Income Taxes

6 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Income tax provisions for interim quarterly periods are based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual discrete items related specifically to interim periods. The following summarizes income tax expense and the effective tax rate in each interim period:

	Three months ended						Six months ended
	March 31						March 31
(In millions)	2020			2019			2020			2019
Income tax expense	$	25		$	17		$	49		$	36
Effective tax rate percentage	28.4		%	21.3		%	26.5		%	23.7		%

The increase in effective tax rates for the three and six months ended March 31, 2020 compared to the prior year periods was principally attributed to tax reform legislation, which resulted in unfavorable discrete activity in the

current year periods due to legislation enacted in India, while the clarification of certain provisions of Kentucky tax reform legislation drove favorable discrete activity in the prior year periods. Higher pre-tax earnings also led to increased tax expense in the current year periods.