Income Taxes

12 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 15 — Income Taxes

The provision for income taxes from continuing operations for the years ended September 30 consisted of:

	2011			2010			2009
Current:
Federal	$	189,997		$	307,236		$	153,030
State and local, including Puerto Rico		23,394			23,441			9,626
Foreign		220,386			170,218			135,931
	$	433,777		$	500,895		$	298,587
Deferred:
Domestic	$	(14,466	)	$	(32,762	)	$	109,925
Foreign		32,100			16,687			2,734
		17,634			(16,075	)		112,659
	$	451,411		$	484,820		$	411,246

The components of Income From Continuing Operations Before Income Taxes for the years ended September 30 consisted of:

	2011		2010		2009
Domestic, including Puerto Rico	$	908,179	$	889,254	$	890,934
Foreign		808,084		771,906		687,657
	$	1,716,263	$	1,661,160	$	1,578,591

Deferred tax assets and liabilities are netted on the balance sheet by separate tax jurisdictions. At September 30, 2011 and 2010, net current deferred tax assets of $287,143 and $217,865, respectively, were included in Prepaid expenses, deferred taxes and other. Net non-current deferred tax assets of $111,786 and $152,334, respectively, were included in Other. Net current deferred tax liabilities of $7,522 and $2,587, respectively, were included in Current Liabilities — Income taxes. Net non-current deferred tax liabilities of $58,553 and $21,558, respectively, were included in Deferred Income Taxes and Other. Deferred taxes are not provided on undistributed earnings of foreign subsidiaries that are indefinitely reinvested. At September 30, 2011, the cumulative amount of such undistributed earnings indefinitely reinvested outside the United States was $3.8 billion. Determining the tax liability that would arise if these earnings were remitted is not practicable. Deferred taxes are provided for earnings outside the United States when those earnings are not considered indefinitely reinvested.

The following table summarizes the gross amounts of unrecognized tax benefits without regard to reduction in tax liabilities or additions to deferred tax assets and liabilities if such unrecognized tax benefits were settled:

	2011			2010			2009
Balance at October 1	$	90,064		$	50,547		$	69,698
Increase due to current year tax positions		37,792			27,662			8,901
Increase due to prior year tax positions		12,349			25,837			1,872
Decreases due to prior year tax positions		(1,815	)		(11,509	)		—
Decrease due to settlements and lapse of statute of limitations		(2,896	)		(2,473	)		(29,924	)
Balance at September 30	$	135,494		$	90,064		$	50,547

The total amount of unrecognized tax benefits, if recognized, would favorably impact the effective tax rate. Included in the above total is approximately $8,977 of interest and penalties, of which approximately $656 are reflected in the current year statement of operations. The Company includes interest and penalties associated with unrecognized tax benefits as a component of the Income tax provision on the Consolidated Statements of Income. The Company expects changes in the aggregate amount of unrecognized tax benefits that may occur within the next twelve months to be similar to the changes that occurred in the prior twelve months.

The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in a number of tax jurisdictions. The IRS has completed its audit for the tax years through 2005. For the Company’s other major tax jurisdictions where it conducts business, the Company’s tax years are generally open after 2005.

Deferred income taxes at September 30 consisted of:

	2011					2010
	Assets			Liabilities		Assets			Liabilities
Compensation and benefits	$	590,311		$	—	$	484,767		$	—
Property and equipment		—			433,163		—			318,640
Loss and credit carryforwards		85,731			—		116,478			—
Other		360,893			218,571		293,246			173,372
		1,036,935			651,734		894,491			492,012
Valuation allowance		(52,347	)		—		(56,425	)		—
	$	984,588		$	651,734	$	838,066		$	492,012

Valuation allowances have been established for capital loss carryforwards, state deferred tax assets, net of federal tax, related to net operating losses and credits and other deferred tax assets for which the Company has determined it is more likely than not that these benefits will not be realized. At September 30, 2011, the Company had deferred state tax assets for net state operating losses and credit carryforwards of $40,653 for which a valuation allowance of $26,800 has been established due to the uncertainty of generating sufficient taxable income in the state jurisdictions to utilize the deferred tax assets before they principally expire between 2012 and 2014.

A reconciliation of the federal statutory tax rate to the Company’s effective tax rate was as follows:

	2011			2010			2009
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
State and local income taxes, net of federal tax benefit		1.1			0.9			0.6
Effect of foreign and Puerto Rico earnings and foreign tax credits		(7.2	)		(5.3	)		(7.4	)
Effect of Research Credits and Domestic Production Activities,		(2.6	)		(1.6	)		(2.7	)
Other, net		—			0.2			0.6
		26.3	%		29.2	%		26.1	%

The approximate amounts of tax reductions related to tax holidays in various countries in which the Company does business were $60,275, $51,300 and $44,800, in 2011, 2010 and 2009, respectively. The tax holidays expire at various dates through 2023.

The Company made income tax payments, net of refunds, of $512,092 in 2011, $391,965 in 2010 and $368,724 in 2009.