Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2016

Defined Benefit Plan Disclosure [Line Items]

The Company’s plan assets at September 30, 2016 and 2015, by asset category, are as follows (in millions):



	Fair Value Measurements Using:
Asset Category	Total as of September 30, 2016		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

U.S. Pension

Cash	$	38	$	38	$	—	$	—

Equity Securities
Large-Cap	692		499		193		—
Small-Cap	267		252		15		—
International - Developed	655		566		89		—

Fixed Income Securities
Government	345		280		65		—
Corporate/Other	950		633		317		—

Real Estate	346		—		—		346

Total	$	3,293	$	2,268	$	679	$	346

Non-U.S. Pension

Cash	$	90	$	90	$	—	$	—

Equity Securities
Large-Cap	317		152		165		—
International - Developed	453		160		293		—
International - Emerging	19		19		—		—

Fixed Income Securities
Government	864		452		412		—
Corporate/Other	561		385		176		—

Hedge Fund	169		—		169		—

Real Estate	63		11		—		52

Total	$	2,536	$	1,269	$	1,215	$	52

Postretirement

Cash	$	7	$	7	$	—	$	—

Equity Securities
Large-Cap	31		31		—		—
Small-Cap	10		10		—		—
International - Developed	23		23		—		—
International - Emerging	12		12		—		—

Fixed Income Securities
Government	23		23		—		—
Corporate/Other	65		65		—		—

Commodities	12		12		—		—

Real Estate	13		13		—		—

Total	$	196	$	196	$	—	$	—



	Fair Value Measurements Using:
Asset Category	Total as of September 30, 2015		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

U.S. Pension

Cash	$	75	$	75	$	—	$	—

Equity Securities
Large-Cap	500		500		—		—
Small-Cap	235		235		—		—
International - Developed	472		472		—		—

Fixed Income Securities
Government	248		217		31		—
Corporate/Other	753		615		138		—

Real Estate	323		—		—		323

Total	$	2,606	$	2,114	$	169	$	323

Non-U.S. Pension

Cash	$	98	$	98	$	—	$	—

Equity Securities
Large-Cap	68		68		—		—
International - Developed	104		104		—		—
International - Emerging	16		16		—		—

Fixed Income Securities
Government	441		319		122		—
Corporate/Other	220		192		28		—

Hedge Fund	172		—		172		—

Real Estate	58		7		—		51

Total	$	1,177	$	804	$	322	$	51

Postretirement

Cash	$	10	$	10	$	—	$	—

Equity Securities
Large-Cap	30		30		—		—
Small-Cap	10		10		—		—
International - Developed	22		22		—		—
International - Emerging	10		10		—		—

Fixed Income Securities
Government	22		22		—		—
Corporate/Other	67		67		—		—

Commodities	12		12		—		—

Real Estate	11		11		—		—

Total	$	194	$	194	$	—	$	—

Accumulated Benefit Obligations and Reconciliations of Changes in Projected Benefit Obligation, Changes in Plan Assets and Funded Status

The table that follows contains the ABO and reconciliations of the changes in the PBO, the changes in plan assets and the funded status (in millions):



	Pension Benefits												Postretirement Benefits
	U.S. Plans						Non-U.S. Plans						Postretirement Benefits
September 30,	2016			2015			2016			2015			2016			2015

Accumulated Benefit Obligation	$	4,118		$	2,985		$	3,359		$	1,388		$	—		$	—

Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year	3,022			2,875			1,447			1,572			211			224
Service cost	16			31			30			25			2			3
Interest cost	104			122			44			46			6			9
Plan participant contributions	—			—			1			1			6			6
Benefit obligations assumed in Tyco acquisition	974			—			1,635			—			30			—
Other acquisitions	—			—			279			—			2			—
Divestitures	—			—			—			(18		)	—			—
Actuarial loss	355			203			295			7			5			—
Benefits and settlements paid	(301		)	(209		)	(116		)	(65		)	(22		)	(24		)
Estimated subsidy received	—			—			—			—			1			1
Curtailment	—			—			—			(5		)	—			—
Other	(1		)	—			(1		)	43			1			(4		)
Currency translation adjustment	—			—			(92		)	(159		)	—			(4		)

Projected benefit obligation at end of year	$	4,169		$	3,022		$	3,522		$	1,447		$	242		$	211

Change in Plan Assets
Fair value of plan assets at beginning of year	$	2,606		$	2,504		$	1,177		$	1,201		$	194		$	219
Actual return on plan assets	267			(4		)	113			48			17			(9		)
Plan assets acquired in Tyco acquisition	705			—			1,149			—			—			—
Other acquisitions	—			—			180			—			—			—
Divestitures	—			—			—			(10		)	—			—
Employer and employee contributions	16			315			121			81			7			8
Benefits paid	(124		)	(201		)	(59		)	(55		)	(22		)	(24		)
Settlement payments	(177		)	(8		)	(57		)	(10		)	—			—
Other	—			—			—			39			—			—
Currency translation adjustment	—			—			(88		)	(117		)	—			—

Fair value of plan assets at end of year	$	3,293		$	2,606		$	2,536		$	1,177		$	196		$	194

Funded status	$	(876	)	$	(416	)	$	(986	)	$	(270	)	$	(46	)	$	(17	)

Amounts recognized in the statement of financial position consist of:
Prepaid benefit cost	$	22		$	17		$	32		$	30		$	53		$	37
Accrued benefit liability	(898		)	(433		)	(1,018		)	(300		)	(99		)	(54		)

Net amount recognized	$	(876	)	$	(416	)	$	(986	)	$	(270	)	$	(46	)	$	(17	)

Weighted Average Assumptions (1)
Discount rate (2)	3.70		%	4.40		%	1.90		%	3.15		%	3.30		%	3.75		%
Rate of compensation increase	3.20		%	3.25		%	2.75		%	3.00		%	NA			NA


(1)	Plan assets and obligations are determined based on a September 30 measurement date at September 30, 2016 and 2015.

(2)

The Company considers the expected benefit payments on a plan-by-plan basis when setting assumed discount rates. As a result, the Company uses different discount rates for each plan depending on the plan jurisdiction, the demographics of participants and the expected timing of benefit payments. For the U.S. pension and postretirement plans, the Company uses a discount rate provided by an independent third party calculated based on an appropriate mix of high quality bonds. For the non-U.S. pension and postretirement plans, the Company consistently uses the relevant country specific benchmark indices for determining the various discount rates.

At September 30, 2015, the Company changed the method used to estimate the service and interest components of net periodic benefit cost for pension and other postretirement benefits for plans that utilize a yield curve approach. This change compared to the previous method results in different service and interest components of net periodic benefit cost (credit). Historically, the Company estimated these service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. The Company elected to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The Company made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change does not affect the measurement of the total benefit obligations or annual net periodic benefit cost (credit) as the change in the service and interest costs is completely offset in the net actuarial (gain) loss reported. The change in the service and interest costs was not significant. The Company accounted for this change as a change in accounting estimate.

Amounts in Accumulated Other Comprehensive Income, Exclusive of Tax Impacts, that have not yet been Recognized as Components of Net Periodic Benefit Cost

The amounts in AOCI on the consolidated statements of financial position, exclusive of tax impacts, that have not yet been recognized as components of net periodic benefit cost at September 30, 2016 are as follows (in millions):



	Pension Benefits		Postretirement Benefits
Accumulated other comprehensive loss
Net transition asset	$	1	$	—
Net prior service cost	4		—
Total	$	5	$	—

Amounts in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Cost over Next Fiscal Year

The amounts in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year are shown below (in millions):



	Pension Benefits		Postretirement Benefits
Amortization of:
Net transition obligation	$	—	$	—
Net prior service cost	1		—
Total	$	1	$	—

Components of Net Periodic Benefit Cost

The table that follows contains the components of net periodic benefit cost (in millions):



	Pension Benefits																		Postretirement Benefits
	U.S. Plans									Non-U.S. Plans
Year ended September 30,	2016			2015			2014			2016			2015			2014			2016			2015			2014
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	16		$	31		$	70		$	30		$	32		$	38		$	2		$	3		$	5
Interest cost	104			122			138			44			57			71			6			9			12
Expected return on plan assets	(191		)	(181		)	(207		)	(61		)	(71		)	(75		)	(10		)	(12		)	(12		)
Net actuarial (gain) loss	268			387			126			237			14			172			(2		)	21			(24		)
Amortization of prior service cost (credit)	—			—			1			1			(1		)	(1		)	(1		)	(1		)	(7		)
Curtailment gain	—			—			—			—			(15		)	(2		)	—			—			—
Settlement loss	11			1			15			6			—			1			—			—			—

Net periodic benefit cost (credit)	208			360			143			257			16			204			(5		)	20			(26		)
Net periodic benefit (cost) credit related to discontinued operations	—			—			—			—			14			(38		)	—			—			—

Net periodic benefit cost (credit) included in continuing operations	$	208		$	360		$	143		$	257		$	30		$	166		$	(5	)	$	20		$	(26	)

Expense Assumptions:
Discount rate	4.40		%	4.35		%	4.90		%	3.10		%	3.00		%	3.60		%	3.75		%	4.35		%	4.90		%
Expected return on plan assets	7.50		%	7.50		%	8.00		%	4.50		%	4.50		%	4.75		%	5.45		%	5.75		%	5.80		%
Rate of compensation increase	3.25		%	3.25		%	3.30		%	3.30		%	2.60		%	2.60		%	NA			NA			NA

Summary of Changes in Fair Value of Assets Measured Using Significant Unobservable Inputs (Level 3)

The following sets forth a summary of changes in the fair value of assets measured using significant unobservable inputs (Level 3) (in millions):



	Total			Hedge Funds			Real Estate
U.S. Pension

Asset value as of September 30, 2014	$	335		$	4		$	331

Additions net of redemptions	(59		)	(3		)	(56		)
Realized gain (loss)	28			(1		)	29
Unrealized gain	19			—			19

Asset value as of September 30, 2015	$	323		$	—		$	323

Additions net of redemptions	(6		)	—			(6		)
Realized gain	13			—			13
Unrealized gain	16			—			16

Asset value as of September 30, 2016	$	346		$	—		$	346

Non-U.S. Pension

Asset value as of September 30, 2014	$	20		$	—		$	20

Additions net of redemptions	34			—			34
Unrealized loss	(3		)	—			(3		)

Asset value as of September 30, 2015	$	51		$	—		$	51

Unrealized gain	1			—			1

Asset value as of September 30, 2016	$	52		$	—		$	52

Pension Benefits

Defined Benefit Plan Disclosure [Line Items]

Projected Benefit Payments from Plans

In fiscal 2016, total employer contributions to the defined benefit pension plans were $136 million, of which $34 million were voluntary contributions made by the Company. The Company expects to contribute approximately $326 million in cash to its defined benefit pension plans in fiscal 2017 including $247 million due to change-in-control provisions triggered by the Tyco merger. Projected benefit payments from the plans as of September 30, 2016 are estimated as follows (in millions):



2017	$	569
2018	321
2019	332
2020	337
2021	344
2022-2026	1,879

Postretirement Benefits

Defined Benefit Plan Disclosure [Line Items]

Projected Benefit Payments from Plans

In fiscal 2016, total employer and employee contributions to the postretirement plans were $7 million. The Company expects to contribute approximately $4 million in cash to its postretirement plans in fiscal 2017. Projected benefit payments from the plans as of September 30, 2016 are estimated as follows (in millions):



2017	$	21
2018	21
2019	21
2020	21
2021	20
2022-2026	86