INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Components of Income Loss Before Income Tax

The income tax provisions were calculated based upon the following components of income (loss) before income taxes (in millions):

	2014		2013			2012
U.S. income (loss)	$	204	$	(59	)	$	23
Foreign income	111		110			114
Total	$	315	$	51		$	137

Schedule of Components of Income Tax Expense

The components of the benefit (provision) for income taxes are summarized as follows (in millions):    

	2014			2013			2012
Current tax benefit (expense):
U.S.	$	(1	)	$	(11	)	$	4
Foreign	(32		)	(59		)	(47		)
State and local	—			2			(1		)
Total current tax expense	(33		)	(68		)	(44		)
Deferred tax benefit (expense):
U.S.	(1		)	(6		)	(7		)
Foreign	3			13			(5		)
State and local	—			(3		)	(1		)
Total deferred tax benefit (expense)	2			4			(13		)
Income tax expense	$	(31	)	$	(64	)	$	(57	)

Schedule of Components of Deferred Tax Asets and Liabitlies

Net current and non-current deferred income tax assets (liabilities) included in the consolidated balance sheet consist of the tax effects of temporary differences related to the following (in millions): 

	September 30,
	2014			2013
Accrued compensation and benefits	$	18		$	18
Accrued product warranties	18			22
Inventory costs	19			17
Receivables	13			12
Accrued retiree healthcare benefits	190			209
Retirement pension plans	102			131
Property	4			1
Loss and credit carryforwards	678			733
Other	64			90
Sub-total	1,106			1,233
Less: Valuation allowances	(1,030		)	(1,166		)
Deferred income taxes - asset	$	76		$	67
Taxes on undistributed income	$	(46	)	$	(32	)
Intangible assets	(88		)	(89		)
Debt basis difference	(12		)	(16		)
Deferred income taxes - liability	$	(146	)	$	(137	)
Net deferred income tax liabilities	$	(70	)	$	(70	)

Net Current and Non-Current Deferred Income Tax Assets Liabilities

Net current and non-current deferred income tax assets (liabilities) are included in the consolidated balance sheet as follows (in millions): 

	September 30,
	2014			2013
Other current assets (see Note 9)	$	21		$	23
Other current liabilities	(3		)	(6		)
Net current deferred income taxes — asset	18			17
Other assets (see Note 11)	15			13
Other liabilities (see Note 14)	(103		)	(100		)
Net non-current deferred income taxes — liability	$	(88	)	$	(87	)

Reconciliation of Income Tax Benefit Provision at the U.S Statotory Rate Total Benefit Provision for Income Taxes

The company’s provision for income taxes was different from the provision for income taxes calculated at the U.S. statutory rate for the reasons set forth below (in millions): 

	2014			2013			2012
Expense for income taxes at statutory tax rate of 35%	$	(110	)	$	(18	)	$	(48	)
State and local income taxes	—			1			(2		)
Foreign income taxed at rates other than 35%	13			3			7
Joint venture equity income	5			6			13
Tax effect of Suspensys JV sale	—			(16		)	—
Refunds of prior year taxes	—			—			5
Goodwill	(1		)	(8		)	(6		)
Medicare Part D subsidy	—			1			4
U.S. tax impact on distributions from subsidiaries and joint ventures	(18		)	19			(90		)
Nondeductible expenses	(10		)	(9		)	(11		)
Valuation allowances	89			(44		)	68
Other	1			1			3
Income tax expense	$	(31	)	$	(64	)	$	(57	)

Summary of Income Tax Contingencies

A reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period is as follows (in millions): 

	2014			2013			2012
Balance at beginning of the period	$	94		$	107		$	109
Additions to tax positions recorded during the current year	3			3			11
Additions to tax positions recorded during the prior year	—			—			—
Reduction to tax position recorded in prior years	(2		)	(6		)	(5		)
Reductions to tax positions due to lapse of statutory limits	(7		)	(10		)	(8		)
Translation, other	—			—			—
Balance at end of the period	$	88		$	94		$	107