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Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Provision for Income Taxes from Continuing Operations
The provision for income taxes the years ended September 30 consisted of:
(Millions of dollars)
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
235

 
$
665

 
$
(230
)
State and local, including Puerto Rico
41

 
73

 
(20
)
Foreign
300

 
387

 
200

 
$
576

 
$
1,124

 
$
(50
)
Deferred:
 
 
 
 
 
Domestic
$
(566
)
 
$
(201
)
 
$
(64
)
Foreign
(67
)
 
(61
)
 
(10
)
 
(633
)
 
(262
)
 
(74
)
Income tax (benefit) provision
$
(57
)
 
$
862

 
$
(124
)
Components of Income from Continuing Operations Before Income Taxes
The components of Income Before Income Taxes for the years ended September 30 consisted of:
(Millions of dollars)
2019
 
2018
 
2017
Domestic, including Puerto Rico
$
1,340

 
$
(135
)
 
$
(386
)
Foreign
(164
)
 
1,308

 
1,362

Income Before Income Taxes
$
1,176

 
$
1,173

 
$
976
Summary of Gross Amounts of Unrecognized Tax Benefits
The table below summarizes the gross amounts of unrecognized tax benefits without regard to reduction in tax liabilities or additions to deferred tax assets and liabilities if such unrecognized tax benefits were settled. The Company believes it is reasonably possible that the amount of unrecognized benefits will change due to one or more of the following events in the next twelve months: expiring statutes, audit activity, tax payments, other activity, or final decisions in matters that are the subject of controversy in various taxing jurisdictions in which we operate.
(Millions of dollars)
2019
 
2018
 
2017
Balance at October 1
$
543

 
$
349

 
$
469

Increase due to acquisitions
3

 
140

 
—

Increase due to current year tax positions
11

 
43

 
41

Increase due to prior year tax positions
6

 
43

 
19

Decreases due to prior year tax positions
(39
)
 
—

 
(30
)
Decrease due to settlements with tax authorities
—

 
(29
)
 
(145
)
Decrease due to lapse of statute of limitations
(5
)
 
(3
)
 
(5
)
Balance at September 30
$
519

 
$
543

 
$
349
Deferred Income Taxes
Deferred income taxes at September 30 consisted of:
 
2019
 
2018
(Millions of dollars)
Assets
 
Liabilities
 
Assets
 
Liabilities
Compensation and benefits
$
513

 
$
—

 
$
458

 
$
—

Property and equipment
—

 
255

 
—

 
253

Intangibles
—

 
2,624

 
—

 
2,948

Loss and credit carryforwards
1,327

 
—

 
1,290

 
—

Other
634

 
189

 
707

 
384

 
2,474

 
3,068

 
2,455

 
3,585

Valuation allowance
(1,240
)
 
—

 
(1,181
)
 
—

Net (a)
$
1,234

 
$
3,068

 
$
1,275

 
$
3,585


(a)
Net deferred tax assets are included in Other Assets and net deferred tax liabilities are included in Deferred Income Taxes and Other on the consolidated balance sheets.
Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate
A reconciliation of the federal statutory tax rate to the Company’s effective income tax rate was as follows:
 
2019
 
2018
 
2017
Federal statutory tax rate
21.0
 %
 
24.5
 %
 
35.0
 %
New U.S. tax legislation (see discussion above)
(4.3
)
 
54.6

 
—

State and local income taxes, net of federal tax benefit
0.1

 
0.8

 
(2.6
)
Effect of foreign and Puerto Rico (losses) earnings and foreign tax credits
(12.2
)
 
7.3

 
(40.8
)
Effect of Research Credits and FDII/Domestic Production Activities
(3.3
)
 
(2.8
)
 
(2.7
)
Effect of change in accounting for excess tax benefit relating to share-based compensation (see Note 2)
(4.7
)
 
(6.7
)
 
(7.9
)
Effect of gain on divestitures
(2.0
)
 
1.3

 
—

Effect of uncertain tax position
—

 
3.3

 
—

Effect of valuation allowance release
—

 
(4.8
)
 
—

Effect of application for change in accounting method
—

 
(4.5
)
 
—

Effect of nondeductible compensation
—

 
1.6

 
—

Other, net
0.6

 
(1.1
)
 
6.3

Effective income tax rate
(4.8
)%
 
73.5
 %
 
(12.7
)%