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Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Significant Components of Company's Income Tax Provision from Continuing Operations
The components of the Company’s income tax provision from continuing operations are as follows (in millions):
 202520242023
Tax expense at Ireland statutory rate of 12.5%
$246 $190 $139 
U.S. state income tax, net of federal benefit60 42 30 
Income subject to the U.S. federal tax rate
117 63 42 
Income subject to rates different than the statutory rate(181)(204)44 
Reserve and valuation allowance adjustments14 (139)(559)
Intellectual property transactions and adjustments— — (176)
Impact of acquisitions and divestitures— 121 — 
Restructuring and impairment costs(11)38 12 
Income tax provision (benefit)$245 $111 $(468)
Effective tax rate12 %7 %(42)%
Summary of Changes in Valuation Allowance
The following table summarizes changes in the valuation allowance (in millions):
202520242023
Balance at beginning of period$6,258 $6,279 $5,906 
Allowance provision for new operating and other loss carryforwards134 215 544 
Allowance reductions(136)(236)(171)
Balance at end of period$6,256 $6,258 $6,279 
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):
202520242023
Beginning balance, October 1$2,053 $2,158 $2,485 
Additions for tax positions related to the current year62 39 59 
Additions for tax positions of prior years21 53 89 
Reductions for tax positions of prior years(62)(35)(23)
Settlements with taxing authorities(65)(35)(6)
Statute closings and audit resolutions(82)(127)(446)
Ending balance, September 30$1,927 $2,053 $2,158 
Summary of Income Tax Contingencies
The following table summarizes tax effected unrecognized tax benefits that, if recognized, would impact the effective tax rate and the related accrued interest, net of tax benefit (in millions):
September 30,
202520242023
Tax effected unrecognized tax benefits that, if recognized, would affect the effective tax rate$1,427 $1,466 $1,533 
Net accrued interest459 398 329 
Tax Jurisdictions and Years Currently under Audit Exam
In the U.S., fiscal years 2019 through 2020 are currently under audit and fiscal years 2017 through 2018 are currently under appeal with 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 JurisdictionTax Years Covered
Belgium2016 - 2017; 2019-2020
Germany
2007 - 2021
Mexico2016; 2018 - 2019
United Kingdom
2014 - 2015; 2018; 2020 - 2021
Components of Provision for Income Taxes on Continuing Operations
Selected income tax data related to continuing operations were as follows (in millions):
 202520242023
Components of income (loss) from continuing operations before income taxes:
U.S. $(309)$(406)$(325)
Non-U.S.2,278 1,928 1,438 
Income from continuing operations before income taxes$1,969 $1,522 $1,113 
Components of the provision (benefit) for income taxes:
Current
U.S. federal$(239)$330 $(201)
U.S. state(12)86 94 
Non-U.S.302 102 289 
51 518 182 
Deferred
U.S. federal385 (299)(267)
U.S. state79 (26)(25)
Non-U.S.(270)(82)(358)
194 (407)(650)
Income tax provision (benefit)$245 $111 $(468)
Income taxes paid (1)
$606 $704 $294 

(1) The Company also paid $1.4 billion of taxes related to the operation and disposition of the Residential & Light Commercial HVAC Business, which is reported through Discontinued Operations.
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,
 20252024
Other noncurrent assets$1,777 $1,969 
Other noncurrent liabilities(185)(301)
Net deferred tax asset$1,592 $1,668 
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,
 20252024
Deferred tax assets
Accrued expenses and reserves$424 $661 
Employee and retiree benefits38 43 
Property, plant and equipment522 729 
Net operating loss and other credit carryforwards6,963 6,628 
Research and development233 219 
Intangible assets137 306 
Operating lease liabilities327 294 
Other, net315 455 
8,959 9,335 
Valuation allowances(6,256)(6,258)
2,703 3,077 
Deferred tax liabilities
Subsidiaries, joint ventures and partnerships193 440 
Operating lease right-of-use assets327 294 
Other liabilities591 675 
1,111 1,409 
Net deferred tax asset$1,592 $1,668