Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Taxes

Schedule of income tax (benefit) expense

	Fiscal Year Ended
	September 30,		September 30,		September 30,
	2020		2019		2018
	(in millions)
Current:
Federal	$	21.8	$	(17.3)	$	(159.7)
State		12.7		29.8		2.3
Foreign		55.7		41.7		51.1
Total current income tax expense (benefit)		90.2		54.2		(106.3)
Deferred:
Federal		(21.8)		(26.1)		119.6
State		12.8		(24.6)		4.1
Foreign		(35.4)		10.0		(20.9)
Total deferred income tax (benefit) expense		(44.4)		(40.7)		102.8
Total income tax (benefit) expense	$	45.8	$	13.5	$	(3.5)

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,
	2020				2019				2018
	Amount		%		Amount		%		Amount		%
	(in millions)
Tax at federal statutory rate	$	48.8	21.0	%	$	52.0	21.0	%	$	52.4	24.5	%
State income tax, net of federal benefit		8.4	3.6			7.0	2.8			(1.3)	(0.6)
Foreign residual income		39.5	17.0			35.8	14.5			9.9	4.6
Nondeductible costs		15.8	6.8			7.6	3.1			2.5	1.2
Return to provision		5.1	2.2			(0.2)	(0.1)			(21.2)	(9.9)
Foreign tax rate differential		3.2	1.4			(3.1)	(1.3)			(0.7)	(0.3)
Income tax credits and incentives		(47.8)	(20.6)			(44.7)	(18.1)			(28.6)	(13.4)
Valuation allowance		(15.9)	(6.9)			(26.5)	(10.7)			37.8	17.7
Change in uncertain tax positions		(8.3)	(3.6)			5.6	2.3			(26.0)	(12.2)
Exclusion of tax on non-controlling interests		(3.4)	(1.5)			(5.3)	(2.1)			(5.0)	(2.3)
Tax exempt income		(5.1)	(2.2)			(3.9)	(1.6)			(7.4)	(3.5)
Audit settlement		—	—			(4.6)	(1.9)			(27.7)	(13.0)
Impact of changes in tax law		—	—			(1.5)	(0.6)			12.5	5.9
Other items, net		5.5	2.5			(4.7)	(1.9)			(0.7)	(0.4)
Total income tax expense (benefit)	$	45.8	19.7	%	$	13.5	5.4	%	$	(3.5)	(1.7)	%

Schedule of deferred tax assets (liabilities)

	Fiscal Year Ended
	September 30,		September 30,
	2020		2019
	(in millions)
Deferred tax assets:
Compensation and benefit accruals not currently deductible	$	119.4	$	98.0
Net operating loss carryforwards		173.2		132.6
Self-insurance reserves		17.6		11.3
Research and experimentation and other tax credits		112.9		138.5
Pension liability		95.1		78.2
Accrued liabilities		303.2		97.2
Capital loss carryforward		104.8		—
Other		26.0		14.8
Total deferred tax assets		952.2		570.6
Deferred tax liabilities:
Unearned revenue		(40.3)		(53.4)
Depreciation and amortization		(106.7)		(76.3)
Acquired intangible assets		(24.5)		(25.1)
Investment in subsidiaries		(10.9)		(10.9)
Right of use assets		(164.9)		—
Contingent consideration		(33.6)		—
Total deferred tax liabilities		(380.9)		(165.7)
Valuation allowance		(217.5)		(120.6)
Net deferred tax assets	$	353.8	$	284.3

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

	Fiscal Year Ended
	September 30,		September 30,
	2020		2019
	(in millions)
Balance at the beginning of the year	$	55.7	$	53.8
Gross increase in current period’s tax positions		2.8		2.9
Gross increase in prior years’ tax positions		—		0.8
Gross decrease in prior years’ tax positions		(7.9)		(1.0)
Decrease due to settlement with tax authorities		(0.5)		—
Decrease due to lapse of statute of limitations		(3.5)		—
Gross change due to foreign exchange fluctuations		0.5		(0.8)
Balance at the end of the year	$	47.1	$	55.7