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Financial Instruments (Tables)
 9 Months Ended
Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair value of financial instruments
Fair values of financial instruments are summarized as follows (in millions):
 
June 30, 2015
 
September 30, 2014
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
Cash and cash equivalents
$
345

 
$
345

 
$
247

 
$
247

Short-term debt
18

 
18

 
7

 
7

Long-term debt
1,079

 
1,217

 
965

 
1,143

Foreign exchange forward contracts (asset)
2

 
2

 
2

 
2

Short-term foreign currency option contracts (asset)
—

 
—

 
2

 
2

Long-term foreign currency option contracts (asset)
1

 
1

 
1

 
1
Offsetting of derivative assets and liabilities
The following table reflects the offsetting of derivative assets and liabilities (in millions):
 
June 30, 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
3

 
(1
)
 
2

 
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 June 30, 2015 is as follows (in millions):
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents
$
345

 
$
—

 
$
—

Short-term debt
—

 
—

 
18

Long-term debt
—

 
1,192

 
25

Foreign exchange forward contracts (asset)
—

 
—

 
2

Long-term foreign currency option contracts (asset)
—

 
—

 
1
Reconciliation of changes in fair value of Level 3 financial assets and liabilities
The tables below provide 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 for the three and nine months ended June 30, 2015 and June 30, 2014, respectively. No transfers of assets between any of the Levels occurred during these periods.
Three months ended June 30, 2015 (in millions)
 
Short-term foreign currency option contracts (asset)
 
Long-term foreign currency option contracts (asset)
 
Total
Fair Value as of March 31, 2015
 
$
2

 
$
2

 
$
4

Total unrealized gains (losses):
 
 
 
 
 


Included in other income
 
—

 
—

 
—

Included in cost of sales
 
(1
)
 
—

 
(1
)
Total realized gains (losses):
 
 
 
 
 


Included in other income
 
(1
)
 
—

 
(1
)
Included in cost of sales
 
—

 
—

 
—

Purchases, issuances, sales and settlements:
 
 
 
 
 


Purchases
 
—

 
—

 
—

Settlements
 
—

 
—

 
—

Transfer in and / or out of Level 3 (1)
 
—

 
—

 
—

Reclass between short-term and long-term
 
—

 
(1
)
 
(1
)
Fair Value as of June 30, 2015
 
$
—

 
$
1

 
$
1

Three months ended June 30, 2014 (in millions)
 
Short-term foreign currency option contracts (asset)
 
Long-term foreign currency option contracts (asset)
 
Total
Fair Value as of March 31, 2014
 
$
—

 
$
—

 
$
—

Total unrealized gains (losses):
 
 
 
 
 
 
Included in other income
 
—

 
—

 
—

Included in cost of sales
 
(1
)
 
—

 
(1
)
Total realized gains (losses):
 
 
 
 
 
 
Included in other income
 
—

 
—

 
—

Included in cost of sales
 
—

 
—

 
—

Purchases, issuances, sales and settlements:
 
 
 
 
 


Purchases
 
3

 
—

 
3

Settlements
 
—

 
—

 
—

Transfer in and / or out of Level 3 (1)
 
—

 
—

 
—

Reclass between short-term and long-term
 
(1
)
 
1

 
—

Fair Value as of June 30, 2014
 
$
1

 
$
1

 
$
2

Nine months ended June 30, 2015 (in millions)
 
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
 
(1
)
 
—

 
(1
)
Total realized gains (losses):
 
 
 
 
 
 
Included in other income
 
2

 
—

 
2

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
)
 
1

 
—

Fair Value as of June 30, 2015
 
$
—

 
$
1

 
$
1

Nine months ended June 30, 2014 (in millions)
 
Short-term foreign currency option contracts (asset)
 
Long-term foreign currency option contracts (asset)
 
Total
Fair Value as of September 30, 2013
 
$
—

 
$
—

 
$
—

Total unrealized gains (losses):
 
 
 
 
 
 
Included in other income
 
—

 
—

 
—

Included in cost of sales
 
(1
)
 
—

 
(1
)
Total realized gains (losses):
 
 
 
 
 
 
Included in other income
 
—

 
—

 
—

Included in cost of sales
 
—

 
—

 
—

Purchases, issuances, sales and settlements:
 
 
 
 
 


Purchases
 
3

 
—

 
3

Settlements
 
—

 
—

 
—

Transfer in and / or out of Level 3 (1)
 
—

 
—

 
—

Reclass between short-term and long-term
 
(1
)
 
1

 
—

Fair Value as of June 30, 2014
 
$
1

 
$
1

 
$
2

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