Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Oct. 31, 2013 | Mar. 29, 2013 |
Document and Entity Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'ROCKWELL COLLINS INC | ' | ' |
Entity Central Index Key | '0001137411 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 135,117,647 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $8,500 |
Consolidated_Statement_of_Fina
Consolidated Statement of Financial Position (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $391 | $335 |
Receivables, net | 1,058 | 971 |
Inventories, net | 1,518 | 1,332 |
Current deferred income taxes | 19 | 58 |
Other current assets | 108 | 91 |
Total current assets | 3,094 | 2,787 |
Property | 773 | 773 |
Goodwill | 779 | 780 |
Intangible Assets | 288 | 291 |
Long-term Deferred Income Taxes | 245 | 455 |
Other Assets | 221 | 228 |
TOTAL ASSETS | 5,400 | 5,314 |
Current Liabilities: | ' | ' |
Short-term debt | 436 | 0 |
Accounts payable | 463 | 475 |
Compensation and benefits | 293 | 269 |
Advance payments from customers | 324 | 288 |
Accrued customer incentives | 184 | 174 |
Product warranty costs | 121 | 126 |
Other current liabilities | 160 | 108 |
Total current liabilities | 1,981 | 1,440 |
Long-term Debt, Net | 563 | 779 |
Retirement Benefits | 1,078 | 1,693 |
Other Liabilities | 155 | 138 |
Equity: | ' | ' |
Common stock ($0.01 par value; shares authorized: 1,000; shares issued: 183.8) | 2 | 2 |
Additional paid-in capital | 1,469 | 1,460 |
Retained earnings | 4,163 | 3,708 |
Accumulated other comprehensive loss | -1,287 | -1,607 |
Common stock in treasury, at cost (shares held: September 30, 2013, 48.7; September 30, 2012, 41.6) | -2,729 | -2,304 |
Total shareowners' equity | 1,618 | 1,259 |
Noncontrolling interest | 5 | 5 |
Total equity | 1,623 | 1,264 |
TOTAL LIABILITIES AND EQUITY | $5,400 | $5,314 |
Consolidated_Statement_of_Fina1
Consolidated Statement of Financial Position (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Common Stock, Par Value | $0.01 | $0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 183,800,000 | 183,800,000 |
Common Stock, Shares Held in Treasury | 48,700,000 | 41,600,000 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Sales: | ' | ' | ' |
Sales | $4,610 | $4,726 | $4,806 |
Costs, expenses and other: | ' | ' | ' |
Cost of sales | 3,224 | 3,324 | 3,427 |
Selling, general and administrative expenses | 506 | 543 | 533 |
Interest expense | 28 | 27 | 19 |
Other income, net | -16 | -25 | -28 |
Total costs, expenses and other | 3,742 | 3,869 | 3,951 |
Income from continuing operations before income taxes | 868 | 857 | 855 |
Income tax expense | 236 | 248 | 240 |
Income from continuing operations | 632 | 609 | 615 |
Income from discontinued operations, net of taxes | 0 | 0 | 19 |
Net income | $632 | $609 | $634 |
Basic | ' | ' | ' |
Continuing operations | $4.63 | $4.19 | $3.99 |
Discontinued operations | $0 | $0 | $0.12 |
Basic earnings per share | $4.63 | $4.19 | $4.11 |
Diluted | ' | ' | ' |
Continuing operations | $4.58 | $4.15 | $3.94 |
Discontinued operations | $0 | $0 | $0.12 |
Diluted earnings per share | $4.58 | $4.15 | $4.06 |
Weighted average common shares: | ' | ' | ' |
Basic | 136.5 | 145.3 | 154.2 |
Diluted | 138.1 | 146.8 | 156.1 |
Cash dividends per share | $1.20 | $1.08 | $0.96 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income Statement (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Net Income | $632 | $609 | $634 |
Unrealized foreign currency translation adjustments | 2 | 13 | -21 |
Pension and other retirement benefits adjustments (net of taxes: 2013, $(191); 2012, $73; 2011, $130) | 326 | -126 | -217 |
Foreign currency cash flow hedge adjustment (net of taxes: 2013, $(2); 2012, $0; 2011, $0) | -8 | 3 | 0 |
Comprehensive income | $952 | $499 | $396 |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Income (Parenthetical) (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | ($191) | $73 | $130 |
Foreign currency cash flow hedge adjustment tax amount | ($2) | $0 | $0 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Operating Activities: | ' | ' | ' |
Net Income | $632 | $609 | $634 |
Adjustments to arrive at cash provided by operating activities: | ' | ' | ' |
Restructuring, asset impairment and customer bankruptcy charges | 0 | 65 | 27 |
Gain on sale of business | 0 | 0 | -27 |
Depreciation | 124 | 117 | 108 |
Amortization of intangible assets and pre-production engineering costs | 56 | 57 | 51 |
Stock-based compensation expense | 20 | 24 | 24 |
Compensation and benefits paid in common stock | 53 | 69 | 68 |
Excess tax benefit from stock-based compensation | -9 | -9 | -7 |
Deferred income taxes | 53 | 105 | 93 |
Pension plan contributions | -122 | -126 | -113 |
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments: | ' | ' | ' |
Receivables | -85 | -29 | 49 |
Production Inventory | -89 | -63 | -121 |
Pre-production engineering costs | -170 | -141 | -141 |
Accounts payable | 9 | -28 | 58 |
Compensation and benefits | 33 | -77 | 61 |
Advance payments from customers | 34 | 22 | -55 |
Accrued customer incentives | 10 | 46 | -4 |
Product warranty costs | -6 | -21 | -35 |
Income taxes | 75 | -68 | 59 |
Other assets and liabilities | -1 | -18 | -72 |
Cash Provided by Operating Activities | 617 | 534 | 657 |
Investing Activities: | ' | ' | ' |
Property additions | -120 | -138 | -152 |
Acquisition of businesses, net of cash acquired | 0 | 0 | -17 |
Proceeds from the disposition of property | 3 | 17 | 14 |
Acquisition of intangible assets | -1 | -4 | -4 |
Proceeds (sales price adjustment) from business divestiture | 0 | -3 | 44 |
Cash provided to customer | 0 | 0 | -237 |
Collection of cash provided to customer | 0 | 0 | 237 |
Proceeds from sale of short-term investments | 0 | 0 | 20 |
Other investing activities | 0 | -1 | 3 |
Cash Used for Investing Activities | -118 | -129 | -92 |
Financing Activities: | ' | ' | ' |
Purchases of treasury stock | -589 | -714 | -328 |
Cash dividends | -164 | -157 | -148 |
Repayment of short-term borrowings | 0 | 0 | -24 |
Increase in short-term commercial paper borrowings, net | 235 | 0 | 0 |
Increase in long-term borrowings | 0 | 247 | 0 |
Proceeds from the exercise of stock options | 61 | 21 | 22 |
Excess tax benefit from stock-based compensation | 9 | 9 | 7 |
Cash Used for Financing Activities | -448 | -594 | -471 |
Effect of exchange rate changes on cash and cash equivalents | 5 | -6 | 1 |
Net Change in Cash and Cash Equivalents | 56 | -195 | 95 |
Cash and Cash Equivalents at Beginning of Period | 335 | 530 | 435 |
Cash and Cash Equivalents at End of Period | $391 | $335 | $530 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity Statement (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Common Stock in Treasury [Member] | Total Shareowners' Equity [Member] | Noncontrolling Interest [Member] |
In Millions, unless otherwise specified | ||||||||
Beginning balance at Sep. 30, 2010 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit from stock-based compensation | ' | ' | $7 | ' | ' | ' | ' | ' |
Shares issued under stock option and benefit plans | ' | ' | -14 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 24 | ' | ' | ' | ' | ' |
Net income | 634 | ' | ' | 634 | ' | ' | ' | ' |
Cash dividends | 148 | ' | ' | -148 | ' | ' | ' | ' |
Shares issued under stock option and benefit plans | ' | ' | ' | -14 | ' | ' | ' | ' |
Pension and other retirement benefit adjustment | -217 | ' | ' | ' | -217 | ' | ' | ' |
Currency translation gain (loss) | -21 | ' | ' | ' | -21 | ' | ' | ' |
Unrealized gain from foreign currency cash flow hedges | 0 | ' | ' | ' | 0 | ' | ' | ' |
Share repurchases | -322 | ' | ' | ' | ' | -322 | ' | ' |
Shares issued from treasury | ' | ' | ' | ' | ' | 112 | ' | ' |
Total Shareowners' Equity | ' | ' | ' | ' | ' | ' | 1,523 | ' |
Other changes in equity attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | 1 |
Ending balance at Sep. 30, 2011 | 1,528 | 2 | 1,437 | 3,288 | -1,497 | -1,707 | ' | ' |
Ending balance at Sep. 30, 2011 | ' | ' | ' | ' | ' | ' | ' | 5 |
Beginning balance at Jun. 30, 2011 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 152 | ' | ' | ' | ' | ' | ' | ' |
Total Shareowners' Equity | ' | ' | ' | ' | ' | ' | 1,523 | ' |
Ending balance at Sep. 30, 2011 | 1,528 | 2 | 1,437 | 3,288 | -1,497 | -1,707 | ' | ' |
Beginning balance at Sep. 30, 2011 | ' | ' | ' | ' | ' | ' | ' | 5 |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit from stock-based compensation | ' | ' | 11 | ' | ' | ' | ' | ' |
Shares issued under stock option and benefit plans | ' | ' | -12 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 24 | ' | ' | ' | ' | ' |
Net income | 609 | ' | ' | 609 | ' | ' | ' | ' |
Cash dividends | 157 | ' | ' | -157 | ' | ' | ' | ' |
Shares issued under stock option and benefit plans | ' | ' | ' | -32 | ' | ' | ' | ' |
Pension and other retirement benefit adjustment | -126 | ' | ' | ' | -126 | ' | ' | ' |
Currency translation gain (loss) | 13 | ' | ' | ' | 13 | ' | ' | ' |
Unrealized gain from foreign currency cash flow hedges | 3 | ' | ' | ' | 3 | ' | ' | ' |
Share repurchases | -723 | ' | ' | ' | ' | -723 | ' | ' |
Shares issued from treasury | ' | ' | ' | ' | ' | 126 | ' | ' |
Total Shareowners' Equity | 1,259 | ' | ' | ' | ' | ' | 1,259 | ' |
Other changes in equity attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | 0 |
Ending balance at Sep. 30, 2012 | 1,264 | 2 | 1,460 | 3,708 | -1,607 | -2,304 | ' | ' |
Ending balance at Sep. 30, 2012 | 5 | ' | ' | ' | ' | ' | ' | 5 |
Beginning balance at Jun. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 175 | ' | ' | ' | ' | ' | ' | ' |
Total Shareowners' Equity | 1,259 | ' | ' | ' | ' | ' | 1,259 | ' |
Ending balance at Sep. 30, 2012 | 1,264 | 2 | 1,460 | 3,708 | -1,607 | -2,304 | ' | ' |
Ending balance at Sep. 30, 2012 | 5 | ' | ' | ' | ' | ' | ' | 5 |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit from stock-based compensation | ' | ' | 11 | ' | ' | ' | ' | ' |
Shares issued under stock option and benefit plans | ' | ' | -22 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 20 | ' | ' | ' | ' | ' |
Net income | 632 | ' | ' | 632 | ' | ' | ' | ' |
Cash dividends | 164 | ' | ' | -164 | ' | ' | ' | ' |
Shares issued under stock option and benefit plans | ' | ' | ' | -13 | ' | ' | ' | ' |
Pension and other retirement benefit adjustment | 326 | ' | ' | ' | 326 | ' | ' | ' |
Currency translation gain (loss) | 2 | ' | ' | ' | 2 | ' | ' | ' |
Unrealized gain from foreign currency cash flow hedges | -8 | ' | ' | ' | -8 | ' | ' | ' |
Share repurchases | -569 | ' | ' | ' | ' | -569 | ' | ' |
Shares issued from treasury | ' | ' | ' | ' | ' | 144 | ' | ' |
Total Shareowners' Equity | 1,618 | ' | ' | ' | ' | ' | 1,618 | ' |
Other changes in equity attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | 0 |
Ending balance at Sep. 30, 2013 | 1,623 | 2 | 1,469 | 4,163 | -1,287 | -2,729 | ' | ' |
Ending balance at Sep. 30, 2013 | $5 | ' | ' | ' | ' | ' | ' | $5 |
Business_Description_and_Basis
Business Description and Basis of Presentation | 12 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Business Description and Basis of Presentation | ' |
Business Description and Basis of Presentation | |
Rockwell Collins, Inc. (the Company or Rockwell Collins) designs, produces and supports communications and aviation electronics for commercial and military customers worldwide. | |
The Company operates on a 52/53 week fiscal year ending on the Friday closest to September 30. Each of 2013, 2012 and 2011 were 52-week fiscal years. For ease of presentation, September 30 is utilized consistently throughout these financial statements and notes to represent the fiscal year end date. All date references contained herein relate to the Company's fiscal year unless otherwise stated. | |
As discussed in Note 4, Divestitures, the Company's Rollmet product line, formerly included within the Commercial Systems segment, was divested in 2011 and has been accounted for as a discontinued operation for all periods presented. Unless otherwise noted, disclosures pertain to the Company's continuing operations. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
Consolidation | |
The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. The Company has one consolidated subsidiary with income attributable to a noncontrolling interest. The net income and comprehensive income attributable to the noncontrolling interest is insignificant. The Company's investments in entities it does not control but over which it has the ability to exercise significant influence are accounted for under the equity method and are included in Other Assets. All intercompany transactions are eliminated. | |
Foreign Currency Translation and Transactions | |
The functional currency for significant subsidiaries operating outside the United States is typically their respective local currency. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than the U.S. dollar are translated into U.S. dollars using the exchange rate at the balance sheet date. Sales, costs and expenses are translated at the average exchange rates in effect during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss within the Consolidated Statements of Comprehensive Income and Equity. | |
Foreign exchange transaction gains and losses due to the remeasurement of account balances in foreign currencies are included within the Consolidated Statement of Operations and were not material to the Company's results of operations for 2013, 2012 and 2011. | |
Revenue Recognition | |
The Company enters into sales arrangements that may provide for multiple deliverables to a customer. The Company identifies all goods and/or services that are to be delivered separately under a sales arrangement and allocates revenue to each deliverable based on relative fair values. Fair values are generally established based on the prices charged when sold separately by the Company. In general, revenues are separated between hardware, engineering services, maintenance services and installation services. The allocated revenue for each deliverable is then recognized using appropriate revenue recognition methods. | |
Sales related to long-term contracts requiring development and delivery of products over several years are accounted for under the percentage-of-completion method of accounting in accordance with the Construction-Type and Production-Type Contracts subtopic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification. The percentage-of-completion method is predominately used in the Government Systems segment and sales and earnings under qualifying contracts are recorded either as products are shipped under the units-of-delivery method (for production effort), or based on the ratio of actual costs incurred to total estimated costs expected to be incurred related to the contract under the cost-to-cost method (for development effort). Purchase options and change orders are accounted for either as an integral part of the original contract or separately depending upon the nature and value of the item. Sales and costs related to profitable purchase options are included in estimates only when the options are exercised whereas sales and costs related to unprofitable purchase options are included in estimates when exercise is determined to be probable. Sales related to change orders are included in estimates only if they can be reliably estimated and collectability is reasonably assured. Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable. Changes in estimates of profit or loss on contracts are included in earnings on a cumulative basis in the period the estimate is changed. | |
Sales related to long-term separately priced product maintenance or warranty contracts are accounted for based on the terms of the underlying agreements. Certain contracts are fixed-price contracts with sales recognized ratably over the contractual life, while other contracts have a fixed hourly rate with sales recognized based on actual labor or flight hours incurred. The cost of providing these services is expensed as incurred. | |
The Company recognizes sales for most other products or services when all of the following criteria are met: an agreement of sale exists, product delivery and acceptance has occurred or services have been rendered, pricing is fixed or determinable and collection is reasonably assured. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include time deposits, certificates of deposit with original maturity dates of three months or less and money market funds. | |
Allowance for Doubtful Accounts | |
Allowances are established in order to report receivables at net realizable value on the Company's Consolidated Statement of Financial Position. The determination of these allowances requires management of the Company to make estimates and judgments as to the collectability of customer account balances. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience and other currently available evidence. | |
Inventories | |
Inventories are stated at the lower of cost or market using costs which approximate the first-in, first-out method, less related progress payments received. Inventoried costs include direct costs of manufacturing, certain engineering costs and allocable overhead costs. The Company regularly compares inventory quantities on hand on a part level basis to estimated forecasts of product demand and production requirements as well as historical usage. Based on these comparisons, management establishes an excess and obsolete inventory reserve as needed. Inventory valuation reserves were $90 million and $86 million at September 30, 2013 and 2012, respectively. | |
The Company defers certain pre-production engineering costs during the development phase of a program in connection with long-term supply arrangements that contain contractual guarantees for reimbursement from customers. Such customer guarantees generally take the form of a minimum order quantity with quantified reimbursement amounts if the minimum order quantity is not taken by the customer. These costs are deferred to the extent of the contractual guarantees and are amortized over their estimated useful lives using a units-of-delivery method, up to 15 years. This amortization expense is included as a component of cost of sales. Amortization is based on the Company’s expectation of delivery rates on a program-by-program basis and begins when the Company starts recognizing revenue as the Company delivers equipment for the program. The estimated useful life is limited to the amount of time the Company is virtually assured to earn revenues through a contractually enforceable right included in long-term supply arrangements with the Company’s customers. Pre-production engineering costs incurred pursuant to supply arrangements that do not contain customer guarantees for reimbursement are expensed as incurred. | |
Progress Payments | |
Progress payments relate to both receivables and inventories and represent cash collected from government-related contracts whereby the governments have a legal right of offset related to the receivable or legal title to the work-in-process inventory. | |
Property | |
Property is stated at acquisition cost, net of accumulated depreciation. Depreciation of property is generally provided using straight-line methods over the following estimated useful lives: buildings and improvements, 15-40Â years; machinery and equipment, 6-15Â years; information systems software and hardware, 5-10Â years; and furniture and fixtures, 12-15Â years. Depreciation methods and lives are reviewed periodically with any changes recorded on a prospective basis. | |
Significant renewals and betterments are capitalized and replaced units are written off. Maintenance and repairs, as well as renewals of minor amounts, are charged to expense in the period incurred. The fair value of liabilities associated with the retirement of property is recorded when there is a legal or contractual requirement to incur such costs and the costs can be reasonably estimated. Upon the initial recognition of a contractual or legal liability for an asset retirement obligation, the Company capitalizes the asset retirement cost by increasing the carrying amount of the property by the same amount as the liability. This asset retirement cost is then depreciated over the estimated useful life of the underlying property. The Company did not have any significant asset retirement obligations at September 30, 2013 and 2012. | |
Goodwill and Intangible Assets | |
Goodwill and intangible assets generally result from business acquisitions. The purchase price of the acquisition is assigned to tangible and intangible assets and liabilities assumed based on fair value. The excess of the purchase price over the amounts assigned is recorded as goodwill. Assets acquired and liabilities assumed are allocated to the Company's reporting units based on the Company's integration plans and internal reporting structure. As of September 30, 2013 the Company had four reporting units. Purchased intangible assets with finite lives are amortized over their estimated useful lives. Goodwill and intangible assets with indefinite lives are not amortized, but are reviewed at least annually for impairment. | |
Customer Relationship Up-Front Sales Incentives | |
The Company provides up-front sales incentives prior to delivering products or performing services to certain commercial customers in connection with sales contracts. Up-front sales incentives are recorded as a Customer relationship intangible asset and are amortized using a units-of-delivery method over the period the Company has received a contractually enforceable right related to the incentives, up to 15 years. Amortization is based on the Company’s expectation of delivery rates on a program-by-program basis. Amortization begins when the Company starts recognizing revenue as the Company delivers equipment for the program. Up-front sales incentives consisting of cash payments or customer account credits are amortized as a reduction of sales, whereas incentives consisting of free products are amortized as cost of sales. | |
Accrued Customer Incentives | |
Incentives earned by customers based on purchases of Company products or services are recognized as a liability when the related sale is recorded. Incentives consisting of cash payments or customer account credits are recognized as a reduction of sales, while incentives consisting of free products and account credits where the customer's use is restricted to future purchases are recognized as cost of sales. | |
Impairment of Long-Lived Assets | |
Long-lived assets are reviewed for impairment when management plans to dispose of assets or when events or circumstances indicate that the carrying amount of a long-lived asset is more-likely-than-not unrecoverable. Assets held for disposal are reported at the lower of the carrying amount or fair value less cost to sell. Management determines fair value using a discounted future cash flow analysis or other accepted valuation techniques. Long-lived assets held for use are reviewed for impairment by comparing the carrying amount of an asset to the undiscounted future cash flows expected to be generated by the asset over its remaining useful life. If an asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. See Note 23 for discussion of certain asset impairments recorded in 2012 and 2011. | |
Goodwill and indefinite-lived intangible assets are tested annually for impairment with more frequent tests performed if indications of impairment exist. The Company's annual impairment testing date is in the second quarter of each fiscal year. Impairment for intangible assets with indefinite lives exists if the carrying value of the intangible asset exceeds its fair value. Goodwill is potentially impaired if the carrying value of a reporting unit exceeds its estimated fair value. As of September 30, 2013, the Company had four reporting units. The Company's annual impairment testing performed in the second quarter of 2013, 2012 and 2011 yielded no impairments of goodwill or indefinite-lived intangible assets. | |
Advance Payments from Customers | |
Advance payments from customers represent cash collected from customers in advance of revenue recognition. | |
Environmental | |
Liabilities for environmental matters are recorded in the period in which it is probable that an obligation has been incurred and the cost can be reasonably estimated. At environmental sites in which more than one potentially responsible party has been identified, the Company records a liability for its estimated allocable share of costs related to its involvement with the site as well as an estimated allocable share of costs related to the involvement of insolvent or unidentified parties. At environmental sites in which the Company is the only responsible party, the Company records a liability for the total estimated costs of remediation. | |
Income Taxes | |
Current tax liabilities and assets are based upon an estimate of taxes payable or refundable in the current year for each of the jurisdictions in which the Company is subject to tax. As part of the determination of its tax liability, management exercises considerable judgment in evaluating tax positions taken by the Company in determining the income tax provision and establishes reserves for uncertain tax positions in accordance with the Income Taxes topic of the FASB Accounting Standards Codification. Deferred tax assets and liabilities are recorded for the estimated future tax effects attributable to temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and their respective carrying amounts for income tax purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
Derivative Financial Instruments | |
The Company uses derivative financial instruments in the form of foreign currency forward exchange contracts and interest rate swap contracts for the purpose of minimizing exposure to changes in foreign currency exchange rates on business transactions and interest rates, respectively. The Company's policy is to execute such instruments with banks the Company believes to be creditworthy and not enter into derivative financial instruments for speculative purposes or to manage exposure for net investments in non-U.S. subsidiaries. These derivative financial instruments do not subject the Company to undue risk as gains and losses on these instruments generally offset gains and losses on the underlying assets, liabilities or anticipated transactions that are being hedged. | |
All derivative financial instruments are recorded at fair value in the Consolidated Statement of Financial Position. For a derivative that has not been designated as an accounting hedge, the change in fair value is recognized immediately through earnings. For a derivative that has been designated as an accounting hedge of an existing asset or liability (a fair value hedge), the change in the fair value of both the derivative and underlying asset or liability is recognized immediately through earnings. For a derivative designated as an accounting hedge of an anticipated transaction (a cash flow hedge), the change in the fair value is recorded on the Consolidated Statement of Financial Position in Accumulated other comprehensive loss to the extent the derivative is effective in mitigating the exposure related to the anticipated transaction. The change in the fair value related to the ineffective portion of the hedge, if any, is immediately recognized in earnings. The amount recorded within Accumulated other comprehensive loss is reclassified into earnings in the same period during which the underlying hedged transaction affects earnings. The Company does not exclude any amounts from the measure of effectiveness for both fair value and cash flow hedges. | |
Use of Estimates | |
The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Estimates are used in accounting for, among other items, long-term contracts, allowances for doubtful accounts, inventory obsolescence, product warranty cost liabilities, customer incentives, retirement benefits, income taxes, environmental matters, pre-production engineering costs, recoverability of long-lived assets and contingencies. Estimates and assumptions are reviewed periodically and the effects of changes, if any, are reflected in the Consolidated Statement of Operations in the period they are determined. | |
Concentration of Risks | |
The Company's products and services are concentrated within the aerospace and defense industries with customers consisting primarily of military and commercial aircraft manufacturers, commercial airlines and the U.S. Government and non-U.S. governments. As a result of this industry focus, the Company's current and future financial performance is largely dependent upon the overall economic conditions within these industries. In particular, the commercial aerospace market has been historically cyclical and subject to downturns during periods of weak economic conditions, which could be prompted by or exacerbated by political or other domestic or international events. The defense market may be affected by changes in budget appropriations, procurement policies, political developments both domestically and abroad and other factors. The Company depends to a large degree on U.S. Government spending, as a significant portion of the Company's sales are derived from U.S. Government contracts, both directly and indirectly through subcontracts. In August 2011, Congress enacted the Budget Control Act of 2011 which imposes spending caps and certain reductions in security spending over a ten-year period through 2021. These spending caps and reductions, referred to as sequestration, went into effect on March 3, 2013. While management believes the Company's product offerings are well positioned to meet the needs of its U.S. Government customers, the impact of sequestration could have a material adverse effect on the Company's results of operations, financial position or cash flows. | |
In addition to the overall business risks associated with the Company's concentration within the aerospace and defense industries, the Company is also exposed to a concentration of collection risk on credit extended to commercial airlines and business jet aircraft manufacturers. At September 30, 2013, accounts receivable due from U.S. and international commercial airlines were approximately $22 million and $35 million, respectively. At September 30, 2013, accounts receivable due from business jet aircraft manufacturers were approximately $142 million. The Company performs ongoing credit evaluations on the financial condition of all of its customers and maintains allowances for uncollectible accounts receivable based on expected collectability. Although management believes its allowances are adequate, the Company is not able to predict with certainty the changes in the financial stability of its customers. Any material change in the financial status of any one customer or group of customers could have a material adverse effect on the Company's results of operations, financial position or cash flows. | |
As of September 30, 2013, approximately 10 percent of the Company's employees were represented by collective bargaining agreements, which are set to expire in May 2018. | |
Recently Adopted Accounting Standards | |
In September 2011, the FASB issued amended guidance on the impairment testing of goodwill and other intangible assets that provides companies with an option to make an initial qualitative evaluation to determine the likelihood of goodwill impairment. The Company adopted the guidance during the second quarter of 2013 with no impact to the Company's financial position, results of operations or cash flows as a result of this amendment. | |
In June 2011, the FASB amended requirements for the presentation of other comprehensive income (OCI), requiring presentation of comprehensive income in either a single, continuous statement of comprehensive income or on separate but consecutive statements, the statement of operations and the statement of OCI. The amendment became effective for the Company in the first quarter of 2013 and the Company has reported OCI as a separate but consecutive statement. There was no impact to the Company's financial position, results of operations or cash flows as a result of this amendment. | |
In May 2011, the FASB amended the guidance regarding fair value measurement and disclosure. The amended guidance clarifies the application of existing fair value measurement and disclosure requirements. The amendment became effective for the Company in the second quarter of 2012 with no significant impact to the Company's financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Acquisitions | ' | ||||||||||||||||
Acquisitions | |||||||||||||||||
In August 2013, the Company reached a definitive agreement to acquire ARINC Incorporated (ARINC), a portfolio company of The Carlyle Group, and a leader in communications and information processing solutions for the commercial aviation industry, for $1,390 million. The transaction is expected to close during fiscal year 2014 upon completion of government regulatory approvals and other customary closing conditions. | |||||||||||||||||
During the three years ended September 30, 2013, 2012, and 2011, the Company completed two acquisitions that are summarized as follows: | |||||||||||||||||
Intangible Assets | |||||||||||||||||
(dollars in millions) | Fiscal | Cash | Goodwill | Finite | Weighted | ||||||||||||
Year | Purchase | Lived | Average | ||||||||||||||
Acquired | Price(1) | Life in | |||||||||||||||
Years | |||||||||||||||||
Computing Technologies for Aviation, Inc. | 2011 | $ | 11 | $ | 10 | $ | 3 | 9 | |||||||||
Blue Ridge Simulation, Inc. | 2011 | 6 | 6 | 1 | 9 | ||||||||||||
(1) Net of cash acquired | |||||||||||||||||
Computing Technologies for Aviation, Inc. | |||||||||||||||||
On January 10, 2011, the Company acquired all the shares of Computing Technologies for Aviation, Inc. (CTA). CTA, with headquarters located in Charlottesville, Virginia, is a leading provider of flight operations management solutions for corporate flight departments and other aviation customers. The purchase price, net of cash acquired, was $11 million. In the fourth quarter of 2011, the purchase price allocation was finalized with $10 million allocated to goodwill and $3 million to finite-lived intangible assets with a weighted average life of approximately 9 years. The excess purchase price over net assets acquired reflects the Company’s view that this acquisition will broaden the Company’s flight information solutions capabilities. None of the goodwill resulting from the acquisition is tax deductible. The goodwill is included within the Commercial Systems segment. | |||||||||||||||||
Blue Ridge Simulation, Inc. | |||||||||||||||||
On December 20, 2010, the Company acquired all the shares of Blue Ridge Simulation, Inc. (Blue Ridge Simulation). Blue Ridge Simulation, with headquarters located in Leesburg, Virginia, is a leading supplier of high-performance sensor simulation for U.S. Department of Defense, commercial and international training applications. The purchase price, net of cash acquired, was $6 million. In the first quarter of 2012, the purchase price allocation was finalized with $6 million allocated to goodwill and $1 million to finite-lived intangible assets with a weighted average life of approximately 9 years. The excess purchase price over net assets acquired reflects the Company’s view that this acquisition will enhance the Company’s integrated training solutions. All goodwill resulting from the acquisition is tax deductible. The goodwill is included within the Government Systems segment. | |||||||||||||||||
Pro-forma results for 2013, 2012 and 2011, assuming the acquisitions were made at the beginning of the year, are not presented as the pro-forma information would not be materially different from the consolidated reported results. |
Divestitures
Divestitures | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Divestitures | ' | ||||||||||||
Divestitures | |||||||||||||
In August 2013, the Company reached a definitive agreement to sell its subsidiary, Kaiser Optical Systems, Inc. (KOSI), a leader in spectrographic instrumentation and applied holographic technology, to Endress+Hauser. The sale price, which is subject to post-closing adjustments for potential changes in working capital, is $25 million. The sale is subject to customary closing conditions, including regulatory approval, and is expected to close in early fiscal 2014. The anticipated divestiture of this business is part of an overall strategy for the Company to focus on its primary business strategies. As part of the divestiture agreement, the Company entered into a long-term supply agreement with the buyer that allows the Company to continue purchasing certain products from the KOSI business after the completion of the sale. As a result of this continuing involvement, the KOSI divestiture does not qualify for classification as a discontinued operation. As of September 30, 2013, the KOSI business is classified as held-for-sale. Assets of the KOSI business of $17 million are included within Other current assets and liabilities of $4 million are classified within Other current liabilities. | |||||||||||||
On July 22, 2011, the Company sold its Rollmet product line. The sale price, net of a post-closing adjustment based on the final closing balance sheet, was $41 million, resulting in a gain of $17 million, net of tax. The Rollmet product line provided seamless alloy and stainless steel pipes and propulsion system components for the energy, petrochemical and defense industries. The Company divested this non-core product line to focus on its primary business strategies. Rollmet's operating results are included in discontinued operations in the Company's Consolidated Statement of Operations for all periods presented. | |||||||||||||
Results of the discontinued Rollmet operation are as follows: | |||||||||||||
Year Ended September 30 | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Sales | $ | — | $ | — | $ | 19 | |||||||
Income from discontinued operations before income taxes | — | — | 4 | ||||||||||
Receivables_Net
Receivables, Net | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Receivables, Net | ' | |||||||
Receivables, Net | ||||||||
Receivables, net are summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Billed | $ | 823 | $ | 810 | ||||
Unbilled | 432 | 366 | ||||||
Less progress payments | (188 | ) | (169 | ) | ||||
Total | 1,067 | 1,007 | ||||||
Less allowance for doubtful accounts | (9 | ) | (36 | ) | ||||
Receivables, net | $ | 1,058 | $ | 971 | ||||
Receivables expected to be collected beyond the next twelve months are classified as long-term and are included within Other Assets. Total receivables due from the U.S. Government including the Department of Defense and other government agencies, both directly and indirectly through subcontracts, were $312 million and $284 million at September 30, 2013 and 2012, respectively. U.S. Government unbilled receivables, net of progress payments, were $97 million and $93 million at September 30, 2013 and 2012, respectively. Accounts receivable due from equity affiliates were $52 million and $58 million at September 30, 2013 and 2012, respectively. | ||||||||
Unbilled receivables principally represent sales recorded under the percentage-of-completion method of accounting that have not been billed to customers in accordance with applicable contract terms. |
Inventories_Net
Inventories, Net | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||||||||||||||
Inventories, Net | ' | |||||||||||||||||||||||
Inventories, Net | ||||||||||||||||||||||||
Inventories, net are summarized as follows: | ||||||||||||||||||||||||
(in millions) | September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Finished goods | $ | 181 | $ | 168 | ||||||||||||||||||||
Work in process | 273 | 254 | ||||||||||||||||||||||
Raw materials, parts and supplies | 358 | 343 | ||||||||||||||||||||||
Less progress payments | (8 | ) | (2 | ) | ||||||||||||||||||||
Total | 804 | 763 | ||||||||||||||||||||||
Pre-production engineering costs | 714 | 569 | ||||||||||||||||||||||
Inventories, net | $ | 1,518 | $ | 1,332 | ||||||||||||||||||||
As of September 30, 2013, $463 million of the pre-production engineering costs is related to programs with Airbus and Bombardier. | ||||||||||||||||||||||||
Amortization expense for pre-production engineering costs for 2013, 2012 and 2011 was $25 million, $18 million and $15 million, respectively. As of September 30, 2013, the weighted average amortization period remaining for pre-production engineering costs included in Inventories, net was approximately 9 years. | ||||||||||||||||||||||||
Anticipated annual amortization expense for pre-production engineering costs is as follows: | ||||||||||||||||||||||||
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||
Anticipated amortization expense for pre-production engineering costs | $ | 39 | $ | 53 | $ | 73 | $ | 84 | $ | 92 | $ | 373 | ||||||||||||
In accordance with industry practice, inventories include amounts which are not expected to be realized within one year. These amounts primarily relate to pre-production engineering costs and life-time-buy inventory not expected to be realized within one year of $747 million and $607 million at September 30, 2013 and 2012, respectively. Life-time-buy inventory is inventory that is typically no longer produced by the Company's vendors but for which multiple years of supply are purchased in order to meet production and service requirements over the life span of a product. |
Property
Property | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ' | |||||||
Property | ' | |||||||
Property | ||||||||
Property is summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Land | $ | 10 | $ | 10 | ||||
Buildings and improvements | 388 | 383 | ||||||
Machinery and equipment | 1,066 | 1,045 | ||||||
Information systems software and hardware | 344 | 326 | ||||||
Furniture and fixtures | 65 | 66 | ||||||
Construction in progress | 101 | 88 | ||||||
Total | 1,974 | 1,918 | ||||||
Less accumulated depreciation | (1,201 | ) | (1,145 | ) | ||||
Property | $ | 773 | $ | 773 | ||||
Property additions acquired by incurring accounts payable, which are reflected as a non-cash transaction in the Company's Consolidated Statement of Cash Flows, were $19 million, $23 million and $21 million at September 30, 2013, 2012 and 2011, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill are summarized as follows: | ||||||||||||||||||||||||
(in millions) | Government | Commercial | Total | |||||||||||||||||||||
Systems | Systems | |||||||||||||||||||||||
Balance at September 30, 2011 | $ | 514 | $ | 266 | $ | 780 | ||||||||||||||||||
Foreign currency translation adjustments | — | — | — | |||||||||||||||||||||
Balance at September 30, 2012 | 514 | 266 | 780 | |||||||||||||||||||||
Reclassification of KOSI goodwill to assets held-for-sale | (3 | ) | — | (3 | ) | |||||||||||||||||||
Foreign currency translation adjustments | 2 | — | 2 | |||||||||||||||||||||
Balance at September 30, 2013 | $ | 513 | $ | 266 | $ | 779 | ||||||||||||||||||
The Company performs an annual impairment test of goodwill and indefinite-lived intangible assets during the second quarter of each fiscal year, or at any time there is an indication of potential impairment. The Company's 2013 and 2012 impairment tests resulted in no impairment. | ||||||||||||||||||||||||
Intangible assets are summarized as follows: | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
(in millions) | Gross | Accum | Net | Gross | Accum | Net | ||||||||||||||||||
Amort | Amort | |||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Developed technology and patents | $ | 222 | $ | (175 | ) | $ | 47 | $ | 221 | $ | (159 | ) | $ | 62 | ||||||||||
Customer relationships: | ||||||||||||||||||||||||
Acquired | 89 | (60 | ) | 29 | 91 | (57 | ) | 34 | ||||||||||||||||
Up-front sales incentives | 241 | (35 | ) | 206 | 212 | (26 | ) | 186 | ||||||||||||||||
License agreements | 13 | (8 | ) | 5 | 13 | (8 | ) | 5 | ||||||||||||||||
Trademarks and tradenames | 15 | (14 | ) | 1 | 15 | (13 | ) | 2 | ||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||
Trademarks and tradenames | — | — | — | 2 | — | 2 | ||||||||||||||||||
Intangible assets | $ | 580 | $ | (292 | ) | $ | 288 | $ | 554 | $ | (263 | ) | $ | 291 | ||||||||||
As of September 30, 2012, intangible assets with indefinite lives included $2 million associated with trademarks and tradenames of the KOSI business. As of September 30, 2013, the $2 million carrying value of this intangible asset is classified as held-for-sale within Other current assets, as described in Note 4. | ||||||||||||||||||||||||
As described in Note 23, Restructuring and Asset Impairment Charges, Net, the Company's Commercial Systems business impaired a license agreement in 2012 that resulted in a $4 million reduction to Intangible assets and a related charge that was recorded within Cost of Sales. | ||||||||||||||||||||||||
Amortization expense for intangible assets for 2013, 2012 and 2011 was $31 million, $39 million and $36 million, respectively. As of September 30, 2013, the weighted average amortization period remaining for up-front sales incentives was approximately 10 years. | ||||||||||||||||||||||||
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||
Anticipated amortization expense for up-front sales incentives | $ | 11 | $ | 17 | $ | 21 | $ | 23 | $ | 25 | $ | 109 | ||||||||||||
Anticipated amortization expense for all other intangible assets | 19 | 16 | 12 | 12 | 5 | 18 | ||||||||||||||||||
Total | $ | 30 | $ | 33 | $ | 33 | $ | 35 | $ | 30 | $ | 127 | ||||||||||||
Other_Assets
Other Assets | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Assets [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other Assets | ||||||||
Other assets are summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Long-term receivables | $ | 32 | $ | 34 | ||||
Investments in equity affiliates | 22 | 19 | ||||||
Exchange and rental assets (net of accumulated depreciation of $91 at September 30, 2013 and $94 at September 30, 2012) | 55 | 51 | ||||||
Other | 112 | 124 | ||||||
Other assets | $ | 221 | $ | 228 | ||||
Investments in Equity Affiliates | ||||||||
Investments in equity affiliates primarily consist of five joint ventures: | ||||||||
• | Vision Systems International, LLC (VSI): VSI is a joint venture with Elbit Systems, Ltd. for the joint pursuit of helmet-mounted cueing systems for the worldwide military fixed wing aircraft market | |||||||
• | AVIC Leihua Rockwell Collins Avionics Company (ALRAC): ALRAC is a joint venture with China Leihua Electronic Technology Research Institute, a subsidiary of the Aviation Industry Corporation of China (AVIC), for the joint production of integrated surveillance system products for the C919 aircraft in China | |||||||
• | Data Link Solutions LLC (DLS): DLS is a joint venture with BAE Systems, plc for the joint pursuit of the worldwide military data link market | |||||||
• | Integrated Guidance Systems LLC (IGS): IGS is a joint venture with Honeywell International Inc. for the joint pursuit of integrated precision guidance solutions for worldwide guided weapons systems | |||||||
• | Quest Flight Training Limited (Quest): Quest is a joint venture with Quadrant Group plc that provides aircrew training services primarily for the United Kingdom Ministry of Defence | |||||||
Each joint venture is 50 percent owned by the Company and accounted for under the equity method. Under the equity method of accounting for investments, the Company’s proportionate share of the earnings or losses of its equity affiliates are included in Net income and classified as Other income, net in the Consolidated Statement of Operations. For segment performance reporting purposes, Rockwell Collins’ share of earnings or losses of VSI, DLS, IGS and Quest are included in the operating results of the Government Systems segment, while the share of ALRAC is included in the operating results of the Commercial Systems segment. | ||||||||
In the normal course of business or pursuant to the underlying joint venture agreements, the Company may sell products or services to equity affiliates. The Company defers a portion of the profit generated from these sales equal to its ownership interest in the equity affiliates until the underlying product is ultimately sold to an unrelated third party. Sales to equity affiliates were $144 million, $142 million and $102 million for the years ended September 30, 2013, 2012 and 2011, respectively. The deferred portion of profit generated from sales to equity affiliates was $1 million at September 30, 2013 and $3 million at September 30, 2012. | ||||||||
Exchange and Rental Assets | ||||||||
Exchange and rental assets consist primarily of Company products that are either exchanged or rented to customers on a short-term basis in connection with warranty and other service related activities. These assets are recorded at acquisition or production cost and depreciated using the straight-line method over their estimated lives, up to 15 years. Depreciation methods and lives are reviewed periodically with any changes recorded on a prospective basis. Depreciation expense for exchange and rental assets was $10 million, $10 million and $11 million for the years ended September 30, 2013, 2012 and 2011, respectively. |
Debt
Debt | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
Short-term Debt | ||||||||
Short-term debt and a reconciliation to the carrying amount is summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Short-term commercial paper borrowings | $ | 235 | $ | — | ||||
Current portion of long-term debt | 200 | — | ||||||
Current portion of fair value swap adjustment (Notes 17 and 18) | 1 | — | ||||||
Short-term debt | $ | 436 | $ | — | ||||
Commercial Paper Program | ||||||||
Under the Company’s commercial paper program, the Company may sell up to $850 million face amount of unsecured short-term promissory notes in the commercial paper market. The commercial paper notes may bear interest or may be sold at a discount, and have a maturity of not more than 364 days from the time of issuance. The commercial paper program is supported by the Company's $850 million revolving credit facility. At September 30, 2013, short-term commercial paper borrowings outstanding were $235 million with a weighted-average interest rate and maturity period of 0.18 percent and 15 days, respectively. At September 30, 2012, there were no outstanding short-term commercial paper borrowings. | ||||||||
Existing Credit Facilities | ||||||||
In the event the Company's access to the commercial paper markets is impaired, the Company has access to an $850 million unsecured revolving credit facility that was entered into on May 26, 2011, and has a term of five years. This revolving credit facility is in place principally to support the Company's commercial paper program. The credit facility includes one financial covenant requiring the Company to maintain a consolidated debt to total capitalization ratio of not greater than 60 percent. The ratio excludes the equity impact on accumulated other comprehensive loss related to defined benefit retirement plans. The ratio was 26 percent as of September 30, 2013. The credit facility also contains covenants that require the Company to satisfy certain conditions in order to incur debt secured by liens, engage in sale/leaseback transactions or merge or consolidate with another entity. Borrowings under this credit facility bear interest at the London Interbank Offered Rate (LIBOR) plus a variable margin based on the Company’s unsecured long-term debt rating or, at the Company’s option, rates determined by competitive bid. At September 30, 2013 and September 30, 2012, there were no outstanding borrowings under this revolving credit facility. | ||||||||
In addition, short-term credit facilities available to non-U.S. subsidiaries amounted to $57 million as of September 30, 2013, of which $17 million was utilized to support commitments in the form of commercial letters of credit. At | ||||||||
September 30, 2013 and September 30, 2012, there were no short-term borrowings outstanding under the Company’s non-U.S. subsidiaries’ credit facilities. | ||||||||
At September 30, 2013 and September 30, 2012, there were no significant commitment fees or compensating balance requirements under any of the Company’s credit facilities. | ||||||||
Future Credit Facilities, Not Yet in Effect | ||||||||
The Company has entered into new credit agreements to ensure adequate commercial paper borrowing capacity to finance a portion of the pending ARINC acquisition and to fund other short-term cash requirements. These credit agreements will not become effective until the closing conditions described below for each agreement are fulfilled. | ||||||||
On September 24, 2013, the Company entered into a $1 billion five-year unsecured revolving credit agreement with various banks to extend the term and increase the size of the Company's existing $850 million revolving credit facility. The initial borrowing under the five-year revolving credit agreement is subject to customary closing conditions as well as, among other conditions, the payoff and termination of the Company's existing $850 million five-year senior unsecured revolving credit agreement. The initial borrowing is not subject to the consummation of the ARINC acquisition, however in the event the ARINC acquisition is not consummated, the aggregate principal amount available under this agreement will be lowered from $1 billion to $850 million. On September 24, 2013, the Company also entered into a $200 million 364-day unsecured revolving credit agreement with various banks. The initial borrowing under the 364-day revolving credit agreement is subject to customary closing conditions as well as, among other conditions, the consummation of the ARINC acquisition. This credit agreement will automatically terminate in the event the ARINC acquisition is not consummated. | ||||||||
As of September 30, 2013, the closing conditions under the $1 billion credit agreement and the $200 million credit agreement have not been satisfied. The Company contemplates satisfying the conditions precedent to the closing of these credit agreements substantially concurrent with the consummation of the ARINC acquisition. The covenants, representations, warranties and events of default set forth in the new revolving credit agreements are substantially the same as those in the existing $850 million credit agreement. Borrowings under both credit agreements bear interest at LIBOR plus a variable margin based on the Company’s unsecured long-term debt rating or, at the Company’s option, rates determined by competitive bid. | ||||||||
Bridge Credit Agreement | ||||||||
On September 24, 2013, the Company entered into a $900 million 364-day senior unsecured bridge term loan credit agreement with various banks. If drawn upon, the proceeds of the borrowing under the bridge credit agreement will be used to finance a portion of the purchase price of the pending ARINC acquisition and to pay related transaction fees and expenses. Any borrowings under the bridge credit agreement will be subject to customary closing conditions as well as, among other conditions, the substantially concurrent consummation of the ARINC acquisition. Borrowings under this credit agreement would bear interest at LIBOR plus a variable margin based on the Company’s unsecured long-term debt rating. The amount available to borrow under this bridge credit agreement will be reduced by the amount of the net proceeds of any debt incurred to finance the ARINC acquisition. This bridge credit agreement will automatically terminate in the event the ARINC acquisition is not consummated by May 10, 2014. At September 30, 2013 there were no outstanding borrowings under this credit agreement. | ||||||||
Current Portion of Long-term Debt | ||||||||
On November 20, 2003, the Company issued $200 million of 4.75 percent fixed rate unsecured debt due | ||||||||
December 1, 2013 (the 2013 Notes). At the time of the debt issuance, the Company entered into interest rate swap contracts which effectively converted $100 million of the 2013 Notes to floating rate debt based on six-month LIBOR less 0.075 percent. See Notes 17 and 18 for additional information relating to the interest rate swap contracts. The 2013 Notes mature within one year and are included in the Consolidated Statement of Financial Position net of any unamortized discount within the caption Short-term Debt. The 2013 Notes contain covenants that require the Company to satisfy certain conditions in order to incur debt secured by liens, engage in sales/leaseback transactions, merge or consolidate with another entity or transfer substantially all of the Company’s assets. The Company was in compliance with all debt covenants at September 30, 2013 and September 30, 2012. | ||||||||
Long-term Debt | ||||||||
On November 16, 2011, the Company issued $250 million of 3.10 percent fixed rate unsecured debt due November 15, 2021 (the 2021 Notes). The net proceeds to the Company from the sale of the 2021 Notes, after deducting a $1 million discount and $2 million of debt issuance costs, were $247 million. | ||||||||
On May 6, 2009, the Company issued $300 million of 5.25 percent fixed rate unsecured debt due July 15, 2019 (the 2019 Notes). The net proceeds to the Company from the sale of the 2019 Notes, after deducting a $2 million discount and $2 million of debt issuance costs, were $296 million. In January 2010, the Company entered into interest rate swap contracts which effectively converted $150 million of the 2019 Notes to floating rate debt based on six-month LIBOR plus 1.235 percent. See Notes 17 and 18 for additional information relating to the interest rate swap contracts. | ||||||||
The 2021 and 2019 Notes are included in the Consolidated Statement of Financial Position net of any unamortized discount within the caption Long-term Debt, Net. The debt issuance costs are capitalized within Other Assets on the Consolidated Statement of Financial Position. The debt issuance costs and any discounts are amortized over the life of the debt and recorded in Interest expense. | ||||||||
The 2021 and 2019 Notes each contain covenants that require the Company to satisfy certain conditions in order to incur debt secured by liens, engage in sales/leaseback transactions, merge or consolidate with another entity or transfer substantially all of the Company’s assets. The Company was in compliance with all debt covenants at September 30, 2013 and September 30, 2012. | ||||||||
Long-term debt and a reconciliation to the carrying amount is summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Principal amount of 2021 Notes, net of discount | $ | 249 | $ | 249 | ||||
Principal amount of 2019 Notes, net of discount | 299 | 299 | ||||||
Principal amount of 2013 Notes | 200 | 200 | ||||||
Fair value swap adjustment (Notes 17 and 18) | 16 | 31 | ||||||
Total | $ | 764 | $ | 779 | ||||
Less current portion | 201 | — | ||||||
Long-term debt, net | $ | 563 | $ | 779 | ||||
Interest paid on debt for the years ended September 30, 2013, 2012 and 2011 was $28 million, $21 million and $18 million, respectively. |
Retirement_Benefits
Retirement Benefits | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Retirement Benefits | ' | ||||||||||||||||||||||||||||||||
Retirement Benefits | |||||||||||||||||||||||||||||||||
The Company sponsors defined benefit pension (Pension Benefits) and other postretirement (Other Retirement Benefits) plans which provide monthly pension and other benefits to eligible employees upon retirement. | |||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||
The Company historically provided pension benefits to most of the Company's U.S. employees in the form of non-contributory, defined benefit plans that are considered qualified plans under applicable laws. The benefits provided under these plans for salaried employees are generally based on years of service and average compensation. The benefits provided under these plans for hourly employees are generally based on specified benefit amounts and years of service. In addition, the Company sponsors an unfunded non-qualified defined benefit plan for certain employees. | |||||||||||||||||||||||||||||||||
In June 2003, the Company amended its U.S. qualified and non-qualified defined benefit pension plans to discontinue benefit accruals for salary increases and services rendered after September 30, 2006. These changes impacted all of the Company's domestic pension plans for all salaried and hourly employees who were not covered by collective bargaining agreements. Concurrently, the Company supplemented its existing defined contribution savings plan effective October 1, 2006 to include an additional Company contribution. | |||||||||||||||||||||||||||||||||
The Company also maintains four defined benefit pension plans in countries outside of the U.S., two of which are unfunded. | |||||||||||||||||||||||||||||||||
Other Retirement Benefits | |||||||||||||||||||||||||||||||||
Other retirement benefits consist of retiree health care and life insurance benefits that are provided to substantially all of the Company's U.S. employees hired before October 1, 2006 and their beneficiaries. Employees generally become eligible to receive these benefits if they retire after age 55 with at least 10 years of service. Most plans are contributory with retiree contributions generally based upon years of service and adjusted annually by the Company. Retiree medical plans pay a stated percentage of expenses reduced by deductibles and other coverage, principally Medicare. The amount the Company will contribute toward retiree medical coverage for most participants is fixed. Additional premium contributions will be required from participants for all costs in excess of the Company's fixed contribution amount. Retiree life insurance plans provide coverage at a flat dollar amount or as a multiple of salary. With the exception of certain bargaining unit plans, Other Retirement Benefits are funded as expenses are incurred. | |||||||||||||||||||||||||||||||||
Components of Expense (Income) | |||||||||||||||||||||||||||||||||
The components of expense (income) for Pension Benefits and Other Retirement Benefits are summarized below: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Retirement Benefits | ||||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 8 | $ | 8 | $ | 4 | $ | 4 | $ | 4 | |||||||||||||||||||||
Interest cost | 139 | 153 | 159 | 8 | 10 | 11 | |||||||||||||||||||||||||||
Expected return on plan assets | (203 | ) | (213 | ) | (212 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||
Prior service credit | (18 | ) | (18 | ) | (19 | ) | (8 | ) | (6 | ) | (16 | ) | |||||||||||||||||||||
Net actuarial loss | 79 | 57 | 48 | 12 | 11 | 12 | |||||||||||||||||||||||||||
Net benefit expense (income) | $ | 7 | $ | (13 | ) | $ | (16 | ) | $ | 15 | $ | 18 | $ | 10 | |||||||||||||||||||
Funded Status and Net Liability | |||||||||||||||||||||||||||||||||
The Company recognizes the unfunded status of defined benefit retirement plans on the Consolidated Statement of Financial Position as Retirement Benefits. The current portion of the liability is the amount by which the actuarial present value of benefits included in the benefit obligation payable in the next twelve months exceeds the fair value of the plan assets and is reflected in Compensation and benefits in the Consolidated Statement of Financial Position. | |||||||||||||||||||||||||||||||||
The following table reconciles the projected benefit obligations (PBO), plan assets, funded status and net liability for the Company's Pension Benefits and the Other Retirement Benefits. | |||||||||||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||||||||||
Retirement Benefits | |||||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
PBO at beginning of period | $ | 3,967 | $ | 3,518 | $ | 254 | $ | 254 | |||||||||||||||||||||||||
Service cost | 10 | 8 | 4 | 4 | |||||||||||||||||||||||||||||
Interest cost | 139 | 153 | 8 | 10 | |||||||||||||||||||||||||||||
Discount rate and other assumption changes | (319 | ) | 408 | (19 | ) | 25 | |||||||||||||||||||||||||||
Actuarial losses (gains) | 19 | 57 | (20 | ) | (7 | ) | |||||||||||||||||||||||||||
Plan amendments | — | — | 1 | (16 | ) | ||||||||||||||||||||||||||||
Plan participant contributions | — | — | 5 | 8 | |||||||||||||||||||||||||||||
Benefits paid | (160 | ) | (175 | ) | (19 | ) | (24 | ) | |||||||||||||||||||||||||
Other | 4 | (2 | ) | — | — | ||||||||||||||||||||||||||||
PBO at end of period | 3,660 | 3,967 | 214 | 254 | |||||||||||||||||||||||||||||
Plan assets at beginning of period | 2,501 | 2,111 | 12 | 9 | |||||||||||||||||||||||||||||
Actual return on plan assets | 317 | 437 | 1 | 2 | |||||||||||||||||||||||||||||
Company contributions | 122 | 126 | 15 | 17 | |||||||||||||||||||||||||||||
Plan participant contributions | — | — | 5 | 8 | |||||||||||||||||||||||||||||
Benefits paid | (160 | ) | (175 | ) | (19 | ) | (24 | ) | |||||||||||||||||||||||||
Other | (1 | ) | 2 | — | — | ||||||||||||||||||||||||||||
Plan assets at end of period | 2,779 | 2,501 | 14 | 12 | |||||||||||||||||||||||||||||
Funded status of plans | $ | (881 | ) | $ | (1,466 | ) | $ | (200 | ) | $ | (242 | ) | |||||||||||||||||||||
Funded status consists of: | |||||||||||||||||||||||||||||||||
Retirement benefits liability | $ | (879 | ) | $ | (1,461 | ) | $ | (198 | ) | $ | (231 | ) | |||||||||||||||||||||
Compensation and benefits liability | (12 | ) | (11 | ) | (2 | ) | (11 | ) | |||||||||||||||||||||||||
Other assets | 10 | 6 | — | — | |||||||||||||||||||||||||||||
Net liability | $ | (881 | ) | $ | (1,466 | ) | $ | (200 | ) | $ | (242 | ) | |||||||||||||||||||||
The Company's non-U.S. defined benefit pension plans represented 5 percent and 4 percent of the total PBO at September 30, 2013 and 2012, respectively. The accumulated benefit obligation for all defined benefit pension plans was $3,644 million and $3,952 million at September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||
Other Comprehensive Loss | |||||||||||||||||||||||||||||||||
The following table summarizes the amounts included in Accumulated other comprehensive loss before tax related to retirement benefits as of September 30, 2013 and 2012 and changes recognized in Other comprehensive loss before tax for the years ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||||||||||
Retirement Benefits | |||||||||||||||||||||||||||||||||
(in millions) | Prior Service | Net Actuarial | Prior Service | Net Actuarial | |||||||||||||||||||||||||||||
Cost (Credit) | Loss | Cost (Credit) | Loss | ||||||||||||||||||||||||||||||
Balance at September 30, 2011 | $ | (42 | ) | $ | 2,267 | $ | (17 | ) | $ | 157 | |||||||||||||||||||||||
Current year prior service cost | — | — | (16 | ) | — | ||||||||||||||||||||||||||||
Current year net actuarial loss | — | 241 | — | 18 | |||||||||||||||||||||||||||||
Amortization of prior service cost | 18 | — | 6 | — | |||||||||||||||||||||||||||||
Amortization of actuarial loss | — | (57 | ) | — | (11 | ) | |||||||||||||||||||||||||||
Balance at September 30, 2012 | (24 | ) | 2,451 | (27 | ) | 164 | |||||||||||||||||||||||||||
Current year prior service cost | — | — | 1 | — | |||||||||||||||||||||||||||||
Current year net actuarial gain | — | (414 | ) | — | (39 | ) | |||||||||||||||||||||||||||
Amortization of prior service cost | 18 | — | 8 | — | |||||||||||||||||||||||||||||
Amortization of actuarial loss | — | (79 | ) | (12 | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2013 | $ | (6 | ) | $ | 1,958 | $ | (18 | ) | $ | 113 | |||||||||||||||||||||||
The estimated amounts that will be amortized from Accumulated other comprehensive loss into expense (income) for Pension Benefits and Other Retirement Benefits during the year ending September 30, 2014 are as follows: | |||||||||||||||||||||||||||||||||
(in millions) | Pension | Other | Total | ||||||||||||||||||||||||||||||
Benefits | Retirement | ||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||
Prior service cost | $ | (12 | ) | $ | (10 | ) | $ | (22 | ) | ||||||||||||||||||||||||
Net actuarial loss | 67 | 8 | 75 | ||||||||||||||||||||||||||||||
Total | $ | 55 | $ | (2 | ) | $ | 53 | ||||||||||||||||||||||||||
Actuarial Assumptions | |||||||||||||||||||||||||||||||||
The following table presents the significant assumptions used in determining the benefit obligations: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||||||||||
Retirement Benefits | |||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Discount rate | 4.48 | % | 3.56 | % | 3.93 | % | 4.08 | % | 4.11 | % | 3.21 | % | |||||||||||||||||||||
Compensation increase rate | — | — | 3.45 | % | 3.46 | % | — | — | |||||||||||||||||||||||||
Discount rates used to determine the benefit obligations are determined by using a weighted average of market-observed yields for high quality fixed income securities that correspond to the payment of benefits. | |||||||||||||||||||||||||||||||||
The Company's U.S. qualified and non-qualified plans were amended to discontinue benefit accruals for salary increases and services rendered after September 30, 2006. The only U.S. plans that continue to accrue benefits are certain plans associated with collective bargaining agreements, and these plans are not impacted by increases in compensation as the benefit formula is dependent solely on years of service. As a result, the compensation increase rate assumption for U.S. plans is zero. | |||||||||||||||||||||||||||||||||
Significant assumptions used in determining the net benefit expense (income) are as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||||||||||
Retirement Benefits | |||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Discount rate | 3.56 | % | 4.43 | % | 4.08 | % | 5.57 | % | 3.21 | % | 4.2 | % | |||||||||||||||||||||
Expected long-term return on plan assets | 8.25 | % | 8.75 | % | 8.23 | % | 8.73 | % | 8.25 | % | 8.75 | % | |||||||||||||||||||||
Compensation increase rate | — | — | 3.46 | % | 3.46 | % | — | — | |||||||||||||||||||||||||
Health care cost gross trend rate (1) | — | — | — | — | 8.5 | % | 9 | % | |||||||||||||||||||||||||
Ultimate trend rate (1) | — | — | — | — | 5 | % | 5 | % | |||||||||||||||||||||||||
Year that trend reaches ultimate rate (1) | — | — | — | — | 2019 | 2019 | |||||||||||||||||||||||||||
(1) Due to the effect of the fixed Company contribution, increasing or decreasing the health care cost trend rate by one percentage point would not have a significant impact on the Company's cost of providing Other Retirement Benefits. | |||||||||||||||||||||||||||||||||
Expected long-term return on plan assets for each year presented is based on both historical long-term actual and expected future investment returns considering the current investment mix of plan assets. The Company uses a market-related value of plan assets reflecting changes in the fair value of plan assets over a five-year period. The Company amortizes actuarial gains and losses in excess of 10 percent of the greater of the market-related value of plan assets or the projected benefit obligation (the corridor) on a straight-line basis over the expected future lifetime of inactive participants, which was approximately 26 years years at September 30, 2013, as almost all of the plan's participants are considered inactive. | |||||||||||||||||||||||||||||||||
Prior service costs resulting from plan amendments are amortized in equal annual amounts over the average remaining service period of affected active participants or over the remaining life expectancy of affected retired participants. | |||||||||||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||||||||||
Total plan assets for Pension Benefits and Other Retirement Benefits as of September 30, 2013 and 2012 were $2,793 million and $2,513 million, respectively. The Company has established investment objectives that seek to preserve and maximize the amount of plan assets available to pay plan benefits. These objectives are achieved through investment guidelines requiring diversification and allocation strategies designed to maximize the long-term returns on plan assets while maintaining a prudent level of investment risk. These investment strategies are implemented using actively managed and indexed assets. Target and actual asset allocations as of September 30, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||||||
Target Mix | 2013 | 2012 | |||||||||||||||||||||||||||||||
Equities | 40% | - | 70% | 65 | % | 61 | % | ||||||||||||||||||||||||||
Fixed income | 25% | - | 60% | 32 | % | 36 | % | ||||||||||||||||||||||||||
Alternative investments | —% | - | —% | — | % | — | % | ||||||||||||||||||||||||||
Cash | —% | - | 5% | 3 | % | 3 | % | ||||||||||||||||||||||||||
Alternative investments may include real estate, hedge funds, venture capital and private equity. There were no plan assets invested in the securities of the Company as of September 30, 2013 and 2012 or at any time during the years then ended. Target and actual asset allocations are periodically rebalanced between asset classes in order to mitigate investment risk and maintain asset classes within target allocations. | |||||||||||||||||||||||||||||||||
The following table presents the fair value of the Company's pension plans' assets as of September 30, 2013 and 2012, by asset category segregated by level within the fair value hierarchy, as described in Note 17: | |||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset category: | |||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
U.S. equity | $ | 821 | $ | 246 | $ | — | $ | 1,067 | $ | 859 | $ | 183 | $ | — | $ | 1,042 | |||||||||||||||||
Non-U.S. equity | 699 | 50 | — | 749 | 438 | 48 | — | 486 | |||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
Corporate | — | 696 | — | 696 | — | 545 | — | 545 | |||||||||||||||||||||||||
U.S. government | 41 | 82 | — | 123 | 139 | 133 | — | 272 | |||||||||||||||||||||||||
Emerging market | — | 49 | — | 49 | — | 72 | — | 72 | |||||||||||||||||||||||||
Mortgage and asset-backed | — | 5 | — | 5 | — | 3 | — | 3 | |||||||||||||||||||||||||
Other | — | 19 | — | 19 | — | 16 | — | 16 | |||||||||||||||||||||||||
Cash and cash equivalents | — | 60 | — | 60 | — | 58 | — | 58 | |||||||||||||||||||||||||
Sub-total | 1,561 | 1,207 | — | 2,768 | 1,436 | 1,058 | — | 2,494 | |||||||||||||||||||||||||
Net receivables related to investment transactions | 11 | 7 | |||||||||||||||||||||||||||||||
Total | $ | 2,779 | $ | 2,501 | |||||||||||||||||||||||||||||
The following table presents the fair value of the Company's other retirement benefits plan's assets as of September 30, 2013 and 2012, by asset category segregated by level within the fair value hierarchy, as described in Note 17: | |||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset category: | |||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
U.S. equity | $ | 7 | $ | — | $ | — | $ | 7 | $ | 6 | $ | — | $ | — | $ | 6 | |||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
Corporate | — | 2 | — | 2 | — | 1 | — | 1 | |||||||||||||||||||||||||
U.S. government | 2 | 1 | — | 3 | 2 | 1 | — | 3 | |||||||||||||||||||||||||
Mortgage and asset-backed | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Cash and cash equivalents | — | 2 | — | 2 | — | 2 | — | 2 | |||||||||||||||||||||||||
Total | $ | 9 | $ | 5 | $ | — | $ | 14 | $ | 8 | $ | 4 | $ | — | $ | 12 | |||||||||||||||||
Valuation Techniques | |||||||||||||||||||||||||||||||||
Level 1 assets for the pension plans and other retirement benefits plan are primarily comprised of equity and fixed income securities. Level 1 equity securities are actively traded on U.S. and non-U.S. exchanges and are valued using the market approach at quoted market prices on the measurement date. Level 1 fixed income securities are valued using quoted market prices. | |||||||||||||||||||||||||||||||||
Level 2 equity securities contain equity funds that hold investments with values based on quoted market prices, but for which the funds are not valued on a quoted market basis. Level 2 fixed income securities are primarily valued using pricing models that use observable market data or bids provided by independent investment brokerage firms. | |||||||||||||||||||||||||||||||||
Cash and cash equivalents includes cash which is used to pay benefits and cash invested in a short-term investment fund that holds securities with values based on quoted market prices, but for which the funds are not valued on a quoted market basis. As such, the cash and cash equivalents in our pension and other retirement plan assets are classified as Level 2 in the tables above. | |||||||||||||||||||||||||||||||||
The Company does not have any Level 3 assets in its pension plans or other retirement benefit plan. As described in Note 17, the fair value of a Level 3 asset is derived from unobservable inputs that are based on the Company's own assumptions. | |||||||||||||||||||||||||||||||||
Contributions | |||||||||||||||||||||||||||||||||
For the years ended September 30, 2013 and 2012, the Company made contributions to its pension plans as follows: | |||||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | |||||||||||||||||||||||||||||||
Contributions to U.S. qualified plan | $ | 110 | $ | 113 | |||||||||||||||||||||||||||||
Contributions to U.S. non-qualified plan | 7 | 8 | |||||||||||||||||||||||||||||||
Contributions to non-U.S. plans | 5 | 5 | |||||||||||||||||||||||||||||||
Total | $ | 122 | $ | 126 | |||||||||||||||||||||||||||||
The Company’s objective with respect to the funding of its pension plans is to provide adequate assets for the payment of future benefits. Pursuant to this objective, the Company will fund its pension plans as required by governmental regulations and may consider discretionary contributions as conditions warrant. In October 2013, the Company voluntarily contributed $55 million to its U.S. qualified pension plan, subsequent to its 2013 fiscal year end. There was no minimum statutory funding requirement for 2014 and the Company does not currently expect to make any additional discretionary contributions during 2014 to this plan. Any additional future contributions necessary to satisfy minimum statutory funding requirements are dependent upon actual plan asset returns and interest rates. Contributions to the non-U.S. plans and the U.S. non-qualified plan are expected to total $14 million in 2014. | |||||||||||||||||||||||||||||||||
Contributions to the Company's other postretirement plans are expected to total $16 million in 2014. | |||||||||||||||||||||||||||||||||
Benefit Payments | |||||||||||||||||||||||||||||||||
The following table reflects estimated benefit payments to be made to eligible participants for each of the next five years and the following five years in the aggregate: | |||||||||||||||||||||||||||||||||
(in millions) | Pension | Other | |||||||||||||||||||||||||||||||
Benefits | Retirement | ||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||
2014 | $ | 210 | $ | 16 | |||||||||||||||||||||||||||||
2015 | 201 | 16 | |||||||||||||||||||||||||||||||
2016 | 206 | 15 | |||||||||||||||||||||||||||||||
2017 | 212 | 18 | |||||||||||||||||||||||||||||||
2018 | 218 | 17 | |||||||||||||||||||||||||||||||
2019Â -Â 2023 | 1,148 | 83 | |||||||||||||||||||||||||||||||
Estimated benefit payments for Other Retirement Benefits in the table above are shown net of plan participant contributions and therefore reflect the Company's portion only. Substantially all of the Pension Benefit payments relate to the Company's U.S. qualified funded plans which are paid from the pension trust. | |||||||||||||||||||||||||||||||||
Defined Contribution Savings Plans and Employee Stock Purchase Plan | |||||||||||||||||||||||||||||||||
The Company sponsors defined contribution savings plans that are available to the majority of its employees. The plans allow employees to contribute a portion of their compensation on a pre-tax and/or after-tax basis in accordance with specified guidelines. The Company matches a percentage of employee contributions using common stock of the Company up to certain limits. Employees may transfer at any time all or a portion of their balance in Company common stock to any of the other investment options offered within the plans. The Company is authorized to issue 16.5 million shares under the defined contribution savings plans, of which 3.1 million shares are available for future contributions at September 30, 2013. Additionally, the defined contribution savings plan includes a cash contribution based on an employee's age and service. | |||||||||||||||||||||||||||||||||
The Company's expense related to the defined contribution savings plans for 2013, 2012, and 2011 was as follows: | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
(in millions) | Shares | Expense | Shares | Expense | Shares | Expense | |||||||||||||||||||||||||||
Contribution in shares: | |||||||||||||||||||||||||||||||||
Defined contribution savings plans | 0.7 | $ | 43 | 1.1 | $ | 58 | 1 | $ | 57 | ||||||||||||||||||||||||
Contribution in cash: | |||||||||||||||||||||||||||||||||
Retirement contribution | 39 | 41 | 39 | ||||||||||||||||||||||||||||||
Other | 3 | 2 | 1 | ||||||||||||||||||||||||||||||
Total | $ | 85 | $ | 101 | $ | 97 | |||||||||||||||||||||||||||
Effective January 1, 2013, the Company's defined contribution savings plan matching contribution decreased from 75 percent to 50 percent of the first 8 percent of eligible compensation contributed by participants. The lower contribution rate reduced the amount of expense and the amount of common stock issued to employees during the year ended September 30, 2013 as compared to the prior year. | |||||||||||||||||||||||||||||||||
The Company also offers an Employee Stock Purchase Plan (ESPP) which allows employees to have their base compensation withheld to purchase the Company's common stock each month at 95 percent of the fair market value on the last day of the month. During 2013, the Company retired the legacy ESPP and replaced it with a new ESPP that is substantially the same. As of September 30, 2013, 2.9 million shares are available for future purchase. The ESPP is considered a non-compensatory plan and accordingly no compensation expense is recorded in connection with this benefit. During 2013, 2012 and 2011, 0.2 million, 0.2 million and 0.2 million shares, respectively, of Company common stock were issued to employees at a value of $10 million, $11 million and $11 million for the respective periods. |
Shareowners_Equity
Shareowners' Equity | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Shareowners' Equity | ' | ||||||||||||
Shareowners' Equity | |||||||||||||
Common Stock | |||||||||||||
The Company is authorized to issue one billion shares of common stock, par value $0.01 per share, and 25 million shares of preferred stock, without par value. | |||||||||||||
Treasury Stock | |||||||||||||
The Company repurchased shares of its common stock as follows: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Amount of share repurchases | $ | 569 | $ | 723 | $ | 322 | |||||||
Number of shares repurchased | 9.8 | 13.3 | 5.5 | ||||||||||
At September 30, 2013, the Company was authorized to repurchase an additional $411 million of outstanding stock under the Company's share repurchase program. Approximately $0, $16 million, and $0 of the 2013, 2012 and 2011 share repurchases reflected in the table above are included within accounts payable at September 30, 2013, 2012 and 2011, respectively, and are reflected as a non-cash transaction in the Consolidated Statement of Cash Flows. | |||||||||||||
Accumulated Other Comprehensive Loss    | |||||||||||||
Accumulated other comprehensive loss (AOCL) consists of the following: | |||||||||||||
September 30 | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Unamortized pension and other retirement benefits (net of taxes of $754 for 2013, $945 for 2012 and $872 for 2011) | $ | (1,293 | ) | $ | (1,619 | ) | $ | (1,493 | ) | ||||
Foreign currency translation adjustment | 12 | 10 | (3 | ) | |||||||||
Foreign currency cash flow hedge adjustment | (6 | ) | 2 | (1 | ) | ||||||||
Accumulated other comprehensive loss | $ | (1,287 | ) | $ | (1,607 | ) | $ | (1,497 | ) |
StockBased_Compensation_and_Ea
Stock-Based Compensation and Earnings Per Share | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Stock Based Compensation and Earnings Per Share Abstract | ' | |||||||||||||||||||||
Stock-Based Compensation and Earnings Per Share | ' | |||||||||||||||||||||
Stock-Based Compensation and Earnings Per Share | ||||||||||||||||||||||
Stock-Based Compensation Program Description | ||||||||||||||||||||||
Under the Company's 2006 Long-Term Incentives Plan, up to 17.5 million shares of common stock may be issued by the Company as non-qualified options, incentive stock options, performance units, performance shares, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, and other awards. Each share issued pursuant to an award of restricted stock, restricted stock units, performance shares, and performance units counts as two shares against the authorized limit. Shares available for future grant or payment under this plan were 6.5 million at September 30, 2013. | ||||||||||||||||||||||
Under the Company's 2001 Long-Term Incentives Plan and Directors Stock Plan, up to 14.3 million shares of common stock may be issued by the Company as non-qualified options, incentive stock options, performance units, performance shares, stock appreciation rights and restricted stock. Shares available for future grant or payment under these plans were less than 0.1 million at September 30, 2013. | ||||||||||||||||||||||
Options to purchase common stock of the Company have been granted under various incentive plans to directors, officers and other key employees. All of the Company's stock-based incentive plans require options to be granted at prices equal to or above the fair market value of the common stock on the dates the options are granted. The plans provide that the option price for certain options granted under the plans may be paid by the employee in cash, shares of common stock or a combination thereof. Certain option awards provide for accelerated vesting if there is a change in control. Stock options generally expire ten years from the date they are granted and generally vest ratably over three years. | ||||||||||||||||||||||
The Company utilizes performance shares, restricted stock and restricted stock units that generally cliff vest at the end of three years. The fair value of performance shares, restricted stock and restricted stock units is estimated using the closing share price on the day of grant. The number of performance shares that will ultimately be issued is based on achievement of performance targets over a three-year period that considers cumulative sales growth and return on sales with an additional potential adjustment up or down depending on the Company's total return to shareowners compared to a group of peer companies. | ||||||||||||||||||||||
The Company's stock-based compensation awards are designed to align management's interests with those of the Company's shareowners and to reward outstanding Company performance. The Company has an ongoing share repurchase plan and expects to satisfy stock option exercises and stock award issuances from treasury stock. | ||||||||||||||||||||||
Stock-based compensation expense is recognized on a straight-line basis over the requisite service period. Total stock-based compensation expense and related income tax benefit included within the Consolidated Statement of Operations for 2013, 2012, and 2011 is as follows: | ||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||||||||||||
Stock-based compensation expense included in: | ||||||||||||||||||||||
Cost of sales | $ | 6 | $ | 7 | $ | 7 | ||||||||||||||||
Selling, general and administrative expenses | 14 | 17 | 17 | |||||||||||||||||||
Total | $ | 20 | $ | 24 | $ | 24 | ||||||||||||||||
Income tax benefit | $ | 7 | $ | 8 | $ | 8 | ||||||||||||||||
General Option Information | ||||||||||||||||||||||
The following summarizes the activity of the Company's stock options for 2013: | ||||||||||||||||||||||
Shares (in thousands) | Weighted | Weighted | Aggregate | |||||||||||||||||||
Average | Average | Intrinsic | ||||||||||||||||||||
Exercise | Remaining | Value | ||||||||||||||||||||
Price | Life | (in millions) | ||||||||||||||||||||
(in years) | ||||||||||||||||||||||
Outstanding at September 30, 2012 | 5,520 | $ | 46.13 | |||||||||||||||||||
Granted | 965 | 55.6 | ||||||||||||||||||||
Exercised | (1,623 | ) | 38.01 | |||||||||||||||||||
Forfeited or expired | (218 | ) | 54.44 | |||||||||||||||||||
Outstanding at September 30, 2013 | 4,644 | $ | 50.55 | 5.9 | $ | 86 | ||||||||||||||||
Vested or expected to vest (1) | 4,569 | $ | 50.46 | 5.9 | $ | 86 | ||||||||||||||||
Exercisable at September 30, 2013 | 3,155 | $ | 48.15 | 4.7 | $ | 66 | ||||||||||||||||
-1 | Represents outstanding options reduced by expected forfeitures | |||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Weighted-average fair value per share of options granted | $ | 12.81 | $ | 13.89 | $ | 14.77 | ||||||||||||||||
Intrinsic value of options exercised (in millions) (2) | $ | 43 | $ | 23 | $ | 26 | ||||||||||||||||
Tax deduction resulting from intrinsic value of options exercised (in millions) | $ | 11 | $ | 7 | $ | 8 | ||||||||||||||||
(2) Represents the amount by which the stock price exceeded the exercise price of the options on the date of the exercise | ||||||||||||||||||||||
The total fair value of options vested was $10 million, $10 million and $9 million during the years ended September 30, 2013, 2012 and 2011, respectively. Total unrecognized compensation expense for options that have not vested as of September 30, 2013 is $8 million and will be recognized over a weighted average period of 0.9 years. | ||||||||||||||||||||||
Stock Option Fair Value Information | ||||||||||||||||||||||
The Company's determination of the fair value of option awards on the date of grant using an option-pricing model is affected by the Company's stock price as well as assumptions regarding a number of subjective variables. These assumptions include, but are not limited to: the Company's expected stock price volatility, the projected employee stock option exercise term, the expected dividend yield and the risk-free interest rate. Changes in these assumptions can materially affect the estimated value of the stock options. | ||||||||||||||||||||||
The fair value of each option granted by the Company was estimated using a binomial lattice pricing model and the following weighted average assumptions: | ||||||||||||||||||||||
2013 Grants | 2012 Grants | 2011 Grants | ||||||||||||||||||||
Risk-free interest rate | 0.3% - 2.9% | 0.3% - 2.2% | 0.3% - 3.9% | |||||||||||||||||||
Expected dividend yield | 2 | % | 1.6 | % | 1.7 | % | ||||||||||||||||
Expected volatility | 27 | % | 27 | % | 27 | % | ||||||||||||||||
Expected life | 8 years | 8 years | 8 years | |||||||||||||||||||
The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding. The binomial lattice model assumes that employees' exercise behavior is a function of the option's remaining expected life and the extent to which the option is in-the-money. The binomial lattice model estimates the probability of exercise as a function of these two variables based on the entire history of exercises and forfeitures on all past option grants made by the Company. | ||||||||||||||||||||||
Performance Shares, Restricted Stock and Restricted Stock Units Information | ||||||||||||||||||||||
The following summarizes the Company's performance shares, restricted stock and restricted stock units for 2013: | ||||||||||||||||||||||
Performance | Restricted | Restricted | ||||||||||||||||||||
Shares | Stock | Stock Units | ||||||||||||||||||||
(shares in thousands) | Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Grant Date Fair Value | Grant Date Fair Value | Grant Date Fair Value | ||||||||||||||||||||
Nonvested at September 30, 2012 | 551 | $ | 54.74 | 56 | $ | 52.62 | 261 | $ | 54.59 | |||||||||||||
Granted | 222 | 55.69 | — | — | 88 | 56.04 | ||||||||||||||||
Vested | (177 | ) | 53.19 | (52 | ) | 52.95 | (30 | ) | 53.99 | |||||||||||||
Forfeited | (58 | ) | 54.69 | — | — | (6 | ) | 55.25 | ||||||||||||||
Nonvested at September 30, 2013 | 538 | $ | 55.65 | 4 | $ | 47.87 | 313 | $ | 55.04 | |||||||||||||
(in millions) | Performance Shares | Restricted Stock | Restricted Stock Units | |||||||||||||||||||
Total unrecognized compensation costs at September 30, 2013 | $ | 8 | $ | — | $ | 4 | ||||||||||||||||
Weighted-average life remaining at September 30, 2013, in years | 1 | 0 | 1.2 | |||||||||||||||||||
Weighted-average fair value per share granted in 2012 | $ | 59.08 | $ | — | $ | 55.41 | ||||||||||||||||
Weighted-average fair value per share granted in 2011 | $ | 55.91 | $ | — | $ | 57.82 | ||||||||||||||||
The maximum number of shares of common stock that can be issued in respect of performance shares granted in 2013 based on the achievement of performance targets for fiscal years 2013 through 2015 is approximately 451,000. The maximum number of shares of common stock that can be issued in respect of performance shares granted in 2012 based on the achievement of performance targets for fiscal years 2012 through 2014 is approximately 408,000. The number of shares of common stock that will be issued in respect of performance shares granted in 2011 based on the achievement of performance targets for fiscal years 2011 through 2013 is approximately 141,000. | ||||||||||||||||||||||
Earnings Per Share and Diluted Share Equivalents | ||||||||||||||||||||||
The computation of basic and diluted earnings per share is as follows: | ||||||||||||||||||||||
(in millions, except per share amounts) | 2013 | 2012 | 2011 | |||||||||||||||||||
Numerator for basic and diluted earnings per share: | ||||||||||||||||||||||
Income from continuing operations | $ | 632 | $ | 609 | $ | 615 | ||||||||||||||||
Income from discontinued operations, net of taxes | — | — | 19 | |||||||||||||||||||
Net income | $ | 632 | $ | 609 | $ | 634 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||
Denominator for basic earnings per share – weighted average common shares | 136.5 | 145.3 | 154.2 | |||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Stock options | 1.2 | 1.1 | 1.4 | |||||||||||||||||||
Performance shares, restricted stock and restricted stock units | 0.4 | 0.4 | 0.5 | |||||||||||||||||||
Dilutive potential common shares | 1.6 | 1.5 | 1.9 | |||||||||||||||||||
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversion | 138.1 | 146.8 | 156.1 | |||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||
Basic | ||||||||||||||||||||||
Continuing operations | $ | 4.63 | $ | 4.19 | $ | 3.99 | ||||||||||||||||
Discontinued operations | — | — | 0.12 | |||||||||||||||||||
Basic earnings per share | $ | 4.63 | $ | 4.19 | $ | 4.11 | ||||||||||||||||
Diluted | ||||||||||||||||||||||
Continuing operations | $ | 4.58 | $ | 4.15 | $ | 3.94 | ||||||||||||||||
Discontinued operations | — | — | 0.12 | |||||||||||||||||||
Diluted earnings per share | $ | 4.58 | $ | 4.15 | $ | 4.06 | ||||||||||||||||
The average outstanding diluted shares calculation excludes options with an exercise price that exceeds the average market price of shares during the period. Stock options excluded from the average outstanding diluted shares calculation were 0.4 million, 2.2 million and 0.3 million in 2013, 2012 and 2011, respectively. |
CompanyFunded_Research_and_Dev
Company-Funded Research and Development | 12 Months Ended |
Sep. 30, 2013 | |
Research and Development Expense [Abstract] | ' |
Company-Funded Research and Development | ' |
Company-Funded Research and Development | |
The Company performs R&D activities relating to the development of new products and the improvement of existing products. Company-funded R&D programs are expensed as incurred and included in cost of sales. Company-funded R&D expenditures were $295 million, $320 million and $355 million at September 30, 2013, 2012 and 2011, respectively. |
Other_Income_Net
Other Income, Net | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Nonoperating Income (Expense) [Abstract] | ' | ||||||||||||
Other Income, Net | ' | ||||||||||||
Other Income, Net | |||||||||||||
Other income, net consists of the following: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Earnings from equity affiliates | $ | (13 | ) | $ | (11 | ) | $ | (13 | ) | ||||
Gain on sale of property | — | (5 | ) | — | |||||||||
Interest income | (2 | ) | (3 | ) | (5 | ) | |||||||
Royalty income | (3 | ) | (4 | ) | (2 | ) | |||||||
Other | 2 | (2 | ) | (8 | ) | ||||||||
Other income, net | $ | (16 | ) | $ | (25 | ) | $ | (28 | ) |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The components of income tax expense from continuing operations are as follows: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Current: | |||||||||||||
U.S. federal | $ | 154 | $ | 118 | $ | 128 | |||||||
Non-U.S. | 18 | 22 | 16 | ||||||||||
U.S. state and local | 11 | 3 | 3 | ||||||||||
Total current | 183 | 143 | 147 | ||||||||||
Deferred: | |||||||||||||
U.S. federal | 51 | 103 | 83 | ||||||||||
Non-U.S. | (3 | ) | (8 | ) | — | ||||||||
U.S. state and local | 5 | 10 | 10 | ||||||||||
Total deferred | 53 | 105 | 93 | ||||||||||
Income tax expense | $ | 236 | $ | 248 | $ | 240 | |||||||
Net current deferred income tax benefits (liabilities) consist of the tax effects of temporary differences related to the following: | |||||||||||||
September 30 | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Inventory | $ | (129 | ) | $ | (95 | ) | |||||||
Product warranty costs | 36 | 38 | |||||||||||
Customer incentives | 50 | 51 | |||||||||||
Contract reserves | 8 | 11 | |||||||||||
Compensation and benefits | 31 | 33 | |||||||||||
Valuation allowance | (1 | ) | (1 | ) | |||||||||
Other | 22 | 18 | |||||||||||
Current deferred income taxes, net | $ | 17 | $ | 55 | |||||||||
Net long-term deferred income tax benefits (liabilities) consist of the tax effects of temporary differences related to the following: | |||||||||||||
September 30 | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Retirement benefits | $ | 344 | $ | 554 | |||||||||
Intangibles | (33 | ) | (42 | ) | |||||||||
Property | (115 | ) | (121 | ) | |||||||||
Stock-based compensation | 28 | 30 | |||||||||||
Valuation allowance | (10 | ) | (18 | ) | |||||||||
Other | 29 | 51 | |||||||||||
Long-term deferred income taxes, net | $ | 243 | $ | 454 | |||||||||
Current deferred income tax assets and liabilities and long-term deferred income tax assets and liabilities are included in the Consolidated Statement of Financial Position as follows: | |||||||||||||
September 30 | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Current deferred income taxes | $ | 19 | $ | 58 | |||||||||
Other current liabilities | (2 | ) | (3 | ) | |||||||||
Current deferred income taxes, net | $ | 17 | $ | 55 | |||||||||
Long-term deferred income taxes | $ | 245 | $ | 455 | |||||||||
Other liabilities | (2 | ) | (1 | ) | |||||||||
Long-term deferred income taxes, net | $ | 243 | $ | 454 | |||||||||
Management believes it is more likely than not that the current and long-term deferred tax assets will be realized through the reduction of future taxable income, except for $11 million of deferred tax assets which have been fully reserved and primarily relate to foreign net operating losses in Sweden. Significant factors considered by management in its determination of the probability of the realization of the deferred tax assets include: (a)Â the historical operating results of the Company ($1,466 million of U.S. taxable income over the past three years), (b)Â expectations of future earnings and (c)Â the extended period of time over which the retirement benefit liabilities will be paid. | |||||||||||||
The effective income tax rate from continuing operations differed from the U.S. statutory tax rate as detailed below: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory tax rate | 35 | Â % | 35 | Â % | 35 | Â % | |||||||
State and local income taxes | 1.3 | 1.3 | 1.1 | ||||||||||
Research and development credit | (5.1 | ) | (1.7 | ) | (4.7 | ) | |||||||
Domestic manufacturing deduction | (2.0 | ) | (2.1 | ) | (1.9 | ) | |||||||
Tax settlements | (0.1 | ) | (2.2 | ) | (0.4 | ) | |||||||
Other | (1.9 | ) | (1.4 | ) | (1.0 | ) | |||||||
Effective income tax rate | 27.2 | Â % | 28.9 | Â % | 28.1 | Â % | |||||||
Income tax expense from continuing operations was calculated based on the following components of income before income taxes: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
U.S. income | $ | 762 | $ | 793 | $ | 778 | |||||||
Non-U.S. income | 106 | 64 | 77 | ||||||||||
Total | $ | 868 | $ | 857 | $ | 855 | |||||||
The Company's U.S. Federal income tax returns for the tax year ended September 30, 2009 and prior years have been audited by the IRS and are closed to further adjustments by the IRS. The IRS is currently auditing the Company's tax returns for the years ended September 30, 2010 and 2011. The Company is also currently under audit in various U.S. states and non-U.S. jurisdictions. The U.S. state and non-U.S. jurisdictions have statutes of limitations generally ranging from 3 to 5 years. The Company believes it has adequately provided for any tax adjustments that may result from the various audits. | |||||||||||||
No provision has been made as of September 30, 2013 for U.S. federal or state, or additional non-U.S. income taxes related to approximately $427 million of undistributed earnings of non-U.S. subsidiaries which have been or are intended to be permanently reinvested. Thus, it is not practicable to estimate the amount of tax that might be payable on the undistributed earnings. | |||||||||||||
The Company had net income tax payments of $106 million, $208 million and $96 million in 2013, 2012 and 2011, respectively. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended September 30 is as follows: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 42 | $ | 100 | $ | 78 | |||||||
Additions for tax positions related to the current year | 15 | 11 | 22 | ||||||||||
Additions for tax positions of prior years | 3 | — | 6 | ||||||||||
Reductions for tax positions of prior years | (1 | ) | (54 | ) | (4 | ) | |||||||
Reductions for tax positions of prior years related to lapse of statute of limitations | (2 | ) | (2 | ) | (1 | ) | |||||||
Reductions for tax positions related to settlements with taxing authorities | (1 | ) | (13 | ) | (1 | ) | |||||||
Ending balance | $ | 56 | $ | 42 | $ | 100 | |||||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective income tax rate were $34 million, $24 million and $57 million as of September 30, 2013, 2012 and 2011, respectively. Although the timing and outcome of tax settlements are uncertain, it is reasonably possible that during the next 12 months a reduction in unrecognized tax benefits may occur in the range of $0 to $24 million based on the outcome of tax examinations or as a result of the expiration of various statutes of limitations. | |||||||||||||
The Company includes interest and penalties related to unrecognized tax benefits in income tax expense. The total amount of interest and penalties recognized within Other Liabilities in the Consolidated Statement of Financial Position was $2 million and $2 million as of September 30, 2013 and 2012, respectively. The total amount of interest and penalties recorded as an expense or (income) within Income tax expense in the Consolidated Statement of Operations was $0, $(4) million and $1 million for the years ended September 30, 2013, 2012 and 2011, respectively. | |||||||||||||
The Company's current income tax liability was $47 million and $5 million as of September 30, 2013 and 2012, respectively, and was recorded within Other current liabilities in the Consolidated Statement of Financial Position. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The FASB defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The FASB’s guidance classifies the inputs used to measure fair value into the following hierarchy: | ||||||||||||||||
Level 1 - | quoted prices (unadjusted) in active markets for identical assets or liabilities | |||||||||||||||
Level 2 - | quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument | |||||||||||||||
Level 3 - | unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value | |||||||||||||||
A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | ||||||||||||||||
The fair value of the Company's financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and September 30, 2012 are as follows: | ||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
(in millions) | Fair Value | Fair Value | Fair Value | |||||||||||||
Hierarchy | Asset (Liability) | Asset (Liability) | ||||||||||||||
Deferred compensation plan investments | Level 1 | $ | 49 | $ | 42 | |||||||||||
Interest rate swap assets | Level 2 | 16 | 31 | |||||||||||||
Forward starting interest rate swap liabilities | Level 2 | (5 | ) | — | ||||||||||||
Foreign currency forward exchange contract assets | Level 2 | 6 | 7 | |||||||||||||
Foreign currency forward exchange contract liabilities | Level 2 | (6 | ) | (5 | ) | |||||||||||
There were no nonfinancial assets or nonfinancial liabilities recognized at fair value on a nonrecurring basis and there were no transfers between Levels of the fair value hierarchy during 2013 or 2012. | ||||||||||||||||
Valuation Techniques | ||||||||||||||||
The deferred compensation plan investments consist of investments in marketable securities (primarily mutual funds) and the fair value is determined using the market approach based on quoted market prices of identical assets in active markets. | ||||||||||||||||
The fair value of the interest rate swaps and forward starting interest rate swaps is determined using the market approach and is calculated by a pricing model with observable market inputs. | ||||||||||||||||
The fair value of foreign currency forward exchange contracts is determined using the market approach and is calculated as the value of the quoted forward currency exchange rate less the contract rate multiplied by the notional amount. | ||||||||||||||||
As of September 30, 2013, there has not been any impact to the fair value of derivative liabilities due to the Company's own credit risk. Similarly, there has not been any impact to the fair value of derivative assets based on the Company's evaluation of counterparties' credit risks. | ||||||||||||||||
The carrying amounts and fair values of the Company's financial instruments are as follows: | ||||||||||||||||
Asset (Liability) | ||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
(in millions) | Carrying | Fair | Carrying | Fair | ||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Cash and cash equivalents | $ | 391 | $ | 391 | $ | 335 | $ | 335 | ||||||||
Short-term debt: | ||||||||||||||||
2013 Notes | (200 | ) | (201 | ) | — | — | ||||||||||
Commercial paper borrowings | (235 | ) | (235 | ) | — | — | ||||||||||
Long-term debt | (548 | ) | (586 | ) | (748 | ) | (837 | ) | ||||||||
The fair value of cash and cash equivalents and the commercial paper portion of the short-term debt approximates their carrying value due to the short-term nature of the instruments. These items are within Level 1 of the fair value hierarchy. Fair value information for the 2013 Notes classified as short-term debt and all long-term debt is within Level 2 of the fair value hierarchy and is based on current market interest rates and estimates of current market conditions for instruments with similar terms, maturities and degree of risk. The carrying amount and fair value of short-term and long-term debt excludes the interest rate swaps fair value adjustment. These fair value estimates do not necessarily reflect the amounts the Company would realize in a current market exchange. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Derivative Financial Instruments | ' | |||||||||
Derivative Financial Instruments | ||||||||||
Interest Rate Swaps | ||||||||||
The Company manages its exposure to interest rate risk by maintaining an appropriate mix of fixed and variable rate debt, which over time should moderate the costs of debt financing. When considered necessary, the Company may use financial instruments in the form of interest rate swaps to help meet this objective. In January 2010, the Company entered into two interest rate swap contracts (the 2019 Swaps) which expire on July 15, 2019 and effectively converted $150 million of the 2019 Notes to floating rate debt based on six-month LIBOR plus 1.235 percent. On November 20, 2003, the Company entered into two interest rate swap contracts (the 2013 Swaps) which expire on December 1, 2013 and effectively converted $100 million of the 2013 Notes to floating rate debt based on six-month LIBOR less 0.075 percent. | ||||||||||
The Company has designated the 2013 Swaps and 2019 Swaps (the Swaps) as fair value hedges. The 2013 Swaps mature within one year and therefore are recorded within Other current assets at a fair value of $1 million offset by a fair value adjustment to Short-term debt (Note 10) of $1 million at September 30, 2013. The 2019 Swaps are recorded within Other Assets at a fair value of $15 million, offset by a fair value adjustment to Long-term Debt (Note 10) of $15 million at September 30, 2013. At September 30, 2012, the Swaps were classified as long-term and were recorded within Other Assets at a fair value of $31 million, offset by a fair value adjustment to Long-term Debt (Note 10) of $31 million. Cash payments or receipts between the Company and the counterparties to the Swaps are recorded as an adjustment to interest expense. | ||||||||||
Forward Starting Interest Rate Swaps | ||||||||||
In September 2013, the Company entered into forward starting interest rate swap agreements with combined notional values of $200 million to effectively lock in fixed interest rates on a portion of the long-term debt it anticipates incurring to refinance maturing debt and to fund the pending acquisition of ARINC. The forward starting interest rate swaps hedge the risk of potentially higher benchmark U.S. Treasury bond yields on long-term debt with maturities ranging from 2023 to 2043 and fixed interest rates ranging between 3.0375% and 3.8775%. The forward starting interest rate swaps have been designated as cash flow hedges. At September 30, 2013, these swaps have been recorded within Other current liabilities at a fair value of $5 million. In October 2013, subsequent to our 2013 fiscal year end, the Company entered into an additional $300 million notional value of forward starting interest rate swap agreements. These forward starting interest rate swaps hedge the risk of potentially higher benchmark U.S. Treasury bond yields on long-term debt with maturities ranging from 2023 to 2043 and fixed interest rates ranging between 2.8150% and 3.7010%. These forward starting interest rate swaps have also been designated as cash flow hedges. | ||||||||||
Foreign Currency Forward Exchange Contracts | ||||||||||
The Company transacts business in various foreign currencies which subjects the Company’s cash flows and earnings to exposure related to changes in foreign currency exchange rates. These exposures arise primarily from purchases or sales of products and services from third parties and intercompany transactions. Foreign currency forward exchange contracts provide for the purchase or sale of foreign currencies at specified future dates at specified exchange rates and are used to offset changes in the fair value of certain assets or liabilities or forecasted cash flows resulting from transactions denominated in foreign currencies. As of September 30, 2013 and September 30, 2012, the Company had outstanding foreign currency forward exchange contracts with notional amounts of $482 million and $393 million, respectively. These notional values consist primarily of contracts for the European euro, British pound sterling and Japanese yen, and are stated in U.S. dollar equivalents at spot exchange rates at the respective dates. | ||||||||||
Fair Value of Derivative Instruments | ||||||||||
Fair values of derivative instruments in the Consolidated Statement of Financial Position as of September 30, 2013 and September 30, 2012 are as follows: | ||||||||||
Asset Derivatives | ||||||||||
(in millions) | Classification | September 30, | September 30, | |||||||
2013 | 2012 | |||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 6 | $ | 7 | |||||
Interest rate swaps | Other assets | 15 | 31 | |||||||
Interest rate swaps | Other current assets | 1 | — | |||||||
Total | $ | 22 | $ | 38 | ||||||
Liability Derivatives | ||||||||||
(in millions) | Classification | September 30, | September 30, | |||||||
2013 | 2012 | |||||||||
Foreign currency forward exchange contracts | Other current liabilities | $ | 6 | $ | 5 | |||||
Forward starting interest rate swaps | Other current liabilities | 5 | — | |||||||
Total | $ | 11 | $ | 5 | ||||||
The fair values of derivative instruments are presented on a gross basis as the Company does not have any derivative contracts which are subject to master netting arrangements. As of September 30, 2013 and September 30, 2012, there were no undesignated foreign currency forward exchange contracts classified within other current assets or other current liabilities. | ||||||||||
The effect of derivative instruments on the Consolidated Statement of Operations for the fiscal years ended September 30 is as follows: | ||||||||||
Amount of Gain (Loss) | ||||||||||
(in millions) | Location of Gain (Loss) | September 30, | September 30, | |||||||
2013 | 2012 | |||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||
Fair Value Hedges | ||||||||||
Foreign currency forward exchange contracts | Cost of sales | $ | 2 | $ | (3 | ) | ||||
Interest rate swaps | Interest expense | 10 | 9 | |||||||
Cash Flow Hedges | ||||||||||
Foreign currency forward exchange contracts: | ||||||||||
Amount of gain (loss) recognized in AOCL (effective portion, before deferred tax impact) | AOCL | $ | (5 | ) | $ | 2 | ||||
Amount of gain (loss) reclassified from AOCL into income | Cost of sales | — | (1 | ) | ||||||
Forward starting interest rate swaps: | ||||||||||
Amount of gain (loss) recognized in AOCL (effective portion, before deferred tax impact) | AOCL | (5 | ) | — | ||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||
Foreign currency forward exchange contracts | Cost of sales | — | 1 | |||||||
There was no significant impact to the Company’s earnings related to the ineffective portion of any hedging instruments during the fiscal year ended September 30, 2013. In addition, there was no significant impact to the Company’s earnings when a hedged firm commitment no longer qualified as a fair value hedge or when a hedged forecasted transaction no longer qualified as a cash flow hedge during the fiscal year ended September 30, 2013. | ||||||||||
The Company did not have any hedges with credit-risk-related contingent features or that required the posting of collateral as of September 30, 2013. The cash flows from derivative contracts are recorded in operating activities in the Consolidated Statement of Cash Flows. | ||||||||||
Cash flow hedges are designated as fair value hedges once the underlying transaction is recorded on the balance sheet, or approximately 60 days from the maturity date of the hedge. The Company expects to reclassify approximately $0 into earnings over the next 12 months. The maximum duration of a foreign currency cash flow hedge contract at September 30, 2013 was 82 months. |
Guarantees_and_Indemnification
Guarantees and Indemnifications | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Guarantees and Indemnifications Abstract | ' | |||||||||||
Guarantees and Indemnifications | ' | |||||||||||
Guarantees and Indemnifications | ||||||||||||
Product warranty costs | ||||||||||||
Accrued liabilities are recorded to reflect the Company’s contractual obligations relating to warranty commitments to customers. Warranty coverage of various lengths and terms is provided to customers depending on standard offerings and negotiated contractual agreements. An estimate for warranty expense is recorded at the time of sale based on the length of the warranty and historical warranty return rates and repair costs. | ||||||||||||
Changes in the carrying amount of accrued product warranty costs are summarized as follows: | ||||||||||||
September 30 | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Balance at beginning of year | $ | 126 | $ | 148 | $ | 183 | ||||||
Warranty costs incurred | (46 | ) | (47 | ) | (52 | ) | ||||||
Product warranty accrual | 48 | 46 | 34 | |||||||||
Changes in estimates for prior years | (7 | ) | (21 | ) | (20 | ) | ||||||
Foreign currency translation adjustments | — | — | 3 | |||||||||
Balance at September 30 | $ | 121 | $ | 126 | $ | 148 | ||||||
Guarantees | ||||||||||||
The Company provides a parent company guarantee related to various obligations of its 50 percent owned joint venture, Quest Flight Training Limited (Quest). The Company has guaranteed, jointly and severally with Quadrant Group plc (Quadrant), the other joint venture partner, the performance of Quest in relation to its contract with the United Kingdom Ministry of Defence (which expires in 2030) and the performance of certain Quest subcontractors (up to $2 million). In addition, the Company has also pledged equity shares in Quest to guarantee payment by Quest of a loan agreement executed by Quest. In the event of default on this loan agreement, the lending institution can request that the trustee holding such equity shares surrender them to the lending institution in order to satisfy all amounts then outstanding under the loan agreement. As of September 30, 2013, the outstanding loan balance was approximately $4 million. Quadrant has made an identical pledge to guarantee this obligation of Quest. | ||||||||||||
Should Quest fail to meet its obligations under these agreements, these guarantees may become a liability of the Company. As of September 30, 2013, the Quest guarantees are not reflected on the Company’s Consolidated Statement of Financial Position because the Company believes that Quest will meet all of its performance and financial obligations in relation to its contract with the United Kingdom Ministry of Defence and the loan agreement. | ||||||||||||
Letters of credit | ||||||||||||
The Company has contingent commitments in the form of letters of credit. Outstanding letters of credit are issued by banks on the Company’s behalf to support certain contractual obligations to its customers. If the Company fails to meet these contractual obligations, these letters of credit may become liabilities of the Company. Total outstanding letters of credit at September 30, 2013 were $90 million. These commitments are not reflected as liabilities on the Company’s Consolidated Statement of Financial Position. | ||||||||||||
Indemnifications | ||||||||||||
The Company enters into indemnifications with lenders, counterparties in transactions such as administration of employee benefit plans and other customary indemnifications with third parties in the normal course of business. The following are other than customary indemnifications based on the judgment of management. | ||||||||||||
The Company became an independent, publicly held company on June 29, 2001, when Rockwell International Corporation (Rockwell), renamed Rockwell Automation Inc., spun off its former avionics and communications business and certain other assets and liabilities of Rockwell by means of a distribution of all the Company’s outstanding shares of common stock to the shareowners of Rockwell in a tax-free spin-off (the spin-off). In connection with the spin-off, the Company may be required to indemnify certain insurers against claims made by third parties in connection with the Company’s legacy insurance policies. | ||||||||||||
In connection with agreements for the sale of portions of its business, the Company at times retains various liabilities of a business that relate to events occurring prior to its sale, such as tax, environmental, litigation and employment matters. The Company at times indemnifies the purchaser of a Rockwell Collins business in the event that a third party asserts a claim that relates to a liability retained by the Company. | ||||||||||||
The Company also provides indemnifications of varying scope and amounts to certain customers against claims of product liability or intellectual property infringement made by third parties arising from the use of Company or customer products or intellectual property. These indemnifications generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party product liability or intellectual property claims arising from these transactions. | ||||||||||||
The amount the Company could be required to pay under its indemnification agreements is generally limited based on amounts specified in the underlying agreements, or in the case of some agreements, the maximum potential amount of future payments that could be required is not limited. When a potential claim is asserted under these agreements, the Company considers such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. A liability is recorded when a potential claim is both probable and estimable. The nature of these agreements prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay should counterparties to these agreements assert a claim; however, the Company currently has no material claims pending related to such agreements. |
Contractual_Obligations_and_Ot
Contractual Obligations and Other Commitments | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Contractual Obligations and Other Commitments [Abstract] | ' | ||||||||||||||||||||||||||||
Contractual Obligations and Other Commitments | ' | ||||||||||||||||||||||||||||
Contractual Obligations and Other Commitments | |||||||||||||||||||||||||||||
The following table reflects certain of the Company's non-cancelable contractual commitments as of September 30, 2013: | |||||||||||||||||||||||||||||
Payments Due By Period | |||||||||||||||||||||||||||||
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Non-cancelable operating leases | $ | 64 | $ | 45 | $ | 24 | $ | 18 | $ | 14 | $ | 22 | $ | 187 | |||||||||||||||
Purchase contracts | 40 | 28 | 16 | 3 | 2 | 5 | 94 | ||||||||||||||||||||||
Long-term debt | — | — | — | — | — | 550 | 550 | ||||||||||||||||||||||
Interest on long-term debt | 24 | 23 | 24 | 23 | 23 | 43 | 160 | ||||||||||||||||||||||
Total | $ | 128 | $ | 96 | $ | 64 | $ | 44 | $ | 39 | $ | 620 | $ | 991 | |||||||||||||||
Non-cancelable Operating Leases | |||||||||||||||||||||||||||||
The Company leases certain office and manufacturing facilities as well as certain machinery and equipment under various lease contracts with terms that meet the accounting definition of operating leases. Some leases include renewal options, which permit extensions of the expiration dates at rates approximating fair market rental rates. Rent expense for the years ended September 30, 2013, 2012 and 2011 was $67 million, $72 million and $71 million, respectively. The Company's commitments under these operating leases, in the form of non-cancelable future lease payments, are not reflected as a liability on the Consolidated Statement of Financial Position. | |||||||||||||||||||||||||||||
Purchase Contracts | |||||||||||||||||||||||||||||
The Company may enter into purchase contracts with suppliers under which there is a commitment to buy a minimum amount of products or pay a specified amount. These commitments are not reflected as a liability on the Company's Consolidated Statement of Financial Position. Amounts purchased under these agreements for the years ended September 30, 2013, 2012 and 2011 were $45 million, $43 million and $42 million, respectively. | |||||||||||||||||||||||||||||
Interest on Long-term Debt | |||||||||||||||||||||||||||||
Interest payments under long-term debt obligations exclude the potential effects of the related interest rate swap contracts. |
Environmental_Matters
Environmental Matters | 12 Months Ended |
Sep. 30, 2013 | |
Environmental Remediation Obligations [Abstract] | ' |
Environmental Matters | ' |
Environmental Matters | |
The Company is subject to federal, state and local regulations relating to the discharge of substances into the environment, the disposal of hazardous wastes and other activities affecting the environment that have had and will continue to have an impact on the Company’s manufacturing operations. These environmental protection regulations may require the investigation and remediation of environmental impairments at current and previously owned or leased properties. In addition, lawsuits, claims and proceedings have been asserted on occasion against the Company alleging violations of environmental protection regulations, or seeking remediation of alleged environmental impairments, principally at previously owned or leased properties. As of September 30, 2013, the Company is involved in the investigation or remediation of ten sites under these regulations or pursuant to lawsuits asserted by third parties. Management estimates that the total reasonably possible future costs the Company could incur for nine of these sites is not significant. Management estimates that the total reasonably possible future costs the Company could incur from one of these sites to be approximately $12 million. The Company has recorded environmental reserves for this site of $6 million as of September 30, 2013, which represents management’s best estimate of the probable future cost for this site. | |
To date, compliance with environmental regulations and resolution of environmental claims has been accomplished without material effect on the Company’s liquidity and capital resources, competitive position or financial condition. Management believes that expenditures for environmental capital investment and remediation necessary to comply with present regulations governing environmental protection and other expenditures for the resolution of environmental claims will not have a material effect on the Company’s business or financial position. |
Legal_Matters
Legal Matters | 12 Months Ended |
Sep. 30, 2013 | |
Legal Matters Abstract | ' |
Legal Matters | ' |
Legal Matters | |
The Company is subject to various lawsuits, claims and proceedings that have been or may be instituted or asserted against the Company relating to the conduct of the Company's business, including those pertaining to product liability, antitrust, intellectual property, safety and health, exporting and importing, contract, employment and regulatory matters. Although the outcome of these matters cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to the Company, management believes there are no material pending legal proceedings. |
Restructuring_and_Asset_Impair
Restructuring and Asset Impairment Charges | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring Costs and Asset Impairment Charges [Abstract] | ' | |||||||||||||||
Restructuring and Asset Impairment Charges | ' | |||||||||||||||
Restructuring and Asset Impairment Charges, Net | ||||||||||||||||
In 2012, the Company recorded corporate restructuring and asset impairment charges, net totaling $58 million. This amount was comprised of (i) $40 million for employee severance and asset impairment charges, (ii) $23 million for customer bankruptcy charges and (iii) a $5 million gain related to the sale of a facility in Irvine, California. The 2012 restructuring and asset impairment charges, net were recorded as follows: | ||||||||||||||||
Cost of Sales | Selling, General and Administrative Expense | Other Income, Net | Total | |||||||||||||
Employee separation costs | $ | 33 | $ | 2 | $ | — | $ | 35 | ||||||||
Asset impairment charges | 5 | — | — | 5 | ||||||||||||
Total | 38 | 2 | — | 40 | ||||||||||||
Customer bankruptcy charges | — | 23 | — | 23 | ||||||||||||
Gain on disposition of property | — | — | (5 | ) | (5 | ) | ||||||||||
Total restructuring and asset impairment charges, net | $ | 38 | $ | 25 | $ | (5 | ) | $ | 58 | |||||||
The employee separation charges primarily resulted from decisions to realign the Company's European organizational structure to better position the business for long-term growth and to adjust the size of our workforce in response to the sequestration impacts on the U.S. defense budgets. During the twelve months ended September 30, 2013, the Company made cash severance payments of approximately $17 million related to the 2012 restructuring action. This is in addition to the $4 million of cash severance payments made during 2012. As of September 30, 2013, $14 million of employee separation costs related to the 2012 action remains to be paid in future periods. Included in the asset impairment charge was a $4 million write-off of a license agreement included within the Company's Commercial Systems segment after the Company concluded the carrying value of the license agreement was not recoverable. The customer bankruptcy charge was recorded as a result of the bankruptcy filings of certain commercial airline customers and a business jet manufacturer in 2012. | ||||||||||||||||
In September 2011, the Company recorded restructuring charges totaling $27 million. This amount was primarily comprised of non-cash asset impairment charges of $11 million, employee separation costs of $7 million, and $9 million of other costs, primarily attributable to a lease termination. The charges related to decisions to implement certain business realignment and facility rationalization actions in response to global economic factors that negatively impacted the Company's Government Systems segment. All of the remaining employee separation costs related to the 2011 restructuring action were paid during 2012. During the twelve months ended September 30, 2013, $2 million of contract and lease termination payments related to the 2011 restructuring action were paid. Approximately $1 million of contract and lease termination costs related to the 2011 action remains to be paid in future periods. |
Business_Segment_Information
Business Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Business Segment Information | ' | ||||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||||
Rockwell Collins designs, produces and supports communications and aviation electronics for military and commercial customers worldwide. The Company has two operating segments consisting of the Government Systems and Commercial Systems businesses. | |||||||||||||||||||||||||
Government Systems provides avionics, communication products, surface solutions and navigation products to the U.S. Department of Defense, other government agencies, civil agencies, defense contractors and foreign ministries of defense around the world. | |||||||||||||||||||||||||
Commercial Systems supplies aviation electronics systems, products, and services to customers located throughout the world. The customer base is comprised of OEMs of commercial air transport, business and regional aircraft, commercial airlines and business aircraft operators. | |||||||||||||||||||||||||
Sales made to the U.S. Government were 37 percent, 38 percent and 43 percent of total sales for the years ended September 30, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The Company evaluates performance and allocates resources based upon, among other considerations, segment operating earnings. The Company's definition of segment operating earnings excludes income taxes, stock-based compensation, unallocated general corporate expenses, interest expense, gains and losses from the disposition of businesses, restructuring and asset impairment charges and other special items as identified by management from time to time. Intersegment sales are not material and have been eliminated. The accounting policies used in preparing the segment information are consistent with the policies described in Note 2. | |||||||||||||||||||||||||
As discussed in Note 4, the Rollmet product line, formerly included within the Commercial Systems segment, has been accounted for as a discontinued operation for all periods presented. | |||||||||||||||||||||||||
The sales and earnings of continuing operations of the Company's operating segments are summarized as follows: | |||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||
Government Systems | $ | 2,395 | $ | 2,591 | $ | 2,813 | |||||||||||||||||||
Commercial Systems | 2,215 | 2,135 | 1,993 | ||||||||||||||||||||||
Total sales | $ | 4,610 | $ | 4,726 | $ | 4,806 | |||||||||||||||||||
Segment operating earnings: | |||||||||||||||||||||||||
Government Systems | $ | 499 | $ | 568 | $ | 592 | |||||||||||||||||||
Commercial Systems | 477 | 440 | 381 | ||||||||||||||||||||||
Total segment operating earnings | 976 | 1,008 | 973 | ||||||||||||||||||||||
Interest expense | (28 | ) | (27 | ) | (19 | ) | |||||||||||||||||||
Stock-based compensation | (20 | ) | (24 | ) | (24 | ) | |||||||||||||||||||
General corporate, net | (60 | ) | (42 | ) | (48 | ) | |||||||||||||||||||
Restructuring and asset impairment charges, net | — | (58 | ) | (27 | ) | ||||||||||||||||||||
Income from continuing operations before income taxes | 868 | 857 | 855 | ||||||||||||||||||||||
Income tax expense | (236 | ) | (248 | ) | (240 | ) | |||||||||||||||||||
Income from continuing operations | $ | 632 | $ | 609 | $ | 615 | |||||||||||||||||||
The following tables summarize the identifiable assets and investments in equity affiliates at September 30, 2013, 2012 and 2011, as well as the provision for depreciation and amortization, the amount of capital expenditures for property, and earnings from equity affiliates for each of the three years ended September 30, for each of the operating segments and Corporate: | |||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Identifiable assets: | |||||||||||||||||||||||||
Government Systems | $ | 2,174 | $ | 2,113 | $ | 2,139 | |||||||||||||||||||
Commercial Systems | 2,465 | 2,233 | 2,110 | ||||||||||||||||||||||
Corporate | 761 | 968 | 1,140 | ||||||||||||||||||||||
Total identifiable assets | $ | 5,400 | $ | 5,314 | $ | 5,389 | |||||||||||||||||||
Investments in equity affiliates: | |||||||||||||||||||||||||
Government Systems | $ | 22 | $ | 19 | $ | 11 | |||||||||||||||||||
Commercial Systems | — | — | — | ||||||||||||||||||||||
Total investments in equity affiliates | $ | 22 | $ | 19 | $ | 11 | |||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||||
Government Systems | $ | 84 | $ | 87 | $ | 76 | |||||||||||||||||||
Commercial Systems | 96 | 87 | 83 | ||||||||||||||||||||||
Total depreciation and amortization | $ | 180 | $ | 174 | $ | 159 | |||||||||||||||||||
Capital expenditures for property: | |||||||||||||||||||||||||
Government Systems | $ | 62 | $ | 76 | $ | 81 | |||||||||||||||||||
Commercial Systems | 58 | 62 | 71 | ||||||||||||||||||||||
Total capital expenditures for property | $ | 120 | $ | 138 | $ | 152 | |||||||||||||||||||
Earnings from equity affiliates: | |||||||||||||||||||||||||
Government Systems | $ | 13 | $ | 11 | $ | 13 | |||||||||||||||||||
Commercial Systems | — | — | — | ||||||||||||||||||||||
Total earnings from equity affiliates | $ | 13 | $ | 11 | $ | 13 | |||||||||||||||||||
The Company's operating segments share many common resources, infrastructures and assets in the normal course of business. Certain assets have been allocated between the operating segments primarily based on occupancy or usage, principally property, plant and equipment. Identifiable assets at Corporate consist principally of cash and net deferred income tax assets for all years presented. | |||||||||||||||||||||||||
The following table summarizes sales by product category for the years ended September 30, 2013, 2012 and 2011: | |||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Government Systems product categories: | |||||||||||||||||||||||||
Avionics | $ | 1,384 | $ | 1,476 | $ | 1,434 | |||||||||||||||||||
Communication products | 586 | 652 | 698 | ||||||||||||||||||||||
Surface solutions | 232 | 226 | 377 | ||||||||||||||||||||||
Navigation products | 193 | 237 | 304 | ||||||||||||||||||||||
Government Systems sales | 2,395 | 2,591 | 2,813 | ||||||||||||||||||||||
Commercial Systems product categories: | |||||||||||||||||||||||||
Air transport aviation electronics | 1,183 | 1,139 | 1,049 | ||||||||||||||||||||||
Business and regional aviation electronics | 1,032 | 996 | 944 | ||||||||||||||||||||||
Commercial Systems sales | 2,215 | 2,135 | 1,993 | ||||||||||||||||||||||
Total sales | $ | 4,610 | $ | 4,726 | $ | 4,806 | |||||||||||||||||||
Product category sales for Government Systems are delineated based upon differences in the underlying product technologies and markets served. | |||||||||||||||||||||||||
The air transport and business and regional aviation electronics product categories are delineated based on the difference in underlying customer base, size of aircraft and markets served. For the years ended September 30, 2013, 2012 and 2011, product category sales for air transport aviation electronics include revenue from wide-body in-flight entertainment products and services of $83 million, $91 million and $119 million, respectively. In 2005, the Company announced its decision to cease investing in the wide-body in-flight entertainment product area. | |||||||||||||||||||||||||
The following table reflects sales for the years ended September 30, 2013, 2012 and 2011 by location of our customers and property at September 30, 2013, 2012 and 2011 by geographic region: | |||||||||||||||||||||||||
Sales | Property | ||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
U.S.(1) | $ | 2,946 | $ | 3,169 | $ | 3,356 | $ | 679 | $ | 680 | $ | 658 | |||||||||||||
Europe | 787 | 816 | 848 | 75 | 72 | 77 | |||||||||||||||||||
Asia-Pacific | 371 | 326 | 267 | 14 | 15 | 12 | |||||||||||||||||||
Canada | 322 | 287 | 241 | 1 | 1 | 1 | |||||||||||||||||||
Africa / Middle East | 99 | 65 | 54 | — | — | — | |||||||||||||||||||
Latin America | 85 | 63 | 40 | 4 | 5 | 6 | |||||||||||||||||||
International | $ | 1,664 | $ | 1,557 | $ | 1,450 | $ | 94 | $ | 93 | $ | 96 | |||||||||||||
Total | $ | 4,610 | $ | 4,726 | $ | 4,806 | $ | 773 | $ | 773 | $ | 754 | |||||||||||||
(1) For the years ended September 30, 2013, 2012, and 2011, U.S. sales include revenue from foreign military sales of $184 million, $162 million, and $114 million, respectively. | |||||||||||||||||||||||||
Sales are attributable to geographic region based on the location of our customers. | |||||||||||||||||||||||||
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||||||
Quarterly Financial Information (Unaudited) | |||||||||||||||||||||
Quarterly financial information for the years ended September 30, 2013 and 2012 is summarized as follows: | |||||||||||||||||||||
2013 Quarters | |||||||||||||||||||||
(in millions, except per share amounts) | First | Second | Third | Fourth | Total | ||||||||||||||||
Sales | $ | 1,062 | $ | 1,131 | $ | 1,165 | $ | 1,252 | $ | 4,610 | |||||||||||
Gross profit (total sales less cost of sales) | 312 | 327 | 370 | 377 | 1,386 | ||||||||||||||||
Net income | $ | 132 | $ | 161 | $ | 164 | $ | 175 | $ | 632 | |||||||||||
Earnings per share: | |||||||||||||||||||||
Basic earnings per share | $ | 0.95 | $ | 1.18 | $ | 1.21 | $ | 1.3 | $ | 4.63 | |||||||||||
Diluted earnings per share | $ | 0.94 | $ | 1.17 | $ | 1.2 | $ | 1.28 | $ | 4.58 | |||||||||||
Net income in the second quarter of 2013 includes a $19 million income tax benefit from the retroactive reinstatement of the Federal R&D Tax Credit. | |||||||||||||||||||||
2012 Quarters | |||||||||||||||||||||
(in millions, except per share amounts) | First | Second | Third | Fourth | Total | ||||||||||||||||
Sales | $ | 1,094 | $ | 1,161 | $ | 1,205 | $ | 1,266 | $ | 4,726 | |||||||||||
Gross profit (total sales less cost of sales) | 320 | 351 | 359 | 372 | 1,402 | ||||||||||||||||
Net income | $ | 130 | $ | 161 | $ | 166 | $ | 152 | $ | 609 | |||||||||||
Earnings per share: | |||||||||||||||||||||
Basic earnings per share | $ | 0.87 | $ | 1.1 | $ | 1.16 | $ | 1.07 | $ | 4.19 | |||||||||||
Diluted earnings per share | $ | 0.86 | $ | 1.09 | $ | 1.14 | $ | 1.06 | $ | 4.15 | |||||||||||
Net income in the second quarter of 2012 includes a $19 million income tax benefit related to the favorable resolution of certain tax matters. | |||||||||||||||||||||
Net income in the fourth quarter of 2012 includes $23 million of restructuring and asset impairment charges ($34 million before income taxes) primarily related to employee separation costs. In addition, net income includes $14 million of customer bankruptcy charges ($23 million before income taxes) which was recorded in selling, general and administrative expenses. | |||||||||||||||||||||
Earnings per share amounts are computed independently each quarter. As a result, the sum of each quarter's per share amount may not equal the total per share amount for the respective year. | |||||||||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidation | ' |
Consolidation | |
The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. The Company has one consolidated subsidiary with income attributable to a noncontrolling interest. The net income and comprehensive income attributable to the noncontrolling interest is insignificant. The Company's investments in entities it does not control but over which it has the ability to exercise significant influence are accounted for under the equity method and are included in Other Assets. All intercompany transactions are eliminated. | |
Foreign Currency Translation and Transactions | ' |
Foreign Currency Translation and Transactions | |
The functional currency for significant subsidiaries operating outside the United States is typically their respective local currency. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than the U.S. dollar are translated into U.S. dollars using the exchange rate at the balance sheet date. Sales, costs and expenses are translated at the average exchange rates in effect during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss within the Consolidated Statements of Comprehensive Income and Equity. | |
Foreign exchange transaction gains and losses due to the remeasurement of account balances in foreign currencies are included within the Consolidated Statement of Operations and were not material to the Company's results of operations for 2013, 2012 and 2011. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company enters into sales arrangements that may provide for multiple deliverables to a customer. The Company identifies all goods and/or services that are to be delivered separately under a sales arrangement and allocates revenue to each deliverable based on relative fair values. Fair values are generally established based on the prices charged when sold separately by the Company. In general, revenues are separated between hardware, engineering services, maintenance services and installation services. The allocated revenue for each deliverable is then recognized using appropriate revenue recognition methods. | |
Sales related to long-term contracts requiring development and delivery of products over several years are accounted for under the percentage-of-completion method of accounting in accordance with the Construction-Type and Production-Type Contracts subtopic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification. The percentage-of-completion method is predominately used in the Government Systems segment and sales and earnings under qualifying contracts are recorded either as products are shipped under the units-of-delivery method (for production effort), or based on the ratio of actual costs incurred to total estimated costs expected to be incurred related to the contract under the cost-to-cost method (for development effort). Purchase options and change orders are accounted for either as an integral part of the original contract or separately depending upon the nature and value of the item. Sales and costs related to profitable purchase options are included in estimates only when the options are exercised whereas sales and costs related to unprofitable purchase options are included in estimates when exercise is determined to be probable. Sales related to change orders are included in estimates only if they can be reliably estimated and collectability is reasonably assured. Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable. Changes in estimates of profit or loss on contracts are included in earnings on a cumulative basis in the period the estimate is changed. | |
Sales related to long-term separately priced product maintenance or warranty contracts are accounted for based on the terms of the underlying agreements. Certain contracts are fixed-price contracts with sales recognized ratably over the contractual life, while other contracts have a fixed hourly rate with sales recognized based on actual labor or flight hours incurred. The cost of providing these services is expensed as incurred. | |
The Company recognizes sales for most other products or services when all of the following criteria are met: an agreement of sale exists, product delivery and acceptance has occurred or services have been rendered, pricing is fixed or determinable and collection is reasonably assured. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include time deposits, certificates of deposit with original maturity dates of three months or less and money market funds. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
Allowances are established in order to report receivables at net realizable value on the Company's Consolidated Statement of Financial Position. The determination of these allowances requires management of the Company to make estimates and judgments as to the collectability of customer account balances. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience and other currently available evidence. | |
Inventories | ' |
Inventories | |
Inventories are stated at the lower of cost or market using costs which approximate the first-in, first-out method, less related progress payments received. Inventoried costs include direct costs of manufacturing, certain engineering costs and allocable overhead costs. The Company regularly compares inventory quantities on hand on a part level basis to estimated forecasts of product demand and production requirements as well as historical usage. Based on these comparisons, management establishes an excess and obsolete inventory reserve as needed. Inventory valuation reserves were $90 million and $86 million at September 30, 2013 and 2012, respectively. | |
The Company defers certain pre-production engineering costs during the development phase of a program in connection with long-term supply arrangements that contain contractual guarantees for reimbursement from customers. Such customer guarantees generally take the form of a minimum order quantity with quantified reimbursement amounts if the minimum order quantity is not taken by the customer. These costs are deferred to the extent of the contractual guarantees and are amortized over their estimated useful lives using a units-of-delivery method, up to 15 years. This amortization expense is included as a component of cost of sales. Amortization is based on the Company’s expectation of delivery rates on a program-by-program basis and begins when the Company starts recognizing revenue as the Company delivers equipment for the program. The estimated useful life is limited to the amount of time the Company is virtually assured to earn revenues through a contractually enforceable right included in long-term supply arrangements with the Company’s customers. Pre-production engineering costs incurred pursuant to supply arrangements that do not contain customer guarantees for reimbursement are expensed as incurred. | |
Progress Payments | ' |
Progress Payments | |
Progress payments relate to both receivables and inventories and represent cash collected from government-related contracts whereby the governments have a legal right of offset related to the receivable or legal title to the work-in-process inventory. | |
Property | ' |
Property | |
Property is stated at acquisition cost, net of accumulated depreciation. Depreciation of property is generally provided using straight-line methods over the following estimated useful lives: buildings and improvements, 15-40Â years; machinery and equipment, 6-15Â years; information systems software and hardware, 5-10Â years; and furniture and fixtures, 12-15Â years. Depreciation methods and lives are reviewed periodically with any changes recorded on a prospective basis. | |
Significant renewals and betterments are capitalized and replaced units are written off. Maintenance and repairs, as well as renewals of minor amounts, are charged to expense in the period incurred. The fair value of liabilities associated with the retirement of property is recorded when there is a legal or contractual requirement to incur such costs and the costs can be reasonably estimated. Upon the initial recognition of a contractual or legal liability for an asset retirement obligation, the Company capitalizes the asset retirement cost by increasing the carrying amount of the property by the same amount as the liability. This asset retirement cost is then depreciated over the estimated useful life of the underlying property. The Company did not have any significant asset retirement obligations at September 30, 2013 and 2012. | |
Goodwill and Intangible Assets | ' |
Goodwill and Intangible Assets | |
Goodwill and intangible assets generally result from business acquisitions. The purchase price of the acquisition is assigned to tangible and intangible assets and liabilities assumed based on fair value. The excess of the purchase price over the amounts assigned is recorded as goodwill. Assets acquired and liabilities assumed are allocated to the Company's reporting units based on the Company's integration plans and internal reporting structure. As of September 30, 2013 the Company had four reporting units. Purchased intangible assets with finite lives are amortized over their estimated useful lives. Goodwill and intangible assets with indefinite lives are not amortized, but are reviewed at least annually for impairment. | |
Customer Incentives | ' |
Customer Relationship Up-Front Sales Incentives | |
The Company provides up-front sales incentives prior to delivering products or performing services to certain commercial customers in connection with sales contracts. Up-front sales incentives are recorded as a Customer relationship intangible asset and are amortized using a units-of-delivery method over the period the Company has received a contractually enforceable right related to the incentives, up to 15 years. Amortization is based on the Company’s expectation of delivery rates on a program-by-program basis. Amortization begins when the Company starts recognizing revenue as the Company delivers equipment for the program. Up-front sales incentives consisting of cash payments or customer account credits are amortized as a reduction of sales, whereas incentives consisting of free products are amortized as cost of sales. | |
Accrued Customer Incentives | |
Incentives earned by customers based on purchases of Company products or services are recognized as a liability when the related sale is recorded. Incentives consisting of cash payments or customer account credits are recognized as a reduction of sales, while incentives consisting of free products and account credits where the customer's use is restricted to future purchases are recognized as cost of sales. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
Long-lived assets are reviewed for impairment when management plans to dispose of assets or when events or circumstances indicate that the carrying amount of a long-lived asset is more-likely-than-not unrecoverable. Assets held for disposal are reported at the lower of the carrying amount or fair value less cost to sell. Management determines fair value using a discounted future cash flow analysis or other accepted valuation techniques. Long-lived assets held for use are reviewed for impairment by comparing the carrying amount of an asset to the undiscounted future cash flows expected to be generated by the asset over its remaining useful life. If an asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. See Note 23 for discussion of certain asset impairments recorded in 2012 and 2011. | |
Goodwill and indefinite-lived intangible assets are tested annually for impairment with more frequent tests performed if indications of impairment exist. The Company's annual impairment testing date is in the second quarter of each fiscal year. Impairment for intangible assets with indefinite lives exists if the carrying value of the intangible asset exceeds its fair value. Goodwill is potentially impaired if the carrying value of a reporting unit exceeds its estimated fair value. As of September 30, 2013, the Company had four reporting units. The Company's annual impairment testing performed in the second quarter of 2013, 2012 and 2011 yielded no impairments of goodwill or indefinite-lived intangible assets. | |
Advance Payments From Customers | ' |
Advance Payments from Customers | |
Advance payments from customers represent cash collected from customers in advance of revenue recognition. | |
Environmental | ' |
Environmental | |
Liabilities for environmental matters are recorded in the period in which it is probable that an obligation has been incurred and the cost can be reasonably estimated. At environmental sites in which more than one potentially responsible party has been identified, the Company records a liability for its estimated allocable share of costs related to its involvement with the site as well as an estimated allocable share of costs related to the involvement of insolvent or unidentified parties. At environmental sites in which the Company is the only responsible party, the Company records a liability for the total estimated costs of remediation. | |
Income Taxes | ' |
Income Taxes | |
Current tax liabilities and assets are based upon an estimate of taxes payable or refundable in the current year for each of the jurisdictions in which the Company is subject to tax. As part of the determination of its tax liability, management exercises considerable judgment in evaluating tax positions taken by the Company in determining the income tax provision and establishes reserves for uncertain tax positions in accordance with the Income Taxes topic of the FASB Accounting Standards Codification. Deferred tax assets and liabilities are recorded for the estimated future tax effects attributable to temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and their respective carrying amounts for income tax purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
Derivatives Financial Instruments | ' |
Derivative Financial Instruments | |
The Company uses derivative financial instruments in the form of foreign currency forward exchange contracts and interest rate swap contracts for the purpose of minimizing exposure to changes in foreign currency exchange rates on business transactions and interest rates, respectively. The Company's policy is to execute such instruments with banks the Company believes to be creditworthy and not enter into derivative financial instruments for speculative purposes or to manage exposure for net investments in non-U.S. subsidiaries. These derivative financial instruments do not subject the Company to undue risk as gains and losses on these instruments generally offset gains and losses on the underlying assets, liabilities or anticipated transactions that are being hedged. | |
All derivative financial instruments are recorded at fair value in the Consolidated Statement of Financial Position. For a derivative that has not been designated as an accounting hedge, the change in fair value is recognized immediately through earnings. For a derivative that has been designated as an accounting hedge of an existing asset or liability (a fair value hedge), the change in the fair value of both the derivative and underlying asset or liability is recognized immediately through earnings. For a derivative designated as an accounting hedge of an anticipated transaction (a cash flow hedge), the change in the fair value is recorded on the Consolidated Statement of Financial Position in Accumulated other comprehensive loss to the extent the derivative is effective in mitigating the exposure related to the anticipated transaction. The change in the fair value related to the ineffective portion of the hedge, if any, is immediately recognized in earnings. The amount recorded within Accumulated other comprehensive loss is reclassified into earnings in the same period during which the underlying hedged transaction affects earnings. The Company does not exclude any amounts from the measure of effectiveness for both fair value and cash flow hedges. | |
Use of Estimates | ' |
Use of Estimates | |
The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Estimates are used in accounting for, among other items, long-term contracts, allowances for doubtful accounts, inventory obsolescence, product warranty cost liabilities, customer incentives, retirement benefits, income taxes, environmental matters, pre-production engineering costs, recoverability of long-lived assets and contingencies. Estimates and assumptions are reviewed periodically and the effects of changes, if any, are reflected in the Consolidated Statement of Operations in the period they are determined. | |
Concentration of Risks | ' |
Concentration of Risks | |
The Company's products and services are concentrated within the aerospace and defense industries with customers consisting primarily of military and commercial aircraft manufacturers, commercial airlines and the U.S. Government and non-U.S. governments. As a result of this industry focus, the Company's current and future financial performance is largely dependent upon the overall economic conditions within these industries. In particular, the commercial aerospace market has been historically cyclical and subject to downturns during periods of weak economic conditions, which could be prompted by or exacerbated by political or other domestic or international events. The defense market may be affected by changes in budget appropriations, procurement policies, political developments both domestically and abroad and other factors. The Company depends to a large degree on U.S. Government spending, as a significant portion of the Company's sales are derived from U.S. Government contracts, both directly and indirectly through subcontracts. In August 2011, Congress enacted the Budget Control Act of 2011 which imposes spending caps and certain reductions in security spending over a ten-year period through 2021. These spending caps and reductions, referred to as sequestration, went into effect on March 3, 2013. While management believes the Company's product offerings are well positioned to meet the needs of its U.S. Government customers, the impact of sequestration could have a material adverse effect on the Company's results of operations, financial position or cash flows. | |
In addition to the overall business risks associated with the Company's concentration within the aerospace and defense industries, the Company is also exposed to a concentration of collection risk on credit extended to commercial airlines and business jet aircraft manufacturers. At September 30, 2013, accounts receivable due from U.S. and international commercial airlines were approximately $22 million and $35 million, respectively. At September 30, 2013, accounts receivable due from business jet aircraft manufacturers were approximately $142 million. The Company performs ongoing credit evaluations on the financial condition of all of its customers and maintains allowances for uncollectible accounts receivable based on expected collectability. Although management believes its allowances are adequate, the Company is not able to predict with certainty the changes in the financial stability of its customers. Any material change in the financial status of any one customer or group of customers could have a material adverse effect on the Company's results of operations, financial position or cash flows. | |
Recently Adopted and Issued Accounting Standards | ' |
Recently Adopted Accounting Standards | |
In September 2011, the FASB issued amended guidance on the impairment testing of goodwill and other intangible assets that provides companies with an option to make an initial qualitative evaluation to determine the likelihood of goodwill impairment. The Company adopted the guidance during the second quarter of 2013 with no impact to the Company's financial position, results of operations or cash flows as a result of this amendment. | |
In June 2011, the FASB amended requirements for the presentation of other comprehensive income (OCI), requiring presentation of comprehensive income in either a single, continuous statement of comprehensive income or on separate but consecutive statements, the statement of operations and the statement of OCI. The amendment became effective for the Company in the first quarter of 2013 and the Company has reported OCI as a separate but consecutive statement. There was no impact to the Company's financial position, results of operations or cash flows as a result of this amendment. | |
In May 2011, the FASB amended the guidance regarding fair value measurement and disclosure. The amended guidance clarifies the application of existing fair value measurement and disclosure requirements. The amendment became effective for the Company in the second quarter of 2012 with no significant impact to the Company's financial statements. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | ' | ||||||||||||||||
During the three years ended September 30, 2013, 2012, and 2011, the Company completed two acquisitions that are summarized as follows: | |||||||||||||||||
Intangible Assets | |||||||||||||||||
(dollars in millions) | Fiscal | Cash | Goodwill | Finite | Weighted | ||||||||||||
Year | Purchase | Lived | Average | ||||||||||||||
Acquired | Price(1) | Life in | |||||||||||||||
Years | |||||||||||||||||
Computing Technologies for Aviation, Inc. | 2011 | $ | 11 | $ | 10 | $ | 3 | 9 | |||||||||
Blue Ridge Simulation, Inc. | 2011 | 6 | 6 | 1 | 9 | ||||||||||||
(1) Net of cash acquired |
Divestitures_Tables
Divestitures (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Schedule of Discontinued Operations | ' | ||||||||||||
Results of the discontinued Rollmet operation are as follows: | |||||||||||||
Year Ended September 30 | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Sales | $ | — | $ | — | $ | 19 | |||||||
Income from discontinued operations before income taxes | — | — | 4 | ||||||||||
Receivables_Net_Tables
Receivables, Net (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts Receivable | ' | |||||||
Receivables, net are summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Billed | $ | 823 | $ | 810 | ||||
Unbilled | 432 | 366 | ||||||
Less progress payments | (188 | ) | (169 | ) | ||||
Total | 1,067 | 1,007 | ||||||
Less allowance for doubtful accounts | (9 | ) | (36 | ) | ||||
Receivables, net | $ | 1,058 | $ | 971 | ||||
Inventories_Net_Tables
Inventories, Net (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Inventories | ' | |||||||||||||||||||||||
Inventories, net are summarized as follows: | ||||||||||||||||||||||||
(in millions) | September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Finished goods | $ | 181 | $ | 168 | ||||||||||||||||||||
Work in process | 273 | 254 | ||||||||||||||||||||||
Raw materials, parts and supplies | 358 | 343 | ||||||||||||||||||||||
Less progress payments | (8 | ) | (2 | ) | ||||||||||||||||||||
Total | 804 | 763 | ||||||||||||||||||||||
Pre-production engineering costs | 714 | 569 | ||||||||||||||||||||||
Inventories, net | $ | 1,518 | $ | 1,332 | ||||||||||||||||||||
Schedule of Pre-Production Engineering Expected Amortization | ' | |||||||||||||||||||||||
Anticipated annual amortization expense for pre-production engineering costs is as follows: | ||||||||||||||||||||||||
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||
Anticipated amortization expense for pre-production engineering costs | $ | 39 | $ | 53 | $ | 73 | $ | 84 | $ | 92 | $ | 373 | ||||||||||||
Property_Tables
Property (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ' | |||||||
Property | ' | |||||||
Property is summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Land | $ | 10 | $ | 10 | ||||
Buildings and improvements | 388 | 383 | ||||||
Machinery and equipment | 1,066 | 1,045 | ||||||
Information systems software and hardware | 344 | 326 | ||||||
Furniture and fixtures | 65 | 66 | ||||||
Construction in progress | 101 | 88 | ||||||
Total | 1,974 | 1,918 | ||||||
Less accumulated depreciation | (1,201 | ) | (1,145 | ) | ||||
Property | $ | 773 | $ | 773 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||||||||||
Changes in the carrying amount of goodwill are summarized as follows: | ||||||||||||||||||||||||
(in millions) | Government | Commercial | Total | |||||||||||||||||||||
Systems | Systems | |||||||||||||||||||||||
Balance at September 30, 2011 | $ | 514 | $ | 266 | $ | 780 | ||||||||||||||||||
Foreign currency translation adjustments | — | — | — | |||||||||||||||||||||
Balance at September 30, 2012 | 514 | 266 | 780 | |||||||||||||||||||||
Reclassification of KOSI goodwill to assets held-for-sale | (3 | ) | — | (3 | ) | |||||||||||||||||||
Foreign currency translation adjustments | 2 | — | 2 | |||||||||||||||||||||
Balance at September 30, 2013 | $ | 513 | $ | 266 | $ | 779 | ||||||||||||||||||
Summary of Intangible Assets | ' | |||||||||||||||||||||||
Intangible assets are summarized as follows: | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
(in millions) | Gross | Accum | Net | Gross | Accum | Net | ||||||||||||||||||
Amort | Amort | |||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Developed technology and patents | $ | 222 | $ | (175 | ) | $ | 47 | $ | 221 | $ | (159 | ) | $ | 62 | ||||||||||
Customer relationships: | ||||||||||||||||||||||||
Acquired | 89 | (60 | ) | 29 | 91 | (57 | ) | 34 | ||||||||||||||||
Up-front sales incentives | 241 | (35 | ) | 206 | 212 | (26 | ) | 186 | ||||||||||||||||
License agreements | 13 | (8 | ) | 5 | 13 | (8 | ) | 5 | ||||||||||||||||
Trademarks and tradenames | 15 | (14 | ) | 1 | 15 | (13 | ) | 2 | ||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||
Trademarks and tradenames | — | — | — | 2 | — | 2 | ||||||||||||||||||
Intangible assets | $ | 580 | $ | (292 | ) | $ | 288 | $ | 554 | $ | (263 | ) | $ | 291 | ||||||||||
Schedule of Intangible Asset Expected Amortization Expense | ' | |||||||||||||||||||||||
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||
Anticipated amortization expense for up-front sales incentives | $ | 11 | $ | 17 | $ | 21 | $ | 23 | $ | 25 | $ | 109 | ||||||||||||
Anticipated amortization expense for all other intangible assets | 19 | 16 | 12 | 12 | 5 | 18 | ||||||||||||||||||
Total | $ | 30 | $ | 33 | $ | 33 | $ | 35 | $ | 30 | $ | 127 | ||||||||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Assets [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other assets are summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Long-term receivables | $ | 32 | $ | 34 | ||||
Investments in equity affiliates | 22 | 19 | ||||||
Exchange and rental assets (net of accumulated depreciation of $91 at September 30, 2013 and $94 at September 30, 2012) | 55 | 51 | ||||||
Other | 112 | 124 | ||||||
Other assets | $ | 221 | $ | 228 | ||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
Short-term debt and a reconciliation to the carrying amount is summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Short-term commercial paper borrowings | $ | 235 | $ | — | ||||
Current portion of long-term debt | 200 | — | ||||||
Current portion of fair value swap adjustment (Notes 17 and 18) | 1 | — | ||||||
Short-term debt | $ | 436 | $ | — | ||||
Long-Term Debt Reconciliation to Carrying Amount | ' | |||||||
Long-term debt and a reconciliation to the carrying amount is summarized as follows: | ||||||||
(in millions) | September 30, | September 30, | ||||||
2013 | 2012 | |||||||
Principal amount of 2021 Notes, net of discount | $ | 249 | $ | 249 | ||||
Principal amount of 2019 Notes, net of discount | 299 | 299 | ||||||
Principal amount of 2013 Notes | 200 | 200 | ||||||
Fair value swap adjustment (Notes 17 and 18) | 16 | 31 | ||||||
Total | $ | 764 | $ | 779 | ||||
Less current portion | 201 | — | ||||||
Long-term debt, net | $ | 563 | $ | 779 | ||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure | ' | ||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Components of Expense Income | ' | ||||||||||||||||||||||||||||||||
The components of expense (income) for Pension Benefits and Other Retirement Benefits are summarized below: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Retirement Benefits | ||||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 8 | $ | 8 | $ | 4 | $ | 4 | $ | 4 | |||||||||||||||||||||
Interest cost | 139 | 153 | 159 | 8 | 10 | 11 | |||||||||||||||||||||||||||
Expected return on plan assets | (203 | ) | (213 | ) | (212 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||
Prior service credit | (18 | ) | (18 | ) | (19 | ) | (8 | ) | (6 | ) | (16 | ) | |||||||||||||||||||||
Net actuarial loss | 79 | 57 | 48 | 12 | 11 | 12 | |||||||||||||||||||||||||||
Net benefit expense (income) | $ | 7 | $ | (13 | ) | $ | (16 | ) | $ | 15 | $ | 18 | $ | 10 | |||||||||||||||||||
Reconciliation of pension benefit obligation, plan assets, funded status and net liability for Pension Benefits and Other Retirement Benefits | ' | ||||||||||||||||||||||||||||||||
The following table reconciles the projected benefit obligations (PBO), plan assets, funded status and net liability for the Company's Pension Benefits and the Other Retirement Benefits. | |||||||||||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||||||||||
Retirement Benefits | |||||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
PBO at beginning of period | $ | 3,967 | $ | 3,518 | $ | 254 | $ | 254 | |||||||||||||||||||||||||
Service cost | 10 | 8 | 4 | 4 | |||||||||||||||||||||||||||||
Interest cost | 139 | 153 | 8 | 10 | |||||||||||||||||||||||||||||
Discount rate and other assumption changes | (319 | ) | 408 | (19 | ) | 25 | |||||||||||||||||||||||||||
Actuarial losses (gains) | 19 | 57 | (20 | ) | (7 | ) | |||||||||||||||||||||||||||
Plan amendments | — | — | 1 | (16 | ) | ||||||||||||||||||||||||||||
Plan participant contributions | — | — | 5 | 8 | |||||||||||||||||||||||||||||
Benefits paid | (160 | ) | (175 | ) | (19 | ) | (24 | ) | |||||||||||||||||||||||||
Other | 4 | (2 | ) | — | — | ||||||||||||||||||||||||||||
PBO at end of period | 3,660 | 3,967 | 214 | 254 | |||||||||||||||||||||||||||||
Plan assets at beginning of period | 2,501 | 2,111 | 12 | 9 | |||||||||||||||||||||||||||||
Actual return on plan assets | 317 | 437 | 1 | 2 | |||||||||||||||||||||||||||||
Company contributions | 122 | 126 | 15 | 17 | |||||||||||||||||||||||||||||
Plan participant contributions | — | — | 5 | 8 | |||||||||||||||||||||||||||||
Benefits paid | (160 | ) | (175 | ) | (19 | ) | (24 | ) | |||||||||||||||||||||||||
Other | (1 | ) | 2 | — | — | ||||||||||||||||||||||||||||
Plan assets at end of period | 2,779 | 2,501 | 14 | 12 | |||||||||||||||||||||||||||||
Funded status of plans | $ | (881 | ) | $ | (1,466 | ) | $ | (200 | ) | $ | (242 | ) | |||||||||||||||||||||
Funded status consists of: | |||||||||||||||||||||||||||||||||
Retirement benefits liability | $ | (879 | ) | $ | (1,461 | ) | $ | (198 | ) | $ | (231 | ) | |||||||||||||||||||||
Compensation and benefits liability | (12 | ) | (11 | ) | (2 | ) | (11 | ) | |||||||||||||||||||||||||
Other assets | 10 | 6 | — | — | |||||||||||||||||||||||||||||
Net liability | $ | (881 | ) | $ | (1,466 | ) | $ | (200 | ) | $ | (242 | ) | |||||||||||||||||||||
Schedule Of Other Comprehensive Loss Related to Retirement Benefits | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the amounts included in Accumulated other comprehensive loss before tax related to retirement benefits as of September 30, 2013 and 2012 and changes recognized in Other comprehensive loss before tax for the years ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||||||||||
Retirement Benefits | |||||||||||||||||||||||||||||||||
(in millions) | Prior Service | Net Actuarial | Prior Service | Net Actuarial | |||||||||||||||||||||||||||||
Cost (Credit) | Loss | Cost (Credit) | Loss | ||||||||||||||||||||||||||||||
Balance at September 30, 2011 | $ | (42 | ) | $ | 2,267 | $ | (17 | ) | $ | 157 | |||||||||||||||||||||||
Current year prior service cost | — | — | (16 | ) | — | ||||||||||||||||||||||||||||
Current year net actuarial loss | — | 241 | — | 18 | |||||||||||||||||||||||||||||
Amortization of prior service cost | 18 | — | 6 | — | |||||||||||||||||||||||||||||
Amortization of actuarial loss | — | (57 | ) | — | (11 | ) | |||||||||||||||||||||||||||
Balance at September 30, 2012 | (24 | ) | 2,451 | (27 | ) | 164 | |||||||||||||||||||||||||||
Current year prior service cost | — | — | 1 | — | |||||||||||||||||||||||||||||
Current year net actuarial gain | — | (414 | ) | — | (39 | ) | |||||||||||||||||||||||||||
Amortization of prior service cost | 18 | — | 8 | — | |||||||||||||||||||||||||||||
Amortization of actuarial loss | — | (79 | ) | (12 | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2013 | $ | (6 | ) | $ | 1,958 | $ | (18 | ) | $ | 113 | |||||||||||||||||||||||
Schedule Of Amounts Amortized From Accumulated Other Comprehensive Loss In Next Fiscal Year | ' | ||||||||||||||||||||||||||||||||
The estimated amounts that will be amortized from Accumulated other comprehensive loss into expense (income) for Pension Benefits and Other Retirement Benefits during the year ending September 30, 2014 are as follows: | |||||||||||||||||||||||||||||||||
(in millions) | Pension | Other | Total | ||||||||||||||||||||||||||||||
Benefits | Retirement | ||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||
Prior service cost | $ | (12 | ) | $ | (10 | ) | $ | (22 | ) | ||||||||||||||||||||||||
Net actuarial loss | 67 | 8 | 75 | ||||||||||||||||||||||||||||||
Total | $ | 55 | $ | (2 | ) | $ | 53 | ||||||||||||||||||||||||||
Schedule Of Assumptions Used | ' | ||||||||||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||||||||||
Retirement Benefits | |||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Discount rate | 4.48 | % | 3.56 | % | 3.93 | % | 4.08 | % | 4.11 | % | 3.21 | % | |||||||||||||||||||||
Compensation increase rate | — | — | 3.45 | % | 3.46 | % | — | — | |||||||||||||||||||||||||
Significant assumptions used in determining the net benefit expense (income) are as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||||||||||
Retirement Benefits | |||||||||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Discount rate | 3.56 | % | 4.43 | % | 4.08 | % | 5.57 | % | 3.21 | % | 4.2 | % | |||||||||||||||||||||
Expected long-term return on plan assets | 8.25 | % | 8.75 | % | 8.23 | % | 8.73 | % | 8.25 | % | 8.75 | % | |||||||||||||||||||||
Compensation increase rate | — | — | 3.46 | % | 3.46 | % | — | — | |||||||||||||||||||||||||
Health care cost gross trend rate (1) | — | — | — | — | 8.5 | % | 9 | % | |||||||||||||||||||||||||
Ultimate trend rate (1) | — | — | — | — | 5 | % | 5 | % | |||||||||||||||||||||||||
Year that trend reaches ultimate rate (1) | — | — | — | — | 2019 | 2019 | |||||||||||||||||||||||||||
(1) Due to the effect of the fixed Company contribution, increasing or decreasing the health care cost trend rate by one percentage point would not have a significant impact on the Company's cost of providing Other Retirement Benefits. | |||||||||||||||||||||||||||||||||
Schedule Of Target And Actual Asset Allocations | ' | ||||||||||||||||||||||||||||||||
Target and actual asset allocations as of September 30, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||||||
Target Mix | 2013 | 2012 | |||||||||||||||||||||||||||||||
Equities | 40% | - | 70% | 65 | % | 61 | % | ||||||||||||||||||||||||||
Fixed income | 25% | - | 60% | 32 | % | 36 | % | ||||||||||||||||||||||||||
Alternative investments | —% | - | —% | — | % | — | % | ||||||||||||||||||||||||||
Cash | —% | - | 5% | 3 | % | 3 | % | ||||||||||||||||||||||||||
Schedule Of Company Contributions To Pension Plans | ' | ||||||||||||||||||||||||||||||||
For the years ended September 30, 2013 and 2012, the Company made contributions to its pension plans as follows: | |||||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | |||||||||||||||||||||||||||||||
Contributions to U.S. qualified plan | $ | 110 | $ | 113 | |||||||||||||||||||||||||||||
Contributions to U.S. non-qualified plan | 7 | 8 | |||||||||||||||||||||||||||||||
Contributions to non-U.S. plans | 5 | 5 | |||||||||||||||||||||||||||||||
Total | $ | 122 | $ | 126 | |||||||||||||||||||||||||||||
Schedule Of Estimated Benefit Payments | ' | ||||||||||||||||||||||||||||||||
The following table reflects estimated benefit payments to be made to eligible participants for each of the next five years and the following five years in the aggregate: | |||||||||||||||||||||||||||||||||
(in millions) | Pension | Other | |||||||||||||||||||||||||||||||
Benefits | Retirement | ||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||
2014 | $ | 210 | $ | 16 | |||||||||||||||||||||||||||||
2015 | 201 | 16 | |||||||||||||||||||||||||||||||
2016 | 206 | 15 | |||||||||||||||||||||||||||||||
2017 | 212 | 18 | |||||||||||||||||||||||||||||||
2018 | 218 | 17 | |||||||||||||||||||||||||||||||
2019Â -Â 2023 | 1,148 | 83 | |||||||||||||||||||||||||||||||
Schedule Of Defined Contribution Savings Plan Expense | ' | ||||||||||||||||||||||||||||||||
The Company's expense related to the defined contribution savings plans for 2013, 2012, and 2011 was as follows: | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
(in millions) | Shares | Expense | Shares | Expense | Shares | Expense | |||||||||||||||||||||||||||
Contribution in shares: | |||||||||||||||||||||||||||||||||
Defined contribution savings plans | 0.7 | $ | 43 | 1.1 | $ | 58 | 1 | $ | 57 | ||||||||||||||||||||||||
Contribution in cash: | |||||||||||||||||||||||||||||||||
Retirement contribution | 39 | 41 | 39 | ||||||||||||||||||||||||||||||
Other | 3 | 2 | 1 | ||||||||||||||||||||||||||||||
Total | $ | 85 | $ | 101 | $ | 97 | |||||||||||||||||||||||||||
Pension Plans, Defined Benefit [Member] | ' | ||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure | ' | ||||||||||||||||||||||||||||||||
Schedule of Fair Value of Plan Assets, by Level Within Fair Value Hierarchy | ' | ||||||||||||||||||||||||||||||||
The following table presents the fair value of the Company's pension plans' assets as of September 30, 2013 and 2012, by asset category segregated by level within the fair value hierarchy, as described in Note 17: | |||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset category: | |||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
U.S. equity | $ | 821 | $ | 246 | $ | — | $ | 1,067 | $ | 859 | $ | 183 | $ | — | $ | 1,042 | |||||||||||||||||
Non-U.S. equity | 699 | 50 | — | 749 | 438 | 48 | — | 486 | |||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
Corporate | — | 696 | — | 696 | — | 545 | — | 545 | |||||||||||||||||||||||||
U.S. government | 41 | 82 | — | 123 | 139 | 133 | — | 272 | |||||||||||||||||||||||||
Emerging market | — | 49 | — | 49 | — | 72 | — | 72 | |||||||||||||||||||||||||
Mortgage and asset-backed | — | 5 | — | 5 | — | 3 | — | 3 | |||||||||||||||||||||||||
Other | — | 19 | — | 19 | — | 16 | — | 16 | |||||||||||||||||||||||||
Cash and cash equivalents | — | 60 | — | 60 | — | 58 | — | 58 | |||||||||||||||||||||||||
Sub-total | 1,561 | 1,207 | — | 2,768 | 1,436 | 1,058 | — | 2,494 | |||||||||||||||||||||||||
Net receivables related to investment transactions | 11 | 7 | |||||||||||||||||||||||||||||||
Total | $ | 2,779 | $ | 2,501 | |||||||||||||||||||||||||||||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure | ' | ||||||||||||||||||||||||||||||||
Schedule of Fair Value of Plan Assets, by Level Within Fair Value Hierarchy | ' | ||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset category: | |||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
U.S. equity | $ | 7 | $ | — | $ | — | $ | 7 | $ | 6 | $ | — | $ | — | $ | 6 | |||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
Corporate | — | 2 | — | 2 | — | 1 | — | 1 | |||||||||||||||||||||||||
U.S. government | 2 | 1 | — | 3 | 2 | 1 | — | 3 | |||||||||||||||||||||||||
Mortgage and asset-backed | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Cash and cash equivalents | — | 2 | — | 2 | — | 2 | — | 2 | |||||||||||||||||||||||||
Total | $ | 9 | $ | 5 | $ | — | $ | 14 | $ | 8 | $ | 4 | $ | — | $ | 12 | |||||||||||||||||
Shareowners_Equity_Tables
Shareowners' Equity (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Schedule of Treasury Stock | ' | ||||||||||||
The Company repurchased shares of its common stock as follows: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Amount of share repurchases | $ | 569 | $ | 723 | $ | 322 | |||||||
Number of shares repurchased | 9.8 | 13.3 | 5.5 | ||||||||||
Schedule Of Accumulated Other Comprehensive Income Loss | ' | ||||||||||||
Accumulated other comprehensive loss (AOCL) consists of the following: | |||||||||||||
September 30 | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Unamortized pension and other retirement benefits (net of taxes of $754 for 2013, $945 for 2012 and $872 for 2011) | $ | (1,293 | ) | $ | (1,619 | ) | $ | (1,493 | ) | ||||
Foreign currency translation adjustment | 12 | 10 | (3 | ) | |||||||||
Foreign currency cash flow hedge adjustment | (6 | ) | 2 | (1 | ) | ||||||||
Accumulated other comprehensive loss | $ | (1,287 | ) | $ | (1,607 | ) | $ | (1,497 | ) |
StockBased_Compensation_and_Ea1
Stock-Based Compensation and Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Stock Based Compensation and Earnings Per Share Abstract | ' | ||||||||||||||||||||||
Stock-Based Compensation Expense Categorization | ' | ||||||||||||||||||||||
Total stock-based compensation expense and related income tax benefit included within the Consolidated Statement of Operations for 2013, 2012, and 2011 is as follows: | |||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Stock-based compensation expense included in: | |||||||||||||||||||||||
Cost of sales | $ | 6 | $ | 7 | $ | 7 | |||||||||||||||||
Selling, general and administrative expenses | 14 | 17 | 17 | ||||||||||||||||||||
Total | $ | 20 | $ | 24 | $ | 24 | |||||||||||||||||
Income tax benefit | $ | 7 | $ | 8 | $ | 8 | |||||||||||||||||
Schedule of Stock Option Activity | ' | [1] | |||||||||||||||||||||
The following summarizes the activity of the Company's stock options for 2013: | |||||||||||||||||||||||
Shares (in thousands) | Weighted | Weighted | Aggregate | ||||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||||
Price | Life | (in millions) | |||||||||||||||||||||
(in years) | |||||||||||||||||||||||
Outstanding at September 30, 2012 | 5,520 | $ | 46.13 | ||||||||||||||||||||
Granted | 965 | 55.6 | |||||||||||||||||||||
Exercised | (1,623 | ) | 38.01 | ||||||||||||||||||||
Forfeited or expired | (218 | ) | 54.44 | ||||||||||||||||||||
Outstanding at September 30, 2013 | 4,644 | $ | 50.55 | 5.9 | $ | 86 | |||||||||||||||||
Vested or expected to vest (1) | 4,569 | $ | 50.46 | 5.9 | $ | 86 | |||||||||||||||||
Exercisable at September 30, 2013 | 3,155 | $ | 48.15 | 4.7 | $ | 66 | |||||||||||||||||
-1 | Represents outstanding options reduced by expected forfeitures | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Weighted-average fair value per share of options granted | $ | 12.81 | $ | 13.89 | $ | 14.77 | |||||||||||||||||
Intrinsic value of options exercised (in millions) (2) | $ | 43 | $ | 23 | $ | 26 | |||||||||||||||||
Tax deduction resulting from intrinsic value of options exercised (in millions) | $ | 11 | $ | 7 | $ | 8 | |||||||||||||||||
(2) Represents the amount by which the stock price exceeded the exercise price of the options on the date of the exercise | |||||||||||||||||||||||
Assumptions Used to Value Option Grants | ' | ||||||||||||||||||||||
The fair value of each option granted by the Company was estimated using a binomial lattice pricing model and the following weighted average assumptions: | |||||||||||||||||||||||
2013 Grants | 2012 Grants | 2011 Grants | |||||||||||||||||||||
Risk-free interest rate | 0.3% - 2.9% | 0.3% - 2.2% | 0.3% - 3.9% | ||||||||||||||||||||
Expected dividend yield | 2 | % | 1.6 | % | 1.7 | % | |||||||||||||||||
Expected volatility | 27 | % | 27 | % | 27 | % | |||||||||||||||||
Expected life | 8 years | 8 years | 8 years | ||||||||||||||||||||
Schedule of Performance Shares, Restricted Shares, and Restricted Stock Units Activity | ' | ||||||||||||||||||||||
The following summarizes the Company's performance shares, restricted stock and restricted stock units for 2013: | |||||||||||||||||||||||
Performance | Restricted | Restricted | |||||||||||||||||||||
Shares | Stock | Stock Units | |||||||||||||||||||||
(shares in thousands) | Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Grant Date Fair Value | Grant Date Fair Value | Grant Date Fair Value | |||||||||||||||||||||
Nonvested at September 30, 2012 | 551 | $ | 54.74 | 56 | $ | 52.62 | 261 | $ | 54.59 | ||||||||||||||
Granted | 222 | 55.69 | — | — | 88 | 56.04 | |||||||||||||||||
Vested | (177 | ) | 53.19 | (52 | ) | 52.95 | (30 | ) | 53.99 | ||||||||||||||
Forfeited | (58 | ) | 54.69 | — | — | (6 | ) | 55.25 | |||||||||||||||
Nonvested at September 30, 2013 | 538 | $ | 55.65 | 4 | $ | 47.87 | 313 | $ | 55.04 | ||||||||||||||
(in millions) | Performance Shares | Restricted Stock | Restricted Stock Units | ||||||||||||||||||||
Total unrecognized compensation costs at September 30, 2013 | $ | 8 | $ | — | $ | 4 | |||||||||||||||||
Weighted-average life remaining at September 30, 2013, in years | 1 | 0 | 1.2 | ||||||||||||||||||||
Weighted-average fair value per share granted in 2012 | $ | 59.08 | $ | — | $ | 55.41 | |||||||||||||||||
Weighted-average fair value per share granted in 2011 | $ | 55.91 | $ | — | $ | 57.82 | |||||||||||||||||
Earnings Per Share and Diluted Share Equivalents | ' | ||||||||||||||||||||||
The computation of basic and diluted earnings per share is as follows: | |||||||||||||||||||||||
(in millions, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||
Income from continuing operations | $ | 632 | $ | 609 | $ | 615 | |||||||||||||||||
Income from discontinued operations, net of taxes | — | — | 19 | ||||||||||||||||||||
Net income | $ | 632 | $ | 609 | $ | 634 | |||||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic earnings per share – weighted average common shares | 136.5 | 145.3 | 154.2 | ||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Stock options | 1.2 | 1.1 | 1.4 | ||||||||||||||||||||
Performance shares, restricted stock and restricted stock units | 0.4 | 0.4 | 0.5 | ||||||||||||||||||||
Dilutive potential common shares | 1.6 | 1.5 | 1.9 | ||||||||||||||||||||
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversion | 138.1 | 146.8 | 156.1 | ||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Continuing operations | $ | 4.63 | $ | 4.19 | $ | 3.99 | |||||||||||||||||
Discontinued operations | — | — | 0.12 | ||||||||||||||||||||
Basic earnings per share | $ | 4.63 | $ | 4.19 | $ | 4.11 | |||||||||||||||||
Diluted | |||||||||||||||||||||||
Continuing operations | $ | 4.58 | $ | 4.15 | $ | 3.94 | |||||||||||||||||
Discontinued operations | — | — | 0.12 | ||||||||||||||||||||
Diluted earnings per share | $ | 4.58 | $ | 4.15 | $ | 4.06 | |||||||||||||||||
[1] | Represents the amount by which the stock price exceeded the exercise price of the options on the date of the exercise |
Other_Income_Net_Tables
Other Income, Net (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Nonoperating Income (Expense) [Abstract] | ' | ||||||||||||
Summary of Other Income, Net | ' | ||||||||||||
Other income, net consists of the following: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Earnings from equity affiliates | $ | (13 | ) | $ | (11 | ) | $ | (13 | ) | ||||
Gain on sale of property | — | (5 | ) | — | |||||||||
Interest income | (2 | ) | (3 | ) | (5 | ) | |||||||
Royalty income | (3 | ) | (4 | ) | (2 | ) | |||||||
Other | 2 | (2 | ) | (8 | ) | ||||||||
Other income, net | $ | (16 | ) | $ | (25 | ) | $ | (28 | ) |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule Of Components Of Income Tax Expense | ' | ||||||||||||
The components of income tax expense from continuing operations are as follows: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Current: | |||||||||||||
U.S. federal | $ | 154 | $ | 118 | $ | 128 | |||||||
Non-U.S. | 18 | 22 | 16 | ||||||||||
U.S. state and local | 11 | 3 | 3 | ||||||||||
Total current | 183 | 143 | 147 | ||||||||||
Deferred: | |||||||||||||
U.S. federal | 51 | 103 | 83 | ||||||||||
Non-U.S. | (3 | ) | (8 | ) | — | ||||||||
U.S. state and local | 5 | 10 | 10 | ||||||||||
Total deferred | 53 | 105 | 93 | ||||||||||
Income tax expense | $ | 236 | $ | 248 | $ | 240 | |||||||
Net current deferred income tax benefits (liabilities) consist of the tax effects of temporary differences related to the following: | |||||||||||||
September 30 | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Inventory | $ | (129 | ) | $ | (95 | ) | |||||||
Product warranty costs | 36 | 38 | |||||||||||
Customer incentives | 50 | 51 | |||||||||||
Contract reserves | 8 | 11 | |||||||||||
Compensation and benefits | 31 | 33 | |||||||||||
Valuation allowance | (1 | ) | (1 | ) | |||||||||
Other | 22 | 18 | |||||||||||
Current deferred income taxes, net | $ | 17 | $ | 55 | |||||||||
Net long-term deferred income tax benefits (liabilities) consist of the tax effects of temporary differences related to the following: | |||||||||||||
September 30 | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Retirement benefits | $ | 344 | $ | 554 | |||||||||
Intangibles | (33 | ) | (42 | ) | |||||||||
Property | (115 | ) | (121 | ) | |||||||||
Stock-based compensation | 28 | 30 | |||||||||||
Valuation allowance | (10 | ) | (18 | ) | |||||||||
Other | 29 | 51 | |||||||||||
Long-term deferred income taxes, net | $ | 243 | $ | 454 | |||||||||
Current deferred income tax assets and liabilities and long-term deferred income tax assets and liabilities are included in the Consolidated Statement of Financial Position as follows: | |||||||||||||
September 30 | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Current deferred income taxes | $ | 19 | $ | 58 | |||||||||
Other current liabilities | (2 | ) | (3 | ) | |||||||||
Current deferred income taxes, net | $ | 17 | $ | 55 | |||||||||
Long-term deferred income taxes | $ | 245 | $ | 455 | |||||||||
Other liabilities | (2 | ) | (1 | ) | |||||||||
Long-term deferred income taxes, net | $ | 243 | $ | 454 | |||||||||
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation | ' | ||||||||||||
The effective income tax rate from continuing operations differed from the U.S. statutory tax rate as detailed below: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory tax rate | 35 | Â % | 35 | Â % | 35 | Â % | |||||||
State and local income taxes | 1.3 | 1.3 | 1.1 | ||||||||||
Research and development credit | (5.1 | ) | (1.7 | ) | (4.7 | ) | |||||||
Domestic manufacturing deduction | (2.0 | ) | (2.1 | ) | (1.9 | ) | |||||||
Tax settlements | (0.1 | ) | (2.2 | ) | (0.4 | ) | |||||||
Other | (1.9 | ) | (1.4 | ) | (1.0 | ) | |||||||
Effective income tax rate | 27.2 | Â % | 28.9 | Â % | 28.1 | Â % | |||||||
Components of Income Before Income Taxes | ' | ||||||||||||
Income tax expense from continuing operations was calculated based on the following components of income before income taxes: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
U.S. income | $ | 762 | $ | 793 | $ | 778 | |||||||
Non-U.S. income | 106 | 64 | 77 | ||||||||||
Total | $ | 868 | $ | 857 | $ | 855 | |||||||
Summary of Income Tax Contingencies | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended September 30 is as follows: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 42 | $ | 100 | $ | 78 | |||||||
Additions for tax positions related to the current year | 15 | 11 | 22 | ||||||||||
Additions for tax positions of prior years | 3 | — | 6 | ||||||||||
Reductions for tax positions of prior years | (1 | ) | (54 | ) | (4 | ) | |||||||
Reductions for tax positions of prior years related to lapse of statute of limitations | (2 | ) | (2 | ) | (1 | ) | |||||||
Reductions for tax positions related to settlements with taxing authorities | (1 | ) | (13 | ) | (1 | ) | |||||||
Ending balance | $ | 56 | $ | 42 | $ | 100 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial Assets and Liabilities at Fair Value on Recurring Basis | ' | |||||||||||||||
The fair value of the Company's financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and September 30, 2012 are as follows: | ||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
(in millions) | Fair Value | Fair Value | Fair Value | |||||||||||||
Hierarchy | Asset (Liability) | Asset (Liability) | ||||||||||||||
Deferred compensation plan investments | Level 1 | $ | 49 | $ | 42 | |||||||||||
Interest rate swap assets | Level 2 | 16 | 31 | |||||||||||||
Forward starting interest rate swap liabilities | Level 2 | (5 | ) | — | ||||||||||||
Foreign currency forward exchange contract assets | Level 2 | 6 | 7 | |||||||||||||
Foreign currency forward exchange contract liabilities | Level 2 | (6 | ) | (5 | ) | |||||||||||
Financial Instruments at Fair Value and Carrying Value | ' | |||||||||||||||
The carrying amounts and fair values of the Company's financial instruments are as follows: | ||||||||||||||||
Asset (Liability) | ||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
(in millions) | Carrying | Fair | Carrying | Fair | ||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Cash and cash equivalents | $ | 391 | $ | 391 | $ | 335 | $ | 335 | ||||||||
Short-term debt: | ||||||||||||||||
2013 Notes | (200 | ) | (201 | ) | — | — | ||||||||||
Commercial paper borrowings | (235 | ) | (235 | ) | — | — | ||||||||||
Long-term debt | (548 | ) | (586 | ) | (748 | ) | (837 | ) |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Fair Value of Derivative Instruments in Condensed Consolidated Statement of Financial Position | ' | |||||||||
Fair values of derivative instruments in the Consolidated Statement of Financial Position as of September 30, 2013 and September 30, 2012 are as follows: | ||||||||||
Asset Derivatives | ||||||||||
(in millions) | Classification | September 30, | September 30, | |||||||
2013 | 2012 | |||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 6 | $ | 7 | |||||
Interest rate swaps | Other assets | 15 | 31 | |||||||
Interest rate swaps | Other current assets | 1 | — | |||||||
Total | $ | 22 | $ | 38 | ||||||
Liability Derivatives | ||||||||||
(in millions) | Classification | September 30, | September 30, | |||||||
2013 | 2012 | |||||||||
Foreign currency forward exchange contracts | Other current liabilities | $ | 6 | $ | 5 | |||||
Forward starting interest rate swaps | Other current liabilities | 5 | — | |||||||
Total | $ | 11 | $ | 5 | ||||||
Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations | ' | |||||||||
The effect of derivative instruments on the Consolidated Statement of Operations for the fiscal years ended September 30 is as follows: | ||||||||||
Amount of Gain (Loss) | ||||||||||
(in millions) | Location of Gain (Loss) | September 30, | September 30, | |||||||
2013 | 2012 | |||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||
Fair Value Hedges | ||||||||||
Foreign currency forward exchange contracts | Cost of sales | $ | 2 | $ | (3 | ) | ||||
Interest rate swaps | Interest expense | 10 | 9 | |||||||
Cash Flow Hedges | ||||||||||
Foreign currency forward exchange contracts: | ||||||||||
Amount of gain (loss) recognized in AOCL (effective portion, before deferred tax impact) | AOCL | $ | (5 | ) | $ | 2 | ||||
Amount of gain (loss) reclassified from AOCL into income | Cost of sales | — | (1 | ) | ||||||
Forward starting interest rate swaps: | ||||||||||
Amount of gain (loss) recognized in AOCL (effective portion, before deferred tax impact) | AOCL | (5 | ) | — | ||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||
Foreign currency forward exchange contracts | Cost of sales | — | 1 | |||||||
Guarantees_and_Indemnification1
Guarantees and Indemnifications (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Guarantees and Indemnifications Abstract | ' | |||||||||||
Changes in Accrued Product Warranty Costs | ' | |||||||||||
Changes in the carrying amount of accrued product warranty costs are summarized as follows: | ||||||||||||
September 30 | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Balance at beginning of year | $ | 126 | $ | 148 | $ | 183 | ||||||
Warranty costs incurred | (46 | ) | (47 | ) | (52 | ) | ||||||
Product warranty accrual | 48 | 46 | 34 | |||||||||
Changes in estimates for prior years | (7 | ) | (21 | ) | (20 | ) | ||||||
Foreign currency translation adjustments | — | — | 3 | |||||||||
Balance at September 30 | $ | 121 | $ | 126 | $ | 148 | ||||||
Contractual_Obligations_and_Ot1
Contractual Obligations and Other Commitments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Contractual Obligations and Other Commitments [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Contractual Obligations and Other Commitments | ' | ||||||||||||||||||||||||||||
The following table reflects certain of the Company's non-cancelable contractual commitments as of September 30, 2013: | |||||||||||||||||||||||||||||
Payments Due By Period | |||||||||||||||||||||||||||||
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Non-cancelable operating leases | $ | 64 | $ | 45 | $ | 24 | $ | 18 | $ | 14 | $ | 22 | $ | 187 | |||||||||||||||
Purchase contracts | 40 | 28 | 16 | 3 | 2 | 5 | 94 | ||||||||||||||||||||||
Long-term debt | — | — | — | — | — | 550 | 550 | ||||||||||||||||||||||
Interest on long-term debt | 24 | 23 | 24 | 23 | 23 | 43 | 160 | ||||||||||||||||||||||
Total | $ | 128 | $ | 96 | $ | 64 | $ | 44 | $ | 39 | $ | 620 | $ | 991 | |||||||||||||||
Restructuring_and_Asset_Impair1
Restructuring and Asset Impairment Charges (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring Costs and Asset Impairment Charges [Abstract] | ' | |||||||||||||||
Summary of Restructuring and Asset Impairment Charges | ' | |||||||||||||||
The 2012 restructuring and asset impairment charges, net were recorded as follows: | ||||||||||||||||
Cost of Sales | Selling, General and Administrative Expense | Other Income, Net | Total | |||||||||||||
Employee separation costs | $ | 33 | $ | 2 | $ | — | $ | 35 | ||||||||
Asset impairment charges | 5 | — | — | 5 | ||||||||||||
Total | 38 | 2 | — | 40 | ||||||||||||
Customer bankruptcy charges | — | 23 | — | 23 | ||||||||||||
Gain on disposition of property | — | — | (5 | ) | (5 | ) | ||||||||||
Total restructuring and asset impairment charges, net | $ | 38 | $ | 25 | $ | (5 | ) | $ | 58 | |||||||
Business_Segment_Information_T
Business Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Sales and Results of Continuing Operations of Operating Segments | ' | ||||||||||||||||||||||||
The sales and earnings of continuing operations of the Company's operating segments are summarized as follows: | |||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||
Government Systems | $ | 2,395 | $ | 2,591 | $ | 2,813 | |||||||||||||||||||
Commercial Systems | 2,215 | 2,135 | 1,993 | ||||||||||||||||||||||
Total sales | $ | 4,610 | $ | 4,726 | $ | 4,806 | |||||||||||||||||||
Segment operating earnings: | |||||||||||||||||||||||||
Government Systems | $ | 499 | $ | 568 | $ | 592 | |||||||||||||||||||
Commercial Systems | 477 | 440 | 381 | ||||||||||||||||||||||
Total segment operating earnings | 976 | 1,008 | 973 | ||||||||||||||||||||||
Interest expense | (28 | ) | (27 | ) | (19 | ) | |||||||||||||||||||
Stock-based compensation | (20 | ) | (24 | ) | (24 | ) | |||||||||||||||||||
General corporate, net | (60 | ) | (42 | ) | (48 | ) | |||||||||||||||||||
Restructuring and asset impairment charges, net | — | (58 | ) | (27 | ) | ||||||||||||||||||||
Income from continuing operations before income taxes | 868 | 857 | 855 | ||||||||||||||||||||||
Income tax expense | (236 | ) | (248 | ) | (240 | ) | |||||||||||||||||||
Income from continuing operations | $ | 632 | $ | 609 | $ | 615 | |||||||||||||||||||
Investments in Equity Affiliates, Depreciation and Amortization, Capital Expenditures, and Earnings from Equity Affiliates, by Segment | ' | ||||||||||||||||||||||||
The following tables summarize the identifiable assets and investments in equity affiliates at September 30, 2013, 2012 and 2011, as well as the provision for depreciation and amortization, the amount of capital expenditures for property, and earnings from equity affiliates for each of the three years ended September 30, for each of the operating segments and Corporate: | |||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Identifiable assets: | |||||||||||||||||||||||||
Government Systems | $ | 2,174 | $ | 2,113 | $ | 2,139 | |||||||||||||||||||
Commercial Systems | 2,465 | 2,233 | 2,110 | ||||||||||||||||||||||
Corporate | 761 | 968 | 1,140 | ||||||||||||||||||||||
Total identifiable assets | $ | 5,400 | $ | 5,314 | $ | 5,389 | |||||||||||||||||||
Investments in equity affiliates: | |||||||||||||||||||||||||
Government Systems | $ | 22 | $ | 19 | $ | 11 | |||||||||||||||||||
Commercial Systems | — | — | — | ||||||||||||||||||||||
Total investments in equity affiliates | $ | 22 | $ | 19 | $ | 11 | |||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||||
Government Systems | $ | 84 | $ | 87 | $ | 76 | |||||||||||||||||||
Commercial Systems | 96 | 87 | 83 | ||||||||||||||||||||||
Total depreciation and amortization | $ | 180 | $ | 174 | $ | 159 | |||||||||||||||||||
Capital expenditures for property: | |||||||||||||||||||||||||
Government Systems | $ | 62 | $ | 76 | $ | 81 | |||||||||||||||||||
Commercial Systems | 58 | 62 | 71 | ||||||||||||||||||||||
Total capital expenditures for property | $ | 120 | $ | 138 | $ | 152 | |||||||||||||||||||
Earnings from equity affiliates: | |||||||||||||||||||||||||
Government Systems | $ | 13 | $ | 11 | $ | 13 | |||||||||||||||||||
Commercial Systems | — | — | — | ||||||||||||||||||||||
Total earnings from equity affiliates | $ | 13 | $ | 11 | $ | 13 | |||||||||||||||||||
Summary of Sales by Product Category | ' | ||||||||||||||||||||||||
The following table summarizes sales by product category for the years ended September 30, 2013, 2012 and 2011: | |||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Government Systems product categories: | |||||||||||||||||||||||||
Avionics | $ | 1,384 | $ | 1,476 | $ | 1,434 | |||||||||||||||||||
Communication products | 586 | 652 | 698 | ||||||||||||||||||||||
Surface solutions | 232 | 226 | 377 | ||||||||||||||||||||||
Navigation products | 193 | 237 | 304 | ||||||||||||||||||||||
Government Systems sales | 2,395 | 2,591 | 2,813 | ||||||||||||||||||||||
Commercial Systems product categories: | |||||||||||||||||||||||||
Air transport aviation electronics | 1,183 | 1,139 | 1,049 | ||||||||||||||||||||||
Business and regional aviation electronics | 1,032 | 996 | 944 | ||||||||||||||||||||||
Commercial Systems sales | 2,215 | 2,135 | 1,993 | ||||||||||||||||||||||
Total sales | $ | 4,610 | $ | 4,726 | $ | 4,806 | |||||||||||||||||||
Schedule of Sales and Property by Geographic Region | ' | ||||||||||||||||||||||||
The following table reflects sales for the years ended September 30, 2013, 2012 and 2011 by location of our customers and property at September 30, 2013, 2012 and 2011 by geographic region: | |||||||||||||||||||||||||
Sales | Property | ||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
U.S.(1) | $ | 2,946 | $ | 3,169 | $ | 3,356 | $ | 679 | $ | 680 | $ | 658 | |||||||||||||
Europe | 787 | 816 | 848 | 75 | 72 | 77 | |||||||||||||||||||
Asia-Pacific | 371 | 326 | 267 | 14 | 15 | 12 | |||||||||||||||||||
Canada | 322 | 287 | 241 | 1 | 1 | 1 | |||||||||||||||||||
Africa / Middle East | 99 | 65 | 54 | — | — | — | |||||||||||||||||||
Latin America | 85 | 63 | 40 | 4 | 5 | 6 | |||||||||||||||||||
International | $ | 1,664 | $ | 1,557 | $ | 1,450 | $ | 94 | $ | 93 | $ | 96 | |||||||||||||
Total | $ | 4,610 | $ | 4,726 | $ | 4,806 | $ | 773 | $ | 773 | $ | 754 | |||||||||||||
(1) For the years ended September 30, 2013, 2012, and 2011, U.S. sales include revenue from foreign military sales of $184 million, $162 million, and $114 million, respectively. |
Recovered_Sheet1
Quarterly Financial information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Quarterly financial information for the years ended September 30, 2013 and 2012 is summarized as follows: | ||||||||||||||||||||||||||||||||||||||||||
2012 Quarters | ||||||||||||||||||||||||||||||||||||||||||
2013 Quarters | (in millions, except per share amounts) | First | Second | Third | Fourth | Total | ||||||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | First | Second | Third | Fourth | Total | Sales | $ | 1,094 | $ | 1,161 | $ | 1,205 | $ | 1,266 | $ | 4,726 | ||||||||||||||||||||||||||
Sales | $ | 1,062 | $ | 1,131 | $ | 1,165 | $ | 1,252 | $ | 4,610 | ||||||||||||||||||||||||||||||||
Gross profit (total sales less cost of sales) | 320 | 351 | 359 | 372 | 1,402 | |||||||||||||||||||||||||||||||||||||
Gross profit (total sales less cost of sales) | 312 | 327 | 370 | 377 | 1,386 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 130 | $ | 161 | $ | 166 | $ | 152 | $ | 609 | ||||||||||||||||||||||||||||||||
Net income | $ | 132 | $ | 161 | $ | 164 | $ | 175 | $ | 632 | ||||||||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||||||||||||
Earnings per share: | Basic earnings per share | $ | 0.87 | $ | 1.1 | $ | 1.16 | $ | 1.07 | $ | 4.19 | |||||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.95 | $ | 1.18 | $ | 1.21 | $ | 1.3 | $ | 4.63 | ||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.86 | $ | 1.09 | $ | 1.14 | $ | 1.06 | $ | 4.15 | ||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.94 | $ | 1.17 | $ | 1.2 | $ | 1.28 | $ | 4.58 | ||||||||||||||||||||||||||||||||
Business_Description_and_Basis1
Business Description and Basis of Presentation (Details) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Companys Fiscal Year Period | ' | ' | ' |
Operating Cycle | '52/53 weeks | ' | ' |
Current Year Fiscal Period | 'P52W | 'P52W | 'P52W |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Subsidiary | |||
Significant Accounting Policies | ' | ' | ' |
Number of Consolidated Subsidiaries with Income Attributable to Noncontrolling Interest | 1 | ' | ' |
Inventory Valuation Reserves | $90 | $86 | ' |
Preproduction Engineering Costs Useful Life Maximum, in Years | '15 years | ' | ' |
Up-Front Sales Incentives Amortization Period Maximum, in Years | '15 years | ' | ' |
Goodwill, Impairment Loss | 0 | 0 | 0 |
Receivables, net | 1,058 | 971 | ' |
U.S. Commercial Airlines [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Receivables, net | 22 | ' | ' |
International Commercial Airlines [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Receivables, net | 35 | ' | ' |
Business Jet Aircraft Manufacturers [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Receivables, net | $142 | ' | ' |
Workforce Subject to Collective Bargaining Arrangements [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Concentration Risk, Percentage | 10.00% | ' | ' |
Minimum [Member] | Building and Building Improvements [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' |
Minimum [Member] | Machinery and Equipment [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '6 years | ' | ' |
Minimum [Member] | Information Systems Software and Hardware [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Minimum [Member] | Furniture and Fixtures [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '12 years | ' | ' |
Maximum [Member] | Building and Building Improvements [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' | ' |
Maximum [Member] | Machinery and Equipment [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' |
Maximum [Member] | Information Systems Software and Hardware [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' |
Maximum [Member] | Furniture and Fixtures [Member] | ' | ' | ' |
Significant Accounting Policies | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jan. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Sep. 30, 2014 | ||
Computing Technologies for Aviation, Inc. [Member] | Computing Technologies for Aviation, Inc. [Member] | Blue Ridge Simulation, Inc. [Member] | Blue Ridge Simulation, Inc. [Member] | Scenario, Forecast [Member] | ||||||
ARINC [Member] | ||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ||
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | ' | ' | $1,390 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | 17 | 11 | [1] | ' | 6 | [1] | ' | ' |
Goodwill | 779 | 780 | 780 | ' | 10 | ' | 6 | ' | ||
Finite-Lived Intangible Assets, Net | ' | ' | ' | ' | 3 | ' | 1 | ' | ||
Intangible asset weighted average life, in years | ' | ' | ' | ' | '9 years | ' | '9 years | ' | ||
Goodwill, expected tax deductible amount | ' | ' | ' | ' | $0 | ' | $6 | ' | ||
[1] | Net of cash acquired |
Divestitures_Details
Divestitures (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 31, 2011 | Dec. 31, 2013 |
Scenario, Forecast [Member] | |||||
Discontinued Operations | ' | ' | ' | ' | ' |
Proceeds from Divestiture of Businesses | $0 | ($3) | $44 | ' | $25 |
Assets Held-for-sale, Current | 17 | ' | ' | ' | ' |
Liabilities of Assets Held-for-sale | 4 | ' | ' | ' | ' |
Net Proceeds From Divestiture of Business | ' | ' | ' | 41 | ' |
Gain on sale of business, net of tax | ' | ' | 17 | ' | ' |
Sales | 0 | 0 | 19 | ' | ' |
Income from discontinued operations before income taxes | $0 | $0 | $4 | ' | ' |
Receivables_Net_Details
Receivables, Net (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Receivables, Net | ' | ' |
Billed | $823 | $810 |
Unbilled | 432 | 366 |
Less progress payments | -188 | -169 |
Total | 1,067 | 1,007 |
Less allowance for doubtful accounts | -9 | -36 |
Receivables, net | 1,058 | 971 |
Receivables due from equity affiliate | 52 | 58 |
U.S. Government [Member] | ' | ' |
Receivables, Net | ' | ' |
Receivables, net | 312 | 284 |
Unbilled receivables net of progress payments | $97 | $93 |
Inventories_Net_Details
Inventories, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Inventories, Net | ' | ' | ' |
Finished goods | $181 | $168 | ' |
Work in process | 273 | 254 | ' |
Raw materials, parts and supplies | 358 | 343 | ' |
Less progress payments | -8 | -2 | ' |
Total | 804 | 763 | ' |
Pre-production engineering costs | 714 | 569 | ' |
Inventories, net | 1,518 | 1,332 | ' |
Anticipated amortization expense for pre-production engineering costs, 2014 | 39 | ' | ' |
Anticipated amortization expense for pre-production engineering costs, 2015 | 53 | ' | ' |
Anticipated amortization expense for pre-production engineering costs, 2016 | 73 | ' | ' |
Anticipated amortization expense for pre-production engineering costs, 2017 | 84 | ' | ' |
Anticipated amortization expense for pre-production engineering costs, 2018 | 92 | ' | ' |
Anticipated amortization expense for pre-production engineering costs, Thereafter | 373 | ' | ' |
Pre-production Engineering Amortization Expense | 25 | 18 | 15 |
Capitalized Pre-Production Engineering Weighted Average Amortization Period Remaining, In Years | '9 years | ' | ' |
Inventory, Noncurrent | 747 | 607 | ' |
Airbus and Bombardier [Member] | ' | ' | ' |
Inventories, Net | ' | ' | ' |
Pre-production engineering costs | $463 | ' | ' |
Property_Details
Property (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
In Millions, unless otherwise specified | |||
Property | ' | ' | ' |
Property, Total | $1,974 | $1,918 | ' |
Less accumulated depreciation | -1,201 | -1,145 | ' |
Property | 773 | 773 | 754 |
Property additions in accounts payable | 19 | 23 | 21 |
Land [Member] | ' | ' | ' |
Property | ' | ' | ' |
Property, Total | 10 | 10 | ' |
Building and Building Improvements [Member] | ' | ' | ' |
Property | ' | ' | ' |
Property, Total | 388 | 383 | ' |
Machinery and Equipment [Member] | ' | ' | ' |
Property | ' | ' | ' |
Property, Total | 1,066 | 1,045 | ' |
Information Systems Software and Hardware [Member] | ' | ' | ' |
Property | ' | ' | ' |
Property, Total | 344 | 326 | ' |
Furniture and Fixtures [Member] | ' | ' | ' |
Property | ' | ' | ' |
Property, Total | 65 | 66 | ' |
Construction in Progress [Member] | ' | ' | ' |
Property | ' | ' | ' |
Property, Total | $101 | $88 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Goodwill and Intangible Assets | ' | ' | ' | ' |
Assets Held-for-sale, Current | ' | $17 | ' | ' |
Asset Impairment Charges | 11 | ' | 5 | ' |
Goodwill, Impairment Loss | ' | 0 | 0 | 0 |
Intangible Assets, Amortization Expense | ' | 31 | 39 | 36 |
Up-front sales incentives weighted average amortization period remaining, in years | ' | '10 years | ' | ' |
Cost of Sales [Member] | ' | ' | ' | ' |
Goodwill and Intangible Assets | ' | ' | ' | ' |
Asset Impairment Charges | ' | ' | 5 | ' |
Trademarks and tradenames [Member] | ' | ' | ' | ' |
Goodwill and Intangible Assets | ' | ' | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | ' | 0 | 2 | ' |
Assets Held-for-sale, Current | ' | 2 | ' | ' |
Licensing Agreements [Member] | Cost of Sales [Member] | ' | ' | ' | ' |
Goodwill and Intangible Assets | ' | ' | ' | ' |
Asset Impairment Charges | ' | $4 | ' | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Changes in the carrying amount of goodwill) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill | ' | ' |
Goodwill beginning balance | $780 | $780 |
Reclassification of KOSI goodwill to assets held-for-sale | -3 | ' |
Foreign currency translation adjustments | 2 | 0 |
Goodwill ending balance | 779 | 780 |
Government Systems [Member] | ' | ' |
Goodwill | ' | ' |
Goodwill beginning balance | 514 | 514 |
Reclassification of KOSI goodwill to assets held-for-sale | -3 | ' |
Foreign currency translation adjustments | 2 | 0 |
Goodwill ending balance | 513 | 514 |
Commercial Systems [Member] | ' | ' |
Goodwill | ' | ' |
Goodwill beginning balance | 266 | 266 |
Reclassification of KOSI goodwill to assets held-for-sale | 0 | ' |
Foreign currency translation adjustments | 0 | 0 |
Goodwill ending balance | $266 | $266 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Summary of intangible assets) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Intangible Assets | ' | ' |
Accumulated Amortization | ($292) | ($263) |
Finite-lived and Indefinite-lived Intangible Assets, Gross | 580 | 554 |
Net | 288 | 291 |
Developed technology and patents [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross | 222 | 221 |
Accumulated Amortization | -175 | -159 |
Finite-Lived Intangible Assets, Net | 47 | 62 |
Customer relationships: Acquired [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross | 89 | 91 |
Accumulated Amortization | -60 | -57 |
Finite-Lived Intangible Assets, Net | 29 | 34 |
Customer relationships: Up-front sales incentives [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross | 241 | 212 |
Accumulated Amortization | -35 | -26 |
Finite-Lived Intangible Assets, Net | 206 | 186 |
Licensing Agreements [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross | 13 | 13 |
Accumulated Amortization | -8 | -8 |
Finite-Lived Intangible Assets, Net | 5 | 5 |
Trademarks and tradenames [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross | 15 | 15 |
Accumulated Amortization | -14 | -13 |
Finite-Lived Intangible Assets, Net | 1 | 2 |
Trademarks and tradenames [Member] | ' | ' |
Intangible Assets | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $0 | $2 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Expected annual amortization expense for intangible assets) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Anticipated Future Amortization Expense [Abstract] | ' |
Anticipated Amortization Expense, 2014 | $30 |
Anticipated Amortization Expense, 2015 | 33 |
Anticipated Amortization Expense, 2016 | 33 |
Anticipated Amortization Expense, 2017 | 35 |
Anticipated Amortization Expense, 2018 | 30 |
Anticipated Amortization Expense, Thereafter | 127 |
Up-front sales incentives [Member] | ' |
Anticipated Future Amortization Expense [Abstract] | ' |
Anticipated Amortization Expense, 2014 | 11 |
Anticipated Amortization Expense, 2015 | 17 |
Anticipated Amortization Expense, 2016 | 21 |
Anticipated Amortization Expense, 2017 | 23 |
Anticipated Amortization Expense, 2018 | 25 |
Anticipated Amortization Expense, Thereafter | 109 |
Intangible Assets Excluding Up Front Sales Incentives [Member] | ' |
Anticipated Future Amortization Expense [Abstract] | ' |
Anticipated Amortization Expense, 2014 | 19 |
Anticipated Amortization Expense, 2015 | 16 |
Anticipated Amortization Expense, 2016 | 12 |
Anticipated Amortization Expense, 2017 | 12 |
Anticipated Amortization Expense, 2018 | 5 |
Anticipated Amortization Expense, Thereafter | $18 |
Other_Assets_Narrative_Details
Other Assets (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Joint_Venture | |||
Other Assets | ' | ' | ' |
Number of Equity Affiliates | 5 | ' | ' |
Equity Method Investments, Ownership Percentage | 50.00% | ' | ' |
Sales to equity affiliates | $144 | $142 | $102 |
Deferred profit generated from sales to equity affiliates | 1 | 3 | ' |
Exchange And Rental Assets Estimated Useful Life, in Years | '15 years | ' | ' |
Depreciation Expense, Exchange and Rental Assets | $10 | $10 | $11 |
Other_Assets_Summary_of_other_
Other Assets (Summary of other assets) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
In Millions, unless otherwise specified | |||
Other Assets | ' | ' | ' |
Long-term receivables | $32 | $34 | ' |
Investments in equity affiliates | 22 | 19 | 11 |
Exchange and rental assets (net of accumulated depreciation of $91 at September 30, 2013 and $94 at September 30, 2012) | 55 | 51 | ' |
Other | 112 | 124 | ' |
Other Assets | 221 | 228 | ' |
Accumulated depreciation, exchange and rental assets | $91 | $94 | ' |
Debt_Summary_of_shortterm_debt
Debt (Summary of short-term debt and a reconciliation to the carrying amount) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | $16 | $31 |
Short-term debt | 436 | 0 |
Commercial Paper [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Commercial Paper | 235 | 0 |
Unsecured Notes [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Face amount | 200 | 0 |
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | 1 | 0 |
Other Current Assets [Member] | Unsecured Notes [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | $1 | ' |
Debt_Commercial_Paper_Borrowin
Debt (Commercial Paper Borrowings) (Details) (USD $) | 26-May-11 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | Revolving Credit Facility [Member] | Commercial Paper [Member] | Commercial Paper [Member] |
Short-term Debt [Line Items] | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | $850 | $850 | ' |
Maximum Days of Commercial Paper Maturity | ' | '364 days | ' |
Commercial Paper | ' | $235 | $0 |
Short-term Debt, Weighted Average Interest Rate | ' | 0.18% | ' |
Short Term Borrowings Weighted Average Maturity Period | ' | '15 days | ' |
Debt_Existing_Credit_Facilitie
Debt (Existing Credit Facilities) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | 26-May-11 |
In Millions, unless otherwise specified | |||
Revolving Credit Facilities | ' | ' | ' |
Debt Instrument, Fee Amount | $0 | $0 | ' |
Short term Credit Facility [Member] | ' | ' | ' |
Revolving Credit Facilities | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | 57 | ' | ' |
Amount utilized to support commitments in the form of letters of credit | 17 | ' | ' |
Long-term Debt, Gross | 0 | 0 | ' |
Revolving Credit Facility [Member] | ' | ' | ' |
Revolving Credit Facilities | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | 850 |
Maximum debt to total capitalization ratio per the debt covenants | 60.00% | ' | ' |
Debt to total capitalization ratio | 26.00% | ' | ' |
Long-term Debt, Gross | $0 | $0 | ' |
Debt_Future_credit_facilities_
Debt (Future credit facilities not yet in effect) (Details) (USD $) | Sep. 30, 2013 | 26-May-11 |
Revolving Credit Facility [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity, Pending Acquisition | $1,000,000,000 | ' |
Line of credit facility, maximum borrowing capacity | ' | 850,000,000 |
Line of Credit Facility, Maximum Borrowing Capacity, Acquisition Not Consummated | 850,000,000 | ' |
Revolving Credit Facility [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity, Pending Acquisition | $0 | ' |
Debt_Bridge_Credit_Agreement_D
Debt (Bridge Credit Agreement) (Details) (Bridge Loan [Member], USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Bridge Loan [Member] | ' |
Short-term Debt [Line Items] | ' |
Line of credit facility, maximum borrowing capacity | $900 |
Short-term Debt | $0 |
Debt_Current_Portion_of_Long_T
Debt (Current Portion of Long Term Debt) (Details) (Unsecured Notes [Member], USD $) | 1 Months Ended | 2 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2010 | Nov. 20, 2003 |
2013 Notes [Member] | ||
Short-term Debt [Line Items] | ' | ' |
Face amount | ' | $200 |
Interest rate | ' | 4.75% |
Derivative amount of hedged item | ' | $100 |
Derivative basis spread on LIBOR rate | ' | 0.08% |
Debt Instrument, Issuance Date | ' | 20-Nov-03 |
Debt Instrument, Maturity Date, Description | ' | 'December 1, 2013 |
Derivative, Inception Date | ' | 20-Nov-03 |
Derivative, Description of Variable Rate Basis | 'six-month LIBOR | 'six-month LIBOR |
Debt_LongTerm_Debt_Details
Debt (Long-Term Debt) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 2 Months Ended | 1 Months Ended | 7 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jan. 31, 2010 | Nov. 16, 2011 | Jan. 31, 2010 | 6-May-09 |
Unsecured Notes [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | ||||
2021 Notes [Member] | 2019 Notes [Member] | 2019 Notes [Member] | |||||
Long-term Debt | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | $250 | ' | $300 |
Interest rate | ' | ' | ' | ' | 3.10% | ' | 5.25% |
Discount | ' | ' | ' | ' | 1 | ' | 2 |
Issuance cost | ' | ' | ' | ' | 2 | ' | 2 |
Proceeds from Issuance of Unsecured Debt | ' | ' | ' | ' | 247 | ' | 296 |
Derivative amount of hedged item | ' | ' | ' | ' | ' | 150 | ' |
Derivative basis spread on variable rate | ' | ' | ' | ' | ' | 1.24% | ' |
Debt Instrument, Issuance Date | ' | ' | ' | ' | 16-Nov-11 | ' | 6-May-09 |
Debt Instrument, Maturity Date, Description | ' | ' | ' | ' | 'November 15, 2021 | ' | '7/15/2019 |
Derivative, Description of Variable Rate Basis | ' | ' | ' | 'six-month LIBOR | ' | 'six-month LIBOR | ' |
Interest Paid | $28 | $21 | $18 | ' | ' | ' | ' |
Debt_Summary_of_longterm_debt_
Debt (Summary of long-term debt and a reconciliation to the carrying amount) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Long-term Debt | ' | ' |
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | $16 | $31 |
Unsecured Debt | 764 | 779 |
Current portion unsecured debt | 201 | 0 |
Long-term Debt, Net | 563 | 779 |
2021 Notes [Member] | Unsecured Notes [Member] | ' | ' |
Long-term Debt | ' | ' |
Principal amount of notes | 249 | 249 |
2019 Notes [Member] | Unsecured Notes [Member] | ' | ' |
Long-term Debt | ' | ' |
Principal amount of notes | 299 | 299 |
2013 Notes [Member] | Unsecured Notes [Member] | ' | ' |
Long-term Debt | ' | ' |
Principal amount of notes | $200 | $200 |
Retirement_Benefits_Pension_Be
Retirement Benefits (Pension Benefits and Other Retirement Benefits) (Details) | Sep. 30, 2013 |
plan | |
Defined Benefit Plan Disclosure | ' |
Defined Benefit Pension Plans Outside United States | 4 |
Unfunded Defined Benefit Pension Plans Outside United States | 2 |
Retirement age employees are eligible to receive other retirement benefits | 55 |
Years of Service required to receive other retirement benefits | '10 years |
Retirement_Benefits_Components
Retirement Benefits (Components of Expense (Income)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Components of Expense (Income) | ' | ' | ' |
Service cost | $10 | $8 | $8 |
Interest cost | 139 | 153 | 159 |
Expected return on plan assets | -203 | -213 | -212 |
Amortization of prior service credit | -18 | -18 | -19 |
Amortization of net actuarial loss | 79 | 57 | 48 |
Net benefit expense (income) | 7 | -13 | -16 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Components of Expense (Income) | ' | ' | ' |
Service cost | 4 | 4 | 4 |
Interest cost | 8 | 10 | 11 |
Expected return on plan assets | -1 | -1 | -1 |
Amortization of prior service credit | -8 | -6 | -16 |
Amortization of net actuarial loss | 12 | 11 | 12 |
Net benefit expense (income) | $15 | $18 | $10 |
Retirement_Benefits_Funded_Sta
Retirement Benefits (Funded Status and Net Liability) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | ' | ' | ' |
Plan assets at beginning of period | $2,513 | ' | ' |
Pension Contributions | 122 | 126 | 113 |
Plan assets at end of period | 2,793 | 2,513 | ' |
Retirement benefits liability | -1,078 | -1,693 | ' |
Non-U.S. Defined Benefit Pension Plans Ratio | 5.00% | 4.00% | ' |
Defined Benefit Pension Plans, Accumulated Benefit Obligation | 3,644 | 3,952 | ' |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation | ' | ' | ' |
PBO at beginning of period | 3,967 | 3,518 | ' |
Service cost | 10 | 8 | 8 |
Interest cost | 139 | 153 | 159 |
Discount rate change | -319 | 408 | ' |
Actuarial losses (gains) | 19 | 57 | ' |
Plan amendments | 0 | 0 | ' |
Plan participant contributions | 0 | 0 | ' |
Benefits paid | -160 | -175 | ' |
Other | 4 | -2 | ' |
PBO at end of period | 3,660 | 3,967 | 3,518 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | ' | ' | ' |
Plan assets at beginning of period | 2,501 | 2,111 | ' |
Actual return on plan assets | 317 | 437 | ' |
Pension Contributions | 122 | 126 | ' |
Plan participant contributions | 0 | 0 | ' |
Benefits paid | -160 | -175 | ' |
Other | -1 | 2 | ' |
Plan assets at end of period | 2,779 | 2,501 | 2,111 |
Funded status of plans | -881 | -1,466 | ' |
Retirement benefits liability | -879 | -1,461 | ' |
Compensation and benefits liability | -12 | -11 | ' |
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 10 | 6 | ' |
Net liability | -881 | -1,466 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation | ' | ' | ' |
PBO at beginning of period | 254 | 254 | ' |
Service cost | 4 | 4 | 4 |
Interest cost | 8 | 10 | 11 |
Discount rate change | -19 | 25 | ' |
Actuarial losses (gains) | -20 | -7 | ' |
Plan amendments | 1 | -16 | ' |
Plan participant contributions | 5 | 8 | ' |
Benefits paid | -19 | -24 | ' |
Other | 0 | 0 | ' |
PBO at end of period | 214 | 254 | 254 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | ' | ' | ' |
Plan assets at beginning of period | 12 | 9 | ' |
Actual return on plan assets | 1 | 2 | ' |
Pension Contributions | 15 | 17 | ' |
Plan participant contributions | 5 | 8 | ' |
Benefits paid | -19 | -24 | ' |
Other | 0 | 0 | ' |
Plan assets at end of period | 14 | 12 | 9 |
Funded status of plans | -200 | -242 | ' |
Retirement benefits liability | -198 | -231 | ' |
Compensation and benefits liability | -2 | -11 | ' |
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 0 | 0 | ' |
Net liability | ($200) | ($242) | ' |
Retirement_Benefits_Other_Comp
Retirement Benefits (Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure | ' | ' |
Prior service cost | ($22) | ' |
Net actuarial loss | 75 | ' |
Total | 53 | ' |
Pension Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Prior service cost | -12 | ' |
Net actuarial loss | 67 | ' |
Total | 55 | ' |
Pension Plans, Defined Benefit [Member] | Prior Service Cost (Credit) [Member] | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Accumulated Other Comprehensive Loss Balance | -24 | -42 |
Current year prior service cost | 0 | 0 |
Current year net actuarial loss | 0 | 0 |
Amortization of prior service cost | 18 | 18 |
Amortization of actuarial loss | 0 | 0 |
Accumulated Other Comprehensive Loss Balance | -6 | -24 |
Pension Plans, Defined Benefit [Member] | Net Actuarial Loss [Member] | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Accumulated Other Comprehensive Loss Balance | 2,451 | 2,267 |
Current year prior service cost | 0 | 0 |
Current year net actuarial loss | -414 | 241 |
Amortization of prior service cost | 0 | 0 |
Amortization of actuarial loss | -79 | -57 |
Accumulated Other Comprehensive Loss Balance | 1,958 | 2,451 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Prior service cost | -10 | ' |
Net actuarial loss | 8 | ' |
Total | -2 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Prior Service Cost (Credit) [Member] | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Accumulated Other Comprehensive Loss Balance | -27 | -17 |
Current year prior service cost | 1 | -16 |
Current year net actuarial loss | 0 | 0 |
Amortization of prior service cost | 8 | 6 |
Amortization of actuarial loss | 'Â Â | 0 |
Accumulated Other Comprehensive Loss Balance | -18 | -27 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Net Actuarial Loss [Member] | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Accumulated Other Comprehensive Loss Balance | 164 | 157 |
Current year prior service cost | 0 | 0 |
Current year net actuarial loss | -39 | 18 |
Amortization of prior service cost | 0 | 0 |
Amortization of actuarial loss | -12 | -11 |
Accumulated Other Comprehensive Loss Balance | $113 | $164 |
Retirement_Benefits_Actuarial_
Retirement Benefits (Actuarial Assumptions) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||
Defined Benefit Plan Disclosure | ' | ' | ' | ||
Actuarial gains losses amortization threshold | ' | ' | 10.00% | ||
Expected Future Lifetime Of Inactive Participants | ' | '26 years | ' | ||
Pension Contributions | $122 | $126 | $113 | ||
Pension Plans, Defined Benefit [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure | ' | ' | ' | ||
Pension Contributions | 122 | 126 | ' | ||
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure | ' | ' | ' | ||
Discount rate | 4.48% | 3.56% | ' | ||
Discount rate | 3.56% | 4.43% | ' | ||
Expected long-term return on plan assets | 8.25% | 8.75% | ' | ||
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure | ' | ' | ' | ||
Discount rate | 3.93% | 4.08% | ' | ||
Compensation increase rate | 3.45% | 3.46% | ' | ||
Discount rate | 4.08% | 5.57% | ' | ||
Expected long-term return on plan assets | 8.23% | 8.73% | ' | ||
Compensation increase rate | 3.46% | 3.46% | ' | ||
Pension Contributions | 5 | 5 | ' | ||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure | ' | ' | ' | ||
Pension Contributions | 15 | 17 | ' | ||
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure | ' | ' | ' | ||
Discount rate | 4.11% | 3.21% | ' | ||
Discount rate | 3.21% | 4.20% | ' | ||
Expected long-term return on plan assets | 8.25% | 8.75% | ' | ||
Health care cost gross trend rate | 8.50% | [1] | 9.00% | [1] | ' |
Ultimate trend rate | 5.00% | [1] | 5.00% | [1] | ' |
Year that trend reaches ultimate rate | '2019 | [1] | '2019 | [1] | ' |
U.S. Qualified Pension Plan [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure | ' | ' | ' | ||
Pension Contributions | $110 | $113 | ' | ||
[1] | Due to the effect of the fixed Company contribution, increasing or decreasing the health care cost trend rate by one percentage point would not have a significant impact on the Company's cost of providing Other Retirement Benefits. |
Retirement_Benefits_Plan_Asset
Retirement Benefits (Plan Assets) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | Equity Securities [Member] | Equity Securities [Member] | Debt Securities [Member] | Debt Securities [Member] | Alternative Investments [Member] | Alternative Investments [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | Non-U.S. Equity [Member] | Non-U.S. Equity [Member] | Non-U.S. Equity [Member] | Non-U.S. Equity [Member] | Non-U.S. Equity [Member] | Non-U.S. Equity [Member] | Non-U.S. Equity [Member] | Non-U.S. Equity [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | Emerging Market [Member] | Emerging Market [Member] | Emerging Market [Member] | Emerging Market [Member] | Emerging Market [Member] | Emerging Market [Member] | Emerging Market [Member] | Emerging Market [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | U.S. Equity [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | U.S. government [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Mortgage and asset-backed [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | |||||||||||||||||
Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | $2,793 | $2,513 | ' | ' | ' | ' | ' | ' | ' | ' | $2,779 | $2,501 | $2,111 | ' | ' | ' | ' | ' | ' | $1,067 | $1,042 | $821 | $859 | $246 | $183 | $0 | $0 | $749 | $486 | $699 | $438 | $50 | $48 | $0 | $0 | $696 | $545 | $0 | $0 | $696 | $545 | $0 | $0 | $123 | $272 | $41 | $139 | $82 | $133 | $0 | $0 | $49 | $72 | $0 | $0 | $49 | $72 | $0 | $0 | $5 | $3 | $0 | $0 | $5 | $3 | $0 | $0 | $19 | $16 | $0 | $0 | $19 | $16 | $0 | $0 | $60 | $58 | $0 | $0 | $60 | $58 | $0 | $0 | $14 | $12 | $9 | $9 | $8 | $5 | $4 | $0 | $0 | $7 | $6 | $7 | $6 | $0 | $0 | $0 | $0 | $2 | $1 | $0 | $0 | $2 | $1 | $0 | $0 | $3 | $3 | $2 | $2 | $1 | $1 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $2 | $2 | $0 | $0 | $2 | $2 | $0 | $0 |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | ' | ' | 40.00% | ' | 25.00% | ' | 0.00% | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | ' | ' | 70.00% | ' | 60.00% | ' | 0.00% | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations | ' | ' | 65.00% | 61.00% | 32.00% | 36.00% | 0.00% | 0.00% | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Amount of Employer and Related Party Securities Included in Plan Assets | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subtotal Pension Securities At Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,768 | 2,494 | ' | 1,561 | 1,436 | 1,207 | 1,058 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables Related To Investment Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11 | $7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement_Benefits_Contributi
Retirement Benefits (Contributions) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2013 |
Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | U.S. Qualified Pension Plan [Member] | U.S. Qualified Pension Plan [Member] | U.S. Non-qualified Pension Plan [Member] | U.S. Non-qualified Pension Plan [Member] | Foreign Pension Plan, Defined Benefit [Member] | Foreign Pension Plan, Defined Benefit [Member] | Non-U.S. Plans and U.S. Non-Qualified Plan [Member] | Other Postretirement Benefit Plan, Defined Benefit [Member] | Other Postretirement Benefit Plan, Defined Benefit [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | ||||
U.S. Qualified Pension Plan [Member] | U.S. Qualified Pension Plan [Member] | |||||||||||||||
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension Contributions | $122 | $126 | $113 | $122 | $126 | $110 | $113 | $7 | $8 | $5 | $5 | ' | $15 | $17 | $55 | ' |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14 | $16 | ' | ' | $55 |
Retirement_Benefits_Benefit_Pa
Retirement Benefits (Benefit Payments) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Pension Plans, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure | ' |
Defined Benefit Plan, Expected Future Benefit Payments in Year One | $210 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 201 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 206 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 212 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | 218 |
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | 1,148 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure | ' |
Defined Benefit Plan, Expected Future Benefit Payments in Year One | 16 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 16 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 15 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 18 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | 17 |
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | $83 |
Retirement_Benefits_Defined_Co
Retirement Benefits (Defined Contribution Savings Plans and Employee Stock Purchase Plan) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' |
Shares Authorized To Issue Under Defined Contribution Savings Plans | ' | 16.5 | 16.5 | ' | ' |
Authorized Shares Available For Future Contribution Under Defined Contribution Savings Plans | ' | 3.1 | 3.1 | ' | ' |
Defined Contribution Savings Plans Contributions In Shares | ' | ' | 0.7 | 1.1 | 1 |
Defined Contribution Savings Plans Value Of Shares Contributed | ' | ' | $43 | $58 | $57 |
Defined Contribution Savings Plans Cash Retirement Contribution | ' | ' | 39 | 41 | 39 |
Defined Contribution Savings Plan Other Contribution | ' | ' | 3 | 2 | 1 |
Defined Contribution Savings Plan Expense | ' | ' | 85 | 101 | 97 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 75.00% | 50.00% | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | ' | ' | 8.00% | ' | ' |
Percent of fair market value employees can purchase common stock under Employee Stock Purchase Plan | ' | 95.00% | 95.00% | ' | ' |
Employee Stock Purchase Plan Shares Available For Future Grant | ' | 2.9 | 2.9 | ' | ' |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | ' | ' | 0.2 | 0.2 | 0.2 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | ' | ' | $10 | $11 | $11 |
Shareowners_Equity_Details
Shareowners' Equity (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Shareowners' Equity | ' | ' | ' |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | ' |
Common Stock, Par Value | $0.01 | $0.01 | ' |
Preferred Stock, Shares Authorized | 25,000,000 | ' | ' |
Amount of share repurchases | $569 | $723 | $322 |
Number of shares repurchased | 9,800,000 | 13,300,000 | 5,500,000 |
Treasury Stock Repurchase Authorization | 411 | ' | ' |
Treasury Share Repurchases Included In Accounts Payable | 0 | 16 | 0 |
Unamortized pension and other retirement benefits (net of taxes of $754 for 2013; $945 for 2012 and $872 for 2011) | -1,293 | -1,619 | -1,493 |
Foreign currency translation adjustment | 12 | 10 | -3 |
Foreign currency cash flow hedge adjustment | -6 | 2 | -1 |
Accumulated other comprehensive loss | -1,287 | -1,607 | -1,497 |
Unamortized pension and other retirement benefits income tax expense | $754 | $945 | $872 |
StockBased_Compensation_and_Ea2
Stock-Based Compensation and Earnings Per Share (Narrative) (Details) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
years | |
Stock-Based Compensation | ' |
Shares Of Common Stock May Be Issued Under 2006 Long Term Incentives Plan | 17.5 |
Shares Available For Future Grant Or Payment Under 2006 Long Term Incentives Plan | 6.5 |
Shares Of Common Stock May Be Issued Under 2001 Long Term Incentives Plan And Directors Stock Plan | 14.3 |
Shares Available For Future Grant Or Payment Under 2001 Long Term Incentives Plan And Directors Stock Plan | 0.1 |
Stock Option Expiration | 10 |
Stock Option Vesting | 3 |
Performance Shares And Restricted Stock Cliff Vesting | 3 |
StockBased_Compensation_and_Ea3
Stock-Based Compensation and Earnings Per Share (Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Stock-Based Compensation | ' | ' | ' |
Stock-based compensation expense | $20 | $24 | $24 |
Income tax benefit | 7 | 8 | 8 |
Employee Share Based Compensation Allocation Of Recognized Expense Cost Of Sales [Member] | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Stock-based compensation expense | 6 | 7 | 7 |
Employee Service Share Based Compensation Allocation Of Recognized Expense Selling General and Administrative [Member] | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Stock-based compensation expense | $14 | $17 | $17 |
StockBased_Compensation_and_Ea4
Stock-Based Compensation and Earnings Per Share (General Option Information) (Details) (USD $) | 12 Months Ended | |||||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ' | ' | ' | |||
Options, Outstanding at September 30, 2011 (Shares) | 5,520 | ' | ' | |||
Options, Granted (Shares) | 965 | ' | ' | |||
Options, Exercised (Shares) | -1,623 | ' | ' | |||
Options, Forfeited or expired (Shares) | -218 | ' | ' | |||
Options, Outstanding at September 30, 2012 (Shares) | 4,644 | 5,520 | ' | |||
Options, Vested or expected to vest (Shares) | 4,569 | [1] | ' | ' | ||
Options, Exercisable at September 30, 2013 (Shares) | 3,155 | ' | ' | |||
Options, Outstanding at September 30, 2012 (Weighted Average Exercise Price) | $46.13 | ' | ' | |||
Options, Granted (Weighted Average Exercise Price) | $55.60 | ' | ' | |||
Options, Exercised (Weighted Average Exercise Price) | $38.01 | ' | ' | |||
Options, Forfeited or expired (Weighted Average Exercise Price) | $54.44 | ' | ' | |||
Options, Outstanding at September 30, 2013 (Weighted Average Exercise Price) | $50.55 | $46.13 | ' | |||
Options, Vested or expected to vest (Weighted Average Exercise Price) | $50.46 | [1] | ' | ' | ||
Options, Exercisable at September 30, 2013 (Weighted Average Exercise Price) | $48.15 | ' | ' | |||
Options, Outstanding at September 30, 2013 (Weighted Average Remaining Life) | '5 years 10 months 24 days | ' | ' | |||
Options, Vested or expected to vest (Weighted Average Remaining Life) | '5 years 10 months 24 days | [1] | ' | ' | ||
Options, Exercisable at September 30, 2013 (Weighted Average Remaining Life) | '4 years 8 months 12 days | ' | ' | |||
Options, Outstanding at September 30, 2013 (Aggregate Intrinsic Value) | $86 | ' | ' | |||
Options, Vested or expected to vest (Aggregate Intrinsic Value) | 86 | [1] | ' | ' | ||
Options, Exercisable at September 30, 2013 (Aggregate Intrinsic Value) | 66 | ' | ' | |||
Weighted-average fair value per share of options granted | $12.81 | $13.89 | $14.77 | |||
Intrinsic value of options exercised (in millions) | 43 | [2] | 23 | [2] | 26 | [2] |
Tax deduction resulting from intrinsic value of options exercised (in millions) | 11 | 7 | 8 | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested In Period Total Fair Value | 10 | 10 | 9 | |||
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards | $8 | ' | ' | |||
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards, Weighted Average Period of Recognition | '10 months 24 days | ' | ' | |||
[1] | Represents outstanding options reduced by expected forfeitures | |||||
[2] | Represents the amount by which the stock price exceeded the exercise price of the options on the date of the exercise |
StockBased_Compensation_and_Ea5
Stock-Based Compensation and Earnings Per Share (Stock Option Fair Value Information) (Details) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Options Assumptions | ' | ' | ' |
Risk Free Interest Rate, Minimum | 0.30% | 0.30% | 0.30% |
Risk Free Interest Rate, Maximum | 2.10% | 2.20% | 3.90% |
Expected dividend yield | 2.00% | 1.60% | 1.70% |
Expected volatility | 27.00% | 27.00% | 27.00% |
Expected life | '8 years | '8 years | '8 years |
StockBased_Compensation_and_Ea6
Stock-Based Compensation and Earnings Per Share (Performance Shares, Restricted Shares and Restricted Stock Units) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Maximum Number Of Performance Shares | 451 | 408 | 141 |
Performance Shares [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Nonvested at September 30, 2012 (Shares) | 551 | ' | ' |
Granted (Shares) | 222 | ' | ' |
Vested (Shares) | -177 | ' | ' |
Forfeited (Shares) | -58 | ' | ' |
Nonvested at September 30, 2013 (Shares) | 538 | 551 | ' |
Nonvested at September 30, 2012 (Weighted Average Grant Date Fair Value) | 54.74 | ' | ' |
Granted (Weighted Average Grant Date Fair Value) | 55.69 | 59.08 | 55.91 |
Vested (Weighted Average Grant Date Fair Value) | 53.19 | ' | ' |
Forfeited (Weighted Average Grant Date Fair Value) | 54.69 | ' | ' |
Nonvested at September 30, 2013 (Weighted Average Grant Date Fair Value) | 55.65 | 54.74 | ' |
Total unrecognized compensation costs at September 30, 2013 | 8 | ' | ' |
Weighted average life remaining at September 30, 2013 | '1 year | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Nonvested at September 30, 2012 (Shares) | 56 | ' | ' |
Granted (Shares) | 0 | ' | ' |
Vested (Shares) | -52 | ' | ' |
Forfeited (Shares) | 0 | ' | ' |
Nonvested at September 30, 2013 (Shares) | 4 | 56 | ' |
Nonvested at September 30, 2012 (Weighted Average Grant Date Fair Value) | 52.62 | ' | ' |
Granted (Weighted Average Grant Date Fair Value) | 0 | 0 | 0 |
Vested (Weighted Average Grant Date Fair Value) | 52.95 | ' | ' |
Forfeited (Weighted Average Grant Date Fair Value) | 0 | ' | ' |
Nonvested at September 30, 2013 (Weighted Average Grant Date Fair Value) | 47.87 | 52.62 | ' |
Total unrecognized compensation costs at September 30, 2013 | 0 | ' | ' |
Weighted average life remaining at September 30, 2013 | '0 years | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Nonvested at September 30, 2012 (Shares) | 261 | ' | ' |
Granted (Shares) | 88 | ' | ' |
Vested (Shares) | -30 | ' | ' |
Forfeited (Shares) | -6 | ' | ' |
Nonvested at September 30, 2013 (Shares) | 313 | 261 | ' |
Nonvested at September 30, 2012 (Weighted Average Grant Date Fair Value) | 54.59 | ' | ' |
Granted (Weighted Average Grant Date Fair Value) | 56.04 | 55.41 | 57.82 |
Vested (Weighted Average Grant Date Fair Value) | 53.99 | ' | ' |
Forfeited (Weighted Average Grant Date Fair Value) | 55.25 | ' | ' |
Nonvested at September 30, 2013 (Weighted Average Grant Date Fair Value) | 55.04 | 54.59 | ' |
Total unrecognized compensation costs at September 30, 2013 | 4 | ' | ' |
Weighted average life remaining at September 30, 2013 | '1 year 2 months 12 days | ' | ' |
StockBased_Compensation_and_Ea7
Stock-Based Compensation and Earnings Per Share (Earnings Per Share and Diluted Share Equivalents) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Computation of Basic and Diluted Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | $632 | $609 | $615 |
Income from discontinued operations, net of taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 19 |
Net income | $175 | $164 | $161 | $132 | $152 | $166 | $161 | $130 | $632 | $609 | $634 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Denominator for basic earnings per share - weighted average common shares | ' | ' | ' | ' | ' | ' | ' | ' | 136.5 | 145.3 | 154.2 |
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 1.1 | 1.4 |
Performance shares, restricted shares and restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | 0.4 | 0.5 |
Dilutive potential common shares | ' | ' | ' | ' | ' | ' | ' | ' | 1.6 | 1.5 | 1.9 |
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversion | ' | ' | ' | ' | ' | ' | ' | ' | 138.1 | 146.8 | 156.1 |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | $4.63 | $4.19 | $3.99 |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0.12 |
Basic earnings per share | $1.30 | $1.21 | $1.18 | $0.95 | $1.07 | $1.16 | $1.10 | $0.87 | $4.63 | $4.19 | $4.11 |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | $4.58 | $4.15 | $3.94 |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0.12 |
Diluted earnings per share | $1.28 | $1.20 | $1.17 | $0.94 | $1.06 | $1.14 | $1.09 | $0.86 | $4.58 | $4.15 | $4.06 |
Employee Stock Option [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | 2.2 | 0.3 |
CompanyFunded_Research_and_Dev1
Company-Funded Research and Development (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Company-Funded Research and Development | ' | ' | ' |
Company-funded research and development expense | $295 | $320 | $355 |
Other_Income_Net_Details
Other Income, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Nonoperating Income (Expense) [Abstract] | ' | ' | ' |
Earnings from equity affiliates | ($13) | ($11) | ($13) |
Gain on sale of property | 0 | -5 | 0 |
Interest income | -2 | -3 | -5 |
Royalty income | 3 | 4 | 2 |
Other | 2 | -2 | -8 |
Other income, net | $16 | $25 | $28 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Income Taxes | ' | ' | ' |
Valuation Allowance, Amount | $11 | ' | ' |
U.S. taxable income over the past three years | 1,466 | ' | ' |
Statute of Limitations, Range, Minimum (in years) | '3 years | ' | ' |
Statute of Limitations, Range, Maximum (in years) | '5 years | ' | ' |
Provision for Income Taxes related to Undistributed Earnings of Foreign Subsidiaries | 0 | ' | ' |
Undistributed Earnings Of Foreign Subsidiaries | 427 | ' | ' |
Income tax payments, net | 106 | 208 | 96 |
Unrecognized tax benefits that, if recognized, would impact the effective income tax rate | 34 | 24 | 57 |
Accrued Income tax penalties and interest | 2 | 2 | ' |
Interest and penalties expense (income) | 0 | -4 | 1 |
Accrued Income Taxes | 47 | 5 | ' |
Minimum [Member] | ' | ' | ' |
Income Taxes | ' | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 0 | ' | ' |
Maximum [Member] | ' | ' | ' |
Income Taxes | ' | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $24 | ' | ' |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense from Continuing Operations) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Current: | ' | ' | ' |
U.S. federal | $154 | $118 | $128 |
Non-U.S. | 18 | 22 | 16 |
U.S. state and local | 11 | 3 | 3 |
Total current | 183 | 143 | 147 |
Deferred: | ' | ' | ' |
U.S. federal | 51 | 103 | 83 |
Non-U.S. | -3 | -8 | 0 |
U.S. state and local | 5 | 10 | 10 |
Total deferred | 53 | 105 | 93 |
Income tax expense | $236 | $248 | $240 |
Income_Taxes_Net_Current_Defer
Income Taxes (Net Current Deferred Income Tax Benefits (Liabilities) Temporary Differences) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Income Taxes | ' | ' |
Inventory | ($129) | ($95) |
Product warranty costs | 36 | 38 |
Customer incentives | 50 | 51 |
Contract reserves | 8 | 11 |
Compensation and benefits | 31 | 33 |
Valuation allowance | -1 | -1 |
Other | 22 | 18 |
Current deferred income taxes, net | $17 | $55 |
Income_Taxes_Net_LongTerm_Defe
Income Taxes (Net Long-Term Deferred Income Tax Benefits (Liabilities) Temporary Differences) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Income Taxes | ' | ' |
Retirement benefits | $344 | $554 |
Intangibles | -33 | -42 |
Property | -115 | -121 |
Stock-based compensation | 28 | 30 |
Valuation allowance | -10 | -18 |
Other | 29 | 51 |
Long-term deferred income taxes, net | $243 | $454 |
Income_Taxes_Current_And_LongT
Income Taxes (Current And Long-Term Deferred Income Tax Assets and Liabilities in Statement of Financial Position) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Income Taxes | ' | ' |
Current deferred income taxes | $19 | $58 |
Other current liabilities | -2 | -3 |
Current deferred income taxes, net | 17 | 55 |
Long-term deferred income taxes | 245 | 455 |
Other liabilities | -2 | -1 |
Long-term deferred income taxes, net | $243 | $454 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate and U.S. Statutory Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Income Taxes | ' | ' | ' |
Statutory tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes | 1.30% | 1.30% | 1.10% |
Research and development credit | -5.10% | -1.70% | -4.70% |
Domestic manufacturing deduction | -2.00% | -2.10% | -1.90% |
Tax settlements | -0.10% | -2.20% | -0.40% |
Other | -1.90% | -1.40% | -1.00% |
Effective income tax rate | 27.20% | 28.90% | 28.10% |
Income_Taxes_Components_of_Inc1
Income Taxes (Components of Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Income Taxes | ' | ' | ' |
U.S. income | $762 | $793 | $778 |
Non-U.S. income | 106 | 64 | 77 |
Total | $868 | $857 | $855 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | ' | ' | ' |
Beginning balance | $42 | $100 | $78 |
Additions for tax positions related to the current year | 15 | 11 | 22 |
Additions for tax positions of prior years | 3 | 0 | 6 |
Reductions for tax positions of prior years | -1 | -54 | -4 |
Reductions for tax positions of prior years related to lapse of statute of limitations | -2 | -2 | -1 |
Reductions for tax positions related to settlements with taxing authorities | -1 | -13 | -1 |
Ending balance | $56 | $42 | $100 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value of Assets and Liabilities Measured on Recurring Basis | ' | ' |
Fair Value Nonfinancial Assets Measured on Nonrecurring Basis | $0 | $0 |
Fair Value Nonfinancial Liabilities Measured on Nonrecurring Basis | 0 | 0 |
Transfers Between Measurement Levels | 0 | 0 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Deferred Compensation Plan Investments [Member] | ' | ' |
Fair Value of Assets and Liabilities Measured on Recurring Basis | ' | ' |
Assets at fair value | 49 | 42 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Starting Interest Rate Swap Liabilities [Member] | ' | ' |
Fair Value of Assets and Liabilities Measured on Recurring Basis | ' | ' |
Assets at fair value | -5 | 0 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Forward Exchange Contract [Member] | ' | ' |
Fair Value of Assets and Liabilities Measured on Recurring Basis | ' | ' |
Liabilities at fair value | 6 | 5 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swap Assets [Member] | ' | ' |
Fair Value of Assets and Liabilities Measured on Recurring Basis | ' | ' |
Assets at fair value | 16 | 31 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Forward Exchange Contract [Member] | ' | ' |
Fair Value of Assets and Liabilities Measured on Recurring Basis | ' | ' |
Assets at fair value | $6 | $7 |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Amounts and Fair Values of Financial Instruments) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 |
In Millions, unless otherwise specified | ||||
Carrying Amounts and Fair Value of Financial Instruments | ' | ' | ' | ' |
Cash and cash equivalents | $391 | $335 | $530 | $435 |
Short-term debt | -436 | 0 | ' | ' |
Long-term debt | -563 | -779 | ' | ' |
Carrying Amount [Member] | ' | ' | ' | ' |
Carrying Amounts and Fair Value of Financial Instruments | ' | ' | ' | ' |
Cash and cash equivalents | 391 | 335 | ' | ' |
Short-term debt | -200 | 0 | ' | ' |
Commercial Paper | -235 | 0 | ' | ' |
Long-term debt | -548 | -748 | ' | ' |
Fair Value [Member] | ' | ' | ' | ' |
Carrying Amounts and Fair Value of Financial Instruments | ' | ' | ' | ' |
Cash and cash equivalents | 391 | 335 | ' | ' |
Short-term debt | -201 | 0 | ' | ' |
Commercial Paper | -235 | 0 | ' | ' |
Long-term debt | ($586) | ($837) | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 2 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2010 | Sep. 30, 2013 | Jan. 31, 2010 | Nov. 20, 2003 | Nov. 20, 2003 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Nov. 20, 2003 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2013 |
Other Current Assets [Member] | Other Current Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Current Liabilities [Member] | Other Current Liabilities [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | Unsecured Notes [Member] | Forward Starting Interest Rate Swap [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Other Assets [Member] | 2019 Notes [Member] | 2013 Notes [Member] | Other Current Assets [Member] | 2013 Notes [Member] | Forward Starting Interest Rate Swap [Member] | |||||||||||||||||
Derivative Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Net Liability Position, Aggregate Fair Value | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Inception Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20-Nov-03 | 20-Nov-03 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Swap expiration date | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jul-19 | ' | ' | ' | 1-Dec-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative amount of hedged item | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 | 100 | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'six-month LIBOR | ' | 'six-month LIBOR | 'six-month LIBOR | 'six-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1.24% | ' | ' | ' | ' | ' | 0.08% | ' | ' | ' | ' | ' |
Interest rate swap assets | ' | ' | 1 | 0 | 15 | 31 | ' | ' | ' | 15 | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | 16 | 31 | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | 1 | 0 | 1 | ' | ' | ' | ' | ' | ' |
Derivative, Lower Fixed Interest Rate Range | 3.04% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.82% | ' |
Derivative, Higher Fixed Interest Rate Range | 3.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.70% | ' |
Derivative Liability, Fair Value, Gross Liability | 11 | 5 | ' | ' | ' | ' | 5 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of foreign currency derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 | 482 | 393 | ' | 300 |
Foreign currency forward exchange contract assets | ' | ' | 6 | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) recognized when a hedged firm commitment no longer qualified as a fair value hedge or when a hedged forecasted transaction no longer qualified as a cash flow hedge | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of cash flow hedge gain (loss) to be reclassified into earnings over next 12 months | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum duration of a foreign currency cash flow hedge contract in months | '82 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Fair Values of Derivative Instruments) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Derivative Financial Instruments | ' | ' |
Total | $22 | $38 |
Derivative Liability, Fair Value, Gross Liability | 11 | 5 |
Other Current Assets [Member] | ' | ' |
Derivative Financial Instruments | ' | ' |
Foreign currency forward exchange contracts | 6 | 7 |
Interest rate swaps | 1 | 0 |
Other Assets [Member] | ' | ' |
Derivative Financial Instruments | ' | ' |
Interest rate swaps | 15 | 31 |
Other Current Liabilities [Member] | ' | ' |
Derivative Financial Instruments | ' | ' |
Foreign currency forward exchange contracts | 6 | 5 |
Derivative Liability, Fair Value, Gross Liability | $5 | $0 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Effect of Derivative Instruments) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cost of Sales [Member] | ' | ' |
Derivative Financial Instruments | ' | ' |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $0 | $1 |
Fair Value Hedging [Member] | Cost of Sales [Member] | ' | ' |
Derivative Financial Instruments | ' | ' |
Gain (loss) recognized from foreign currency forward exchange contracts | 2 | -3 |
Fair Value Hedging [Member] | Interest Expense [Member] | ' | ' |
Derivative Financial Instruments | ' | ' |
Gain (loss) recognized from interest rate swaps | 10 | 9 |
Cash Flow Hedging [Member] | Cost of Sales [Member] | ' | ' |
Derivative Financial Instruments | ' | ' |
Amount of gain (loss) reclassified from AOCL into income | 0 | -1 |
Cash Flow Hedging [Member] | AOCL [Member] | ' | ' |
Derivative Financial Instruments | ' | ' |
Amount of gain (loss) recognized in AOCL (effective portion, before deferred tax impact) | -5 | 2 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | ($5) | $0 |
Guarantees_and_Indemnification2
Guarantees and Indemnifications (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Guarantees and Indemnifications | ' | ' | ' |
Balance at beginning of year | $126 | $148 | $183 |
Warranty costs incurred | -46 | -47 | -52 |
Product warranty accrual | 48 | 46 | 34 |
Changes in estimates for prior years | -7 | -21 | -20 |
Foreign currency translation adjustments | 0 | 0 | 3 |
Balance at September 30 | 121 | 126 | 148 |
Equity Method Investments, Ownership Percentage | 50.00% | ' | ' |
Outstanding letters of credit | 90 | ' | ' |
Quest Guarantee [Member] | ' | ' | ' |
Guarantees and Indemnifications | ' | ' | ' |
Equity Method Investments, Ownership Percentage | 50.00% | ' | ' |
Quest performance guarantee | 2 | ' | ' |
Outstanding Quest loan balance | $4 | ' | ' |
Contractual_Obligations_and_Ot2
Contractual Obligations and Other Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Contractual Obligations and Other Commitments | ' | ' | ' |
Non-cancelable operating leases, payments due in 2014 | $64 | ' | ' |
Non-cancelable operating leases, payments due in 2015 | 45 | ' | ' |
Non-cancelable operating leases, payments due in 2016 | 24 | ' | ' |
Non-cancelable operating leases, payments due in 2017 | 18 | ' | ' |
Non-cancelable operating leases, payments due in 2018 | 14 | ' | ' |
Non-cancelable operating leases, payments due after 2018 | 22 | ' | ' |
Non-cancelable operating leases, total payments due | 187 | ' | ' |
Purchase contracts, payments due in 2014 | 40 | ' | ' |
Purchase contracts, payments due in 2015 | 28 | ' | ' |
Purchase contracts, payments due in 2016 | 16 | ' | ' |
Purchase contracts, payments due in 2017 | 3 | ' | ' |
Purchase contracts, payments due in 2018 | 2 | ' | ' |
Purchase contracts, payments due after 2018 | 5 | ' | ' |
Purchase contracts, total payments due | 94 | ' | ' |
Long-term debt, payments due in 2014 | 0 | ' | ' |
Long-term debt, payments due in 2015 | 0 | ' | ' |
Long-term debt, payments due in 2016 | 0 | ' | ' |
Long-term debt, payments due in 2017 | 0 | ' | ' |
Long-term debt, payments due in 2018 | 0 | ' | ' |
Long-term debt, payments due after 2018 | 550 | ' | ' |
Long-term debt, total payments due | 550 | ' | ' |
Interest on long-term debt, payments due in 2014 | 24 | ' | ' |
Interest on long-term debt, payments due in 2015 | 23 | ' | ' |
Interest on long-term debt, payments due in 2016 | 24 | ' | ' |
Interest on long-term debt, payments due in 2017 | 23 | ' | ' |
Interest on long-term debt, payments due in 2018 | 23 | ' | ' |
Interest on long-term debt, payments due after 2018 | 43 | ' | ' |
Interest on long-term debt, total payments due | 160 | ' | ' |
Non-cancelable commitments, total payments due in 2014 | 128 | ' | ' |
Non-cancelable commitments, total payments due in 2015 | 96 | ' | ' |
Non-cancelable commitments, total payments due in 2016 | 64 | ' | ' |
Non-cancelable commitments, total payments due in 2017 | 44 | ' | ' |
Non-cancelable commitments, total payments due in 2018 | 39 | ' | ' |
Non-cancelable commitments, total payments due after 2018 | 620 | ' | ' |
Non-cancelable commitments, total payments due | 991 | ' | ' |
Rent Expense | 67 | 72 | 71 |
Amounts purchased under purchase contracts | $45 | $43 | $42 |
Environmental_Matters_Details
Environmental Matters (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | Site |
Environmental Matters | ' |
Number of Sites Involved in Investigation | 10 |
Environmental Loss Contingency Number of Sites Where Reasonably Possible Future Costs is Insignificant | 9 |
Site contingency reasonably possible future costs | $12 |
Accrual for environmental loss contingencies | $6 |
Restructuring_and_Asset_Impair2
Restructuring and Asset Impairment Charges (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Restructuring and Asset Impairment Charges [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Benefit From Resolution of Certain Tax Matters | ' | ' | ' | $19 | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | 1,252 | 1,165 | 1,131 | 1,062 | 1,266 | 1,205 | 1,161 | 1,094 | 4,610 | 4,726 | 4,806 |
Restructuring and Asset Impairment Charges, Net of Taxes | ' | 23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee separation costs | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' |
Asset Impairment Charges | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
Restructuring and Asset Impairment Charges, Total | ' | 34 | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' |
Provision For Doubtful Accounts, Net of Taxes | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for Doubtful Accounts | ' | 23 | ' | ' | ' | ' | ' | ' | ' | ' | 23 | ' |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -5 | 0 |
Restructuring and Asset Impairment Charges, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 58 | 27 |
Total restructuring and asset impairment charges | 27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination charges | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross profit | ' | 377 | 370 | 327 | 312 | 372 | 359 | 351 | 320 | 1,386 | 1,402 | ' |
Employee Severance [Member] | 2012 Restructuring [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Asset Impairment Charges [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve, Settled with Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | 4 | ' |
Restructuring Reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' |
Contract Termination [Member] | September 2011 Restructuring [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Asset Impairment Charges [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve, Settled with Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Restructuring Reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Cost of Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Asset Impairment Charges [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee separation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33 | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
Restructuring and Asset Impairment Charges, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38 | ' |
Provision for Doubtful Accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Restructuring and Asset Impairment Charges, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38 | ' |
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Asset Impairment Charges [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee separation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Restructuring and Asset Impairment Charges, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Provision for Doubtful Accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23 | ' |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Restructuring and Asset Impairment Charges, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' |
Other Income, Net [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Asset Impairment Charges [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee separation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Restructuring and Asset Impairment Charges, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Provision for Doubtful Accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5 | ' |
Restructuring and Asset Impairment Charges, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5 | ' |
Licensing Agreements [Member] | Cost of Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Asset Impairment Charges [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Corporate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Asset Impairment Charges [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for Doubtful Accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23 | ' |
Business_Segment_Information_N
Business Segment Information (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Business Segment Information | ' | ' | ' |
Restructuring and Asset Impairment Charges, Net | $0 | $58 | $27 |
Percent of Total Sales To U.S. Government | 37.00% | 38.00% | 43.00% |
Business_Segment_Information_S
Business Segment Information (Sales and Results of Operations of Reportable Segments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | $1,252 | $1,165 | $1,131 | $1,062 | $1,266 | $1,205 | $1,161 | $1,094 | $4,610 | $4,726 | $4,806 |
Total segment operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | 976 | 1,008 | 973 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -28 | -27 | -19 |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | -20 | -24 | -24 |
General corporate, net | ' | ' | ' | ' | ' | ' | ' | ' | -60 | -42 | -48 |
Restructuring and Asset Impairment Charges, Net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 58 | 27 |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 868 | 857 | 855 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -236 | -248 | -240 |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 632 | 609 | 615 |
Government Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,395 | 2,591 | 2,813 |
Total segment operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | 499 | 568 | 592 |
Commercial Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,215 | 2,135 | 1,993 |
Total segment operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | $477 | $440 | $381 |
Business_Segment_Information_I
Business Segment Information (Identifiable Assets and Investments in Equity Affiliates) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Business Segment Information | ' | ' | ' |
Total identifiable assets | $5,400 | $5,314 | $5,389 |
Total investments in equity affiliates | 22 | 19 | 11 |
Total depreciation and amortization | 180 | 174 | 159 |
Total capital expenditures for property | 120 | 138 | 152 |
Total earnings from equity affiliates | 13 | 11 | 13 |
Government Systems [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Total identifiable assets | 2,174 | 2,113 | 2,139 |
Total investments in equity affiliates | 22 | 19 | 11 |
Total depreciation and amortization | 84 | 87 | 76 |
Total capital expenditures for property | 62 | 76 | 81 |
Total earnings from equity affiliates | 13 | 11 | 13 |
Commercial Systems [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Total identifiable assets | 2,465 | 2,233 | 2,110 |
Total investments in equity affiliates | 0 | 0 | 0 |
Total depreciation and amortization | 96 | 87 | 83 |
Total capital expenditures for property | 58 | 62 | 71 |
Total earnings from equity affiliates | 0 | 0 | 0 |
Corporate Segment [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Total identifiable assets | $761 | $968 | $1,140 |
Business_Segment_Information_S1
Business Segment Information (Summary of Sales by Product Category) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | $1,252 | $1,165 | $1,131 | $1,062 | $1,266 | $1,205 | $1,161 | $1,094 | $4,610 | $4,726 | $4,806 |
Government Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,395 | 2,591 | 2,813 |
Commercial Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,215 | 2,135 | 1,993 |
Foreign Military [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 184 | 162 | 114 |
Wide-Body In-Flight Entertainment Products and Services [Member] | Commercial Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 83 | 91 | 119 |
Avionics [Member] | Government Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,384 | 1,476 | 1,434 |
Communication products [Member] | Government Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 586 | 652 | 698 |
Surface Solutions [Member] | Government Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 232 | 226 | 377 |
Navigation Products [Member] | Government Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 193 | 237 | 304 |
Air Transport Aviation Electronics [Member] | Commercial Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,183 | 1,139 | 1,049 |
Business And Regional Aviation Electronics [Member] | Commercial Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | $1,032 | $996 | $944 |
Business_Segment_Information_S2
Business Segment Information (Sales and Property by Geographic Region) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Revenues from External Customers and Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total sales | $1,252 | $1,165 | $1,131 | $1,062 | $1,266 | $1,205 | $1,161 | $1,094 | $4,610 | $4,726 | $4,806 | |||
Property | 773 | ' | ' | ' | 754 | ' | ' | ' | 773 | 773 | 754 | |||
U.S. [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,946 | [1] | 3,169 | [1] | 3,356 | [1] |
Property | 680 | ' | ' | ' | 658 | ' | ' | ' | 679 | 680 | 658 | |||
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 787 | 816 | 848 | |||
Property | 72 | ' | ' | ' | 77 | ' | ' | ' | 75 | 72 | 77 | |||
Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 371 | 326 | 267 | |||
Property | 15 | ' | ' | ' | 12 | ' | ' | ' | 14 | 15 | 12 | |||
Canada [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 322 | 287 | 241 | |||
Property | 1 | ' | ' | ' | 1 | ' | ' | ' | 1 | 1 | 1 | |||
Africa / Middle East [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 99 | 65 | 54 | |||
Property | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 | |||
Latin America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 85 | 63 | 40 | |||
Property | 5 | ' | ' | ' | 6 | ' | ' | ' | 4 | 5 | 6 | |||
International [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,664 | 1,557 | 1,450 | |||
Property | 93 | ' | ' | ' | 96 | ' | ' | ' | 94 | 93 | 96 | |||
Foreign Military [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | $184 | $162 | $114 | |||
[1] | (1) For the years ended SeptemberB 30, 2013, 2012, and 2011, U.S. sales include revenue from foreign military sales of $184 million, $162 million, and $114 million, respectively. |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Sales | ' | $1,252 | $1,165 | $1,131 | $1,062 | $1,266 | $1,205 | $1,161 | $1,094 | $4,610 | $4,726 | $4,806 |
Gross profit | ' | 377 | 370 | 327 | 312 | 372 | 359 | 351 | 320 | 1,386 | 1,402 | ' |
Net income | ' | 175 | 164 | 161 | 132 | 152 | 166 | 161 | 130 | 632 | 609 | 634 |
Basic Earnings per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share | ' | $1.30 | $1.21 | $1.18 | $0.95 | $1.07 | $1.16 | $1.10 | $0.87 | $4.63 | $4.19 | $4.11 |
Diluted Earnings per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share | ' | $1.28 | $1.20 | $1.17 | $0.94 | $1.06 | $1.14 | $1.09 | $0.86 | $4.58 | $4.15 | $4.06 |
Tax Benefit from Retroactive Reinstatement of Federal Research and Development Tax Credit | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Benefit From Resolution of Certain Tax Matters | ' | ' | ' | 19 | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Asset Impairment Charges, Net of Taxes | ' | 23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Asset Impairment Charges, Pre-tax | ' | 34 | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' |
Provision For Doubtful Accounts, Net of Taxes | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for Doubtful Accounts, Pre-tax | ' | $23 | ' | ' | ' | ' | ' | ' | ' | ' | $23 | ' |