Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2019

Defined Benefit Plan Disclosure [Line Items]

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						Postretirement Benefits
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