Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Net Pension and Other Postretirement Cost

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

	Pension Plans
(Millions of dollars)	2022		2021		2020
Service cost	$	134	$	150	$	153
Interest cost	77		71		84
Expected return on plan assets	(187)		(174)		(188)
Amortization of prior service credit	(15)		(16)		(13)
Amortization of loss	61		97		97
Curtailment/settlement loss	73		9		4
Net pension cost	$	143	$	137	$	137
Net pension cost included in the preceding table that is attributable to international plans	$	20	$	41	$	41

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)	2022		2021
Change in benefit obligation:
Beginning obligation	$	3,889	$	3,953
Service cost	134		150
Interest cost	77		71
Plan amendments	1		(30)
Benefits paid	(64)		(156)
Impact of Embecta spin-off	(7)		—
Actuarial gain	(1,007)		(69)
Curtailments/settlements	(246)		(49)
Other, includes translation	(143)		19
Benefit obligation at September 30	$	2,634	$	3,889
Change in fair value of plan assets:
Beginning fair value	$	3,222	$	3,045
Actual return on plan assets	(740)		317
Employer contribution	198		66
Benefits paid	(64)		(156)
Impact of Embecta spin-off	(6)		—
Settlements	(241)		(55)
Other, includes translation	(127)		5
Plan assets at September 30	$	2,242	$	3,222
Funded Status at September 30:
Unfunded benefit obligation	$	(392)	$	(667)
Amounts recognized in the Consolidated Balance Sheets at September 30:
Other Assets	$	70	$	29
Salaries, wages and related items	(15)		(29)
Long-term Employee Benefit Obligations	(447)		(667)
Net amount recognized	$	(392)	$	(667)
Amounts recognized in Accumulated other comprehensive income (loss) before income taxes at September 30:
Prior service credit	$	24	$	41
Net actuarial loss	(728)		(972)
Net amount recognized	$	(704)	$	(931)

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)	2022		2021		2022		2021
Projected benefit obligation	$	2,104	$	3,406	$	2,182	$	3,475
Accumulated benefit obligation	$	2,059	$	3,309
Fair value of plan assets	$	1,644	$	2,712	$	1,720	$	2,780

Weighted Average Assumptions Determining Pension Plan

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

	2022		2021		2020
Net Cost
Discount rate:
U.S. plans (a)	2.89	%	2.80	%	3.21	%
International plans	1.75		1.44		1.39
Expected return on plan assets:
U.S. plans	6.25		6.25		7.25
International plans	4.84		4.92		5.05
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
Benefit Obligation
Discount rate:
U.S. plans	5.62		2.89		2.80
International plans	4.26		1.75		1.44
Rate of compensation increase:
U.S. plans	4.51		4.31		4.30
International plans	2.86		2.63		2.20
Cash balance plan interest crediting rate:
U.S. plans	4.00		4.00		4.00
International plans	1.98		2.02		1.95

(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
2023	$	317
2024	153
2025	158
2026	175
2027	171
2028-2032	945

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, 2022 and 2021. 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
	2022		2021		2022		2021		2022		2021		2022		2021		2022		2021
Fixed Income:
Corporate bonds	$	492	$	679	$	—	$	—	$	258	$	297	$	234	$	382	$	—	$	—
Government and agency-U.S.	69		184		—		—		53		162		16		22		—		—
Government and agency-Foreign	22		46		—		—		—		—		22		46		—		—
Other fixed income	52		141		—		—		26		—		26		141		—		—
Equity securities	469		686		62		43		406		643		—		—		—		—
Cash and cash equivalents	243		168		—		—		243		168		—		—		—		—
Other	191		286		110		152		81		135		—		—		—		—
Fair value of plan assets	$	1,537	$	2,189	$	172	$	195	$	1,068	$	1,405	$	297	$	590	$	—	$	—

(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, 2022 and 2021.

					Basis of fair value measurement (See Note 1)
(Millions of dollars)	Total International Plan Asset Balances				Level 1				Level 2				Level 3 (a)
	2022		2021		2022		2021		2022		2021		2022		2021
Fixed Income:
Corporate bonds	$	33	$	55	$	19	$	37	$	14	$	18	$	—	$	—
Government and agency-U.S.	10		13		8		10		2		3		—		—
Government and agency-Foreign	180		264		167		249		13		15		—		—
Other fixed income	76		121		68		72		8		49		—		—
Equity securities	190		297		190		297		—		—		—		—
Cash and cash equivalents	7		14		7		14		—		—		—		—
Real estate	35		44		1		2		24		31		10		11
Insurance contracts	96		118		—		—		—		—		96		118
Other	76		107		48		84		7		8		21		15
Fair value of plan assets	$	705	$	1,033	$	508	$	765	$	68	$	124	$	128	$	145

(a)Changes in the fair value of international pension assets measured using Level 3 inputs for the years ended September 30, 2022 and 2021 were immaterial.