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FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of the impact of derivatives 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)
 
2017
 
2016
 
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Amount of gain (loss) recognized in AOCL
(effective portion)
AOCL
 
$
(1
)
 
$
(3
)
 
$
3

Amount of gain (loss) reclassified from AOCL
into income (effective portion)
Cost of Sales
 
1

 
(4
)
 
6

Derivatives not designated as hedging instruments:
Amount of gain (loss) recognized in income
Cost of Sales
 
1

 
(1
)
 
2

Derivatives not designated as hedging instruments:
Amount of gain (loss) recognized in income
Other Income (expense)
 
—

 
(1
)
 
2
Summary of fair value of financial instruments
Fair values of financial instruments are summarized as follows (in millions): 
 
September 30,
2017
 
September 30,
2016
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
Cash and cash equivalents
$
88

 
$
88

 
$
160

 
$
160

Short-term debt
288

 
329

 
14

 
14

Long-term debt
750

 
859

 
982

 
1,051

Foreign exchange forward contracts (other assets)
—

 
—

 
1

 
1

Foreign exchange forward contracts (other liabilities)
3

 
3

 
2

 
2

Short-term foreign currency option contracts (other assets)
2

 
2

 
—

 
—

Long-term foreign currency option contracts (other assets)
1

 
1

 
2

 
2
Schedule of offsetting of derivative assets and liabilities
The following table reflects the offsetting of derivative assets and liabilities (in millions):

 
September 30, 2017
 
September 30, 2016
 
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

Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contract
3

 
—

 
3

 
2

 
—

 
2
Fair value of financial instruments by the valuation hierarchy
Fair value of financial instruments by the valuation hierarchy at September 30, 2017 is as follows (in millions):
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents
$
88

 
$
—

 
$
—

Short-term debt
—

 
325

 
4

Long-term debt
—

 
851

 
8

Foreign exchange forward contracts (asset)
—

 
—

 
—

Foreign exchange forward contracts (liability)
—

 
3

 
—

Short-term foreign currency option contracts (asset)
—

 
—

 
2

Long-term foreign currency option contracts (asset)
—

 
—

 
1



Fair value of financial instruments by the valuation hierarchy at September 30, 2016 is as follows (in millions):
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents
$
160

 
$
—

 
$
—

Short-term debt
—

 
—

 
14

Long-term debt
—

 
1,040

 
11

Foreign exchange forward contracts (asset)
—

 
1

 
—

Foreign exchange forward contracts (liability)
—

 
2

 
—

Short-term foreign currency option contracts (asset)
—

 
—

 
—

Long-term foreign currency option contracts (asset)
—

 
—

 
2
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, 2017 and September 30, 2016, respectively. No transfers of assets between any of the Levels occurred during these periods.

Twelve months ended September 30, 2017 (in millions)
 
Short-term foreign currency option contracts (asset)
 
Long-term foreign currency option contracts (asset)
 
Total
Fair Value as of September 30, 2016
 
$
—

 
$
2

 
$
2

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

 
—

 
—

Included in cost of sales
 
—

 
2

 
2

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

 
—

 
—

Included in cost of sales
 
—

 
—

 
—

Purchases, issuances, sales and settlements:
 
 
 
 
 
 
Purchases
 
1

 
1

 
2

Settlements
 
(2
)
 
(1
)
 
(3
)
Transfer in and / or out of Level 3 (1)
 
—

 
—

 
—

Reclass between short-term and long-term
 
3

 
(3
)
 
—

Fair Value as of September 30, 2017
 
$
2

 
$
1

 
$
3

(1) Transfers as of the last day of the reporting period
Twelve months ended September 30, 2016 (in millions)
 
Short-term foreign currency option contracts (asset)
 
Long-term foreign currency option contracts (asset)
 
Total
Fair Value as of September 30, 2015
 
$
1

 
$
1

 
$
2

Total unrealized gains (losses):
 
 
 
 
 
 
Included in other income, net
 
(2
)
 
—

 
(2
)
Included in cost of sales
 
—

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

 
—

 
—

Included in cost of sales
 
—

 
—

 
—

Purchases, issuances, sales and settlements:
 
 
 
 
 
 
Purchases
 
1

 
—

 
1

Settlements
 
—

 
2

 
2

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

 
—

 
—

Reclass between short-term and long-term
 
—

 
—

 
—

Fair Value as of September 30, 2016
 
$
—

 
$
2

 
$
2

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