Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Taxes

Schedule of income tax (benefit) expense

	Fiscal Year Ended
	September 30,		September 30,		September 30,
	2021		2020		2019
	(in millions)
Current:
Federal	$	32.2	$	21.8	$	(17.3)
State		6.8		12.7		29.8
Foreign		53.2		55.7		41.7
Total current income tax expense		92.2		90.2		54.2
Deferred:
Federal		(28.8)		(21.8)		(26.1)
State		18.8		12.8		(24.6)
Foreign		6.8		(35.4)		10.0
Total deferred income tax benefit		(3.2)		(44.4)		(40.7)
Total income tax expense	$	89.0	$	45.8	$	13.5

Major elements contributing to the difference between the U.S. federal statutory rate of 24.5% for fiscal year 2018 and 35% for fiscal years ended 2017 and 2016 and the effective tax rate

	Fiscal Year Ended
	September 30,				September 30,				September 30,
	2021				2020				2019
	Amount		%		Amount		%		Amount		%
	(in millions)
Tax at federal statutory rate	$	85.8	21.0	%	$	48.8	21.0	%	$	52.0	21.0	%
State income tax, net of federal benefit		8.0	2.0			8.4	3.6			7.0	2.8
Foreign residual income		45.6	11.1			39.5	17.0			35.8	14.5
Valuation allowance		12.4	3.0			(15.9)	(6.9)			(26.5)	(10.7)
Audit settlement		10.4	2.5			—	—			(4.6)	(1.9)
Foreign tax rate differential		8.8	2.1			3.2	1.4			(3.1)	(1.3)
Change in uncertain tax positions		8.5	2.1			(8.3)	(3.6)			5.6	2.3
Nondeductible costs		6.0	1.5			15.8	6.8			7.6	3.1
Income tax credits and incentives		(51.3)	(12.5)			(47.8)	(20.6)			(44.7)	(18.1)
Tax rate changes		(26.8)	(6.5)			(0.5)	(0.2)			(1.9)	(0.8)
Return to provision		(9.5)	(2.3)			5.1	2.2			(0.2)	(0.1)
Exclusion of tax on non-controlling interests		(6.1)	(1.5)			(3.4)	(1.5)			(5.3)	(2.1)
Tax exempt income		(5.4)	(1.3)			(5.1)	(2.2)			(3.9)	(1.6)
Other items, net		2.6	0.6			6.0	2.7			(4.3)	(1.7)
Total income tax expense	$	89.0	21.8	%	$	45.8	19.7	%	$	13.5	5.4	%

Schedule of deferred tax assets (liabilities)

	Fiscal Year Ended
	September 30,		September 30,
	2021		2020
	(in millions)
Deferred tax assets:
Compensation and benefit accruals not currently deductible	$	130.0	$	119.4
Net operating loss carryforwards		169.8		173.2
Self-insurance reserves		12.3		17.6
Research and experimentation and other tax credits		117.2		112.9
Pension liability		87.7		95.1
Accrued liabilities		284.7		307.6
Capital loss carryforward		62.0		104.8
Other		37.3		26.0
Total deferred tax assets		901.0		956.6
Deferred tax liabilities:
Unearned revenue		(19.8)		(40.3)
Depreciation and amortization		(116.5)		(106.7)
Acquired intangible assets		(19.4)		(24.5)
Investment in subsidiaries		(13.4)		(10.9)
Right of use assets		(145.6)		(164.9)
Contingent consideration		(33.8)		(33.6)
Total deferred tax liabilities		(348.5)		(380.9)
Valuation allowance		(197.7)		(217.5)
Net deferred tax assets	$	354.8	$	358.2

Reconciliation of the beginning and ending amount of gross unrecognized tax benefits

	Fiscal Year Ended
	September 30,		September 30,
	2021		2020
	(in millions)
Balance at the beginning of the year	$	47.1	$	55.7
Gross increase in current period’s tax positions		4.3		2.8
Gross increase in prior years’ tax positions		7.5		—
Gross decrease in prior years’ tax positions		—		(7.9)
Decrease due to settlement with tax authorities		(1.3)		(0.5)
Decrease due to lapse of statute of limitations		—		(3.5)
Gross change due to foreign exchange fluctuations		(11.2)		0.5
Balance at the end of the year	$	46.4	$	47.1