Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income before income taxes comprises the following:

	2020		2019		2018
Domestic	$	424	$	330	$	576
Foreign	243		71		279
Total income before income taxes	$	667	$	401	$	855

Provisions for Income Taxes

The provisions for income taxes consist of the following:

	2020		2019		2018
Current expense (benefit):
Federal	$	(85)	$	52	$	(2)
State	4		14		26
Foreign	70		70		78
Total current (benefit) expense	(11)		136		102
Deferred expense (benefit):
Federal	135		3		(78)
State	19		4		7
Foreign	(8)		(50)		2
Total deferred expense (benefit)	146		(43)		(69)
Total income tax expense	$	135	$	93	$	33

Reconciliation of U.S. Federal Statutory Tax Rate to Effective Tax Rate

A reconciliation from the U.S. federal statutory tax rate to our effective tax rate is as follows:

	2020		2019		2018
U.S. federal statutory tax rate	21.0	%	21.0	%	24.5	%
Difference in tax rate due to:
Effect of U.S. tax legislation	(4.7)		0.2		(20.9)
Effect of tax rate changes - International	0.3		(0.5)		(2.1)
Noncontrolling interests not subject to tax	—		(2.7)		(3.0)
State income taxes, net of federal benefit	2.8		3.6		2.9
Valuation allowance adjustments	—		—		1.1
Effects of foreign operations	1.3		1.8		3.1
Excess tax benefits on share-based payments	(0.2)		(1.0)		(1.1)
Other, net	(0.3)		0.7		(0.7)
Effective tax rate	20.2	%	23.1	%	3.8	%

Deferred Tax Liabilities (Assets)

Deferred tax liabilities (assets) comprise the following at September 30:

	2020		2019
Excess book basis over tax basis of property, plant and equipment	$	830	$	805
Utility regulatory assets	112		108
Intangible assets and goodwill	107		71
Other	32		7
Gross deferred tax liabilities	1,081		991
Investment in AmeriGas Partners	(216)		(304)
Pension plan liabilities	(48)		(50)
Employee-related benefits	(46)		(44)
Operating loss carryforwards	(34)		(21)
Foreign tax credit carryforwards	(81)		(81)
Utility regulatory liabilities	(94)		(94)
Derivative instruments	(26)		(15)
Utility environmental liabilities	(16)		(15)
Other	(54)		(34)
Gross deferred tax assets	(615)		(658)
Deferred tax assets valuation allowance	105		91
Net deferred tax liabilities	$	571	$	424

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

	2020		2019		2018
Unrecognized tax benefits — beginning of year	$	11	$	12	$	12
Additions for tax positions of the current year	2		1		2
Additions for tax positions taken in prior years	—		—		1
Settlements with tax authorities/statute lapses	(9)		(2)		(3)
Unrecognized tax benefits — end of year	$	4	$	11	$	12