Income Taxes (Tables)

12 Months Ended

Sep. 30, 2026

Schedule of Income before Income Tax, Domestic and Foreign

Selected income tax data (in millions):


	2026		2025		2024
Components of Income before income taxes
United States	$	697	$	280	$	389
Non-United States	988		637		711
Total	$	1,685	$	917	$	1,100

Schedule of Components of Income Tax Expense (Benefit)


Components of Income tax provision
Current
United States	$	159	$	97	$	78
Non-United States	179		169		128
State and local	25		16		14
Total current	363		282		220
Deferred
United States	(81)		(87)		(42)
Non-United States	8		(11)		(12)
State and local	(12)		(16)		(14)
Total deferred	(85)		(114)		(68)
Income tax provision	$	278	$	168	$	152

Schedule of Effective Income Tax Rate Reconciliation

In accordance with the updated requirements of ASU 2023-09 for the year ended September 30, 2026, a reconciliation between the U.S. federal statutory rate and our effective tax rate was:


	2026
	Amount		Rate
US federal statutory income tax rate	$	354	21.0	%
Domestic federal
Tax credits
Research credits	(21)		(1.3)	%
Foreign tax credit	(28)		(1.6)	%
Nontaxable and nondeductible items	11		0.6	%


Cross-border tax laws
Foreign Inclusions	7		0.4	%
Foreign Derived Intangible Income Deduction	(11)		(0.6)	%
Share Based Compensation	(20)		(1.2)	%
Sensia Joint Venture Dissolution	(34)		(2.0)	%
Other	(3)		(0.2)	%
Domestic state and local income taxes, net of federal effect (1)	12		0.7	%
Worldwide changes in unrecognized tax benefits	(11)		(0.7)	%
Foreign tax effects
Singapore
Foreign rate differential	(78)		(4.6)	%
BEPS Pillar Two Top up Tax	46		2.7	%
Withholding Taxes	25		1.5	%
Other	1		0.1	%
Other Foreign Jurisdictions	28		1.7	%

Total	$	278	16.5	%

(1) In 2026, state taxes in California, Illinois, Michigan, and Minnesota made up the majority (greater than 50 percent) of the tax effect of this category.

The reconciliation between the U.S. federal statutory rate and our effective tax rate was:


	2025		2024
Statutory tax rate	21.0	%	21.0	%
State and local income taxes	(0.1)		0.2
Non-United States taxes	(3.8)		(4.2)
Repatriation of foreign earnings	1.0		0.9
Foreign-derived intangible income	(1.5)		(0.7)
Settlements with taxing authorities and tax refund claims	0.6		(1.2)

Change in valuation allowance (1)	3.6		0.5
Share-based compensation	(1.1)		(0.2)
Research and development tax credit	(2.9)		(2.0)
Other	1.5		(0.5)
Effective income tax rate	18.3	%	13.8	%

(1) During fiscal year 2025, the effective tax rate increased by 3.6 percent, resulting from a valuation allowance recorded on certain deferred tax assets of the Sensia joint venture and tax effects of the related impairment.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to our net deferred income tax assets (liabilities) consists of (in millions):


	2026		2025
Deferred income tax assets
Compensation and benefits	$	34	$	31
Inventory	26		24
Returns, rebates, and incentives	65		61
Retirement benefits	—		45
Environmental remediation and other site-related costs	23		25
Share-based compensation	21		23
Other accruals and reserves	491		470

Net operating loss carryforwards	14		62
Tax credit carryforwards	14		13
Capital loss carryforwards	72		16
Other	39		125
Subtotal	799		895
Valuation allowance	(21)		(129)
Net deferred income tax assets	778		766
Deferred income tax liabilities
Property	(62)		(60)
Intangible assets	(84)		(105)
Retirement benefits	(18)		—

Unremitted earnings of foreign subsidiaries	(36)		(45)

Deferred income tax liabilities	(200)		(210)
Total net deferred income tax assets	$	578	$	556

Schedule of Tax Attributes and Valuation Allowances

Tax attributes and related valuation allowances at September 30, 2026 consists of (in millions):


Tax attributes and related valuation allowances	Tax Benefit Amount		Valuation Allowance		Carryforward Period Ends
Non-United States net operating loss carryforward	$	4	$	—	2027	-	9/30/2044
Non-United States net operating loss carryforward	6		5		Indefinite
Non-United States capital loss carryforward	15		15		Indefinite
Non-United States credit carryforward	2		—		2029

United States capital loss carryforward	57		—		2030	-	2031


State and local net operating loss carryforward	4		—		2027	-	2046
State tax credit carryforward	12		—		2046	-	2076
Subtotal	100		20
Other deferred tax assets	1		1		Indefinite
Total	$	101	$	21

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of our gross unrecognized tax benefits, excluding interest and penalties, is as follows (in millions):


	2026		2025		2024
Gross unrecognized tax benefits balance at beginning of year	$	29	$	25	$	10
Additions based on tax positions related to the current year	3		5		5
Additions based on tax positions related to prior years	—		2		10
Reductions based on tax positions related to prior years	(5)
Reductions related to settlements with taxing authorities	(5)		(1)		—
Reductions related to lapses of statute of limitations	(3)		(2)		—
Gross unrecognized tax benefits balance at end of year	$	19	$	29	$	25

Schedule of Cash Paid for Income Taxes

In accordance with the updated requirements of ASU 2023-09 for the year ended September 30, 2026, cash paid for income taxes was as follows:


	2026
US Federal	$	162
US State and Local	20
Foreign
Switzerland	35
Singapore	49
Other	96
Subtotal	$	180

Total	$	362