Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Mar. 31, 2018

Derivative Instruments [Line Items]

Outstanding Commodity Hedge Contracts

The Company had the following outstanding contracts to hedge forecasted commodity purchases (in metric tons):

	Volume Outstanding as of
Commodity	March 31, 2018	September 30, 2017
Copper	3,901	1,962
Polypropylene	16,561	19,563
Lead	6,500	24,705
Aluminum	4,525	2,169
Tin	2,015	1,715

Location and Fair Values of Derivative Instruments and Hedging Activities

The following table presents the location and fair values of derivative instruments and hedging activities included in the Company’s consolidated statements of financial position (in millions):

	Derivatives and Hedging Activities Designated as Hedging Instruments under ASC 815				Derivatives and Hedging Activities Not Designated as Hedging Instruments under ASC 815
	March 31,		September 30,		March 31,		September 30,
	2018		2017		2018		2017
Other current assets
Foreign currency exchange derivatives	$	26	$	27	$	—	$	—
Commodity derivatives	3		9		—		—
Other noncurrent assets
Equity swap	—		—		63		55
Total assets	$	29	$	36	$	63	$	55
Other current liabilities
Foreign currency exchange derivatives	$	15	$	21	$	22	$	25
Commodity derivatives	2		1		—		—
Long-term debt
Foreign currency denominated debt	3,081		2,058		—		—
Total liabilities	$	3,098	$	2,080	$	22	$	25

Offsetting Assets and Liabilities

The gross and net amounts of derivative assets and liabilities were as follows (in millions):

	Fair Value of Assets						Fair Value of Liabilities
	March 31,			September 30,			March 31,			September 30,
	2018			2017			2018			2017
Gross amount recognized	$	92		$	91		$	3,120		$	2,105
Gross amount eligible for offsetting	(20		)	(16		)	(20		)	(16		)
Net amount	$	72		$	75		$	3,100		$	2,089

Location and Amount of Gains and Losses Gross of Tax on Derivative Instruments and Related Hedge Items

The following table presents the pre-tax gains (losses) recorded in other comprehensive income (loss) related to cash flow hedges for the three and six months ended March 31, 2018 and 2017 (in millions):

Derivatives in ASC 815 Cash Flow  Hedging Relationships	Three Months Ended March 31,						Six Months Ended March 31,
	2018			2017			2018		2017
Foreign currency exchange derivatives	$	(5	)	$	(2	)	$	1	$	6
Commodity derivatives	(1		)	3			2		5
Total	$	(6	)	$	1		$	3	$	11

The following tables present the location and amount of the pre-tax gains (losses) on cash flow hedges reclassified from AOCI into the Company’s consolidated statements of income for the three and six months ended March 31, 2018 and 2017 (in millions):

Derivatives in ASC 815 Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from AOCI into Income	Three Months Ended March 31,					Six Months Ended March 31,
		2018			2017		2018		2017
Foreign currency exchange derivatives	Cost of sales	$	(2	)	$	8	$	—	$	16
Commodity derivatives	Cost of sales	4			3		9		4
Total		$	2		$	11	$	9	$	20

The following table presents the location and amount of pre-tax gains (losses) on fair value hedges recognized in the Company’s consolidated statements of income for the three and six months ended March 31, 2018 and 2017 (in millions):

Derivatives in ASC 815 Fair Value Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivative	Three Months Ended March 31,				Six Months Ended March 31,
		2018		2017		2018		2017
Interest rate swap	Net financing charges	$	—	$	—	$	—	$	(1	)
Fixed rate debt swapped to floating	Net financing charges	—		—		—		2
Total		$	—	$	—	$	—	$	1

The following table presents the location and amount of pre-tax gains (losses) on derivatives not designated as hedging instruments recognized in the Company’s consolidated statements of income for the three and six months ended March 31, 2018 and 2017 (in millions):

		Amount of Gain (Loss) Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments under ASC 815	Location of Gain (Loss) Recognized in Income on Derivative	Three Months Ended March 31,					Six Months Ended March 31,
		2018			2017		2018			2017
Foreign currency exchange derivatives	Cost of sales	$	(4	)	$	2	$	(2	)	$	3
Foreign currency exchange derivatives	Net financing charges	(3		)	5		1			9
Foreign currency exchange derivatives	Income tax provision	—			—		2			(3		)
Foreign currency exchange derivatives	Income (loss) from discontinued operations	—			—		—			5
Equity swap	Selling, general and administrative	(5		)	—		(7		)	—
Total		$	(12	)	$	7	$	(6	)	$	14