Taxes on Income (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of taxes on income

Taxes on income were as follows:

(in millions)
for the fiscal years ended September 30,	2020			2019			2018
Current expense
Federal	$	154.9		$	343.4		$	1,343.7
State	28.8			37.0			38.0
Non-U.S.	54.2			66.8			141.1
Deferred benefit	(7.1		)	(4.9		)	(50.3		)
Total	$	230.8		$	442.3		$	1,472.5

Schedule of income before taxes

Income before taxes consisted of the following:

(in millions)
for the fiscal years ended September 30,	2020		2019		2018
U.S.	$	771.7	$	1,151.1	$	1,458.1
Non-U.S.	246.2		496.7		757.1
Total	$	1,017.9	$	1,647.8	$	2,215.2

Components of deferred tax assets and liabilities

The significant components of deferred tax assets and deferred tax liabilities were as follows:

(in millions)
as of September 30,	2020			2019
Deferred Tax Assets
Capitalized mixed service costs	$	326.1		$	—
Net operating loss and state credit carry-forwards	317.0			31.9
Deferred compensation and benefits	160.6			39.7
Foreign tax credit carry-forwards	103.0			—
Debt premium	81.9			—
Stock-based compensation	26.6			19.6
Unrealized foreign exchange losses	1.2			11.0
Other	120.9			30.4
Total deferred tax assets	1,137.3			132.6
Valuation allowance	(320.6		)	(26.9		)
Deferred tax assets, net of valuation allowance	816.7			105.7
Deferred Tax Liabilities
Goodwill and other purchased intangibles	1,009.4			159.5
Depreciation on property and equipment	23.6			22.5
Other	44.9			23.0
Total deferred tax liabilities	1,077.9			205.0
Net Deferred Tax Liability	$	261.2		$	99.3

Components of net deferred tax liability as classified in the consolidated balance sheets

The components of the net deferred tax liability were classified in the consolidated balance sheets as follows:

(in millions)
as of September 30,	2020		2019
Other assets	$	44.1	$	20.8
Deferred tax liabilities	305.3		120.1
Net Deferred Tax Liability	$	261.2	$	99.3

Reconciliation of the amount of tax expense at the federal statutory rate and taxes on income

A reconciliation of the amount of tax expense at the federal statutory rate and taxes on income as reflected in the consolidated statements of income is as follows:

(in millions)
for the fiscal years ended September 30,	2020					2019					2018
Federal taxes at statutory rate	$	213.8		21.0	%	$	346.0		21.0	%	$	542.7		24.5	%
Transition tax on deemed repatriation of undistributed foreign earnings	—			—		86.0			5.2	%	983.2			44.4	%
Revaluation of net deferred tax liabilities	—			—		—			—		(53.3		)	(2.4	%)
Other Tax Act impacts	—			—		0.4			—		38.9			1.8	%
State taxes, net of federal tax effect	28.2			2.8	%	29.7			1.8	%	16.6			0.7	%
Capital loss on investments, net of valuation allowance	(27.0		)	(2.7	%)	—			—		—			—
Effect of non-U.S. operations	6.9			0.7	%	(21.3		)	(1.3	%)	(61.9		)	(2.8	%)
Effect of net loss (income) attributable to noncontrolling interests	2.5			0.2	%	(2.1		)	(0.1	%)	5.3			0.2	%
Other	6.4			0.7	%	3.6			0.2	%	1.0			0.1	%
Tax Provision	$	230.8		22.7	%	$	442.3		26.8	%	$	1,472.5		66.5	%

Reconciliation of gross unrecognized tax benefits

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

(in millions)
for the fiscal years ended September 30,	2020			2019			2018
Balance at beginning of year	$	202.6		$	77.5		$	81.1
Additions from business combinations	141.8			—			—
Additions for tax positions of prior years	0.9			131.8			3.6
Reductions for tax positions of prior years	(0.6		)	(2.9		)	(6.6		)
Tax positions related to the current year	12.2			10.7			11.6
Settlements with taxing authorities	(0.3		)	(2.2		)	—
Expirations of statute of limitations	(13.7		)	(12.3		)	(12.2		)
Balance at End of Year	$	342.9		$	202.6		$	77.5