Income Taxes (Tables)

12 Months Ended

Sep. 30, 2025

Components of income tax expense (benefit)

The components of the Company’s income tax expense are as follows:


	Year Ended September 30,
	2025		2024		2023
	(In millions)
Current tax expense:
Federal	$	821.4	$	1,200.9	$	1,293.0
State	174.4		258.8		272.4
	995.8		1,459.7		1,565.4
Deferred tax expense (benefit):
Federal	104.8		15.5		(39.0)
State	18.4		3.5		(6.9)
	123.2		19.0		(45.9)
Total income tax expense	$	1,119.0	$	1,478.7	$	1,519.5

Comparison of income tax expense (benefit) and tax computed at the statutory rate

Differences between income tax expense and tax computed by applying the federal statutory rate of 21% to income before income taxes during each year is due to the following:


	Year Ended September 30,
	2025		2024		2023
	(In millions)
Income taxes at federal statutory rate	$	995.4	$	1,319.8	$	1,326.1
Increase (decrease) in tax resulting from:
State income taxes, net of federal benefit	154.1		205.8		208.1
Valuation allowance	(0.3)		0.1		(3.1)
Tax credits	(39.5)		(70.4)		(44.4)
Excess tax benefit from stock-based compensation	(16.0)		(42.7)		(25.6)
Tax contingencies	—		(1.4)		(1.5)
Other	25.3		67.5		59.9
Total income tax expense	$	1,119.0	$	1,478.7	$	1,519.5

Components of deferred tax assets and liabilities

Components of deferred income taxes are summarized as follows:


	September 30,
	2025		2024
	(In millions)
Deferred tax assets:
Inventory costs	$	39.6	$	87.3
Inventory impairments	13.4		8.7
Warranty and construction defect costs	356.2		316.2
Net operating loss carryforwards	36.5		38.9
Tax credit carryforwards	22.1		6.9
Incentive compensation plans	105.0		93.7
Other	21.2		14.0
Total deferred tax assets	594.0		565.7
Valuation allowance	(14.6)		(14.9)
Total deferred tax assets, net of valuation allowance	579.4		550.8
Deferred tax liabilities:
Deferral of profit on home closings	327.6		226.4
Depreciation of fixed assets	76.7		44.8
Deferral of income	31.9		29.3
Undistributed earnings of subsidiary	90.7		77.4
Other	8.0		5.4
Total deferred tax liabilities	534.9		383.3
Deferred income taxes, net	$	44.5	$	167.5