Income Taxes (Tables)

12 Months Ended

Sep. 30, 2025

Income tax expense was comprised of:


	Fiscal Year Ended
	September 30, 2025		September 30, 2024		September 30, 2023

	(in millions)
Current:
Federal	$	88.9	$	15.1	$	67.7
State	26.4		(78.6)		71.9
Foreign	56.1		63.5		52.8
Total current income tax expense	171.4		—		192.4
Deferred:
Federal	7.7		45.2		(71.8)
State	(6.5)		68.1		(84.3)
Foreign	31.4		39.6		19.8
Total deferred income tax expense (benefit)	32.6		152.9		(136.3)
Total income tax expense	$	204.0	$	152.9	$	56.1

Schedule of Difference Between Federal Statutory Rate and the Effective Tax Rate

The major elements contributing to the difference between the U.S. federal statutory rate of 21% for fiscal years ended September 30, 2025, 2024 and 2023 and the effective tax rate are as follows:


	Fiscal Year Ended
	September 30, 2025				September 30, 2024				September 30, 2023
	Amount		%		Amount		%		Amount		%

	(in millions)
Tax at federal statutory rate	$	192.3	21.0	%	$	150.8	21.0	%	$	44.8	21.0	%
State income tax, net of federal benefit	16.1		1.8		(8.5)		(1.2)		(7.1)		(3.3)
Change in uncertain tax positions	46.7		5.1		18.6		2.6		9.4		4.4
Foreign residual income	41.9		4.6		43.8		6.1		59.4		27.8
Nondeductible costs	16.6		1.8		20.6		2.9		10.7		5.0
Tax rate changes	2.3		0.3		1.2		0.2		(3.2)		(1.5)
Audit settlement	1.4		0.1		0.5		0.1		1.9		0.9
Income tax credits and incentives	(59.5)		(6.5)		(63.5)		(8.8)		(68.2)		(31.9)
Legal entity restructuring	(20.1)		(2.2)		—		—		—		—
Exclusion of tax on non-controlling interests	(15.6)		(1.7)		(12.5)		(1.7)		(9.4)		(4.4)
Valuation allowance	(11.8)		(1.3)		(12.6)		(1.8)		16.6		7.8
Tax exempt income	(2.1)		(0.2)		(2.5)		(0.4)		(3.3)		(1.5)
Foreign tax rate differential	(1.1)		(0.1)		(2.8)		(0.4)		0.2		0.1
Return to provision	(0.5)		(0.1)		(3.7)		(0.5)		(0.5)		(0.2)
ACAP investment sale	—		—		20.2		2.8		—		—
Other items, net	(2.6)		(0.3)		3.3		0.4		4.8		2.1
Total income tax expense	$	204.0	22.3	%	$	152.9	21.3	%	$	56.1	26.3	%

Schedule of Deferred Tax Assets (liabilities)

The deferred tax assets (liabilities) are as follows:


	Fiscal Year Ended
	September 30, 2025		September 30, 2024

	(in millions)
Deferred tax assets:
Compensation and benefit accruals not currently deductible	$	81.8	$	85.4
Net operating loss carryforwards	99.2		107.5
Self-insurance reserves	66.6		38.3
Research and experimentation and other tax credits	34.3		67.1
Pension liability	23.5		34.9
Accrued liabilities	263.3		265.7
Capital loss carryforward	13.0		49.5
Partnership investment	15.5		22.3
Other	12.2		8.2
Total deferred tax assets	609.4		678.9
Deferred tax liabilities:
Unearned revenue	(31.0)		(4.1)
Depreciation and amortization	(58.9)		(83.7)
Acquired intangible assets	(39.6)		—
Investment in subsidiaries	(9.8)		(9.9)
Right of use assets	(82.4)		(85.2)
Contingent consideration	—		(30.5)
Other	(3.3)		(5.4)
Total deferred tax liabilities	(225.0)		(218.8)
Valuation allowance	(157.1)		(160.9)
Net deferred tax assets	$	227.3	$	299.2

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:


	Fiscal Year Ended
	September 30, 2025		September 30, 2024

	(in millions)
Balance at the beginning of the year	$	81.3	$	62.1
Gross increase in current period’s tax positions	9.2		34.5
Gross increase in prior years’ tax positions	47.0		13.9
Gross decrease in prior years’ tax positions	(6.4)		(20.1)
Decrease due to settlement with tax authorities	—		(7.4)
Decrease due to lapse of statute of limitations	(1.3)		(2.2)
Gross change due to foreign exchange fluctuations	(0.2)		0.5
Balance at the end of the year	$	129.6	$	81.3