XML 67 R45.htm IDEA: XBRL DOCUMENT v3.8.0.1
Financial Instruments (Tables)
 12 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Instruments
The following table summarizes our outstanding interest rate management contracts and cross currency interest rate swaps:
 
 
30 September 2017
 
30 September 2016
 
 
US$
Notional

 
Average Pay %

 
Average
Receive
%

 
Years
Average
Maturity
 
US$
Notional

 
Average Pay %

 
Average
Receive
%

 
Years
Average
Maturity
Interest rate swaps (fair value hedge)
 
$
600.0

 
LIBOR

 
2.28
%
 
1.3
 
$
600.0

 
LIBOR

 
2.28
%
 
2.3
Cross currency interest rate swaps (net investment hedge)
 
$
539.7

 
3.27
%
 
2.59
%
 
1.9
 
$
517.7

 
3.24
%
 
2.43
%
 
2.6
Cross currency interest rate swaps (cash flow hedge)
 
$
1,095.7

 
4.96
%
 
2.78
%
 
2.4
 
$
1,088.9

 
4.77
%
 
2.72
%
 
3.3
Cross currency interest rate swaps (not designated)
 
$
41.6

 
3.28
%
 
2.32
%
 
1.7
 
$
27.4

 
3.62
%
 
.81
%
 
1.8
The table below summarizes our outstanding currency price risk management instruments:
 
 
30 September 2017
 
30 September 2016
 
 
US$
Notional

 
Years
Average
Maturity
 
US$
Notional

 
Years
Average
Maturity
Forward Exchange Contracts
 
 
 
 
 
 
 
 
Cash flow hedges
 
$
3,150.2

 
.4
 
$
4,130.3

 
.5
Net investment hedges
 
675.5

 
3.0
 
968.2

 
2.7
Not designated
 
273.8

 
.1
 
2,648.3

 
.4
Total Forward Exchange Contracts
 
$
4,099.5

 
.8
 
$
7,746.8

 
.7
Schedule of Fair Value of Derivative Instruments
The table below summarizes the fair value and balance sheet location of our outstanding derivatives:
 
 
Balance Sheet
 
30 September
 
Balance Sheet
 
30 September
 
 
Location
 
2017

 
2016

 
Location
 
2017

 
2016

Derivatives Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Forward exchange contracts
 
Other receivables
 
$
81.7

 
$
72.3

 
Accrued liabilities
 
$
82.0

 
$
44.0

Interest rate management contracts
 
Other receivables
 
11.1

 
19.9

 
Accrued liabilities
 
10.7

 
—

Forward exchange contracts
 
Other noncurrent assets
 
27.1

 
44.4

 
Other noncurrent
 liabilities
 
13.8

 
9.1

Interest rate management contracts
 
Other noncurrent assets
 
102.6

 
160.0

 
Other noncurrent
liabilities
 
22.2

 
12.0

Total Derivatives Designated as Hedging Instruments
 
 
 
$
222.5

 
$
296.6

 
 
 
$
128.7

 
$
65.1

Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Forward exchange contracts
 
Other receivables
 
1.1

 
77.1

 
Accrued liabilities
 
$
2.2

 
$
29.5

Interest rate management contracts
 
Other receivables
 
—

 
—

 
Accrued liabilities
 
1.0

 
—

Interest rate management contracts
 
Other noncurrent assets
 
4.2

 
—

 
Other noncurrent
liabilities
 
—

 
.7

Total Derivatives Not Designated as Hedging Instruments
 
 
 
$
5.3

 
$
77.1

 
 
 
$
3.2

 
$
30.2

Total Derivatives
 
 
 
$
227.8

 
$
373.7

 
 
 
$
131.9

 
$
95.3
Schedule of Gains and Losses Related to Derivative Instruments
The table below summarizes the gain or loss related to our cash flow hedges, fair value hedges, net investment hedges, and derivatives not designated as hedging instruments:
 
 
Year Ended 30 September
 
 
Forward
Exchange Contracts
 
Foreign
Currency
Debt
 
Other(A)
 
Total
 
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Cash Flow Hedges, net of tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) recognized in OCI (effective portion)
 
$
.3

 
$
10.5

 
$
—

 
$
—

 
$
(12.9
)
 
$
3.2

 
$
(12.6
)
 
$
13.7

Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion)
 
18.3

 
.2

 
—

 
—

 
—

 
—

 
18.3

 
.2

Net (gain) loss reclassified from OCI to other income (expense), net (effective portion)
 
(3.8
)
 
(25.7
)
 
—

 
—

 
10.5

 
(20.3
)
 
6.7

 
(46.0
)
Net (gain) loss reclassified from OCI to interest expense (effective portion)
 
(2.1
)
 
6.7

 
—

 
—

 
2.9

 
3.3

 
.8

 
10.0

Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion)
 
(1.6
)
 
(.2
)
 
—

 
—

 
—

 
—

 
(1.6
)
 
(.2
)
Fair Value Hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) recognized in interest expense(B)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(14.7
)
 
$
(8.8
)
 
$
(14.7
)
 
$
(8.8
)
Net Investment Hedges, net of tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) recognized in OCI
 
$
(11.1
)
 
$
17.4

 
$
(32.8
)
 
$
(9.6
)
 
$
(15.6
)
 
$
35.0

 
$
(59.5
)
 
$
42.8

Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) recognized in other income (expense), net(C)
 
$
4.1

 
$
(1.8
)
 
$
—

 
$
—

 
$
(2.4
)
 
$
(1.6
)
 
$
1.7

 
$
(3.4
)
(A) 
Other includes the impact on other comprehensive income (OCI) and earnings primarily related to interest rate and cross currency interest rate swaps.
(B) 
The impact of fair value hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in related interest rates on outstanding debt.
(C) 
The impact of the non-designated hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in exchange rates on assets and liabilities denominated in nonfunctional currencies.