XML 48 R37.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Mar. 31, 2024
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
CommodityMarch 31, 2024September 30, 2023
Copper3,447 2,812 
Aluminum 7,085 5,976 
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table summarizes net investment hedges (in billions):
March 31,September 30,
20242023
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
 March 31,September 30,March 31,September 30,
2024202320242023
Other current assets
Foreign currency exchange derivatives$18 $16 $7 $13 
Interest rate swaps— 22 — — 
Commodity derivatives2 — — — 
Other noncurrent assets
Cross-currency interest rate swap7 5 — — 
Total assets$27 $43 $7 $13 
Other current liabilities
Foreign currency exchange derivatives$17 $20 $— $5 
        Commodity derivatives— 2 — — 
Long-term debt
Foreign currency denominated debt3,302 3,253 — — 
Total liabilities$3,319 $3,275 $— $5 
Offsetting Assets and Liabilities
The gross and net amounts of derivative assets and liabilities were as follows (in millions):
 Fair Value of AssetsFair Value of Liabilities
 March 31,September 30,March 31,September 30,
2024202320242023
Gross amount recognized$34 $56 $3,319 $3,280 
Gross amount eligible for offsetting(10)(19)(10)(19)
Net amount$24 $37 $3,309 $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 March 31,Six Months Ended March 31,
2024202320242023
Foreign currency exchange derivatives$15 $9 $2 $(12)
Commodity derivatives— 3 1 7 
Interest rate swaps14 5 (21)5 
Total$29 $17 $(18)$— 

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 RelationshipsLocation of Gain (Loss) Reclassified from AOCI into IncomeThree Months Ended
March 31,		Six Months Ended
March 31,
2024202320242023
Foreign currency exchange derivativesCost of sales$(2)$(5)$(3)$4 
Commodity derivativesCost of sales(1)(2)(4)(8)
Total$(3)$(7)$(7)$(4)

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 InstrumentsLocation of Gain (Loss)
Recognized in Income on Derivative		Three Months Ended
March 31,		Six Months Ended
March 31,
2024202320242023
Foreign currency exchange derivativesCost of sales$2 $(6)$(3)$(8)
Foreign currency exchange derivativesSG&A(1)— (1)— 
Foreign currency exchange derivativesNet financing charges59 15 16 (64)
Total$60 $9 $12 $(72)
Pre-tax Gains (Losses) on Net Investment Hedges Recorded as Foreign CTA in OCI
The following table presents pre-tax gains (losses) on net investment hedges recorded as foreign currency translation adjustments ("CTA") within other comprehensive income (loss) (in millions):
Three Months Ended
March 31,		Six Months Ended
March 31,
2024202320242023
Net investment hedges$98 $(60)$(47)$(329)