XML 37 R24.htm IDEA: XBRL DOCUMENT
v3.23.3

Pension and Postretirement Plans | 12 Months Ended
--- | ---
Sep. 30, 2023
Retirement Benefits [Abstract] |
Pension and Postretirement Plans | PENSION AND POSTRETIREMENT PLANS Retirement plans expense includes the following components:
| U.S. Plans |  | Non-U.S. Plans
| 2021 |  |  | 2022 |  |  | 2023 |  |  | 2021 |  |  | 2022 |  |  | 2023 |
Defined benefit plans: |  |  |  |  |  |  |  |  |  |  |
Service cost (benefits earned during the period) | $ | 54 |  |  | 49 |  |  | 25 |  |  | 29 |  |  | 25 |  |  | 20 |
Interest cost | 94 |  |  | 99 |  |  | 164 |  |  | 32 |  |  | 33 |  |  | 50 |
Expected return on plan assets | (264) |  |  | (253) |  |  | (247) |  |  | (74) |  |  | (56) |  |  | (39) |
Net amortization and other | 143 |  |  | 102 |  |  | (55) |  |  | 14 |  |  | 3 |  |  | 18 |
Net periodic pension expense (income) | 27 |  |  | (3) |  |  | (113) |  |  | 1 |  |  | 5 |  |  | 49 |
Defined contribution plans | 114 |  |  | 124 |  |  | 111 |  |  | 52 |  |  | 52 |  |  | 49 |
Total retirement plans expense (income) | $ | 141 |  |  | 121 |  |  | (2) |  |  | 53 |  |  | 57 |  |  | 98 |
Net periodic pension expense decreased in 2023 primarily due to lower amortization of deferred losses partially offset by higher interest costs. Net periodic pension expense (income) includes $7, $16 and $21 and defined contribution expense includes $14, $32 and $30 for 2023, 2022 and 2021, respectively, related to discontinued operations. For defined contribution plans, the Company makes cash contributions based on plan requirements, which are expensed as incurred. The Company's principal U.S. defined benefit plan is closed to employees hired after January 1, 2016 while shorter-tenured employees ceased accruing benefits effective October 1, 2016. All of the following tables include defined benefit pension plans related to continuing and discontinued operations. Details of the changes in the actuarial present value of the projected benefit obligation and the fair value of plan assets for defined benefit pension plans follow:
| U.S. Plans |  | Non-U.S. Plans
| 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |
Projected benefit obligation, beginning | $ | 4,338 |  |  | 3,112 |  |  | 1,562 |  |  | 965 |
Service cost | 49 |  |  | 25 |  |  | 25 |  |  | 20 |
Interest cost | 99 |  |  | 164 |  |  | 33 |  |  | 50 |
Actuarial gain | (1,170) |  |  | (75) |  |  | (404) |  |  | (25) |
Curtailments | — |  |  | (31) |  |  | — |  |  | — |
Benefits paid | (204) |  |  | (204) |  |  | (40) |  |  | (42) |
Settlements | — |  |  | (2) |  |  | (29) |  |  | (70) |
Acquisitions (Divestitures), net | — |  |  | (56) |  |  | — |  |  | (46) |
Foreign currency translation and other | — |  |  | 1 |  |  | (182) |  |  | 74 |
Projected benefit obligation, ending | $ | 3,112 |  |  | 2,934 |  |  | 965 |  |  | 926 |
Fair value of plan assets, beginning | $ | 4,844 |  |  | 3,625 |  |  | 1,474 |  |  | 908 |
Actual return on plan assets | (1,030) |  |  | 230 |  |  | (337) |  |  | (40) |
Employer contributions | 15 |  |  | 14 |  |  | 28 |  |  | 32 |
Benefits paid | (204) |  |  | (204) |  |  | (40) |  |  | (42) |
Settlements | — |  |  | (2) |  |  | (29) |  |  | (70) |
Acquisitions (Divestitures), net | — |  |  | (74) |  |  | — |  |  | 2 |
Foreign currency translation and other | — |  |  | 1 |  |  | (188) |  |  | 74 |
Fair value of plan assets, ending | $ | 3,625 |  |  | 3,590 |  |  | 908 |  |  | 864 |
Net amount recognized in the balance sheet | $ | 513 |  |  | 656 |  |  | (57) |  |  | (62) |
Location of net amount recognized in the balance sheet: |  |  |  |  |  |  |
Noncurrent asset | $ | 663 |  |  | 815 |  |  | 205 |  |  | 180 |
Noncurrent asset held-for-sale | 13 |  |  | — |  |  | — |  |  | — |
Current liability | (14) |  |  | (14) |  |  | (17) |  |  | (17) |
Noncurrent liability | (149) |  |  | (145) |  |  | (203) |  |  | (225) |
Net liability held-for-sale | — |  |  | — |  |  | (42) |  |  | — |
Net amount recognized in the balance sheet | $ | 513 |  |  | 656 |  |  | (57) |  |  | (62) |
Pretax accumulated other comprehensive loss | $ | (284) |  |  | (257) |  |  | (136) |  |  | (181) |
Actuarial gains in 2023 were largely due to an increase in the discount rates used to estimate the benefit obligations for the U.S. and non-U.S. plans, which were 6.03% and 5.2% at September 30, 2023 compared to 5.64% and 4.9% at September 30, 2022, respectively. A ctuarial gains in 2022 were largely due to an increase in the discount rates used to estimate the benefit obligations for the U.S. and non-U.S. plans, which were 5.64% and 4.9% at September 30, 2022 compared to 2.92% and 2.2% at September 30, 2021, respectively. As of September 30, 2023, U.S. pension plans were overfunded by $656 in total, including unfunded plans totaling $159. The non-U.S. plans were underfunded by $62, including unfunded plans totaling $213. As of the September 30, 2023 and 2022 measurement dates, the plans' total accumulated benefit obligation was $3,719 and $3,910, respectively. The total projected benefit obligation, accumulated benefit obligation and fair value of plan assets for individual plans with projected benefit obligations in excess of plan assets were $519, $435 and $118, respectively, for 2023, and $527, $444 and $102, respectively, for 2022. The total projected benefit obligation, accumulated benefit obligation and fair value of plan assets for individual plans with accumulated benefit obligations in excess of plan assets were $469, $413 and $77, respectively, for 2023, and $477, $421 and $63, respectively, for 2022. Future benefit payments by U.S. plans are estimated to be $222 in 2024, $226 in 2025, $229 in 2026, $230 in 2027, $231 in 2028 and $1,142 in total over the five years 2029 through 2033. Based on foreign currency exchange rates as of September 30, 2023, future benefit payments by non-U.S. plans are estimated to be $62 in 2024, $58 in 2025, $61 in 2026, $63 in 2027, $69 in 2028 and $358 in total over the five years 2029 through 2033. The Company expects to contribute approximately $45 to its retirement plans in 2024. The weighted-average assumptions used in the valuation of pension benefits follow:
| U.S. Plans |  | Non-U.S. Plans
| 2021 |  |  | 2022 |  |  | 2023 |  |  | 2021 |  |  | 2022 |  |  | 2023 |
Net pension expense |  |  |  |  |  |  |  |  |  |  |
Discount rate used to determine service cost | 3.16 | % |  | 3.16 | % |  | 5.66 | % |  | 1.9 | % |  | 2.2 | % |  | 4.9 | %
Discount rate used to determine interest cost | 2.10 | % |  | 2.31 | % |  | 5.49 | % |  | 1.9 | % |  | 2.2 | % |  | 4.9 | %
Expected return on plan assets | 6.50 | % |  | 6.00 | % |  | 6.00 | % |  | 5.6 | % |  | 4.4 | % |  | 4.4 | %
Rate of compensation increase | 3.25 | % |  | 4.00 | % |  | 4.00 | % |  | 3.6 | % |  | 3.7 | % |  | 4.0 | %
Benefit obligations |  |  |  |  |  |  |  |  |  |  |
Discount rate | 2.92 | % |  | 5.64 | % |  | 6.03 | % |  | 2.2 | % |  | 4.9 | % |  | 5.2 | %
Rate of compensation increase | 3.25 | % |  | 4.00 | % |  | 4.00 | % |  | 3.7 | % |  | 4.0 | % |  | 3.9 | %
The discount rate for the U.S. retirement plans was 6.03 percent as of September 30, 2023. An actuarially developed, company-specific yield curve is used to determine the discount rate. To determine the service and interest cost components of pension expense for its U.S. retirement plans, the Company applies the specific spot rates along the yield curve, rather than the single weighted-average rate, to the projected cash flows to provide more precise measurement of these costs. The expected return on plan assets assumption is determined by reviewing the investment returns of the plans for the past 10 years plus longer-term historical returns of an asset mix approximating the Company's asset allocation targets, and periodically comparing these returns to expectations of investment advisors and actuaries to determine whether long-term future returns are expected to differ significantly from the past. The Company's asset allocations at September 30, 2023 and 2022, and weighted-average target allocations follow:
| U.S. Plans |  | Non-U.S. Plans
| 2022 |  |  | 2023 |  |  | Target |  | 2022 |  |  | 2023 |  |  | Target
Equity securities | 39 | % |  | 39 | % |  | 35-45% |  | 11 | % |  | 8 | % |  | 5-15%
Debt securities | 54 |  |  | 51 |  |  | 50-60 |  | 73 |  |  | 75 |  |  | 70-80
Other | 7 |  |  | 10 |  |  | 0-10 |  | 16 |  |  | 17 |  |  | 10-20
Total | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
The primary objective for the investment of pension assets is to secure participant retirement benefits by earning a reasonable rate of return. Plan assets are invested consistent with the provisions of the prudence and diversification rules of ERISA and with a long-term investment horizon. The Company continuously monitors the value of assets by class and routinely rebalances to remain within target allocations. The equity strategy is to minimize concentrations of risk by investing primarily in a mix of companies that are diversified across geographies, market capitalization, style, sectors and industries worldwide. The approach for bonds emphasizes investment-grade corporate and government debt with maturities matching a portion of the longer duration pension liabilities. The bonds strategy also includes a high-yield element which is generally shorter in duration. For diversification, a small portion of U.S. plan assets is allocated to private equity partnerships and real asset fund investments, providing opportunities for above market returns. Leveraging techniques are not used and the use of derivatives in any fund is limited and inconsequential. The fair values of defined benefit pension assets a s of September 30, o rganized by asset class and by the fair value hierarchy of ASC 820, Fair Value Measurement, follow. Investments valued based on the net asset value (NAV) of fund units held, as derived from the fair value of the underlying assets, are excluded from the fair value hierarchy.
| Level 1 |  | Level 2 |  | Level 3 |  | Measured at NAV |  | Total |  | %
2023 |  |  |  |  |  |  |  |  |  |  |
U.S. equities | $ | 396 |  |  | 9 |  |  | — |  |  | 619 |  |  | 1,024 |  |  | 23 | %
International equities | 210 |  |  | 14 |  |  | — |  |  | 103 |  |  | 327 |  |  | 7 | %
Emerging market equities | — |  |  | 1 |  |  | — |  |  | 118 |  |  | 119 |  |  | 3 | %
Corporate bonds | — |  |  | 1,008 |  |  | — |  |  | 843 |  |  | 1,851 |  |  | 42 | %
Government bonds | — |  |  | 505 |  |  | — |  |  | 124 |  |  | 629 |  |  | 14 | %
Other | 121 |  |  | 7 |  |  | 126 |  |  | 250 |  |  | 504 |  |  | 11 | %
Total | $ | 727 |  |  | 1,544 |  |  | 126 |  |  | 2,057 |  |  | 4,454 |  |  | 100 | %
2022 |  |  |  |  |  |  |  |  |  |  |
U.S. equities | $ | 405 |  |  | 6 |  |  |  |  | 633 |  |  | 1,044 |  |  | 23 | %
International equities | 225 |  |  | 10 |  |  |  |  | 123 |  |  | 358 |  |  | 8 | %
Emerging market equities | — |  |  | 1 |  |  |  |  | 124 |  |  | 125 |  |  | 3 | %
Corporate bonds | — |  |  | 1,143 |  |  |  |  | 859 |  |  | 2,002 |  |  | 44 | %
Government bonds | — |  |  | 468 |  |  |  |  | 152 |  |  | 620 |  |  | 14 | %
Other | (9) |  |  | 7 |  |  | 130 |  |  | 256 |  |  | 384 |  |  | 8 | %
Total | $ | 621 |  |  | 1,635 |  |  | 130 |  |  | 2,147 |  |  | 4,533 |  |  | 100 | %
Asset Classes U.S. equities reflect companies domiciled in the U.S., including multinational companies. International equities are comprised of companies domiciled in developed nations outside the U.S. Emerging market equities are comprised of companies domiciled in portions of Asia, Eastern Europe and Latin America. Corporate bonds represent investment-grade debt of issuers primarily from the U.S. Government bonds include investment-grade instruments issued by federal, state and local governments, primarily in the U.S. Other includes cash, interests in mixed asset funds investing in commodities, natural resources, agriculture, real estate and infrastructure funds, life insurance contracts (U.S.), and shares in certain general investment funds of financial institutions or insurance arrangements (non-U.S.) that typically ensure no market losses or provide for a small minimum return guarantee. Fair Value Hierarchy Categories Valuations of Level 1 assets for all classes are based on quoted closing market prices from the principal exchanges where the individual securities are traded. Cash is valued at cost, which approximates fair value. Debt securities categorized as Level 2 assets are generally valued based on independent broker/dealer bids or by comparison to other debt securities having similar durations, yields and credit ratings. Valuation techniques and inputs for these assets include discounted cash flow analysis, earnings multiple approaches, recent transactions, transfer restrictions, prevailing discount rates, volatilities, credit ratings and other factors. In the Other class, interests in mixed asset funds are Level 2, and U.S. life insurance contracts and non-U.S. general fund investments and insurance arrangements are Level 3. Investments measured at NAV are primarily nonexchange-traded commingled or collective funds where the underlying securities have observable prices available from active markets and typically provide liquidity daily or within a few days. The NAV category also includes fund investments in private equities, real estate and infrastructure where the fair value of the underlying assets is determined by the investment manager. Total unfunded commitments for the private equity funds were approximately $115 at September 30, 2023. These investments cannot be redeemed, but instead the funds will make distributions through liquidation of the underlying assets, which is expected to occur over approximately the next 10 years. The real estate and infrastructure funds typically offer quarterly redemption. Postretirement Plans The Company also sponsors unfunded postretirement benefit plans (primarily health care) for certain U.S. retirees and their dependents. The Company’s principal U.S. postretirement plan has been frozen to new employees since 1993. The postretirement benefit liability for all plans was $72 and $83 as of September 30, 2023 and 2022, respectively, and included deferred actuarial gains in accumulated other comprehensive income of $95 and $112, respectively. Service and interest costs are negligible and more than offset by the amortization of deferred actuarial gains, which resulted in net postretirement income of $19 for 2023 and $12 for 2022 and $15 for 2021. Benefits paid were $9 and $10 for 2023 and 2022, respectively, and the Company estimates that future health care benefit payments will be approximately $8 per year for 2024 through 2028, and $29 in total over the five years 2029 through 2033.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 70 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480794/715-70-50-1 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 17 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480482/715-20-55-17 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (q) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//715/tableOfContent Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (o) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (p) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480266/715-60-50-3 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration