v3.25.2
Fair Value Measurements
 9 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
ASC 820, "Fair Value Measurement," defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows:

Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions.

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

Recurring Fair Value Measurements

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value (in millions):
 Fair Value Measurements Using:
 Total as of
June 30, 2025		Quoted Prices
in Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Other current assets
Foreign currency exchange derivatives$13 $— $13 $— 
       Commodity derivatives3 — 3 — 
Other noncurrent assets
Deferred compensation plan assets59 59 — — 
Exchange traded funds (fixed income)(1)
74 74 — — 
Exchange traded funds (equity)(1)
204 204 — — 
Total assets$353 $337 $16 $— 
Other current liabilities
Foreign currency exchange derivatives$18 $— $18 $— 
Commodity derivatives1 — 1 — 
Contingent earn-out liabilities25 — — 25 
Total liabilities$44 $— $19 $25 

(1) Classified as restricted investments for payment of asbestos liabilities. See Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further details.
 Fair Value Measurements Using:
 Total as of September 30, 2024Quoted Prices
in Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Other current assets
Foreign currency exchange derivatives$20 $— $20 $— 
Commodity derivatives
2 — 2 — 
Other noncurrent assets
Deferred compensation plan assets56 56 — — 
Exchange traded funds (fixed income)(1)
81 81 — — 
Exchange traded funds (equity)(1)
200 200 — — 
Total assets$359 $337 $22 $— 
Other current liabilities
Foreign currency exchange derivatives$25 $— $25 $— 
Commodity derivatives1 — 1 — 
Contingent earn-out liabilities14 — — 14 
Other noncurrent liabilities
Contingent earn-out liabilities14 — — 14 
Total liabilities$54 $— $26 $28 
(1) Classified as restricted investments for payment of asbestos liabilities. See Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further details.

Valuation Methods

Commodity derivatives: The commodity derivatives are valued under a market approach using publicized prices, where available, or dealer quotes.

Contingent earn-out liabilities: The contingent earn-out liabilities were established using a Monte Carlo simulation based on the forecasted operating results and the earn-out formula specified in the purchase agreements.

Deferred compensation plan assets: Assets held in the deferred compensation plans will be used to pay benefits under certain of the Company's non-qualified deferred compensation plans. The investments primarily consist of mutual funds which are publicly traded on stock exchanges and are valued using a market approach based on the quoted market prices. Unrealized gains (losses) on the deferred compensation plan assets are recognized in the consolidated statements of income where they offset unrealized gains and losses on the related deferred compensation plan liability.

Exchange traded funds: Investments in exchange traded funds are valued using a market approach based on quoted market prices, where available, or broker/dealer quotes of identical or comparable instruments. Refer to Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further information.

Foreign currency exchange derivatives: The foreign currency exchange derivatives are valued under a market approach using publicized spot and forward prices.
The following table presents the portion of unrealized gains recognized in the consolidated statements of income that relate to equity securities still held at June 30, 2025 and 2024 (in millions):

Three Months Ended June 30,Nine Months Ended June 30,
2025202420252024
 Deferred compensation plan assets$4 $— $2 $7 
 Investments in exchange traded funds20 4 12 43 

The fair values of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values.

The fair value of long-term debt at June 30, 2025 and September 30, 2024 was as follows (in billions):
June 30,September 30,
20252024
Public debt$8.3 $8.1 
Other long-term debt0.3 0.2 
Total fair value of long-term debt$8.6 $8.3 
The fair value of public debt was determined primarily using market quotes which are classified as Level 1 inputs within the ASC 820 fair value hierarchy. The fair value of other long-term debt was determined using quoted market prices for similar instruments and are classified as Level 2 inputs within the ASC 820 fair value hierarchy.