		(5,481)
Net deferred tax liabilities	$	(5,174)	$	(4,783)

Reconciliation of the US Statutory Federal Tax Rate

The income tax provision differs from the amount of income tax determined by applying the applicable U.S. federal statutory rate to pretax income, as a result of the following:

	For the Years Ended September 30,
	2020				2019				2018
	(in millions, except percentages)
U.S. federal income tax at statutory rate	$	2,896	21	%	$	3,126	21	%	$	3,141	25	%
State income taxes, net of federal benefit	199		2	%	223		2	%	201		2	%
Non-U.S. tax effect, net of federal benefit	(483)		(4)	%	(527)		(4)	%	(465)		(4)	%
Transition tax on foreign earnings	—		—	%	—		—	%	1,147		9	%
Remeasurement of deferred tax balances	329		2	%	—		—	%	(1,133)		(9)	%
Other, net	(17)		—	%	(18)		—	%	(386)		(3)	%
Income tax provision	$	2,924	21	%	$	2,804	19	%	$	2,505	20	%

Unrecognized Tax Benefits Reconciliation, Table

A reconciliation of beginning and ending unrecognized tax benefits by fiscal year is as follows: 

	2020		2019		2018
	(in millions)
Balance at beginning of period	$	2,234	$	1,658	$	1,353
Increases of unrecognized tax benefits related to prior years	66		216		367
Decreases of unrecognized tax benefits related to prior years	(83)		(13)		(233)
Increases of unrecognized tax benefits related to current year	376		384		172
Decreases related to settlements with taxing authorities	(12)		(9)		—
Reductions related to lapsing statute of limitations	(2)		(2)		(1)
Balance at end of period	$	2,579	$	2,234	$	1,658