Accumulated Other Comprehensive Income

9 Months Ended

Jun. 30, 2014

Equity [Abstract]

Accumulated Other Comprehensive Income

Note 3 – Accumulated Other Comprehensive Income

The components and changes in accumulated other comprehensive income (loss) for the nine-month period ended June 30, 2014 were as follows:

(millions of dollars)	Total			Foreign Currency Translation Adjustments		Benefit Plans Adjustments(A)			Unrealized Losses on Cash Flow Hedges(B)
Balance at September 30, 2013	$	(516	)	$	74	$	(558	)	$	(31	)
Other comprehensive income before reclassifications		30			3		27			—
Amounts reclassified into income (C)		29			—		25			4
Balance at June 30, 2014	$	(457	)	$	77	$	(506	)	$	(28	)

(A) The reclassifications from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost and additional details are provided in Note 8. The reclassification amount for the three months ended June 30, 2014 was $8 million. The reclassification amounts for the three and nine months ended June 30, 2013 were $14 million and $41 million, respectively. Amounts are net of taxes.

(B) The reclassification amount for the three months ended June 30, 2014 was $1 million. The reclassification amounts for the three and nine months ended June 30, 2013 were $1 million and $4 million, respectively. Additional details regarding the reclassifications from accumulated other comprehensive income (loss) related to cash flow hedges are provided in Note 11. Amounts are net of taxes.

(C) The benefit plan-related amount is not reclassified into income in its entirety. The reclassification amounts related to cash flow hedges for the three and nine months ended June 30, 2014 and 2013 were primarily recorded in Interest expense.

The gain in foreign currency translation adjustments for the nine months ended June 30, 2014 was primarily attributable to the strengthening of the Euro and of currencies in Asia Pacific against the U.S. dollar, partially offset by the weakening of the Canadian Dollar and Japanese Yen against the U.S. dollar during the period.

The income tax provision associated with the net gain recorded in other comprehensive income as a result of the Company’s remeasurement of its U.S. postretirement healthcare benefit plan in the nine-months ending June 30, 2014 was $16 million. Additional disclosures regarding this remeasurement are provided in Note 8. The income tax benefits associated with the benefit plan-related reclassification adjustments for amortization of prior service credit and amortization of net actuarial losses for the three months ended June 30, 2014 and 2013 were $4 million and $8 million, respectively. The income tax benefits associated with the reclassification adjustments for amortization of prior service credit and amortization of net actuarial losses for the nine months ended June 30, 2014 and 2013 were $13 million and $23 million, respectively.

There were no unrealized gains or losses recognized on cash flow hedges in the three and nine months ended June 30, 2014. The income tax benefit recorded in the three months ended June 30, 2013 for unrealized losses on cash flow hedges was immaterial and the income tax provision recorded in the nine months ended June 30, 2013 for unrealized gains on cash flow hedges was $1 million. The tax benefit associated with the reclassification adjustments for realized hedge losses in the three months ended June 30, 2014 was $1 million and the tax benefit associated with the reclassification adjustments for realized hedge losses in the three months ended June 30, 2013 was immaterial. The tax benefits associated with the reclassification adjustments for realized hedge losses in the nine months ended June 30, 2014 and 2013 were $2 million.