RETIREMENT PENSION PLANS (Tables)

12 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of US Pension Liability Expense Assumptions

The following are the significant assumptions used in the measurement of the projected benefit obligation (PBO) and net periodic pension expense:



	U.S. Plans
	2014					2013					2012
Discount Rate	4.20	%	—	4.30	%	4.75	%	—	4.95	%	4.20	%
Assumed return on plan assets (beginning of the year)	8.00%					8.00%					8.00	%

Schedule of Non-US Pension Liability Expense Assumptions



	Non-U.S. Plans
	2014					2013					2012
Discount Rate ⁽¹⁾	1.90	%	—	4.10	%	2.40	%	—	4.70	%	2.10	%	—	4.60	%
Assumed return on plan assets (beginning of the year) ⁽¹⁾	2.25	%	—	7.25	%	2.50	%	—	7.25	%	2.50	%	—	7.50	%
Rate of compensation increase ⁽²⁾	2.00	%	—	3.00	%	2.00	%	—	3.00	%	2.00	%	—	3.00	%

____________________


⁽¹⁾	The discount rate for the company’s U.K. pension plan was 4.10 percent, 4.70 percent and 4.60 percent for 2014, 2013 and 2012, respectively. The assumed return on plan assets for this plan was 7.25 percent, 7.25 percent and 7.50 percent for fiscal years 2014, 2013 and 2012, respectively.


⁽²⁾	The rate of compensation increase for the company's Canadian pension plans was 3.00 percent for 2014, 2013 and 2012. The rate of compensation increase for the company's Swiss pension plans was 2.00 percent for 2014, 2013 and 2012.

Rollforward of Pension Liability and Pension Plan Assets

The following table reconciles the change in the PBO, the change in plan assets and amounts included in the consolidated balance sheet for the years ended September 30, 2014 and 2013, respectively (in millions):



	2014									2013
	U.S.			Non- U.S.			Total			U.S.			Non- U.S.			Total
PBO — beginning of year	$	1,017		$	691		$	1,708		$	1,312		$	754		$	2,066
Service cost	1			1			2			1			2			3
Interest cost	49			31			80			54			29			83
Actuarial loss (gain)	67			38			105			(102		)	17			(85		)
Curtailment gain	—			—			—			(4		)	(1		)	(5		)
Settlements	—			—			—			(178		)	(70		)	(248		)
Amendments	(4		)	—			(4		)	—			—			—
Benefit payments	(71		)	(28		)	(99		)	(66		)	(33		)	(99		)
Foreign currency rate changes	—			2			2			—			(7		)	(7		)
PBO — end of year	$	1,059		$	735		$	1,794		$	1,017		$	691		$	1,708
Change in plan assets
Fair value of assets — beginning of year	$	710		$	657		$	1,367		$	864		$	673		$	1,537
Actual return on plan assets	94			69			163			3			53			56
Employer contributions	99			38			137			66			49			115
Settlements	—			—			—			(157		)	(74		)	(231		)
Benefit payments	(71		)	(28		)	(99		)	(66		)	(33		)	(99		)
Foreign currency rate changes	—			7			7			—			(11		)	(11		)
Fair value of assets — end of year	$	832		$	743		$	1,575		$	710		$	657		$	1,367
Funded status	$	(227	)	$	8		$	(219	)	$	(307	)	$	(34	)	$	(341	)

Schedule of Balance Sheet Classification of Net Pension Liability

Amounts included in the consolidated balance sheet at September 30 are comprised of the following (in millions):



	2014									2013
	U.S.			Non-U.S.			Total			U.S.			Non-U.S.			Total
Non-current assets	$	—		$	104		$	104		$	—		$	55		$	55
Current liabilities	(5		)	(3		)	(8		)	(6		)	(3		)	(9		)
Retirement benefits-non-current	(222		)	(93		)	(315		)	(301		)	(86		)	(387		)
Net amount recognized	$	(227	)	$	8		$	(219	)	$	(307	)	$	(34	)	$	(341	)

Schedule of Pension Costs Recognized in Other Comprehensive Loss

The following tables summarize the amounts included in Accumulated Other Comprehensive Loss net of tax related to pension liabilities as of September 30, 2014 and 2013 and changes recognized in Other Comprehensive Income (Loss) net of tax for the year ended September 30, 2014.



	Net Actuarial Loss
	U.S.			Non-U.S.			Total
Balance at September 30, 2013	$	408		$	234		$	642
Net actuarial loss for the year	26			16			42
Amortization for the year	(15		)	(8		)	(23		)
Deferred tax impact	—			(1		)	(1		)
Balance at September 30, 2014	$	419		$	241		$	660

Balance at September 30, 2012	$	560		$	259		$	819
Net actuarial loss (gain) for the year	(58		)	13			(45		)
Amortization for the year	(17		)	(9		)	(26		)
Curtailment gain	(4		)	—			(4		)
Deferred tax impact	—			9			9
Settlements	(73		)	(38		)	(111		)
Balance at September 30, 2013	$	408		$	234		$	642

Pension and Other Postretirement Benefits

The non-current portion of the pension liability is included in Retirement Benefits in the consolidated balance sheet as follows (in millions):



	September 30,
	2014		2013
Pension liability	$	315	$	387
Retiree medical liability — long term (see Note 19)	446		476
Other	14		23
Total retirement benefits	$	775	$	886

Schedule of Projected Benefit Obligation Accumulated Benefit Obligation and Plan Assets

Additional information is as follows (in millions):



	2014						2013
	ABO Exceeds Assets		Assets Exceed ABO		Total		ABO Exceeds Assets		Assets Exceed ABO		Total
PBO	$	1,180	$	614	$	1,794	$	1,116	$	592	$	1,708
ABO	1,180		613		1,793		1,115		592		1,707
Plan Assets	857		718		1,575		719		648		1,367

Schedule of Net Periodic Pension Benefit Costs

The components of net periodic pension expense are as follows (in millions):



	2014			2013			2012
Service cost	$	2		$	3		$	2
Interest cost	80			83			91
Assumed rate of return on plan assets	(104		)	(112		)	(105		)
Amortization of —
Actuarial losses	23			26			22
Curtailment gain	—			(1		)	—
Settlement loss	—			111			1
Net periodic pension expense	1			110			11

Pension Plan Investments Measured at Fair Value by Level Within Fair Value Hierarchy

The fair value of plan assets at September 30, 2014 by asset category is as follows (in millions):



U.S. Plans	2014
Asset Category	Level 1		Level 2		Level 3		Total
Equity investments
U.S. – Large cap	$	104	$	—	$	—	$	104
U.S. – Small cap	25		—		—		25
Emerging equity	—		22		—		22
Private equity	—		—		80		80
International equity	65		12		—		77
Partnerships – equity	—		57		1		58
Total equity investments	$	194	$	91	$	81	$	366
Fixed income investments
U.S. fixed income	$	24	$	252	$	—	$	276
Emerging fixed income	—		22		—		22
International fixed income	—		—		11		11
U.S. high yield	—		15		—		15
Partnerships fixed income	—		—		18		18
Total fixed income	$	24	$	289	$	29	$	342
Alternatives – Partnerships	—		63		60		123
Cash and cash equivalents	—		1		—		1
Total assets at fair value	$	218	$	444	$	170	$	832

Non-U.S. Plans	2014
Asset Category	Level 1		Level 2		Level 3		Total
Equity investments
International equity	$	103	$	112	$	—	$	215
Fixed income investments
Corporate bonds	—		139		—		139
Other fixed income investments	—		205		—		205
Total fixed income	$	—	$	344	$	—	$	344
Real estate	—		—		67		67
Commingled funds	—		9		—		9
Alternative investments	—		—		61		61
Cash and cash equivalents	—		47		—		47
Total assets at fair value	$	103	$	512	$	128	$	743

The fair value of plan assets at September 30, 2013 by asset category is as follows (in millions):



U.S. Plans	2013
Asset Category	Level 1		Level 2		Level 3		Total
Equity investments
U.S. – Large cap	$	97	$	—	$	—	$	97
U.S. – Small cap	29		—		—		29
Emerging equity	—		22		—		22
Private equity	—		—		50		50
International equity	81		—		—		81
Partnerships – equity	—		41		—		41
Total equity investments	$	207	$	63	$	50	$	320
Fixed income investments
U.S. fixed income	$	21	$	173	$	—	$	194
Emerging fixed income	—		20		—		20
International fixed income	—		—		9		9
U.S. high yield	—		—		12		12
Partnerships fixed income	—		—		19		19
Total fixed income	$	21	$	193	$	40	$	254
Alternatives – Partnerships	—		71		53		124
Cash and cash equivalents	—		12		—		12
Total assets at fair value	$	228	$	339	$	143	$	710

Non-U.S. Plans	2013
Asset Category	Level 1		Level 2		Level 3		Total
Equity investments
International equity	$	94	$	102	$	—	$	196
Fixed income investments
Corporate bonds	—		145		—		145
Other fixed income investments	—		137		—		137
Total fixed income	$	—	$	282	$	—	$	282
Real estate	—		—		59		59
Commingled funds	—		9		—		9
Alternative investments	—		—		56		56
Cash and cash equivalents	—		55		—		55
Total assets at fair value	$	94	$	448	$	115	$	657

Changes in Level 3, Pension Plan Investments

The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended September 30, 2014 (in millions):



U.S. Plans	2014
	Fair Value at October 1, 2013		Return on Plan Assets: Attributable to Assets Held at September 30, 2014		Purchases		Settlements			Net Transfers Into (Out of) Level 3			Fair Value at September 30, 2014
Asset Category
Private equity	$	50	$	23	$	13	$	(6	)	$	—		$	80
U.S. high yield	12		1		2		—			(15		)	—
International fixed income	9		2		—		—			—			11
Partnerships –
Fixed income	19		1		2		(4		)	—			18
Equity	—		—		—		—			1			1
Alternatives –
Partnerships	53		9		—		(2		)	—			60
Total Level 3 fair value	$	143	$	36	$	17	$	(12	)	$	(14	)	$	170



Non-U.S. Plans	2014
	Fair Value at October 1, 2013		Return on Plan Assets: Attributable to Assets Held at September 30, 2014		Purchases		Settlements			Net Transfers Into (Out of) Level 3		Fair Value at September 30, 2014
Asset Category
Real estate	$	59	$	9	$	—	$	(1	)	$	—	$	67
Alternative investments	56		5		—		—			—		61
Total Level 3 fair value	$	115	$	14	$	—	$	(1	)	$	—	$	128

The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended September 30, 2013 (in millions):



U.S. Plans	2013
	Fair Value at October 1, 2012		Return on Plan Assets: Attributable to Assets Held at September 30, 2013			Purchases		Settlements			Net Transfers Into (Out of) Level 3			Fair Value at September 30, 2013
Asset Category
Private equity	$	48	$	1		$	3	$	(2	)	$	—		$	50
U.S. high yield	10		2			—		—			—			12
International fixed income	10		(1		)	—		—			—			9
Partnerships –
Fixed income	13		1			9		(4		)	—			19
Equity	13		—			—		—			(13		)	—
Alternatives –
Partnerships	49		7			—		(3		)	—			53
Total Level 3 fair value	$	143	$	10		$	12	$	(9	)	$	(13	)	$	143



Non-U.S. Plans	2013
	Fair Value at October 1, 2012		Return on Plan Assets: Attributable to Assets Held at September 30, 2011		Purchases		Settlements			Net Transfers Into (Out of) Level 3		Fair Value at September 30, 2013
Asset Category
Real estate	$	50	$	1	$	10	$	(2	)	$	—	$	59
Alternative investments	64		4		—		(12		)	—		56
Total Level 3 fair value	$	114	$	5	$	10	$	(14	)	$	—	$	115

Pension Plan Estimated Future Contributions and Benefit Payments

Information about the expected cash flows for the U.S. and non-U.S. pension plans is as follows (in millions):



	U.S.		Non U.S.		Total
Expected employer contributions:
Fiscal 2015	$	5	$	5	$	10
Expected benefit payments:
Fiscal 2015	77		28		105
Fiscal 2016	76		29		105
Fiscal 2017	74		30		104
Fiscal 2018	73		31		104
Fiscal 2019	72		32		104
Fiscal 2020-2024	345		175		520