Income Taxes (Tables)

12 Months Ended

Sep. 30, 2011

Income Taxes

Income (Loss) Before Income Taxes

	Years ended September 30
	2011			2010		2009
	(Dollars in millions)
Domestic	$	(25	)	$	3	$	(72	)
Foreign		228			163		(27	)
Total	$	203		$	166	$	(99	)

Provision (Benefit) On Income (Loss)

	Years ended September 30
	2011			2010			2009
	(Dollars in millions)
U.S. federal and state:
Current	$	(7	)	$	(8	)	$	(2	)
Deferred		(51	)		(14	)		(32	)
Total		(58	)		(22	)		(34	)
Foreign:
Current		57			51			27
Deferred		7			1			(14	)
Total		64			52			13
Total U.S. and foreign	$	6		$	30		$	(21	)

Reconciliation Using U.S. Statutory Rate

	Years ended September 30
	2011			2010			2009
	(Dollars in millions)
Computed tax expense at the federal statutory rate	$	70		$	58		$	(35	)
Foreign income:
Impact of taxation at different rates, repatriation and other		(29	)		(26	)		(3	)
Impact of repatriation of high tax income		(24	)		—			—
Impact of investment incentive credits		(2	)		(2	)		(1	)
Impact of foreign losses for which a current tax benefit is not available		6			17			30
State taxes, net of federal effect		—			—			—
U.S. and state benefits from research and experimentation activities		(3	)		(1	)		(4	)
Tax audit settlements		(12	)		(15	)		(9	)
Other, net		—			(1	)		1
Total	$	6		$	30		$	(21	)

Components Of Deferred Income Taxes

	September 30
	2011			2010
	(Dollars in millions)
Deferred tax assets:
Depreciation and amortization	$	73		$	67
Pension and other benefits		87			89
Environmental liabilities		3			3
Inventory		12			16
Deferred expenses		11			15
Net operating loss carry-forwards		125			131
Other tax carry-forwards		137			95
Other		28			26
Subtotal		476			442
Valuation allowances		(138	)		(126	)
Total deferred tax assets	$	338		$	316
	September 30
	2011			2010
	(Dollars in millions)
Deferred tax liabilities:
Depreciation and amortization	$	28		$	28
Pension and other benefits		2			4
Unremitted earnings of non-U.S. subsidiaries		18			12
Inventory		3			3
Other		5			6
Total deferred tax liabilities	$	56		$	53

Expiration Dates Of Carryforwards

	NOLs		Other Credits
	(Dollars in millions)
Expiration periods
2012 to 2018	$	132	$	6
2019 and thereafter		131		110
Indefinite carryforward		302		21
Total	$	565	$	137

Reconciliation Of Unrecognized Tax Benefits

	Years ended September 30
	2011			2010			2009
	(Dollars in millions)
Balance at beginning of the year	$	75		$	81		$	80
Additions based on tax provisions related to the current year		2			6			7
Additions for tax positions of prior years		1			3			4
Reductions of tax provisions of prior years		(13	)		(15	)		(10	)
Balance at end of the year	$	65		$	75		$	81