Stock-Based Compensation and Earnings Per Share (Tables)
 6 Months Ended
Mar. 31, 2016
Stock Based Compensation and Earnings Per Share Abstract  
Stock-Based Compensation Expense Categorization
Stock-based compensation expense, which is calculated net of an assumed forfeiture rate, and related income tax benefit included within the Condensed Consolidated Statement of Operations is as follows:
 
Three Months Ended
 
Six Months Ended
 
March 31
 
March 31
(in millions)
2016
 
2015
 
2016
 
2015
Stock-based compensation expense included in:
 
 
 
 
 
 
 
Product cost of sales
$
3

 
$
2

 
$
5

 
$
4

Selling, general and administrative expenses
6

 
5

 
10

 
8

Total
$
9

 
$
7

 
$
15

 
$
12

Income tax benefit
$
3

 
$
2

 
$
5

 
$
4
Schedule of Stock Option Activity
The Company issued awards of equity instruments under the Company's various incentive plans for the six months ended March 31, 2016 and 2015 as follows:
 
Options
 
Performance Shares
 
Restricted Stock Units
(shares in thousands)
Number Issued
Weighted Average Fair Value
 
Number Issued
Weighted Average Fair Value
 
Number Issued
Weighted Average Fair Value
Six months ended March 31, 2016
628.9

$
17.76

 
128.6

$
85.05

 
68.3

$
85.75

Six months ended March 31, 2015
555.6

$
19.60

 
129.7

$
82.63

 
65.9

$
84.23
Assumptions Used to Value Option Grants
The fair value of each option granted by the Company was estimated using a binomial lattice pricing model and the following weighted average assumptions:
 
2016 Grants
 
2015 Grants
Risk-free interest rate
0.8% - 2.5%

 
0.5% - 2.6%

Expected dividend yield
1.5% - 1.6%

 
1.6
%
Expected volatility
20.0
%
 
24.0
%
Expected life
7 years

 
7 years
Earnings Per Share and Diluted Share Equivalents
The computation of basic and diluted earnings per share is as follows:
 
Three Months Ended
 
Six Months Ended
 
March 31
 
March 31
(in millions, except per share amounts)
2016
 
2015
 
2016
 
2015
Numerator for basic and diluted earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
172

 
$
163

 
$
305

 
$
332

Income (loss) from discontinued operations, net of taxes
(1
)
 
(6
)
 
1

 
(8
)
Net income
$
171

 
$
157

 
$
306

 
$
324

Denominator:
 

 
 

 
 
 
 
Denominator for basic earnings per share – weighted average common shares
130.8

 
132.2

 
131.1

 
132.6

Effect of dilutive securities:
 
 
 
 
 
 
 
Stock options
1.0

 
1.1

 
1.1

 
1.1

Performance shares, restricted stock and restricted stock units
0.5

 
0.4

 
0.5

 
0.4

Dilutive potential common shares
1.5

 
1.5


1.6


1.5

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversion
132.3

 
133.7


132.7


134.1

Earnings (loss) per share:
 

 
 

 
 
 
 
Basic
 
 
 
 
 
 
 
Continuing operations
$
1.31

 
$
1.23

 
$
2.33

 
$
2.50

Discontinued operations
—

 
(0.04
)
 
—

 
(0.06
)
Basic earnings per share
$
1.31

 
$
1.19

 
$
2.33

 
$
2.44

Diluted
 
 
 
 
 
 
 
Continuing operations
$
1.30

 
$
1.22

 
$
2.30

 
$
2.48

Discontinued operations
(0.01
)
 
(0.05
)
 
0.01

 
(0.06
)
Diluted earnings per share
$
1.29

 
$
1.17

 
$
2.31

 
$
2.42