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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Income Before Income Taxes | Income from operations before income taxes and equity in net earnings of affiliated companies was as follows:
|  | Years Ended September 30 |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (In millions) |
Domestic |  | $ | 65 |  |  | $ | (20 | ) |  | $ | (73 | )
Foreign |  |  | 386 |  |  |  | 355 |  |  |  | 479 |
Income from operations before income taxes and equity in earnings of affiliated companies |  | $ | 451 |  |  | $ | 335 |  |  | $ | 406 |
Provision (Benefit) for Income Taxes | Tax provision (benefit) for income taxes consisted of the following:
|  | Years Ended September 30 |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (In millions) |
U.S. federal and state: |  |  |  |  |  |  |  |  |
Current |  | $ | 5 |  |  | $ | 7 |  |  | $ | 11 |
Deferred |  |  | (156 | ) |  |  | 2 |  |  |  | (1 | )
Total |  |  | (151 | ) |  |  | 9 |  |  |  | 10 |
Foreign: |  |  |  |  |  |  |  |  |
Current |  |  | 123 |  |  |  | 135 |  |  |  | 103 |
Deferred |  |  | — |  |  |  | (42 | ) |  |  | 10 |
Total |  |  | 123 |  |  |  | 93 |  |  |  | 113 |
Provision (benefit) for income taxes |  | $ | (28 | ) |  | $ | 102 |  |  | $ | 123 |
Reconciliation Using U.S. Statutory Rate | The provision (benefit) for income taxes differed from the provision for income taxes as calculated using the U.S. statutory rate as follows:
|  | Years Ended September 30 |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (In millions) |
Computed tax expense at the federal statutory rate |  | $ | 95 |  |  | $ | 70 |  |  | $ | 85 |
Foreign impact of taxation at different rates, repatriation, valuation allowance, and other |  |  | 30 |  |  |  | 38 |  |  |  | 8 |
Global Intangible Low Taxed Income (GILTI) |  |  | 15 |  |  |  | 23 |  |  |  | 18 |
Purification Solutions business divestiture |  |  | — |  |  |  | (179 | ) |  |  | — |
Impact of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act of 2020 |  |  | — |  |  |  | — |  |  |  | 10 |
Impact of increase (decrease) in valuation allowance on U.S. deferred taxes |  |  | (156 | ) |  |  | 160 |  |  |  | (1 | )
U.S. and state benefits from research and experimentation activities |  |  | (2 | ) |  |  | (2 | ) |  |  | (2 | )
Provision (settlement) of unrecognized tax benefits |  |  | 2 |  |  |  | 1 |  |  |  | 1 |
Permanent differences, net |  |  | (4 | ) |  |  | 10 |  |  |  | 7 |
State taxes, net of federal effect |  |  | (8 | ) |  |  | (19 | ) |  |  | (3 | )
Provision (benefit) for income taxes |  | $ | (28 | ) |  | $ | 102 |  |  | $ | 123 |
Components of Deferred Income Taxes | Significant components of deferred income taxes were as follows:
|  | September 30 |
|  | 2023 |  |  | 2022 |
|  | (In millions) |
Deferred tax assets: |  |  |  |  |  |
Deferred expenses |  | $ | 50 |  |  | $ | 10 |
Intangible assets |  |  | 42 |  |  |  | 39 |
Inventory |  |  | 14 |  |  |  | 15 |
Operating lease liability |  |  | 22 |  |  |  | 21 |
Other |  |  | 6 |  |  |  | 32 |
U.S. federal interest expense carryforward |  |  | 42 |  |  |  | 33 |
Pension and other benefits |  |  | 24 |  |  |  | 29 |
Net operating loss carryforwards |  |  | 244 |  |  |  | 224 |
Capital loss carryforwards |  |  | 132 |  |  |  | 137 |
Foreign tax credit carryforwards |  |  | 68 |  |  |  | 55 |
R&D credit carryforwards |  |  | 49 |  |  |  | 47 |
Other business credit carryforwards |  |  | 19 |  |  |  | 20 |
Subtotal |  |  | 712 |  |  |  | 662 |
Valuation allowance |  |  | (498 | ) |  |  | (580 | )
Total deferred tax assets |  | $ | 214 |  |  | $ | 82 |
|  | September 30 |
|  | 2023 |  |  | 2022 |
|  | (In millions) |
Deferred tax liabilities: |  |  |  |  |  |
Property, plant and equipment |  | $ | (47 | ) |  | $ | (59 | )
Right of use asset |  |  | (22 | ) |  |  | (21 | )
Unremitted earnings of non-U.S. subsidiaries |  |  | (15 | ) |  |  | (22 | )
Total deferred tax liabilities |  | $ | (84 | ) |  | $ | (102 | )
Expiration Dates of NOLs, Capital Loss and Other Tax Credit Carryforwards Before Valuation Allowances | The following table provides detail surrounding the expiration dates of NOLs, capital loss and other tax credit carryforwards before valuation allowances:
Years Ending September 30 |  | NOLs/Capital Losses |  |  | Credits |
|  | (In millions) |
2024 - 2030 |  | $ | 1,051 |  |  | $ | 31 |
2031 and thereafter |  |  | 268 |  |  |  | 103 |
Indefinite carryforwards |  |  | 793 |  |  |  | 2 |
Total |  | $ | 2,112 |  |  | $ | 136 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2023, 2022 and 2021 is as follows:
|  | Years Ended September 30 |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (In millions) |
Balance at beginning of the year |  | $ | 159 |  |  | $ | 21 |  |  | $ | 23 |
Additions based on tax positions related to the current year |  |  | 1 |  |  |  | 138 |  |  |  | 1 |
Additions for tax positions of prior years |  |  | — |  |  |  | 2 |  |  |  | — |
Reductions of tax positions of prior years |  |  | (137 | ) |  |  | (1 | ) |  |  | (2 | )
Reductions related to settlements |  |  | (2 | ) |  |  | — |  |  |  | — |
Reductions from lapse of statute of limitations |  |  | (1 | ) |  |  | (1 | ) |  |  | (1 | )
Balance at end of the year |  | $ | 20 |  |  | $ | 159 |  |  | $ | 21 |

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