Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2021

Net Pension and Other Postretirement Cost

Net pension cost for the years ended September 30 included the following components:

	Pension Plans
(Millions of dollars)	2021		2020		2019
Service cost	$	150	$	153	$	134
Interest cost	71		84		107
Expected return on plan assets	(174)		(188)		(180)
Amortization of prior service credit	(16)		(13)		(13)
Amortization of loss	97		97		78
Curtailment/settlement loss	9		4		10
Net pension cost	$	137	$	137	$	135
Net pension cost included in the preceding table that is attributable to international plans	$	41	$	41	$	32

Change in Benefit Obligation, Change in Fair Value of Plan Assets

The change in benefit obligation, change in fair value of pension plan assets, funded status and amounts recognized in the Consolidated Balance Sheets for these plans were as follows:

	Pension Plans
(Millions of dollars)	2021		2020
Change in benefit obligation:
Beginning obligation	$	3,953	$	3,731
Service cost	150		153
Interest cost	71		84
Plan amendments	(30)		—
Benefits paid	(156)		(186)
Impact of acquisitions	—		10
Actuarial (gain) loss	(69)		104
Curtailments/settlements	(49)		(17)
Other, includes translation	19		74
Benefit obligation at September 30	$	3,889	$	3,953
Change in fair value of plan assets:
Beginning fair value	$	3,045	$	2,926
Actual return on plan assets	317		222
Employer contribution	66		42
Benefits paid	(156)		(186)
Impact of acquisitions	—		7
Settlements	(55)		(17)
Other, includes translation	5		51
Plan assets at September 30	$	3,222	$	3,045
Funded Status at September 30:
Unfunded benefit obligation	$	(667)	$	(908)
Amounts recognized in the Consolidated Balance Sheets at September 30:
Other	$	29	$	16
Salaries, wages and related items	(29)		(23)
Long-term Employee Benefit Obligations	(667)		(901)
Net amount recognized	$	(667)	$	(908)
Amounts recognized in Accumulated other comprehensive income (loss) before income taxes at September 30:
Prior service credit	$	41	$	31
Net actuarial loss	(972)		(1,281)
Net amount recognized	$	(931)	$	(1,250)

Pension Plans with Accumulated Benefit Obligations

Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consist of the following at September 30:

	Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets				Projected Benefit Obligation Exceeds the Fair Value of Plan Assets
(Millions of dollars)	2021		2020		2021		2020
Projected benefit obligation					$	3,475	$	3,920
Accumulated benefit obligation	$	3,309	$	3,703
Fair value of plan assets	$	2,712	$	2,936	$	2,780	$	2,996

Weighted Average Assumptions Determining Pension Plan

The weighted average assumptions used in determining pension plan information were as follows:

	2021		2020		2019
Net Cost
Discount rate:
U.S. plans (a)	2.80	%	3.21	%	4.26	%
International plans	1.44		1.39		2.30
Expected return on plan assets:
U.S. plans	6.25		7.25		7.25
International plans	4.92		5.05		4.98
Rate of compensation increase:
U.S. plans	4.30		4.29		4.29
International plans	2.20		2.35		2.36
Cash balance plan interest crediting rate:
U.S. plans	4.00		4.00		4.00
International plans	1.95		1.97		1.84
Benefit Obligation
Discount rate:
U.S. plans	2.89		2.80		3.21
International plans	1.75		1.44		1.39
Rate of compensation increase:
U.S. plans	4.31		4.30		4.29
International plans	2.63		2.20		2.35
Cash balance plan interest crediting rate:
U.S. plans	4.00		4.00		4.00
International plans	2.02		1.95		1.97

(a)The Company calculated the service and interest components utilizing an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period.

Expected Benefit Payments

Expected benefit payments are as follows:

(Millions of dollars)	Pension Plans
2022	$	242
2023	174
2024	178
2025	189
2026	206
2027-2031	1,113

Fair Value Measurements of U.S. Plan Assets

The following table provides the fair value measurements of U.S. plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2021 and 2020. The categorization of fund investments is based upon the categorization of these funds’ underlying assets.

									Basis of fair value measurement (See Note 1)
(Millions of dollars)	Total U.S. Plan Asset Balances				Investments Measured at Net Asset Value (a)				Level 1				Level 2				Level 3
	2021		2020		2021		2020		2021		2020		2021		2020		2021		2020
Fixed Income:
Corporate bonds	$	679	$	656	$	—	$	—	$	297	$	273	$	382	$	383	$	—	$	—
Government and agency-U.S.	184		95		—		—		162		74		22		21		—		—
Government and agency-Foreign	46		40		—		—		—		—		46		40		—		—
Other fixed income	141		141		—		—		—		—		141		141		—		—
Equity securities	686		737		43		43		643		694		—		—		—		—
Cash and cash equivalents	168		147		—		—		168		147		—		—		—		—
Other	286		291		152		151		135		141		—		—		—		—
Fair value of plan assets	$	2,189	$	2,108	$	195	$	193	$	1,405	$	1,330	$	590	$	584	$	—	$	—

(a)As per applicable disclosure requirements, certain investments that were measured at net asset value per share or its equivalent have not been categorized within the fair value hierarchy. Values of such assets are based on the corroborated net asset value provided by the fund administrator.

Fair Value Measurements of Foreign Plan Assets

The following table provides the fair value measurements of international plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2021 and 2020.

									Basis of fair value measurement (See Note 1)
(Millions of dollars)	Total International Plan Asset Balances				Investments Measured at Net Asset Value				Level 1				Level 2				Level 3 (a)
	2021		2020		2021		2020		2021		2020		2021		2020		2021		2020
Fixed Income:
Corporate bonds	$	55	$	34	$	—	$	—	$	37	$	15	$	18	$	19	$	—	$	—
Government and agency-U.S.	13		3		—		—		10		—		3		3		—		—
Government and agency-Foreign	264		212		—		—		249		115		15		97		—		—
Other fixed income	121		102		—		—		72		63		49		39		—		—
Equity securities	297		335		—		—		297		335		—		—		—		—
Cash and cash equivalents	14		12		—		—		14		12		—		—		—		—
Real estate	44		34		—		—		2		—		31		24		11		10
Insurance contracts	118		131		—		—		—		—		—		—		118		131
Other	107		72		—		—		84		70		8		1		15		—
Fair value of plan assets	$	1,033	$	935	$	—	$	—	$	765	$	611	$	124	$	183	$	145	$	141

(a)Changes in the fair value of international pension assets measured using Level 3 inputs for the years ended September 30, 2021 and 2020 were immaterial.