Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Sep. 30, 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 September 30,
Commodity	2023	2022
Copper	2,812	3,629
Aluminum	5,976	6,758

Schedule of Interest Rate Derivatives

The following table summarizes forward-starting interest rate swaps and the related anticipated note issuances (in millions):

	Year Ended September 30,
	2023		2022
US dollar denominated
Forward-starting interest swaps	$	600	$	300
Anticipated note issuance	800		400
Euro denominated
Forward-starting interest swap	€	400	€	200
Anticipated note issuance	800		600

Schedule of Notional Amounts of Outstanding Derivative Positions

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

	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
US dollar vs. Yen cross-currency interest rate swap designated as a net investment hedge in Japan	¥	14	¥	—

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):

	Designated  as Hedging Instruments				Not Designated as Hedging Instruments
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Other current assets
Foreign currency exchange derivatives	$	16	$	30	$	13	$	24
Interest rate swaps	22		—		—		—
Other noncurrent assets
Cross-currency interest rate swap	5		—		—		—
Total assets	$	43	$	30	$	13	$	24
Other current liabilities
Foreign currency exchange derivatives	$	20	$	24	$	5	$	27
Commodity derivatives	2		10		—		—
Long-term debt
Foreign currency denominated debt	3,253		3,077		—		—
Total liabilities	$	3,275	$	3,111	$	5	$	27

Derivative Assets and Liabilities, Eligible for Offsetting

The gross and net amounts of derivative assets and liabilities were as follows (in millions):

	Fair Value of Assets				Fair Value of Liabilities
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Gross amount recognized	$	56	$	54	$	3,280	$	3,138
Gross amount eligible for offsetting	(19)		(42)		(19)		(42)
Net amount	$	37	$	12	$	3,261	$	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 Cash Flow Hedging Relationships	Year Ended September 30,
	2023		2022		2021
Foreign currency exchange derivatives	$	(13)	$	26	$	15
Commodity derivatives	1		(21)		4
Interest rate swaps	27		16		(21)
Total	$	15	$	21	$	(2)

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 Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from AOCI into Income	Year Ended September 30,
		2023		2022		2021
Foreign currency exchange derivatives	Cost of sales	$	(4)	$	25	$	11
Commodity derivatives	Cost of sales	(8)		(7)		3
Interest rate swaps	Net financing charges	—		(2)		—
Total		$	(12)	$	16	$	14

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	Location of Gain (Loss) Recognized in Income on Derivative	Year Ended September 30,
		2023		2022		2021
Foreign currency exchange derivatives	Cost of sales	$	(16)	$	10	$	(6)
Foreign currency exchange derivatives	Net financing charges	(103)		85		174
Foreign currency exchange derivatives	Selling, general and administrative	—		—		(2)
Foreign currency exchange derivatives	Income tax provision	—		—		(1)
Interest rate swaps	Net financing charges	1		—		—
Equity swap	Selling, general and administrative	—		(5)		28
Total		$	(118)	$	90	$	193