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Benefit Plans (Tables)
 12 Months Ended
Sep. 30, 2015
Net Pension and Other Postretirement Cost
Net pension and other postretirement cost for the years ended September 30 included the following components:
 
Pension Plans
 
Other Postretirement Benefits
(Millions of dollars)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Service cost
$
77

 
$
71

 
$
84

 
$
3

 
$
3

 
$
6

Interest cost
87

 
93

 
87

 
7

 
9

 
10

Expected return on plan assets
(123
)
 
(126
)
 
(116
)
 
—

 
—

 
—

Amortization of prior service credit
(15
)
 
(15
)
 
(13
)
 
(5
)
 
(4
)
 
(1
)
Amortization of loss
68

 
49

 
75

 
3

 
2

 
4

Curtailment/settlement loss
—

 
3

 
6

 
—

 
—

 
—

Net pension and postretirement cost
$
93

 
$
74

 
$
123

 
$
9

 
$
10

 
$
19
Change in Benefit Obligation, Change in Fair Value of Plan Assets
The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Consolidated Balance Sheets for these plans were as follows:
 
Pension Plans
 
Other Postretirement
Benefits
(Millions of dollars)
2015
 
2014
 
2015
 
2014
Change in benefit obligation:
 
 
 
 
 
 
 
Beginning obligation
$
2,366

 
$
2,076

 
$
201

 
$
243

Service cost
77

 
71

 
3

 
3

Interest cost
87

 
93

 
7

 
9

Plan amendments
(2
)
 
(1
)
 
—

 
(37
)
Benefits paid
(138
)
 
(142
)
 
(18
)
 
(24
)
Benefit obligations assumed in acquisition
67

 
—

 
—

 
—

Actuarial loss (gain)
49

 
318

 
(11
)
 
—

Settlements
—

 
(7
)
 
—

 
—

Other, includes translation
(81
)
 
(42
)
 
3

 
6

Benefit obligation at September 30
2,426

 
2,366

 
186

 
201

Change in fair value of plan assets:
 
 
 
 
 
 
 
Beginning fair value
1,829

 
1,785

 
—

 
—

Actual return on plan assets
(21
)
 
119

 
—

 
—

Employer contribution
65

 
104

 
—

 
—

Benefits paid
(138
)
 
(142
)
 
—

 
—

Plan assets acquired in acquisition
54

 
—

 
—

 
—

Settlements
—

 
(7
)
 
—

 
—

Other, includes translation
(58
)
 
(29
)
 
—

 
—

Plan assets at September 30
$
1,732

 
$
1,829

 
$
—

 
$
—

Funded Status at September 30:
 
 
 
 
 
 
 
Unfunded benefit obligation
$
(694
)
 
$
(537
)
 
$
(186
)
 
$
(201
)
Amounts recognized in the Consolidated Balance
Sheets at September 30:
 
 
 
 
 
 
 
Other
$
7

 
$
3

 
$
—

 
$
—

Salaries, wages and related items
(10
)
 
(8
)
 
(15
)
 
(16
)
Long-term Employee Benefit Obligations
(691
)
 
(531
)
 
(171
)
 
(184
)
Net amount recognized
$
(694
)
 
$
(537
)
 
$
(186
)
 
$
(201
)
Amounts recognized in Accumulated other
comprehensive income (loss) before income taxes at September 30:
 
 
 
 
 
 
 
Net transition asset
$
—

 
$
—

 
$
—

 
$
—

Prior service credit
103

 
119

 
37

 
42

Net actuarial loss
(1,124
)
 
(1,030
)
 
(30
)
 
(44
)
Net amount recognized
$
(1,021
)
 
$
(911
)
 
$
7

 
$
(2
)
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)
2015
 
2014
 
2015
 
2014
Projected benefit obligation
$
2,339

 
$
2,267

 
$
2,394

 
$
2,324

Accumulated benefit obligation
$
2,265

 
$
2,186

 
 
 
 
Fair value of plan assets
$
1,650

 
$
1,738

 
$
1,693

 
$
1,784
Weighted Average Assumptions Determining Pension Plan
The weighted average assumptions used in determining pension plan information were as follows:
 
2015
 
2014
 
2013
 
Net Cost
 
 
 
 
 
 
Discount rate:
 
 
 
 
 
 
U.S. plans (A)
4.15
%
 
4.95
%
 
3.90
%
 
Foreign plans
3.14

 
3.87

 
3.94

 
Expected return on plan assets:
 
 
 
 
 
 
U.S. plans
7.50

 
7.75

 
7.75

 
Foreign plans
5.45

 
5.68

 
5.68

 
Rate of compensation increase:
 
 
 
 
 
 
U.S. plans (A)
4.25

 
4.25

 
4.25

 
Foreign plans
2.49

 
2.46

 
3.28

 
Benefit Obligation
 
 
 
 
 
 
Discount rate:
 
 
 
 
 
 
U.S. plans (B)
4.15

 
4.15

 
4.95

 
Foreign plans
2.84

 
3.14

 
3.87

 
Rate of compensation increase:
 
 
 
 
 
 
U.S. plans (A)
4.25

 
4.25

 
4.25

 
Foreign plans
2.33

 
2.49

 
2.46

 
 
(A)
Also used to determine other postretirement and postemployment benefit plan information.
(B)
The discount rates used to determine other postretirement benefit plan information in fiscal years 2015, 2014 and 2013 were 3.95%, 3.85% and 4.40%, respectively. The discount rates used to determine postemployment benefit plan information in fiscal years 2015, 2014 and 2013 were 3.75%, 3.75% and 4.00%, respectively.
Expected Benefit Payments
Expected benefit payments are as follows:
(Millions of dollars)
Pension
Plans
 
Other
Postretirement
Benefits
2016
$
163

 
$
15

2017
164

 
15

2018
164

 
15

2019
177

 
15

2020
175

 
15

2021-2025
870

 
67
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, 2015 and 2014. The categorization of fund investments is based upon the categorization of these funds’ underlying assets.
(Millions of dollars)
Total U.S.
Plan Asset
Balances at
September 30,
2015
 
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
 
Significant
Other
Observable
Inputs (Level 2)
 
Significant
Unobservable
Inputs (Level 3)
Fixed Income:
 
 
 
 
 
 
 
Mortgage and asset-backed securities
$
192

 
$
—

 
$
192

 
$
—

Corporate bonds
240

 
100

 
139

 
—

Government and agency-U.S.
78

 
53

 
24

 
—

Government and agency-Foreign
95

 
46

 
49

 
—

Equity securities
335

 
75

 
260

 
—

Cash and cash equivalents
96

 
96

 
—

 
—

Other
123

 
30

 
91

 
2

Fair value of plan assets
$
1,157

 
$
401

 
$
755

 
$
2

(Millions of dollars)
Total U.S.
Plan Asset
Balances at
September 30,
2014
 
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
 
Significant
Other
Observable
Inputs (Level 2)
 
Significant
Unobservable
Inputs (Level 3)
Fixed Income:
 
 
 
 
 
 
 
Mortgage and asset-backed securities
$
150

 
$
—

 
$
150

 
$
—

Corporate bonds
213

 
105

 
108

 
—

Government and agency-U.S.
153

 
124

 
29

 
—

Government and agency-Foreign
126

 
74

 
51

 
—

Equity securities
393

 
56

 
337

 
—

Cash and cash equivalents
26

 
26

 
—

 
—

Other
193

 
96

 
93

 
4

Fair value of plan assets
$
1,255

 
$
483

 
$
768

 
$
4
Fair Value Measurements of Foreign Plan Assets
The following table provides the fair value measurements of foreign plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2015 and 2014.
(Millions of dollars)
Total Foreign
Plan Asset
Balances at
September 30,
2015

Quoted Prices in
Active Markets
for Identical
Assets (Level 1)

Significant
Other
Observable
Inputs (Level 2)

Significant
Unobservable
Inputs (Level 3)
Fixed Income:







Corporate bonds
$
33


$
3


$
30


$
—

Government and agency-U.S.
1


1


—


—

Government and agency-Foreign
101


65


36


—

Other fixed income
48


46


2


—

Equity securities
206


187


19


—

Cash and cash equivalents
8


8


—


—

Real estate
13


—


13


—

Insurance contracts
90


—


—


90

Other
74


53


21


—

Fair value of plan assets
$
575


$
364


$
121


$
90


(Millions of dollars)
Total Foreign
Plan Asset
Balances at
September 30,
2014
 
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
 
Significant
Other
Observable
Inputs (Level 2)
 
Significant
Unobservable
Inputs (Level 3)
Fixed Income:
 
 
 
 
 
 
 
Corporate bonds
$
35

 
$
—

 
$
35

 
$
—

Government and agency-U.S.
3

 
3

 
—

 
—

Government and agency-Foreign
100

 
59

 
41

 
—

Other fixed income
47

 
46

 
1

 
—

Equity securities
237

 
221

 
17

 
—

Cash and cash equivalents
15

 
15

 
—

 
—

Real estate
10

 
—

 
10

 
—

Insurance contracts
78

 
—

 
—

 
78

Other
47

 
12

 
35

 
—

Fair value of plan assets
$
574

 
$
357

 
$
138

 
$
78
Postemployment Benefit Costs
Postemployment benefit costs for the years ended September 30 included the following components:
(Millions of dollars)
2015
 
2014
 
2013
Service cost
$
18

 
$
20

 
$
22

Interest cost
6

 
7

 
6

Amortization of prior service credit
(2
)
 
(2
)
 
(2
)
Amortization of loss
18

 
21

 
21

Net postemployment benefit cost
$
42

 
$
47

 
$
47
Changes in Benefit Obligation for Postemployment Benefits
The changes in benefit obligation for these postemployment benefits were as follows:
 
Postemployment benefits
(Millions of dollars)
2015
 
2014
Change in benefit obligation:
 
 
 
Beginning obligation
$
184

 
$
186

Service cost
18

 
20

Interest cost
6

 
7

Benefits paid
(25
)
 
(30
)
Actuarial (gain) loss
(22
)
 
1

Benefit obligation at September 30
$
163

 
$
184
U.S. Plans  
Changes in Fair Value Pension Assets Measured Using Level 3 Inputs
The following table summarizes the changes, for the years ended September 30, 2015 and 2014, in the fair value of U.S. pension assets measured using Level 3 inputs:
(Millions of dollars)
Other
(Hedge
Funds)
Balance at September 30, 2013
$
12

Actual return on plan assets:
 
Relating to assets held at September 30, 2013
1

Purchases, sales and settlements, net
4

Transfers (out) in from other categories
(13
)
Exchange rate changes
—

Balance at September 30, 2014
$
4

Actual return on plan assets:
 
Relating to assets held at September 30, 2014
—

Purchases, sales and settlements, net
1

Transfers (out) in from other categories
(3
)
Exchange rate changes
—

Balance at September 30, 2015
$
2
Foreign Plans  
Changes in Fair Value Pension Assets Measured Using Level 3 Inputs
The following table summarizes the changes, for the years ended September 30, 2015 and 2014, in the fair value of foreign pension assets measured using Level 3 inputs:
(Millions of dollars)
Real
Estate
 
Insurance
Contracts
 
Total
Assets
Balance at September 30, 2013
$
1

 
$
81

 
$
83

Actual return on plan assets:
 
 
 
 
 
Relating to assets held at September 30, 2013
—

 
1

 
1

Purchases, sales and settlements, net
—

 
3

 
3

Transfers (out) in from other categories
(1
)
 
(2
)
 
(3
)
Exchange rate changes
—

 
(6
)
 
(6
)
Balance at September 30, 2014
$
—

 
$
78

 
$
78

Actual return on plan assets:
 
 
 
 
 
Relating to assets held at September 30, 2014
—

 
4

 
4

Purchases, sales and settlements, net
—

 
16

 
16

Transfers in from other categories
—

 
1

 
1

Exchange rate changes
—

 
(9
)
 
(9
)
Balance at September 30, 2015
$
—

 
$
90

 
$
90