Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Dec. 31, 2021

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	December 31, 2021	September 30, 2021
Copper	3,314	2,656
Aluminum	7,193	5,159

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
	December 31,		September 30,		December 31,		September 30,
	2021		2021		2021		2021
Other current assets
Foreign currency exchange derivatives	$	27	$	15	$	17	$	17
Commodity derivatives	3		2		—		—
Other noncurrent assets
Equity swap	—		—		28		23
Total assets	$	30	$	17	$	45	$	40
Other current liabilities
Foreign currency exchange derivatives	$	12	$	11	$	13	$	6
Commodity derivatives	1		1		—		—
Long-term debt
Foreign currency denominated debt	2,845		2,918		—		—
Total liabilities	$	2,858	$	2,930	$	13	$	6

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
	December 31,		September 30,		December 31,		September 30,
	2021		2021		2021		2021
Gross amount recognized	$	75	$	57	$	2,871	$	2,936
Gross amount eligible for offsetting	(17)		(16)		(17)		(16)
Net amount	$	58	$	41	$	2,854	$	2,920

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 months ended December 31, 2021 and 2020 (in millions):    

Derivatives in ASC 815 Cash Flow  Hedging Relationships	Three Months Ended December 31,
	2021		2020
Foreign currency exchange derivatives	$	13	$	3
Commodity derivatives	(2)		1
Total	$	11	$	4

The following table presents 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 months ended December 31, 2021 and 2020 (in millions):

Derivatives in ASC 815 Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from AOCI into Income	Three Months Ended December 31,
		2021		2020
Foreign currency exchange derivatives	Cost of sales	$	5	$	2
Commodity derivatives	Cost of sales	(4)		(1)
Interest rate swaps	Net financing charges	(1)		—
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 months ended December 31, 2021 and 2020 (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 December 31,
		2021		2020
Foreign currency exchange derivatives	Cost of sales	$	10	$	6
Foreign currency exchange derivatives	Selling, general and administrative	—		(2)
Foreign currency exchange derivatives	Net financing charges	87		(41)
Equity swap	Selling, general and administrative	5		6
Total		$	102	$	(31)