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Financial Instruments | 12 Months Ended
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Sep. 30, 2021
General Discussion of Derivative Instruments and Hedging Activities [Abstract] |
Financial Instruments | FINANCIAL INSTRUMENTS Following is a discussion regarding the Company’s use of financial instruments: Hedging Activities As of September 30, 2021, the notional amount of foreign currency hedge positions was approximately $2.0 billion, and commodity hedge contracts totaled approximately $137 (primarily 39 million pounds of copper and aluminum). All derivatives receiving hedge accounting are cash flow hedges. The majority of hedging gains and losses deferred as of September 30, 2021 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 hedge accounting. Net Investment Hedge In fiscal 2019, the Company issued euro-denominated debt of €1.5 billion. The euro notes reduce foreign currency risk associated with the Company's international subsidiaries that use the euro as their functional currency and have been designated as a hedge of a portion of the investment in these operations. Foreign currency gains or losses associated with the euro-denominated debt are deferred in accumulated other comprehensive income (loss) and will remain until the hedged investment is sold or substantially liquidated. The following gains and losses are included in earnings and other comprehensive income (OCI):
|  |  | Gain (Loss) to Earnings |  | Gain (Loss) to OCI
|  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2019 |  |  | 2020 |  |  | 2021 |
| Location |  |  |  |  |  |  |  |  |  |  |  |
Commodity | Cost of sales |  | $ | (11) |  |  | (8) |  |  | 33 |  |  | (10) |  |  | 10 |  |  | 29 |
Foreign currency | Sales |  | (7) |  |  | (5) |  |  | 3 |  |  | (8) |  |  | 4 |  |  | 3 |
Foreign currency | Cost of sales |  | 20 |  |  | 4 |  |  | 8 |  |  | 14 |  |  | (25) |  |  | 34 |
Foreign currency | Other deductions, net |  | 66 |  |  | (40) |  |  | 53 |  |  |  |  |  |  |
Net Investment Hedge |  |  |  |  |  |  |  |  |  |  |  |
Euro denominated debt |  |  |  |  |  |  |  |  | 70 |  |  | (123) |  |  | 21 |
Total |  |  | $ | 68 |  |  | (49) |  |  | 97 |  |  | 66 |  |  | (134) |  |  | 87 |
Regardless of whether derivatives and non-derivative financial instruments receive hedge accounting, the Company expects hedging gains or losses to be 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 hedge accounting are highly effective and no amounts were excluded from the assessment of hedge effectiveness. Fair Value Measurement Valuations for all derivatives and the Company's long-term debt fall within Level 2 of the GAAP valuation hierarchy. The fair value of long-term debt was $6.8 billion and $7.3 billion, respectively, as of September 30, 2021 and 2020, which exceeded the carrying value by $485 and $629, respectively. The fair values of commodity and foreign currency contracts were reported in Other current assets and Accrued expenses as summarized below:
|  | 2020 |  | 2021
|  | Assets |  | Liabilities |  | Assets |  | Liabilities
Commodity |  |  | $ | 11 |  |  |  | — |  |  | 12 |  |  | 6 |
Foreign currency |  |  | $ | 26 |  |  |  | 25 |  |  | 36 |  |  | 6 |

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