Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The Company had the following outstanding contracts to hedge forecasted commodity purchases (in metric tons):


	Volume Outstanding as of
Commodity	December 31, 2023	September 30, 2023

Copper	3,062	2,812
Aluminum	5,973	5,976

Schedule of Notional Amounts of Outstanding Derivative Positions

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


	December 31,		September 30,
	2023		2023
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	¥	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):


	Derivatives and Hedging Activities Designated as Hedging Instruments				Derivatives and Hedging Activities Not Designated as Hedging Instruments
	December 31,		September 30,		December 31,		September 30,
	2023		2023		2023		2023
Other current assets
Foreign currency exchange derivatives	$	14	$	16	$	—	$	13
Interest rate swaps	—		22		—		—
Commodity derivatives	1		—		—		—
Other noncurrent assets
Cross-currency interest rate swap	—		5		—		—
Total assets	$	15	$	43	$	—	$	13

Other current liabilities
Foreign currency exchange derivatives	$	31	$	20	$	30	$	5


Interest rate swaps	14		—		—		—
Commodity derivatives	—		2		—		—
Long-term debt
Foreign currency denominated debt	3,394		3,253		—		—
Total liabilities	$	3,439	$	3,275	$	30	$	5

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
	December 31,		September 30,		December 31,		September 30,
	2023		2023		2023		2023
Gross amount recognized	$	15	$	56	$	3,469	$	3,280
Gross amount eligible for offsetting	(14)		(19)		(14)		(19)
Net amount	$	1	$	37	$	3,455	$	3,261

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	Three Months Ended December 31,
	2023		2022
Foreign currency exchange derivatives	$	(13)	$	(21)
Commodity derivatives	1		4
Interest rate swaps	(35)		—

Total	$	(47)	$	(17)

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	Three Months Ended December 31,
		2023		2022
Foreign currency exchange derivatives	Cost of sales	$	(1)	$	9
Commodity derivatives	Cost of sales	(3)		(6)

Total		$	(4)	$	3

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	Three Months Ended December 31,
		2023		2022
Foreign currency exchange derivatives	Cost of sales	$	(5)	$	2

Foreign currency exchange derivatives	Net financing charges	(43)		79





Total		$	(48)	$	81