Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts of the Company’s foreign currency-related derivative instruments as of September 30, 2021 and 2020 were as follows:

(Millions of dollars)	Hedge Designation	2021		2020
Foreign exchange contracts (a)	Undesignated	$	2,735	$	2,519
Foreign currency-denominated debt (b)	Net investment hedges	2,543		1,522
Cross-currency swaps (c)	Net investment hedges	1,958		2,971

(a)Represent hedges of transactional foreign exchange exposures resulting primarily from intercompany payables and receivables. Gains and losses on these instruments are recognized immediately in income. These gains and losses are largely offset by gains and losses on the underlying hedged items, as well as the hedging costs associated with the derivative instruments. Net amounts recognized in Other (expense) income, net, during the years ending September 30, 2021, 2020 and 2019 are detailed in Note 18.

(b)Represents foreign currency-denominated long-term notes outstanding which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries.

(c)Represents cross-currency swaps which were effective as economic hedges of net investments in certain of the Company's foreign subsidiaries.

The notional amounts of the Company’s interest rate-related derivative instruments as of September 30, 2021 and 2020 were as follows:

(Millions of dollars)	Hedge Designation	2021		2020
Interest rate swaps (a)	Fair value hedges	$	700	$	375
Forward starting interest rate swaps (b)	Cash flow hedges	1,000		1,500

(a)Represents fixed-to-floating interest rate swap agreements the Company entered into to convert the interest payments on certain long-term notes from the fixed rate to a floating interest rate based on LIBOR. In fiscal year 2021, certain interest rate swaps were terminated at an immaterial net gain, concurrently with the redemption of the 3.125% notes due November 8, 2021.

(b)Represents interest rate derivatives entered into to mitigate exposure to interest rate risk related to future debt issuances. Concurrently with the issuance of senior unsecured U.S. notes in the second quarter of fiscal year 2021, the notional amount of $500 million of the Company's outstanding forward starting interest rate swaps were terminated at an immaterial net loss.

Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)

Net gains (losses) recorded to Accumulated other comprehensive income (loss) relating to the Company's net investment hedges as of September 30, 2021, 2020 and 2019 were as follows:

(Millions of dollars)	2021		2020		2019
Foreign currency-denominated debt	$	32	$	(106)	$	138
Cross-currency swaps (a)	(21)		(109)		73
Foreign currency forward contract (b)	—		—		(9)

(a)The amount in 2021 includes a loss of $35 million recognized on terminated cross-currency swaps.

(b)The amount in 2019 represented a loss recognized on a forward contract which was entered into and terminated in fiscal year 2019.