Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Sep. 30, 2022

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, 2022 and 2021 were as follows:

(Millions of dollars)	Hedge Designation	2022		2021
Foreign exchange contracts (a)	Undesignated	$	2,766	$	2,735
Foreign currency-denominated debt (b)	Net investment hedges	2,140		2,543
Cross-currency swaps (c)	Net investment hedges	910		1,958

(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, 2022, 2021 and 2020 are detailed in Note 19.

(b)Represents foreign currency-denominated 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, 2022 and 2021 were as follows:

(Millions of dollars)	Hedge Designation	2022		2021
Interest rate swaps (a)	Fair value hedges	$	700	$	700
Forward starting interest rate swaps (b)	Cash flow hedges	500		1,000

(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.

(b)Represents interest rate derivatives entered into to mitigate exposure to interest rate risk related to future debt issuances.

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, 2022, 2021 and 2020 were as follows:

(Millions of dollars)	2022		2021		2020
Foreign currency-denominated debt	$	320	$	32	$	(106)
Cross-currency swaps (a)	173		(21)		(109)

(a)The amounts in 2022 and 2021 include a gain of $46 million and a loss of $35 million, respectively, recognized on terminated cross-currency swaps.