Income Taxes (Tables)

12 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income from continuing operations before income taxes and equity in net earnings of affiliated companies was as follows:

	Years ended September 30
	2015			2014		2013
	(Dollars in millions)
Income from continuing operations:
Domestic	$	(439	)	$	50	$	40
Foreign		62			258		170
Total	$	(377	)	$	308	$	210

Provision (Benefit) for Income Taxes

Tax provision (benefit) for income taxes consisted of the following:

	Years ended September 30
	2015			2014			2013
	(Dollars in millions)
U.S. federal and state:
Current	$	(7	)	$	(4	)	$	(3	)
Deferred		(74	)		(4	)		(6	)
Total		(81	)		(8	)		(9	)
Foreign:
Current		48			86			70
Deferred		(12	)		14			(1	)
Total		36			100			69
Total U.S. and foreign	$	(45	)	$	92		$	60

Reconciliation Using U.S. Statutory Rate

The provision (benefit) for income taxes differed from the provision for income taxes as calculated using the U.S. statutory rate as follows:

	Years ended September 30
	2015			2014			2013
	(Dollars in millions)
Computed tax expense at the federal statutory rate	$	(132	)	$	108		$	74
Foreign income:
Impact of taxation at different rates, repatriation and    other		(24	)		(29	)		(27	)
Impact of (decrease) increase in valuation allowance on deferred taxes		(7	)		20			—
Impact of investment incentive credits		—			—			(1	)
Impact of foreign losses for which a current tax benefit is    not available		9			7			9
Impact of non-deductible net currency losses		(1	)		—			18
U.S. and state benefits from research and experimentation    activities		(2	)		—			(4	)
Tax settlements		(7	)		(7	)		(6	)
Impact of goodwill impairment charge		123			—			—
Nontaxable gain on existing equity investment		—			(10	)		—
Permanent differences, net		—			3			(4	)
State taxes, net of federal effect		(4	)		—			1
Total	$	(45	)	$	92		$	60

Components of Deferred Income Taxes

Significant components of deferred income taxes were as follows:

	September 30
	2015			2014
	(Dollars in millions)
Deferred tax assets:
Deferred expenses	$	38		$	37
Intangible assets		32			—
Inventory		9			11
Other		3			20
Pension and other benefits		72			74
Net operating loss carry-forwards		145			171
Foreign tax credit carry-forwards		42			40
R&D credit carry-forwards		31			28
Other business credit carry-forwards		40			38
Subtotal		412			419
Valuation allowances		(161	)		(186	)
Total deferred tax assets	$	251		$	233

	September 30
	2015			2014
	(Dollars in millions)
Deferred tax liabilities:
Intangible assets	$	—		$	(37	)
Property, plant and equipment		(116	)		(143	)
Total deferred tax liabilities	$	(116	)	$	(180	)

Expiration Dates of Carryforwards

The following table provides detail surrounding the expiration dates of these carryforwards:

	NOLs		Credits
	(Dollars in millions)
Expiration periods
2016 to 2022	$	323	$	51
2023 and thereafter		95		41
Indefinite carry-forwards		259		22
Total	$	677	$	114

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2015, 2014 and 2013 is as follows:

	Years ended September 30
	2015			2014			2013
	(Dollars in millions)
Balance at beginning of the year	$	41		$	50		$	55
Additions based on tax provisions related to the current    year		1			1			1
Additions for tax positions of prior years		—			—			2
Reductions of tax provisions of prior years		(1	)		(1	)		(5	)
Reductions related to settlements		(9	)		(5	)		—
Reductions from lapse of statute of limitations		(2	)		(4	)		(3	)
Balance at end of the year	$	30		$	41		$	50