Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

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

	Years Ended September 30
	2020			2019			2018
	(In millions)
Domestic	$	(274	)	$	(66	)	$	(229	)
Foreign		241			321			346
Income from continuing operations before income taxes and equity in earnings of affiliated companies	$	(33	)	$	255		$	117

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

	Years Ended September 30
	2020			2019			2018
	(In millions)
U.S. federal and state:
Current	$	(1	)	$	2		$	14
Deferred		139			(30	)		114
Total		138			(28	)		128
Foreign:
Current		62			95			88
Deferred		(9	)		3			(23	)
Total		53			98			65
Provision (benefit) for income taxes	$	191		$	70		$	193

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
	2020			2019			2018
	(In millions)
Computed tax expense at the federal statutory rate	$	(7	)	$	53		$	29
Foreign impact of taxation at different rates, repatriation, valuation allowance, and other		4			17			(8	)
Impact of the Tax Cuts and Jobs Act of 2017		—			—			159
Global Intangible Low Taxed Income (GILTI)		(4	)		10			—
Impact of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act of 2020		(10	)		—			—
Impact of increase (decrease) in valuation allowance on U.S. deferred taxes		228			—			—
U.S. and state benefits from research and experimentation activities		(2	)		(2	)		(2	)
Provision (settlement) of unrecognized tax benefits		(7	)		(8	)		1
Impact of goodwill impairment charge		—			—			18
Permanent differences, net		—			1			(1	)
State taxes, net of federal effect		(11	)		(1	)		(3	)
Provision (benefit) for income taxes	$	191		$	70		$	193

Significant components of deferred income taxes were as follows:

	September 30
	2020			2019
	(In millions)
Deferred tax assets:
Deferred expenses	$	19		$	15
Intangible assets		37			28
Inventory		13			9
Operating lease liability		20			—
Other		32			3
Pension and other benefits		35			41
Net operating loss carryforwards		109			124
Foreign tax credit carryforwards		58			20
R&D credit carryforwards		44			43
Other business credit carryforwards		23			29
Subtotal		390			312
Valuation allowance		(317	)		(124	)
Total deferred tax assets	$	73		$	188

	September 30
	2020			2019
	(In millions)
Deferred tax liabilities:
Property, plant and equipment	$	(40	)	$	(61	)
Right of use asset		(20	)	-
Unremitted earnings of non-U.S. subsidiaries		(18	)		(5	)
Total deferred tax liabilities	$	(78	)	$	(66	)

The following table provides detail surrounding the expiration dates of NOLs and other tax credit carryforwards before valuation allowances:

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2020, 2019 and 2018 is as follows:

	Years Ended September 30
	2020			2019			2018
	(In millions)
Balance at beginning of the year	$	27		$	37		$	36
Additions based on tax provisions related to the current year		2			—			2
Additions for tax positions of prior years		2			—			1
Reductions of tax provisions of prior years		(1	)		(1	)		—
Reductions related to settlements		(5	)		(5	)		—
Reductions from lapse of statute of limitations		(2	)		(4	)		(2	)
Balance at end of the year	$	23		$	27		$	37