INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2015

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):

	2015		2014		2013
U.S. income (loss)	$	24	$	204	$	(59	)
Foreign income	43		111		110
Total	$	67	$	315	$	51

Schedule of Components of Income Tax Expense

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

	2015			2014			2013
Current tax benefit (expense):
U.S.	$	(4	)	$	(1	)	$	(11	)
Foreign	(20		)	(32		)	(59		)
State and local	(1		)	—			2
Total current tax expense	(25		)	(33		)	(68		)
Deferred tax benefit (expense):
U.S.	3			(1		)	(6		)
Foreign	21			3			13
State and local	—			—			(3		)
Total deferred tax benefit	24			2			4
Income tax expense	$	(1	)	$	(31	)	$	(64	)

Schedule of Components of Deferred Tax Assets and Liabilities

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,
	2015			2014
Accrued compensation and benefits	$	27		$	18
Accrued product warranties	19			18
Inventory costs	20			19
Receivables	16			13
Accrued retiree healthcare benefits	175			190
Retirement pension plans	95			102
Property	9			4
Loss and credit carryforwards	608			678
Other	77			64
Sub-total	1,046			1,106
Less: Valuation allowances	(961		)	(1,030		)
Deferred income taxes - asset	$	85		$	76
Taxes on undistributed income	$	(45	)	$	(46	)
Intangible assets	(85		)	(88		)
Debt basis difference	(8		)	(12		)
Deferred income taxes - liability	$	(138	)	$	(146	)
Net deferred income tax liabilities	$	(53	)	$	(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,
	2015			2014
Other current assets (see Note 10)	$	20		$	21
Other current liabilities	(2		)	(3		)
Net current deferred income taxes — asset	18			18
Other assets (see Note 12)	28			15
Other liabilities (see Note 15)	(99		)	(103		)
Net non-current deferred income taxes — liability	$	(71	)	$	(88	)

Summary of Tax Credit Carryforwards

The expiration periods for deferred tax assets related to net operating losses and tax credit carryforwards as of September 30, 2015 are included below (in millions). Also included are the associated valuation allowances on these deferred tax assets (in millions).

	Fiscal Year Expiration Periods
	2016-2020		2021-2030		2031-2035		Indefinite		Total
Net Operating Losses and Tax Credit Carryforwards	$	36	$	274	$	30	$	268	$	608
Valuation Allowances on these Deferred Tax Assets	$	33	$	271	$	30	$	245	$	579

Reconciliation of Income Tax Benefit Provision at the U.S Statutory 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): 

	2015			2014			2013
Expense for income taxes at statutory tax rate of 35%	$	(23	)	$	(110	)	$	(18	)
State and local income taxes	(1		)	—			1
Foreign income taxed at rates other than 35%	7			13			3
Joint venture equity income	3			5			6
Tax effect of Suspensys JV sale	—			—			(16		)
Goodwill	(2		)	(1		)	(8		)
Debt basis difference	(4		)	(1		)	—
U.S. tax impact on distributions from subsidiaries and joint ventures	(18		)	(18		)	19
Nondeductible expenses	(9		)	(10		)	(9		)
Valuation allowances	47			89			(44		)
Other	(1		)	2			2
Income tax expense	$	(1	)	$	(31	)	$	(64	)

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): 

	2015			2014			2013
Balance at beginning of the period	$	88		$	94		$	107
Additions to tax positions recorded during the current year	5			3			3
Reduction to tax position recorded in prior years	(2		)	(2		)	(6		)
Reductions to tax positions due to lapse of statutory limits	(11		)	(7		)	(10		)
Translation, other	(4		)	—			—
Balance at end of the period	$	76		$	88		$	94