Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Schedule Of Pretax Earnings From Continuing Operations

Pretax earnings from continuing operations consist of the following:



	2016		2017	2018
United States	$	1,312	1,350	1,652
Non-U.S.	1,004		985	1,015
Total pretax earnings	$	2,316	2,335	2,667

Schedule Of Principal Components Of Income Tax Expense

The principal components of income tax expense follow:



	2016			2017		2018
Current:
U.S. federal	$	394		351		341
State and local	11			40		52
Non-U.S.	305			311		300

Deferred:
U.S. federal	2			7		(224	)
State and local	4			4		(11	)
Non-U.S.	(19		)	(53	)	(15	)
Income tax expense	$	697		660		443

Schedule Of Reconciliations Of U.S. Federal Statutory Tax Rate

Reconciliations of the U.S. federal statutory income tax rate to the Company's effective tax rate follow. For fiscal 2018, the U.S. federal statutory rate was 35 percent for one quarter and 21 percent for three quarters.



	2016		2017		2018
U.S. federal statutory rate	35.0	%	35.0	%	24.5	%
State and local taxes, net of U.S. federal tax benefit	0.5		1.2		1.2
Non-U.S. rate differential	(2.9	)	(3.6	)	0.8
Non-U.S. tax holidays	(1.1	)	(1.0	)	(0.8	)
U.S. manufacturing deduction	(1.8	)	(1.7	)	(1.1	)
Gain on divestiture	—		—		1.0
Subsidiary restructuring	—		(1.8	)	(2.0	)
Transition impact of Tax Act	—		—		(7.1	)
Other	0.4		0.2		0.1
Effective income tax rate	30.1	%	28.3	%	16.6	%

Schedule Of Unrecognized Tax Benefits



	2017			2018
Unrecognized tax benefits, beginning	$	86		132
Additions for current year tax positions	54			13
Additions for prior year tax positions	4			8
Reductions for prior year tax positions	(6		)	(8	)
Acquisitions and divestitures	9			21
Reductions for settlements with tax authorities	(4		)	(3	)
Reductions for expiration of statutes of limitations	(11		)	(5	)
Unrecognized tax benefits, ending	$	132		158

Schedule Of Deferred Income Tax Assets And Liabilities

The principal items that gave rise to deferred income tax assets and liabilities follow:



	2017			2018
Deferred tax assets:
Net operating losses and tax credits	$	444		396
Accrued liabilities	319			238
Postretirement and postemployment benefits	70			37
Employee compensation and benefits	173			119
Pensions	72			—
Other	196			151
Total	$	1,274		941

Valuation allowances	$	(309	)	(341	)

Deferred tax liabilities:
Intangibles	$	(753	)	(693	)
Pensions	—			(43	)
Property, plant and equipment	(265		)	(187	)
Undistributed non-U.S. earnings	(249		)	(52	)
Other	(37		)	(35	)
Total	$	(1,304	)	(1,010	)

Net deferred income tax liability	$	(339	)	(410	)