v3.24.3
Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Pretax Income from Continuing Operations
The domestic and foreign pretax income from continuing operations is as follows:
Fiscal Year Ended September 30,
202420232022
(in millions)
Domestic$67 $218 $385 
Foreign534 391 355 
Income before income taxes$601 $609 $740 
Schedule of Current and Deferred Income Taxes
Current and deferred income tax expense provided are as follows:
Fiscal Year Ended September 30,
202420232022
(in millions)
Federal:
Current$26 $36 $23 
Deferred(45)(5)44 
Foreign:
Current (a)137 128 128 
Deferred3 (3)(30)
U.S. State:
Current8 19 21 
Deferred(6)(5)(1)
Income tax expense$123 $170 $185 
______________________________________
(a)Includes withholding taxes of $28 million, $38 million and $27 million for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
Schedule of Effective Income Tax Rate Reconciliation
The differences between the U.S. federal statutory income tax rate of 21.0% for each of the fiscal years ended September 30, 2024, 2023 and 2022 and income taxes provided are as follows:
Fiscal Year Ended September 30,
202420232022
(in millions)
Taxes on income at the U.S. federal statutory rate$126 $128 $155 
U.S. state and local taxes1 12 15 
Foreign income taxed at different rates, including withholding taxes
29 33 29 
Valuation allowance
— (5)(6)
Change in tax rates3 — 1 
GILTI and FDII
(3)(4)(6)
Federal research and development credits(3)(8)— 
Uncertain tax positions(3)7 (3)
Non-deductible compensation
11 8 6 
Wind down of O&O media properties
(17)— — 
Return to provision adjustments
(15)4 (4)
Nontaxable income from partnerships
(9)(1)(1)
Other3 (4)(1)
Total income tax expense
$123 $170 $185 
Schedule of Significant Components of Company's Net Deferred Tax Assets/(Liabilities) Significant components of the Company’s net deferred tax liabilities are summarized below:
September 30,
2024		September 30,
2023
(in millions)
Deferred tax assets:
Allowance and reserves$27 $25 
Employee benefits and compensation80 71 
Other accruals45 30 
Property, plant and equipment61 40 
Operating lease liabilities69 73 
Tax attribute carryforwards62 59 
Deferred revenue and debt14 17 
Total deferred tax assets358 315 
Less: Valuation allowance(25)(25)
Deferred tax assets, net of valuation allowance333 290 
Deferred tax liabilities:
Royalty advances(34)(27)
Operating lease right-of-use assets(57)(60)
Accrued royalties(52)(45)
Intangible assets(284)(318)
Debt and other(49)(24)
Total deferred tax liabilities(476)(474)
Net deferred tax liabilities$(143)$(184)
Schedule of Reconciliation of Unrecognized Tax Benefits Including Interest and Penalties
The following table reflects changes in the gross unrecognized tax benefits:
Fiscal Year Ended September 30,
202420232022
(in millions)
Gross unrecognized tax benefits - beginning of period$13 $8 $12 
Additions for current year tax positions2 3 — 
Additions for prior year tax positions— 9 1 
Subtractions for prior year tax positions(3)(7)(5)
Settlements(2)— — 
Gross unrecognized tax benefits - end of period$10 $13 $8