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Financial Instruments | 9 Months Ended
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Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Instruments |
| Following is a discussion regarding the Company’s use of financial instruments:
Hedging Activities – As of June 30, 2018, the notional amount of foreign currency hedge positions was approximately $2.3 billion, and commodity hedge contracts totaled approximately $142 (primarily 53 million pounds of copper and aluminum). All derivatives receiving deferral accounting are cash flow hedges. The majority of hedging gains and losses deferred as of June 30, 2018 are expected to be recognized over the next 12 months as the underlying forecasted transactions occur. Gains and losses on foreign currency derivatives reported in Other deductions, net reflect hedges of balance sheet exposures that do not receive deferral accounting. The following gains and losses are included in earnings and other comprehensive income (OCI) for the three and nine months ended June 30, 2018 and 2017:
|  |  |  | Into Earnings |  | Into OCI
|  |  |  | 3rd Quarter |  | Nine Months |  | 3rd Quarter |  | Nine Months
Gains (Losses) |  | Location |  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Commodity |  | Cost of sales |  | $ | 4 |  |  | 2 |  |  | 6 |  |  | 13 |  |  | 2 |  |  | (3 | ) |  | 17 |  |  | 1 |
Foreign currency |  | Sales, cost of sales |  | — |  |  | (1 | ) |  | (17 | ) |  | (1 | ) |  | 10 |  |  | (15 | ) |  | 32 |  |  | (19 | )
Foreign currency |  | Other deductions, net |  | (22 | ) |  | 28 |  |  | (22 | ) |  | 16 |  |  |  |  |  |  |  |  |
Total |  |  |  | $ | (18 | ) |  | 29 |  |  | (33 | ) |  | 28 |  |  | 12 |  |  | (18 | ) |  | 49 |  |  | (18 | )
Regardless of whether derivatives receive deferral accounting, the Company expects hedging gains or losses to be essentially offset by losses or gains on the related underlying exposures. The amounts ultimately recognized will differ from those presented above for open positions, which remain subject to ongoing market price fluctuations until settlement. Derivatives receiving deferral accounting are highly effective and no amounts were excluded from the assessment of hedge effectiveness. Hedge ineffectiveness was immaterial for the three and nine months ended June 30, 2018 and 2017. Fair Value Measurement – Valuations for all derivatives and the Company's long-term debt fall within Level 2 of the GAAP valuation hierarchy. As of June 30, 2018, the fair value of long-term debt was $4.0 billion, which exceeded the carrying value by $152. At June 30, 2018, the fair values of commodity contracts and foreign currency contracts were reported in other current assets and accrued expenses. Valuations of derivative contract positions are summarized below:
| September 30, 2017 |  | June 30, 2018
| Assets |  | Liabilities |  | Assets |  | Liabilities
Foreign Currency |  | $ | 26 |  |  | 18 |  |  | 27 |  |  | 24 |
Commodity |  | $ | 12 |  |  | — |  |  | 3 |  |  | 4 |
Counterparties to derivatives arrangements are companies with investment-grade credit ratings. The Company has bilateral collateral arrangements with counterparties with credit rating-based posting thresholds that vary depending on the arrangement. If credit ratings on the Company's debt fall below pre-established levels, counterparties can require immediate full collateralization of all derivatives in net liability positions. The maximum amount that could potentially have been required was $13. The Company also can demand full collateralization of derivatives in net asset positions should any counterparty credit ratings fall below certain thresholds. No collateral was posted with counterparties and none was held by the Company as of June 30, 2018.

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- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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