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Fair Value Measurements | 12 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value (in millions):
| Fair Value Measurements Using:
| Total as of September 30, 2023 |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Other current assets |  |  |  |  |  |  |
Foreign currency exchange derivatives | $ | 29 |  |  | $ | — |  |  | $ | 29 |  |  | $ | — |
Interest rate swaps | 22 |  |  | — |  |  | 22 |  |  | — |
Other noncurrent assets |  |  |  |  |  |  |
Cross-currency interest rate swap | 5 |  |  | — |  |  | 5 |  |  | — |
Deferred compensation plan assets | 45 |  |  | 45 |  |  | — |  |  | — |
Exchange traded funds (fixed income)1 | 76 |  |  | 76 |  |  | — |  |  | — |
Exchange traded funds (equity)1 | 155 |  |  | 155 |  |  | — |  |  | — |
Total assets | $ | 332 |  |  | $ | 276 |  |  | $ | 56 |  |  | $ | — |
Other current liabilities |  |  |  |  |  |  |
Foreign currency exchange derivatives | $ | 25 |  |  | $ | — |  |  | $ | 25 |  |  | $ | — |
Commodity derivatives | 2 |  |  | — |  |  | 2 |  |  | — |
Contingent earn-out liabilities | 48 |  |  | — |  |  | — |  |  | 48 |
Other noncurrent liabilities |  |  |  |  |  |  |
Contingent earn-out liabilities | 76 |  |  | — |  |  | — |  |  | 76 |
Total liabilities | $ | 151 |  |  | $ | — |  |  | $ | 27 |  |  | $ | 124 |
| Fair Value Measurements Using:
| Total as of September 30, 2022 |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Other current assets |  |  |  |  |  |  |
Foreign currency exchange derivatives | $ | 54 |  |  | $ | — |  |  | $ | 54 |  |  | $ | — |
Exchange traded funds (fixed income)1 | 22 |  |  | 22 |  |  | — |  |  | — |
Other noncurrent assets |  |  |  |  |  |  |
Deferred compensation plan assets | 46 |  |  | 46 |  |  | — |  |  | — |
Exchange traded funds (fixed income)1 | 86 |  |  | 86 |  |  | — |  |  | — |
Exchange traded funds (equity)1 | 131 |  |  | 131 |  |  | — |  |  | — |
Total assets | $ | 339 |  |  | $ | 285 |  |  | $ | 54 |  |  | $ | — |
Other current liabilities |  |  |  |  |  |  |
Foreign currency exchange derivatives | $ | 51 |  |  | $ | — |  |  | $ | 51 |  |  | $ | — |
Commodity derivatives | 10 |  |  | — |  |  | 10 |  |  | — |
Contingent earn-out liabilities | 30 |  |  | — |  |  | — |  |  | 30 |
Other noncurrent liabilities |  |  |  |  |  |  |
Contingent earn-out liabilities | 30 |  |  | — |  |  | — |  |  | 30 |
Total liabilities | $ | 121 |  |  | $ | — |  |  | $ | 61 |  |  | $ | 60 |
1 Classified as restricted investments for payment of asbestos liabilities. Refer to Note 21, "Commitments and Contingencies" of the notes to consolidated financial statements for further details. The following table summarizes the changes in contingent earn-out liabilities, which are valued using significant unobservable inputs (Level 3) (in millions):
Balance at September 30, 2022 | $ | 60 |  |
Acquisitions | 112 |  |
Payments | (10) |  |
Reduction for change in estimates | (39) |  |
Currency translation | 1 |  |
Balance at September 30, 2023 | $ | 124 |  |
Valuation Methods Commodity derivatives: The commodity derivatives are valued under a market approach using publicized prices, where available, or dealer quotes. Contingent earn-out liabilities: The contingent earn-out liabilities are generally established using a Monte Carlo simulation based on the forecasted operating results and the earn-out formulas specified in the purchase agreements. Cross-currency interest rate swaps: The fair value of cross-currency interest rate swaps represents the difference between the swap's reference rate and exchange rate and the interest and exchange rates for a similar instrument as of the reporting period. Cross-currency interest rate swaps are valued under a market approach using publicized prices. Deferred compensation plan assets: Assets held in the deferred compensation plans will be used to pay benefits under certain of the Company's non-qualified deferred compensation plans. The investments primarily consist of mutual funds which are publicly traded on stock exchanges and are valued using a market approach based on the quoted market prices. Unrealized gains (losses) on the deferred compensation plan assets are recognized in the consolidated statements of income where they offset unrealized gains and losses on the related deferred compensation plan liability. Foreign currency exchange derivatives: The foreign currency exchange derivatives are valued under a market approach using publicized spot and forward prices. Interest rate swaps: The fair value of interest rate swaps represents the difference between the swap's reference rate and the interest rate for a similar instrument as of the reporting period. Interest rate swaps are valued under a market approach using publicized prices. Investments in exchange traded funds: Investments in exchange traded funds are valued using a market approach based on quoted market prices, where available, or broker/dealer quotes of identical or comparable instruments. Refer to Note 21, "Commitments and Contingencies," of the notes to consolidated financial statements for further information. The following table presents the portion of unrealized gains (losses) recognized in the consolidated statements of income that relate to equity securities still held at September 30, 2023 and 2022 (in millions):
|  | Year Ended September 30, |
| 2023 |  | 2022 |
Deferred compensation plan assets |  | $ | 5 |  |  | $ | (10) |  |
Investments in exchange traded funds |  | 24 |  |  | (55) |  |
All of the gains and losses on investments in exchange traded funds related to restricted investments. The fair values of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The fair value of long-term debt at September 30, 2023 and 2022 was as follows (in billions):
|  | Year Ended September 30, |
| 2023 |  | 2022 |
Public debt |  | $ | 7.1 |  |  | $ | 7.1 |  |
Other long-term debt |  | 0.4 |  |  | 0.2 |  |
Total fair value of long-term debt |  | $ | 7.5 |  |  | $ | 7.3 |  |
The fair value of public debt was determined primarily using market quotes which are classified as Level 1 inputs within the ASC 820 fair value hierarchy. The fair value of other long-term debt was determined using quoted market prices for similar instruments and are classified as Level 2 inputs within the ASC 820 fair value hierarchy.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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