Fair Value Measurements

3 Months Ended

Dec. 31, 2021

Note 11 — Fair Value Measurements

Recurring Fair Value Measurements

The following table presents, on a gross basis, our financial assets and liabilities, including both current and noncurrent portions, that are measured at fair value on a recurring basis within the fair value hierarchy:


	Asset (Liability)
	Level 1		Level 2		Level 3		Total
December 31, 2021:
Derivative instruments:
Assets:
Commodity contracts	$	411	$	711	$	—	$	1,122
Foreign currency contracts	$	—	$	29	$	—	$	29
Interest rate contracts	$	—	$	5	$	—	$	5

Liabilities:
Commodity contracts	$	(160)	$	(18)	$	—	$	(178)
Foreign currency contracts	$	—	$	(7)	$	—	$	(7)
Interest rate contracts	$	—	$	(17)	$	—	$	(17)

Non-qualified supplemental postretirement grantor trust investments (a)	$	52	$	—	$	—	$	52
September 30, 2021:
Derivative instruments:
Assets:
Commodity contracts	$	641	$	1,008	$	—	$	1,649
Foreign currency contracts	$	—	$	38	$	—	$	38


Liabilities:
Commodity contracts	$	(264)	$	(16)	$	—	$	(280)
Foreign currency contracts	$	—	$	(8)	$	—	$	(8)
Interest rate contracts	$	—	$	(29)	$	—	$	(29)

Non-qualified supplemental postretirement grantor trust investments (a)	$	53	$	—	$	—	$	53
December 31, 2020:
Derivative instruments:
Assets:
Commodity contracts	$	60	$	111	$	—	$	171
Foreign currency contracts	$	—	$	14	$	—	$	14


Liabilities:
Commodity contracts	$	(58)	$	(14)	$	—	$	(72)
Foreign currency contracts	$	—	$	(25)	$	—	$	(25)
Interest rate contracts	$	—	$	(50)	$	—	$	(50)

Non-qualified supplemental postretirement grantor trust investments (a)	$	46	$	—	$	—	$	46

(a)Consists primarily of mutual fund investments held in grantor trusts associated with non-qualified supplemental retirement plans.

The fair values of our Level 1 exchange-traded commodity futures and option contracts and non-exchange-traded commodity futures and forward contracts are based upon actively quoted market prices for identical assets and liabilities. The remainder of our derivative instruments are designated as Level 2. The fair values of certain non-exchange-traded commodity derivatives designated as Level 2 are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. The fair values of our Level 2 interest rate contracts and foreign currency contracts are based upon third-party quotes or indicative values based on recent market transactions. The fair values of

investments held in grantor trusts are derived from quoted market prices as substantially all of the investments in these trusts have active markets.

Other Financial Instruments

The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. We estimate the fair value of long-term debt by using current market rates and by discounting future cash flows using rates available for similar type debt (Level 2). The carrying amounts and estimated fair values of our long-term debt (including current maturities but excluding unamortized debt issuance costs) were as follows:


	December 31, 2021		September 30, 2021		December 31, 2020
Carrying amount	$	6,580	$	6,491	$	6,078
Estimated fair value	$	7,048	$	6,996	$	6,581

Financial instruments other than derivative instruments, such as short-term investments and trade accounts receivable, could expose us to concentrations of credit risk. We limit credit risk from short-term investments by investing only in investment-grade commercial paper, money market mutual funds, securities guaranteed by the U.S. Government or its agencies and FDIC insured bank deposits. The credit risk arising from concentrations of trade accounts receivable is limited because we have a large customer base that extends across many different U.S. markets and a number of foreign countries. For information regarding concentrations of credit risk associated with our derivative instruments, see Note 12.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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