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Retirement Plans (Tables) | 12 Months Ended
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Sep. 30, 2019
Defined Benefit Plan Disclosure [Line Items] |
Plan Assets by Asset Category | The Company’s plan assets at September 30, 2019 and 2018, by asset category, are as follows (in millions):
| Fair Value Measurements Using:
Asset Category | Total as of September 30, 2019 |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
U.S. Pension |  |  |  |  |  |  |
Cash and Cash Equivalents | $ | 55 |  |  | $ | 24 |  |  | $ | 31 |  |  | $ | — |
Equity Securities |  |  |  |  |  |  |
Large-Cap | 276 |  |  | 276 |  |  | — |  |  | — |
Small-Cap | 232 |  |  | 232 |  |  | — |  |  | — |
International - Developed | 266 |  |  | 233 |  |  | 33 |  |  | — |
International - Emerging | 52 |  |  | 42 |  |  | 10 |  |  | — |
Fixed Income Securities |  |  |  |  |  |  |
Government | 332 |  |  | 47 |  |  | 285 |  |  | — |
Corporate/Other | 1,266 |  |  | 1,266 |  |  | — |  |  | — |
Real Estate | 55 |  |  | 55 |  |  | — |  |  | — |
Total Investments in the Fair Value Hierarchy | 2,534 |  |  | $ | 2,175 |  |  | $ | 359 |  |  | $ | — |
Investments Measured at Net Asset Value, as Practical Expedient: |  |  |  |  |  |  |
Real Estate Investments Measured at Net Asset Value* | 202 |  |  |  |  |  |  |
Total Plan Assets | $ | 2,736 |  |  |  |  |  |  |
Non-U.S. Pension |  |  |  |  |  |  |
Cash and Cash Equivalents | $ | 174 |  |  | $ | 174 |  |  | $ | — |  |  | $ | — |
Equity Securities |  |  |  |  |  |  |
Large-Cap | 214 |  |  | 23 |  |  | 191 |  |  | — |
International - Developed | 289 |  |  | 54 |  |  | 235 |  |  | — |
International - Emerging | 12 |  |  | 1 |  |  | 11 |  |  | — |
Fixed Income Securities |  |  |  |  |  |  |
Government | 778 |  |  | 69 |  |  | 709 |  |  | — |
Corporate/Other | 517 |  |  | 289 |  |  | 228 |  |  | — |
Hedge Fund | 69 |  |  | — |  |  | 69 |  |  | — |
Real Estate | 31 |  |  | 31 |  |  | — |  |  | — |
Total Investments in the Fair Value Hierarchy | 2,084 |  |  | $ | 641 |  |  | $ | 1,443 |  |  | $ | — |
Investments Measured at Net Asset Value, as Practical Expedient: |  |  |  |  |  |  |
Real Estate Investments Measured at Net Asset Value* | 14 |  |  |  |  |  |  |
Total Plan Assets | $ | 2,098 |  |  |  |  |  |  |
Postretirement |  |  |  |  |  |  |
Cash and Cash Equivalents | $ | 6 |  |  | $ | 6 |  |  | $ | — |  |  | $ | — |
Equity Securities |  |  |  |  |  |  |
Large-Cap | 22 |  |  | — |  |  | 22 |  |  | — |
Small-Cap | 8 |  |  | — |  |  | 8 |  |  | — |
International - Developed | 19 |  |  | — |  |  | 19 |  |  | — |
International - Emerging | 9 |  |  | — |  |  | 9 |  |  | — |
Fixed Income Securities |  |  |  |  |  |  |
Government | 20 |  |  | — |  |  | 20 |  |  | — |
Corporate/Other | 55 |  |  | — |  |  | 55 |  |  | — |
Commodities | 13 |  |  | — |  |  | 13 |  |  | — |
Real Estate | 11 |  |  | — |  |  | 11 |  |  | — |
Total Plan Assets | $ | 163 |  |  | $ | 6 |  |  | $ | 157 |  |  | $ | — |
| Fair Value Measurements Using:
Asset Category | Total as of September 30, 2018 |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
U.S. Pension |  |  |  |  |  |  |
Cash and Cash Equivalents | $ | 23 |  |  | $ | 2 |  |  | $ | 21 |  |  | $ | — |
Equity Securities |  |  |  |  |  |  |
Large-Cap | 430 |  |  | 309 |  |  | 121 |  |  | — |
Small-Cap | 282 |  |  | 282 |  |  | — |  |  | — |
International - Developed | 411 |  |  | 365 |  |  | 46 |  |  | — |
International - Emerging | 94 |  |  | 80 |  |  | 14 |  |  | — |
Fixed Income Securities |  |  |  |  |  |  |
Government | 333 |  |  | 307 |  |  | 26 |  |  | — |
Corporate/Other | 1,183 |  |  | 1,119 |  |  | 64 |  |  | — |
Total Investments in the Fair Value Hierarchy | 2,756 |  |  | $ | 2,464 |  |  | $ | 292 |  |  | $ | — |
Investments Measured at Net Asset Value, as Practical Expedient: |  |  |  |  |  |  |  |
Real Estate Investments Measured at Net Asset Value* | 290 |  |  |  |  |  |  |
Total Plan Assets | $ | 3,046 |  |  |  |  |  |  |
Non-U.S. Pension |  |  |  |  |  |  |
Cash and Cash Equivalents | $ | 44 |  |  | $ | 43 |  |  | $ | 1 |  |  | $ | — |
Equity Securities |  |  |  |  |  |  |
Large-Cap | 235 |  |  | 24 |  |  | 211 |  |  | — |
International - Developed | 319 |  |  | 59 |  |  | 260 |  |  | — |
International - Emerging | 15 |  |  | 1 |  |  | 14 |  |  | — |
Fixed Income Securities |  |  |  |  |  |  |
Government | 830 |  |  | 80 |  |  | 750 |  |  | — |
Corporate/Other | 545 |  |  | 301 |  |  | 244 |  |  | — |
Hedge Fund | 82 |  |  | — |  |  | 82 |  |  | — |
Real Estate | 26 |  |  | 26 |  |  | — |  |  | — |
Total Investments in the Fair Value Hierarchy | 2,096 |  |  | $ | 534 |  |  | $ | 1,562 |  |  | $ | — |
Investments Measured at Net Asset Value, as Practical Expedient: |  |  |  |  |  |  |
Real Estate Investments Measured at Net Asset Value* | 21 |  |  |  |  |  |  |
Total Plan Assets | $ | 2,117 |  |  |  |  |  |  |
Postretirement |  |  |  |  |  |  |
Cash and Cash Equivalents | $ | 13 |  |  | $ | 13 |  |  | $ | — |  |  | $ | — |
Equity Securities |  |  |  |  |  |  |
Large-Cap | 26 |  |  | — |  |  | 26 |  |  | — |
Small-Cap | 8 |  |  | — |  |  | 8 |  |  | — |
International - Developed | 20 |  |  | — |  |  | 20 |  |  | — |
International - Emerging | 9 |  |  | — |  |  | 9 |  |  | — |
Fixed Income Securities |  |  |  |  |  |  |
Government | 20 |  |  | — |  |  | 20 |  |  | — |
Corporate/Other | 55 |  |  | — |  |  | 55 |  |  | — |
Commodities | 14 |  |  | — |  |  | 14 |  |  | — |
Real Estate | 9 |  |  | — |  |  | 9 |  |  | — |
Total Plan Assets | $ | 174 |  |  | $ | 13 |  |  | $ | 161 |  |  | $ | — |
* The fair value of certain investments in real estate do not have a readily determinable fair value and requires the fund managers to independently arrive at fair value by calculating net asset value ("NAV") per share. In order to calculate NAV per share, the fund managers value the real estate investments using any one, or a combination of, the following methods: independent third party appraisals, discounted cash flow analysis of net cash flows projected to be generated by the investment and recent sales of comparable investments. Assumptions used to revalue the properties are updated every quarter. Due to the fact that the fund managers calculate NAV per share, the Company utilizes a practical expedient for measuring the fair value of its real-estate investments, as provided for under ASC 820, "Fair Value Measurement." In applying the practical expedient, the Company is not required to further adjust the NAV provided by the fund manager in order to determine the fair value of its investment as the NAV per share is calculated in a manner consistent with the measurement principles of ASC 946, "Financial Services - Investment Companies," and as of the Company's measurement date. The Company believes this is an appropriate methodology to obtain the fair value of these assets. For the component of the real estate portfolio under development, the investments are carried at cost until they are completed and valued by a third party appraiser. In accordance with ASU No. 2015-07, "Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)," investments for which fair value is measured using the net asset value per share practical expedient should be disclosed separate from the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of total plan assets to the amounts presented in the notes to consolidated financial statements.
Accumulated Benefit Obligations and Reconciliations of Changes in Projected Benefit Obligation, Changes in Plan Assets and Funded Status | The table that follows contains the ABO and reconciliations of the changes in the PBO, the changes in plan assets and the funded status (in millions):
| Pension Benefits |  | Postretirement Benefits
| U.S. Plans |  | Non-U.S. Plans |
September 30, | 2019 |  | 2018 |  | 2019 |  | 2018 |  | 2019 |  | 2018
Accumulated Benefit Obligation | $ | 3,115 |  |  | $ | 3,154 |  |  | $ | 2,549 |  |  | $ | 2,444 |  |  | $ | — |  |  | $ | — |
Change in Projected Benefit Obligation |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year | 3,191 |  |  | 3,419 |  |  | 2,542 |  |  | 2,721 |  |  | 196 |  |  | 214 |
Service cost | 8 |  |  | 15 |  |  | 22 |  |  | 23 |  |  | 1 |  |  | 2 |
Interest cost | 108 |  |  | 105 |  |  | 54 |  |  | 57 |  |  | 6 |  |  | 7 |
Plan participant contributions | — |  |  | — |  |  | 2 |  |  | 2 |  |  | 6 |  |  | 6 |
Power Solutions divestiture | (390 | ) |  | — |  |  | (86 | ) |  | — |  |  | (9 | ) |  | — |
Other divestitures | — |  |  | — |  |  | (8 | ) |  | — |  |  | — |  |  | — |
Actuarial (gain) loss | 441 |  |  | (70 | ) |  | 337 |  |  | (67 | ) |  | 15 |  |  | 1 |
Amendments made during the year | — |  |  | — |  |  | 26 |  |  | — |  |  | (19 | ) |  | (8 | )
Benefits and settlements paid | (243 | ) |  | (278 | ) |  | (126 | ) |  | (130 | ) |  | (23 | ) |  | (24 | )
Estimated subsidy received | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Curtailment | — |  |  | — |  |  | — |  |  | (2 | ) |  | — |  |  | — |
Other | — |  |  | — |  |  | (2 | ) |  | (4 | ) |  | — |  |  | (1 | )
Currency translation adjustment | — |  |  | — |  |  | (109 | ) |  | (58 | ) |  | — |  |  | (2 | )
Projected benefit obligation at end of year | $ | 3,115 |  |  | $ | 3,191 |  |  | $ | 2,652 |  |  | $ | 2,542 |  |  | $ | 174 |  |  | $ | 196 |
Change in Plan Assets |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year | $ | 3,046 |  |  | $ | 3,165 |  |  | $ | 2,117 |  |  | $ | 2,181 |  |  | $ | 174 |  |  | $ | 177 |
Actual return on plan assets | 266 |  |  | 152 |  |  | 203 |  |  | 69 |  |  | 7 |  |  | 6 |
Power Solutions divestiture | (371 | ) |  | — |  |  | (45 | ) |  | — |  |  | (4 | ) |  | — |
Other divestitures | — |  |  | — |  |  | (4 | ) |  | — |  |  | — |  |  | — |
Employer and employee contributions | 38 |  |  | 7 |  |  | 50 |  |  | 48 |  |  | 9 |  |  | 15 |
Benefits paid | (136 | ) |  | (153 | ) |  | (76 | ) |  | (88 | ) |  | (23 | ) |  | (24 | )
Settlement payments | (107 | ) |  | (125 | ) |  | (50 | ) |  | (42 | ) |  | — |  |  | — |
Other | — |  |  | — |  |  | (2 | ) |  | (2 | ) |  | — |  |  | — |
Currency translation adjustment | — |  |  | — |  |  | (95 | ) |  | (49 | ) |  | — |  |  | — |
Fair value of plan assets at end of year | $ | 2,736 |  |  | $ | 3,046 |  |  | $ | 2,098 |  |  | $ | 2,117 |  |  | $ | 163 |  |  | $ | 174 |
Funded status | $ | (379 | ) |  | $ | (145 | ) |  | $ | (554 | ) |  | $ | (425 | ) |  | $ | (11 | ) |  | $ | (22 | )
Amounts recognized in the statement of financial position consist of:
Prepaid benefit cost | $ | 30 |  |  | $ | 63 |  |  | $ | 25 |  |  | $ | 26 |  |  | $ | 66 |  |  | $ | 61 |
Accrued benefit liability | (409 | ) |  | (156 | ) |  | (579 | ) |  | (409 | ) |  | (77 | ) |  | (83 | )
Accrued benefit liability - discontinued operations | — |  |  | (52 | ) |  | — |  |  | (42 | ) |  | — |  |  | — |
Net amount recognized | $ | (379 | ) |  | $ | (145 | ) |  | $ | (554 | ) |  | $ | (425 | ) |  | $ | (11 | ) |  | $ | (22 | )
Weighted Average Assumptions (1) |  |  |  |  |  |  |  |  |  |  |
Discount rate (2) | 2.95 | % |  | 4.10 | % |  | 1.50 | % |  | 2.45 | % |  | 2.90 | % |  | 3.80 | %
Rate of compensation increase | NA |  |  | 3.50 | % |  | 2.80 | % |  | 2.95 | % |  | NA |  |  | NA |
(1) | Plan assets and obligations are determined based on a September 30 measurement date at September 30, 2019 and 2018.
(2) | The Company considers the expected benefit payments on a plan-by-plan basis when setting assumed discount rates. As a result, the Company uses different discount rates for each plan depending on the plan jurisdiction, the demographics of
participants and the expected timing of benefit payments. For the U.S. pension and postretirement plans, the Company uses a discount rate provided by an independent third party calculated based on an appropriate mix of high quality bonds. For the non-U.S. pension and postretirement plans, the Company consistently uses the relevant country specific benchmark indices for determining the various discount rates. The Company has elected to utilize a full yield curve approach in the estimation of service and interest components of net periodic benefit cost (credit) for pension and other postretirement for plans that utilize a yield curve approach. The full yield curve approach applies the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.
Components of Net Periodic Benefit Cost | The table that follows contains the components of net periodic benefit costs, which are primarily recorded in selling, general and administrative expenses in the consolidated statements of income (in millions):
| Pension Benefits |  | Postretirement Benefits
| U.S. Plans |  | Non-U.S. Plans |
Year ended September 30, | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Components of Net Periodic Benefit Cost (Credit): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 8 |  |  | $ | 15 |  |  | $ | 18 |  |  | $ | 22 |  |  | $ | 23 |  |  | $ | 32 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 2 |
Interest cost | 108 |  |  | 105 |  |  | 113 |  |  | 54 |  |  | 57 |  |  | 48 |  |  | 6 |  |  | 7 |  |  | 6 |
Expected return on plan assets | (199 | ) |  | (229 | ) |  | (229 | ) |  | (105 | ) |  | (114 | ) |  | (92 | ) |  | (9 | ) |  | (10 | ) |  | (10 | )
Net actuarial (gain) loss | 361 |  |  | 7 |  |  | (220 | ) |  | 236 |  |  | (22 | ) |  | (195 | ) |  | 17 |  |  | 5 |  |  | (5 | )
Curtailment gain | — |  |  | — |  |  | — |  |  | — |  |  | (2 | ) |  | (19 | ) |  | — |  |  | — |  |  | — |
Settlement (gain) loss | 13 |  |  | — |  |  | (16 | ) |  | 4 |  |  | — |  |  | (1 | ) |  | — |  |  | — |  |  | — |
Net periodic benefit cost (credit) | 291 |  |  | (102 | ) |  | (334 | ) |  | 211 |  |  | (58 | ) |  | (227 | ) |  | 15 |  |  | 4 |  |  | (7 | )
Net periodic benefit (cost) credit related to discontinued operations | (2 | ) |  | (5 | ) |  | 26 |  |  | — |  |  | (7 | ) |  | 7 |  |  | — |  |  | (2 | ) |  | 2 |
Net periodic benefit cost (credit) included in continuing operations | $ | 289 |  |  | $ | (107 | ) |  | $ | (308 | ) |  | $ | 211 |  |  | $ | (65 | ) |  | $ | (220 | ) |  | $ | 15 |  |  | $ | 2 |  |  | $ | (5 | )
Expense Assumptions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate | 4.10 | % |  | 3.80 | % |  | 3.70 | % |  | 2.45 | % |  | 2.40 | % |  | 1.90 | % |  | 3.80 | % |  | 3.70 | % |  | 3.30 | %
Expected return on plan assets | 7.10 | % |  | 7.50 | % |  | 7.50 | % |  | 5.20 | % |  | 5.35 | % |  | 4.60 | % |  | 5.65 | % |  | 5.65 | % |  | 5.60 | %
Rate of compensation increase | 3.50 | % |  | 3.20 | % |  | 3.20 | % |  | 2.95 | % |  | 2.90 | % |  | 2.65 | % |  | NA |  |  | NA |  |  | NA |
Pension Benefits |
Defined Benefit Plan Disclosure [Line Items] |
Projected Benefit Payments from Plans | In fiscal 2019, total employer contributions for continuing operations to the defined benefit pension plans were $50 million, none of which were voluntary contributions made by the Company. The Company expects to contribute approximately $50 million in cash to its defined benefit pension plans in fiscal 2020. Projected benefit payments from the plans as of September 30, 2019 are estimated as follows (in millions):
2020 | $ | 311 |
2021 | 289 |
2022 | 294 |
2023 | 297 |
2024 | 303 |
2025-2029 | 1,487 |
Postretirement Benefits |
Defined Benefit Plan Disclosure [Line Items] |
Projected Benefit Payments from Plans | In fiscal 2019, total employer contributions for continuing operations to the postretirement plans were $3 million. The Company expects to contribute approximately $4 million in cash to its postretirement plans in fiscal 2020 for continuing operations. Projected benefit payments from the plans as of September 30, 2019 are estimated as follows (in millions):
2020 | $ | 17 |
2021 | 16 |
2022 | 16 |
2023 | 16 |
2024 | 15 |
2025-2029 | 58 |

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