Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2022

Assets and Liabilities Measured at Fair Value

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value (in millions):


	Fair Value Measurements Using:
	Total as of December 31, 2022		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Other current assets
Foreign currency exchange derivatives	$	26	$	—	$	26	$	—
Exchange traded funds (fixed income)1	23		23		—		—

Commodity derivatives	2		—		2		—


Other noncurrent assets

Deferred compensation plan assets	49		49		—		—
Exchange traded funds (fixed income)1	82		82		—		—
Exchange traded funds (equity)1	139		139		—		—



Total assets	$	321	$	293	$	28	$	—
Other current liabilities
Foreign currency exchange derivatives	$	64	$	—	$	64	$	—

Commodity derivatives	2		—		2		—
Contingent earn-out liabilities	49		—		—		49
Other noncurrent liabilities
Contingent earn-out liabilities	34		—		—		34
Total liabilities	$	149	$	—	$	66	$	83


	Fair Value Measurements Using:
	Total as of September 30, 2022		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Other current assets
Foreign currency exchange derivatives	$	54	$	—	$	54	$	—

Exchange traded funds (fixed income)1	22		22		—		—


Other noncurrent assets

Deferred compensation plan assets	46		46		—		—
Exchange traded funds (fixed income)1	86		86		—		—
Exchange traded funds (equity)1	131		131		—		—



Total assets	$	339	$	285	$	54	$	—
Other current liabilities
Foreign currency exchange derivatives	$	51	$	—	$	51	$	—
Commodity derivatives	10		—		10		—
Contingent earn-out liabilities	30		—		—		30
Other noncurrent liabilities
Contingent earn-out liabilities	30		—		—		30
Total liabilities	$	121	$	—	$	61	$	60

1 Classified as restricted investments for payment of asbestos liabilities. See Note 21, "Commitments and Contingencies," of the notes to the consolidated financial statements for further details.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes the changes in contingent earn-out liabilities, which are valued using significant unobservable inputs (Level 3) (in millions):



Balance at September 30, 2022	$	60
Acquisitions	25
Payments	(3)

Currency translation	1
Balance at December 31, 2022	$	83

Debt Securities, Trading, and Equity Securities, FV-NI

The following table presents the portion of unrealized gains recognized in the consolidated statements of income that relate to equity securities still held at December 31, 2022 and 2021 (in millions):


	Three Months Ended December 31,
	2022		2021
Deferred compensation plan assets	$	3	$	3
Investments in exchange traded funds	11		14