Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Effects on Consolidated Balance Sheets

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)	March 31, 2015		September 30, 2014
Asset derivatives-designated for hedge accounting
Interest rate swaps	$	16	$	3
Asset derivatives-undesignated for hedge accounting
Forward exchange contracts		12		20
Total asset derivatives (A)	$	28	$	23
Liability derivatives-undesignated for hedge accounting
Forward exchange contracts		80		14
Total liability derivatives (B)	$	80	$	14

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

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

Undesignated Hedges

Undesignated hedges

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

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,						Six Months Ended March 31,
(Millions of dollars)		2015			2014			2015			2014
Forward exchange contracts (A)	Other income (expense), net	$	(94	)	$	(1	)	$	(96	)	$	5

(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.