Supplemental Financial Information

12 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Financial Information

Supplemental Financial Information

Other Income, Net

(Millions of dollars)	2020		2019		2018
Royalty and licensing income (a)	$	17	$	64	$	51
Other investment gains, net	13		18		8
Deferred compensation	24		6		3
Net pension and postretirement benefit cost (b)	7		(2)		(13)
Losses on undesignated foreign exchange derivatives, net	(17)		(23)		(14)
Losses on debt extinguishment (c)	(8)		(59)		(16)
Product related matters	(9)		—		—
Hurricane-related insurance proceeds	—		35		—
Vyaire Medical-related amounts and other income from divestitures (d)	—		6		288
Other	(3)		(2)		(3)
Other income, net	$	23	$	43	$	305

(a)The amount in 2020 primarily represents licensing income. The amounts in 2019 and 2018 primarily represent the royalty income stream acquired in the Bard transaction, net of non-cash purchase accounting amortization. The royalty income stream was previously reported by Bard as revenues.

(b)Represents all components of the Company’s net periodic pension and postretirement benefit costs, aside from service cost, as a result of the adoption of an accounting standard as further discussed in Note 2.

(c)Represents losses recognized upon the extinguishment of certain senior notes, as further discussed in Note 16.

(d)The amount in 2019 represents income from transition services agreements (“TSA”) related to the Company’s 2018 and 2017 divestitures.  The amount in 2018 includes the gain on the sale of the remaining ownership interest in its former Respiratory Solutions business and subsequent TSA income, net of the Company's share of equity investee results in the business.  Additional disclosures regarding the Company’s divestiture transactions are provided in Note 11.

Trade Receivables, Net

The amounts recognized in 2020, 2019 and 2018 relating to allowances for doubtful accounts and cash discounts, which are netted against trade receivables, are provided in the following table:

(Millions of dollars)	Allowance for Doubtful Accounts			Allowance for Cash Discounts		Total
Balance at September 30, 2017	$	54		$	4	$	58
Additions charged to costs and expenses	31			58		89
Deductions and other	(11)		(a)	(50)		(61)
Balance at September 30, 2018	$	75		$	12	$	86
Additions charged to costs and expenses	31			94		125
Deductions and other	(31)		(a)	(92)		(123)
Balance at September 30, 2019	$	75		$	13	$	88
Additions charged to costs and expenses	40			39		78
Deductions and other	(35)		(a)	(38)		(73)
Balance at September 30, 2020	$	80		$	14	$	94

(a)Accounts written off.

Inventories

Inventories at September 30 consisted of:

(Millions of dollars)	2020		2019
Materials	$	602	$	544
Work in process	335		318
Finished products	1,806		1,717
	$	2,743	$	2,579

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net at September 30 consisted of:

(Millions of dollars)	2020		2019
Land	$	166	$	164
Buildings	3,082		2,842
Machinery, equipment and fixtures	8,454		7,932
Leasehold improvements	216		190
	11,919		11,128
Less accumulated depreciation and amortization	5,996		5,469
	$	5,923	$	5,659