v3.19.3
Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Sep. 30, 2019
Defined Contribution Plan [Abstract]  
Change in benefit obligation
Reconciliation of pension benefit obligations, plan assets, funded status and amounts recognized in the Company’s consolidated balance sheets:
 
U.S. Plans
 
Non-U.S. Plans
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Change in Pension Benefit Obligation:
 
 
 
 
 
 
 
Benefit obligation—beginning of fiscal year
$
844

 
$
913

 
$
452

 
$
433

Service cost
—

 
—

 
4

 
4

Interest cost
32

 
32

 
13

 
12

Actuarial loss (gain)
95

 
(38
)
 
109

 
24

Benefit payments
(52
)
 
(63
)
 
(22
)
 
(9
)
Plan amendment
—

 
—

 
1

 
—

Foreign currency exchange rate changes
—

 
—

 
(29
)
 
(12
)
Benefit obligation—end of fiscal year
$
919

 
$
844

 
$
528

 
$
452

Accumulated benefit obligation
$
919

 
$
844

 
$
528

 
$
452

Change in Plan Assets:
 
 
 
 
 
 
 
Fair value of plan assets—beginning of fiscal year
$
1,090

 
$
1,074

 
$
436

 
$
433

Actual return on plan assets
52

 
78

 
93

 
13

Company contribution
—

 
1

 
10

 
11

Benefit payments
(52
)
 
(63
)
 
(22
)
 
(9
)
Foreign currency exchange rate changes
—

 
—

 
(27
)
 
(12
)
Fair value of plan assets—end of fiscal year
$
1,090

 
$
1,090

 
$
490

 
$
436

Funded status at end of fiscal year
$
171

 
$
246

 
$
(38
)
 
$
(16
)
Recognized in Consolidated Balance Sheets:
 
 
 
 
 
 
 
Non-current asset
$
178

 
$
252

 
$
—

 
$
—

Current liability
(1
)
 
(1
)
 
—

 
(10
)
Non-current liability
(6
)
 
(5
)
 
(38
)
 
(6
)
Funded status at end of fiscal year
$
171

 
$
246

 
$
(38
)
 
$
(16
)
Amounts recognized in accumulated other comprehensive income before tax
Amounts recognized in accumulated other comprehensive income before tax: 
 
U.S. Plans
 
Non-U.S. Plans
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Net actuarial loss
$
154

 
$
47

 
$
70

 
$
39
Benefit obligations in excess of plan assets related to the Company's U.S. non-qualified plan and the non-U.S. pension plans
Benefit obligations in excess of plan assets:
 
U.S. Plans
 
Non-U.S. Plans
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Accumulated benefit obligation in excess of plan assets
 
 
 
 
 
 
 
Accumulated benefit obligation—end of year
$
(7
)
 
$
(6
)
 
$
(528
)
 
$
(452
)
Fair value of plan assets—end of year
$
—

 
$
—

 
$
490

 
$
436

Projected benefit obligation in excess of plan assets
 
 
 
 
 
 
 
Benefit obligation—end of year
$
(7
)
 
$
(6
)
 
$
(528
)
 
$
(452
)
Fair value of plan assets—end of year
$
—

 
$
—

 
$
490

 
$
436
Net periodic pension and other postretirement plan cost
Net periodic pension cost:
 
U.S. Plans
 
Non-U.S. Plans
 
For the Years Ended September 30,
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
(in millions)
Service cost
$
—

 
$
—

 
$
—

 
$
4

 
$
4

 
$
6

Interest cost
32

 
32

 
36

 
13

 
12

 
11

Expected return on assets
(71
)
 
(70
)
 
(70
)
 
(18
)
 
(20
)
 
(16
)
Amortization of actuarial loss
—

 
—

 
15

 
—

 
—

 
2

Settlement loss
7

 
3

 
15

 
—

 
—

 
—

Total net periodic benefit cost
$
(32
)
 
$
(35
)
 
$
(4
)
 
$
(1
)
 
$
(4
)
 
$
3

 
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Other changes in plan assets and benefit obligations recognized in other comprehensive income: 
 
U.S. Plans
 
Non-U.S. Plans
 
For the Years Ended September 30,
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
(in millions)
Current year actuarial loss (gain)
$
114

 
$
(47
)
 
$
(113
)
 
$
27

 
$
30

 
$
(53
)
Amortization of actuarial (loss) gain
(7
)
 
(3
)
 
(30
)
 
—

 
—

 
(2
)
Current year prior service cost
—

 
—

 
—

 
1

 
—

 
—

Total recognized in other comprehensive income
$
107

 
$
(50
)
 
$
(143
)
 
$
28

 
$
30

 
$
(55
)
Total recognized in net periodic benefit cost and other comprehensive income
$
75

 
$
(85
)
 
$
(147
)
 
$
27

 
$
26

 
$
(52
)
Weighted average actuarial assumptions
Weighted-Average Actuarial Assumptions:
 
U.S. Plans
 
Non-U.S. Plans
 
For the Years Ended September 30,
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Discount rate(1) for benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Pension
3.26
%
 
4.23
%
 
3.84
%
 
1.80
%
 
2.90
%
 
2.70
%
Discount rate for net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Pension
4.23
%
 
3.84
%
 
3.62
%
 
2.90
%
 
2.70
%
 
2.40
%
Expected long-term rate of return on plan assets(2)
7.00
%
 
7.00
%
 
7.00
%
 
3.00
%
 
4.25
%
 
4.50
%
Rate of increase(3) in compensation levels for:
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation
NA

 
NA

 
NA

 
2.50
%
 
3.20
%
 
3.20
%
Net periodic benefit cost
NA

 
NA

 
NA

 
2.50
%
 
3.20
%
 
3.20
%
(1) 
Represents a single weighted-average discount rate derived based on a cash flow matching analysis, with the projected benefit payments matching spot rates from a yield curve developed from high-quality corporate bonds.
(2) 
Primarily based on the targeted allocation, and evaluated for reasonableness by considering such factors as: (i) actual return on plan assets; (ii) historical rates of return on various asset classes in the portfolio; (iii) projections of returns on various asset classes; and (iv) current and prospective capital market conditions and economic forecasts.
(3) 
This assumption is not applicable for the U.S. plans due to the amendment of the U.S. qualified defined benefit pension plan in October 2015, which discontinued the employer provided credits effective after December 31, 2015.
Pension plan investments at fair value
The following tables set forth by level, within the fair value hierarchy, the pension plans’ investments at fair value as of September 30, 2019 and 2018, including the impact of transactions that were not settled at the end of September:
 
U.S. Plans
 
Fair Value Measurements at September 30 Using Inputs Considered as
 
Level 1
 
Level 2
 
Level 3
 
Total
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Cash equivalents
$
18

 
$
65

 
 
 
 
 
 
 
 
 
$
18

 
$
65

Collective investment funds
 
 
 
 
$
580

 
$
571

 
 
 
 
 
580

 
571

Corporate debt securities
 
 
 
 
188

 
187

 
 
 
 
 
188

 
187

U.S. government-sponsored debt securities
 
 
 
 
35

 
30

 
 
 
 
 
35

 
30

U.S. Treasury securities
99

 
62

 
 
 
 
 
 
 
 
 
99

 
62

Asset-backed securities
 
 
 
 
 
 
 
 
$
37

 
$
34

 
37

 
34

Equity securities
133

 
141

 
 
 
 
 
 
 
 
 
133

 
141

Total
$
250

 
$
268

 
$
803

 
$
788

 
$
37

 
$
34

 
$
1,090

 
$
1,090


 
Non-U.S. Plans
 
Fair Value Measurements at September 30 Using Inputs Considered as
 
Level 1
 
Level 2
 
Level 3
 
Total
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Cash and cash equivalents
$
16

 
$
6

 
 
 
 
 
 
 
 
 
$
16

 
$
6

Corporate debt securities
 
 
 
 
$
44

 


 
 
 
 
 
44

 
—

Asset-backed securities
 
 
 
 
 
 
 
 
$
51

 
$
33

 
51

 
33

Equity securities
66

 
68

 
 
 
 
 
 
 
 
 
66

 
68

Multi-asset securities(1)
 
 
 
 
313

 
$
329

 
 
 
 
 
313

 
329

Total
$
82

 
$
74

 
$
357

 
$
329

 
$
51

 
$
33

 
$
490

 
$
436

(1) 
Multi-asset securities represent pension plan assets that are invested in funds comprised of broad ranges of assets.
Employer contribution cash flows
Cash Flows
 
U.S. Plans
 
Non-U.S. Plans
 
(in millions)
Actual employer contributions
 
 
 
2019
$
—

 
$
10

2018
1

 
11

Expected employer contributions
 
 
 
2020
1

 
10

Expected benefit payments
 
 
 
2020
127

 
6

2021
92

 
6

2022
86

 
6

2023
82

 
6

2024
74

 
6

2025-2029
293

 
34