RETIREMENT PENSION PLANS (Tables)

12 Months Ended

Sep. 30, 2015

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
	2015					2014					2013
Discount Rate	4.25	%	—	4.35	%	4.20	%	—	4.30	%	4.75	%	—	4.95	%
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
	2015					2014					2013
Discount Rate ⁽¹⁾	1.00	%	—	3.80	%	1.90	%	—	4.10	%	2.40	%	—	4.70	%
Assumed return on plan assets (beginning of the year) ⁽¹⁾	2.25	%	—	7.25	%	2.25	%	—	7.25	%	2.50	%	—	7.25	%
Rate of compensation increase ⁽²⁾	2.00%					2.00	%	—	3.00	%	2.00	%	—	3.00	%

____________________


⁽¹⁾	The discount rate for the company’s U.K. pension plan was 3.80 percent, 4.10 percent and 4.70 percent for 2015, 2014 and 2013, respectively. The assumed return on plan assets for this plan was 7.25 percent for 2015, 2014 and 2013.


⁽²⁾	The rate of compensation increase for the company's Swiss pension plan was 2.00 percent for 2015, 2014, and 2013. The rate of compensation increase for the company's Canadian pension plans was 3.00 percent for 2014 and 2013.

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, 2015 and 2014, respectively (in millions):



	2015									2014
	U.S.			Non- U.S.			Total			U.S.			Non- U.S.			Total
PBO — beginning of year	$	1,059		$	735		$	1,794		$	1,017		$	691		$	1,708
Service cost	1			1			2			1			1			2
Interest cost	44			26			70			49			31			80
Actuarial loss	10			48			58			67			38			105
Settlements	—			(111		)	(111		)	—			—			—
Amendments	—			—			—			(4		)	—			(4		)
Benefit payments	(72		)	(29		)	(101		)	(71		)	(28		)	(99		)
Foreign currency rate changes	—			(56		)	(56		)	—			2			2
PBO — end of year	$	1,042		$	614		$	1,656		$	1,059		$	735		$	1,794
Change in plan assets
Fair value of assets — beginning of year	$	832		$	743		$	1,575		$	710		$	657		$	1,367
Actual return on plan assets	65			67			132			94			69			163
Employer contributions	5			7			12			99			38			137
Settlements	—			(20		)	(20		)	—			—			—
Benefit payments	(72		)	(29		)	(101		)	(71		)	(28		)	(99		)
Foreign currency rate changes	—			(51		)	(51		)	—			7			7
Fair value of assets — end of year	$	830		$	717		$	1,547		$	832		$	743		$	1,575
Funded status	$	(212	)	$	103		$	(109	)	$	(227	)	$	8		$	(219	)

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):



	2015									2014
	U.S.			Non-U.S.			Total			U.S.			Non-U.S.			Total
Non-current assets	$	—		$	110		$	110		$	—		$	104		$	104
Current liabilities	(5		)	—			(5		)	(5		)	(3		)	(8		)
Retirement benefits-non-current	(207		)	(7		)	(214		)	(222		)	(93		)	(315		)
Net amount recognized	$	(212	)	$	103		$	(109	)	$	(227	)	$	8		$	(219	)

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, 2015 and 2014 and changes recognized in Other Comprehensive Income (Loss) net of tax for the year ended September 30, 2015.



	Net Actuarial Loss
	U.S.			Non-U.S.			Total
Balance at September 30, 2014	$	419		$	241		$	660
Net actuarial loss for the year	8			24			32
Amortization for the year	(17		)	(8		)	(25		)
Deferred tax impact	—			5			5
Settlements	—			(56		)	(56		)
Balance at September 30, 2015	$	410		$	206		$	616

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

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,
	2015		2014
Pension liability	$	214	$	315
Retiree medical liability — long term (see Note 20)	405		446
Other	13		14
Total retirement benefits	$	632	$	775

Schedule of Projected Benefit Obligation Accumulated Benefit Obligation and Plan Assets

Additional information is as follows (in millions):



	2015						2014
	ABO Exceeds Assets		Assets Exceed ABO		Total		ABO Exceeds Assets		Assets Exceed ABO		Total
PBO	$	1,057	$	599	$	1,656	$	1,180	$	614	$	1,794
ABO	1,057		598		1,655		1,180		613		1,793
Plan Assets	838		709		1,547		857		718		1,575

Schedule of Net Periodic Pension Benefit Costs

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



	2015			2014			2013
Service cost	$	2		$	2		$	3
Interest cost	70			80			83
Assumed rate of return on plan assets	(111		)	(104		)	(112		)
Amortization of —
Actuarial losses	26			23			26
Curtailment gain	—			—			(1		)
Settlement loss	59			—			111
Net periodic pension expense	$	46		$	1		$	110

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

The fair value of plan assets at September 30, 2015 by asset category is as follows (in millions):



U.S. Plans	2015
Asset Category	Level 1		Level 2		Level 3		Total
Equity investments
U.S. – Large cap	$	88	$	—	$	—	$	88
U.S. – Small cap	21		—		—		21
Private equity	—		—		15		15
International equity	53		—		—		53
Equity investments measured at net asset value ⁽¹⁾	—		—		—		160
Total equity investments	$	162	$	—	$	15	$	337
Fixed income investments
U.S. fixed income	$	8	$	263	$	—	$	271
Emerging fixed income	—		20		—		20
Partnerships fixed income	—		—		1		1
Fixed income investments measured at net asset value ⁽¹⁾	—		—		—		45
Total fixed income	$	8	$	283	$	1	$	337
Alternatives – Partnerships	—		—		84		84
Alternatives – Partnerships measured at net asset value ⁽¹⁾	—		—		—		65
Cash and cash equivalents	—		7		—		7
Total assets at fair value	$	170	$	290	$	100	$	830

Non-U.S. Plans	2015
Asset Category	Level 1		Level 2		Level 3		Total
Equity investments
International equity	$	55	$	—	$	—	$	55
Equity investments measured at net asset value ⁽¹⁾	—		—		—		106
Total equity investments	$	55	$	—	$	—	$	161
Fixed income investments
Other fixed income investments	$	—	$	186	$	—	$	186
Fixed income investments measured at net asset value ⁽¹⁾	—		—		—		158
Total fixed income	$	—	$	186	$	—	$	344
Commingled funds	—		8		—		8
Alternative investments measured at net asset value ⁽¹⁾	—		—		—		133
Real estate measured at net asset value ⁽¹⁾	—		—		—		43
Cash and cash equivalents	—		28		—		28
Total assets at fair value	$	55	$	222	$	—	$	717


⁽¹⁾	In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

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
Private equity	—		—		15		15
International equity	65		—		—		65
Equity investments measured at net asset value ⁽¹⁾	—		—		—		157
Total equity investments	$	194	$	—	$	15	$	366
Fixed income investments
U.S. fixed income	$	24	$	252	$	—	$	276
Emerging fixed income	—		22		—		22
Partnerships fixed income	—		—		1		1
Fixed income investments measured at net asset value ⁽¹⁾	—		—		—		43
Total fixed income	$	24	$	274	$	1	$	342
Alternatives – Partnerships	—		—		58		58
Alternatives – Partnerships measured at net asset value ⁽¹⁾	—		—		—		65
Cash and cash equivalents	—		1		—		1
Total assets at fair value	$	218	$	275	$	74	$	832

Non-U.S. Plans	2014
Asset Category	Level 1		Level 2		Level 3		Total
Equity investments
International equity	$	103	$	—	$	—	$	103
Equity investments measured at net asset value ⁽¹⁾	—		—		—		112
Total equity investments	$	103	$	—	$	—	$	215
Fixed income investments
Fixed income investments measured at net asset value ⁽¹⁾	$	—	$	—	$	—	$	344
Total fixed income	$	—	$	—	$	—	$	344
Commingled funds	—		9		—		9
Alternative investments measured at net asset value ⁽¹⁾	—		—		—		61
Real estate measured at net asset value⁽¹⁾	—		—		—		67
Cash and cash equivalents	—		47		—		47
Total assets at fair value	$	103	$	56	$	—	$	743


⁽¹⁾	In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

Changes in Level 3, Pension Plan Investments

mitments.

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, 2015 (in millions):



U.S. Plans	2015
	Fair Value at October 1, 2014		Return on Plan Assets: Attributable to Assets Held at September 30, 2015		Purchases		Settlements			Net Transfers Into (Out of) Level 3		Fair Value at September 30, 2015
Asset Category
Private equity	$	15	$	—	$	—	$	—		$	—	$	15
Partnerships –
Fixed income	1		—		—		—			—		1
Alternatives –
Partnerships	58		19		8		(1		)	—		84
Total Level 3 fair value	$	74	$	19	$	8	$	(1	)	$	—	$	100

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	$	5	$	—	$	10	$	—	$	—	$	15
Partnerships –
Fixed income	1		—		—		—		—		1
Alternatives –
Partnerships	49		9		—		—		—		58
Total Level 3 fair value	$	55	$	9	$	10	$	—	$	—	$	74

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 2016	$	5	$	—	$	5
Expected benefit payments:
Fiscal 2016	79		24		103
Fiscal 2017	75		25		100
Fiscal 2018	74		26		100
Fiscal 2019	72		27		99
Fiscal 2020	71		27		98
Fiscal 2021-2025	337		150		487