Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Significant Components of Company's Income Tax Provision from Continuing Operations

The more significant components of the Company’s income tax provision from continuing operations are as follows (in millions):

	Year Ended September 30,
	2020		2019		2018
Tax expense at Ireland statutory rate	$	113	$	132	$	193
U.S. state income tax, net of federal benefit	8		15		15
Income subject to the U.S. federal tax rate	(92)		(110)		39
Income subject to rates different than the statutory rate	99		38		(201)
Reserve and valuation allowance adjustments	(70)		(284)		31
Impact of acquisitions and divestitures	—		—		16
U.S. Tax Reform discrete items	—		—		108
Restructuring and impairment costs	50		(24)		(4)
Income tax provision (benefit)	$	108	$	(233)	$	197

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

	Year Ended September 30,
	2020		2019		2018
Beginning balance, October 1	$	2,451	$	2,358	$	2,161
Additions for tax positions related to the current year	128		433		435
Additions for tax positions of prior years	129		347		7
Reductions for tax positions of prior years	(27)		(88)		(201)
Settlements with taxing authorities	(54)		—		(19)
Statute closings and audit resolutions	(99)		(599)		(25)
Ending balance, September 30	$	2,528	$	2,451	$	2,358

Tax Jurisdictions and Years Currently under Audit Exam

In the U.S., fiscal years 2017 through 2018 are currently under exam by the Internal Revenue Service (“IRS”) for certain legal entities. Additionally, the Company is currently under exam in the following major non-U.S. jurisdictions for continuing operations:

Tax Jurisdiction	Tax Years Covered
Belgium	2015 - 2019
China	2019
Germany	2007 - 2018
Luxembourg	2017 - 2018
Mexico	2016 - 2017, 2019
Taiwan	2019
United Kingdom	2014 - 2015, 2017

Components of Provision for Income Taxes on Continuing Operations

Components of the provision (benefit) for income taxes on continuing operations were as follows (in millions):

	Year Ended September 30,
	2020		2019		2018
Current
U.S. federal	$	309	$	(1,025)	$	476
U.S. state	72		(33)		26
Non-U.S.	264		213		434
	645		(845)		936
Deferred
U.S. federal	(382)		412		(372)
U.S. state	(43)		84		(10)
Non-U.S.	(112)		116		(357)
	(537)		612		(739)
Income tax provision (benefit)	$	108	$	(233)	$	197

Deferred Taxes Classified in Consolidated Statements of Financial Position

Deferred taxes were classified in the consolidated statements of financial position as follows (in millions):

	September 30,
	2020		2019
Other noncurrent assets	$	862	$	552
Other noncurrent liabilities	(385)		(588)
Net deferred tax asset (liability)	$	477	$	(36)

Temporary Differences and Carryforwards in Deferred Tax Assets and Liabilities

Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities included (in millions):

	September 30,
	2020		2019
Deferred tax assets
Accrued expenses and reserves	$	474	$	437
Employee and retiree benefits	286		265
Property, plant and equipment	182		—
Net operating loss and other credit carryforwards	6,306		5,664
Research and development	112		106
Other, net	99		—
	7,459		6,472
Valuation allowances	(5,518)		(5,068)
	1,941		1,404
Deferred tax liabilities
Property, plant and equipment	—		139
Subsidiaries, joint ventures and partnerships	730		499
Intangible assets	734		759
Other, net	—		43
	1,464		1,440
Net deferred tax asset (liability)	$	477	$	(36)