Income Taxes (Tables)

12 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Summary of Provision for Income Taxes Related to Continuing Operations

A summary of the provision for income taxes related to continuing operations follows.

(In millions)	2024			2023			2022
Current
Federal	$	21		$	(17	)	$	3
State		3			(5	)		7
Foreign		55			46			50
		79			24			60
Deferred		(302	)		(32	)		(35	)
Income tax expense (benefit)	$	(223	)	$	(8	)	$	25

Summary of Temporary Differences of Deferred Tax Assets and Liabilities

Temporary differences that give rise to significant deferred tax assets and liabilities as of September 30 are presented in the following table.

(In millions)	2024			2023
Deferred tax assets
Foreign net operating loss carryforwards(a)	$	24		$	24
Employee benefit obligations		19			17
Environmental, self-insurance and litigation reserves (net of receivables)		95			110
State net operating loss carryforwards (net of unrecognized tax benefits)(b)		23			18
Capital loss carryback/carryforward		106			—
Compensation accruals		25			25
Credit carryforwards (net of unrecognized tax benefits)(c)		17			18
Other items		37			25
Other lease liability		14			13
Goodwill and other intangibles(e)		20			—
Valuation allowances(d)		(64	)		(56	)
Total deferred tax assets		316			194
Deferred tax liabilities
Goodwill and other intangibles(e)		—			150
Property, plant and equipment		123			158
Right of use assets		12			12
Total deferred tax liabilities		135			320
Net deferred tax asset (liability)	$	181		$	(126	)

(a)Gross net operating loss carryforwards of $97 million will expire in future years beyond 2025 or have no expiration, and primarily relate to European and Asian subsidiaries.

(b)Apportioned net operating loss carryforwards generated of $473 million will expire in future years as follows: $53 million in 2025, $42 million in 2026 and the remaining balance in other future years.

(c)Credit carryforwards consist primarily of foreign tax credits of $15 million expiring in future years, and state tax credits of $2 million that will expire in 2026 and other future years.

(d)Valuation allowances primarily relate to certain state and foreign net operating loss carryforwards and certain federal credit carryforwards.

(e)The total gross amount of goodwill as of September 30, 2024 expected to be deductible for tax purposes is $36 million.

Summary of Income from Continuing Operations Before Income Taxes and Reconciliation of Provision for Income Taxes

The U.S. and foreign components of income (loss) from continuing operations before income taxes and a reconciliation of the statutory federal income tax with the provision for income taxes follow. The foreign components of income from continuing operations disclosed in the following table exclude any allocations of certain corporate expenses incurred in the U.S.

(In millions)	2024			2023			2022
Income (loss) from continuing operations before income taxes
United States	$	(228	)	$	(112	)	$	(133	)
Foreign		204			272			339
Income (loss) from continuing operations before income taxes	$	(24	)	$	160		$	206
Income taxes computed at U.S. statutory rate	$	(5	)	$	34		$	43
Increase (decrease) in amount computed resulting from
Tax law changes		(49	)		—			—
Non U.S. restructuring		(83	)		—			—
Uncertain tax positions		13			(26	)		(6	)
Deemed inclusions, foreign dividends and other restructuring(a)		28			32			40
Foreign tax credits		(22	)		(22	)		(32	)
Valuation allowance changes(b)		10			(7	)		(4	)
Research and development credits		(4	)		(3	)		(2	)
State taxes		(3	)		(1	)		(4	)
International rate differential		(14	)		(16	)		(27	)
Basis difference on stock sale		(100	)		—			—
Other items(c)		6			1			17
Income tax expense (benefit)	$	(223	)	$	(8	)	$	25

(a)2024 includes $17 million related to GILTI permanent adjustments and $11 million related to Subpart F. 2023 includes $19 million related to GILTI permanent adjustment and $12 million related to Subpart F. 2022 includes $31 million primarily related to GILTI permanent adjustments.

(b)2024 includes net $10 million related to state NOL's, deferred taxes and foreign tax credits. 2023 includes net $2 million related to deferred taxes and foreign tax credits. 2022 includes $4 million related to state NOL's.

(c)2024 includes miscellaneous items of $6 million. 2023 includes miscellaneous items of $1 million. 2022 includes $8 million related to withholding tax.

Summary of Changes in Unrecognized Tax Benefits

Changes in unrecognized tax benefits were as follows:

(In millions)
Balance at September 30, 2022	$	84
Decreases related to positions taken on items from prior years		(30	)
Increases related to positions taken in the current year		8
Increases related to positions taken in the prior year		1
Lapse of statute of limitations		(4	)
Balance at September 30, 2023	$	59
Decreases related to positions taken on items from prior years		(3	)
Increases related to positions taken in the current year		13
Increases related to positions taken in the prior year		3
Settlements		(1	)
Lapse of statute of limitations		(6	)
Balance at September 30, 2024	$	65