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Pension and Post Retirement Plans
 12 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]  
Pension and Post Retirement Plans RETIREMENT PLANS
Retirement plans expense includes the following components:
U.S. PlansNon-U.S. Plans
2018 2019 2020 2018 2019 2020 
Defined benefit plans:
     Service cost (benefits earned during the period)$52 47 57 24 24 30 
     Interest cost141 155 125 39 38 30 
     Expected return on plan assets(283)(281)(268)(67)(68)(72)
     Net amortization and other129 81 148 14 6 17 
       Net periodic pension expense39 2 62 10 — 5 
Defined contribution plans132 125 112 52 56 56 
             Total retirement plans expense$171 127 174 62 56 61 

Net periodic pension expense increased in 2020 primarily due to higher amortization expense. For defined contribution plans, the Company makes cash contributions based on plan requirements, which are expensed as incurred.

The Company's principal U.S. defined benefit plan is closed to employees hired after January 1, 2016 while shorter-tenured employees ceased accruing benefits effective October 1, 2016.
Details of the changes in the actuarial present value of the projected benefit obligation and the fair value of plan assets for defined benefit pension plans follow:
U.S. PlansNon-U.S. Plans
2019 2020 2019 2020 
Projected benefit obligation, beginning$3,957 4,410 1,442 1,584 
     Service cost47 57 24 30 
     Interest cost155 125 38 30 
     Actuarial loss608 260 216 3 
     Benefits paid(206)(202)(36)(37)
     Settlements(152)(111)(41)(46)
     Foreign currency translation and other1 (14)(59)69 
Projected benefit obligation, ending$4,410 4,525 1,584 1,633 
Fair value of plan assets, beginning$4,233 4,208 1,243 1,284 
     Actual return on plan assets316 466 135 58 
     Employer contributions16 20 44 46 
     Benefits paid(206)(202)(36)(37)
     Settlements(152)(111)(41)(46)
     Foreign currency translation and other1 2 (61)62 
Fair value of plan assets, ending$4,208 4,383 1,284 1,367 
     Net amount recognized in the balance sheet $(202)(142)(300)(266)
Location of net amount recognized in the balance sheet:
Noncurrent asset$67 140 97 125 
Current liability (11)(11)(14)(15)
Noncurrent liability(258)(271)(383)(376)
     Net amount recognized in the balance sheet $(202)(142)(300)(266)
Pretax accumulated other comprehensive loss$(1,040)(937)(307)(316)

Approximately $159 of the $1,253 of pretax losses deferred in accumulated other comprehensive income (loss) at September 30, 2020 will be amortized to expense in 2021. As of September 30, 2020, U.S. pension plans were underfunded by $142 in total, including unfunded plans totaling $223. The non-U.S. plans were underfunded by $266, including unfunded plans totaling $319.

As of the September 30, 2020 and 2019 measurement dates, the plans' total accumulated benefit obligation was $5,859 and $5,682, respectively. The total projected benefit obligation, accumulated benefit obligation and fair value of plan assets for individual plans with accumulated benefit obligations in excess of plan assets were $1,153, $1,034 and $492, respectively, for 2020, and $1,113, $991 and $456, respectively, for 2019.

Future benefit payments by U.S. plans are estimated to be $212 in 2021, $219 in 2022, $225 in 2023, $231 in 2024, $235 in 2025 and $1,219 in total over the five years 2026 through 2030. Based on foreign currency exchange rates as of September 30, 2020, future benefit payments by non-U.S. plans are estimated to be $72 in 2021, $72 in 2022, $72 in 2023, $78 in 2024, $79 in 2025 and $441 in total over the five years 2026 through 2030. The Company expects to contribute approximately $50 to its retirement plans in 2021.
The weighted-average assumptions used in the valuation of pension benefits follow:
U.S. PlansNon-U.S. Plans
2018 2019 2020 2018 2019 2020 
Net pension expense
Discount rate used to determine service cost3.95 %4.33 %3.40 %2.6 %2.7 %1.9 %
Discount rate used to determine interest cost3.25 %3.98 %2.87 %2.6 %2.7 %1.9 %
Expected return on plan assets7.00 %7.00 %6.75 %5.7 %6.1 %5.8 %
Rate of compensation increase3.25 %3.25 %3.25 %3.4 %3.5 %3.7 %
Benefit obligations
Discount rate4.26 %3.22 %2.81 %2.7 %1.9 %1.9 %
Rate of compensation increase3.25 %3.25 %3.25 %3.5 %3.7 %3.6 %

The discount rate for the U.S. retirement plans was 2.81 percent as of September 30, 2020. An actuarially developed, company-specific yield curve is used to determine the discount rate. To determine the service and interest cost components of pension expense for its U.S. retirement plans, the Company applies the specific spot rates along the yield curve, rather than the single weighted-average rate, to the projected cash flows to provide more precise measurement of these costs. The expected return on plan assets assumption is determined by reviewing the investment returns of the plans for the past 10 years plus longer-term historical returns of an asset mix approximating the Company's asset allocation targets, and periodically comparing these returns to expectations of investment advisors and actuaries to determine whether long-term future returns are expected to differ significantly from the past.

The Company's asset allocations at September 30, 2020 and 2019, and weighted-average target allocations follow:
U.S. PlansNon-U.S. Plans
2019 2020 Target2019 2020 Target
Equity securities53 %49 %45-55%42 %41 %40-50%
Debt securities46 45 40-5047 48 45-55
Other1 6 0-1011 11 5-15
     Total100 %100 %100%100 %100 %100%

The primary objective for the investment of pension assets is to secure participant retirement benefits by earning a reasonable rate of return. Plan assets are invested consistent with the provisions of the prudence and diversification rules of ERISA and with a long-term investment horizon. The Company continuously monitors the value of assets by class and routinely rebalances to remain within target allocations. The equity strategy is to minimize concentrations of risk by investing primarily in a mix of companies that are diversified across geographies, market capitalization, style, sectors and industries worldwide. The approach for bonds emphasizes investment-grade corporate and government debt with maturities matching a portion of the longer duration pension liabilities. The bonds strategy also includes a high-yield element which is generally shorter in duration. For diversification, a small portion of U.S. plan assets is allocated to private equity partnerships and real asset fund investments, providing opportunities for above market returns. Leveraging techniques are not used and the use of derivatives in any fund is limited and inconsequential.

The fair values of defined benefit pension assets as of September 30, organized by asset class and by the fair value hierarchy of ASC 820, Fair Value Measurement, follow. Investments valued based on the net asset value (NAV) of fund units held, as derived from the fair value of the underlying assets, are excluded from the fair value hierarchy.
Level 1Level 2Level 3Measured at NAVTotal%
2020
U.S. equities$785 10 — 536 1,331 23 %
International equities513 16 — 635 1,164 20 %
Emerging market equities— — — 237 237 4 %
Corporate bonds— 1,202 — 446 1,648 29 %
Government bonds— 450 — 531 981 17 %
Other4 8 133 244 389 7 %
     Total$1,302 1,686 133 2,629 5,750 100 %
2019
U.S. equities$789 5 386 284 1,464 27 %
International equities459 15 — 615 1,089 20 %
Emerging market equities— — — 213 213 4 %
Corporate bonds— 1,008 — 464 1,472 27 %
Government bonds— 512 — 540 1,052 19 %
Other1 8 129 64 202 3 %
     Total$1,249 1,548 515 2,180 5,492 100 %

Asset Classes
U.S. equities reflect companies domiciled in the U.S., including multinational companies. International equities are comprised of companies domiciled in developed nations outside the U.S. Emerging market equities are comprised of companies domiciled in portions of Asia, Eastern Europe and Latin America. Corporate bonds represent investment-grade debt of issuers primarily from the U.S. Government bonds include investment-grade instruments issued by federal, state and local governments, primarily in the U.S. Other includes cash, interests in mixed asset funds investing in commodities, natural resources, agriculture, real estate and infrastructure funds, life insurance contracts (U.S.), and shares in certain general investment funds of financial institutions or insurance arrangements (non-U.S.) that typically ensure no market losses or provide for a small minimum return guarantee.

Fair Value Hierarchy Categories
Valuations of Level 1 assets for all classes are based on quoted closing market prices from the principal exchanges where the individual securities are traded. Cash is valued at cost, which approximates fair value. Debt securities categorized as Level 2 assets are generally valued based on independent broker/dealer bids or by comparison to other debt securities having similar durations, yields and credit ratings. Valuation techniques and inputs for these assets include discounted cash flow analysis, earnings multiple approaches, recent transactions, transfer restrictions, prevailing discount rates, volatilities, credit ratings and other factors. In the Other class, interests in mixed asset funds are Level 2, and U.S. life insurance contracts and non-U.S. general fund investments and insurance arrangements are Level 3. Investments measured at NAV are primarily nonexchange-traded commingled or collective funds where the underlying securities have observable prices available from active markets and typically provide liquidity daily or within a few days. The NAV category also includes fund investments in private equities, real estate and infrastructure where the fair value of the underlying assets is determined by the investment manager. Total unfunded commitments for the private equity funds were approximately $240 at September 30, 2020. These investments cannot be redeemed, but instead the funds will make distributions through liquidation of the underlying assets, which is expected to occur over approximately the next 10 years. The real estate and infrastructure funds typically offer quarterly redemption.

Postretirement Plans
The Company also sponsors unfunded postretirement benefit plans (primarily health care) for certain U.S. retirees and their dependents. The Company’s principal U.S. postretirement plan has been frozen to new employees since 1993. The postretirement benefit liability for all plans was $135 and $147 as of September 30, 2020 and 2019, respectively, and included deferred actuarial gains in accumulated other comprehensive income of $106 and $118, respectively. Service and interest costs are negligible and more than offset by the amortization of deferred actuarial gains, which resulted in net postretirement income of $12 for each of the last three years. Benefits paid were $12
and $13 for 2020 and 2019, respectively, and the Company estimates that future health care benefit payments will be approximately $12 per year for 2021 through 2025, and $42 in total over the five years 2026 through 2030