Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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, 2023	September 30, 2022
Copper	3,810	3,629
Aluminum	9,722	6,758

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table summarizes net investment hedges (in billions):

	March 31,		September 30,
	2023		2022
Euro-denominated bonds designated as net investment hedges in Europe	€	2.9	€	2.9
Yen-denominated debt designated as a net investment hedge in Japan	¥	30	¥	30

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,
	2023		2022		2023		2022
Other current assets
Foreign currency exchange derivatives	$	23	$	30	$	5	$	24
Interest rate swaps	5		—		—		—
Commodity derivatives	3		—		—		—
Total assets	$	31	$	30	$	5	$	24
Other current liabilities
Foreign currency exchange derivatives	$	36	$	24	$	12	$	27
Commodity derivatives	1		10		—		—
Long-term debt
Foreign currency denominated debt	3,406		3,077		—		—
Total liabilities	$	3,443	$	3,111	$	12	$	27

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,
	2023		2022		2023		2022
Gross amount recognized	$	36	$	54	$	3,455	$	3,138
Gross amount eligible for offsetting	(16)		(42)		(16)		(42)
Net amount	$	20	$	12	$	3,439	$	3,096

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 (in millions):    

Derivatives in ASC 815 Cash Flow  Hedging Relationships	Three Months Ended March 31,				Six Months Ended March 31,
	2023		2022		2023		2022
Foreign currency exchange derivatives	$	9	$	10	$	(12)	$	23
Interest rate swaps	5		—		5		—
Commodity derivatives	3		6		7		4
Total	$	17	$	16	$	—	$	27

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 (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,
		2023		2022		2023		2022
Foreign currency exchange derivatives	Cost of sales	$	(5)	$	6	$	4	$	11
Commodity derivatives	Cost of sales	(2)		(1)		(8)		(5)
Interest rate swaps	Net financing charges	—		—		—		(1)
Total		$	(7)	$	5	$	(4)	$	5

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 (in millions):

Derivatives Not Designated as Hedging Instruments under ASC 815	Location of Gain Recognized in Income on Derivative	Three Months Ended March 31,				Six Months Ended March 31,
		2023		2022		2023		2022
Foreign currency exchange derivatives	Cost of sales	$	(6)	$	(3)	$	(8)	$	7
Foreign currency exchange derivatives	Net financing charges	15		1		(64)		88
Equity swap	Selling, general and administrative	—		(6)		—		(1)
Total		$	9	$	(8)	$	(72)	$	94