Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

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

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


	For the Years Ended September 30,
	2023		2022		2021
	(in millions)
U.S.	$	13,339	$	11,051	$	11,002
Non-U.S.	7,698		7,085		5,061
Total income before income taxes	$	21,037	$	18,136	$	16,063

Comprehensive Income Tax (Expense) Benefit Components Table

Income tax provision by fiscal year consisted of the following:


	For the Years Ended September 30,
	2023		2022		2021
	(in millions)
Current:
U.S. federal	$	2,630	$	2,166	$	1,943
State and local	293		104		69
Non-U.S.	1,324		1,245		869
Total current taxes	4,247		3,515		2,881
Deferred:
U.S. federal	(339)		(231)		(57)
State and local	(1)		(77)		(28)
Non-U.S.	(143)		(28)		956
Total deferred taxes	(483)		(336)		871
Total income tax provision	$	3,764	$	3,179	$	3,752

Components of Deferred Tax Assets and Liabilities

The following table presents the components of deferred tax assets and liabilities:


	September 30,
	2023		2022
	(in millions)
Deferred Tax Assets:
Accrued compensation and benefits	$	212	$	172
Accrued litigation obligation	365		331
Client incentives	630		442
Net operating loss carryforwards	232		117
Comprehensive loss	72		21
Federal benefit of state taxes	125		133
Other	66		71
Valuation allowance	(149)		(120)
Deferred tax assets	1,553		1,167
Deferred Tax Liabilities:
Property, equipment and technology, net	(350)		(450)
Intangible assets	(6,063)		(5,788)
Unrealized gains on equity securities	(103)		(124)
Foreign taxes	(25)		(50)
Deferred tax liabilities	(6,541)		(6,412)
Net deferred tax liabilities	$	(4,988)	$	(5,245)

Reconciliation of the US Statutory Federal Tax Rate

The following table presents a reconciliation of the income tax provision to the amount of income tax determined by applying the U.S. federal statutory income tax rate to income before income taxes:


	For the Years Ended September 30,
	2023				2022				2021
	(in millions, except percentages)
U.S. federal income tax at statutory rate	$	4,418	21	%	$	3,809	21	%	$	3,373	21	%
State income taxes, net of federal benefit	245		1	%	216		1	%	222		1	%
Non-U.S. tax effect, net of federal benefit	(758)		(3	%)	(588)		(3	%)	(505)		(3	%)
Remeasurement of deferred tax balances	—		—	%	—		—	%	1,007		6	%
Reassessment of an uncertain tax position	(142)		(1	%)	—		—	%	—		—	%
Conclusion of audits	—		—	%	—		—	%	(255)		(2	%)
State tax apportionment position	—		—	%	(176)		(1	%)	—		—	%
Other, net	1		—	%	(82)		—	%	(90)		—	%
Income tax provision	$	3,764	18	%	$	3,179	18	%	$	3,752	23	%

Unrecognized Tax Benefits Reconciliation, Table

The following table presents a reconciliation of beginning and ending unrecognized tax benefits by fiscal year:


	2023		2022		2021
	(in millions)
Balance as of beginning of period	$	2,683	$	2,488	$	2,579
Increase in unrecognized tax benefits related to prior years	515		10		34
Decrease in unrecognized tax benefits related to prior years	(190)		(143)		(386)
Increase in unrecognized tax benefits related to current year	510		350		326
Decrease related to settlements with taxing authorities	(17)		(19)		(63)
Reduction related to lapsing statute of limitations	(4)		(3)		(2)
Balance as of end of period	$	3,497	$	2,683	$	2,488