Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2023

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 June 30, 2023		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	$	48	$	—	$	48	$	—





Other noncurrent assets

Deferred compensation plan assets	46		46		—		—
Exchange traded funds (fixed income)(1)	80		80		—		—
Exchange traded funds (equity)(1)	160		160		—		—



Total assets	$	334	$	286	$	48	$	—
Other current liabilities
Foreign currency exchange derivatives	$	39	$	—	$	39	$	—

Commodity derivatives	4		—		4		—
Contingent earn-out liabilities	35		—		—		35
Other noncurrent liabilities
Contingent earn-out liabilities	22		—		—		22
Total liabilities	$	100	$	—	$	43	$	57


	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	36
Payments	(4)
Reduction for change in estimates	(36)
Currency translation	1
Balance at June 30, 2023	$	57

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

The following table presents the portion of unrealized gains (losses) recognized in the consolidated statements of income that relate to equity securities still held at June 30, 2023 and 2022 (in millions):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Deferred compensation plan assets	$	1	$	(7)	$	6	$	(7)
Investments in exchange traded funds	11		(61)		34		(67)