Income Taxes

9 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

New U.S. tax legislation, which is commonly referred to as the Tax Cuts and Jobs Act (the "Act"), was enacted on December 22, 2017. The Act subjects a U.S. shareholder to tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The Company has elected to account for its GILTI tax due as a period expense in the year the tax is incurred.

Upon completing its accounting for the tax effects of the Act during fiscal year 2019, the Company recognized a net charge of $10 million, which is reflected in the Company's consolidated statement of income within Income tax provision, to adjust its one-time transition tax liability for all of its foreign subsidiaries. Also during fiscal year 2019, the Company recorded a $67 million decrease to Income tax provision to adjust the Company's reevaluation of the permanent reinvestment assertion regarding foreign earnings, as well as an increase to Income tax provision of $2 million relating to the Company's re-measurement of deferred tax balances.