XML 53 R43.htm IDEA: XBRL DOCUMENT v3.7.0.1
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Jun. 30, 2017
Derivative Instruments [Line Items]  
Outstanding Commodity Hedge Contracts
The Company had the following outstanding contracts to hedge forecasted commodity purchases:
 
 
 
 
Volume Outstanding as of
Commodity
 
Units
 
June 30, 2017
 
September 30, 2016
 
 
 
 
 
 
 
Copper
 
Pounds
 
6,200,000

 
5,849,000

Polypropylene
 
Pounds
 
18,000,000

 
—

Lead
 
Metric Tons
 
8,645

 
5,185

Aluminum
 
Metric Tons
 
2,860

 
2,620

Tin
 
Metric Tons
 
2,225

 
185
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 under ASC 815
 
Derivatives and Hedging Activities Not
Designated as Hedging Instruments under ASC 815
 
June 30,
 
September 30,
 
June 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Other current assets
 
 
 
 
 
 
 
Foreign currency exchange derivatives
$
7

 
$
41

 
$
26

 
$
49

Commodity derivatives
3

 
4

 
—

 
—

Other noncurrent assets
 
 
 
 
 
 
 
Interest rate swaps
—

 
1

 
—

 
—

Equity swap
—

 
—

 
59

 
—

Total assets
$
10

 
$
46

 
$
85

 
$
49

 
 
 
 
 
 
 
 
Other current liabilities
 
 
 
 
 
 
 
Foreign currency exchange derivatives
$
6

 
$
48

 
$
13

 
$
18

         Commodity derivatives
1

 
—

 
—

 
—

Liabilities held for sale
 
 
 
 
 
 
 
Foreign currency exchange derivatives
—

 
—

 
—

 
5

Current portion of long-term debt
 
 
 
 
 
 
 
Fixed rate debt swapped to floating
—

 
551

 
—

 
—

Long-term debt
 
 
 
 
 
 
 
Foreign currency denominated debt
1,693

 
938

 
—

 
—

Fixed rate debt swapped to floating
—

 
301

 
—

 
—

Noncurrent liabilities held for sale
 
 
 
 
 
 
 
Foreign currency denominated debt
—

 
1,119

 
—

 
—

Total liabilities
$
1,700

 
$
2,957

 
$
13

 
$
23
Offsetting Assets and Liabilities
The gross and net amounts of derivative assets and liabilities were as follows (in millions):
 
Fair Value of Assets
 
Fair Value of Liabilities
 
June 30,
 
September 30,
 
June 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Gross amount recognized
$
95

 
$
95

 
$
1,713

 
$
2,980

Gross amount eligible for offsetting
(18
)
 
(21
)
 
(18
)
 
(21
)
Net amount
$
77

 
$
74

 
$
1,695

 
$
2,959
Location and Amount of Gains and Losses Gross of Tax on Derivative Instruments and Related Hedge Items
The following table presents the effective portion of pre-tax gains (losses) recorded in other comprehensive income (loss) related to cash flow hedges for the three and nine months ended June 30, 2017 and 2016 (in millions):
Derivatives in ASC 815 Cash Flow Hedging Relationships
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Foreign currency exchange derivatives
 
$
(3
)
 
$
(5
)
 
$
3

 
$
(11
)
Commodity derivatives
 
1

 
1

 
6

 
—

Total
 
$
(2
)
 
$
(4
)
 
$
9

 
$
(11
)

The following tables present the location and amount of the effective portion of pre-tax gains (losses) on cash flow hedges reclassified from AOCI into the Company’s consolidated statements of income for the three and nine months ended June 30, 2017 and 2016 (in millions):
Derivatives in ASC 815 Cash Flow
Hedging Relationships
 
Location of Gain (Loss) Reclassified
from AOCI into Income
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Foreign currency exchange derivatives
 
Cost of sales
 
$
8

 
$
2

 
$
24

 
$
11

Foreign currency exchange derivatives
 
Loss from discontinued operations
 
—

 
(10
)
 
—

 
(24
)
Commodity derivatives
 
Cost of sales
 
3

 
(2
)
 
7

 
(11
)
Forward treasury locks
 
Net financing charges
 
—

 
—

 
—

 
1

Total
 
 
 
$
11

 
$
(10
)
 
$
31

 
$
(23
)

 The following table presents the location and amount of pre-tax gains (losses) on fair value hedges recognized in the Company’s consolidated statements of income for the three and nine months ended June 30, 2017 and 2016 (in millions):
Derivatives in ASC 815 Fair Value
Hedging Relationships
 
Location of Gain (Loss)
Recognized in Income on Derivative
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Interest rate swap
 
Net financing charges
 
$
—

 
$
—

 
$
(1
)
 
$
(3
)
Fixed rate debt swapped to floating
 
Net financing charges
 
—

 
—

 
2

 
3

Total
 
 
 
$
—

 
$
—

 
$
1

 
$
—


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 for the three and nine months ended June 30, 2017 and 2016 (in millions):
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments under ASC 815
 
Location of Gain (Loss)
Recognized in Income on Derivative
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Foreign currency exchange derivatives
 
Cost of sales
 
$
(4
)
 
$
1

 
$
(1
)
 
$
4

Foreign currency exchange derivatives
 
Net financing charges
 
51

 
(14
)
 
60

 
(21
)
Foreign currency exchange derivatives
 
Income tax provision
 
1

 
5

 
(2
)
 
5

Foreign currency exchange derivatives
 
Income (loss) from discontinued operations
 
—

 
(5
)
 
5

 
(16
)
Equity swap
 
Selling, general and administrative
 
2

 
20

 
2

 
12

Total
 
 
 
$
50

 
$
7

 
$
64

 
$
(16
)