Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2022

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Summary of Financial Instruments Subject to Recurring Fair Value Measurements

The following table summarizes financial instruments subject to recurring fair value measurements as of June 30, 2022.

	Carrying		Total fair		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
(In millions)	value		value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	629	$	629	$	629	$	—	$	—
Restricted investments (a) (b)		407		407		407		—		—
Investment of captive insurance company (c)		9		9		9		—		—
Foreign currency derivatives (d)		2		2		—		2		—
Commodity derivatives (d)		3		3		—		3		—
Total assets at fair value	$	1,050	$	1,050	$	1,045	$	5	$	—
Liabilities
Foreign currency derivatives (e)	$	3	$	3	$	—	$	3	$	—
Commodity derivatives (e)		2		2		—		2		—
Total liabilities at fair value	$	5	$	5	$	—	$	5	$	—

(a)Included in restricted investments and $61 million within other current assets in the Condensed Consolidated Balance Sheets.

(b)Includes $269 million related to the Asbestos trust and $138 million related to the Environmental trust.

(c)Included in other noncurrent assets in the Condensed Consolidated Balance Sheets.

(d)Included in accounts receivable in the Condensed Consolidated Balance Sheets.

(e)Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets.

The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2021.

	Carrying		Total fair		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
(In millions)	value		value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	210	$	210	$	210	$	—	$	—
Restricted investments (a) (b)		421		421		421		—		—
Investment of captive insurance company (c)		8		8		8		—		—
Foreign currency derivatives (d)		1		1		—		1		—
Commodity derivatives (d)		5		5		—		5		—
Total assets at fair value	$	645	$	645	$	639	$	6	$	—
Liabilities
Foreign currency derivatives (e)	$	2	$	2	$	—	$	2	$	—

(a)Included in restricted investments and $37 million within other current assets in the Condensed Consolidated Balance Sheets.

(b)Includes $333 million related to the Asbestos trust and $88 million related to the Environmental trust.

(c)Included in other noncurrent assets in the Condensed Consolidated Balance Sheets.

(d)Included in accounts receivable in the Condensed Consolidated Balance Sheets.

(e)Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets.

Summary of Investment Portfolio

The following table provides a summary of the activity within the investment portfolio as of June 30, 2022 and September 30, 2021:

(In millions)	June 30 2022			September 30 2021
Original cost	$	335		$	335
Accumulated adjustments, net		37			(50	)
Adjusted cost, beginning of year (a)		372			285
Investment income (b)		13			12
Net unrealized gain (loss) (c)		(25	)		49
Realized gains (losses) (c)		1			17
Funds restricted for specific transactions (d)		74			91
Disbursements		(28	)		(33	)
Fair value	$	407		$	421

(a)The adjusted cost of the demand deposits includes accumulated investment income, realized gains, additional funds restricted for specific transactions and disbursements recorded in previous periods. The adjusted cost as of June 30, 2022 includes the $90 million funding to establish the Environmental trust.

(b)Investment income relates to the demand deposit and includes interest income as well as dividend income transferred from the equity and fixed income mutual funds.

(c)Presented under the original cost method.

(d)The June 30, 2022 period included additional contributions to the Environmental trust from proceeds associated with the Performance Adhesives sale and excess land sales. The September 30, 2021 period included $90 million to establish the Environmental trust.

The following table presents gross unrealized gains and losses for the restricted investment securities as of June 30, 2022 and September 30, 2021:

			Gross		Gross
(In millions)	Adjusted Cost		Unrealized Gain		Unrealized Loss			Fair Value
As of June 30, 2022
Demand deposit	$	7	$	—	$	—		$	7
Equity mutual fund		178		23		(13	)		188
Fixed income mutual fund		247		—		(35	)		212
Fair value	$	432	$	23	$	(48	)	$	407
As of September 30, 2021
Demand deposit	$	6	$	—	$	—		$	6
Equity mutual fund		143		44		(1	)		186
Fixed income mutual fund		223		7		(1	)		229
Fair value	$	372	$	51	$	(2	)	$	421

Summary of Investment Income, Net Gains and Losses Realized and Disbursements Related to Investments

The following table presents the investment income, net gains and losses realized and disbursements related to the investments within the portfolio for the three and nine months ended June 30, 2022 and 2021.

	Three months ended						Nine months ended
	June 30						June 30
(In millions)	2022			2021			2022			2021
Investment income	$	3		$	2		$	13		$	10
Net gains (losses)		(48	)		15			(72	)		26
Disbursements		—			(6	)		(28	)		(25	)

Summary of Net Gains and Losses on Foreign Currency Derivatives

The following table summarizes the net gains and losses recognized during the three and nine months ended June 30, 2022 and 2021 within the Statements of Consolidated Comprehensive Income (Loss).

	Three months ended					Nine months ended
	June 30					June 30
(In millions)	2022			2021		2022			2021
Foreign currency derivative gain (loss)	$	(12	)	$	3	$	(21	)	$	6

Summary of Fair Values of Outstanding Foreign Currency Derivatives

The following table summarizes the fair values of the outstanding foreign currency derivatives as of June 30, 2022 and September 30, 2021 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets.

	June 30		September 30
(In millions)	2022		2021
Foreign currency derivative assets	$	2	$	1
Notional contract values		244		150
Foreign currency derivative liabilities	$	3	$	2
Notional contract values		263		212

Commodity Derivatives [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Summary of Net Gains and Losses on Derivatives

The following table summarizes the net gains and losses recognized during the three and nine months ended June 30, 2022 and 2021 within the cost of sales caption of the Statements of Consolidated Comprehensive Income (Loss).

	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2022		2021		2022		2021
Commodity derivative gain (loss)	$	2	$	—	$	6	$	—

Summary of Fair Values of Outstanding Derivatives

The following table summarizes the fair values of the outstanding commodity derivatives as of June 30, 2022, and September 30, 2021 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets.

	June 30		September 30
(In millions)	2022		2021
Commodity derivative assets	$	3	$	5
Notional contract values		12		6
Commodity derivative liabilities	$	2	$	—
Notional contract values		10		—

Total Return Derivatives [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Summary of Net Gains and Losses on Derivatives

The following table summarized the net gains and losses recognized for the three and nine months ended June 30, 2022 and 2021 within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss).

	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2022		2021		2022		2021
Total return swap gain (loss)	$	—	$	—	$	—	$	—

Summary of Fair Values of Outstanding Derivatives

The following table summarizes the fair values of the outstanding TRS as of June 30, 2022 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets.

	June 30		September 30
(In millions)	2022		2021
Total return swap assets	$	—	$	—
Notional contract values		8		—