Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The Company had the following outstanding commodity hedge contracts that hedge forecasted purchases:



		Volume Outstanding as of
Commodity	Units	March 31, 2013	September 30, 2012	March 31, 2012
Copper	Pounds	13,420,000	13,135,000	10,413,000
Lead	Metric Tons	23,400	21,200	23,775
Aluminum	Metric Tons	2,925	2,868	2,265
Tin	Metric Tons	672	1,344	—
Iron Scrap	Metric Tons	3,749	—	—

Location and Fair Values of Derivative Instruments and Hedging Activities

The following table presents the location and fair values of derivative instruments and hedging activities included in the Company’s consolidated statements of financial position (in millions):



	Derivatives and Hedging Activities Designated as Hedging Instruments under ASC 815						Derivatives and Hedging Activities Not Designated as Hedging Instruments under ASC 815
	March 31, 2013		September 30, 2012		March 31, 2012		March 31, 2013		September 30, 2012		March 31, 2012
Other current assets
Foreign currency exchange derivatives	$	14	$	14	$	13	$	2	$	8	$	12
Commodity derivatives	2		11		1		—		—		—
Interest rate swaps	5		2		—		—		—		—
Cross-currency interest rate swaps	—		1		16		—		—		—
Other noncurrent assets
Interest rate swaps	—		6		9		—		—		—
Equity swap	—		—		—		169		123		138
Total assets	$	21	$	34	$	39	$	171	$	131	$	150

Other current liabilities
Foreign currency exchange derivatives	$	13	$	17	$	21	$	4	$	9	$	10
Commodity derivatives	7		—		4		—		—		—
Cross-currency interest rate swaps	2		—		—		—		—		—
Current portion of long-term debt
Fixed rate debt swapped to floating	754		401		100		—		—		—
Long-term debt
Fixed rate debt swapped to floating	—		456		759		—		—		—
Other noncurrent liabilities
Cross-currency interest rate swaps	2		—		—		—		—		—
Total liabilities	$	778	$	874	$	884	$	4	$	9	$	10

Location and Amount of Gains and Losses Gross of Tax on Derivative Instruments and Related Hedge Items

The following tables present the location and amount of the effective portion of gains and losses gross of tax on derivative instruments and related hedge items reclassified from AOCI into the Company’s consolidated statements of income for the three and six months ended March 31, 2013 and 2012 and amounts recorded in AOCI net of tax in the consolidated statements of financial position (in millions):



		Amount of Gain (Loss) Reclassified from AOCI into Income
Derivatives in ASC 815 Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from AOCI into Income	Three Months Ended March 31,					Six Months Ended March 31,
Derivatives in ASC 815 Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from AOCI into Income	2013		2012			2013		2012
Foreign currency exchange derivatives	Cost of sales	$	—	$	(4	)	$	1	$	(10	)
Commodity derivatives	Cost of sales	4		(3		)	9		(16		)
Forward treasury locks	Net financing charges	1		1			1		1
Total		$	5	$	(6	)	$	11	$	(25	)



Derivatives in ASC 815 Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in AOCI on Derivative
Derivatives in ASC 815 Cash Flow Hedging Relationships	March 31, 2013			September 30, 2012			March 31, 2012
Foreign currency exchange derivatives	$	—		$	(3	)	$	(4	)
Commodity derivatives	(3		)	7			(2		)
Forward treasury locks	7			8			8
Total	$	4		$	12		$	2



		Amount of Gain (Loss) Recognized in Income on Derivative
Derivatives in ASC 815 Fair Value Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivative	Three Months Ended March 31,						Six Months Ended March 31,
Derivatives in ASC 815 Fair Value Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivative	2013			2012			2013			2012
Interest rate swap	Net financing charges	$	(2	)	$	2		$	(3	)	$	(6	)
Fixed rate debt swapped to floating	Net financing charges	2			(2		)	3			6
Total		$	—		$	—		$	—		$	—



		Amount of Gain (Loss) Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments under ASC 815	Location of Gain (Loss) Recognized in Income on Derivative	Three Months Ended March 31,						Six Months Ended March 31,
	Location of Gain (Loss) Recognized in Income on Derivative	2013			2012			2013			2012
Foreign currency exchange derivatives	Cost of sales	$	(3	)	$	—		$	(3	)	$	23
Foreign currency exchange derivatives	Net financing charges	11			(1		)	10			(30		)
Foreign currency exchange derivatives	Provision for income taxes	(8		)	(4		)	(4		)	—
Equity swap	Selling, general and administrative	21			5			36			26
Total		$	21		$	—		$	39		$	19

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details