Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

Income Taxes [Abstract]

Components of Income Tax Expense

Significant components of income tax expense for the fiscal years ended are as follows:

	2017			2016			2015
Current
U.S.
Federal	$	40		$	—		$	—
State		6			5			3
Non-U.S.		58			36			7
Total current		104			41			10
Deferred:
U.S.
Federal		34			35			31
State		(10	)		3			(4	)
Non-U.S.		(19	)		(7	)		(1	)
Total deferred		5			31			26
Expense for income taxes	$	109		$	72		$	36

Effective Income Tax Rate Reconciliation

The reconciliation between U.S. Federal income taxes at the statutory rate and the Company’s benefit for income taxes on continuing operations for fiscal year end is follows:

	2017			2016			2015
U.S. Federal income tax expense at the statutory rate	$	157		$	108		$	43
Adjustments to reconcile to the income tax provision:
U.S. state income tax expense		6			8			7
Changes in state valuation allowance		(9	)		2			(7	)
Research and development credits		(7	)		(8	)		(5	)
Share-based compensation		(33	)		(15	)		—
Permanent differences		2			2			—
Changes in foreign valuation allowance		3			(1	)		—
Foreign income taxed in the U.S.		—			7			—
Manufacturing tax benefits		(6	)		—			—
Deduction of worthless investment		—			(9	)		—
Permanent foreign currency differences		(1	)		(8	)		—
Rate differences between U.S. and foreign		(11	)		(14	)		(2	)
Other		8			—			—
Expense for income taxes	$	109		$	72		$	36

Net Deferred Income Tax Liability

The components of the net deferred income tax liability as of fiscal year end are as follows:

	2017			2016
Deferred tax assets:
Allowance for doubtful accounts	$	7		$	7
Deferred gain on sale-leaseback		10			11
Accrued liabilities and reserves		89			129
Inventories		6			10
Net operating loss carryforward		292			371
Alternative minimum tax (AMT) credit carryforward		11			10
Research and development credit carryforward		18			36
Federal and state tax credits		9			2
Other		14			6
Total deferred tax assets		456			582
Valuation allowance		(93	)		(82	)
Total deferred tax assets, net of valuation allowance		363			500
Deferred tax liabilities:
Property, plant and equipment		277			282
Intangible assets		475			435
Debt extinguishment		27			53
Other		3			2
Total deferred tax liabilities		782			772
Net deferred tax liability	$	(419	)	$	(272	)

Gross Unrecognized Tax Benefits

The following table summarizes the activity related to our gross unrecognized tax benefits for fiscal year end:

	2017			2016
Beginning unrecognized tax benefits	$	62		$	13
Gross increases – tax positions in prior periods		1			4
Gross increases – current period tax positions		4			1
Gross increases – from acquisitions		—			48
Gross decreases – tax positions in prior periods		(1	)		—
Settlements		(3	)		(1	)
Lapse of statute of limitations		(4	)		(3	)
Ending unrecognized tax benefits	$	59		$	62