XML 37 R28.htm IDEA: XBRL DOCUMENT v3.22.4
Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The notional amounts of the Company’s foreign currency-related derivative instruments as of December 31, 2022 and September 30, 2022 were as follows:
(Millions of dollars)Hedge DesignationDecember 31, 2022September 30, 2022
Foreign exchange contracts (a)Undesignated$1,639 $2,766 
Foreign currency-denominated debt (b)Net investment hedges1,801 2,140 
Cross-currency swaps (c)Net investment hedges1,473 910 
(a)Represent hedges of transactional foreign exchange exposures resulting primarily from intercompany payables and receivables. Gains and losses on these instruments are recognized immediately in income. These gains and losses are largely offset by gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments. Net amounts recognized in Other (expense) income, net, during the three months ended December 31, 2022 and 2021 were immaterial to the Company's consolidated financial results.
(b)Represents foreign currency-denominated long-term notes outstanding which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries.
(c)Represents cross-currency swaps which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries.
The notional amounts of the Company’s interest rate-related derivative instruments as of December 31, 2022 and September 30, 2022 were as follows:
(Millions of dollars)Hedge DesignationDecember 31, 2022September 30, 2022
Interest rate swaps (a)Fair value hedges$700 $700 
Forward starting interest rate swaps (b)Cash flow hedges500 500 
(a)Represents fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on LIBOR.
(b)Represents interest rate derivatives entered into to mitigate exposure to interest rate risk related to future debt issuances.
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)
Net (losses) gains recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges for the three-month periods were as follows:
 Three Months Ended
December 31,
(Millions of dollars)20222021
Foreign currency-denominated debt$(142)$49 
Cross-currency swaps(80)30