Derivative Financial Instruments

3 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The Company uses derivative financial instruments, primarily foreign currency forward exchange contracts, for the purposes of managing foreign currency exchange rate risk on expected future cash flows.

As of December 31, 2024, the Company had outstanding foreign currency forward exchange contracts for the sale of $438 million and the purchase of $260 million of foreign currencies at fixed rates that will be settled by September 2025. As of September 30, 2024, the Company had no foreign currency forward exchange contracts outstanding.

The Company recorded realized pre-tax gains of $3 million and unrealized pre-tax gains of $12 million related to its foreign currency forward exchange contracts in the condensed consolidated statement of operations as other expense for the three months ended December 31, 2024. The Company recorded no realized pre-tax gains or losses and recorded unrealized pre-tax losses of $6 million related to its foreign currency forward exchange contracts in the condensed consolidated statement of operations as other expense for the three months ended December 31, 2023.

The following is a summary of amounts recorded in the consolidated balance sheets pertaining to the Company’s derivative instruments at December 31, 2024 and September 30, 2024:


	December 31, 2024	September 30, 2024
	(in millions)
Other Current Assets:
Foreign currency forward exchange contracts (a)	15	—

Other Current Liabilities:
Foreign currency forward exchange contracts (a)	(3)	—

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(a)Includes $29 million and $17 million of foreign exchange derivative contracts in asset and liability positions, respectively, which net to $15 million of current assets and $3 million of current liabilities, respectively.