Shareholders' Equity (Tables)

12 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Changes in Certain Components of Shareholders' Equity

Changes in certain components of shareholders’ equity were as follows:

	Common Stock  Issued at Par Value		Capital in Excess of Par Value			Retained Earnings			Deferred Compensation			Treasury Stock
(Millions of dollars)												Shares (in thousands)		Amount
Balance at September 30, 2016	$	333	$	4,693		$	12,727		$	22		(119,371	)	$	(8,212	)
Net income	—		—			1,100			—			—		—
Cash dividends:
Common ($2.92 per share)	—		—			(645		)	—			—		—
Preferred	—		—			(70		)	—			—		—
Common stock issued for:
Public equity offerings (a)	14		4,810			—			—			—		—
Share-based compensation and other plans, net	—		(65		)	(1		)	(3		)	1,908		6
Share-based compensation	—		180			—			—			—		—
Common stock held in trusts, net (b)	—		—			—			—			7		—
Repurchase of common stock (c)	—		—			—			—			(1,289	)	(220		)
Balance at September 30, 2017	$	347	$	9,619		$	13,111		$	19		(118,745	)	$	(8,427	)
Net income	—		—			311			—			—		—
Cash dividends:
Common ($3.00 per share)	—		—			(775		)	—			—		—
Preferred	—		—			(152		)	—			—		—
Common stock issued for:
Acquisition (see Note 10)	—		6,478			—			—			37,306		2,121
Share-based compensation and other plans, net	—		(246		)	(2		)	3			2,982		62
Share-based compensation	—		328			—			—			—		—
Common stock held in trusts, net (b)	—		—			—			—			(6	)	—
Effect of change in accounting principle (see Note 2 and further discussion below)	—		—			103			—			—		—
Balance at September 30, 2018	$	347	$	16,179		$	12,596		$	22		(78,463	)	$	(6,243	)
Net income	—		—			1,233			—			—		—
Cash dividends:
Common ($3.08 per share)	—		—			(832		)	—			—		—
Preferred	—		—			(152		)	—			—		—
Common stock issued for share-based compensation and other plans, net	—		(170		)	(1		)	1			2,155		53
Share-based compensation	—		261			—			—			—		—
Common stock held in trusts, net (b)	—		—			—			—			48		—
Effect of change in accounting principle (see Note 2)	—		—			68			—			—		—
Balance at September 30, 2019	$	347	$	16,270		$	12,913		$	23		(76,260	)	$	(6,190	)

(a) In May 2017 and in connection with the Company's acquisition of Bard, which is further discussed in Note 10, the Company completed registered public offerings of equity securities including 14.025 million shares of the Company's common stock and 2.475 million shares of the Company's mandatory convertible preferred stock (ownership is held in the form of depositary shares, each

representing a 1/20th interest in a share of preferred stock) for total net proceeds of $4.8 billion. If and when declared, dividends on the mandatory convertible preferred stock are payable on a cumulative basis at an annual rate of 6.125% on the liquidation preference of $1,000 per preferred share ($50 per depositary share).  The shares of preferred stock are convertible to a minimum of 11.7 million and up to a maximum of 14.0 million shares of Company common stock at an exchange ratio that is based on the market price of the Company’s common stock at the date of conversion, and no later than the mandatory conversion date of May 1, 2020.

(b) Common stock held in trusts represents rabbi trusts in connection with deferred compensation under the Company’s employee salary and bonus deferral plan and directors’ deferral plan.

(c)

Using proceeds received from the divestiture of the Respiratory Solutions business in the first quarter of fiscal year 2017, the Company repurchased shares of its common stock under an accelerated share repurchase agreement.

Accumulated Other Comprehensive (Loss) Income

The components and changes of Accumulated other comprehensive income (loss) were as follows:

(Millions of dollars)	Total			Foreign Currency Translation			Benefit Plans			Cash Flow Hedges
Balance at September 30, 2016	$	(1,929	)	$	(1,011	)	$	(883	)	$	(35	)
Other comprehensive income before reclassifications, net of taxes	140			11			121			8
Amounts reclassified into income, net of taxes	66			—			58			8
Balance at September 30, 2017	$	(1,723	)	$	(1,001	)	$	(703	)	$	(18	)
Other comprehensive (loss) income before reclassifications, net of taxes	(142		)	(161		)	19			—
Amounts reclassified into income, net of taxes	57			—			52			5
Tax effects reclassified to retained earnings	(103		)	—			(99		)	(4		)
Balance at September 30, 2018	$	(1,909	)	$	(1,162	)	$	(729	)	$	(17	)
Other comprehensive loss before reclassifications, net of taxes	(427		)	(93		)	(325		)	(9		)
Amounts reclassified into income, net of taxes	52			—			49			3
Balance at September 30, 2019	$	(2,283	)	$	(1,256	)	$	(1,005	)	$	(23	)

Other Comprehensive Income (Loss), Tax

The tax impacts for amounts recognized in other comprehensive income before reclassifications were as follows:

(Millions of dollars)	2019		2018			2017
Benefit Plans
Income tax benefit (provision) for net (losses) gains recorded in other comprehensive income	$	91	$	(19	)	$	(60	)