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Income Taxes
6 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

7. Income Taxes

For the three and six months ended March 31, 2017, the Company recorded an income tax expense of $3 million and $20 million, respectively.  The tax expense for the three and six months ended March 31, 2017 is lower than the expected tax expense at the statutory tax rate of 35% primarily due to the U.S. tax benefit of a realized foreign currency loss on an intra-entity loan reduced by a related valuation allowance and further offset by income withholding taxes and foreign losses with no tax benefit.

For the three and six months ended March 31, 2016, the Company recorded an income tax expense of $15 million and $12 million, respectively.  The tax expense for the three months ended March 31, 2016 was higher than the expected tax expense at the statutory tax rate of 35% primarily due to income withholding taxes, foreign losses with no tax benefit and an increase in uncertain tax positions.  The tax expense for the six months ended March 31, 2016 was lower than the expected tax expense at the statutory tax rate of 35% primarily due to a $10 million benefit for changes in statutory tax rates in foreign jurisdictions and reduction in valuation allowance, partially offset by income withholding taxes, foreign losses with no tax benefit and an increase in uncertain tax positions.

The Company’s gross unrecognized tax benefits decreased during the three months ended March 31, 2017 by $13 million due primarily to the finalization of an agreement with the United Kingdom (“U.K.”) tax authority. The Company has determined that it is reasonably possible that the gross unrecognized tax benefits as of March 31, 2017 could decrease by up to approximately $3 million related to various ongoing audits and settlement discussions in various foreign jurisdictions during the next twelve months.