Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

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

	Years Ended September 30
	2019			2018			2017
	(In millions)
Domestic	$	(66	)	$	(229	)	$	(8	)
Foreign		321			346			307
Income from continuing operations before income taxes and equity in earnings of affiliated companies	$	255		$	117		$	299

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

	Years Ended September 30
	2019			2018			2017
	(In millions)
U.S. federal and state:
Current	$	2		$	14		$	5
Deferred		(30	)		114			(26	)
Total		(28	)		128			(21	)
Foreign:
Current		95			88			59
Deferred		3			(23	)		(5	)
Total		98			65			54
Provision (benefit) for income taxes	$	70		$	193		$	33

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
	2019			2018			2017
	(In millions)
Computed tax expense at the federal statutory rate	$	53		$	29		$	105
Foreign income:
Impact of taxation at different rates, repatriation, losses and other		42			6			(75	)
Impact of increase (decrease) in valuation allowance on deferred taxes		(25	)		(16	)		(7	)
Impact of foreign losses for which a current tax benefit is not available		—			—			1
Impact of non-deductible net currency losses		—			2			—
Impact of the Tax Cuts and Jobs Act of 2017		—			159			—
Global Intangible Low Taxed Income (GILTI)		10			—			—
U.S. and state benefits from research and experimentation activities		(2	)		(2	)		(2	)
Provision (settlement) of unrecognized tax benefits		(8	)		1			7
Impact of goodwill impairment charge		—			18			—
Permanent differences, net		1			(1	)		5
State taxes, net of federal effect		(1	)		(3	)		(1	)
Provision (benefit) for income taxes	$	70		$	193		$	33

Significant components of deferred income taxes were as follows:

	September 30
	2019			2018
	(In millions)
Deferred tax assets:
Deferred expenses	$	15		$	17
Intangible assets		28			23
Inventory		9			4
Other		3			4
Pension and other benefits		41			45
Net operating loss carryforwards		124			146
Foreign tax credit carryforwards		20			12
R&D credit carryforwards		43			41
Other business credit carryforwards		29			39
Subtotal		312			331
Valuation allowance		(124	)		(169	)
Total deferred tax assets	$	188		$	162

	September 30
	2019			2018
	(In millions)
Deferred tax liabilities:
Property, plant and equipment	$	(61	)	$	(56	)
Unremitted earnings of non-U.S. subsidiaries		(5	)		(14	)
Total deferred tax liabilities	$	(66	)	$	(70	)

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 2019, 2018 and 2017 is as follows:

	Years Ended September 30
	2019			2018			2017
	(In millions)
Balance at beginning of the year	$	37		$	36		$	30
Additions based on tax provisions related to the current year		—			2			2
Additions for tax positions of prior years		—			1			8
Reductions of tax provisions of prior years		(1	)		—			(1	)
Reductions related to settlements		(5	)		—			(2	)
Reductions from lapse of statute of limitations		(4	)		(2	)		(1	)
Balance at end of the year	$	27		$	37		$	36