Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

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

	Years Ended September 30
	2017			2016			2015
	(In millions)
Domestic	$	(19	)	$	(26	)	$	(439	)
Foreign		307			220			62
Income from continuing operations before income taxes and equity in earnings of affiliated companies	$	288		$	194		$	(377	)

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

	Years Ended September 30
	2017			2016			2015
	(In millions)
U.S. federal and state:
Current	$	5		$	7		$	(7	)
Deferred		(30	)		(33	)		(74	)
Total		(25	)		(26	)		(81	)
Foreign:
Current		59			62			48
Deferred		(5	)		(2	)		(12	)
Total		54			60			36
Provision (benefit) for income taxes	$	29		$	34		$	(45	)

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
	2017			2016			2015
	(In millions)
Computed tax expense at the federal statutory rate	$	101		$	68		$	(132	)
Foreign income:
Impact of taxation at different rates, repatriation, losses and other		(75	)		(37	)		(24	)
Impact of increase (decrease) in valuation allowance on deferred taxes		(7	)		7			(7	)
Impact of foreign losses for which a current tax benefit is not available		1			—			9
Impact of non-deductible net currency losses		—			2			(1	)
U.S. and state benefits from research and experimentation activities		(2	)		(2	)		(2	)
Provision (settlement) of unrecognized tax benefits		7			1			(7	)
Benefit from prior currency loss		—			(3	)		—
Impact of goodwill impairment charge		—			—			123
Permanent differences, net		5			—			—
State taxes, net of federal effect		(1	)		(2	)		(4	)
Provision (benefit) for income taxes	$	29		$	34		$	(45	)

Significant components of deferred income taxes were as follows:

	September 30
	2017			2016
	(In millions)
Deferred tax assets:
Deferred expenses	$	22		$	25
Intangible assets		43			45
Inventory		14			13
Other		14			4
Pension and other benefits		59			83
Net operating loss carry-forwards		149			144
Foreign tax credit carry-forwards		132			63
R&D credit carry-forwards		38			35
Other business credit carry-forwards		37			41
Subtotal		508			453
Valuation allowance		(168	)		(177	)
Total deferred tax assets	$	340		$	276

	September 30
	2017			2016
	(In millions)
Deferred tax liabilities:
Property, plant and equipment	$	(116	)	$	(101	)
Unremitted earnings of non-U.S. subsidiaries		(12	)		—
Total deferred tax liabilities	$	(128	)	$	(101	)

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

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2017, 2016 and 2015 is as follows:

	Years Ended September 30
	2017			2016			2015
	(In millions)
Balance at beginning of the year	$	30		$	30		$	41
Additions based on tax provisions related to the current year		2			2			1
Additions for tax positions of prior years		8			5			—
Reductions of tax provisions of prior years		(1	)		(3	)		(1	)
Reductions related to settlements		(2	)		—			(9	)
Reductions from lapse of statute of limitations		(1	)		(4	)		(2	)
Balance at end of the year	$	36		$	30		$	30