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FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of impact of the company's derivative instruments on comprehensive income
The following table summarizes the impact of the company’s derivatives instruments on comprehensive income for fiscal years ended September 30 (in millions): 
 
Location of
Gain (Loss)
 
2015
 
2014
 
2013
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Amount of gain recognized in AOCL
(effective portion)
AOCL
 
$
3

 
$
3

 
$
—

Amount of gain (loss) reclassified from AOCL
into income (effective portion)
Cost of Sales
 
6

 
1

 
1

Derivatives not designated as hedging instruments:
Amount of gain recognized in income
Cost of Sales
 
2

 
—

 
—

Derivatives not designated as hedging instruments:
Amount of gain recognized in income

Other Income (expense)
 
2

 
—

 
—
Summary of fair values of financial instruments
Fair values of financial instruments are summarized as follows (in millions): 
 
September 30,
2015
 
September 30,
2014
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
Cash and cash equivalents
$
193

 
$
193

 
$
247

 
$
247

Short-term debt
15

 
15

 
7

 
7

Long-term debt (1)
1,036

 
1,123

 
948

 
1,143

Foreign exchange forward contracts (asset)
1

 
1

 
2

 
2

Foreign exchange forward contracts (liability)
3

 
3

 
—

 
—

Short-term foreign currency option contracts (asset)
1

 
1

 
2

 
2

Long-term foreign currency option contracts (asset)
1

 
1

 
1

 
1


(1)
Prior year amounts have been recast to reflect the early adoption of ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.
Offsetting assets and liabilities
The following table reflects the offsetting of derivative assets and liabilities (in millions):
 
September 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
1

 
—

 
1

 
2

 
—

 
2

Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contract
3

 
—

 
3

 
—

 
—

 
—
Fair value of financial instruments by the valuation hierarchy


Fair value of financial instruments by the valuation hierarchy at September 30, 2015 is as follows (in millions):
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents
$
193

 
$
—

 
$
—

Short-term debt
—

 
—

 
15

Long-term debt
—

 
1,102

 
21

Foreign exchange forward contracts (asset)
—

 
1

 
—

Foreign exchange forward contracts (liability)
—

 
3

 
—

Short-term foreign currency option contracts (asset)
—

 
—

 
1

Long-term foreign currency option contracts (asset)
—

 
—

 
1



Fair value of financial instruments by the valuation hierarchy at September 30, 2014 is as follows (in millions):
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents
$
247

 
$
—

 
$
—

Short-term debt
—

 
—

 
7

Long-term debt
—

 
1,093

 
50

Foreign exchange forward contracts (asset)
—

 
2

 
—

Short Term foreign currency option 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 consolidated balance sheet for the twelve months ended September 30, 2015 and September 30, 2014, respectively. No transfers of assets between any of the Levels occurred during these periods.
Twelve months ended September 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, net
 
(1
)
 
—

 
(1
)
Included in cost of sales
 
(1
)
 
—

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

 
—

 
2

Included in cost of sales
 
3

 
—

 
3

Purchases, issuances, sales and settlements:
 
 
 
 
 
 
Purchases
 
6

 
—

 
6

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 September 30, 2015
 
$
1

 
$
1

 
$
2

Twelve months ended September 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, net
 
—

 
—

 
—

Included in cost of sales
 
—

 
—

 
—

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

 
—

 
—

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 September 30, 2014
 
$
2

 
$
1

 
$
3

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