v3.25.2
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding Commodity Hedge Contracts
The Company had the following outstanding contracts to hedge forecasted commodity purchases (in metric tons):
 Volume Outstanding as of
CommodityJune 30, 2025September 30, 2024
Copper2,313 2,676 
Aluminum 974 2,450 
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table summarizes net investment hedges (in billions):
June 30,September 30,
20252024
Euro-denominated bonds designated as net investment hedges in Europe€2.9 €2.9 
Yen-denominated debt designated as a net investment hedge in Japan¥30 ¥30 
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 		Derivatives and Hedging Activities
Not Designated
as Hedging Instruments
 June 30,September 30,June 30,September 30,
2025202420252024
Other current assets
Foreign currency exchange derivatives$13 $19 $— $1 
Commodity derivatives3 2 — — 
Total assets$16 $21 $— $1 
Other current liabilities
Foreign currency exchange derivatives$7 $24 $11 $1 
Commodity derivatives1 1— — 
Long-term debt
Foreign currency denominated debt3,611 3,424 — — 
Total liabilities$3,619 $3,449 $11 $1 
Offsetting Assets and Liabilities
The gross and net amounts of derivative assets and liabilities were as follows (in millions):
 Fair Value of AssetsFair Value of Liabilities
 June 30,September 30,June 30,September 30,
2025202420252024
Gross amount recognized$16 $22 $3,630 $3,450 
Gross amount eligible for offsetting(10)(12)(10)(12)
Net amount$6 $10 $3,620 $3,438 
Location and Amount of Gains and Losses Gross of Tax on Derivative Instruments and Related Hedge Items
The following table presents the pre-tax gains (losses) recorded in other comprehensive income (loss) related to cash flow hedges (in millions):    
Derivatives in Cash Flow
 Hedging Relationships		Three Months Ended June 30,Nine Months Ended June 30,
2025202420252024
Foreign currency exchange derivatives$— $2 $15 $4 
Commodity derivatives— 4 3 5 
Interest rate swaps— — — (21)
Total$— $6 $18 $(12)

The following table presents the location and amount of the pre-tax gains (losses) on cash flow hedges reclassified from AOCI into the Company’s consolidated statements of income (in millions):
Derivatives in Cash Flow Hedging RelationshipsLocation of Gain (Loss) Reclassified from AOCI into IncomeThree Months Ended June 30,
Nine Months Ended June 30,
2025202420252024
Foreign currency exchange derivativesCost of sales$4 $4 $7 $1 
Commodity derivativesCost of sales2 — 1 (4)
Total$6 $4 $8 $(3)

The following table presents the location and amount of pre-tax gains (losses) on derivatives not designated as hedging instruments recognized in the Company’s consolidated statements of income (in millions):
Derivatives Not Designated as Hedging InstrumentsLocation of Gain (Loss)
Recognized in Income on Derivative		Three Months Ended June 30,
Nine Months Ended June 30,
2025202420252024
Foreign currency exchange derivativesCost of sales$— $(4)$(8)$(7)
Foreign currency exchange derivativesSG&A1 2 (1)2 
Foreign currency exchange derivativesNet financing charges71 20 (13)36 
Total$72 $18 $(22)$31 
Pre-tax Gains (Losses) on Net Investment Hedges Recorded as Foreign CTA in OCI
The following table presents pre-tax gains (losses) on net investment hedges recorded as foreign currency translation adjustments ("CTA") within other comprehensive income (loss) (in millions):
Three Months Ended June 30,
Nine Months Ended June 30,
2025202420252024
Net investment hedges$(269)$44 $(162)$(3)