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Income Taxes | 9 Months Ended
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Jun. 30, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE J – INCOME TAXES Current fiscal year Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results. The overall effective tax rate was an expense of 19% for the three months ended June 30, 2020 and a benefit of 4% for the nine months ended June 30, 2020. The current quarter rate was primarily impacted by income mix, and net unfavorable discrete items of $4 million. The current nine months tax rate was impacted by nondeductible goodwill impairment of $527 million of the $530 million charge taken during the nine months and a favorable tax discrete item from the tax benefit related to the Swiss Tax Reform. Prior fiscal year The overall effective tax rate was a negative 5% for the three months ended June 30, 2019 and 114% for the nine months ended June 30, 2019. The quarter tax rate was primarily impacted by income mix, as well as $2 million in net favorable tax discrete items including the favorable adjustment from the release of reserves related to unrecognized tax benefits and the unfavorable adjustment related to transaction tax and other items. The nine month period was primarily impacted by the items referenced in the three-month period, as well as a net $17 million from unfavorable tax discrete items including the final assessment of the U.S. Tax Act and other items. Unrecognized tax benefits Changes in unrecognized tax benefits are summarized as follows for the nine months ended June 30, 2020.
(In millions) |  |  |
Balance at October 1, 2019 | $ | 165 |
Increases related to positions taken on items from prior years |  | 2 |
Decreases related to positions taken on items from prior years |  | (1 | )
Increases related to positions taken in the current year |  | 4 |
Lapse of statute of limitations |  | (1 | )
Balance at June 30, 2020 | $ | 169 |
From a combination of statute expirations and audit settlements in the next twelve months, Ashland expects a decrease in the amount accrued for uncertain tax positions of between $1 million and $3 million for continuing operations. It is reasonably possible that there could be other material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues or the reassessment of existing uncertain tax positions; however, Ashland is not able to estimate the impact of these items at this time.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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