Income Taxes (Tables)

12 Months Ended

Sep. 30, 2024

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,
	2024		2023		2022
	(in millions)
U.S.	$	14,537	$	13,339	$	11,051
Non-U.S.	9,379		7,698		7,085
Total income before income taxes	$	23,916	$	21,037	$	18,136

Comprehensive Income Tax (Expense) Benefit Components Table

Income tax provision by fiscal year consisted of the following:


	For the Years Ended September 30,
	2024		2023		2022
	(in millions)
Current:
U.S. federal	$	2,694	$	2,630	$	2,166
State and local	298		293		104
Non-U.S.	1,281		1,324		1,245
Total current taxes	4,273		4,247		3,515
Deferred:
U.S. federal	(132)		(339)		(231)
State and local	(18)		(1)		(77)
Non-U.S.	50		(143)		(28)
Total deferred taxes	(100)		(483)		(336)
Total income tax provision	$	4,173	$	3,764	$	3,179

Components of Deferred Tax Assets and Liabilities

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


	September 30,
	2024		2023
	(in millions)
Deferred Tax Assets:
Accrued compensation and benefits	$	221	$	212
Accrued litigation	374		365
Client incentives	855		630
Net operating loss carryforwards	206		232
Comprehensive loss	79		72
Federal benefit of state taxes	16		125
Other	102		66
Valuation allowance	(212)		(149)
Deferred tax assets	1,641		1,553
Deferred Tax Liabilities:
Property, equipment and technology, net	(295)		(350)
Intangible assets	(6,404)		(6,063)
Unrealized gains on equity securities	(81)		(103)
Foreign taxes	(22)		(25)
Deferred tax liabilities	(6,802)		(6,541)
Net deferred tax liabilities	$	(5,161)	$	(4,988)

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,
	2024				2023				2022
	(in millions, except percentages)
U.S. federal income tax at statutory rate	$	5,022	21	%	$	4,418	21	%	$	3,809	21	%
State income taxes, net of federal benefit	258		1	%	245		1	%	216		1	%
Non-U.S. tax effect, net of federal benefit	(828)		(4	%)	(758)		(3	%)	(588)		(3	%)
Reassessment of an uncertain tax position	—		—	%	(142)		(1	%)	—		—	%
Conclusion of audits	(223)		(1	%)	—		—	%	—		—	%
State tax apportionment position	—		—	%	—		—	%	(176)		(1	%)
Other, net	(56)		—	%	1		—	%	(82)		—	%
Income tax provision	$	4,173	17	%	$	3,764	18	%	$	3,179	18	%

Unrecognized Tax Benefits Reconciliation, Table

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


	2024		2023		2022
	(in millions)
Balance as of beginning of period	$	3,497	$	2,683	$	2,488
Increase in unrecognized tax benefits related to prior years	148		515		10
Decrease in unrecognized tax benefits related to prior years	(322)		(190)		(143)
Increase in unrecognized tax benefits related to current year	556		510		350
Decrease related to settlements with taxing authorities	(127)		(17)		(19)
Reduction related to lapsing statute of limitations	(2)		(4)		(3)
Balance as of end of period	$	3,750	$	3,497	$	2,683