Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2017

Defined Benefit Plan Disclosure [Line Items]

The Company’s plan assets at September 30, 2017 and 2016, by asset category, are as follows (in millions):



	Fair Value Measurements Using:
Asset Category	Total as of September 30, 2017		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

U.S. Pension

Cash and Cash Equivalents	$	70	$	2	$	68	$	—

Equity Securities
Large-Cap	652		375		277		—
Small-Cap	281		281		—		—
International - Developed	649		569		80		—
International - Emerging	51		24		27		—

Fixed Income Securities
Government	270		243		27		—
Corporate/Other	917		851		66		—

Total Investments in the Fair Value Hierarchy	2,890		$	2,345	$	545	$	—

Investments Measured at Net Asset Value, as Practical Expedient:
Real Estate Investments Measured at Net Asset Value*	275

Total Plan Assets	$	3,165

Non-U.S. Pension

Cash and Cash Equivalents	$	55	$	45	$	10	$	—

Equity Securities
Large-Cap	242		18		224		—
Mid-Cap	2		2		—		—
International - Developed	517		58		459		—
International - Emerging	13		—		13		—

Fixed Income Securities
Government	618		74		544		—
Corporate/Other	569		292		277		—

Hedge Fund	112		—		112		—

Real Estate	24		24		—		—

Total Investments in the Fair Value Hierarchy	2,152		$	513	$	1,639	$	—

Investments Measured at Net Asset Value, as Practical Expedient:
Real Estate Investments Measured at Net Asset Value*	29

Total Plan Assets	$	2,181

Postretirement

Cash and Cash Equivalents	$	3	$	—	$	3	$	—

Equity Securities
Large-Cap	28		—		28		—
Small-Cap	9		—		9		—
International - Developed	21		—		21		—
International - Emerging	11		—		11		—

Fixed Income Securities
Government	21		—		21		—
Corporate/Other	59		—		59		—

Commodities	15		—		15		—

Real Estate	10		—		10		—

Total Plan Assets	$	177	$	—	$	177	$	—



	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 and Cash Equivalents	$	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		—

Total Investments in the Fair Value Hierarchy	2,947		$	2,268	$	679	$	—

Investments Measured at Net Asset Value, as Practical Expedient:
Real Estate Investments Measured at Net Asset Value*	346

Total Plan Assets	$	3,293

Non-U.S. Pension

Cash and Cash Equivalents	$	90	$	59	$	31	$	—

Equity Securities
Large-Cap	317		22		295		—
International - Developed	453		52		401		—
International - Emerging	19		—		19		—

Fixed Income Securities
Government	864		164		700		—
Corporate/Other	561		300		261		—

Hedge Fund	169		—		169		—

Real Estate	11		11		—		—

Total Investments in the Fair Value Hierarchy	2,484		$	608	$	1,876	$	—

Investments Measured at Net Asset Value, as Practical Expedient:
Real Estate Investments Measured at Net Asset Value*	52

Total Plan Assets	$	2,536

Postretirement

Cash and Cash Equivalents	$	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 Plan Assets	$	196	$	—	$	196	$	—

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,	2017			2016			2017			2016			2017			2016

Accumulated Benefit Obligation	$	3,382		$	4,118		$	2,618		$	3,359		$	—		$	—

Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year	4,169			3,022			3,522			1,447			242			211
Service cost	18			16			32			30			2			2
Interest cost	113			104			48			44			6			6
Plan participant contributions	—			—			3			1			4			6
Benefit obligations assumed in Tyco acquisition	—			974			—			1,635			—			30
Other acquisitions	—			—			—			279			—			2
Adient spin-off impact	(18		)	—			(619		)	—			(17		)	—
Actuarial (gain) loss	(131		)	355			(194		)	295			(1		)	5
Benefits and settlements paid	(732		)	(301		)	(116		)	(116		)	(25		)	(22		)
Estimated subsidy received	—			—			—			—			2			1
Curtailment	—			—			(19		)	—			—			—
Other	—			(1		)	(2		)	(1		)	—			1
Currency translation adjustment	—			—			66			(92		)	1			—

Projected benefit obligation at end of year	$	3,419		$	4,169		$	2,721		$	3,522		$	214		$	242

Change in Plan Assets
Fair value of plan assets at beginning of year	$	3,293		$	2,606		$	2,536		$	1,177		$	196		$	194
Actual return on plan assets	334			267			94			113			14			17
Plan assets acquired in Tyco acquisition	—			705			—			1,149			—			—
Other acquisitions	—			—			—			180			—			—
Adient spin-off impact	(16		)	—			(440		)	—			(13		)	—
Employer and employee contributions	286			16			59			121			5			7
Benefits paid	(394		)	(124		)	(86		)	(59		)	(25		)	(22		)
Settlement payments	(338		)	(177		)	(30		)	(57		)	—			—
Other	—			—			(2		)	—			—			—
Currency translation adjustment	—			—			50			(88		)	—			—

Fair value of plan assets at end of year	$	3,165		$	3,293		$	2,181		$	2,536		$	177		$	196

Funded status	$	(254	)	$	(876	)	$	(540	)	$	(986	)	$	(37	)	$	(46	)

Amounts recognized in the statement of financial position consist of:
Prepaid benefit cost - continuing operations	$	46		$	21		$	27		$	25		$	64		$	53
Prepaid benefit cost - discontinued operations	—			1			—			7			—			—
Accrued benefit liability - continuing operations	(300		)	(896		)	(567		)	(832		)	(101		)	(95		)
Accrued benefit liability - discontinued operations	—			(2		)	—			(186		)	—			(4		)

Net amount recognized	$	(254	)	$	(876	)	$	(540	)	$	(986	)	$	(37	)	$	(46	)

Weighted Average Assumptions (1)
Discount rate (2)	3.80		%	3.70		%	2.40		%	1.90		%	3.70		%	3.30		%
Rate of compensation increase	3.20		%	3.20		%	2.90		%	2.75		%	NA			NA


(1)	Plan assets and obligations are determined based on a September 30 measurement date at September 30, 2017 and 2016.

(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. The Company has elected to utilize a full yield curve approach in the estimation of service and interest components of net periodic benefit cost (credit) for pension and other postretirement for plans that utilize a yield curve approach. The full yield curve approach applies the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.

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,	2017			2016			2015			2017			2016			2015			2017			2016			2015
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	18		$	16		$	31		$	32		$	30		$	32		$	2		$	2		$	3
Interest cost	113			104			122			48			44			57			6			6			9
Expected return on plan assets	(229		)	(191		)	(181		)	(92		)	(61		)	(71		)	(10		)	(10		)	(12		)
Net actuarial (gain) loss	(220		)	268			387			(195		)	237			14			(5		)	(2		)	21
Amortization of prior service cost (credit)	—			—			—			—			1			(1		)	—			(1		)	(1		)
Curtailment gain	—			—			—			(19		)	—			(15		)	—			—			—
Settlement (gain) loss	(16		)	11			1			(1		)	6			—			—			—			—

Net periodic benefit cost (credit)	(334		)	208			360			(227		)	257			16			(7		)	(5		)	20
Net periodic benefit (cost) credit related to discontinued operations	—			(1		)	(1		)	—			(111		)	1			—			(1		)	(1		)

Net periodic benefit cost (credit) included in continuing operations	$	(334	)	$	207		$	359		$	(227	)	$	146		$	17		$	(7	)	$	(6	)	$	19

Expense Assumptions:
Discount rate	3.70		%	4.40		%	4.35		%	1.90		%	3.10		%	3.00		%	3.30		%	3.75		%	4.35		%
Expected return on plan assets	7.50		%	7.50		%	7.50		%	4.60		%	4.50		%	4.50		%	5.60		%	5.45		%	5.75		%
Rate of compensation increase	3.20		%	3.25		%	3.25		%	2.65		%	3.30		%	2.60		%	NA			NA			NA

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

Pension Benefits

Defined Benefit Plan Disclosure [Line Items]

Projected Benefit Payments from Plans

In fiscal 2017, total employer contributions to the defined benefit pension plans were $342 million, of which $49 million were voluntary contributions made by the Company. The Company expects to contribute approximately $100 million in cash to its defined benefit pension plans in fiscal 2018. Projected benefit payments from the plans as of September 30, 2017 are estimated as follows (in millions):



2018	$	332
2019	329
2020	329
2021	330
2022	338
2023-2027	1,737

Postretirement Benefits

Defined Benefit Plan Disclosure [Line Items]

Projected Benefit Payments from Plans

In fiscal 2017, total employer contributions to the postretirement plans were $5 million. The Company expects to contribute approximately $5 million in cash to its postretirement plans in fiscal 2018. Projected benefit payments from the plans as of September 30, 2017 are estimated as follows (in millions):



2018	$	19
2019	19
2020	19
2021	19
2022	18
2023-2027	76