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Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2023

Net Pension and Other Postretirement Cost

Net pension cost for the years ended September 30 included the following components:


	Pension Plans
(Millions of dollars)	2023		2022		2021
Service cost	$	91	$	134	$	150
Interest cost	129		77		71
Expected return on plan assets	(141)		(187)		(174)
Amortization of prior service credit	(7)		(15)		(16)
Amortization of loss	58		61		97
Curtailments/settlement loss	44		73		9
Net pension cost	$	174	$	143	$	137

Net pension cost included in the preceding table that is attributable to international plans	$	25	$	20	$	41

Change in Benefit Obligation, Change in Fair Value of Plan Assets

The change in benefit obligation, change in fair value of pension plan assets, funded status and amounts recognized in the Consolidated Balance Sheets for these plans were as follows:


	Pension Plans
(Millions of dollars)	2023		2022
Change in benefit obligation:
Beginning obligation	$	2,634	$	3,889
Service cost	91		134
Interest cost	129		77
Plan amendments	—		1
Benefits paid	(67)		(64)
Impact of Embecta spin-off	—		(7)
Actuarial gain	(24)		(1,007)
Curtailments/settlements	(214)		(246)
Other, includes translation	68		(143)
Benefit obligation at September 30	$	2,617	$	2,634
Change in fair value of plan assets:
Beginning fair value	$	2,242	$	3,222
Actual return on plan assets	33		(740)
Employer contribution	62		198
Benefits paid	(67)		(64)
Impact of Embecta spin-off	—		(6)
Settlements	(200)		(241)
Other, includes translation	59		(127)
Plan assets at September 30	$	2,129	$	2,242
Funded Status at September 30:
Unfunded benefit obligation	$	(488)	$	(392)
Amounts recognized in the Consolidated Balance Sheets at September 30:
Other Assets	$	81	$	70
Salaries, wages and related items	(15)		(15)
Long-term Employee Benefit Obligations	(554)		(447)
Net amount recognized	$	(488)	$	(392)
Amounts recognized in Accumulated other comprehensive income (loss) before income taxes at September 30:

Prior service credit	$	3	$	24
Net actuarial loss	(689)		(728)
Net amount recognized	$	(686)	$	(704)

Pension Plans with Accumulated Benefit Obligations

Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consist of the following at September 30:


	Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets				Projected Benefit Obligation Exceeds the Fair Value of Plan Assets
(Millions of dollars)	2023		2022		2023		2022
Projected benefit obligation	$	2,140	$	2,104	$	2,159	$	2,182
Accumulated benefit obligation	$	2,088	$	2,059
Fair value of plan assets	$	1,575	$	1,644	$	1,591	$	1,720

Weighted Average Assumptions Determining Pension Plan

The weighted average assumptions used in determining pension plan information were as follows:


	2023		2022		2021
Net Cost
Discount rate:
U.S. plans (a)	5.62	%	2.89	%	2.80	%
International plans	4.26		1.75		1.44
Expected return on plan assets:
U.S. plans	7.25		6.25		6.25
International plans	5.02		4.84		4.92
Rate of compensation increase:
U.S. plans	4.51		4.31		4.30
International plans	2.86		2.63		2.20
Cash balance plan interest crediting rate:
U.S. plans	4.00		4.00		4.00
International plans	1.98		2.02		1.95
Benefit Obligation
Discount rate:
U.S. plans	6.01		5.62		2.89
International plans	4.62		4.26		1.75
Rate of compensation increase:
U.S. plans	4.00		4.51		4.31
International plans	2.86		2.86		2.63
Cash balance plan interest crediting rate:
U.S. plans	4.00		4.00		4.00
International plans	2.21		1.98		2.02

(a)The Company calculated the service and interest components utilizing an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period.

Expected Benefit Payments

Expected benefit payments are as follows:


(Millions of dollars)	Pension Plans
2024	$	208
2025	203
2026	214
2027	204
2028	208
2029-2033	1,061

Fair Value Measurements of U.S. Plan Assets

The following table provides the fair value measurements of U.S. plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2023 and 2022. The categorization of fund investments is based upon the categorization of these funds’ underlying assets.


									Basis of fair value measurement (See Note 1)
(Millions of dollars)	Total U.S. Plan Asset Balances				Investments Measured at Net Asset Value (a)				Level 1				Level 2				Level 3
	2023		2022		2023		2022		2023		2022		2023		2022		2023		2022
Fixed Income:

Corporate bonds	$	443	$	492	$	—	$	—	$	260	$	258	$	182	$	234	$	—	$	—
Government and agency-U.S.	53		69		—		—		43		53		10		16		—		—
Government and agency-Foreign	17		22		—		—		—		—		17		22		—		—
Other fixed income	46		52		—		—		24		26		22		26		—		—
Equity securities	469		469		59		62		410		406		—		—		—		—
Cash and cash equivalents	202		243		—		—		202		243		—		—		—		—
Other	151		191		79		110		72		81		—		—		—		—
Fair value of plan assets	$	1,382	$	1,537	$	138	$	172	$	1,012	$	1,068	$	231	$	297	$	—	$	—

(a)As per applicable disclosure requirements, certain investments that were measured at net asset value per share or its equivalent have not been categorized within the fair value hierarchy. Values of such assets are based on the corroborated net asset value provided by the fund administrator.

Fair Value Measurements of Foreign Plan Assets

The following table provides the fair value measurements of international plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2023 and 2022.


						Basis of fair value measurement (See Note 1)
(Millions of dollars)	Total International Plan Asset Balances				Level 1			Level 2				Level 3 (a)
	2023		2022			2023		2022		2023		2022		2023		2022
Fixed Income:
Corporate bonds	$	122	$	33		$	100	$	19	$	10	$	14	$	12	$	—
Government and agency-U.S.	9		10			8		8		2		2		—		—
Government and agency-Foreign	197		180			165		167		26		13		6		—
Other fixed income	43		76			34		68		9		8		—		—
Equity securities	173		190			147		190		1		—		25		—
Cash and cash equivalents	10		7			8		7		—		—		2		—
Real estate	36		35			1		1		26		24		9		10
Insurance contracts	103		96			—		—		—		—		103		96
Other	55		76			35		48		1		7		19		21
Fair value of plan assets	$	748	$	705		$	499	$	508	$	74	$	68	$	175	$	128

(a)Changes in the fair value of international pension assets measured using Level 3 inputs for the years ended September 30, 2023 and 2022 were immaterial.