Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Gains Recorded on Fair Value Hedges

The gains (losses) recorded on these fair value hedges, which were offset by losses (gains) recorded to the underlying debt instruments, are provided below.

	Three Months Ended December 31,
(Millions of dollars)	2016			2015
(Losses) gains on fair value hedges	$	(14	)	$	13

Effects on Consolidated Balance Sheets

The location and amounts of derivative instrument fair values in the consolidated balance sheet are segregated below between designated, qualifying hedging instruments and ones that are not designated for hedge accounting.

(Millions of dollars)	December 31, 2016		September 30, 2016
Asset derivatives-designated for hedge accounting
Interest rate swaps	$	30	$	23
Asset derivatives-undesignated for hedge accounting
Forward exchange contracts	8		3
Total asset derivatives (A)	$	38	$	25
Liability derivatives-designated for hedge accounting
Interest rate swaps	—		18
Liability derivatives-undesignated for hedge accounting
Forward exchange contracts	15		13
Total liability derivatives (B)	$	15	$	31

(A) All asset derivatives are included in Prepaid expenses and other.

(B) All liability derivatives are included in Payables and accrued expenses.

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]

The amount recognized in other comprehensive income during the three-month period ended December 31, 2016 related to the previously discussed forward starting interest rate swaps entered into in fiscal year 2016.

	Three Months Ended December 31,
(Millions of dollars)	2016		2015
After-tax gains relating to cash flow hedges recognized in other comprehensive income (loss)	$	24	$	—

Undesignated Hedges

The location and amount of gains and losses recognized in income on derivatives not designated for hedge accounting were as follows:

	Location of (Loss) Gain Recognized in Income on Derivatives	Amount of (Loss) Gain Recognized in Income on Derivatives
Derivatives Not Designated as Hedging Instruments		Three Months Ended December 31,
(Millions of dollars)		2016			2015
Forward exchange contracts (A)	Other income (expense), net	$	(22	)	$	11

(A) The gains and losses on forward contracts and currency options utilized to hedge the intercompany transactional foreign exchange exposures are largely offset by gains and losses on the underlying hedged items in Other income (expense), net.