Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 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 December 31, 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	$	14	$	—	$	14	$	—

Commodity derivatives	1		—		1		—



Other noncurrent assets

Deferred compensation plan assets	47		47		—		—
Exchange traded funds (fixed income)(1)	82		82		—		—
Exchange traded funds (equity)(1)	169		169		—		—



Total assets	$	313	$	298	$	15	$	—
Other current liabilities
Foreign currency exchange derivatives	$	61	$	—	$	61	$	—
Interest rate swaps	14		—		14		—

Contingent earn-out liabilities	55		—		—		55
Other noncurrent liabilities
Contingent earn-out liabilities	50		—		—		50
Total liabilities	$	180	$	—	$	75	$	105


	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

(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, 2023	$	124

Payments	(19)
Reduction for change in estimates	(1)
Currency translation	1
Balance at December 31, 2023	$	105

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

The following table presents the portion of unrealized gains recognized in the consolidated statements of income that relate to equity securities still held at December 31, 2023 and 2022 (in millions):


	Three Months Ended December 31,
	2023		2022
Deferred compensation plan assets	$	4	$	3
Investments in exchange traded funds	22		11

Fair Value of Long-Term Debt

The fair value of long-term debt at December 31, 2023 and September 30, 2023 was as follows (in billions):


	December 31,		September 30,
	2023		2023
Public debt	$	7.8	$	7.1
Other long-term debt	0.4		0.4
Total fair value of long-term debt	$	8.2	$	7.5