v3.22.2.2
INCOME TAXES (Tables)
 12 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Provision (Benefit) For Income Taxes Allocated to Continuing Operations
The provision (benefit) for income taxes allocated to continuing operations consisted of the following:
Year Ended September 30,
 202220212020
Current:
Federal$22.8 $113.7 $104.3 
State9.3 31.6 25.3 
Foreign8.7 2.7 0.3 
Total Current40.8 148.0 129.9 
Deferred:
Federal(125.5)9.1 (1.6)
State(23.3)1.5 (2.0)
Foreign(12.6)1.2 (2.6)
Total Deferred(161.4)11.8 (6.2)
Income tax expense (benefit) from continuing operations$(120.6)$159.8 $123.7 
The Domestic and Foreign Components of Income From Continuing Operations Before Income Taxes
The domestic and foreign components of income (loss) from continuing operations before income taxes were as follows:
 Year Ended September 30,
 202220212020
Domestic$(427.3)$670.2 $483.7 
Foreign(130.8)6.9 26.9 
Income (loss) from continuing operations before income taxes$(558.1)$677.1 $510.6 
Reconciliation of the Federal Corporate Income Tax Rate and the Effective Tax Rate
A reconciliation of the federal corporate income tax rate and the effective tax rate on income (loss) from continuing operations before income taxes is summarized below:
 Year Ended September 30,
 202220212020
Statutory income tax rate21.0 %21.0 %21.0 %
Effect of foreign operations(2.5)(0.1)(0.7)
State taxes, net of federal benefit2.6 3.9 3.5 
Effect of other permanent differences2.8 (1.1)— 
Research and Experimentation and other federal tax credits0.2 (0.2)(0.3)
Effect of tax contingencies(1.8)— 0.1 
Other(0.7)0.1 0.6 
Effective income tax rate21.6 %23.6 %24.2 %
During fiscal 2022, the Company recognized non-cash, pre-tax goodwill and intangible asset impairment charges of $668.3 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations. The tax impact of the impairment charges was a benefit of $148.3, which is net of the impact of non-deductible goodwill of $18.8, for fiscal 2022 and was recorded in the “Income tax expense (benefit) from continuing operations” line in the Consolidated Statements of Operations. The tax impact of non-deductible goodwill was considered a discrete item because the Company has no remaining non-deductible goodwill. This discrete item, which is included in the “Effect of foreign operations” line in the table above, decreased the fiscal 2022 effective tax rate by approximately 340 bps because the Company incurred a net loss during this period. Additionally, excess tax benefits related to share-based compensation, which are included in the “Effect of other permanent differences” line in the table above, increased the fiscal 2022 effective tax rate by approximately 260 bps.
Components of Deferred Income Tax Assets and Liabilities Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities, and operating loss and tax credit carryforwards for tax purposes. The components of the deferred income tax assets and liabilities were as follows:
 September 30,
 20222021
DEFERRED TAX ASSETS
Accrued liabilities$80.8 $65.6 
Lease liabilities70.7 71.0 
Intangible assets60.8 — 
Inventories43.2 16.8 
Convertible debt investments25.3 — 
Net operating loss carryovers21.7 14.2 
Foreign tax credit carryovers15.0 14.9 
Accounts receivable8.7 8.5 
Other12.5 5.0 
Gross deferred tax assets338.7 196.0 
Valuation allowance(40.7)(32.3)
Total deferred tax assets298.0 163.7 
DEFERRED TAX LIABILITIES
Intangible assets— (73.3)
Lease right-of-use assets(68.6)(69.6)
Property, plant and equipment(65.8)(55.8)
Outside basis difference in equity investments(14.8)(7.2)
Derivative contracts(10.5)— 
Other(3.3)(5.6)
Total deferred tax liabilities(163.0)(211.5)
Net deferred tax asset (liability)$135.0 $(47.8)
Reconciliation of the Unrecognized Tax Benefits A reconciliation of the unrecognized tax benefits is as follows:
Year Ended September 30,
202220212020
Balance at beginning of year$24.1 $30.2 $29.5 
Additions for tax positions of the current year11.3 0.3 0.3 
Additions for tax positions of prior years2.2 6.1 4.5 
Reductions for tax positions of prior years(2.5)(5.9)(2.4)
Settlements with tax authorities1.3 0.2 0.3 
Expiration of statutes of limitation(0.6)(6.8)(2.0)
Balance at end of year$35.8 $24.1 $30.2