Guarantees

6 Months Ended

Mar. 31, 2023

Certain of the Company's subsidiaries at the business segment level have guaranteed the performance of third parties and provided financial guarantees for uncompleted work and financial commitments. The terms of these guarantees vary with end dates ranging from the current fiscal year through the completion of such transactions and would typically be triggered in the event of nonperformance. Performance under the guarantees, if required, would not have a material effect on the Company's financial position, results of operations or cash flows.

The Company offers warranties to its customers depending upon the specific product and terms of the customer purchase agreement. A typical warranty program requires that the Company replace defective products within a specified time period from the date of sale. The Company records an estimate for future warranty-related costs based on actual historical return rates and other known factors. Based on analysis of return rates and other factors, the Company’s warranty provisions are adjusted as necessary. The Company monitors its warranty activity and adjusts its reserve estimates when it is probable that future warranty costs will be different than those estimates.

The Company’s product warranty liability is recorded in the consolidated statements of financial position in other current liabilities if the warranty is less than one year and in other non-current liabilities if the warranty extends longer than one year.

The changes in the carrying amount of the Company’s total product warranty liability were as follows (in millions):


	Six Months Ended March 31,
	2023		2022

Balance at beginning of period	$	179	$	192
Accruals for warranties issued during the period	69		44
Settlements made (in cash or in kind) during the period	(57)		(39)
Accruals from acquisitions and divestitures	—		(1)
Changes in estimates to pre-existing warranties	2		(8)
Currency translation	4		(2)
Balance at end of period	$	197	$	186