Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

U.S. and Non-U.S. Income Before Income Tax

The Company’s income before taxes by fiscal year consisted of the following:


	For the Years Ended September 30,
	2021		2020		2019
	(in millions)
U.S.	$	11,002	$	9,178	$	9,536
Non-U.S.	5,061		4,612		5,348
Total income before taxes	$	16,063	$	13,790	$	14,884

Comprehensive Income Tax (Expense) Benefit Components Table

Income tax provision by fiscal year consisted of the following:


	For the Years Ended September 30,
	2021		2020		2019
	(in millions)
Current:
U.S. federal	$	1,943	$	1,662	$	1,504
State and local	69		212		243
Non-U.S.	869		743		843
Total current taxes	2,881		2,617		2,590
Deferred:
U.S. federal	(57)		42		184
State and local	(28)		9		28
Non-U.S.	956		256		2
Total deferred taxes	871		307		214
Total income tax provision	$	3,752	$	2,924	$	2,804

Components of Deferred Tax Assets and Liabilities

At September 30, 2021 and 2020, the tax effect of temporary differences that give rise to significant portions of deferred tax assets and liabilities, are presented below:


	September 30,
	2021		2020
	(in millions)
Deferred Tax Assets:
Accrued compensation and benefits	$	166	$	114
Accrued litigation obligation	234		204
Client incentives	327		121
Net operating loss carryforwards	104		80
Comprehensive loss	106		148
Federal benefit of state taxes	157		203
Other	55		60
Valuation allowance	(103)		(84)
Deferred tax assets	1,046		846
Deferred Tax Liabilities:
Property, equipment and technology, net	(346)		(343)
Intangible assets	(6,452)		(5,492)
Unrealized gains on equity securities	(203)		(48)
Foreign taxes	(93)		(137)
Deferred tax liabilities	(7,094)		(6,020)
Net deferred tax liabilities	$	(6,048)	$	(5,174)

Reconciliation of the US Statutory Federal Tax Rate

The income tax provision differs from the amount of income tax determined by applying the applicable U.S. federal statutory rate to pretax income, as a result of the following:


	For the Years Ended September 30,
	2021				2020				2019
	(in millions, except percentages)
U.S. federal income tax at statutory rate	$	3,373	21	%	$	2,896	21	%	$	3,126	21	%
State income taxes, net of federal benefit	222		1	%	199		2	%	223		2	%
Non-U.S. tax effect, net of federal benefit	(505)		(3	%)	(483)		(4	%)	(527)		(4	%)
Remeasurement of deferred tax balances	1,007		6	%	329		2	%	—		—	%
Conclusion of audits	(255)		(2	%)	—		—	%	—		—	%
Other, net	(90)		—	%	(17)		—	%	(18)		—	%
Income tax provision	$	3,752	23	%	$	2,924	21	%	$	2,804	19	%

Unrecognized Tax Benefits Reconciliation, Table

A reconciliation of beginning and ending unrecognized tax benefits by fiscal year is as follows:


	2021		2020		2019
	(in millions)
Balance at beginning of period	$	2,579	$	2,234	$	1,658
Increases of unrecognized tax benefits related to prior years	34		66		216
Decreases of unrecognized tax benefits related to prior years	(386)		(83)		(13)
Increases of unrecognized tax benefits related to current year	326		376		384
Decreases related to settlements with taxing authorities	(63)		(12)		(9)
Reductions related to lapsing statute of limitations	(2)		(2)		(2)
Balance at end of period	$	2,488	$	2,579	$	2,234