Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

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

	Years Ended September 30
	2018			2017			2016
	(In millions)
Domestic	$	(229	)	$	(8	)	$	(29	)
Foreign		346			307			220
Income from continuing operations before income taxes and equity in earnings of affiliated companies	$	117		$	299		$	191

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

	Years Ended September 30
	2018			2017			2016
	(In millions)
U.S. federal and state:
Current	$	14		$	5		$	7
Deferred		114			(26	)		(34	)
Total		128			(21	)		(27	)
Foreign:
Current		88			59			62
Deferred		(23	)		(5	)		(2	)
Total		65			54			60
Provision (benefit) for income taxes	$	193		$	33		$	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
	2018			2017			2016
	(In millions)
Computed tax expense at the federal statutory rate	$	29		$	105		$	67
Foreign income:
Impact of taxation at different rates, repatriation, losses and other		6			(75	)		(37	)
Impact of increase (decrease) in valuation allowance on deferred taxes		(16	)		(7	)		7
Impact of foreign losses for which a current tax benefit is not available		—			1			—
Impact of non-deductible net currency losses		2			—			2
Impact of the Tax Cuts and Jobs Act of 2017		159			—			—
U.S. and state benefits from research and experimentation activities		(2	)		(2	)		(2	)
Provision (settlement) of unrecognized tax benefits		1			7			1
Benefit from prior currency loss		—			—			(3	)
Impact of goodwill impairment charge		18			—			—
Permanent differences, net		(1	)		5			—
State taxes, net of federal effect		(3	)		(1	)		(2	)
Provision (benefit) for income taxes	$	193		$	33		$	33

Significant components of deferred income taxes were as follows:

	September 30
	2018			2017
	(In millions)
Deferred tax assets:
Deferred expenses	$	17		$	22
Intangible assets		23			43
Inventory		4			1
Other		4			14
Pension and other benefits		45			59
Net operating loss carry-forwards		146			149
Foreign tax credit carry-forwards		12			132
R&D credit carry-forwards		41			38
Other business credit carry-forwards		39			37
Subtotal		331			495
Valuation allowance		(169	)		(168	)
Total deferred tax assets	$	162		$	327

	September 30
	2018			2017
	(In millions)
Deferred tax liabilities:
Property, plant and equipment	$	(56	)	$	(116	)
Unremitted earnings of non-U.S. subsidiaries		(14	)		(12	)
Total deferred tax liabilities	$	(70	)	$	(128	)

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 2018, 2017 and 2016 is as follows:

	Years Ended September 30
	2018			2017			2016
	(In millions)
Balance at beginning of the year	$	36		$	30		$	30
Additions based on tax provisions related to the current year		2			2			2
Additions for tax positions of prior years		1			8			5
Reductions of tax provisions of prior years		—			(1	)		(3	)
Reductions related to settlements		—			(2	)		—
Reductions from lapse of statute of limitations		(2	)		(1	)		(4	)
Balance at end of the year	$	37		$	36		$	30