WESTROCK CO, 10-Q filed on 2/7/2018
Quarterly Report
Document and Entity Information Document
3 Months Ended
Dec. 31, 2017
Jan. 26, 2018
Entity Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Dec. 31, 2017 
 
Document Fiscal Year Focus
2018 
 
Document Fiscal Period Focus
Q1 
 
Trading Symbol
WRK 
 
Entity Registrant Name
WestRock CO 
 
Entity Central Index Key
0001636023 
 
Current Fiscal Year End Date
--09-30 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
255,127,173 
Condensed Consolidated Statements of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Net sales
$ 3,894.0 
$ 3,447.2 
Cost of goods sold
3,111.6 
2,855.9 
Selling, general and administrative, excluding intangible amortization
366.2 
336.3 
Selling, general and administrative intangible amortization
72.5 
52.6 
Multiemployer pension withdrawal
180.0 
0 
Land and Development impairment
27.6 
0 
Restructuring and other costs
16.3 
81.0 
Operating profit
119.8 
121.4 
Interest expense, net
(64.8)
(54.1)
Loss on extinguishment of debt
(1.0)
0 
Other income, net
2.5 
1.1 
Equity in income of unconsolidated entities
3.8 
13.7 
Income before income taxes
60.3 
82.1 
Income tax benefit (expense)
1,073.2 
(3.6)
Consolidated net income
1,133.5 
78.5 
Less: Net loss attributable to noncontrolling interests
1.6 
2.4 
Net income attributable to common stockholders
$ 1,135.1 
$ 80.9 
Basic earnings per share attributable to common stockholders
$ 4.45 
$ 0.32 
Diluted earnings per share attributable to common stockholders
$ 4.38 
$ 0.32 
Basic weighted average shares outstanding
255.0 
251.2 
Diluted weighted average shares outstanding
259.2 
255.3 
Cash dividends paid per common share
$ 0.43 
$ 0.40 
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Consolidated net income
$ 1,133.5 
$ 78.5 
Foreign currency:
 
 
Foreign currency translation loss
(41.9)
(110.7)
Derivatives:
 
 
Deferred (loss) gain on cash flow hedges
(0.1)
0.1 
Reclassification adjustment of net loss on cash flow hedges included in earnings
0.5 
0 
Unrealized gain on available for sale security
0.8 
0 
Defined benefit pension plans:
 
 
Net actuarial loss arising during the period
0 
(10.2)
Amortization and settlement recognition of net actuarial loss, included in pension cost
3.3 
4.4 
Prior service cost arising during the period
(2.7)
0 
Amortization and curtailment recognition of prior service cost, included in pension cost
0 
0.2 
Other comprehensive loss, net of tax
(40.1)
(116.2)
Comprehensive income (loss)
1,093.4 
(37.7)
Less: Comprehensive loss attributable to noncontrolling interests
1.4 
2.9 
Comprehensive income (loss) attributable to common stockholders
$ 1,094.8 
$ (34.8)
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Current assets:
 
 
Cash and cash equivalents
$ 306.4 
$ 298.1 
Restricted cash
5.9 
5.9 
Accounts receivable (net of allowances of $45.9 and $45.8)
1,804.3 
1,886.8 
Inventories
1,869.2 
1,797.3 
Other current assets
317.0 
329.2 
Assets held for sale
162.4 
173.6 
Total current assets
4,465.2 
4,490.9 
Property, plant and equipment, net
9,063.9 
9,118.3 
Goodwill
5,524.8 
5,528.3 
Intangibles, net
3,268.6 
3,329.3 
Restricted assets held by special purpose entities
1,285.9 
1,287.4 
Prepaid pension asset
384.8 
368.0 
Other assets
1,143.7 
966.8 
Assets
25,136.9 
25,089.0 
Current liabilities:
 
 
Current portion of debt
1,244.6 
608.7 
Accounts payable
1,402.3 
1,492.1 
Accrued compensation and benefits
314.3 
416.7 
Other current liabilities
526.1 
492.3 
Total current liabilities
3,487.3 
3,009.8 
Long-term debt due after one year
5,365.8 
5,946.1 
Pension liabilities, net of current portion
271.6 
279.4 
Postretirement benefit liabilities, net of current portion
151.4 
153.4 
Non-recourse liabilities held by special purpose entities
1,159.8 
1,161.9 
Deferred income taxes
2,278.0 
3,410.2 
Other long-term liabilities
1,025.0 
737.4 
Commitments and contingencies (Note 12)
   
   
Redeemable noncontrolling interests
4.4 
4.7 
Equity:
 
 
Preferred stock, $0.01 par value; 30.0 million shares authorized; no shares outstanding
0 
0 
Common Stock, $0.01 par value; 600.0 million shares authorized; 254.9 million and 254.5 million shares outstanding at December 31, 2017 and September 30, 2017, respectively
2.5 
2.5 
Capital in excess of par value
10,651.7 
10,624.9 
Retained earnings
1,196.8 
172.4 
Accumulated other comprehensive loss
(497.6)1
(457.3)1
Total stockholders’ equity
11,353.4 
10,342.5 
Noncontrolling interests
40.2 
43.6 
Total equity
11,393.6 
10,386.1 
Liabilities and Equity
$ 25,136.9 
$ 25,089.0 
Condensed Consolidated Balance Sheets (Parentheticals) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Allowance for Doubtful Accounts Receivable, Current
$ 45.9 
$ 45.8 
Preferred Stock, Par or Stated Value Per Share
$ 0.01 
$ 0.01 
Preferred Stock, Shares Authorized
30,000,000 
30,000,000 
Preferred Stock, Shares Outstanding
0 
0 
Common Stock, Par or Stated Value Per Share
$ 0.01 
$ 0.01 
Common Stock, Shares Authorized
600,000,000 
600,000,000 
Common Stock, Shares, Outstanding
254,900,000 
254,500,000 
Condensed Consolidated Statement of Equity Statement (USD $)
In Millions
Total
USD ($)
Common Stock [Member]
USD ($)
Additional Paid-in Capital [Member]
USD ($)
Retained Earnings [Member]
USD ($)
Accumulated Other Comprehensive Income (Loss) [Member]
USD ($)
Parent [Member]
USD ($)
Noncontrolling Interest [Member]
USD ($)
Common Stock [Member]
Balance at beginning of period at Sep. 30, 2017
$ 10,386.1 
$ 2.5 
$ 10,624.9 
$ 172.4 
$ (457.3)
$ 10,342.5 
$ 43.6 1
 
Balance at beginning of period at Sep. 30, 2017
254.5 
 
 
 
 
 
 
254.5 
Net income attributable to common stockholders
1,134.0 
 
 
1,135.1 
 
1,135.1 
(1.1)1
 
Other comprehensive income, net of tax
(40.3)
 
 
 
(40.3)
(40.3)
 
 
Compensation expense under share-based plans
14.3 
 
14.3 
 
 
14.3 
 
 
Cash dividends declared (per share - $0.43)2
(110.7)
 
 
(110.7)
 
(110.7)
 
 
Distributions and Adjustments to Nonredeemable Noncontrolling Interests
(2.3)
 
 
 
 
 
(2.3)1
 
Issuance of common stock, net of stock received for minimum tax withholdings
12.5 
 
12.5 
 
 
12.5 
 
 
Stock Issued During Period, Issuance of Common Stock Net of Stock Received for Minimum Tax Withholdings
 
 
 
 
 
 
 
0.4 
Balance at end of period at Dec. 31, 2017
$ 11,393.6 
$ 2.5 
$ 10,651.7 
$ 1,196.8 
$ (497.6)
$ 11,353.4 
$ 40.2 1
 
Balance at end of period at Dec. 31, 2017
254.9 
 
 
 
 
 
 
254.9 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Operating activities:
 
 
Consolidated net income
$ 1,133.5 
$ 78.5 
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
 
 
Depreciation, depletion and amortization
307.7 
275.2 
Cost of real estate sold
7.6 
51.3 
Deferred income tax benefit
(1,234.6)
(18.8)
Share-based compensation expense
14.6 
17.1 
Loss on extinguishment of debt
1.0 
0 
Loss (gain) on disposal of plant, equipment and other, net
1.5 
(0.4)
Equity in income of unconsolidated entities
(3.8)
(13.7)
Pension and other postretirement funding (more) than expense (income)
(23.9)
(17.0)
Multiemployer pension withdrawal
180.0 
0 
Gain on sale or deconsolidation of subsidiaries
(0.3)
0 
Cash surrender value increase in excess of premiums paid
(11.5)
(6.3)
Distributed earnings from equity investments
0.1 
8.6 
Other non-cash items
(10.0)
(13.4)
Land and Development impairment
27.6 
0 
Impairment adjustments
6.4 
38.1 
Change in operating assets and liabilities, net of acquisitions and divestitures:
 
 
Accounts receivable
81.9 
53.8 
Inventories
(74.0)
(45.3)
Other assets
9.2 
(16.0)
Accounts payable
(89.4)
166.5 
Income taxes
118.2 
(2.9)
Accrued liabilities and other
(78.3)
(37.9)
Net cash provided by operating activities
363.5 
517.4 
Investing activities:
 
 
Capital expenditures
(214.1)
(176.1)
Cash received for purchase of businesses, net of cash acquired
3.4 
3.5 
Corporate-owned life insurance premium paid
0 
(0.7)
Investment in unconsolidated entities
(110.7)
(1.4)
Return of capital from unconsolidated entities
0.6 
9.5 
Proceeds from sale of property, plant and equipment
12.1 
4.7 
Net cash used for investing activities
(308.7)
(160.5)
Financing activities:
 
 
Additions to revolving credit facilities
87.6 
3.4 
Additions to debt
475.3 
0.6 
Repayments of debt
(1,050.6)
(5.5)
Changes in commercial paper, net
554.7 
0 
Other financing repayments, net
(13.5)
(10.6)
Issuances of common stock, net of related minimum tax withholdings
11.4 
9.2 
Purchases of common stock
0 
(68.0)
Excess tax benefits from share-based compensation
0 
0.7 
Advances from unconsolidated entity
0.7 
1.0 
Cash dividends paid to shareholders
(109.6)
(100.4)
Cash distributions paid to noncontrolling interests
(1.5)
(21.0)
Net cash used for financing activities
(45.5)
(190.6)
Effect of exchange rate changes on cash and cash equivalents
(1.0)
(13.9)
Increase in cash and cash equivalents
8.3 
152.4 
Cash and cash equivalents at beginning of period
298.1 
340.9 
Cash and cash equivalents at end of period
306.4 
493.3 
Supplemental disclosure of cash flow information:
 
 
Income taxes, net of refunds
41.8 
23.5 
Interest, net of amounts capitalized
$ 27.2 
$ 20.5 
General Discussion on Notes to Consolidated Financial Statements
Nature of Operations
Unless the context otherwise requires, “we”, “us”, “our”, “WestRock” and “the Company” refer to the business of WestRock Company, its wholly-owned subsidiaries and its partially-owned consolidated subsidiaries.

We are a multinational provider of paper and packaging solutions for consumer and corrugated packaging markets. We partner with our customers to provide differentiated paper and packaging solutions that help them win in the marketplace. Our team members support customers around the world from operating and business locations spanning North America, South America, Europe, Asia and Australia. We also sell real estate primarily in the Charleston, SC region.
Basis of Presentation and Significant Accounting Policies
Interim Financial Statements
Basis of Presentation and Significant Accounting Policies

Basis of Presentation

Our independent registered public accounting firm has not audited our accompanying interim financial statements. We derived the Condensed Consolidated Balance Sheet at September 30, 2017 from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017 (the “Fiscal 2017 Form 10-K”). In the opinion of our management, the Condensed Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of our statements of income for the three months ended December 31, 2017 and December 31, 2016, our comprehensive income (loss) for the three months ended December 31, 2017 and December 31, 2016, our financial position at December 31, 2017 and September 30, 2017, our cash flows for the three months ended December 31, 2017 and December 31, 2016, and our statement of equity for the three months ended December 31, 2017.

We completed the sale of Home, Health and Beauty (“HH&B”), a former division of our Consumer Packaging segment on April 6, 2017 (the “HH&B Sale”). We used the proceeds from the HH&B Sale in connection with completing the acquisition of Multi Packaging Solutions International Limited (“MPS”) on June 6, 2017 (“MPS Acquisition”). MPS is a global provider of print-based specialty packaging solutions and its differentiated product offering includes premium folding cartons, inserts, labels and rigid packaging. We report MPS in our Consumer Packaging segment. See “Note 8. Assets Held For Sale” and “Note 6. Merger, Acquisitions and Investment” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K for more information.

During the first quarter of fiscal 2018, we presented our interest expense and interest income in a single line item, interest expense, net, in our statements of income. The interest income was previously presented in the line item interest income and other income (expense), net, which is now presented as other income, net. The presentation of these two line items for the three months ended December 31, 2016 has been changed to conform to the current year presentation.

We have condensed or omitted certain notes and other information from the interim financial statements presented in this report. Therefore, these interim financial statements should be read in conjunction with our Fiscal 2017 Form 10-K. The results for the three months ended December 31, 2017 are not necessarily indicative of results that may be expected for the full year.

Significant Accounting Policies

For a summary of our significant accounting policies, see “Note 1. Description of Business and Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K.

Recent Accounting Developments

New Accounting Standards - Recently Adopted

For information on new accounting standards adopted on October 1, 2017, see “Note 1. Description of Business and Summary of Significant Accounting Policies — New Accounting Standards - Recently Adopted” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K. The adoption of those standards did not have a material effect on our consolidated financial statements.

New Accounting Standards - Recently Issued

For information on new accounting standards issued prior to the beginning of fiscal 2018 but not yet adopted and where we do not expect that the adoption will have a material effect on our consolidated financial statements, see “Note 1. Description of Business and Summary of Significant Accounting Policies — New Accounting Standards - Recently Issued” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K. Refer below for new accounting standards for which (i) we are in the process of evaluating the impact on our financial statements, or (ii) we have determined that the new standard could have an impact on our consolidated financial statements.

In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities”. The amendments in this ASU better align an entity’s risk management activities and financial reporting for such activities. The amendments in this ASU make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. In addition, the ASU also expands hedge accounting for certain qualifying financial and nonfinancial risk components. These provisions are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and should be applied prospectively. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU but do not expect this ASU to have a material impact on our consolidated financial position, results of operations or cash flows.

In March 2017, the FASB issued ASU 2017-07, “Compensation: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The guidance in this update requires that an employer disaggregate the service cost component from the other components of net benefit cost. Non-service cost components of net periodic pension cost are required to be presented in the income statement separately from the service cost component and outside the subtotal of operating income. The amendments in the update also allow only the service cost component to be eligible for capitalization for internally developed capital projects. The amendments in this update are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The guidance on the presentation of the components of net periodic benefit cost in the income statement will be applied retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The guidance includes a practical expedient that permits companies to estimate amounts for comparative periods using the information previously disclosed in their pension and other postretirement plan footnote. We are evaluating the impact of this ASU.

In February 2017, the FASB issued ASU 2017-05, “Other Income: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”. The ASU provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. Specifically, the ASU clarifies the scope of an “in substance nonfinancial asset”, clarifies the treatment of partial sales of nonfinancial assets and clarifies guidance on accounting for contributions of nonfinancial assets to joint ventures and equity method investees. The amendments in this update are effective for annual periods beginning after December 15, 2017 including interim reporting periods within those annual reporting periods. Early adoption is permitted. The ASU may be applied by either a full or modified retrospective approach. We are evaluating the impact of this ASU.

In January 2017, the FASB issued ASU 2017-01, “Clarifying the Definition of a Business”, which amends the guidance in ASC 805, “Business Combinations”. The ASU clarifies the definition of a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.
The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods, and early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. Subject to future events or transactions, we do not expect this ASU to have a material impact on our consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, “Restricted Cash”, which amends the guidance in the FASB’s Accounting Standards Codification (“ASC”) 230, “Statement of Cash Flows”. The new ASU clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. These provisions are effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2017, applied retrospectively for each period presented. Early adoption is permitted. We do not expect this ASU to have a material impact on our consolidated financial statements.


In August 2016, the FASB issued ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments”, which amends the guidance in ASC 230, “Statement of Cash Flows”. The ASU clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows for the following transactions: debt prepayment or extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, distributions received from equity method investees and beneficial interest in securitization transactions. The ASU also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The guidance requires retrospective adoption and is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted and an entity that elects early adoption must adopt all of the amendments in the period of adoption. We are evaluating the impact of these provisions.

In February 2016, the FASB issued ASU 2016-02 “Leases”, which is codified in ASC 842 “Leases” and supersedes current lease guidance in ASC 840. These provisions require lessees to put a right-of-use asset and lease liability on their balance sheet for operating and financing leases that have a term of more than one year. Expense will be recognized in the income statement similar to current accounting guidance. For lessors, the ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. Entities will need to disclose qualitative and quantitative information about their leases, including characteristics and amounts recognized in the financial statements. These provisions are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Entities are required to use a modified retrospective approach upon adoption to recognize and measure leases at the beginning of the earliest comparative period presented in the financial statements. While we have not completed our assessment, we expect that the adoption of ASC 842 as of October 1, 2019 will result in recording additional assets and liabilities not previously reflected on our consolidated balance sheets, but we do not expect the adoption to have a significant impact on the recognition, measurement, or presentation of lease expenses within the consolidated statements of income or the consolidated statements of cash flows.

In May 2014, the FASB issued ASU 2014-09, which is codified in ASC 606 “Revenue from Contracts with Customers” and supersedes both the revenue recognition requirement in ASC 605 “Revenue Recognition” and most industry-specific guidance. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the five steps set forth in ASC 606. An entity must also disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which deferred the effective date of ASU 2014-09 by one year. Therefore, these provisions are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that annual period, and can be applied using a full retrospective or modified retrospective approach. The FASB has clarified this guidance in various updates (e.g., ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20 and ASU 2017-05) since May 2014, all of which have the same effective date as the original guidance.

We will adopt the revenue standard as of October 1, 2018 and expect to use the modified retrospective approach. We manufacture certain products that have no alternative use to us (since such products are made to specific customer orders), and we believe for certain customers we have a legally enforceable right to payment for performance completed to date on these manufactured products, including a reasonable profit. For those manufactured products that meet these two criteria, we will recognize revenue “over time” upon the adoption of ASC 606. This could result in (a) revenue recognition prior to the date of shipment or title transfer for these products and (b) an increase in unbilled receivables balances and a reduction in finished goods inventory balances on our balance sheet from historic and current levels. We are continuing to evaluate the impact of the provisions on our financial position, results of operations and cash flows.
Acquisitions
Business Combination Disclosure [Text Block]
Acquisitions and Investment

Other than the acquisition of substantially all of the assets of Plymouth Packaging, Inc. (“Plymouth”) on January 5, 2018 (the “Plymouth Packaging Acquisition”) (see “Note 15. Subsequent Events”), we have not completed any acquisitions in fiscal 2018. We account for acquisitions in accordance with ASC 805, “Business Combinations”. The estimated fair values of all assets acquired and liabilities assumed in acquisitions are provisional and may be revised as a result of additional information obtained during the measurement period of up to one year from the acquisition date. See “Note 6. Merger, Acquisitions and Investment” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K for information about our prior year acquisitions or investment. No changes in the three months ended December 31, 2017 to our fiscal 2017 provisional fair value estimates of assets and liabilities assumed in acquisitions have been significant, and we do not anticipate future changes to these acquisitions to be significant.

Grupo Gondi Investment

On October 20, 2017, we increased our ownership interest in Gondi, S.A. de C.V. (“Grupo Gondi”), our joint venture in Mexico, from 27.0% to 32.3% through a $108 million capital contribution, which followed the joint venture entity having a stock redemption from a minority partner in April 2017. The capital contribution is being used to support the joint venture’s capital expansion plans, which include a greenfield linerboard and corrugated medium (“containerboard”) mill and several converting plants. The joint venture operates paper machines, corrugated packaging and high graphic folding carton facilities across various production sites. The agreement governing our investment in Grupo Gondi continues to include future put and call rights with respect to the respective parties’ ownership interest in the joint venture.
Restructuring and Other Costs, Net
Restructuring and Other Costs, Net
Restructuring and Other Costs    

Summary of Restructuring and Other Initiatives

We recorded pre-tax restructuring and other costs of $16.3 million and $81.0 million for the three months ended December 31, 2017 and December 31, 2016, respectively. These amounts are not comparable since the timing and scope of the individual actions associated with a restructuring, acquisition or integration can vary. We present our restructuring and other costs in more detail below.

The following table summarizes our Restructuring and other costs (in millions):

 
Three Months Ended
 
December 31,
 
2017
 
2016
Restructuring
$
4.4

 
$
62.3

Other
11.9

 
18.7

Restructuring and Other Costs
$
16.3

 
$
81.0



Restructuring

Our restructuring charges are primarily associated with plant closures and employee costs due to merger and acquisition-related workforce reductions. When we close a facility, if necessary, we recognize an impairment charge primarily to reduce the carrying value of equipment or other property to their estimated fair value less cost to sell, and record charges for severance and other employee-related costs. Any subsequent change in fair value less cost to sell prior to disposition is recognized as identified; however, no gain is recognized in excess of the cumulative loss previously recorded unless the actual selling price exceeds the original carrying value when sold. At the time of each announced closure, we generally expect to record future period costs for equipment relocation, facility carrying costs, costs to terminate a lease or contract before the end of its term and employee-related costs.

Although specific circumstances vary, our strategy has generally been to consolidate our sales and operations into large well-equipped plants that operate at high utilization rates and take advantage of available capacity created by operational excellence initiatives and/or further optimize our system following mergers and acquisitions or a changing business environment. Therefore, we have transferred a substantial portion of each closed plant’s assets and production to our other plants. We believe these actions have allowed us to more effectively manage our business.

While restructuring costs are not charged to our segments and, therefore, do not reduce segment income, we highlight the segment to which the charges relate. The following table presents a summary of restructuring charges related to active restructuring initiatives that we incurred during the three months ended December 31, 2017 and December 31, 2016, the cumulative recorded amount since we started the initiative, and our estimate of the total we expect to incur (in millions):


 
Current Quarter

 
Prior Year Quarter
 
Cumulative
 
Total Expected
Corrugated Packaging
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
0.6

 
$
1.4

 
$
209.3

 
$
209.3

Severance and other employee costs
0.8

 
(0.2
)
 
41.4

 
42.9

Equipment and inventory relocation costs
1.4

 
0.4

 
5.4

 
6.1

Facility carrying costs
0.8

 
1.7

 
34.2

 
35.3

Other costs
(0.3
)
 
0.1

 
18.9

 
19.0

Restructuring total
$
3.3

 
$
3.4

 
$
309.2

 
$
312.6

 
 
 
 
 
 
 
 
Consumer Packaging
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
1.0

 
$
19.9

 
$
35.7

 
$
35.7

Severance and other employee costs
(1.6
)
 
8.7

 
32.1

 
32.1

Equipment and inventory relocation costs
0.5

 
0.7

 
5.3

 
6.4

Facility carrying costs
0.4

 
—

 
2.8

 
4.1

Other costs (1)
(0.3
)
 
17.8

 
20.4

 
20.4

Restructuring total
$
—

 
$
47.1

 
$
96.3

 
$
98.7

 
 
 
 
 
 
 
 
Land and Development
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
—

 
$
—

 
$
1.8

 
$
1.8

Severance and other employee costs
0.4

 
0.9

 
13.8

 
14.5

Restructuring total
$
0.4

 
$
0.9

 
$
15.6

 
$
16.3

 
 
 
 
 
 
 
 
Corporate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
—

 
$
—

 
$
1.4

 
$
1.4

Severance and other employee costs
0.2

 
10.5

 
100.1

 
100.1

Other costs
0.5

 
0.4

 
11.2

 
11.2

Restructuring total
$
0.7

 
$
10.9

 
$
112.7

 
$
112.7

 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
1.6

 
$
21.3

 
$
248.2

 
$
248.2

Severance and other employee costs
(0.2
)
 
19.9

 
187.4

 
189.6

Equipment and inventory relocation costs
1.9

 
1.1

 
10.7

 
12.5

Facility carrying costs
1.2

 
1.7

 
37.0

 
39.4

Other costs
(0.1
)
 
18.3

 
50.5

 
50.6

Restructuring total
$
4.4

 
$
62.3

 
$
533.8

 
$
540.3


(1) 
Includes a $17.6 million impairment of a customer relationship intangible in the three months ended December 31, 2016 related to an exited product line.

We have defined “Net property, plant and equipment costs” as used in this Note 3 as property, plant and equipment impairment losses, subsequent adjustments to fair value for assets classified as held for sale, subsequent (gains) or losses on sales of property, plant and equipment and related parts and supplies on such assets, if any.

Other Costs

Our other costs consist of acquisition, divestiture and integration costs. We incur costs when we acquire or divest businesses. Acquisition costs include costs associated with transactions, whether consummated or not, such as advisory, legal, accounting, valuation and other professional or consulting fees, as well as potential litigation costs associated with those activities. Divestiture costs consist primarily of similar professional fees. The divestiture costs in fiscal 2017 are primarily associated with costs incurred during the HH&B Sale process. Post-acquisition, we incur integration costs that reflect work being performed to facilitate merger and acquisition integration, such as work associated with information systems and other projects, and primarily consist of professional services. We consider acquisition, divestiture and integration costs to be Corporate costs regardless of the segment or segments involved in the transaction.

The following table presents our acquisition, divestiture and integration costs (in millions):

 
Three Months Ended
 
December 31,
 
2017
 
2016
Acquisition costs
$
1.9

 
$
1.6

Divestiture costs
0.3

 
5.8

Integration costs
9.7

 
11.3

Other total
$
11.9

 
$
18.7




At September 30, 2017, we recategorized our integration costs to exclude severance and other employee costs and lease costs associated with mergers and acquisitions, notably for related workforce reductions. These costs have been presented in severance and other employee costs and other costs, respectively, in the restructuring table above. We recategorized $10.6 million in the three months ended December 31, 2016, primarily for severance and other employee costs.

The following table summarizes the changes in the restructuring accrual, which is primarily composed of lease commitments, accrued severance and other employee costs, and a reconciliation of the restructuring accrual charges to the line item “Restructuring and other costs” on our Condensed Consolidated Statements of Income (in millions):
 
Three Months Ended
 
December 31,
 
2017
 
2016
Accrual at beginning of fiscal year
$
47.4

 
$
44.8

Additional accruals
2.0

 
19.1

Payments
(8.6
)
 
(10.6
)
Adjustment to accruals
(3.7
)
 
(1.1
)
Foreign currency rate changes
(0.3
)
 
—

Accrual at December 31
$
36.8

 
$
52.2


Reconciliation of accruals and charges to restructuring and other costs (in millions):
 
 
 
Three Months Ended
 
December 31,
 
2017
 
2016
Additional accruals and adjustments to accruals (see table above)
$
(1.7
)
 
$
18.0

Acquisition costs
1.9

 
1.6

Divestiture costs
0.3

 
5.8

Integration costs
9.7

 
11.3

Net property, plant and equipment
1.6

 
21.3

Severance and other employee costs
0.4

 
2.7

Equipment and inventory relocation costs
1.9

 
1.1

Facility carrying costs
1.2

 
1.7

Other costs
1.0

 
17.5

Total restructuring and other costs
$
16.3

 
$
81.0

Retirement Plans
Retirement Plans
Retirement Plans

We have defined benefit pension plans and other postretirement benefit plans for certain U.S. and non-U.S. employees. Certain plans were frozen for salaried and non-union hourly employees at various times in the past, although some employees meeting certain criteria are still accruing benefits. In addition, we participate in several multiemployer pension plans (“MEPP or MEPPs”) that provide retirement benefits to certain union employees in accordance with various collective bargaining agreements. We also have supplemental executive retirement plans and other non-qualified defined benefit pension plans that provide unfunded supplemental retirement benefits to certain of our current and former executives. See “Note 15. Retirement Plans” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K for more information regarding our involvement with retirement plans.


MEPPs

In the normal course of business, we evaluate our potential exposure to MEPPs, including with respect to potential withdrawal liabilities. During the three months ended December 31, 2017, we submitted formal notification to withdraw from the Pace Industry Union-Management Pension Fund (the “PIUMPF”) and recorded an estimated withdrawal liability of $180.0 million. The estimated withdrawal liability assumes payment over 20 years, discounted at a credit adjusted risk-free rate of 3.83%. We expect PIUMPF’s demand related to the withdrawal to include both a payment for withdrawal liability and for our proportionate share of PIUMPF’s accumulated funding deficiency. We reserve the right to challenge any portion of the demand, including any portion related to the accumulate funding deficiency. The estimated withdrawal liability noted above excludes the potential impact of a future mass withdrawal of other employers from the PIUMPF, which is not considered probable or reasonably estimable at this time. Due to the absence of specific information regarding matters such as PIUMPF’s current financial situation, our estimate is subject to revision. It is reasonably possible that we may incur withdrawal liabilities with respect to certain other MEPPs in connection with such withdrawals. Our estimate of any such withdrawal liability, both individually and in the aggregate, is not material for the remaining plans in which we participate. At December 31, 2017 and September 30, 2017, we had withdrawal liabilities recorded of $240.1 million and $60.1 million, respectively.

See “Note 15. Retirement Plans — Multiemployer Plans” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K for more information regarding our involvement with multiemployer plans.

The following table represents a summary of the components of net pension cost (credit) (in millions):
 
Three Months Ended
 
December 31,
 
2017
 
2016
Service cost
$
11.6

 
$
12.0

Interest cost
50.9

 
48.5

Expected return on plan assets
(82.1
)
 
(79.5
)
Amortization of net actuarial loss
4.6

 
7.2

Amortization of prior service cost
1.1

 
1.0

Special termination benefits
—

 
3.5

Company defined benefit plan credit
(13.9
)
 
(7.3
)
Multiemployer pension withdrawal
180.0

 
—

Multiemployer and other plans
0.8

 
1.0

Net pension cost (credit)
$
166.9

 
$
(6.3
)

During the three months ended December 31, 2017 and December 31, 2016, we made contributions of $8.5 million and $7.0 million, respectively, to our qualified and supplemental defined benefit pension plans.

The other postretirement benefit plans provide certain health care and life insurance benefits for certain salaried and hourly employees who meet specified age and service requirements as defined by the plans. The following table represents a summary of the components of the net postretirement cost (in millions):
 
Three Months Ended
 
December 31,
 
2017
 
2016
Service cost
$
0.4

 
$
0.6

Interest cost
2.0

 
1.8

Amortization of net actuarial gain
—

 
(0.3
)
Amortization of prior service credit
(1.1
)
 
(0.6
)
Net postretirement cost
$
1.3

 
$
1.5



During the three months ended December 31, 2017 and December 31, 2016, we funded an aggregate of $2.8 million and $0.7 million, respectively, to our other postretirement benefit plans.
Income Taxes
Tax Provision
Income Taxes    

The effective tax rate for the three months ended December 31, 2017 was a benefit of 1,779.8%, while the effective tax rate for the three months ended December 31, 2016 was expense of 4.4%. The effective tax rate for the three months ended December 31, 2017, was lower than the statutory federal rate primarily due to (i) the provisional amounts related to the enactment of the Tax Cuts and Jobs Act (discussed below), (ii) favorable tax items, such as the domestic production deduction, partially offset by (iii) the inclusion of state taxes and (iv) the exclusion of tax benefits related to losses recorded by certain foreign operations. The effective tax rate for the three months ended December 31, 2016 was lower than the statutory federal rate primarily due to (i) a $23.8 million tax benefit related to the reduction of a state deferred tax liability as a result of an internal U.S. legal entity restructuring that simplified future operating activities within the U.S., (ii) favorable tax items, such as the domestic production deduction, (iii) lower tax rates applied to foreign earnings, primarily in Canada, offset by (iv) the exclusion of tax benefits related to losses recorded by certain foreign operations and (v) the inclusion of state taxes.

Impacts of the Tax Cuts and Jobs Act

On December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1) (the “Tax Act”) was signed into law. The Tax Act contains significant changes to corporate taxation, including (i) the reduction of the corporate income tax rate to 21%, (ii) the acceleration of expensing for certain business assets, (iii) the one-time transition tax related to the transition of U.S. international tax from a worldwide tax system to a territorial tax system, (iv) the repeal of the domestic production deduction, (v) additional limitations on the deductibility of interest expense, and (vi) expanded limitations on executive compensation.

The key impacts of the Tax Act on our financial statement for the three months ended December 31, 2017, were the re-measurement of deferred tax balances to the new corporate tax rate and the accrual for the one-time transition tax liability. While we have not yet completed our assessment of the effects of the Tax Act, we are able to determine reasonable estimates for the impacts of the key items specified above, thus we reported provisional amounts for these items. In accordance with Staff Accounting Bulletin No. 118 (“SAB 118”), we are providing additional disclosures related to these provisional amounts.

In order to calculate the effects of the new corporate tax rate on our deferred tax balances, ASC 740 “Income Taxes” (“ASC 740”) required the re-measurement of our deferred tax balances as of the enactment date of the Tax Act, based on the rates at which the balances were expected to reverse in the future. We are still analyzing the impact of the retroactive provisions of the law on our deferred tax balances and refining our calculations which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount determined, and recorded, for the re-measurement of our deferred tax balances resulted in a net reduction in deferred liabilities of $1,174.0 million. We will continue to analyze the impacts of the law on our deferred taxes and will refine the estimate of the balances as of the December 22, 2017 remeasurement date.

Additionally, we determined the provisional amount for the one-time transition tax. The one-time transition tax is based on our total post-1986 foreign earnings and profits (“E&P”) that were previously deferred from U.S. income tax. The applicable tax rate is based on the amount of those post-1986 earnings that is held in cash and other specified assets (the “cash position”). While we have not yet finalized our calculation of the total post-1986 E&P and cash position for our foreign corporations or the impact of foreign tax credits, we have (i) prepared reasonable estimates of the total post-1986 E&P and cash position of our foreign corporations, (ii) determined the applicable tax rates using the estimated cash position amounts, and, (iii) calculated, and recorded, a provisional amount for our one-time transition tax liability of $95.4 million (net of the release of a previously recorded outside basis difference this amount is $87.1 million). This amount is subject to change upon the completion of our total post-1986 E&P calculation, cash position calculation, and foreign tax credit determination.

We were unable to determine a reasonable estimate of the tax liability, if any, under the Tax Act for our remaining outside basis difference or evaluate how the Tax Act will affect our existing accounting position to indefinitely reinvest unremitted foreign earnings. We will continue to apply our existing accounting under ASC 740 for this matter.

The aforementioned provisional amounts related to the deferred tax balances and one-time transition tax are based on information available at this time and may change due to a variety of factors, including, among others, (i) anticipated guidance from the U.S. Department of Treasury about implementing the Tax Act, (ii) potential additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board related to the Tax Act, (iii) any impact resulting from our FY18 financial closing and reporting processes, and (iv) management’s further assessment of the Tax Act and related regulatory guidance. We are not complete in our assessment of the impact of the Tax Act on our business and consolidated financial statements. While the effective date of most of the provisions of the Tax Act do not apply until our tax year beginning October 1, 2018 we will continue our assessment of the impact of the Tax Act on our business and consolidated financial statements throughout the one-year measurement period as provided by SAB 118.
Segment Information
Segment Information
Segment Information

We report our financial results of operations in the following three reportable segments: Corrugated Packaging, which consists of our containerboard mill and corrugated packaging operations, as well as our recycling operations; Consumer Packaging, which consists of our consumer mills, folding carton, beverage, merchandising displays, home, health and beauty dispensing (prior to the HH&B Sale), and partition operations; and Land and Development, which sells real estate primarily in the Charleston, SC region. Certain income and expenses are not allocated to our segments and, thus, the information that management uses to make operating decisions and assess performance does not reflect these amounts. Items not allocated are reported as non-allocated expenses or in other line items in the table below after segment income.

The following table shows selected operating data for our segments (in millions):
 
Three Months Ended
 
December 31,
 
2017
 
2016
Net sales (aggregate):
 
 
 
Corrugated Packaging
$
2,178.6

 
$
1,943.6

Consumer Packaging
1,763.3

 
1,510.9

Land and Development
11.4

 
54.0

Total
$
3,953.3

 
$
3,508.5

Less net sales (intersegment):
 
 
 
Corrugated Packaging
$
36.7

 
$
36.7

Consumer Packaging
22.6

 
24.6

Total
$
59.3

 
$
61.3

Net sales (unaffiliated customers):
 
 
 
Corrugated Packaging
$
2,141.9

 
$
1,906.9

Consumer Packaging
1,740.7

 
1,486.3

Land and Development
11.4

 
54.0

Total
$
3,894.0

 
$
3,447.2

Segment income (loss):
 
 
 
Corrugated Packaging
$
264.1

 
$
141.5

Consumer Packaging
92.4

 
87.6

Land and Development
(0.7
)
 
1.7

Segment income
355.8

 
230.8

Multiemployer pension withdrawal
(180.0
)
 
—

Land and Development impairment
(27.6
)
 
—

Restructuring and other costs
(16.3
)
 
(81.0
)
Non-allocated expenses
(8.3
)
 
(14.7
)
Interest expense, net
(64.8
)
 
(54.1
)
Loss on extinguishment of debt
(1.0
)
 
—

Other income, net
2.5

 
1.1

Income before income taxes

$
60.3

 
$
82.1

Inventories
Inventories
Inventories

We value substantially all of our U.S. inventories at the lower of cost or market, with cost determined by last-in first-out (“LIFO”).We value all other inventories at the lower of cost or net realizable value, with cost determined using methods that approximate cost computed on a first-in first-out. These other inventories represent primarily foreign inventories and certain inventoried spare parts and supplies inventories.

The components of inventories were as follows (in millions):
 
December 31,
2017
 
September 30,
2017
Finished goods and work in process
$
939.1

 
$
905.0

Raw materials
661.4

 
614.2

Spare parts and supplies
362.3

 
360.7

Inventories at FIFO cost
1,962.8

 
1,879.9

LIFO reserve
(93.6
)
 
(82.6
)
Net inventories
$
1,869.2

 
$
1,797.3

Assets Held for Sale (Notes)
Assets Held for Sale [Text Block]
Assets Held For Sale

Due to our accelerated monetization strategy, our Land and Development portfolio has met the held for sale criteria and is reflected as assets held for sale. Assets held for sale at December 31, 2017 and September 30, 2017 of $162.4 million and $173.6 million, respectively, include $144.0 million and $150.4 million, respectively of Land and Development portfolio assets. The remainder is primarily related to closed facilities.
Property, Plant and Equipment
Property, Plant and Equipment Disclosure [Text Block]
Property, Plant and Equipment

The components of property, plant and equipment were as follows (in millions):    
 
December 31,
2017
 
September 30,
2017
Property, plant and equipment at cost:
 
 
 
Land and buildings
$
2,044.6

 
$
2,034.3

Machinery and equipment
11,508.2

 
11,349.7

Forestlands and mineral rights
179.6

 
208.3

Transportation equipment
30.8

 
30.7

Leasehold improvements
71.6

 
59.5

 
13,834.8

 
13,682.5

Less: accumulated depreciation, depletion and amortization
(4,770.9
)
 
(4,564.2
)
Property, plant and equipment, net
$
9,063.9

 
$
9,118.3

Fair Value
Fair Value
Fair Value

Assets and Liabilities Measured or Disclosed at Fair Value

We estimate fair values in accordance with ASC 820, “Fair Value Measurement”. See “Note 12. Fair Value” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K for more information. We disclose the fair value of our long-term debt in “Note 11. Debt” and the fair value of our pension and postretirement assets and liabilities in “Note 15. Retirement Plans” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K.

Financial Instruments Not Recognized at Fair Value

Financial instruments not recognized at fair value on a recurring or nonrecurring basis include cash and cash equivalents, accounts receivable, certain other current assets, short-term debt, accounts payable, certain other current liabilities, and long-term debt. With the exception of long-term debt, the carrying amounts of these financial instruments approximate their fair values due to their short maturities.

Fair Value of Nonfinancial Assets and Nonfinancial Liabilities

We measure certain nonfinancial assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities include cost and equity method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. During the three months ended December 31, 2017, other than a $27.6 million pre-tax non-cash impairment of certain mineral rights driven by the non-renewal of a lease and real estate where the projected sales proceeds were less than the carrying value, and in the three months ended December 31, 2016, other than a $17.6 million impairment of a customer relationship intangible related to an exited product line, we did not have any significant nonfinancial assets or nonfinancial liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. The impairment of mineral rights were associated with declining oil and gas prices, and the impairment of real estate was associated with the write-down of the carrying value on projects where the projected sales proceeds were less than the carrying value.

Accounts Receivable Sales Agreement        

We have an agreement (the “A/R Sales Agreement”) to sell to a third-party financial institution all of the short-term receivables generated from certain customer trade accounts, on a revolving basis, until the agreement is terminated by either party. The A/R Sales Agreement has been amended periodically. On September 29, 2017, the A/R Sales Agreement was amended to increase the maximum outstanding balance of receivables available to be sold to $490.0 million, and we added new customer trade accounts as well as increased the limits for other customers. Transfers under the A/R Sales Agreement meet the requirements to be accounted for as sales in accordance with guidance in ASC 860, “Transfers and Servicing”.

The following table represents a summary of the activity under the A/R Sales Agreement for the three months ended December 31, 2017 and December 31, 2016 (in millions):

 
Three Months Ended
 
December 31,
 
2017
 
2016
Receivable from financial institution at beginning of fiscal year
$
24.9

 
$
13.8

Receivables sold to the financial institution and derecognized
385.6

 
381.5

Receivables collected by financial institution
(369.2
)
 
(342.3
)
Cash proceeds from financial institution
(22.3
)
 
(42.6
)
Receivable from financial institution at December 31,
$
19.0

 
$
10.4



Cash proceeds related to receivables sold are included in cash from operating activities in the Condensed Consolidated Statement of Cash Flows in the accounts receivable line item. The loss on sale is currently less than $10 million per fiscal year, and is recorded in other income, net. Although the sales are made without recourse, we maintain continuing involvement with the sold receivables as we provide collections services related to the transferred assets. The associated servicing liability is not material given the high quality of the customers underlying the receivables and the anticipated short collection period.
Debt
Debt Disclosure
Debt                

For additional information on our debt and interest rates on that debt, see “Note 11. Debt” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K.

The following is the carrying value of the individual components of our debt (in millions):
 
December 31, 2017
 
September 30, 2017
Public bonds due fiscal 2019 to 2022
$
1,481.1

 
$
1,484.5

Public bonds due fiscal 2023 to 2027
1,369.2

 
1,368.8

Public bonds due fiscal 2030 to 2033
972.7

 
975.5

Public bonds due fiscal 2037 to 2047
178.7

 
178.8

Term loan facilities
1,138.7

 
1,622.7

Revolving credit and swing facilities
537.9

 
436.4

Receivables-backed financing facility
25.0

 
110.0

Commercial paper
554.7

 
—

Capital lease obligations
174.4

 
177.0

Supplier financing and commercial card programs
116.6

 
130.3

International and other debt
61.4

 
70.8

Total debt
6,610.4

 
6,554.8

Less: current portion of debt
1,244.6

 
608.7

Long-term debt due after one year
$
5,365.8

 
$
5,946.1


A portion of the debt classified as long-term, principally our term loan facilities and the Receivables Facility (as defined below), may be paid down earlier than scheduled at our discretion without penalty. Certain customary restrictive covenants govern the maximum availability under our credit facilities. We test and report our compliance with these covenants as required and were in compliance with all of our covenants at December 31, 2017.

The estimated fair value of our debt was approximately $6.8 billion as of December 31, 2017 and September 30, 2017. The fair value of our long-term debt is primarily either based on quoted prices for those or similar instruments, or approximate the carrying amount as the variable interest rates reprice frequently at observable current market rates, and are categorized as level 2 within the fair value hierarchy.

Receivables-Backed Financing Facility

On July 22, 2016, we entered into a $700.0 million eighth amended and restated receivables sale agreement among certain originators named therein and WestRock Financial, Inc. (the “Receivables Facility”) that matures on July 22, 2019. At December 31, 2017 and September 30, 2017, maximum available borrowings, excluding amounts outstanding under the Receivables Facility, were $564.7 million and $577.6 million, respectively. The carrying amount of accounts receivable collateralizing the maximum available borrowings at December 31, 2017 was approximately $825.9 million. We have continuing involvement with the underlying receivables as we provide credit and collections services pursuant to the Receivables Facility agreement.

Commercial Paper Program

On October 31, 2017, we established an unsecured commercial paper program, pursuant to which we may issue short-term, unsecured commercial paper notes in an aggregate principal amount at any time not to exceed $1.0 billion with up to 397-day maturities. The commercial paper program has no expiration date and can be terminated by either the agent or us with not less than thirty days notice. Our revolving credit facility is intended to backstop the commercial paper program. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The net proceeds of issuances of the notes under the program have been, and are expected to continue to be, used for general corporate purposes. Our borrowing rate under the commercial paper program facility is based on the applicable London Interbank Offered Rate (“LIBOR”), plus a market-determined interest rate margin. At December 31, 2017, the average borrowing rate was 1.97% and the commercial paper is classified as current portion of debt.

New Revolving Credit Facility

On October 31, 2017, we entered into a credit agreement with Wells Fargo Bank, National Association, as administrative agent, providing for a 364-day senior unsecured revolving credit facility in an aggregate committed principal amount of $450.0 million. The proceeds of the credit facility may be used for working capital and for other general corporate purposes. The credit facility is unsecured and is guaranteed by WestRock RKT Company and WestRock MWV, LLC. At our option, loans issued under the credit facility will bear interest at either LIBOR or an alternate base rate, in each case plus an applicable interest rate margin. At December 31, 2017, the average borrowing rate under the facility was 2.69%.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
                    
Environmental

We are subject to a broad range of foreign, federal, state and local environmental, health and safety laws and regulations, including those governing discharges to air, soil and water, the management, treatment and disposal of hazardous substances, solid waste and hazardous wastes, the investigation and remediation of contamination resulting from historical site operations and releases of hazardous substances, and the health and safety of employees. Our compliance initiatives related to these laws and regulations could result in significant costs, which could negatively impact our results of operations, financial condition and cash flows. Any failure to comply with environmental or health and safety laws and regulations, or any permits and authorizations required thereunder, could subject us to fines, corrective action or other sanctions.

We have been named as a potentially responsible party (“PRP”) in environmental remediation actions under various federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”). Many of these proceedings involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources. While joint and several liability is authorized under CERCLA and equivalent state laws, liability for CERCLA cleanups is typically shared with other PRPs, and costs are commonly allocated according to relative amounts of waste deposited and other factors. There are other remediation costs typically associated with the cleanup of hazardous substances at our current, closed or formerly-owned facilities, and recorded as liabilities in our balance sheet. Remediation costs are recorded in our financial statements when they become probable and reasonably estimable.

On January 26, 2009, Smurfit-Stone and certain of its subsidiaries filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. Smurfit-Stone’s Canadian subsidiaries also filed to reorganize in Canada. We believe that matters relating to previously identified third-party PRP sites and certain facilities formerly owned or operated by Smurfit-Stone have been or will be satisfied claims in the Smurfit-Stone bankruptcy proceedings. However, we may face additional liability for cleanup activity at sites that are not subject to the bankruptcy discharge, but are not currently identified. Some of these liabilities may be satisfied from existing bankruptcy reserves. For additional information related to environmental matters, CERCLA and other remediation costs and climate change, see “Note 19. Commitments and Contingencies” of the Notes to Consolidated Financial Statements section of the Fiscal 2017 Form 10-K.

As of December 31, 2017, we had $14.3 million reserved for environmental liabilities on an undiscounted basis, of which $9.3 million is included in other long-term liabilities and $5.0 million in other current liabilities, including amounts accrued in connection with environmental obligations relating to the manufacturing facilities that we have closed.

Litigation

A lawsuit filed in the U.S. District Court of the Northern District of Illinois in 2010 alleges that certain named defendants violated the Sherman Act by conspiring to limit the supply and fix the prices of containerboard and products containing containerboard from February 15, 2004 through November 8, 2010 (the “Antitrust Litigation”). WestRock CP, LLC, as the successor to Smurfit-Stone, is a named defendant with respect to the period after Smurfit-Stone’s discharge from bankruptcy on June 30, 2010 through November 8, 2010. The complaint seeks treble damages and costs, including attorney’s fees. In March 2015, the court granted the plaintiffs’ motion for class certification. On January 9, 2017, the defendants filed individual and joint Motions for Summary Judgment in the District Court. On August 3, 2017, the District Court granted our Motion for Summary Judgment with respect to all claims against us. The plaintiffs have since filed a notice of appeal. We do not expect the resolution of the Antitrust Litigation will have a material adverse effect on our results of operations, financial condition or cash flows.

We have been named a defendant in asbestos-related personal injury litigation. To date, the costs resulting from the litigation, including settlement costs, have not been significant. As of December 31, 2017, there were approximately 750 lawsuits. We believe that we have substantial insurance coverage, subject to applicable deductibles and policy limits, with respect to asbestos claims. We have valid defenses to these asbestos-related personal injury claims and intend to continue to defend them vigorously. Should the volume of litigation grow substantially, it is possible that we could incur significant costs resolving these cases. We do not expect the resolution of pending litigation and proceedings to have a material adverse effect on our consolidated financial condition or liquidity. In any given period or periods, however, it is possible such proceedings or matters could have a material adverse effect on our results of operations, financial condition or cash flows.
 
We are a defendant in a number of other lawsuits and claims arising out of the conduct of our business. While the ultimate results of such suits or other proceedings against us cannot be predicted with certainty, we believe the resolution of these other matters will not have a material adverse effect on our results of operations, financial condition or cash flows.

Guarantees

We make certain guarantees in the course of conducting our operations, for compliance with certain laws and regulations, or in connection with certain business dispositions. These guarantees include items such as funding of net losses in proportion to our ownership share of certain joint ventures, debt guarantees related to certain unconsolidated entities acquired in acquisitions, indemnifications of lessors in certain facilities and equipment operating leases for items such as additional taxes being assessed due to a change in tax law, and, certain other agreements. We estimate the exposure for these matters could be approximately $50 million. As of December 31, 2017, we have recorded $11.8 million for the estimated fair value of these guarantees. We are unable to estimate our maximum exposure under operating leases because it is dependent on potential changes in the tax law; however, we believe our exposure related to guarantees would not have a material impact on our results of operations, financial condition or cash flows.
Equity and Other Comprehensive Income
Comprehensive Income and Equity Note
Equity and Other Comprehensive Income (Loss)

Equity

Stock Repurchase Program

In July 2015, our board of directors authorized a repurchase program of up to 40.0 million shares of our common stock, par value $0.01 per share (“Common Stock”), representing approximately 15% of our outstanding Common Stock as of July 1, 2015. The shares of Common Stock may be repurchased over an indefinite period of time at the discretion of management. Pursuant to the program, in the three months ended December 31, 2017, we repurchased no shares of Common Stock. As of December 31, 2017, we had approximately 24.7 million shares of Common Stock available for repurchase under the program.

Accumulated Other Comprehensive Loss

The tables below summarize the changes in accumulated other comprehensive loss, net of tax, by component for the three months ended December 31, 2017 and December 31, 2016 (in millions):

 
Cash Flow Hedges
 
Defined Benefit Pension and Postretirement Plans
 
Foreign Currency Items
 
Available for Sale Security
 
Total (1)
Balance at September 30, 2017
$
(0.7
)
 
$
(462.5
)
 
$
5.2

 
$
0.7

 
$
(457.3
)
Other comprehensive (loss) income before reclassifications
(0.1
)
 
(2.7
)
 
(42.0
)
 
0.8

 
(44.0
)
Amounts reclassified from accumulated other comprehensive loss
0.5

 
3.2

 
—

 
—

 
3.7

Net current period other comprehensive income (loss)
0.4

 
0.5

 
(42.0
)
 
0.8

 
(40.3
)
Balance at December 31, 2017
$
(0.3
)
 
$
(462.0
)
 
$
(36.8
)
 
$
1.5

 
$
(497.6
)

(1)  
All amounts are net of tax and noncontrolling interests.

 
Cash Flow Hedges
 
Defined Benefit Pension and Postretirement Plans
 
Foreign Currency Items
 
Total (1)
Balance at September 30, 2016
$
(0.2
)
 
$
(523.8
)
 
$
(102.4
)
 
$
(626.4
)
Other comprehensive income (loss) before reclassifications
0.1

 
(10.1
)
 
(110.2
)
 
(120.2
)
Amounts reclassified from accumulated other comprehensive loss
—

 
4.5

 
—

 
4.5

Net current period other comprehensive income (loss)
0.1

 
(5.6
)
 
(110.2
)
 
(115.7
)
Balance at December 31, 2016
$
(0.1
)
 
$
(529.4
)
 
$
(212.6
)
 
$
(742.1
)

(1)     All amounts are net of tax and noncontrolling interests.

The net of tax amounts were determined using the jurisdictional statutory rates, and reflect effective tax rates averaging 28% to 29% for the three months ended December 31, 2017 and 30% to 31% for the three months ended December 31, 2016. Although we are impacted by a number of currencies, foreign currency translation losses recorded in accumulated other comprehensive loss for the three months ended December 31, 2017 were primarily due to losses in the Brazilian Real and Mexican peso, partially offset by changes in the Euro exchange rate, each against the United States (“U.S.”) dollar. Foreign currency translation losses recorded in accumulated other comprehensive loss for the three months ended December 31, 2016 were primarily due to the changes in Euro/U.S. dollar and Mexican Peso/U.S. dollar exchange rates. For the three months ended December 31, 2016, we recorded defined benefit net actuarial losses of $10.1 million, net of tax of $3.7 million, in other comprehensive income (loss), primarily due to actuarial experience in our Canadian defined benefit plans.

The following table summarizes the reclassifications out of accumulated other comprehensive loss by component (in millions):

 
Three Months Ended
 
Three Months Ended
 
December 31, 2017
 
December 31, 2016
 
Pretax
 
Tax
 
Net of Tax
 
Pretax
 
Tax
 
Net of Tax
Amortization of defined benefit pension and postretirement items (1)
 
 
 
 
 
 
 
 
 
 
 
Actuarial losses (2)
$
(4.4
)
 
$
1.2

 
$
(3.2
)
 
$
(6.4
)
 
$
2.2

 
$
(4.2
)
Prior service costs (2)
—

 
—

 
—

 
(0.4
)
 
0.1

 
(0.3
)
Subtotal defined benefit plans
(4.4
)
 
1.2

 
(3.2
)
 
(6.8
)
 
2.3

 
(4.5
)
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (1)

 
 
 
 
 
 
 
 
 
 
 
Foreign currency cash flow hedges (3)

(0.7
)
 
0.2

 
(0.5
)
 
—

 
—

 
—

Total reclassifications for the period
$
(5.1
)
 
$
1.4

 
$
(3.7
)
 
$
(6.8
)
 
$
2.3

 
$
(4.5
)

(1)  
Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded.
(2) 
Included in the computation of net periodic pension cost. See “Note 4. Retirement Plans” for additional details.
(3) 
Included in net sales.
Earnings per Share
Earnings Per Share
Earnings per Share

Restricted stock awards we grant to non-employee directors are considered participating securities as they receive non-forfeitable rights to dividends at the same rate as our Common Stock. As participating securities, we include these instruments in the earnings allocation in computing earnings per share under the two-class method described in ASC 260 “Earnings per Share.” The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in millions, except per share data):
 
 
Three Months Ended
 
December 31,
 
2017
 
2016
Numerator:
 
 
 
Net income attributable to common stockholders
$
1,135.1

 
$
80.9

Less: Distributed and undistributed income available to participating securities
(0.2
)
 
—

Distributed and undistributed income available to common stockholders
$
1,134.9

 
$
80.9

 
 
 
 
Denominator:
 
 
 
Basic weighted average shares outstanding
255.0

 
251.2

Effect of dilutive stock options and non-participating securities
4.2

 
4.1

Diluted weighted average shares outstanding
259.2

 
255.3

 
 
 
 
Basic earnings per share attributable to common stockholders
$
4.45

 
$
0.32

Diluted earnings per share attributable to common stockholders
$
4.38

 
$
0.32



Weighted average shares include approximately 0.2 million and 0.3 million of reserved, but unissued, shares at December 31, 2017 and December 31, 2016, respectively. These reserved shares will be distributed as claims are liquidated or resolved in accordance with the Smurfit-Stone Plan of Reorganization and Confirmation Order.

Approximately 0.1 million and 0.6 million of awards in the three months ended December 31, 2017 and December 31, 2016, respectively, were not included in computing diluted earnings per share because the effect would have been antidilutive.
Subsequent Events
Subsequent Events [Text Block]
Subsequent Events

KapStone Acquisition

On January 29, 2018, we announced that a definitive agreement had been reached for us to acquire all of the outstanding common stock of KapStone Paper and Packaging Corporation (“KapStone”) for $35.00 per share and the assumption of approximately $1.36 billion in net debt, for a total enterprise value of approximately $4.9 billion (the “KapStone Acquisition”). KapStone is a leading North American producer and distributor of containerboard, corrugated products and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft. KapStone also owns Victory Packaging, a packaging solutions distribution company with facilities in the United States, Canada and Mexico. KapStone stockholders will have the option to receive $35.00 per share in cash, or to elect to receive 0.4981 WestRock shares per KapStone share, with elections of stock consideration capped at 25% of the outstanding KapStone shares but no limit on the number of KapStone shares that can receive cash consideration. We expect to finance the cash consideration of the transaction through the issuance of new debt. We expect to refinance existing KapStone debt assumed as part of the transaction upon closing. The transaction is subject to a vote by KapStone’s stockholders and is expected to close in the fourth fiscal quarter of 2018, subject to the receipt of applicable regulatory approvals and other customary closing conditions. KapStone’s chairman, Roger Stone, and president and chief executive officer, Matt Kaplan, have entered into voting agreements, pursuant to which they have agreed to vote their shares in support of the transaction, subject to certain limitations. We will finance the cash consideration, including existing KapStone debt to be assumed as part of the transaction upon closing, through the issuance of new debt under a fully committed financing package.

Plymouth Packaging Acquisition

We completed the acquisition of substantially all of the assets of Plymouth Packaging Acquisition on January 5, 2018. Plymouth is a corrugated packaging company that derives approximately 70% of its sales from its “Box on Demand” systems that use corrugated fanfold supplied by Plymouth, and 30% from traditional corrugated box packaging. Plymouth’s “Box on Demand” systems, manufactured by Panotec, an Italian manufacturer of packaging machines, are located on the customers’ sites under multi-year exclusive agreements and use fanfold corrugated to produce custom, on-demand corrugated packaging that is accurately sized for any product type according to the customer’s specifications. Fanfold corrugated is continuous corrugated board, folded periodically to form an accordion-like stack of corrugated material. As part of the transaction, WestRock acquired Plymouth’s equity interest in Panotec and Plymouth’s exclusive right to distribute Panotec’s equipment in the U.S. and Canada. WestRock currently provides one-third of the nearly 60,000 tons of containerboard used by Plymouth annually, and intends to fully integrate these tons. The estimated purchase price of $197.6 million is subject to a working capital adjustment and a tax make-whole payment not to exceed $8.5 million related to stepping up the assets for tax purposes.
Restructuring and Other Costs, Net (Tables)
Schedule of restructuring and other costs 
The following table summarizes our Restructuring and other costs (in millions):

 
Three Months Ended
 
December 31,
 
2017
 
2016
Restructuring
$
4.4

 
$
62.3

Other
11.9

 
18.7

Restructuring and Other Costs
$
16.3

 
$
81.0

Restructuring and Related Costs [Table Text Block] 
The following table presents a summary of restructuring charges related to active restructuring initiatives that we incurred during the three months ended December 31, 2017 and December 31, 2016, the cumulative recorded amount since we started the initiative, and our estimate of the total we expect to incur (in millions):


 
Current Quarter

 
Prior Year Quarter
 
Cumulative
 
Total Expected
Corrugated Packaging
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
0.6

 
$
1.4

 
$
209.3

 
$
209.3

Severance and other employee costs
0.8

 
(0.2
)
 
41.4

 
42.9

Equipment and inventory relocation costs
1.4

 
0.4

 
5.4

 
6.1

Facility carrying costs
0.8

 
1.7

 
34.2

 
35.3

Other costs
(0.3
)
 
0.1

 
18.9

 
19.0

Restructuring total
$
3.3

 
$
3.4

 
$
309.2

 
$
312.6

 
 
 
 
 
 
 
 
Consumer Packaging
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
1.0

 
$
19.9

 
$
35.7

 
$
35.7

Severance and other employee costs
(1.6
)
 
8.7

 
32.1

 
32.1

Equipment and inventory relocation costs
0.5

 
0.7

 
5.3

 
6.4

Facility carrying costs
0.4

 
—

 
2.8

 
4.1

Other costs (1)
(0.3
)
 
17.8

 
20.4

 
20.4

Restructuring total
$
—

 
$
47.1

 
$
96.3

 
$
98.7

 
 
 
 
 
 
 
 
Land and Development
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
—

 
$
—

 
$
1.8

 
$
1.8

Severance and other employee costs
0.4

 
0.9

 
13.8

 
14.5

Restructuring total
$
0.4

 
$
0.9

 
$
15.6

 
$
16.3

 
 
 
 
 
 
 
 
Corporate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
—

 
$
—

 
$
1.4

 
$
1.4

Severance and other employee costs
0.2

 
10.5

 
100.1

 
100.1

Other costs
0.5

 
0.4

 
11.2

 
11.2

Restructuring total
$
0.7

 
$
10.9

 
$
112.7

 
$
112.7

 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net property, plant and equipment costs
$
1.6

 
$
21.3

 
$
248.2

 
$
248.2

Severance and other employee costs
(0.2
)
 
19.9

 
187.4

 
189.6

Equipment and inventory relocation costs
1.9

 
1.1

 
10.7

 
12.5

Facility carrying costs
1.2

 
1.7

 
37.0

 
39.4

Other costs
(0.1
)
 
18.3

 
50.5

 
50.6

Restructuring total
$
4.4

 
$
62.3

 
$
533.8

 
$
540.3


(1) 
Includes a $17.6 million impairment of a customer relationship intangible in the three months ended December 31, 2016 related to an exited product line.
Schedule of Restructuring and Other Costs Reserve By Type of Cost 
The following table summarizes the changes in the restructuring accrual, which is primarily composed of lease commitments, accrued severance and other employee costs, and a reconciliation of the restructuring accrual charges to the line item “Restructuring and other costs” on our Condensed Consolidated Statements of Income (in millions):
 
Three Months Ended
 
December 31,
 
2017
 
2016
Accrual at beginning of fiscal year
$
47.4

 
$
44.8

Additional accruals
2.0

 
19.1

Payments
(8.6
)
 
(10.6
)
Adjustment to accruals
(3.7
)
 
(1.1
)
Foreign currency rate changes
(0.3
)
 
—

Accrual at December 31
$
36.8

 
$
52.2


Reconciliation of accruals and charges to restructuring and other costs (in millions):
 
 
 
Three Months Ended
 
December 31,
 
2017
 
2016
Additional accruals and adjustments to accruals (see table above)
$
(1.7
)
 
$
18.0

Acquisition costs
1.9

 
1.6

Divestiture costs
0.3

 
5.8

Integration costs
9.7

 
11.3

Net property, plant and equipment
1.6

 
21.3

Severance and other employee costs
0.4

 
2.7

Equipment and inventory relocation costs
1.9

 
1.1

Facility carrying costs
1.2

 
1.7

Other costs
1.0

 
17.5

Total restructuring and other costs
$
16.3

 
$
81.0

Schedule of Restructuring Costs Included in Other Expenses 
The following table presents our acquisition, divestiture and integration costs (in millions):

 
Three Months Ended
 
December 31,
 
2017
 
2016
Acquisition costs
$
1.9

 
$
1.6

Divestiture costs
0.3

 
5.8

Integration costs
9.7

 
11.3

Other total
$
11.9

 
$
18.7

Retirement Plans (Tables)
Summary of components of net pension cost and summary of components of postretirement benefit costs

The following table represents a summary of the components of net pension cost (credit) (in millions):
 
Three Months Ended
 
December 31,
 
2017
 
2016
Service cost
$
11.6

 
$
12.0

Interest cost
50.9

 
48.5

Expected return on plan assets
(82.1
)
 
(79.5
)
Amortization of net actuarial loss
4.6

 
7.2

Amortization of prior service cost
1.1

 
1.0

Special termination benefits
—

 
3.5

Company defined benefit plan credit
(13.9
)
 
(7.3
)
Multiemployer pension withdrawal
180.0

 
—

Multiemployer and other plans
0.8

 
1.0

Net pension cost (credit)
$
166.9

 
$
(6.3
)

The following table represents a summary of the components of the net postretirement cost (in millions):
 
Three Months Ended
 
December 31,
 
2017
 
2016
Service cost
$
0.4

 
$
0.6

Interest cost
2.0

 
1.8

Amortization of net actuarial gain
—

 
(0.3
)
Amortization of prior service credit
(1.1
)
 
(0.6
)
Net postretirement cost
$
1.3

 
$
1.5

Segment Information (Tables)
Certain operating data for segments
The following table shows selected operating data for our segments (in millions):
 
Three Months Ended
 
December 31,
 
2017
 
2016
Net sales (aggregate):
 
 
 
Corrugated Packaging
$
2,178.6

 
$
1,943.6

Consumer Packaging
1,763.3

 
1,510.9

Land and Development
11.4

 
54.0

Total
$
3,953.3

 
$
3,508.5

Less net sales (intersegment):
 
 
 
Corrugated Packaging
$
36.7

 
$
36.7

Consumer Packaging
22.6

 
24.6

Total
$
59.3

 
$
61.3

Net sales (unaffiliated customers):
 
 
 
Corrugated Packaging
$
2,141.9

 
$
1,906.9

Consumer Packaging
1,740.7

 
1,486.3

Land and Development
11.4

 
54.0

Total
$
3,894.0

 
$
3,447.2

Segment income (loss):
 
 
 
Corrugated Packaging
$
264.1

 
$
141.5

Consumer Packaging
92.4

 
87.6

Land and Development
(0.7
)
 
1.7

Segment income
355.8

 
230.8

Multiemployer pension withdrawal
(180.0
)
 
—

Land and Development impairment
(27.6
)
 
—

Restructuring and other costs
(16.3
)
 
(81.0
)
Non-allocated expenses
(8.3
)
 
(14.7
)
Interest expense, net
(64.8
)
 
(54.1
)
Loss on extinguishment of debt
(1.0
)
 
—

Other income, net
2.5

 
1.1

Income before income taxes

$
60.3

 
$
82.1




Inventories (Tables)
Schedule of inventories
The components of inventories were as follows (in millions):
 
December 31,
2017
 
September 30,
2017
Finished goods and work in process
$
939.1

 
$
905.0

Raw materials
661.4

 
614.2

Spare parts and supplies
362.3

 
360.7

Inventories at FIFO cost
1,962.8

 
1,879.9

LIFO reserve
(93.6
)
 
(82.6
)
Net inventories
$
1,869.2

 
$
1,797.3

Property, Plant and Equipment (Tables)
Property, Plant and Equipment [Table Text Block]
The components of property, plant and equipment were as follows (in millions):    
 
December 31,
2017
 
September 30,
2017
Property, plant and equipment at cost:
 
 
 
Land and buildings
$
2,044.6

 
$
2,034.3

Machinery and equipment
11,508.2

 
11,349.7

Forestlands and mineral rights
179.6

 
208.3

Transportation equipment
30.8

 
30.7

Leasehold improvements
71.6

 
59.5

 
13,834.8

 
13,682.5

Less: accumulated depreciation, depletion and amortization
(4,770.9
)
 
(4,564.2
)
Property, plant and equipment, net
$
9,063.9

 
$
9,118.3

Fair Value Accounts Receivable Sales Agreement Rollforward (Tables)
Accounts Receivable Sales Agreement Rollforward [Table Text Block]
The following table represents a summary of the activity under the A/R Sales Agreement for the three months ended December 31, 2017 and December 31, 2016 (in millions):

 
Three Months Ended
 
December 31,
 
2017
 
2016
Receivable from financial institution at beginning of fiscal year
$
24.9

 
$
13.8

Receivables sold to the financial institution and derecognized
385.6

 
381.5

Receivables collected by financial institution
(369.2
)
 
(342.3
)
Cash proceeds from financial institution
(22.3
)
 
(42.6
)
Receivable from financial institution at December 31,
$
19.0

 
$
10.4

Debt (Tables)
Components of debt
The following is the carrying value of the individual components of our debt (in millions):
 
December 31, 2017
 
September 30, 2017
Public bonds due fiscal 2019 to 2022
$
1,481.1

 
$
1,484.5

Public bonds due fiscal 2023 to 2027
1,369.2

 
1,368.8

Public bonds due fiscal 2030 to 2033
972.7

 
975.5

Public bonds due fiscal 2037 to 2047
178.7

 
178.8

Term loan facilities
1,138.7

 
1,622.7

Revolving credit and swing facilities
537.9

 
436.4

Receivables-backed financing facility
25.0

 
110.0

Commercial paper
554.7

 
—

Capital lease obligations
174.4

 
177.0

Supplier financing and commercial card programs
116.6

 
130.3

International and other debt
61.4

 
70.8

Total debt
6,610.4

 
6,554.8

Less: current portion of debt
1,244.6

 
608.7

Long-term debt due after one year
$
5,365.8

 
$
5,946.1


Equity and Other Comprehensive Income (Tables)
Accumulated Other Comprehensive Income (Loss) [Table Text Block] 
The tables below summarize the changes in accumulated other comprehensive loss, net of tax, by component for the three months ended December 31, 2017 and December 31, 2016 (in millions):

 
Cash Flow Hedges
 
Defined Benefit Pension and Postretirement Plans
 
Foreign Currency Items
 
Available for Sale Security
 
Total (1)
Balance at September 30, 2017
$
(0.7
)
 
$
(462.5
)
 
$
5.2

 
$
0.7

 
$
(457.3
)
Other comprehensive (loss) income before reclassifications
(0.1
)
 
(2.7
)
 
(42.0
)
 
0.8

 
(44.0
)
Amounts reclassified from accumulated other comprehensive loss
0.5

 
3.2

 
—

 
—

 
3.7

Net current period other comprehensive income (loss)
0.4

 
0.5

 
(42.0
)
 
0.8

 
(40.3
)
Balance at December 31, 2017
$
(0.3
)
 
$
(462.0
)
 
$
(36.8
)
 
$
1.5

 
$
(497.6
)

(1)  
All amounts are net of tax and noncontrolling interests.

 
Cash Flow Hedges
 
Defined Benefit Pension and Postretirement Plans
 
Foreign Currency Items
 
Total (1)
Balance at September 30, 2016
$
(0.2
)
 
$
(523.8
)
 
$
(102.4
)
 
$
(626.4
)
Other comprehensive income (loss) before reclassifications
0.1

 
(10.1
)
 
(110.2
)
 
(120.2
)
Amounts reclassified from accumulated other comprehensive loss
—

 
4.5

 
—

 
4.5

Net current period other comprehensive income (loss)
0.1

 
(5.6
)
 
(110.2
)
 
(115.7
)
Balance at December 31, 2016
$
(0.1
)
 
$
(529.4
)
 
$
(212.6
)
 
$
(742.1
)

(1)     All amounts are net of tax and noncontrolling interests.

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] 
The following table summarizes the reclassifications out of accumulated other comprehensive loss by component (in millions):

 
Three Months Ended
 
Three Months Ended
 
December 31, 2017
 
December 31, 2016
 
Pretax
 
Tax
 
Net of Tax
 
Pretax
 
Tax
 
Net of Tax
Amortization of defined benefit pension and postretirement items (1)
 
 
 
 
 
 
 
 
 
 
 
Actuarial losses (2)
$
(4.4
)
 
$
1.2

 
$
(3.2
)
 
$
(6.4
)
 
$
2.2

 
$
(4.2
)
Prior service costs (2)
—

 
—

 
—

 
(0.4
)
 
0.1

 
(0.3
)
Subtotal defined benefit plans
(4.4
)
 
1.2

 
(3.2
)
 
(6.8
)
 
2.3

 
(4.5
)
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (1)

 
 
 
 
 
 
 
 
 
 
 
Foreign currency cash flow hedges (3)

(0.7
)
 
0.2

 
(0.5
)
 
—

 
—

 
—

Total reclassifications for the period
$
(5.1
)
 
$
1.4

 
$
(3.7
)
 
$
(6.8
)
 
$
2.3

 
$
(4.5
)

(1)  
Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded.
(2) 
Included in the computation of net periodic pension cost. See “Note 4. Retirement Plans” for additional details.
(3) 
Included in net sales.
Earnings per Share (Tables)
Schedule of earnings per share, basic and diluted
The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in millions, except per share data):
 
 
Three Months Ended
 
December 31,
 
2017
 
2016
Numerator:
 
 
 
Net income attributable to common stockholders
$
1,135.1

 
$
80.9

Less: Distributed and undistributed income available to participating securities
(0.2
)
 
—

Distributed and undistributed income available to common stockholders
$
1,134.9

 
$
80.9

 
 
 
 
Denominator:
 
 
 
Basic weighted average shares outstanding
255.0

 
251.2

Effect of dilutive stock options and non-participating securities
4.2

 
4.1

Diluted weighted average shares outstanding
259.2

 
255.3

 
 
 
 
Basic earnings per share attributable to common stockholders
$
4.45

 
$
0.32

Diluted earnings per share attributable to common stockholders
$
4.38

 
$
0.32



Acquisitions (Details) (Grupo Gondi Investment [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended
Oct. 20, 2017
Oct. 20, 2017
Apr. 1, 2017
Grupo Gondi Investment [Member]
 
 
 
Business Acquisition [Line Items]
 
 
 
Payments to Acquire Interest in Joint Venture
$ 108 
 
 
Equity Method Investment, Ownership Percentage
 
32.30% 
27.00% 
Restructuring and Other Costs, Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
$ 4.4 
$ 62.3 
Restructuring and Related Cost, Cost Incurred to Date
533.8 
 
Restructuring and Related Cost, Expected Cost
540.3 
 
Restructuring and other costs
16.3 
81.0 
Restructuring and Other Costs, Other
11.9 
18.7 
Acquisition costs
1.9 
1.6 
Divestiture costs
0.3 
5.8 
Integration costs
9.7 
11.3 
Net Property, Plant and Equipment [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
1.6 
21.3 
Restructuring and Related Cost, Cost Incurred to Date
248.2 
 
Restructuring and Related Cost, Expected Cost
248.2 
 
Employee severance and other EE costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
(0.2)
19.9 
Restructuring and Related Cost, Cost Incurred to Date
187.4 
 
Restructuring and Related Cost, Expected Cost
189.6 
 
Equipment and Inventory Relocation Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
1.9 
1.1 
Restructuring and Related Cost, Cost Incurred to Date
10.7 
 
Restructuring and Related Cost, Expected Cost
12.5 
 
Facility Carrying Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
1.2 
1.7 
Restructuring and Related Cost, Cost Incurred to Date
37.0 
 
Restructuring and Related Cost, Expected Cost
39.4 
 
Other Costs Related to Restructuring and Other Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
(0.1)
18.3 
Restructuring and Related Cost, Cost Incurred to Date
50.5 
 
Restructuring and Related Cost, Expected Cost
50.6 
 
Corrugated Packaging [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
3.3 
3.4 
Restructuring and Related Cost, Cost Incurred to Date
309.2 
 
Restructuring and Related Cost, Expected Cost
312.6 
 
Corrugated Packaging [Member] |
Net Property, Plant and Equipment [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.6 
1.4 
Restructuring and Related Cost, Cost Incurred to Date
209.3 
 
Restructuring and Related Cost, Expected Cost
209.3 
 
Corrugated Packaging [Member] |
Employee severance and other EE costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.8 
(0.2)
Restructuring and Related Cost, Cost Incurred to Date
41.4 
 
Restructuring and Related Cost, Expected Cost
42.9 
 
Corrugated Packaging [Member] |
Equipment and Inventory Relocation Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
1.4 
0.4 
Restructuring and Related Cost, Cost Incurred to Date
5.4 
 
Restructuring and Related Cost, Expected Cost
6.1 
 
Corrugated Packaging [Member] |
Facility Carrying Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.8 
1.7 
Restructuring and Related Cost, Cost Incurred to Date
34.2 
 
Restructuring and Related Cost, Expected Cost
35.3 
 
Corrugated Packaging [Member] |
Other Costs Related to Restructuring and Other Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
(0.3)
0.1 
Restructuring and Related Cost, Cost Incurred to Date
18.9 
 
Restructuring and Related Cost, Expected Cost
19.0 
 
Consumer Packaging [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0 
47.1 
Restructuring and Related Cost, Cost Incurred to Date
96.3 
 
Restructuring and Related Cost, Expected Cost
98.7 
 
Consumer Packaging [Member] |
Net Property, Plant and Equipment [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
1.0 
19.9 
Restructuring and Related Cost, Cost Incurred to Date
35.7 
 
Restructuring and Related Cost, Expected Cost
35.7 
 
Consumer Packaging [Member] |
Employee severance and other EE costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
(1.6)
8.7 
Restructuring and Related Cost, Cost Incurred to Date
32.1 
 
Restructuring and Related Cost, Expected Cost
32.1 
 
Consumer Packaging [Member] |
Equipment and Inventory Relocation Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.5 
0.7 
Restructuring and Related Cost, Cost Incurred to Date
5.3 
 
Restructuring and Related Cost, Expected Cost
6.4 
 
Consumer Packaging [Member] |
Facility Carrying Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.4 
0 
Restructuring and Related Cost, Cost Incurred to Date
2.8 
 
Restructuring and Related Cost, Expected Cost
4.1 
 
Consumer Packaging [Member] |
Other Costs Related to Restructuring and Other Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
(0.3)1
17.8 1
Restructuring and Related Cost, Cost Incurred to Date
20.4 1
 
Restructuring and Related Cost, Expected Cost
20.4 1
 
Land and Development [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.4 
0.9 
Restructuring and Related Cost, Cost Incurred to Date
15.6 
 
Restructuring and Related Cost, Expected Cost
16.3 
 
Land and Development [Member] |
Net Property, Plant and Equipment [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
1.8 
 
Restructuring and Related Cost, Expected Cost
1.8 
 
Land and Development [Member] |
Employee severance and other EE costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.4 
0.9 
Restructuring and Related Cost, Cost Incurred to Date
13.8 
 
Restructuring and Related Cost, Expected Cost
14.5 
 
Corporate Segment [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.7 
10.9 
Restructuring and Related Cost, Cost Incurred to Date
112.7 
 
Restructuring and Related Cost, Expected Cost
112.7 
 
Restructuring and Other Costs, Other
11.9 
18.7 
Acquisition costs
1.9 
1.6 
Divestiture costs
0.3 
5.8 
Integration costs
9.7 
11.3 
Corporate Segment [Member] |
Net Property, Plant and Equipment [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
1.4 
 
Restructuring and Related Cost, Expected Cost
1.4 
 
Corporate Segment [Member] |
Employee severance and other EE costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.2 
10.5 
Restructuring and Related Cost, Cost Incurred to Date
100.1 
 
Restructuring and Related Cost, Expected Cost
100.1 
 
Corporate Segment [Member] |
Other Costs Related to Restructuring and Other Costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and Related Cost, Incurred Cost
0.5 
0.4 
Restructuring and Related Cost, Cost Incurred to Date
11.2 
 
Restructuring and Related Cost, Expected Cost
11.2 
 
Customer Relationships [Member] |
Consumer Packaging [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Impairment of Intangible Assets, Finite-lived
 
$ 17.6 
Restructuring and Other Costs, Net Restructuring Accrual (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Restructuring Reserve [Roll Forward]
 
 
Accrual at beginning of period
$ 47.4 
$ 44.8 
Additional accruals
2.0 
19.1 
Payments
(8.6)
(10.6)
Adjustment to accruals
(3.7)
(1.1)
Foreign currency rate changes
(0.3)
0 
Accrual at end of period
$ 36.8 
$ 52.2 
Restructuring and Other Costs, Net Restructuring Costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
 
 
Additional accruals and adjustments to accruals (see table above)
$ (1.7)
$ 18.0 
Acquisition costs
1.9 
1.6 
Divestiture costs
0.3 
5.8 
Integration costs
9.7 
11.3 
Net property, plant and equipment
1.6 
21.3 
Severance and other employee costs
0.4 
2.7 
Equipment and inventory relocation costs
1.9 
1.1 
Facility carrying costs
1.2 
1.7 
Other costs
1.0 
17.5 
Restructuring and other costs
$ 16.3 
$ 81.0 
Retirement Plans (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Sep. 30, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Multiemployer pension withdrawal
$ 180.0 
$ 0 
 
Years of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal
20 years 
 
 
Credit Adjusted Risk-Free Rate Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal
3.83% 
 
 
Multiemployer Plans, Withdrawal Obligation
240.1 
 
60.1 
Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Service cost
11.6 
12.0 
 
Interest cost
50.9 
48.5 
 
Expected return on plan assets
(82.1)
(79.5)
 
Amortization of net actuarial (gain) loss
4.6 
7.2 
 
Amortization of prior service (credit) cost
1.1 
1.0 
 
Special termination benefits
0 
3.5 
 
Company defined benefit plan credit
(13.9)
(7.3)
 
Multiemployer pension withdrawal
180.0 
0 
 
Multiemployer and other plans
0.8 
1.0 
 
Net pension cost (credit)
166.9 
(6.3)
 
Contributions by employer to pension and supplemental retirement plans
8.5 
7.0 
 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Service cost
0.4 
0.6 
 
Interest cost
2.0 
1.8 
 
Amortization of net actuarial (gain) loss
0 
(0.3)
 
Amortization of prior service (credit) cost
(1.1)
(0.6)
 
Net postretirement cost
1.3 
1.5 
 
Contributions by employer to pension and supplemental retirement plans
$ 2.8 
$ 0.7 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended
Dec. 22, 2017
Dec. 31, 2017
Dec. 31, 2016
Effective tax rates
 
(1,779.80%)
4.40% 
Effective Income Tax Rate Reconciliation, Release of State Deferred Tax Liability as a Result of Equity Restructuring, Amount
 
 
$ 23.8 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent
21.00% 
 
 
Provisional Estimate of Favorable Impact on Remeasurement of Deferred Tax Balances in Connection with December 22, 2017 Income Tax Legislation
1,174.0 
 
 
Provisional Amount for One-time Transition Tax Liability in Connection with December 22, 2017 Income Tax Legislation
95.4 
 
 
Provisional Amount for One-time Transition Tax Liability in Connection with December 22, 2017 Income Tax Legislation, Net of a Release of a Previously Recorded Outside Basis Difference
$ 87.1 
 
 
Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting Information [Line Items]
 
 
Net sales
$ 3,894.0 
$ 3,447.2 
Multiemployer pension withdrawal
(180.0)
0 
Land and Development impairment
(27.6)
0 
Restructuring and other costs
(16.3)
(81.0)
Interest expense, net
(64.8)
(54.1)
Loss on extinguishment of debt
(1.0)
0 
Other income, net
2.5 
1.1 
Income before income taxes
60.3 
82.1 
Operating Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
3,953.3 
3,508.5 
Net sales
3,894.0 
3,447.2 
Segment Income (Loss)
355.8 
230.8 
Intersegment Eliminations [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
59.3 
61.3 
Corporate, Non-Segment [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Multiemployer pension withdrawal
(180.0)
0 
Land and Development impairment
(27.6)
0 
Non-allocated expenses
(8.3)
(14.7)
Interest expense, net
(64.8)
(54.1)
Loss on extinguishment of debt
(1.0)
0 
Other income, net
2.5 
1.1 
Corrugated Packaging [Member] |
Operating Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
2,178.6 
1,943.6 
Net sales
2,141.9 
1,906.9 
Segment Income (Loss)
264.1 
141.5 
Corrugated Packaging [Member] |
Intersegment Eliminations [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
36.7 
36.7 
Consumer Packaging [Member] |
Operating Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
1,763.3 
1,510.9 
Net sales
1,740.7 
1,486.3 
Segment Income (Loss)
92.4 
87.6 
Consumer Packaging [Member] |
Intersegment Eliminations [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
22.6 
24.6 
Land and Development [Member] |
Operating Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
11.4 
54.0 
Net sales
11.4 
54.0 
Segment Income (Loss)
$ (0.7)
$ 1.7 
Inventories (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Finished goods and work in process
$ 939.1 
$ 905.0 
Raw materials
661.4 
614.2 
Spare parts and supplies
362.3 
360.7 
Inventories at FIFO cost
1,962.8 
1,879.9 
LIFO reserve
(93.6)
(82.6)
Net inventories
$ 1,869.2 
$ 1,797.3 
Assets Held for Sale (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Total current assets held for sale
$ 162.4 
$ 173.6 
Land and Development Portfolio Assets [Member]
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Total current assets held for sale
$ 144.0 
$ 150.4 
Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Sep. 30, 2017
Property, Plant and Equipment [Line Items]
 
 
Land and buildings
$ 2,044.6 
$ 2,034.3 
Machinery and equipment
11,508.2 
11,349.7 
Forestlands and mineral rights
179.6 
208.3 
Transportation equipment
30.8 
30.7 
Leasehold improvements
71.6 
59.5 
Property, plant and equipment, at cost
13,834.8 
13,682.5 
Less: accumulated depreciation, depletion and amortization
(4,770.9)
(4,564.2)
Property, plant and equipment, net
$ 9,063.9 
$ 9,118.3 
Fair Value by Balance Sheet Grouping (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Sep. 29, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Land and Development impairment
$ 27.6 
$ 0 
 
Maximum eligible receivables that may be sold
 
 
490.0 
Receivable from financial institution at beginning of fiscal year
24.9 
13.8 
 
Receivables sold to the financial institution and derecognized
385.6 
381.5 
 
Receivables collected by financial institution
(369.2)
(342.3)
 
Cash proceeds from financial institution
(22.3)
(42.6)
 
Receivable from financial institution at December 31,
19.0 
10.4 
 
Estimated loss on sale of accounts receivable in a fiscal year
10 
 
 
Consumer Packaging [Member] |
Customer Relationships [Member]
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Impairment of Intangible Assets, Finite-lived
 
$ 17.6 
 
Debt (Details) (USD $)
Dec. 31, 2017
Sep. 30, 2017
Dec. 31, 2017
Notes Due Fiscal 2019 to 2022 [Member]
Unsecured Debt [Member]
Sep. 30, 2017
Notes Due Fiscal 2019 to 2022 [Member]
Unsecured Debt [Member]
Dec. 31, 2017
Term Loan Facilities [Member]
Unsecured Debt [Member]
Sep. 30, 2017
Term Loan Facilities [Member]
Unsecured Debt [Member]
Dec. 31, 2017
Revolving Credit and Swing Facilities [Member]
Unsecured Debt [Member]
Sep. 30, 2017
Revolving Credit and Swing Facilities [Member]
Unsecured Debt [Member]
Dec. 31, 2017
Receivables Facility [Member]
Secured Debt [Member]
Sep. 30, 2017
Receivables Facility [Member]
Secured Debt [Member]
Jul. 22, 2016
Receivables Facility [Member]
Secured Debt [Member]
Dec. 31, 2017
Commercial Paper [Member]
Unsecured Debt [Member]
Oct. 31, 2017
Commercial Paper [Member]
Unsecured Debt [Member]
Sep. 30, 2017
Commercial Paper [Member]
Unsecured Debt [Member]
Dec. 31, 2017
Notes Due Fiscal 2023 to 2027 [Member]
Unsecured Debt [Member]
Sep. 30, 2017
Notes Due Fiscal 2023 to 2027 [Member]
Unsecured Debt [Member]
Dec. 31, 2017
Notes Due Fiscal 2030 to 2033 [Member]
Unsecured Debt [Member]
Sep. 30, 2017
Notes Due Fiscal 2030 to 2033 [Member]
Unsecured Debt [Member]
Dec. 31, 2017
Notes Due Fiscal 2037 to 2047 [Member]
Unsecured Debt [Member]
Sep. 30, 2017
Notes Due Fiscal 2037 to 2047 [Member]
Unsecured Debt [Member]
Dec. 31, 2017
Capital Lease Obligations [Member]
Secured Debt [Member]
Sep. 30, 2017
Capital Lease Obligations [Member]
Secured Debt [Member]
Dec. 31, 2017
Supplier Financing and Commercial Card Programs [Member]
Unsecured Debt [Member]
Sep. 30, 2017
Supplier Financing and Commercial Card Programs [Member]
Unsecured Debt [Member]
Dec. 31, 2017
International and Other Debt [Member]
Sep. 30, 2017
International and Other Debt [Member]
Dec. 31, 2017
Unsecured Debt [Member]
Wells Fargo Bank, NA Credit Facility [Member]
Oct. 31, 2017
Unsecured Debt [Member]
Wells Fargo Bank, NA Credit Facility [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt
$ 6,610,400,000 
$ 6,554,800,000 
$ 1,481,100,000 
$ 1,484,500,000 
$ 1,138,700,000 
$ 1,622,700,000 
$ 537,900,000 
$ 436,400,000 
$ 25,000,000 
$ 110,000,000 
 
$ 554,700,000 
 
$ 0 
$ 1,369,200,000 
$ 1,368,800,000 
$ 972,700,000 
$ 975,500,000 
$ 178,700,000 
$ 178,800,000 
$ 174,400,000 
$ 177,000,000 
$ 116,600,000 
$ 130,300,000 
$ 61,400,000 
$ 70,800,000 
 
 
Current portion of debt
1,244,600,000 
608,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt due after one year
5,365,800,000 
5,946,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Facility, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
450,000,000 
Receivables backed financing, maximum borrowing amount
 
 
 
 
 
 
 
 
 
 
700,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Maximum Borrowing Capacity, Amount
 
 
 
 
 
 
 
 
564,700,000 
577,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and Leases Receivable, Collateral for Secured Borrowings
 
 
 
 
 
 
 
 
825,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate Principal Amount of Short-term Unsecured Commercial Paper Program, Maximum
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, Weighted Average Interest Rate
 
 
 
 
 
 
 
 
 
 
 
1.97% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.69% 
 
Fair value of debt
$ 6,800,000,000 
$ 6,800,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Commitments and Contingencies [Line Items]
 
Accrual for Environmental Loss Contingencies
$ 14.3 
Guarantor Obligations, Estimated Exposure, Undiscounted
50 
Number of Lawsiuts the Company Has Been Named a Defendant in Asbestos-related Personal Injury Litigation
750 
Guarantor Obligations, Current Carrying Value
11.8 
Other Long Term Liabilities [Member]
 
Commitments and Contingencies [Line Items]
 
Accrual for Environmental Loss Contingencies
9.3 
Other Current Liabilities [Member]
 
Commitments and Contingencies [Line Items]
 
Accrual for Environmental Loss Contingencies
$ 5.0 
Equity and Other Comprehensive Income (Details) (Common Stock [Member])
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Jul. 1, 2015
Common Stock [Member]
 
 
Stock Repurchase Program, Number of Shares Authorized to be Repurchased
 
40.0 
Authorized Share Repurchase as a Percentage of Common Stock Outstanding
 
15.00% 
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased
24.7 
 
Treasury Stock, Shares, Acquired
0 
 
Equity and Other Comprehensive Income Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Balance at beginning of period
$ (457.3)1
$ (626.4)1
Other comprehensive (loss) income before reclassifications
(44.0)1
(120.2)1
Amounts reclassified from accumulated other comprehensive loss (income)
3.7 1
4.5 1
Net current period other comprehensive income (loss)
(40.3)1
(115.7)1
Balance at end of period
(497.6)1
(742.1)1
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Balance at beginning of period
(0.7)1
(0.2)1
Other comprehensive (loss) income before reclassifications
(0.1)1
0.1 1
Amounts reclassified from accumulated other comprehensive loss (income)
0.5 1
0 1
Net current period other comprehensive income (loss)
0.4 1
0.1 1
Balance at end of period
(0.3)1
(0.1)1
Accumulated Defined Benefit Plans Adjustment [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Balance at beginning of period
(462.5)1
(523.8)1
Other comprehensive (loss) income before reclassifications
(2.7)1
(10.1)1
Amounts reclassified from accumulated other comprehensive loss (income)
3.2 1
4.5 1
Net current period other comprehensive income (loss)
0.5 1
(5.6)1
Balance at end of period
(462.0)1
(529.4)1
Accumulated Translation Adjustment [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Balance at beginning of period
5.2 1
(102.4)1
Other comprehensive (loss) income before reclassifications
(42.0)1
(110.2)1
Amounts reclassified from accumulated other comprehensive loss (income)
0 1
0 1
Net current period other comprehensive income (loss)
(42.0)1
(110.2)1
Balance at end of period
(36.8)1
(212.6)1
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Balance at beginning of period
0.7 
 
Other comprehensive (loss) income before reclassifications
0.8 
 
Amounts reclassified from accumulated other comprehensive loss (income)
0 
 
Net current period other comprehensive income (loss)
0.8 
 
Balance at end of period
$ 1.5 
 
Equity and Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Net actuarial loss arising during the period
$ 0 
$ (10.2)
Amortization and settlement recognition of net actuarial loss, included in pension cost
3.3 
4.4 
Amortization of prior service (cost) credit, Net of Tax
0 
0.2 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax
0.5 
0 
Parent [Member]
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Net actuarial loss arising during the period
 
10.1 
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax
 
(3.7)
Amortization of net actuarial loss, Pre-Tax Amount
(4.4)1 2
(6.4)1 2
Amortization of net actuarial loss, Tax
1.2 1 2
2.2 1 2
Amortization and settlement recognition of net actuarial loss, included in pension cost
(3.2)1 2
(4.2)1 2
Amortization of prior service (cost) credit, Pre-Tax Amount
0 1 2
(0.4)1 2
Amortization of prior service (cost) credit, Tax
0 1 2
0.1 1 2
Amortization of prior service (cost) credit, Net of Tax
0 1 2
(0.3)1 2
Defined Benefit Plans, before Tax
(4.4)1
(6.8)1
Defined Benefit Plans, Tax
1.2 1
2.3 1
Defined Benefit Plans, Net of Tax
(3.2)1
(4.5)1
Total Reclassifications From Other Comprehensive Income Before Tax
(5.1)1
(6.8)1
Total Reclassifications From Other Comprehensive Income Tax Portion
1.4 1
2.3 1
Total Reclassifications From Other Comprehensive Income Net Of Tax
(3.7)1
(4.5)1
Foreign Exchange Contract [Member] |
Parent [Member]
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax
(0.7)1 3
0 1 3
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax
0.2 1 3
0 1 3
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax
$ (0.5)1 3
$ 0 1 3
Minimum [Member]
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Effective Tax Rate, Net of Tax Components of Other Comprehensive Income
28.00% 
30.00% 
Maximum [Member]
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Effective Tax Rate, Net of Tax Components of Other Comprehensive Income
29.00% 
31.00% 
Earnings per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
 
 
Net income attributable to common stockholders
$ 1,135.1 
$ 80.9 
Less: Distributed and undistributed income available to participating securities, Basic
(0.2)
0 
Net income attributable to common stockholders, basic
1,134.9 
80.9 
Less: Distributed and undistributed income available to participating securities, Diluted
(0.2)
0 
Net income attributable to common stockholders, diluted
$ 1,134.9 
$ 80.9 
Basic weighted average shares outstanding
255.0 
251.2 
Effect of dilutive stock options and non-participating securities
4.2 
4.1 
Diluted weighted average shares outstanding
259.2 
255.3 
Basic earnings per share attributable to common stockholders
$ 4.45 
$ 0.32 
Diluted earnings per share attributable to common stockholders
$ 4.38 
$ 0.32 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
0.1 
0.6 
Smurfit Stone [Member]
 
 
Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
 
 
Weighted average shares reserved
0.2 
0.3 
Subsequent Events (Details) (Subsequent Event [Member], USD $)
Jan. 29, 2018
KapStone Acquisition [Member]
Jan. 5, 2018
Plymouth Packaging [Member]
T
Subsequent Event [Line Items]
 
 
Business Acquisition, Share Price
$ 35.00 
 
Debt purchased in connection with an acquisition
$ 1,360,000,000 
 
Estimated Enterprise Value of Acquisition
4,900,000,000 
 
Business Acquisition, Cost of Acquired Entity, Preliminary Purchase Price
 
197,600,000 
Ratio of KapStone Shares to WestRock Shares
49.81% 
 
Maximum Percentage of Outstanding KapStone Shares to Elect WestRock Stock Consideration
25.00% 
 
Percentage of Sales from Box on Demand Systems
 
70.00% 
Percentage of Sales from Traditional Corrugated Box Packaging
 
30.00% 
Annual Tons of Containerboard used by Plymouth
 
60,000 
Maximum Tax Make-Whole Payment Related to Stepping Up Assets for Tax Purposes
 
$ 8,500,000