Income Taxes (Tables)

12 Months Ended

Sep. 30, 2024

Schedule of Components of Income Tax Expense

Income tax expense consisted of the following for the years ended September 30:


(In millions)	2024		2023		2022
Current
Federal	$	34.7	$	8.0	$	9.4
State	8.3		(5.5)		4.3
Non-U.S.	2.6		1.0		3.0
	45.6		3.5		16.7
Deferred
Federal	20.8		36.8		16.2
State	2.7		(3.2)		1.3
Non-U.S.	—		—		0.5
	23.5		33.6		18.0
Income tax expense	$	69.1	$	37.1	$	34.7

Schedule and Reconciliation of the Statutory Federal Income Tax

The following presents pre-tax income and the principal components of the reconciliation between the effective tax rate and the U.S. federal statutory income tax rate in effect for the years ended September 30:


(In millions)	2024			2023			2022
Income before income taxes
United States	$	286.5		$	242.7		$	119.1
Non-U.S.	(2.9)			(6.2)			25.0
Total income before income taxes	$	283.6		$	236.5		$	144.1

U.S. statutory tax rate	21		%	21		%	21		%
Income taxes computed at U.S. statutory tax rate	$	59.6		$	49.7		$	30.3
(Decrease) increase in amount computed resulting from:
Unrecognized tax benefits	0.1			0.1			0.1
State taxes, net of federal benefit	9.2			11.2			5.2
International rate differential	(0.1)			0.1			(0.4)
Permanent items	1.7			0.1			(1.0)
Remeasurement of net deferred taxes	(0.1)			(1.1)			(0.5)
Return-to-provision adjustments	(0.7)			(0.9)			(0.4)

Change in valuation allowances	(1.7)			(27.7)			1.8
Tax Matters Agreement activity	—			5.4			—
Other	1.1			0.2			(0.4)
Income tax expense	$	69.1		$	37.1		$	34.7
Effective tax rate	24.4		%	15.7		%	24.1		%

Schedule of Deferred Tax Assets and Liabilities

A summary of the deferred tax assets and liabilities included in the Consolidated Balance Sheets follows as of September 30:


(In millions)	2024		2023
Deferred tax assets
Non-U.S. net operating loss carryforwards (a)	$	2.9	$	1.1
State net operating loss carryforwards (b)	6.9		8.2
Employee benefit obligations	33.9		34.6
Compensation accruals	15.8		17.9
Credit carryforwards (c)	0.3		0.3
Operating lease liabilities	107.9		95.2

Other	10.3		12.4
Valuation allowances (d)	(1.0)		(3.0)
Net deferred tax assets	177.0		166.7
Deferred tax liabilities
Goodwill and other intangibles	25.9		19.1
Property, plant and equipment	154.1		134.7
Operating lease assets	75.4		68.1
Other	0.2		0.3
Total deferred tax liabilities	255.6		222.2
Total net deferred tax liabilities (e)	$	(78.6)	$	(55.5)

(a)Gross non-U.S. net operating loss carryforwards of $10.6 million expire in fiscal years 2039 to 2044.

(b)Apportioned gross state net operating loss carryforwards of $130.2 million expire in fiscal years 2029 through 2037.

(c)Credit carryforwards consist primarily of state tax credits that generally expire in fiscal years 2025 through 2032.

(d)Valuation allowances at September 30, 2024 primarily relate to nondeductible executive compensation and state net operating loss carryforwards that are not expected to be realized or realizable.

(e)Balances are presented in the Consolidated Balance Sheets based on the net position of each tax jurisdiction.

Schedule of Gross Unrecognized Tax Benefits

The aggregate changes in the balance of gross unrecognized tax benefits were as follows for the years ended September 30:


(In millions)	2024		2023		2022
Gross unrecognized tax benefits as of October 1	$	35.7	$	8.2	$	8.7
Increases related to tax positions from prior years	0.1		0.6		0.1
Decreases related to tax positions from prior years	(2.1)		(0.6)		(0.6)
Increases related to tax positions taken during the current year	—		27.7		0.8

Lapses of statutes of limitation	(0.6)		(0.2)		(0.8)
Gross unrecognized tax benefits as of September 30 (a)	$	33.1	$	35.7	$	8.2

(a)These unrecognized tax benefits would favorably impact the continuing operations and discontinued operations effective income tax rates, if recognized. Accruals for interest and penalties were $1.8 million as of September 30, 2024 and 2023, respectively.