Financial Instruments (Tables)

6 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of financial instruments

Fair values of financial instruments are summarized as follows (in millions):

	March 31, 2015				September 30, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
Cash and cash equivalents	$	207	$	207	$	247	$	247
Short-term debt	5		5		7		7
Long-term debt	945		1,131		965		1,143
Foreign exchange forward contracts (asset)	5		5		2		2
Short-term foreign currency option contracts (asset)	2		2		2		2
Long-term foreign currency option contracts (asset)	2		2		1		1

Offsetting of derivative assets and liabilities

The following table reflects the offsetting of derivative assets and liabilities (in millions):

	March 31, 2015				September 30, 2014
	Gross Amounts Recognized	Gross Amounts Offset		Net Amounts Reported	Gross Amounts Recognized	Gross Amounts Offset	Net Amounts Reported
Derivative Asset
Foreign exchange forward contract	6	(1	)	5	2	—	2
Derivative Liabilities
Foreign exchange forward contract	1	(1	)	—	—	—	—

Fair value of financial instruments by the valuation hierarchy

Fair value of financial instruments by the valuation hierarchy at March 31, 2015 is as follows (in millions):

	Level 1		Level 2		Level 3
Cash and cash equivalents	$	207	$	—	$	—
Short-term debt	—		—		5
Long-term debt	—		1,093		38
Foreign exchange forward contracts (asset)	—		5		—
Short-term foreign currency option contracts (asset)	—		—		2
Long-term foreign currency option contracts (asset)	—		—		2

Reconciliation of changes in fair value of Level 3 financial assets and liabilities

The table below provides a reconciliation of changes in fair value of the Level 3 financial assets and liabilities measured at fair value in the condensed consolidated balance sheet from September 30, 2014 to March 31, 2015. No transfers of assets between any of the Levels occurred during this period.

	Short-term foreign currency option contracts (asset)			Long-term foreign currency option contracts (asset)			Total
Fair Value as of September 30, 2014	$	2		$	1		$	3
Total unrealized gains (losses):
Included in other income	—			—			—
Included in cost of sales	—			—			—
Total realized gains (losses):
Included in other income	3			—			3
Included in cost of sales	3			—			3
Purchases, issuances, sales and settlements:
Purchases	5			—			5
Settlements	(10		)	(1		)	(11		)
Transfer in and / or out of Level 3 (1)	—			—			—
Reclass between short-term and long-term	(1		)	2			1
Fair Value as of March 31, 2015	$	2		$	2		$	4

⁽¹⁾ Transfers as of the last day of the reporting period