Fair Value Measurements (Tables)

12 Months Ended

Sep. 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 September 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	$	29	$	—	$	29	$	—
Interest rate swaps	22		—		22		—


Other noncurrent assets
Cross-currency interest rate swap	5		—		5		—
Deferred compensation plan assets	45		45		—		—
Exchange traded funds (fixed income)1	76		76		—		—
Exchange traded funds (equity)1	155		155		—		—

Total assets	$	332	$	276	$	56	$	—
Other current liabilities
Foreign currency exchange derivatives	$	25	$	—	$	25	$	—

Commodity derivatives	2		—		2		—
Contingent earn-out liabilities	48		—		—		48
Other noncurrent liabilities

Contingent earn-out liabilities	76		—		—		76
Total liabilities	$	151	$	—	$	27	$	124


	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

1Classified as restricted investments for payment of asbestos liabilities. Refer to Note 21, "Commitments and Contingencies" of the notes to 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	112
Payments	(10)
Reduction for change in estimates	(39)
Currency translation	1
Balance at September 30, 2023	$	124

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 September 30, 2023 and 2022 (in millions):


	Year Ended September 30,
	2023		2022
Deferred compensation plan assets	$	5	$	(10)
Investments in exchange traded funds	24		(55)

Fair Value of Long-Term Debt

The fair value of long-term debt at September 30, 2023 and 2022 was as follows (in billions):


	Year Ended September 30,
	2023		2022
Public debt	$	7.1	$	7.1
Other long-term debt	0.4		0.2
Total fair value of long-term debt	$	7.5	$	7.3