Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Jun. 30, 2017

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 June 30,				Nine Months Ended June 30,
(Millions of dollars)	2017		2016		2017			2016
Gains (losses) on fair value hedges	$	1	$	3	$	(14	)	$	9

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)	June 30, 2017		September 30, 2016
Asset derivatives-designated for hedge accounting
Interest rate swaps	$	8	$	23
Asset derivatives-undesignated for hedge accounting
Forward exchange contracts	4		3
Total asset derivatives (A)	$	13	$	25
Liability derivatives-designated for hedge accounting
Interest rate swaps	—		18
Liability derivatives-undesignated for hedge accounting
Forward exchange contracts	1		13
Total liability derivatives (B)	$	1	$	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 amounts recognized in other comprehensive income during the three and nine months ended June 30, 2017 and 2016 related to the previously discussed forward starting interest rate swaps.

	Three Months Ended June 30,						Nine Months Ended June 30,
(Millions of dollars)	2017			2016			2017		2016
After-tax (losses) gains relating to cash flow hedges recognized in other comprehensive income (loss)	$	(17	)	$	(10	)	$	8	$	(12	)

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 Gain (Loss) Recognized in Income on Derivatives					Amount of Gain Recognized in Income on Derivatives
Derivatives Not Designated as Hedging Instruments		Three Months Ended June 30,					Nine Months Ended June 30,
(Millions of dollars)		2017		2016			2017		2016
Forward exchange contracts (A)	Other income (expense), net	$	13	$	(13	)	$	6	$	13

(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.