Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2016

Net Pension and Other Postretirement Cost

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

	Pension Plans									Other Postretirement Benefits
(Millions of dollars)	2016			2015			2014			2016			2015			2014
Service cost	$	81		$	77		$	71		$	3		$	3		$	3
Interest cost	72			87			93			5			7			9
Expected return on plan assets	(109		)	(123		)	(126		)	—			—			—
Amortization of prior service credit	(15		)	(15		)	(15		)	(5		)	(5		)	(4		)
Amortization of loss	77			68			49			2			3			2
Settlements	7			—			3			—			—			—
Net pension and postretirement cost	$	113		$	93		$	74		$	5		$	9		$	10

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

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

	Pension Plans						Other Postretirement Benefits
(Millions of dollars)	2016			2015			2016			2015
Change in benefit obligation:
Beginning obligation	$	2,426		$	2,366		$	186		$	201
Service cost	81			77			3			3
Interest cost	72			87			5			7
Plan amendments	—			(2		)	(1		)	—
Benefits paid	(116		)	(138		)	(17		)	(18		)
Benefit obligations assumed in acquisition	—			67			—			—
Actuarial loss (gain)	302			49			3			(11		)
Settlements	(15		)	—			—			—
Other, includes translation	(30		)	(81		)	4			3
Benefit obligation at September 30	$	2,719		$	2,426		$	184		$	186
Change in fair value of plan assets:
Beginning fair value	$	1,732		$	1,829		$	—		$	—
Actual return on plan assets	131			(21		)	—			—
Employer contribution	145			65			—			—
Benefits paid	(116		)	(138		)	—			—
Plan assets acquired in acquisition	—			54			—			—
Settlements	(15		)	—			—			—
Other, includes translation	(21		)	(58		)	—			—
Plan assets at September 30	$	1,855		$	1,732		$	—		$	—
Funded Status at September 30:
Unfunded benefit obligation	$	(864	)	$	(694	)	$	(184	)	$	(186	)
Amounts recognized in the Consolidated Balance Sheets at September 30:
Other	$	5		$	7		$	—		$	—
Salaries, wages and related items	(12		)	(10		)	(15		)	(15		)
Long-term Employee Benefit Obligations	(857		)	(691		)	(169		)	(171		)
Net amount recognized	$	(864	)	$	(694	)	$	(184	)	$	(186	)
Amounts recognized in Accumulated other comprehensive income (loss) before income taxes at September 30:
Prior service credit	87			103			33			37
Net actuarial loss	(1,307		)	(1,124		)	(32		)	(30		)
Net amount recognized	$	(1,221	)	$	(1,021	)	$	1		$	7

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)	2016		2015		2016		2015
Projected benefit obligation	$	2,616	$	2,339	$	2,682	$	2,394
Accumulated benefit obligation	$	2,529	$	2,265
Fair value of plan assets	$	1,757	$	1,650	$	1,813	$	1,693

Weighted Average Assumptions Determining Pension Plan

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

	2016		2015		2014
Net Cost
Discount rate:
U.S. plans (A) (B)	4.15	%	4.15	%	4.95	%
Foreign plans	2.84		3.14		3.87
Expected return on plan assets:
U.S. plans	7.50		7.50		7.75
Foreign plans	5.02		5.45		5.68
Rate of compensation increase:
U.S. plans (A)	4.25		4.25		4.25
Foreign plans	2.33		2.49		2.46
Benefit Obligation
Discount rate:
U.S. plans (C)	3.42		4.15		4.15
Foreign plans	1.70		2.84		3.14
Rate of compensation increase:
U.S. plans (A)	4.25		4.25		4.25
Foreign plans	2.33		2.33		2.49

(A) The same rates were also used to determine other postretirement and postemployment benefit information. 

(B) In 2015 and 2014 the Company calculated the service and interest components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Effective September 30, 2015, the Company elected to utilize 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. The Company accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and as such, the change was accounted for prospectively.

(C) The discount rates used to determine other postretirement benefit plan information in fiscal years 2016, 2015 and 2014 were 3.14%, 3.95% and 3.85%, respectively. The discount rates used to determine postemployment benefit plan information in fiscal years 2016, 2015 and 2014 were 3.10%, 3.75% and 3.75%, respectively.

Expected Benefit Payments

Expected benefit payments are as follows:

(Millions of dollars)	Pension Plans		Other Postretirement Benefits
2017	$	169	$	15
2018	163		15
2019	174		15
2020	172		14
2021	178		14
2022-2026	883		61

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, 2016 and 2015. The categorization of fund investments is based upon the categorization of these funds’ underlying assets.

(Millions of dollars)	Total U.S. Plan Asset Balances at September 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fixed Income:
Mortgage and asset-backed securities	$	169	$	—	$	169	$	—
Corporate bonds	197		68		129		—
Government and agency-U.S.	103		67		36		—
Government and agency-Foreign	90		52		37		—
Equity securities	459		61		398		—
Cash and cash equivalents	89		89		—		—
Other	124		33		90		1
Fair value of plan assets	$	1,231	$	371	$	859	$	1

(Millions of dollars)	Total U.S. Plan Asset Balances at September 30, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fixed Income:
Mortgage and asset-backed securities	$	192	$	—	$	192	$	—
Corporate bonds	240		100		139		—
Government and agency-U.S.	78		53		24		—
Government and agency-Foreign	95		46		49		—
Equity securities	335		75		260		—
Cash and cash equivalents	96		96		—		—
Other	123		30		91		2
Fair value of plan assets	$	1,157	$	401	$	755	$	2

Fair Value Measurements of Foreign Plan Assets

The following table provides the fair value measurements of foreign plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2016 and 2015.

(Millions of dollars)	Total Foreign Plan Asset Balances at September 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fixed Income:
Corporate bonds	$	34	$	—	$	34	$	—
Government and agency-U.S.	5		2		3		—
Government and agency-Foreign	119		73		46		—
Other fixed income	51		46		5		—
Equity securities	228		214		14		—
Cash and cash equivalents	13		13		—		—
Real estate	17		—		17		—
Insurance contracts	102		—		—		102
Other	57		43		14		—
Fair value of plan assets	$	624	$	391	$	132	$	102

(Millions of dollars)	Total Foreign Plan Asset Balances at September 30, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fixed Income:
Corporate bonds	$	33	$	3	$	30	$	—
Government and agency-U.S.	1		1		—		—
Government and agency-Foreign	101		65		36		—
Other fixed income	48		46		2		—
Equity securities	206		187		19		—
Cash and cash equivalents	8		8		—		—
Real estate	13		—		13		—
Insurance contracts	90		—		—		90
Other	74		53		21		—
Fair value of plan assets	$	575	$	364	$	121	$	90

Postemployment Benefit Costs

Postemployment benefit costs for the years ended September 30 included the following components:

(Millions of dollars)	2016		2015			2014
Service cost	$	23	$	18		$	20
Interest cost	4		6			7
Amortization of prior service credit	—		(2		)	(2		)
Amortization of loss	13		18			21
Net postemployment benefit cost	$	40	$	42		$	47

Changes in Benefit Obligation for Postemployment Benefits

The changes in benefit obligation for these postemployment benefits were as follows:

	Postemployment benefits
(Millions of dollars)	2016			2015
Change in benefit obligation:
Beginning obligation	$	163		$	184
Service cost	23			18
Interest cost	4			6
Benefits paid	(21		)	(25		)
Actuarial (gain) loss	—			(22		)
Benefit obligation at September 30	$	168		$	163

Foreign Plans

Changes in Fair Value Pension Assets Measured Using Level 3 Inputs

The following table summarizes the changes, for the years ended September 30, 2016 and 2015, in the fair value of foreign pension assets measured using Level 3 inputs:

(Millions of dollars)	Insurance Contracts
Balance at September 30, 2014	$	78
Actual return on plan assets:
Relating to assets held at September 30, 2014	4
Purchases, sales and settlements, net	16
Transfers in from other categories	1
Exchange rate changes	(9		)
Balance at September 30, 2015	$	90
Actual return on plan assets:
Relating to assets held at September 30, 2015	8
Purchases, sales and settlements, net	2
Exchange rate changes	1
Balance at September 30, 2016	$	102