WESTROCK CO, 10-K filed on 11/17/2023
Annual Report
v3.23.3
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Nov. 03, 2023
Mar. 31, 2023
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Sep. 30, 2023    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Entity Registrant Name WESTROCK COMPANY    
Entity Central Index Key 0001732845    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Title of 12(b) Security Common Stock, par value $0.01 per share    
Entity Incorporation, State or Country Code DE    
Security Exchange Name NYSE    
Entity Interactive Data Current Yes    
Current Fiscal Year End Date --09-30    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Public Float     $ 7,769
Entity Common Stock, Shares Outstanding   256,469,100  
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Small Business false    
Entity Emerging Growth Company false    
Trading Symbol WRK    
Entity File Number 001-38736    
Entity Tax Identification Number 37-1880617    
Entity Address, Address Line One 1000 Abernathy Road NE    
Entity Address, City or Town Atlanta    
Entity Address, State or Province GA    
Entity Address, Postal Zip Code 30328    
City Area Code 770    
Local Phone Number 448-2193    
Document Annual Report true    
Document Transition Report false    
Documents Incorporated by Reference

Portions of the definitive Proxy Statement for the Annual Meeting of Stockholders to be held on January 26, 2024 are incorporated by reference in Part III.

    
Auditor Firm ID 42    
Auditor Location Atlanta, Georgia    
Auditor Name Ernst & Young LLP    
v3.23.3
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Income Statement [Abstract]      
Net sales $ 20,310.0 $ 21,256.5 $ 18,746.1
Cost of goods sold 16,725.5 17,237.5 15,320.8
Gross profit 3,584.5 4,019.0 3,425.3
Selling, general and administrative excluding intangible amortization 2,014.4 1,932.6 1,759.3
Selling, general and administrative intangible amortization expense 341.5 350.4 357.1
Multiemployer pension withdrawal (income) expense (12.1) 0.2 (2.9)
Restructuring and other costs, net 859.2 383.0 30.6
Impairment of goodwill and mineral rights 1,893.0 26.0  
Operating (loss) profit (1,511.5) 1,326.8 1,281.2
Interest expense, net (417.9) (318.8) (372.3)
Gain (Loss) on extinguishment of debt 10.5 (8.5) (9.7)
Pension and other postretirement non-service (cost) income (21.8) 157.4 134.9
Other (expense) income, net (6.1) (11.0) 10.9
Equity in income of unconsolidated entities 3.4 72.9 40.9
Gain on sale of RTS and Chattanooga 238.8    
(Loss) income before income taxes (1,704.6) 1,218.8 1,085.9
Income tax benefit (expense) 60.4 (269.6) (243.4)
Consolidated net (loss) income (1,644.2) 949.2 842.5
Less: Net income attributable to noncontrolling interests (4.8) (4.6) (4.2)
Net (loss) income attributable to common stockholders $ (1,649.0) $ 944.6 $ 838.3
Basic (loss) earnings per share attributable to common stockholders $ (6.44) $ 3.64 $ 3.16
Diluted (loss) earnings per share attributable to common stockholders $ (6.44) $ 3.61 $ 3.13
v3.23.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Statement of Comprehensive Income [Abstract]      
Consolidated net (loss) income $ (1,644.2) $ 949.2 $ 842.5
Other comprehensive income (loss), net of tax:      
Foreign currency translation gain (loss) 354.9 (241.5) 124.3
Reclassification of previously unrealized net foreign currency loss upon consolidation of equity investment 29.0    
Reclassification of previously unrealized net foreign currency gain upon sale of RTS (2.3)    
Derivatives:      
Deferred loss on cash flow hedges (50.2) (10.3) (0.1)
Reclassification adjustment of net loss on cash flow hedges included in earnings 54.4 1.4 5.5
Defined benefit pension and other postretirement benefit plans:      
Net actuarial gain (loss) arising during period 120.8 (216.3) 165.6
Amortization and settlement recognition of net actuarial loss, included in pension and postretirement cost 40.1 6.4 25.5
Prior service cost arising during period (1.5) (0.2) (4.2)
Amortization and curtailment recognition of prior service cost, included in pension and postretirement cost 5.7 6.1 4.5
Reclassification of net pension adjustment upon sale of RTS 7.9    
Other comprehensive income (loss), net of tax 558.8 (454.4) 321.1
Comprehensive (loss) income (1,085.4) 494.8 1,163.6
Less: Comprehensive income attributable to noncontrolling interests (7.9) (5.4) (4.5)
Comprehensive (loss) income attributable to common stockholders $ (1,093.3) $ 489.4 $ 1,159.1
v3.23.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Current assets:    
Cash and cash equivalents $ 393.4 $ 260.2
Accounts receivable (net of allowances of $60.2 and $66.3) 2,591.9 2,683.9
Inventories 2,331.5 2,317.1
Other current assets (amount related to SPEs of $862.1 and $0) 1,584.8 689.8
Assets held for sale 91.5 34.4
Total current assets 6,993.1 5,985.4
Property, plant and equipment, net 11,063.2 10,081.4
Goodwill 4,248.7 5,895.2
Intangibles, net 2,576.2 2,920.6
Prepaid pension asset 618.3 440.3
Other noncurrent assets (amount related to SPEs of $382.7 and $1,253.0) 1,944.2 3,082.6
Total assets 27,443.7 28,405.5
Current liabilities:    
Current portion of debt 533.0 212.2
Accounts payable 2,123.9 2,252.1
Accrued compensation and benefits 524.9 627.9
Other current liabilities (amount related to SPEs of $776.7 and $0) 1,737.6 810.6
Total current liabilities 4,919.4 3,902.8
Long-term debt due after one year 8,050.9 7,575.0
Pension liabilities, net of current portion 191.2 189.4
Postretirement benefit liabilities, net of current portion 99.1 105.4
Deferred income taxes 2,433.2 2,761.9
Other noncurrent liabilities (amount related to SPEs of $330.2 and $1,117.8) 1,652.2 2,445.8
Commitments and contingencies (Note 19)
Redeemable noncontrolling interests   5.5
Equity:    
Preferred stock, $0.01 par value; 30.0 million shares authorized; no shares outstanding 0.0 0.0
Common stock, $0.01 par value; 600.0 million shares authorized; 256.4 million and 254.4 million shares outstanding at September 30, 2023 and September 30, 2022, respectively 2.6 2.5
Capital in excess of par value 10,698.5 10,639.4
Retained earnings 278.2 2,214.4
Accumulated other comprehensive loss [1] (898.6) (1,454.3)
Total stockholders' equity 10,080.7 11,402.0
Noncontrolling interests 17.0 17.7
Total equity 10,097.7 11,419.7
Total liabilities and equity $ 27,443.7 $ 28,405.5
[1] All amounts are net of tax and noncontrolling interest.
v3.23.3
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Statement of Financial Position [Abstract]    
Allowance for Doubtful Accounts Receivable, Current $ 60.2 $ 66.3
Preferred Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Preferred Stock, Shares Authorized 30,000,000.0 30,000,000.0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Common Stock, Shares Authorized 600,000,000.0 600,000,000.0
Common Stock, Shares, Outstanding 256,400,000 254,400,000
Other current assets amount related to SPEs $ 862.1 $ 0.0
Other noncurrent assets amount related to SPEs 382.7 1,253.0
Other current liabilities amount related to SPEs 776.7 0.0
Other noncurrent liabilities amount related to SPEs $ 330.2 $ 1,117.8
v3.23.3
CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
$ in Millions
Total
Common Stock [Member]
Capital in Excess of Par Value [Member]
Retained Earnings [Member]
Retained Earnings [Member]
Adoption of Accounting Standards [Member]
Accumulated Other Comprehensive Loss [Member]
Noncontrolling Interests [Member]
Beginning balance at Sep. 30, 2020   260,400,000          
Beginning balance at Sep. 30, 2020   $ 2.6 $ 10,916.3 $ 1,031.6   $ (1,319.9) $ 16.9 [1]
Issuance of common stock, net of stock received for tax withholdings   7,100,000          
Issuance of common stock, net of stock received for tax withholdings   $ 0.1 158.8 (0.5)      
Compensation expense under share-based plans     88.5        
Adoption of accounting standards [2]         $ (3.8)    
Net (loss) income attributable to common stockholders       838.3      
Dividends declared (per share - $1.10, $1.00 and $0.88) [3]       (236.3)      
Purchases of common stock (2,500,000) (2,500,000) [4]          
Purchases of common stock $ (125.1)   (103.7) [4] (21.4) [4]      
Other     (1.1)        
Other comprehensive income (loss), net of tax 320.8         320.8  
Net (loss) income 4.2           1.7 [1]
Distributions and adjustments to noncontrolling interests [1]             1.1
Ending balance at Sep. 30, 2021   265,000,000          
Ending balance at Sep. 30, 2021 11,690.0 $ 2.7 11,058.8 1,607.9   (999.1) 19.7 [1]
Total Stockholders’ equity at Sep. 30, 2021 $ 11,670.3            
Issuance of common stock, net of stock received for tax withholdings   2,000,000.0          
Issuance of common stock, net of stock received for tax withholdings     11.9 (2.1)      
Compensation expense under share-based plans     93.4        
Net (loss) income attributable to common stockholders       944.6      
Dividends declared (per share - $1.10, $1.00 and $0.88) [3]       (263.0)      
Purchases of common stock (12,600,000) (12,600,000) [4]          
Purchases of common stock $ (597.5) $ (0.2) [4] (524.3) [4] (73.0) [4]      
Other     (0.4)        
Other comprehensive income (loss), net of tax (455.2) [5]         (455.2)  
Net (loss) income $ 4.6           (1.5) [1]
Distributions and adjustments to noncontrolling interests [1]             (0.5)
Ending balance at Sep. 30, 2022 254,400,000 254,400,000          
Ending balance at Sep. 30, 2022 $ 11,419.7 $ 2.5 10,639.4 2,214.4   (1,454.3) 17.7 [1]
Total Stockholders’ equity at Sep. 30, 2022 $ 11,402.0            
Issuance of common stock, net of stock received for tax withholdings   2,000,000.0          
Issuance of common stock, net of stock received for tax withholdings   $ 0.1 (5.6)        
Compensation expense under share-based plans     64.3        
Net (loss) income attributable to common stockholders       (1,649.0)      
Dividends declared (per share - $1.10, $1.00 and $0.88) [3]       (287.2)      
Purchases of common stock 0            
Other     0.4        
Other comprehensive income (loss), net of tax $ 555.7 [5]         555.7  
Net (loss) income $ 4.8           (0.7) [1]
Ending balance at Sep. 30, 2023 256,400,000 256,400,000          
Ending balance at Sep. 30, 2023 $ 10,097.7 $ 2.6 $ 10,698.5 $ 278.2   $ (898.6) $ 17.0 [1]
Total Stockholders’ equity at Sep. 30, 2023 $ 10,080.7            
[1] Excludes amounts related to contingently redeemable noncontrolling interests, which are separately classified outside of permanent equity in the consolidated balance sheets.
[2] For fiscal 2021, the amount relates to the adoption of ASU 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments”.
[3] Includes cash dividends and dividend equivalent units declared on certain restricted stock units and restricted stock.
[4] In fiscal 2022, we repurchased approximately 12.6 million shares of our Common Stock for an aggregate cost of $597.5 million. In fiscal 2021, we repurchased approximately 2.5 million shares of our Common Stock for an aggregate cost of $125.1 million (a portion of which settled after September 30, 2021).
[5] All amounts are net of tax and noncontrolling interest.
v3.23.3
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Cash dividends paid per share $ 1.10 $ 1.00 $ 0.88
Purchases of common stock 0 12,600,000 2,500,000
Aggregate cost for purchase of common stock   $ 597.5 $ 125.1
Common Stock [Member]      
Purchases of common stock   12,600,000 2,500,000
Aggregate cost for purchase of common stock   $ 597.5 $ 125.1
v3.23.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Operating activities:      
Consolidated net (loss) income $ (1,644.2) $ 949.2 $ 842.5
Adjustments to reconcile consolidated net (loss) income to net cash provided by operating activities:      
Depreciation, depletion and amortization 1,535.8 1,488.6 1,460.0
Deferred income tax benefit (475.2) (98.2) (38.3)
Share-based compensation expense 64.2 93.3 88.6
401(k) match and company contribution in common stock   2.5 136.1
Pension and other postretirement funding (more) less than cost (income) 16.5 (135.6) (111.5)
Cash surrender value increase in excess of premiums paid (38.2) (2.0) (49.4)
Equity in income of unconsolidated entities (3.4) (72.9) (40.9)
Gain on sale of RTS and Chattanoonga (238.8)    
Gain on sale of other businesses (11.2)   (16.5)
Gain on sale of investment     (16.0)
Impairment of goodwill and mineral rights 1,893.0 26.0  
Other impairment adjustments 637.1 325.5 34.6
(Gain) loss on disposal of plant, equipment and other, net (3.2) (17.5) 3.7
Other (34.4) (0.4) 13.8
Change in operating assets and liabilities, net of acquisitions and divestitures:      
Accounts receivable 407.1 (161.5) (428.9)
Inventories 107.8 (310.4) (200.0)
Other assets (263.9) 86.6 (372.6)
Accounts payable (280.3) 79.5 430.3
Income taxes 91.0 16.9 0.7
Accrued liabilities and other 68.2 (249.2) 543.7
Net cash provided by operating activities 1,827.9 2,020.4 2,279.9
Investing activities:      
Capital expenditures (1,142.1) (862.6) (815.5)
Cash paid for purchase of businesses, net of cash acquired (853.5) (7.0)  
Proceeds from corporate owned life insurance 42.2 60.8 44.9
Proceeds from sale of RTS and Chattanooga, net 318.2    
Proceeds from sale of other businesses 27.6   58.5
Proceeds from currency forward contracts 23.2    
Proceeds from the sale of unconsolidated entities 53.4    
Proceeds from sale of investment     29.5
Proceeds from sale of property, plant and equipment 26.8 28.2 6.3
Proceeds from property, plant and equipment insurance settlement   1.7 3.2
Other (3.0) 2.9 (2.9)
Net cash used for investing activities (1,507.2) (776.0) (676.0)
Financing activities:      
Additions to revolving credit facilities 52.9 382.4 435.0
Repayments of revolving credit facilities (344.2) (378.3) (415.0)
Additions to debt 1,836.4 888.2 259.9
Repayments of debt (1,720.8) (1,376.5) (1,544.3)
Changes in commercial paper, net 283.9    
Other debt (repayments) additions, net (7.1) 31.5 23.1
Purchases of common stock   (600.0) (122.4)
Cash dividends paid to stockholders (281.3) (259.5) (233.8)
Other (13.3) 30.9 (17.1)
Net cash used for financing activities (193.5) (1,281.3) (1,580.4)
Effect of exchange rate changes on cash, cash equivalents and restricted cash 6.0 6.2 16.3
Increase (Decrease) in cash, cash equivalents and restricted cash 133.2 (30.7) 39.8
Cash, cash equivalents and restricted cash at beginning of period 260.2 290.9 251.1
Cash, cash equivalents and restricted cash at end of period $ 393.4 $ 260.2 $ 290.9
v3.23.3
Description of Business and Summary of Significant Accounting Policies
 12 Months Ended
Sep. 30, 2023
Description Of Business And Summary Of Significant Accounting Policies [Abstract]  
Description of Business and Summary of Significant Accounting Policies

Note 1. Description of Business and Summary of Significant Accounting Policies

Description of Business

Unless the context otherwise requires, “we”, “us”, “our”, “WestRock” and “the Company” refer to WestRock Company, its wholly-owned subsidiaries and its partially-owned consolidated subsidiaries.

WestRock is a multinational provider of sustainable fiber-based paper and packaging solutions. We partner with our customers to provide differentiated, sustainable paper and packaging solutions that help them win in the marketplace. Our team members support customers around the world from our operating and business locations in North America, South America, Europe, Asia and Australia.

 

On September 29, 2023, we completed the sale of our Seven Hills mill joint venture in Lynchburg, VA and received $11.0 million of cash proceeds, subject to certain customary adjustments, and recorded an aggregate pre-tax net gain on sale of $4.3 million; $7.6 million was recorded in the Equity in income of unconsolidated entities line item in our consolidated statements of operations that was partially offset by a $3.3 million loss on sale of property, plant and equipment that was recorded in cost of goods sold.

 

On September 8, 2023, we sold our interior partitions converting operations (our ownership interest in RTS Packaging, LLC) and our Chattanooga, TN uncoated recycled paperboard mill to our joint venture partner and received $318.2 million of net cash proceeds, including a preliminary working capital adjustment and other customary adjustments. We recorded a pre-tax gain on sale of $238.8 million which is recorded in "Gain on sale of RTS and Chattanooga" in our consolidated statements of operations, excluding divestiture costs. Divestiture costs are expensed as incurred and recorded within Restructuring and other costs, net. See “Note 5. Restructuring and Other Costs, Net” for additional information.

 

On June 16, 2023, we sold our ownership interest in an unconsolidated displays joint venture for $43.8 million in cash and recorded a pre-tax gain on sale of $19.3 million recorded in the Equity in income of unconsolidated entities line item in our consolidated statements of operations including a de minimis adjustment in the fourth quarter.

On December 1, 2022, we completed our acquisition of the remaining 67.7% interest in Grupo Gondi for $969.8 million in cash and the assumption of debt. We accounted for this acquisition as a business combination resulting in its consolidation. See “Note 3. Acquisitions” for additional information.

On December 1, 2022, we sold our Eaton, IN, and Aurora, IL uncoated recycled paperboard mills for $50 million, subject to a working capital adjustment. We received proceeds of $25 million, a preliminary working capital settlement of $0.9 million and are financing the remaining $25 million. During the third quarter of fiscal 2023, we recorded a de minimis final working capital adjustment. Pursuant to the terms of the sale agreement, we transferred control of these mills to the buyer and recorded a pre-tax gain on sale of $11.2 million in Other (expense) income, net in our consolidated statements of operations.

Transaction Agreement with Smurfit Kappa

 

On September 12, 2023, we entered into a Transaction Agreement with Smurfit Kappa, Cepheidway Limited (to be renamed Smurfit WestRock plc), ListCo and Merger Sub. The Transaction Agreement provides, among other things, and subject to the satisfaction or waiver of the conditions set forth therein, that (a) pursuant to the Scheme each issued ordinary share of Smurfit Kappa will be exchanged for one ListCo Share, as a result of which Smurfit Kappa will become a wholly owned subsidiary of ListCo, and (b) following the implementation of the Scheme, Merger Sub will merge with and into the Company, with the Company surviving the Merger as a wholly owned subsidiary of ListCo. As a result of the Merger, each share of our Common Stock, with certain exceptions, will be converted into the right to receive one ListCo Share and $5.00 in cash. All shares owned by the Company, any Company subsidiary, Smurfit Kappa, Merger Sub or any of their respective subsidiaries will be cancelled and will cease to exist, and no consideration will be delivered in exchange therefor. The Transaction Agreement also provides a mechanism for converting outstanding Company equity awards to ListCo awards. The Transaction is

expected to close in the second calendar quarter of 2024, conditional upon regulatory approvals, shareholder approvals and satisfaction of other closing conditions. We expect that the ListCo shares will be (i) registered under the Securities Exchange Act of 1934, as amended, and listed on the NYSE and (ii) listed on the FCA and admitted to trading on the main market for listed securities of LSE. Shares of our Common Stock will be delisted from the NYSE and deregistered under the Exchange Act.

 

The Transaction is subject to certain conditions set forth in the Transaction Agreement, including, but not limited to: certain regulatory clearances, approval by the shareholders and stockholders of both companies (75% or more for Smurfit Kappa shareholders and a majority for our stockholders), the registration statement for the offer of ListCo Shares being declared effective by the SEC and the approval of the ListCo Shares for listing on the NYSE.

 

The Transaction Agreement contains certain termination rights for both parties. Upon termination of the Transaction Agreement under specified circumstances, including if our board changes or withdraws its recommendation to our stockholders or willfully breaches its non-solicitation covenant, we will be required to make a payment to Smurfit Kappa equal to $147 million in cash. If the Transaction Agreement is terminated in connection with the failure to obtain our stockholders’ approval, we will be required to make a payment to Smurfit Kappa equal to $57 million in cash. Smurfit Kappa will be required to make payments to us in connection with the termination of the Transaction Agreement under specified circumstances.

 

The foregoing summary of the Transaction Agreement does not purport to be complete and is subject to and qualified in its entirety by the full text of the Transaction Agreement.

Basis of Presentation and Principles of Consolidation

The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. Actual results may differ from these estimates.

The consolidated financial statements include the accounts of WestRock and our partially owned subsidiaries for which we have a controlling financial interest, including variable interest entities for which we are the primary beneficiary.

Equity investments in which we exercise significant influence but do not control and are not the primary beneficiary are accounted for as equity method investments. Investments without a readily determinable value in which we are not able to exercise significant influence over the investee are accounted for under the measurement alternative (i.e., cost less impairment, adjusted for any qualifying observable price changes). Our investments accounted for under the equity method or the measurement alternative method are not material either individually or in the aggregate. We have eliminated all significant intercompany accounts and transactions. See “Note 8. Segment Information” for additional information on our equity method investments.

Reclassifications and Adjustments

 

Certain amounts in prior periods have been reclassified to conform with the current year presentation.

Immaterial Presentation Correction

 

In the third quarter of fiscal 2023, we evaluated our financing facilities, determined that the borrowings and repayments for certain facilities should be presented gross instead of net within financing cash flow activities on our consolidated statements of cash flows, and corrected the presentation of relevant prior period amounts. The correction increased both Additions to debt and Repayments of debt by $385.0 million and increased both Additions to revolving credit facilities and Repayments of revolving credit facilities by $5.0 million in fiscal 2022, resulting in Additions to debt of $888.2 million, Repayments of debt of $1,376.5 million, Additions to revolving credit facilities of $382.4 million and Repayments of revolving credit facilities of $378.3 million, with no change to Net cash used for financing activities. The correction has no effect on the previously reported net cash flows from operating or investing activities. Additionally, the correction did not impact cash flows reported for fiscal 2021. Management does not believe the correction to be material to our current or previously filed financial statements.

Ransomware Incident

As previously disclosed, on January 23, 2021, we detected a ransomware incident impacting certain of our systems. Promptly upon our detection of this incident, we initiated response and containment protocols and our security teams, supplemented by leading cyber defense firms, worked to remediate this incident. These actions included taking preventative measures, such as shutting down certain systems out of an abundance of caution, as well as taking steps to supplement existing security monitoring, scanning and protective measures. In our Form 10-Q for the second quarter of fiscal 2021, we announced that all systems were back in service.

We undertook extensive efforts to identify, contain and recover from this incident quickly and securely. Our teams worked to maintain our business operations and minimize the impact on our customers and team members. In our Form 10-Q for the second quarter of fiscal 2021, we announced that all systems were back in service. All of our mills and converting locations began producing and shipping paper and packaging at pre-ransomware levels in March 2021 or earlier. Our mill system production was approximately 115,000 tons lower than planned for the quarter ended March 31, 2021 as a result of this incident. While shipments from some of our facilities initially lagged behind production levels, this gap closed as systems were restored during the second quarter of fiscal 2021. In locations where technology issues were identified, we used alternative methods, in many cases manual methods, to process and ship orders. We systematically brought our information systems back online in a controlled, phased approach.

We estimated the pre-tax income impact of the lost sales and operational disruption of this incident on our operations in the second quarter of fiscal 2021 was approximately $50 million, as well as approximately $20 million of ransomware recovery costs, primarily professional fees. In addition, we incurred approximately $9 million of ransomware recovery costs in the third quarter of fiscal 2021. In the fourth quarter of fiscal 2021, we recorded a $15 million credit for preliminary recoveries – approximately $10 million as a reduction of SG&A expense excluding intangible amortization and approximately $5 million as a reduction of Cost of goods sold. In fiscal 2022, we recorded a $57.2 million credit for ransomware insurance recoveries, recording $50.6 million of business interruption recoveries as a reduction of Cost of goods sold and $6.6 million of direct cost recoveries as a reduction of SG&A expense excluding intangible amortization. In fiscal 2023, we recorded a $10.0 million credit for ransomware insurance recoveries as a reduction of Cost of goods sold. We present ransomware recoveries received as Net cash provided by operating activities in our consolidated statements of cash flows. Our recoveries related to the ransomware incident are now complete.

In order to contain and remediate the cybersecurity incident, we engaged a leading cybersecurity defense firm to complete a forensics investigation and performed short-term mitigation actions in the latter half of 2021. Mitigations performed included the execution of a company-wide password reset and the deployment of security tooling across all our servers and workstations. Additionally, to address longer term security objectives, we developed a multi-year security and resiliency roadmap, aimed to strengthen the company’s ability to detect, respond, and recover from security incidents. This roadmap included initiatives to bolster our information security posture across the enterprise, and to deploy technology and process improvements to allow for faster and more effective incident response and recovery. More specifically, key areas of focus for the resiliency roadmap included: strengthening security monitoring controls, improving security at our operating locations, automating identity and access management, expanding third-party security, modernizing the network and file and print infrastructure, and updating backup capabilities.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates, and the differences could be material.

We base our estimates on the current information available, our experiences and various other assumptions believed to be reasonable under the circumstances. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, pricing

cycles relating to industry capacity, product mix, and in some cases, actuarial techniques. We regularly evaluate these significant factors and make adjustments where facts and circumstances dictate.

Revenue Recognition

 

We generally recognize revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods, which coincide with the transfer of control of our goods to the customer. Additionally, we manufacture certain customized products that have no alternative use to us (since they are made to specific customer specifications), and we believe that for certain customers we have a legally enforceable right to payment for performance completed to date on these products, including a reasonable profit. For products that meet these two criteria, we recognize revenue “over time”. This results in revenue recognition prior to the date of shipment or title transfer for these products and results in the recognition of a contract asset (unbilled receivables) with a corresponding reduction in finished goods inventory on our balance sheet.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Our revenues are primarily derived from fixed consideration. However, we net provisions for discounts, returns, allowances, customer rebates and other adjustments against our gross sales. Such adjustments are based on historical experience which is consistent with the most likely method as provided in ASC 606 “Revenue from Contracts with Customers” (“ASC 606”).

 

As permitted by ASC 606, we have elected to treat costs associated with obtaining new contracts as expenses when incurred if the amortization period of the asset we would recognize is one year or less. We do not record interest income when the difference in timing of control transfer and customer payment is one year or less. We also account for sales and other taxes that are imposed on and concurrent with individual revenue-producing transactions between a customer and us on a net basis which excludes the taxes from our net sales.

Shipping and Handling Costs

We classify shipping and handling costs, such as freight to our customers’ destinations, as a component of cost of goods sold. When shipping and handling costs are included in the sales price charged for our products, they are recognized in net sales since we treat shipping and handling as fulfilment activities.

Cash Equivalents

We consider all highly liquid investments that mature three months or less from the date of purchase to be cash equivalents. The carrying amounts of our cash and cash equivalents approximate fair market values. We place our cash and cash equivalents primarily with large credit-worthy banks, which limits the amount of our credit exposure.

Accounts Receivable and Allowances

We derive our accounts receivable from revenue earned from customers located primarily in North America, South America, Europe, Asia and Australia. Given our diverse customer base, we have limited exposure to credit loss from any particular customer or industry segment, and hence we generally do not require collateral. We perform an evaluation of lifetime expected credit losses inherent in our accounts receivable at each balance sheet date. Such an evaluation includes consideration of historical loss experience, trends in customer payment frequency, present economic conditions, and judgment about the future financial health of our customers and industry sector. The average of our receivables collection is within 30 to 60 days. We are a party to accounts receivable monetization agreements to sell to third-party financial institutions all of the short-term receivables generated from certain customer trade accounts. See “Note 13. Fair Value — Accounts Receivable Monetization Agreements” for additional information.

We state accounts receivable at the amount owed by the customer, net of an allowance for estimated credit impairment losses, returns and allowances, cash discounts and other adjustments. We do not discount accounts receivable because we generally collect accounts receivable over a relatively short time. We charge off receivables when they are determined to be no longer collectible. We recorded credit impairment losses of $5.9 million and $4.6 million in fiscal 2023 and 2022, respectively, and income of $9.4 million in fiscal 2021.

The following table represents a summary of the changes in the reserve for allowance for estimated credit impairment losses, returns and allowances, and cash discounts for fiscal 2023, 2022 and 2021 (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of fiscal year

 

$

66.3

 

 

$

68.1

 

 

$

66.3

 

Reduction in sales and charges to costs and expenses

 

 

252.0

 

 

 

261.9

 

 

 

236.5

 

Deductions

 

 

(258.1

)

 

 

(263.7

)

 

 

(234.7

)

Balance at end of fiscal year

 

$

60.2

 

 

$

66.3

 

 

$

68.1

 

 

Inventories

We value our U.S. inventories at the lower of cost or market, with cost for the majority of our U.S. inventories determined on the last-in first-out (“LIFO”) basis. We value all other inventories at the lower of cost and net realizable value, with cost determined using methods that approximate cost computed on a first-in first-out inventory valuation method (“FIFO”) basis. These other inventories are primarily foreign inventories, distribution business inventories, spare parts inventories and certain inventoried supplies and aggregate to approximately 43% and 35% of FIFO cost of all inventory at September 30, 2023 and 2022, respectively. The increase in fiscal 2023 is primarily due to the Mexico Acquisition. See “Note 10. Inventories” for additional information.

Prior to the application of the LIFO method, our U.S. operating divisions use a variety of methods to estimate the FIFO cost of their finished goods inventories. Such methods include standard costs, or average costs computed by dividing the actual cost of goods manufactured by the tons produced and multiplying this amount by the tons of inventory on hand. Variances and other unusual items are analyzed to determine whether it is appropriate to include those items in the value of inventory. Examples of variances and unusual items that are considered to be current period charges include, but are not limited to, production levels, freight, handling costs, and wasted materials (spoilage) that are determined to be abnormal. Costs include raw materials and supplies, direct labor, indirect labor related to the manufacturing process, and depreciation and other factory overheads. Our inventoried spare parts are measured at average cost.

Leased Assets

When adopting the provisions of ASC 842, “Leases” we elected the package of three practical expedients permitted within the standard pursuant to which we did not reassess initial direct costs, lease classification or whether our contracts contain or are leases. We lease various real estate, including certain operating facilities, warehouses, office space and land. We also lease material handling equipment, vehicles and certain other equipment. We record our operating lease right-of-use (“ROU”) assets and liabilities at the commencement date of the lease based on the present value of lease payments over the lease term.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. While some leases provide for variable payments, they are not included in the ROU assets and liabilities because they are not based on an index or rate. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles and leases within supply agreements primarily relate to usage, repairs, and maintenance. As the implicit rate is not readily determinable for our leases, we apply a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a monthly basis for measurement of new lease liabilities.

We have made an accounting policy election to not recognize an ROU asset and liability for leases with a term of 12 months or less unless the lease includes an option to renew or purchase the underlying asset that we are reasonably certain to exercise. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. See “Note 15. Leases” for additional information.

Property, Plant and Equipment

We record property, plant and equipment at cost less accumulated depreciation. Cost includes major expenditures for improvements and replacements that extend useful lives, increase capacity, increase revenues or reduce costs, while normal maintenance and repairs are expensed as incurred. For financial reporting purposes, we provide depreciation and amortization primarily on a straight-line method generally over the estimated useful lives of the assets as follows:

 

Buildings and building improvements

 

15-40 years

Machinery and equipment

 

3-25 years

Transportation equipment

 

3-8 years

 

Generally, our machinery and equipment have estimated useful lives between 3 and 25 years; however, select portions of machinery and equipment primarily at our mills have estimated useful lives up to 44 years. Greater than 90% of the cost of our mill assets have useful lives of 25 years or less. Leasehold improvements are depreciated over the shorter of the asset life or the lease term, generally between 3 and 10 years.

Goodwill

In accordance with ASC 350, we review the carrying value of our goodwill annually at the beginning of the fourth quarter of each fiscal year, or more often if events or changes in circumstances indicate that the carrying amount may exceed fair value. We test goodwill for impairment at the reporting unit level, which is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. However, two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. The amount of goodwill acquired in a business combination that is assigned to one or more reporting units as of the acquisition date is the excess of the purchase price of the acquired businesses (or portion thereof) included in the reporting unit, over the fair value assigned to the individual assets acquired or liabilities assumed from a market participant perspective. Goodwill is assigned to the reporting unit(s) expected to benefit from the synergies of the combination even though other assets or liabilities of the acquired entity may not be assigned to that reporting unit. We determine recoverability by comparing the estimated fair value of the reporting unit to which the goodwill applies to the carrying value, including goodwill, of that reporting unit. We determine the fair value of each reporting unit using the present value of expected cash flows (“Income Approach”) or, as appropriate, a combination of the Income Approach and the guideline public company method (“Market Approach”).

ASC 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is “more likely than not” that the fair value of a reporting unit exceeds its carrying amount. We generally do not attempt a qualitative assessment and move directly to the quantitative test. As part of the quantitative test, we utilize the present value of expected cash flows or, as appropriate, a combination of the present value of expected cash flows and the guideline public company method to determine the estimated fair value of our reporting units. This present value model requires management to estimate future cash flows, the timing of these cash flows, and a discount rate (based on a weighted average cost of capital), which represents the time value of money and the inherent risk and uncertainty of the future cash flows. Factors that management must estimate when performing this step in the process include, among other items, sales volume, prices, EBITDA margins, capital expenditures and discount rates. The assumptions we use to estimate future cash flows are consistent with the assumptions that the reporting units use for internal planning purposes, which we believe would be generally consistent with that of a market participant. Under the guideline public company method, we estimate the fair value of the reporting unit based on published EBITDA multiples of comparable public companies with similar operations and economic characteristics. The fair values determined by the discounted cash flow and guideline public company methods are weighted to arrive at the concluded fair value of the reporting unit. However, in instances where comparisons to our peers is less meaningful, no weight is placed on the guideline public company method to arrive at the concluded fair value of the reporting unit. If we determine that the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If we determine that the carrying amount of the reporting unit exceeds its estimated fair value, we measure the goodwill impairment charge based on the excess of a reporting

unit’s carrying amount over its fair value, but not in excess of the total amount of goodwill allocated to the respective reporting unit, as required under ASU 2017-04 “Simplifying the Test for Goodwill Impairment”.

In the second quarter of fiscal 2023, due to the sustained decrease in our market capitalization and the further deterioration of macroeconomic conditions, including the impact of soft demand, pricing pressure and elevated inflation, which negatively affected our long-term forecasts in certain segments, we concluded that impairment indicators existed. As a result, we completed an interim quantitative goodwill impairment test in conjunction with our normal quarterly reporting process. Consistent with past practice, the estimated fair value of our reporting units was determined using a combination of Income Approach and the Market Approach. These fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors.

In fiscal 2023, we recorded a pre-tax, non-cash impairment charge of $1,893.0 million ($1,821.8 million after-tax) associated with our interim goodwill impairment analysis completed in the second quarter. See “Note 8. Segment Information” of the Notes to Consolidated Financial Statements for additional information.

During the fourth quarter of fiscal 2023, we completed our annual goodwill impairment testing. We considered factors such as, but not limited to, our expectations for macroeconomic conditions, industry and market considerations, and financial performance, including planned revenue, earnings and capital investments of each reporting unit. The discount rate used for each reporting unit ranged from 9.5% to 14.5%. We used perpetual growth rates ranging from 0.0% to 1.0%. All reporting units that have goodwill were noted to have a fair value that exceeded their carrying values. The fair value of our Consumer Packaging reporting unit exceeded its carrying value by 30%. However, our Corrugated Packaging and Distribution reporting units had fair values that exceeded their respective carrying values by less than 10%. Our Corrugated Packaging reporting unit had a narrow fair value cushion due to the goodwill impairment charge recorded for the reporting unit in the second quarter of fiscal 2023 and the fair value accounting related to the Mexico Acquisition.

 

If we had concluded that it was appropriate to increase the discount rate we used by 100 basis points, the fair value of only our Consumer Packaging reporting unit would have continued to exceed its carrying value. In our fiscal 2023 annual goodwill impairment analysis, projected future cash flows for the Corrugated Packaging and Distribution reporting units were discounted at 9.5% and 14.5%, respectively. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rates for Corrugated Packaging and Distribution reporting units would have to be increased to 9.9% and 15.4%, respectively, in order for the estimated fair value of the reporting units to fall below their carrying values.

 

At September 30, 2023, the Corrugated Packaging, Consumer Packaging and Distribution reporting units had $2,603.7 million, $1,506.6 million and $138.4 million of goodwill, respectively. Our Global Paper reporting unit had no goodwill. Because the fair values of the Corrugated Packaging and Distribution reporting units are not substantially more than their carrying values, these reporting units have greater risk of future impairments should we experience adverse changes in our assumptions, estimates, or market factors. If the assumptions, estimates, and market factors underlying our fair value determinations change adversely, we may be exposed to additional impairment charges, which could be material. Additionally, there are certain risks inherent to our operations as described in Item 1A. “Risk Factors”.

 

Subsequent to our annual test, we monitored industry economic trends through the end of fiscal 2023 and determined no additional testing for goodwill impairment was warranted. We have not made any material changes to our impairment loss assessment methodology during the past three fiscal years.

Long-Lived Assets

We follow the provisions included in ASC 360, “Property, Plant, and Equipment” in determining whether the carrying value of any of our long-lived assets, including amortizable intangibles other than goodwill, is impaired. The ASC 360 test is a three-step test for assets that are “held and used” as that term is defined by ASC 360. We determine whether indicators of impairment are present. We review long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of the long-lived asset might not be recoverable. If we determine that indicators of impairment are present, we determine whether the estimated undiscounted cash

flows for the potentially impaired assets are less than the carrying value. This requires management to estimate future cash flows through operations over the remaining useful life of the asset and its ultimate disposition. The assumptions we use to estimate future cash flows are consistent with the assumptions we use for internal planning purposes, updated to reflect current expectations. If our estimated undiscounted cash flows do not exceed the carrying value, we estimate the fair value of the asset and record an impairment charge if the carrying value is greater than the fair value of the asset. We estimate fair value using discounted cash flows, observable prices for similar assets, or other valuation techniques. We record assets classified as “held for sale” at the lower of their carrying value or estimated fair value less anticipated costs to sell. See “Note 5. Restructuring and Other Costs, Net” for additional information on long-lived asset write-offs included in restructuring charges recorded in conjunction with our decision to permanently cease operations at our Tacoma, WA and North Charleston, SC containerboard mills. Our long-lived assets, including intangible assets, remain recoverable.

Included in our long-lived assets are certain identifiable intangible assets. These intangible assets are amortized based on the approximate pattern in which the economic benefits are consumed or straight-line if the pattern was not reliably determinable. Estimated useful lives range from 2 to 40 years and have a weighted average life of approximately 15.9 years.

Our judgments regarding the existence of impairment indicators are based on legal factors, market conditions and operational performance. Future events could cause us to conclude that impairment indicators exist and that assets associated with a particular operation are impaired. Evaluating impairment also requires us to estimate future operating results and cash flows, which also require judgment by management. Any resulting impairment loss could have a material adverse impact on our financial condition and results of operations.

Cloud Computing Arrangements

We utilize cloud computing arrangements such as hosting arrangements which are service contracts, whereby we gain remote access to use software hosted by the vendor or another third party on an as-needed basis for a period of time in exchange for a subscription fee. Subscription fees are usually prepaid and recorded in operating expense over the related subscription period. Implementation costs for cloud computing arrangements are capitalized within Other current assets or Other noncurrent assets if certain criteria are met and consist of internal and external costs directly attributable to developing and configuring cloud computing software for its intended use. Amortization of capitalized implementation costs is recorded as operating expense on a straight-line basis over the term of the cloud computing arrangement, which is the non-cancellable period of the agreement, together with periods covered by renewal options which we are reasonably certain to exercise. The unamortized implementation costs related to our cloud computing arrangements were $51.7 million, $4.1 million and $1.1 million at September 30, 2023, 2022 and 2021, respectively. The increase in fiscal 2023 was related to our business systems transformation project.

Restructuring and Other Costs, Net

Our restructuring and other costs, net include primarily items such as restructuring portions of our operations, acquisition costs, integration costs and divestiture costs. We have restructured portions of our operations from time to time, have current restructuring initiatives taking place, and it is likely that we will engage in future restructuring activities.

When we close a facility, if necessary, we recognize a write-down to reduce the carrying value of related property, plant and equipment and lease ROU assets to their fair value and record charges for severance and other employee-related costs. We reduce the carrying value of the assets classified as held for sale to their estimated fair value less cost to sell. Any subsequent change in fair value less cost to sell prior to disposition is recognized as it is identified; however, no gain is recognized in excess of the cumulative loss previously recorded unless the actual selling price exceeds the original carrying value upon its ultimate sale. For facility closures, we also generally expect to record costs for equipment relocation, facility carrying costs and costs to terminate a lease or contract before the end of its term.

 

Although specific circumstances vary, our strategy has generally been to consolidate our sales and operations into large well-equipped facilities 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 generally transfer a substantial portion of each closed facility's production to our other facilities. We believe these actions have allowed us to more effectively manage our business.

Identifying and calculating the cost to exit operations requires certain assumptions to be made, the most significant of which are anticipated future liabilities, including severance costs, contractual obligations, and the adjustments of property, plant and equipment and lease ROU assets to their fair value. We believe our estimates are reasonable, considering our knowledge of the industries we operate in, previous experience in exiting activities and valuations we may obtain from independent third parties. Although our estimates have been reasonably accurate in the past, significant judgment is required, and these estimates and assumptions may change as additional information becomes available and facts or circumstances change. See “Note 5. Restructuring and Other Costs, Net” for additional information, including a description of the type of costs incurred.

Business Combinations

From time to time, we may enter into business combinations. In accordance with ASC 805, “Business Combinations”, we generally recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition. We measure goodwill as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires us to make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities including those related to debt, pensions and other postretirement plans, uncertain tax positions, contingent consideration and contingencies. Significant estimates and assumptions include subjective and/or complex judgments regarding items such as discount rates, customer attrition rates, economic lives and other factors, including estimating future cash flows that we expect to generate from the acquired assets.

The acquisition method of accounting also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required to adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on our financial condition and results of operations. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, we could record future impairment charges. In addition, we have estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If our estimates of the economic lives change, depreciation or amortization expenses could be increased or decreased, or the acquired asset could be impaired.

Fair Value Measurements

We estimate fair values in accordance with ASC 820 “Fair Value Measurement”. ASC 820 provides a framework for measuring fair value and expands disclosures required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and a hierarchy prioritizing the inputs to valuation techniques. ASC 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Additionally, ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:

•
Level 1 – Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to level 1 inputs.
•
Level 2 – Observable inputs other than quoted prices in active markets.
•
Level 3 – Unobservable inputs for which there is little or no market data available. The fair value hierarchy gives the lowest priority to level 3 inputs.

We incorporate credit valuation adjustments to reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in our fair value measurements.

Financial instruments not recognized at fair value on a recurring or nonrecurring basis include cash and cash equivalents, accounts receivables, 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. The fair values of our long-term debt are estimated using quoted market prices or are based on the discounted value of future cash flows. We disclose the fair value of long-term debt in “Note 14. Debt” and our pension and postretirement assets and liabilities in “Note 6. Retirement Plans”. We have, or from time to time may have, financial instruments recognized at fair value including supplemental retirement savings plans (“Supplemental Plans”) that are nonqualified deferred compensation plans pursuant to which assets are invested primarily in mutual funds, interest rate derivatives, commodity derivatives or other similar class of assets or liabilities, the fair value of which are not significant. We measure the fair value of our mutual fund investments based on quoted prices in active markets. Additionally, we measure our derivative contracts, if any, based on observable inputs such as interest rates, yield curves, spot and future commodity prices, and spot and future exchange rates.

We measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities include equity method investments when they are deemed to be other-than-temporarily impaired, investments for which the fair value measurement alternative is elected, assets acquired and liabilities assumed when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a merger or an acquisition or in a nonmonetary exchange, property, plant and equipment, ROU assets related to operating leases, goodwill and other intangible assets that are written down to fair value when they are held for sale or determined to be impaired. See “Note 5. Restructuring and Other Costs, Net” for impairments associated with restructuring activities. Given the nature of such assets and liabilities, evaluating their fair value from the perspective of a market participant is inherently complex. Assumptions and estimates about future values can be affected by a variety of internal and external factors. Changes in these factors may require us to revise our estimates and could result in future impairment charges for goodwill and acquired intangible assets, or retroactively adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with business combinations. These adjustments could have a material impact on our financial condition and results of operations. We discuss fair values in more detail in “Note 13. Fair Value”.

Derivatives

We are exposed to interest rate risk, commodity price risk and foreign currency exchange risk. To manage these risks, from time to time and to varying degrees, we may enter into a variety of financial derivative transactions and certain physical commodity transactions that are determined to be derivatives. Interest rate swaps may be entered into to manage the interest rate risk associated with a portion of our outstanding debt. Interest rate swaps are either designated for accounting purposes as cash flow hedges of forecasted floating interest payments on variable rate debt or fair value hedges of fixed rate debt, or we may elect not to treat them as accounting hedges. Swaps or forward contracts on certain commodities may be entered into to manage the price risk associated with forecasted purchases or sales of those commodities. In addition, certain commodity financial derivative contracts and physical commodity contracts that are determined to be derivatives may not be designated as accounting hedges because either they do not meet the criteria for treatment as accounting hedges under ASC 815, “Derivatives and Hedging” (“ASC815”), or we elect not to treat them as accounting hedges under ASC 815. Generally, we elect the normal purchase, normal sale scope exception for physical commodity contracts that are determined to be derivatives. We may also enter into forward contracts to manage our exposure to fluctuations in foreign currency rates with respect to transactions denominated in foreign currencies. These also can either be designated for accounting purposes as cash flow hedges or not so designated. Derivative financial instruments are not used for trading or other speculative purposes.

Outstanding financial derivative instruments expose us to credit loss in the event of nonperformance by the counterparties to the derivative agreements. Our credit exposure related to these financial instruments is represented by the fair value of contracts reported as assets. We manage our exposure to counterparty credit risk through minimum credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We may enter into financial derivative contracts that may contain credit-risk-related contingent features

which could result in a counterparty requesting immediate payment or demanding immediate and ongoing full overnight collateralization on derivative instruments in net liability positions.

For financial derivative instruments that are designated as a cash flow hedge for accounting purposes, the entire change in fair value of the financial derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction, and in the same period or periods during which the forecasted transaction affects earnings. For financial derivative instruments that are not designated as accounting hedges, the entire change in fair value of the financial instrument is reported immediately in current period earnings.

We have at times entered into interest rate swap agreements that effectively modified our exposure to interest rate risk by converting a portion of our interest payments on floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. These agreements typically involved the receipt of floating rate amounts in exchange for fixed interest rate payments over the life of the agreements without an exchange of the underlying principal amount.

See “Note 16. Derivatives” for additional information regarding our foreign currency and natural gas commodity derivatives.

Health Insurance

We are self-insured for the majority of our group health insurance costs. However, we seek to limit our health insurance costs by entering into certain stop loss insurance coverage. Due to mergers, acquisitions and other factors, we may have plans that do not include stop loss insurance. We calculate our group health insurance reserve on an undiscounted basis based on estimated reserve rates. We utilize claims lag data provided by our claims administrators to compute the required estimated reserve rate. We calculate our average monthly claims paid using the actual monthly payments during the trailing 12-month period. At that time, we also calculate our required reserve using the reserve rates discussed above. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our group health insurance costs.

Workers’ Compensation

We purchase large risk deductible workers’ compensation policies for the majority of our workers’ compensation liabilities that are subject to various deductibles to limit our exposure. We calculate our workers’ compensation reserves on an undiscounted basis based on estimated actuarially calculated development factors. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our workers' compensation costs.

Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amount and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. All deferred tax assets and liabilities are classified as noncurrent in our consolidated balance sheet.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial operations and their associated valuation allowances, if any. In the event we were to determine that we would be able to realize or not realize our deferred income tax assets in the future in their net recorded amount, we would make an adjustment to the valuation allowance, which would reduce or increase the provision for income taxes, respectively.

Certain provisions of ASC 740, “Income Taxes” provide that a tax benefit from an uncertain tax position may be recognized when it is “more likely than not” that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. We use significant judgment in (i) determining whether a tax position, based solely on its technical merits, is “more likely than not” to be sustained upon examination and (ii) measuring the tax benefit as the largest amount of benefit that is “more likely than not” to be realized upon ultimate settlement. We do not record any benefit for the tax positions where we do not meet the “more likely than not” initial recognition threshold. Income tax positions must meet a “more likely than not” recognition threshold at the effective date to be recognized. We recognize interest and penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of operations. Resolution of the uncertain tax positions could have a material adverse effect on our cash flows or materially benefit our results of operations in future periods depending upon their ultimate resolution.

On December 22, 2017, the U.S. enacted comprehensive tax legislation, commonly referred to as the Tax Act. As part of the enacted Tax Act, Global Intangible Low Taxed Income (“GILTI”) provisions were introduced that would impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. We have elected to treat any potential GILTI inclusions as a period cost during the year incurred.

On August 16, 2022, the Inflation Reduction Act was signed into law, with tax provisions primarily focused on implementing a 15% minimum tax on global adjusted financial statement income and a 1% excise tax on share repurchases. While we are still evaluating the impact that provisions of the Inflation Reduction Act becoming effective in fiscal 2024 will have on our financial results, we do not believe the impact will be material.

Pension and Other Postretirement Benefits

We account for pension and other postretirement benefits in accordance with ASC 715, “Compensation – Retirement Benefits”. Accordingly, we recognize the funded status of our pension plans as assets or liabilities in our consolidated balance sheets. The funded status is the difference between our projected benefit obligations and fair value of plan assets. The determination of our obligation and expense for pension and other postretirement benefits is dependent on our selection of certain assumptions used by actuaries in calculating such amounts. We describe these assumptions in “Note 6. Retirement Plans”, which include, among others, the discount rate, expected long-term rates of return on plan assets and rates of increase in compensation levels. We defer actual results that differ from our assumptions, i.e., actuarial gains and losses, and amortize the difference over future periods. Therefore, these differences generally affect our recognized expense and funding requirements in future periods. Actuarial gains and losses occur when actual experience differs from the estimates used to determine the components of net periodic pension cost and when certain assumptions used to determine the fair value of the plan assets or projected benefit obligation are updated, such as but not limited to, changes in the discount rate, plan amendments, differences between actual and expected returns on plan assets, mortality assumptions and plan remeasurement.

The amount of unrecognized actuarial gains and losses recognized in the current year’s operations is based on amortizing the unrecognized gains or losses for each plan that exceed the larger of 10% of the projected benefit obligation or the fair value of plan assets, also known as “the corridor”. The amount of unrecognized gain or loss that exceeds the corridor is amortized over the average future service of the plan participants or the average life expectancy of inactive plan participants for plans where all or almost all of the plan participants are inactive. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our pension and other postretirement benefit obligations and our future expense.

Share-Based Compensation

We recognize expense for share-based compensation plans based on the estimated fair value of the related awards in accordance with ASC 718, “Compensation – Stock Compensation”. Pursuant to our incentive stock plans, we can grant options, restricted stock, restricted stock units and stock appreciation rights (“SAR” or “SARs”) to employees and non-employee directors. The grants generally vest over a period of up to three years depending on the nature of the award, except for non-employee director grants, which typically vest over a period of up to one year. The majority of our awards are restricted stock units granted to employees and generally contain performance

or market conditions that must be met in conjunction with a service requirement for the shares to vest, others contain only a service requirement. We charge compensation expense under the plan to earnings over each award’s individual vesting period. Forfeitures are estimated based on historical experience. See “Note 22. Share-Based Compensation” for additional information.

Asset Retirement Obligations

We account for asset retirement obligations in accordance with ASC 410, “Asset Retirement and Environmental Obligations”. A liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists and the liability can be reasonably estimated. The liability is accreted over time and the asset is depreciated over the remaining life of the related asset. Upon settlement of the liability, we recognize a gain or loss for any difference between the settlement amount and the liability recorded. We record our asset retirement obligations in Other current liabilities and Other noncurrent liabilities.

Our asset retirement obligations consist primarily of costs related to the closure of manufacturing facilities, and includes captive, non-hazardous solid waste landfills owned and operated by certain of our paper mills. The following table sets forth changes to the asset retirement obligations (in millions):

 

 

2023

 

 

2022

 

Balance at beginning of fiscal year

 

$

96.0

 

 

$

73.6

 

Accretion expense

 

 

3.5

 

 

 

2.7

 

Liabilities incurred

 

 

30.7

 

 

 

25.1

 

Payments

 

 

(4.2

)

 

 

(4.0

)

Revisions in estimated cash flows

 

 

0.8

 

 

 

(1.4

)

Foreign currency rate changes

 

 

0.2

 

 

 

—

 

Balance at end of fiscal year

 

$

127.0

 

 

$

96.0

 

Liabilities incurred for our asset retirement obligations in fiscal 2023 and fiscal 2022 were primarily related to certain manufacturing facility closures for items such as oil and process chemical removal that were previously determined to have an indeterminate settlement date and adjustment to anticipated landfill obligations. See “Note 5. Restructuring and Other Costs, Net” for additional information on mill closures.

Asset retirement obligations with indeterminate settlement dates are not recorded until such time that a reasonable estimate may be made. In the event of future closures, redesigns, or renovations of certain production facilities, it is possible that we may be required to take steps to remove certain materials from these facilities including asbestos and chemicals. Currently, any such obligations have an indeterminate settlement date, and we believe that adequate information does not exist to apply an expected-present-value technique to estimate any such potential obligations. Accordingly, we will recognize a liability for such items in the period in which sufficient information becomes available to reasonably estimate the fair value of these obligations.

Repair and Maintenance Costs

We expense routine repair and maintenance costs as we incur them. We defer certain expenses we incur during planned major maintenance activities and recognize the expenses ratably over the shorter of the estimated interval until the next major maintenance activity or the life of the deferred item. This maintenance is generally performed every 12 to 24 months and has a significant impact on our results of operations in the period performed primarily due to lost production during the maintenance period. Planned major maintenance costs deferred at September 30, 2023 and 2022 were $140.9 million and $121.8 million, respectively. The assets are recorded as Other noncurrent assets on the consolidated balance sheets.

Foreign Currency

We translate the assets and liabilities of our foreign operations from their functional currency into U.S. dollars at the rate of exchange in effect as of the balance sheet date. We reflect the resulting translation adjustments in

equity. We translate the revenues and expenses of our foreign operations at a daily average rate prevailing for each month during the fiscal year. We include gains or losses from foreign currency transactions, such as those resulting from the settlement of foreign receivables or payables, in the consolidated statements of operations within Other (expense) income, net. We recorded a gain on foreign currency transactions of $10.8 million in fiscal 2023, while we recorded a loss on foreign currency transactions of $5.0 million and $0.7 million in fiscal 2022 and 2021, respectively.

Environmental Remediation Costs

We accrue for losses associated with our environmental remediation obligations when it is probable that we have incurred a liability and the amount of the loss can be reasonably estimated. We generally recognize accruals for estimated losses from our environmental remediation obligations no later than completion of a remedial feasibility study and clear indication of remedial options. We adjust such accruals as further information develops or circumstances change. We recognize recoveries of our environmental remediation costs from other parties as assets when we deem their receipt probable. See “Note 19. Commitments and Contingencies — Environmental.”

 

New Accounting Standards — Adopted in Fiscal 2023

 

In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance”. This ASU aims to increase the transparency of government assistance through the annual disclosure of the types of assistance, an entity’s accounting for the assistance and the effect of the assistance on an entity’s financial statements. This ASU is effective for annual periods beginning after December 15, 2021 (fiscal 2023 for us), with early adoption permitted. We adopted the provisions of ASU 2021-10 beginning October 1, 2022. The adoption of this ASU did not have a material impact on our consolidated financial statements.

 

In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. This ASU requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. This ASU aims to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), including interim periods therein, with early adoption permitted. We early adopted the provisions of ASU 2021-08 beginning October 1, 2022. The adoption of this ASU did not have a material impact on our consolidated financial statements.

 

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. This ASU provides temporary optional expedients and exceptions for applying GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. In January 2021, the FASB issued ASU 2021-01, which adds implementation guidance to clarify certain optional expedients in Topic 848. The ASUs could be adopted after their respective issuance dates through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. See “Note 14. Debt” for information regarding the amendments to our credit facilities. We adopted the provisions of this optional guidance beginning October 1, 2022. The adoption of these ASUs did not have a material impact on our consolidated financial statements.

 

New Accounting Standards — Pending Adoption in Fiscal 2024

 

In September 2022, the FASB issued ASU 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations”. This ASU requires that all entities that use supplier finance programs in connection with the purchase of goods and services disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), except for the amendment on roll forward information, which is effective for fiscal years

beginning after December 15, 2023 (fiscal 2025 for us), each with early adoption permitted. The adoption of this ASU is not expected to have a material impact on our consolidated financial statements.

 

In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method”. This ASU expands and clarifies the portfolio layer method for fair value hedges of interest rate risk. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), including interim periods therein, with early adoption permitted. The adoption of this ASU is not expected to have a material impact on our consolidated financial statements.

 

New Accounting Standards — Recently Issued

 

In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements”. This ASU requires all lessees to amortize leasehold improvements associated with common control leases over their useful life to the common control group and account for them as a transfer of assets between entities under common control at the end of the lease. This update is effective for fiscal years beginning after December 15, 2023 (fiscal 2025 for us), including interim periods therein, with early adoption permitted in any annual or interim period as of the beginning of the related fiscal year. We are evaluating the impact of this ASU.

 

In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. This ASU clarifies that contractual sale restrictions should not be considered in measuring the fair value of equity securities. This ASU is effective for fiscal years beginning after December 15, 2023 (fiscal 2025 for us), including interim periods therein, with early adoption permitted. We are evaluating the impact of this ASU.
v3.23.3
Revenue Recognition
 12 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 2. Revenue Recognition

 

Disaggregated Revenue

 

ASC 606 requires that we disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The tables below disaggregate our revenue by geographical market and product type (segment). Net sales are attributed to geographical markets based on our selling location.

The following tables summarize our disaggregated revenue by primary geographical markets for fiscal 2023, 2022 and 2021 (in millions):

 

 

 

Year Ended September 30, 2023

 

 

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Global Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

U.S.

 

$

7,782.4

 

 

$

2,843.4

 

 

$

3,946.0

 

 

$

1,072.7

 

 

$

(295.6

)

 

$

15,348.9

 

Canada

 

 

554.3

 

 

 

516.1

 

 

 

204.9

 

 

 

11.1

 

 

 

(5.4

)

 

 

1,281.0

 

Latin America

 

 

1,709.5

 

 

 

80.9

 

 

 

129.8

 

 

 

176.9

 

 

 

(15.3

)

 

 

2,081.8

 

EMEA

 

 

8.7

 

 

 

1,201.2

 

 

 

47.2

 

 

 

—

 

 

 

(1.0

)

 

 

1,256.1

 

Asia Pacific

 

 

—

 

 

 

300.2

 

 

 

42.0

 

 

 

—

 

 

 

—

 

 

 

342.2

 

Total

 

$

10,054.9

 

 

$

4,941.8

 

 

$

4,369.9

 

 

$

1,260.7

 

 

$

(317.3

)

 

$

20,310.0

 

 

 

 

Year Ended September 30, 2022

 

 

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Global Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

U.S.

 

$

8,264.7

 

 

$

2,870.9

 

 

$

5,344.8

 

 

$

1,238.3

 

 

$

(357.2

)

 

$

17,361.5

 

Canada

 

 

578.8

 

 

 

510.0

 

 

 

227.7

 

 

 

16.1

 

 

 

(7.5

)

 

 

1,325.1

 

Latin America

 

 

456.4

 

 

 

194.4

 

 

 

230.7

 

 

 

164.5

 

 

 

(0.4

)

 

 

1,045.6

 

EMEA

 

 

7.7

 

 

 

1,079.9

 

 

 

63.2

 

 

 

—

 

 

 

(0.3

)

 

 

1,150.5

 

Asia Pacific

 

 

—

 

 

 

310.0

 

 

 

63.8

 

 

 

—

 

 

 

—

 

 

 

373.8

 

Total

 

$

9,307.6

 

 

$

4,965.2

 

 

$

5,930.2

 

 

$

1,418.9

 

 

$

(365.4

)

 

$

21,256.5

 

 

 

 

Year Ended September 30, 2021

 

 

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Global Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

U.S.

 

$

7,518.8

 

 

$

2,463.7

 

 

$

4,547.7

 

 

$

1,105.9

 

 

$

(318.9

)

 

$

15,317.2

 

Canada

 

 

519.3

 

 

 

473.0

 

 

 

205.2

 

 

 

19.7

 

 

 

(6.8

)

 

 

1,210.4

 

Latin America

 

 

357.3

 

 

 

159.1

 

 

 

100.1

 

 

 

129.2

 

 

 

(0.3

)

 

 

745.4

 

EMEA

 

 

5.1

 

 

 

1,038.2

 

 

 

62.7

 

 

 

—

 

 

 

—

 

 

 

1,106.0

 

Asia Pacific

 

 

—

 

 

 

299.9

 

 

 

67.3

 

 

 

—

 

 

 

(0.1

)

 

 

367.1

 

Total

 

$

8,400.5

 

 

$

4,433.9

 

 

$

4,983.0

 

 

$

1,254.8

 

 

$

(326.1

)

 

$

18,746.1

 

 

Revenue Contract Balances

 

Contract assets are rights to consideration in exchange for goods that we have transferred to a customer when that right is conditional on something other than the passage of time. Contract assets are reduced when the control of the goods passes to the customer. Contract liabilities represent obligations to transfer goods or services to a customer for which we have received consideration. Contract liabilities are reduced once control of the goods is transferred to the customer.

 

The opening and closing balances of our contract assets and contract liabilities are as follows. Contract assets and contract liabilities are reported within Other current assets and Other current liabilities, respectively, on the consolidated balance sheets (in millions).

 

 

Contract Assets
(Short-Term)

 

 

Contract Liabilities
(Short-Term)

 

Beginning balance - October 1, 2022

 

$

244.0

 

 

$

13.9

 

Decrease

 

 

(2.3

)

 

 

(0.4

)

Ending balance - September 30, 2023

 

$

241.7

 

 

$

13.5

 

 

Performance Obligations and Significant Judgments

 

We primarily derive revenue from fixed consideration. Certain contracts may also include variable consideration, typically in the form of cash discounts and volume rebates. If a contract with a customer includes variable consideration, we estimate the expected cash discounts and other customer refunds based on historical experience. We concluded this method is consistent with the most likely amount method under ASC 606 and allows us to make the best estimate of the consideration we will be entitled to from customers.

 

Contracts or purchase orders with customers could include a single type of product or multiple types and grades of products. Regardless, the contract price with the customer is agreed to at the individual product level outlined in the customer contracts or purchase orders. Management has concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product.

v3.23.3
Acquisitions
 12 Months Ended
Sep. 30, 2023
Business Combinations [Abstract]  
Acquisitions

Note 3. Acquisitions

When we obtain control of a business by acquiring its assets, or some or all of its equity interest, we account for those 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.

 

Mexico Acquisition

On December 1, 2022, we completed the Mexico Acquisition. The acquiree is a leading integrated producer of fiber-based sustainable packaging solutions that operates four paper mills, nine corrugated packaging plants and six high graphic plants throughout Mexico, producing sustainable packaging for a wide range of end markets in the region. This acquisition provides us with further geographic and end market diversification as well as positions us to continue to grow in the attractive Latin American market.

 

See below for a summary of the purchase consideration transferred as defined under ASC 805 (in millions):

 

 

 

Purchase
Consideration

 

Cash consideration transferred for 67.7% interest

 

$

969.8

 

Fair value of the previously held interest

 

 

403.7

 

Settlement of preexisting relationships (net receivable
   from joint venture)

 

 

40.2

 

Purchase consideration transferred

 

$

1,413.7

 

 

In connection with the transaction, in the first quarter of fiscal 2023 we recognized a $46.8 million non-cash, pre-tax loss (or $24.6 million after release of a related deferred tax liability) on our original 32.3% investment. The loss is reflected in the Equity in income of unconsolidated entities line item in our consolidated statements of operations and included the write-off of historical foreign currency translation adjustments previously recorded in Accumulated other comprehensive loss in our consolidated balance sheet, as well as the difference between the fair value of the consideration paid and the carrying value of our prior ownership interest. The fair value of our previously held interest in the joint venture was estimated to be $403.7 million at the acquisition date based on the cash consideration exchanged for acquiring the 67.7% equity interest adjusted for the deemed payment of a control premium. This step-acquisition provided us with 100% control and we met the other requirements under ASC 805 for the transaction to be accounted for using the acquisition method of accounting. We have included the financial results of the acquired operations in our Corrugated Packaging segment. Post-acquisition, sales to the operations acquired in the Mexico Acquisition are eliminated from our Global Paper segment results.

 

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed in the Mexico Acquisition by major class of assets and liabilities as of the acquisition date, as well as adjustments made during fiscal 2023 (referred to as “measurement period adjustments”) (in millions):

 

 

 

Amounts Recognized as of the Acquisition Date

 

 

Measurement Period
 Adjustments (1) (2)

 

 

Amounts Recognized as of Acquisition Date
(as Adjusted)

 

Cash and cash equivalents

 

$

116.3

 

 

$

—

 

 

$

116.3

 

Current assets, excluding cash and cash equivalents

 

 

697.0

 

 

 

(71.2

)

 

 

625.8

 

Property, plant and equipment

 

 

1,380.3

 

 

 

43.0

 

 

 

1,423.3

 

Goodwill

 

 

231.2

 

 

 

6.2

 

 

 

237.4

 

Other noncurrent assets

 

 

101.4

 

 

 

0.6

 

 

 

102.0

 

Total assets acquired

 

 

2,526.2

 

 

 

(21.4

)

 

 

2,504.8

 

 

 

 

 

 

 

 

 

 

 

Current portion of debt (3)

 

 

13.2

 

 

 

—

 

 

 

13.2

 

Current liabilities, excluding debt

 

 

384.8

 

 

 

(50.4

)

 

 

334.4

 

Long-term debt due after one year (3)

 

 

591.4

 

 

 

36.2

 

 

 

627.6

 

Pension liabilities, net of current portion

 

 

35.2

 

 

 

(3.1

)

 

 

32.1

 

Deferred income taxes

 

 

69.8

 

 

 

(4.1

)

 

 

65.7

 

Other noncurrent liabilities

 

 

18.1

 

 

 

—

 

 

 

18.1

 

Total liabilities assumed

 

 

1,112.5

 

 

 

(21.4

)

 

 

1,091.1

 

Net assets acquired

 

$

1,413.7

 

 

$

—

 

 

$

1,413.7

 

 

(1)
The measurement period adjustments recorded in fiscal 2023 did not have a significant impact on our consolidated statements of operations for the year ended September 30, 2023.
(2)
The measurement period adjustments were primarily due to refinements to the carrying amounts of certain assets and liabilities. The net impact of the measurement period adjustments resulted in a net increase in goodwill.
(3)
Includes $494.8 million of debt that we assumed and repaid in connection with the closing of the Mexico Acquisition. The remaining balance relates to current and long-term portions of finance leases.

 

We continue to analyze the estimated values of all assets acquired and liabilities assumed including, among other things, finalizing third-party valuations; therefore, the allocation of the purchase price remains preliminary and subject to revision.

 

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The fair value assigned to goodwill is primarily attributable to buyer-specific synergies expected to arise after the acquisition (e.g., enhanced reach of the combined organization and other synergies), the assembled work force, and the establishment of deferred tax liabilities for the difference between book and tax basis of the assets and liabilities acquired. The goodwill is not amortizable for income tax purposes.

 

Transaction costs related to the Mexico Acquisition are expensed as incurred and recorded within Restructuring and other costs, net. See “Note 5. Restructuring and Other Costs, Net” for additional information.
v3.23.3
Held For Sale
 12 Months Ended
Sep. 30, 2023
Disposal Group, Including Discontinued Operation, Assets [Abstract]  
Held For Sale

Note 4. Held For Sale

 

Assets held for sale at September 30, 2023 and September 30, 2022 were $91.5 million and $34.4 million, respectively. Assets held for sale for these periods were primarily related to closed facilities we are in the process of divesting.
v3.23.3
Restructuring and Other Costs
 12 Months Ended
Sep. 30, 2023
Restructuring And Other Costs [Abstract]  
Restructuring and Other Costs

Note 5. Restructuring and Other Costs, Net

Summary of Restructuring and Other Initiatives

We recorded pre-tax restructuring and other costs, net of $859.2 million, $383.0 million and $30.6 million for fiscal 2023, 2022 and 2021, respectively. Of these costs, $604.6 million, $334.1 million and $13.4 million were non-cash for fiscal 2023, 2022 and 2021, respectively. These amounts are not comparable since the timing and scope of the individual actions associated with each restructuring, acquisition, integration or divestiture can vary. We present our restructuring and other costs, net in more detail below.

The following table summarizes our Restructuring and other costs, net for fiscal 2023, 2022 and 2021 (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Restructuring

 

$

803.9

 

 

$

373.5

 

 

$

27.6

 

Other

 

 

55.3

 

 

 

9.5

 

 

 

3.0

 

Restructuring and other costs, net

 

$

859.2

 

 

$

383.0

 

 

$

30.6

 

 

Restructuring

Our restructuring charges are primarily associated with restructuring portions of our operations (i.e., partial or complete facility closures). A partial facility closure may consist of shutting down a machine and/or a workforce reduction. We have previously incurred reduction in workforce actions, facility closure activities, impairment costs and certain lease terminations from time to time.

We are committed to improving our return on invested capital as well as maximizing the performance of our assets. In fiscal 2023, we announced our plan to permanently cease operating our Tacoma, WA and North Charleston, SC containerboard mills. These mills ceased production in September 2023 and June 2023, respectively. The combination of high operating costs and the need for significant capital investment were the determining factors in the decision to cease operations at these mills. The Tacoma and North Charleston mills' annual production capacity was 510,000 tons and 550,000 tons, respectively, of which approximately three-fifths and two-thirds, respectively, was shipped to external customers of the Global Paper segment.

In fiscal 2022, we recorded various impairments and other charges associated with our decision to permanently cease operations at our Panama City, FL mill and to permanently close the corrugated medium manufacturing operations at our St. Paul, MN mill, as reflected in the table below in the Global Paper segment. These operations ceased production in June 2022 and October 2022, respectively. Both operations were expected to require significant capital investment to maintain and improve going forward, and the production of fluff pulp (at Panama City) was not a priority in our strategy to focus on higher value markets. The Panama City, FL mill had produced containerboard, primarily heavyweight kraft and fluff pulp, with a combined annual capacity of 645,000 tons of which

approximately two-thirds was shipped to external customers. The corrugated medium manufacturing operations at St. Paul, MN had an annual capacity of 200,000 tons of which approximately two-fifths was shipped to external customers.

By closing these mills and the corrugated medium manufacturing operations at St. Paul, significant capital that would have been required to keep the mills competitive in the future is expected to be deployed to improve key assets. Charges recognized are reflected in the table below in the Global Paper segment. We expect to record future restructuring charges, primarily associated with carrying costs. We expect these costs to be partially offset in a future period by proceeds from the sale of these facilities.

In fiscal 2021, our restructuring charges included an impairment of assets and a gain on lease termination associated with our Richmond, VA regional office (in Corporate). Due to market factors in fiscal 2021, we decided to delay the previously announced shutdown of a bleached paperboard machine at our Evadale, TX mill, and in fiscal 2022, we decided to cancel our plans to shut down the machine and reversed certain employee and other accrued restructuring charges. The machine is capable of swinging between selected grades (e.g., linerboard, bleached paperboard and pulp), and we intend to utilize the machine to produce selected grades based on demand.

 

While restructuring costs are not charged to our segments and, therefore, do not reduce each segment's Adjusted EBITDA, we highlight the segment to which the charges relate. Since we do not allocate restructuring costs to our segments, charges incurred in the Global Paper segment will represent all charges associated with our vertically integrated mills and recycling operations. These operations manufacture for the benefit of each reportable segment that ultimately sells the associated paper and packaging products to our external customers.

The following table presents a summary of restructuring charges related to active restructuring initiatives that we incurred during the last three fiscal years, the cumulative recorded amount since we started the initiatives and our estimates of the total charges we expect to incur (in millions). These estimates are subject to a number of assumptions, and actual results may differ.

 

 

 

2023

 

 

2022

 

 

2021

 

 

Cumulative

 

 

Total
Expected

 

Corrugated Packaging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

9.4

 

 

$

(17.8

)

 

$

1.7

 

 

$

13.1

 

 

$

13.1

 

Severance and other employee costs

 

 

10.5

 

 

 

0.5

 

 

 

4.7

 

 

 

20.2

 

 

 

20.4

 

Other restructuring costs

 

 

4.0

 

 

 

2.6

 

 

 

2.9

 

 

 

10.1

 

 

 

27.3

 

Restructuring total

 

$

23.9

 

 

$

(14.7

)

 

$

9.3

 

 

$

43.4

 

 

$

60.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Packaging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

4.3

 

 

$

—

 

 

$

0.5

 

 

$

6.5

 

 

$

6.5

 

Severance and other employee costs

 

 

20.5

 

 

 

6.2

 

 

 

9.7

 

 

 

45.4

 

 

 

46.7

 

Other restructuring costs

 

 

4.1

 

 

 

2.7

 

 

 

3.1

 

 

 

14.3

 

 

 

20.1

 

Restructuring total

 

$

28.9

 

 

$

8.9

 

 

$

13.3

 

 

$

66.2

 

 

$

73.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Paper

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

583.9

 

 

$

348.8

 

 

$

0.2

 

 

$

956.3

 

 

$

956.3

 

Severance and other employee costs

 

 

30.5

 

 

 

11.2

 

 

 

—

 

 

 

42.1

 

 

 

43.8

 

Other restructuring costs

 

 

109.0

 

 

 

8.0

 

 

 

0.1

 

 

 

125.2

 

 

 

259.9

 

Restructuring total

 

$

723.4

 

 

$

368.0

 

 

$

0.3

 

 

$

1,123.6

 

 

$

1,260.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and other employee costs

 

$

1.6

 

 

$

—

 

 

$

—

 

 

$

1.8

 

 

$

1.8

 

Other restructuring costs

 

 

10.0

 

 

 

1.0

 

 

 

—

 

 

 

11.0

 

 

 

13.3

 

Restructuring total

 

$

11.6

 

 

$

1.0

 

 

$

—

 

 

$

12.8

 

 

$

15.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

0.6

 

 

$

2.0

 

 

$

8.8

 

 

$

11.4

 

 

$

11.4

 

Severance and other employee costs

 

 

3.2

 

 

 

3.0

 

 

 

0.9

 

 

 

7.2

 

 

 

7.2

 

Other restructuring costs

 

 

12.3

 

 

 

5.3

 

 

 

(5.0

)

 

 

16.8

 

 

 

22.4

 

Restructuring total

 

$

16.1

 

 

$

10.3

 

 

$

4.7

 

 

$

35.4

 

 

$

41.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

598.2

 

 

$

333.0

 

 

$

11.2

 

 

$

987.3

 

 

$

987.3

 

Severance and other employee costs

 

 

66.3

 

 

 

20.9

 

 

 

15.3

 

 

 

116.7

 

 

 

119.9

 

Other restructuring costs

 

 

139.4

 

 

 

19.6

 

 

 

1.1

 

 

 

177.4

 

 

 

343.0

 

Restructuring total

 

$

803.9

 

 

$

373.5

 

 

$

27.6

 

 

$

1,281.4

 

 

$

1,450.2

 

 

We have defined “PP&E and related costs” as used in this Note 5 primarily as property, plant and equipment write-downs, subsequent adjustments to fair value for assets classified as held for sale, subsequent (gains) or losses on sales of property, plant and equipment, related parts and supplies on such assets, and deferred major maintenance costs, if any. We define "Other restructuring costs" as lease or other contract termination costs, facility carrying costs, equipment and inventory relocation costs, and other items, including impaired intangibles attributable to our restructuring actions.

Other Costs

Our other costs consist of acquisition, integration and divestiture 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. We incur integration costs pre- and post-acquisition that reflect work performed to facilitate merger and acquisition integration, such as work associated with information systems and

other projects including spending to support future acquisitions, and primarily consist of professional services and labor. Divestiture costs consist primarily of similar professional fees. We consider acquisition, integration and divestiture costs to be corporate costs regardless of the segment or segments involved in the transaction.

The following table presents acquisition, integration and divestiture costs that we incurred during the last three fiscal years (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Acquisition costs

 

$

26.1

 

 

$

4.4

 

 

$

0.5

 

Integration costs

 

 

9.1

 

 

 

0.7

 

 

 

1.7

 

Divestiture costs

 

 

20.1

 

 

 

4.4

 

 

 

0.8

 

Other total

 

$

55.3

 

 

$

9.5

 

 

$

3.0

 

 

Acquisition costs for fiscal 2023 in the table above primarily include transaction costs related to the Mexico Acquisition and the Transaction.

The following table summarizes the changes in the restructuring accrual, which is primarily composed of accrued severance and other employee costs, and a reconciliation of the restructuring accrual charges to the line item “Restructuring and other costs, net” on our consolidated statements of operations for the last three fiscal years (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Accrual at beginning of fiscal year

 

$

25.2

 

 

$

13.4

 

 

$

17.2

 

Additional accruals

 

 

70.5

 

 

 

33.4

 

 

 

17.4

 

Payments

 

 

(35.6

)

 

 

(15.9

)

 

 

(17.2

)

Adjustment to accruals

 

 

(4.6

)

 

 

(5.6

)

 

 

(2.1

)

Foreign currency rate changes and other

 

 

—

 

 

 

(0.1

)

 

 

(1.9

)

Accrual at end of fiscal year

 

$

55.5

 

 

$

25.2

 

 

$

13.4

 

 

Reconciliation of accruals and charges to restructuring and other costs, net (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Additional accruals and adjustments to accruals
   (see table above)

 

$

65.9

 

 

$

27.8

 

 

$

15.3

 

PP&E and related costs

 

 

598.2

 

 

 

333.0

 

 

 

11.2

 

Severance and other employee costs

 

 

0.4

 

 

 

0.5

 

 

 

0.3

 

Acquisition costs

 

 

26.1

 

 

 

4.4

 

 

 

0.5

 

Integration costs

 

 

9.1

 

 

 

0.7

 

 

 

1.7

 

Divestiture costs

 

 

20.1

 

 

 

4.4

 

 

 

0.8

 

Other restructuring costs

 

 

139.4

 

 

 

12.2

 

 

 

0.8

 

Total restructuring and other costs, net

 

$

859.2

 

 

$

383.0

 

 

$

30.6

 

 

Other restructuring costs for fiscal 2023 in the previous table primarily include $70.3 million of lease or other contract termination costs, $33.3 million of facility carrying costs and $22.5 million of impaired intangibles attributable to our restructuring actions.
v3.23.3
Retirement Plans
 12 Months Ended
Sep. 30, 2023
Retirement Plans [Abstract]  
Retirement Plans

Note 6. Retirement Plans

We have defined benefit pension plans and other postretirement benefit plans for certain U.S. and non-U.S. employees. We use a September 30 measurement date for our plans. Certain plans were frozen for salaried and non-union hourly employees at various times in the past, and nearly all of our remaining U.S. salaried and U.S. non-union hourly employees accruing benefits ceased accruing benefits as of December 31, 2020. In addition, we participate in several MEPPs that provide retirement benefits to certain union employees in accordance with various CBAs and have participated in other MEPPs in the past. 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. The supplemental executive retirement plans provide for incremental pension benefits in excess of those offered in the plan. 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 benefits under our defined benefit pension plans are based on either compensation or a combination of years of service and negotiated benefit levels, depending upon the plan. We allocate our pension assets to several investment management firms across a variety of investment styles. Our defined benefit Investment Committee meets at least four times a year with our investment advisors to review each management firm’s performance and monitors its compliance with its stated goals, our investment policy and applicable regulatory requirements in the U.S., Canada, and other jurisdictions.

Investment returns vary. We believe that, by investing in a variety of asset classes and utilizing multiple investment management firms, we can create a portfolio that yields adequate returns with reduced volatility. Our qualified U.S. plans employ a liability matching strategy augmented with Treasury futures to materially hedge against interest rate risk. After consultation with our actuary and investment advisors, we adopted the target allocations in the table below for our pension plans in an effort to produce the desired performance. These target allocations are guidelines, not limitations, and occasionally plan fiduciaries will approve allocations above or below target ranges or modify the allocations.

Our target asset allocations by asset category at September 30 were as follows:

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Equity investments

 

 

18

%

 

 

22

%

 

 

18

%

 

 

23

%

Fixed income investments

 

 

75

%

 

 

74

%

 

 

73

%

 

 

73

%

Short-term investments

 

 

1

%

 

 

1

%

 

 

1

%

 

 

1

%

Other investments

 

 

6

%

 

 

3

%

 

 

8

%

 

 

3

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

Our asset allocations by asset category at September 30 were as follows:

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Equity investments

 

 

15

%

 

 

22

%

 

 

18

%

 

 

21

%

Fixed income investments

 

 

73

%

 

 

70

%

 

 

70

%

 

 

73

%

Short-term investments

 

 

3

%

 

 

3

%

 

 

4

%

 

 

2

%

Other investments

 

 

9

%

 

 

5

%

 

 

8

%

 

 

4

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

We manage our retirement plans in accordance with the provisions of the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations thereunder as well as applicable legislation in Canada and other foreign countries. Our investment policy objectives include maximizing long-term returns at acceptable risk levels, diversifying among asset classes, as applicable, and among investment managers, as well as establishing certain risk parameters within asset classes. We have allocated our investments within the equity and fixed income asset classes to sub-asset classes designed to meet these objectives. In addition, our other investments support multi-strategy objectives.

In developing our weighted average expected rate of return on plan assets, we consulted with our investment advisors and evaluated criteria based on historical returns by asset class and long-term return expectations by asset class. We expect to contribute approximately $25 million to our U.S. and non-U.S. pension plans in fiscal

2024. However, it is possible that our assumptions or legislation may change, actual market performance may vary or we may decide to contribute a different amount. Therefore, the amount we contribute may vary materially. The expense for MEPPs for collective bargaining employees generally equals the contributions for these plans, excluding estimated accruals for withdrawal liabilities or adjustments to those accruals.

The weighted average assumptions used to measure the benefit plan obligations at September 30 were:

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Discount rate

 

 

6.24

%

 

 

5.85

%

 

 

5.63

%

 

 

5.12

%

Interest crediting rate

 

 

4.01

%

 

N/A

 

 

 

3.08

%

 

N/A

 

Rate of compensation increase

 

 

2.50

%

 

 

2.87

%

 

 

2.50

%

 

 

2.97

%

 

At September 30, 2023, the discount rate for the U.S. pension plans was determined based on the yield on a theoretical portfolio of high-grade corporate bonds, and the discount rate for the non-U.S. plans was determined based on a yield curve developed by our actuary. The theoretical portfolio of high-grade corporate bonds used to select the September 30, 2023 discount rate for the U.S. pension plans includes bonds generally rated Aa- or better with at least $100 million outstanding par value and bonds that are non-callable (unless the bonds possess a “make whole” feature). The theoretical portfolio of bonds has cash flows that generally match our expected benefit payments in future years.

Our assumption regarding the future rate of compensation increases is reviewed periodically and is based on both our internal planning projections and recent history of actual compensation increases.

We typically review our expected long-term rate of return on plan assets periodically through an asset allocation study with either our actuary or investment advisor. In fiscal 2024, our expected rate of return used to determine net periodic benefit cost is 6.75% for our U.S. plans and 5.33% for our non-U.S. plans. Our expected rates of return in fiscal 2024 are based on an analysis of our long-term expected rate of return and our current asset allocation.

In December 2019, the USW ratified a new master agreement that applies to substantially all of our U.S. facilities represented by the USW. The agreement has a four-year term and covers a number of specific items, including wages, medical coverage and certain other benefit programs, substance abuse testing, and safety. Individual facilities will continue to have local agreements for subjects not covered by the master agreement and those agreements will continue to have staggered terms. The master agreement permits us to apply its terms to USW employees who work at facilities we acquire during the term of the agreement. Negotiations towards a new master agreement commenced in November 2023, and a tentative agreement has been reached. It remains subject to approval of the requisite union membership.

The following table shows the changes in benefit obligation, plan assets and funded status for the years ended September 30 (in millions):

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of fiscal year

 

$

3,866.5

 

 

$

935.3

 

 

$

5,239.1

 

 

$

1,438.5

 

Service cost

 

 

22.6

 

 

 

6.6

 

 

 

40.8

 

 

 

7.0

 

Interest cost

 

 

208.7

 

 

 

50.3

 

 

 

152.1

 

 

 

36.1

 

Amendments

 

 

2.0

 

 

 

—

 

 

 

0.3

 

 

 

—

 

Actuarial gain

 

 

(240.8

)

 

 

(59.8

)

 

 

(1,317.1

)

 

 

(340.1

)

Plan participant contributions

 

 

—

 

 

 

1.4

 

 

 

—

 

 

 

1.7

 

Benefits paid

 

 

(270.3

)

 

 

(73.6

)

 

 

(246.9

)

 

 

(77.6

)

Curtailments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.2

 

Settlements

 

 

(0.7

)

 

 

(0.5

)

 

 

(1.8

)

 

 

(2.4

)

Business (divestitures) and acquisitions

 

 

(40.9

)

 

 

34.9

 

 

 

—

 

 

 

—

 

Foreign currency rate changes

 

 

—

 

 

 

43.1

 

 

 

—

 

 

 

(128.1

)

Benefit obligation at end of fiscal year

 

$

3,547.1

 

 

$

937.7

 

 

$

3,866.5

 

 

$

935.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of fiscal year

 

$

4,109.9

 

 

$

929.7

 

 

$

5,627.0

 

 

$

1,455.7

 

Actual gain (loss) on plan assets

 

 

173.3

 

 

 

(15.5

)

 

 

(1,281.4

)

 

 

(322.1

)

Employer contributions

 

 

17.2

 

 

 

11.0

 

 

 

13.0

 

 

 

8.2

 

Plan participant contributions

 

 

—

 

 

 

1.4

 

 

 

—

 

 

 

1.7

 

Benefits paid

 

 

(270.3

)

 

 

(73.6

)

 

 

(246.9

)

 

 

(77.6

)

Settlements

 

 

(0.7

)

 

 

(0.5

)

 

 

(1.8

)

 

 

(2.5

)

Business divestitures

 

 

(32.3

)

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency rate changes

 

 

—

 

 

 

43.5

 

 

 

—

 

 

 

(133.7

)

Fair value of plan assets at end of fiscal year

 

$

3,997.1

 

 

$

896.0

 

 

$

4,109.9

 

 

$

929.7

 

Funded (unfunded) status

 

$

450.0

 

 

$

(41.7

)

 

$

243.4

 

 

$

(5.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the Consolidated Balance
 Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid pension asset

 

$

560.9

 

 

$

57.4

 

 

$

379.1

 

 

$

61.2

 

Other current liabilities

 

 

(11.1

)

 

 

(7.7

)

 

 

(11.7

)

 

 

(1.4

)

Pension liabilities, net of current portion

 

 

(99.8

)

 

 

(91.4

)

 

 

(124.0

)

 

 

(65.4

)

Over (under) funded status at end of fiscal year

 

$

450.0

 

 

$

(41.7

)

 

$

243.4

 

 

$

(5.6

)

 

The actuarial (gain) loss in benefit obligation for the U.S. Plans and Non-U.S. Plans is generally driven by a change in discount rates and to a lesser degree the rate of compensation change in the Non-U.S. Plans.

 

Certain U.S. plans have benefit obligations in excess of plan assets. These plans, which consist of non-qualified plans, had aggregate projected benefit obligations of $110.8 million, aggregate accumulated benefit obligations of $110.8 million, and no plan assets at September 30, 2023. Our qualified U.S. plan was in a net overfunded position at September 30, 2023. We also have certain non-U.S. plans that have benefit obligations in excess of plan assets. These plans, which consist of non-qualified plans, had aggregate projected benefit obligations of $252.3 million, aggregate accumulated benefit obligations of $236.1 million, and $153.2 million of plan assets at September 30, 2023.

The accumulated benefit obligation of U.S. and non-U.S. pension plans was $4,459.4 million and $4,779.1 million at September 30, 2023 and 2022, respectively.

The pre-tax amounts in accumulated other comprehensive loss at September 30 not yet recognized as components of net periodic pension cost, including noncontrolling interest, consist of (in millions):

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Net actuarial loss

 

$

632.2

 

 

$

149.7

 

 

$

849.8

 

 

$

155.6

 

Prior service cost

 

 

27.9

 

 

 

1.6

 

 

 

34.6

 

 

 

1.8

 

Total accumulated other comprehensive loss

 

$

660.1

 

 

$

151.3

 

 

$

884.4

 

 

$

157.4

 

 

The pre-tax amounts recognized in other comprehensive (income) loss, including noncontrolling interest, are as follows at September 30 (in millions):

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

2021

 

Net actuarial (gain) loss arising during period

 

$

(153.3

)

 

$

315.3

 

 

$

(208.0

)

Amortization and settlement recognition of net actuarial loss

 

 

(58.1

)

 

 

(8.9

)

 

 

(34.5

)

Prior service cost arising during period

 

 

2.0

 

 

 

0.2

 

 

 

5.6

 

Amortization of prior service cost

 

 

(8.2

)

 

 

(8.9

)

 

 

(8.4

)

Net other comprehensive (income) loss recognized

 

$

(217.6

)

 

$

297.7

 

 

$

(245.3

)

 

The net periodic pension cost (income) recognized in the consolidated statements of operations is comprised of the following for fiscal years ended (in millions):

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

2021

 

Service cost

 

$

29.2

 

 

$

47.8

 

 

$

51.1

 

Interest cost

 

 

259.0

 

 

 

188.2

 

 

 

187.3

 

Expected return on plan assets

 

 

(305.2

)

 

 

(368.6

)

 

 

(368.1

)

Amortization of net actuarial loss

 

 

57.9

 

 

 

8.8

 

 

 

34.2

 

Amortization of prior service cost

 

 

8.2

 

 

 

8.4

 

 

 

8.4

 

Curtailment loss

 

 

—

 

 

 

0.5

 

 

 

—

 

Settlement loss

 

 

—

 

 

 

0.1

 

 

 

0.4

 

Company defined benefit plan cost (income)

 

 

49.1

 

 

 

(114.8

)

 

 

(86.7

)

Multiemployer and other plans

 

 

1.5

 

 

 

1.5

 

 

 

1.6

 

Net pension cost (income)

 

$

50.6

 

 

$

(113.3

)

 

$

(85.1

)

 

The Multiemployer and other plans line in the table above excludes the estimated withdrawal liabilities recorded. See “Note 6. Retirement Plans — Multiemployer Plans” for additional information.

 

The consolidated statements of operations line item “Pension and other postretirement non-service (cost) income” is equal to the non-service elements of our “Company defined benefit plan cost (income)” and our “Net postretirement cost” outlined in this note.

 

Weighted-average assumptions used in the calculation of benefit plan expense for fiscal years ended:

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

Discount rate

 

 

5.62

%

 

 

5.12

%

 

 

2.99

%

 

 

2.63

%

 

 

3.01

%

 

 

2.16

%

Interest crediting rate

 

 

3.08

%

 

N/A

 

 

 

3.48

%

 

N/A

 

 

 

3.47

%

 

N/A

 

Rate of compensation increase

 

 

2.50

%

 

 

2.97

%

 

 

2.50

%

 

 

2.65

%

 

 

2.50

%

 

 

2.68

%

Expected long-term rate of return on
   plan assets

 

 

6.50

%

 

 

5.08

%

 

 

5.75

%

 

 

3.81

%

 

 

6.00

%

 

 

3.73

%

 

For our U.S. pension and postretirement plans, we considered the mortality tables and improvement scales published by the Society of Actuaries and evaluated our specific mortality experience to establish mortality assumptions. Based on our experience and in consultation with our actuaries, for fiscal 2023, 2022 and 2021 we utilized the base Pri-2012 mortality tables with specific gender and job classification increases applied for fiscal 2023 ranging from 6% to 16%, fiscal 2022 ranging from 7% to 14% and for fiscal 2021 ranging from 6% to 13%.

For our Canadian pension and postretirement plans, we utilized the 2014 Private Sector Canadian Pensioners Mortality Table adjusted to reflect industry and our mortality experience for fiscal 2023, 2022 and 2021. As of September 30, 2023, these adjustment factors were updated to reflect the most recent mortality experience.

 

Our projected estimated benefit payments (unaudited), which reflect expected future service, as appropriate, are as follows (in millions):

 

 

 

Pension Plans

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Fiscal 2024

 

$

273.0

 

 

$

93.2

 

Fiscal 2025

 

$

277.2

 

 

$

72.5

 

Fiscal 2026

 

$

283.1

 

 

$

72.4

 

Fiscal 2027

 

$

286.4

 

 

$

72.6

 

Fiscal 2028

 

$

280.3

 

 

$

72.5

 

Fiscal Years 2029 – 2033

 

$

1,415.0

 

 

$

366.8

 

 

The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2023 (in millions):

 

 

 

Total

 

 

Quoted Prices
in Active
Markets for
Identical
Assets (Level 1)

 

 

Significant
Other
Observable
Inputs (Level 2)

 

Equity securities:

 

 

 

 

 

 

 

 

 

U.S. equities (1)

 

$

466.1

 

 

$

466.1

 

 

$

—

 

Non-U.S. equities (1)

 

 

235.4

 

 

 

235.4

 

 

 

—

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

U.S. government securities (2)

 

 

170.6

 

 

 

—

 

 

 

170.6

 

Non-U.S. government securities (3)

 

 

48.1

 

 

 

—

 

 

 

48.1

 

U.S. corporate bonds (3)

 

 

2,301.0

 

 

 

194.9

 

 

 

2,106.1

 

Non-U.S. corporate bonds (3)

 

 

503.4

 

 

 

—

 

 

 

503.4

 

Other fixed income (4)

 

 

208.2

 

 

 

—

 

 

 

208.2

 

Short-term investments (5)

 

 

166.8

 

 

 

166.8

 

 

 

—

 

Benefit plan assets measured in the fair value hierarchy

 

$

4,099.6

 

 

$

1,063.2

 

 

$

3,036.4

 

Assets measured at NAV (6)

 

 

793.5

 

 

 

 

 

 

 

Total benefit plan assets

 

$

4,893.1

 

 

 

 

 

 

 

 

 

The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2022 (in millions):

 

 

 

Total

 

 

Quoted Prices
in Active
Markets for
Identical
Assets (Level 1)

 

 

Significant
Other
Observable
Inputs (Level 2)

 

Equity securities:

 

 

 

 

 

 

 

 

 

U.S. equities (1)

 

$

150.7

 

 

$

150.7

 

 

$

—

 

Non-U.S. equities (1)

 

 

85.9

 

 

 

85.9

 

 

 

—

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

U.S. government securities (2)

 

 

164.3

 

 

 

—

 

 

 

164.3

 

Non-U.S. government securities (3)

 

 

74.5

 

 

 

—

 

 

 

74.5

 

U.S. corporate bonds (3)

 

 

2,173.7

 

 

 

95.4

 

 

 

2,078.3

 

Non-U.S. corporate bonds (3)

 

 

545.0

 

 

 

—

 

 

 

545.0

 

Other fixed income (4)

 

 

223.1

 

 

 

—

 

 

 

223.1

 

Short-term investments (5)

 

 

181.9

 

 

 

181.9

 

 

 

—

 

Benefit plan assets measured in the fair value hierarchy

 

$

3,599.1

 

 

$

513.9

 

 

$

3,085.2

 

Assets measured at NAV (6)

 

 

1,440.5

 

 

 

 

 

 

 

Total benefit plan assets

 

$

5,039.6

 

 

 

 

 

 

 

 

(1)
Equity securities are comprised of the following investment types: (i) common stock, (ii) preferred stock, and (iii) equity exchange traded funds. Level 1 investments in common and preferred stocks and exchange traded funds are valued using quoted market prices multiplied by the number of shares owned.
(2)
U.S. government securities include treasury and agency debt. These investments are valued using broker quotes in an active market.
(3)
The level 1 non-U.S. government securities investment is an exchange cleared swap valued using quoted market prices. The level 1 U.S. corporate bonds category is primarily comprised of U.S. dollar denominated investment grade securities and valued using quoted market prices. Level 2 investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data.
(4)
Other fixed income is comprised of municipal and asset-backed securities. Investments are valued utilizing a market approach that includes various valuation techniques and sources, such as broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads and/or other applicable reference data.
(5)
Short-term investments are valued at $1.00/unit, which approximates fair value. Amounts are generally invested in interest-bearing accounts.
(6)
Investments that are measured at net asset value (“NAV”) (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.

The following table summarizes assets measured at fair value based on NAV per share as a practical expedient as of September 30, 2023 and 2022 (in millions):

 

 

 

Fair value

 

 

Redemption
Frequency

 

Redemption
Notice Period

 

Unfunded
Commitments

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

Hedge funds (1)

 

$

42.7

 

 

Monthly

 

Up to 30 days

 

$

—

 

Commingled funds, private equity, private real
   estate investments, and equity related
   investments (2)

 

 

385.5

 

 

Various

 

N/A

 

 

206.3

 

Fixed income and fixed income related
   instruments (3)

 

 

365.3

 

 

Monthly

 

Up to 10 days

 

 

—

 

 

 

$

793.5

 

 

 

 

 

 

$

206.3

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

Hedge funds (1)

 

$

26.4

 

 

Monthly

 

Up to 30 days

 

$

—

 

Commingled funds, private equity, private real
   estate investments, and equity related
   investments (2)

 

 

1,031.9

 

 

Various

 

Up to 60 days

 

 

199.7

 

Fixed income and fixed income related
   instruments (3)

 

 

382.2

 

 

Monthly

 

Up to 10 days

 

 

—

 

 

 

$

1,440.5

 

 

 

 

 

 

$

199.7

 

 

(1)
Hedge fund investments are primarily made through shares of limited partnerships or similar structures. Hedge funds are typically valued monthly by third-party administrators that have been appointed by the funds’ general partners.

 

(2)
Commingled fund investments are valued at the NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques. The redemption frequency is reflected as various and the redemption notice period at September 30, 2023 is not applicable because certain investments do not allow redemptions until the investments are terminated or closed.

 

 

(3)
Fixed income and fixed income related instruments consist of commingled debt funds, which are valued at their NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques.

We maintain holdings in certain private equity partnerships and private real estate investments for which a liquid secondary market does not exist. The private equity partnerships are commingled investments. Valuation techniques, such as discounted cash flow and market based comparable analyses, are used to determine fair value of the private equity investments. Unobservable inputs used for the discounted cash flow technique include projected future cash flows and the discount rate used to calculate present value. Unobservable inputs used for the market-based comparisons technique include earnings before interest, taxes, depreciation and amortization multiples in other comparable third-party transactions, price to earnings ratios, liquidity, current operating results, as well as input from general partners and other pertinent information. Private equity investments have been valued using NAV as a practical expedient.

Private real estate investments are commingled investments. Valuation techniques, such as discounted cash flow and market based comparable analyses, are used to determine fair value of the private equity investments. Unobservable inputs used for the discounted cash flow technique include projected future cash flows and the discount rate used to calculate present value. Unobservable inputs used for the market-based comparison technique include a combination of third-party appraisals, replacement cost, and comparable market prices. Private real estate investments have been valued using NAV as a practical expedient.

Equity-related investments are hedged equity investments in a commingled fund that consist primarily of equity indexed investments which are hedged by options and also hold collateral in the form of short-term treasury securities. Equity related investments have been valued using NAV as a practical expedient.

Postretirement Plans

The 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 weighted average assumptions used to measure the benefit plan obligations at September 30 were:

 

 

 

Postretirement plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
 Plans

 

 

U.S. Plans

 

 

Non-U.S.
 Plans

 

Discount rate

 

 

6.21

%

 

 

8.14

%

 

 

5.57

%

 

 

7.56

%

 

The following table shows the changes in benefit obligation, plan assets and funded status for the fiscal years ended September 30 (in millions):

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of fiscal year

 

$

68.5

 

 

$

48.3

 

 

$

86.4

 

 

$

58.3

 

Service cost

 

 

0.5

 

 

 

0.3

 

 

 

0.6

 

 

 

0.4

 

Interest cost

 

 

3.5

 

 

 

3.7

 

 

 

2.6

 

 

 

3.8

 

Actuarial gain

 

 

(7.2

)

 

 

(1.0

)

 

 

(16.3

)

 

 

(9.8

)

Benefits paid

 

 

(5.9

)

 

 

(2.8

)

 

 

(4.8

)

 

 

(2.8

)

Curtailments

 

 

(0.1

)

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency rate changes

 

 

—

 

 

 

2.1

 

 

 

—

 

 

 

(1.6

)

Benefit obligation at end of fiscal year

 

$

59.3

 

 

$

50.6

 

 

$

68.5

 

 

$

48.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of fiscal year

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Employer contributions

 

 

5.9

 

 

 

2.8

 

 

 

4.8

 

 

 

2.8

 

Benefits paid

 

 

(5.9

)

 

 

(2.8

)

 

 

(4.8

)

 

 

(2.8

)

Fair value of plan assets at end of fiscal year

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Underfunded Status

 

$

(59.3

)

 

$

(50.6

)

 

$

(68.5

)

 

$

(48.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the Consolidated Balance
 Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

(7.9

)

 

$

(2.9

)

 

$

(8.7

)

 

$

(2.7

)

Postretirement benefit liabilities, net of current portion

 

 

(51.4

)

 

 

(47.7

)

 

 

(59.8

)

 

 

(45.6

)

Underfunded status at end of fiscal year

 

$

(59.3

)

 

$

(50.6

)

 

$

(68.5

)

 

$

(48.3

)

 

The pre-tax amounts in accumulated other comprehensive loss at September 30 not yet recognized as components of net periodic postretirement cost, including noncontrolling interest, consist of (in millions):

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Net actuarial gain

 

$

(35.7

)

 

$

(5.0

)

 

$

(32.2

)

 

$

(4.8

)

Prior service (credit) cost

 

 

(1.4

)

 

 

0.8

 

 

 

(2.3

)

 

 

1.0

 

Total accumulated other comprehensive income

 

$

(37.1

)

 

$

(4.2

)

 

$

(34.5

)

 

$

(3.8

)

 

 

The pre-tax amounts recognized in other comprehensive (income) loss, including noncontrolling interest, are as follows at September 30 (in millions):

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

2021

 

Net actuarial gain arising during period

 

$

(8.3

)

 

$

(26.2

)

 

$

(14.2

)

Amortization and settlement recognition of net actuarial gain

 

 

4.6

 

 

 

0.5

 

 

 

0.6

 

Amortization or curtailment recognition of prior service credit

 

 

0.6

 

 

 

0.7

 

 

 

2.4

 

Net other comprehensive income recognized

 

$

(3.1

)

 

$

(25.0

)

 

$

(11.2

)

 

The net periodic postretirement cost recognized in the consolidated statements of operations is comprised of the following for fiscal years ended (in millions):

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

2021

 

Service cost

 

$

0.8

 

 

$

1.0

 

 

$

1.2

 

Interest cost

 

 

7.2

 

 

 

6.4

 

 

 

5.9

 

Amortization of net actuarial gain

 

 

(4.6

)

 

 

(0.5

)

 

 

(0.6

)

Amortization of prior service credit

 

 

(0.6

)

 

 

(0.7

)

 

 

(2.4

)

Curtailment gain

 

 

(0.1

)

 

 

—

 

 

 

—

 

Net postretirement cost

 

$

2.7

 

 

$

6.2

 

 

$

4.1

 

 

The assumed health care cost trend rates used in measuring the accumulated postretirement benefit obligation are as follows at September 30, 2023:

 

U.S. Plans

 

 

 

Health care cost trend rate assumed for next year

 

 

4.97

%

Rate to which the cost trend rate is assumed to decline (the ultimate
   trend rate)

 

 

4.00

%

Year the rate reaches the ultimate trend rate

 

2047

 

 

 

 

 

Non-U.S. Plans

 

 

 

Health care cost trend rate assumed for next year

 

 

5.88

%

Rate to which the cost trend rate is assumed to decline (the ultimate
   trend rate)

 

 

5.88

%

Year the rate reaches the ultimate trend rate

 

2023

 

 

 

Weighted-average assumptions used in the calculation of benefit plan expense for fiscal years ended:

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

Discount rate

 

 

5.57

%

 

 

7.56

%

 

 

2.98

%

 

 

6.45

%

 

 

3.00

%

 

 

4.84

%

Rate of compensation increase

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

 

 

Our projected estimated benefit payments (unaudited), which reflect expected future service, as appropriate, are as follows (in millions):

 

 

 

Postretirement Plans

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Fiscal 2024

 

$

7.9

 

 

$

2.9

 

Fiscal 2025

 

$

6.9

 

 

$

3.1

 

Fiscal 2026

 

$

6.4

 

 

$

3.2

 

Fiscal 2027

 

$

5.9

 

 

$

3.2

 

Fiscal 2028

 

$

5.6

 

 

$

3.3

 

Fiscal Years 2029 – 2033

 

$

24.2

 

 

$

18.2

 

 

Multiemployer Plans

We participate in several MEPPs that provide retirement benefits to certain union employees in accordance with various CBAs. The risks of participating in MEPPs are different from the risks of participating in single-employer pension plans. These risks include (i) assets contributed to a MEPP by one employer are used to provide benefits to employees of all participating employers, (ii) if a participating employer withdraws from a MEPP, the unfunded obligations of the MEPP allocable to such withdrawing employer may be borne by the remaining participating employers, and (iii) if we withdraw from a MEPP, we may be required to pay that plan an amount based on our allocable share of the unfunded vested benefits of the plan, referred to as a withdrawal liability, as well as a share of the MEPP’s accumulated funding deficiency.

Contributions to MEPPs are established by the applicable CBAs; however, our required contributions may increase based on the funded status of a MEPP and legal requirements, such as those set forth in the Pension Act, which requires substantially underfunded MEPPs to implement a FIP or a RP to improve their funded status. Contributions to MEPPs are individually and in the aggregate not material.

In the normal course of business, we evaluate our potential exposure to MEPPs, including with respect to potential withdrawal liabilities. In fiscal 2018, we submitted formal notification to withdraw from certain MEPPs, including PIUMPF, and recorded estimated withdrawal liabilities for each. The PIUMPF estimated withdrawal liability assumed both a payment for withdrawal liability and for our proportionate share of PIUMPF’s accumulated funding deficiency. The estimated withdrawal liability excludes the potential impact of a future mass withdrawal of other employers from PIUMPF, which was not considered probable or reasonably estimable and was discounted at a credit adjusted risk-free rate.

In September 2019, we received a demand from PIUMPF asserting that we owe $170.3 million on an undiscounted basis (approximately $0.7 million per month for the next 20 years) with respect to our withdrawal liability. The initial demand did not address any assertion of liability for PIUMPF’s accumulated funding deficiency. We began making monthly payments for the withdrawal liability in fiscal 2020. In February 2020, we received a demand letter from PIUMPF asserting that we owe $51.2 million for our pro-rata share of PIUMPF’s accumulated funding deficiency, including interest. We dispute the PIUMPF accumulated funding deficiency demands. Similarly, in April 2020, we received an updated demand letter related to a subsidiary of ours asserting that we owe $1.3 million of additional accumulated funding deficiency, including interest. We assessed our liability following receipt of the demand letters, the impact of which was not significant. The subsidiary for which we received the updated demand letter was sold in September 2023. We also have liabilities associated with other MEPPs from which we, or legacy companies, have withdrawn in the past.

In July 2021, PIUMPF filed suit against us in the U.S. District Court for the Northern District of Georgia claiming the right to recover our pro rata share of the pension fund’s accumulated funding deficiency, along with interest, liquidated damages and attorney’s fees. We believe we are adequately reserved for this matter.

At September 30, 2023 and September 30, 2022, we had recorded withdrawal liabilities of $203.2 million and $214.7 million, respectively including liabilities associated with PIUMPF’s accumulated funding deficiency demands.

The liability reduction in fiscal 2023 was primarily the result of non-PIUMPF arbitrations, the impact of which is reflected in Multiemployer pension withdrawal (income) expense on our consolidated statements of operations.

With respect to certain other MEPPs, in the event we withdraw from one or more of the MEPPs in the future, it is reasonably possible that we may incur withdrawal liabilities in connection with such withdrawals. Our estimate of any such withdrawal liabilities, both individually and in the aggregate, are not material for the remaining plans in which we participate.

Approximately 54% of our hourly employees in the U.S. and Canada are covered by CBAs, of which approximately 25% of those employees covered under CBAs are operating under local agreements that expire within one year and approximately 11% of those employees are governed under expired local contracts.

Defined Contribution Plans

We have 401(k) and other defined contribution plans that cover certain of our U.S., Canadian and other non-U.S. salaried union and nonunion hourly employees, generally subject to an initial waiting period. The 401(k) and other defined contribution plans permit participants to make contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue Code, or the taxing authority in the jurisdiction in which they operate. Due primarily to acquisitions, CBAs, and other non-U.S. defined contribution programs, we have plans with varied terms. At September 30, 2023, our contributions may be up to 7.5% for U.S. salaried and non-union hourly employees, consisting of a match of up to 5% and an automatic employer contribution of 2.5%. Certain other employees who receive accruals under a defined benefit pension plan, as well as certain employees covered by CBAs and non-U.S. defined contribution programs generally receive up to a 3.0% to 4.0% contribution to their 401(k) plan or defined contribution plan. During fiscal 2023, 2022 and 2021, we recorded expense of $163.7 million, $169.5 million and $164.7 million, respectively, related to employer contributions to the 401(k) plans and other defined contribution plans, including the automatic employer contribution. We funded our matching contributions to the WestRock Company 401(k) Retirement Savings Plan in Common Stock effective July 1, 2020 and ending September 30, 2021 (final period funded in October 2021).

Supplemental Retirement Plans

We have Supplemental Plans that are nonqualified deferred compensation plans. We intend to provide participants with an opportunity to supplement their retirement income through deferral of current compensation. Amounts deferred and payable under the Supplemental Plans are our unsecured obligations and rank equally with our other unsecured and unsubordinated indebtedness outstanding. Participants’ accounts are credited with investment gains and losses under the Supplemental Plans in accordance with the participant’s investment election or elections (or default election or elections) as in effect from time to time. At September 30, 2023, the Supplemental Plans had assets totaling $152.4 million that are recorded at market value, and liabilities of $146.4 million. The investment alternatives available under the Supplemental Plans are generally similar to investment alternatives available under 401(k) plans. The amount of expense we recorded for the current fiscal year and the preceding two fiscal years was not significant.
v3.23.3
Income Taxes
 12 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

Note 7. Income Taxes

The components of (loss) income before income taxes are as follows (in millions):

 

 

 

Year Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

United States

 

$

(1,586.3

)

 

$

860.4

 

 

$

822.4

 

Foreign

 

 

(118.3

)

 

 

358.4

 

 

 

263.5

 

(Loss) income before income taxes

 

$

(1,704.6

)

 

$

1,218.8

 

 

$

1,085.9

 

 

Income tax (benefit) expense consists of the following components (in millions):

 

 

 

Year Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Current income taxes:

 

 

 

 

 

 

 

 

 

Federal

 

$

250.6

 

 

$

205.2

 

 

$

171.2

 

State

 

 

49.1

 

 

 

44.9

 

 

 

27.2

 

Foreign

 

 

115.1

 

 

 

116.1

 

 

 

78.4

 

Total current expense

 

 

414.8

 

 

 

366.2

 

 

 

276.8

 

Deferred income taxes:

 

 

 

 

 

 

 

 

 

Federal

 

 

(364.8

)

 

 

(67.3

)

 

 

(39.0

)

State

 

 

(57.5

)

 

 

(16.2

)

 

 

(10.2

)

Foreign

 

 

(52.9

)

 

 

(13.1

)

 

 

15.8

 

Total deferred benefit

 

 

(475.2

)

 

 

(96.6

)

 

 

(33.4

)

Total income tax (benefit) expense

 

$

(60.4

)

 

$

269.6

 

 

$

243.4

 

During fiscal 2023, 2022 and 2021, cash paid for income taxes, net of refunds, was $321.6 million, $335.2 million and $271.9 million, respectively.

 

The differences between the statutory federal income tax rate and our effective income tax rate are as follows:

 

 

 

Year Ended September 30,

 

 

 

2023 (1)

 

 

2022

 

 

2021

 

Statutory federal tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

Foreign rate differential

 

 

1.0

 

 

 

2.1

 

 

 

0.9

 

Adjustment and resolution of federal, state and foreign tax
   uncertainties

 

 

0.2

 

 

 

(0.4

)

 

 

0.1

 

State taxes, net of federal benefit

 

 

0.9

 

 

 

1.6

 

 

 

2.0

 

Excess tax benefit related to stock compensation

 

 

(0.2

)

 

 

0.1

 

 

 

0.2

 

Research and development and other tax credits, net of
   reserves

 

 

0.5

 

 

 

(1.2

)

 

 

(0.5

)

Income (loss) attributable to noncontrolling interest

 

 

0.1

 

 

 

(0.1

)

 

 

0.1

 

Change in valuation allowance

 

 

(0.9

)

 

 

0.7

 

 

 

2.8

 

Goodwill impairment

 

 

(20.2

)

 

 

—

 

 

 

—

 

Nontaxable increased cash surrender value

 

 

0.5

 

 

 

—

 

 

 

(1.1

)

Withholding taxes

 

 

(0.1

)

 

 

0.5

 

 

 

0.2

 

Foreign derived intangible income

 

 

0.7

 

 

 

(1.0

)

 

 

(1.2

)

Deferred rate change

 

 

0.2

 

 

 

(0.6

)

 

 

(1.0

)

Brazilian net worth deduction

 

 

—

 

 

 

(1.1

)

 

 

(0.7

)

Other, net

 

 

(0.2

)

 

 

0.5

 

 

 

(0.4

)

Effective tax rate

 

 

3.5

%

 

 

22.1

%

 

 

22.4

%

 

(1)
Certain signs within the table in fiscal 2023 are the opposite compared to fiscal 2022 and 2021 as a result of applying each line’s total income tax benefit or expense to the loss before income taxes.

 

The tax effects of temporary differences that give rise to deferred income tax assets and liabilities consist of the following (in millions):

 

 

September 30,

 

 

 

2023

 

 

2022

 

Deferred income tax assets:

 

 

 

 

 

 

Accruals and allowances

 

$

14.9

 

 

$

—

 

Employee related accruals and allowances

 

 

109.2

 

 

 

107.6

 

State net operating loss carryforwards, net of federal benefit

 

 

36.6

 

 

 

43.6

 

State credit carryforwards, net of federal benefit

 

 

89.3

 

 

 

89.7

 

Federal and foreign net operating loss carryforwards

 

 

186.5

 

 

 

165.8

 

Restricted stock and options

 

 

23.4

 

 

 

26.7

 

Lease liabilities

 

 

177.3

 

 

 

177.4

 

Capitalized research and experimental costs

 

 

79.8

 

 

 

—

 

Other

 

 

69.6

 

 

 

44.6

 

Total

 

 

786.6

 

 

 

655.4

 

Deferred income tax liabilities:

 

 

 

 

 

 

Accruals and allowances

 

 

—

 

 

 

9.0

 

Property, plant and equipment

 

 

1,532.4

 

 

 

1,669.5

 

Deductible intangibles and goodwill

 

 

596.5

 

 

 

724.1

 

Inventory reserves

 

 

231.9

 

 

 

261.4

 

Deferred gain

 

 

272.5

 

 

 

272.8

 

Basis difference in joint ventures

 

 

4.5

 

 

 

35.9

 

Pension

 

 

48.8

 

 

 

2.7

 

Right-of-use assets

 

 

161.0

 

 

 

166.1

 

Total

 

 

2,847.6

 

 

 

3,141.5

 

Valuation allowances

 

 

271.9

 

 

 

248.8

 

Net deferred income tax liability

 

$

2,332.9

 

 

$

2,734.9

 

 

Deferred taxes are recorded as follows in the consolidated balance sheets (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Long-term deferred tax asset (1)

 

$

100.3

 

 

$

27.0

 

Long-term deferred tax liability

 

 

2,433.2

 

 

 

2,761.9

 

Net deferred income tax liability

 

$

2,332.9

 

 

$

2,734.9

 

 

(1)
The long-term deferred tax asset is presented in Other noncurrent assets on the consolidated balance sheets.

At September 30, 2023 and 2022, we had gross U.S. federal net operating losses of approximately $1.8 million and $1.2 million, respectively. These loss carryforwards expire in fiscal 2031.

At September 30, 2023 and 2022, we had gross state and local net operating losses, of approximately $861 million and $969 million, respectively. These loss carryforwards generally expire between fiscal 2024 and 2042. The tax effected values of these net operating losses are $36.6 million and $43.6 million at September 30, 2023 and 2022, respectively, exclusive of valuation allowances of $17.8 million and $17.7 million at September 30, 2023 and 2022, respectively.

At September 30, 2023 and 2022, gross net operating losses for foreign reporting purposes of approximately $760.6 million and $667.2 million, respectively, were available for carryforward. A majority of these loss carryforwards generally expire between fiscal 2024 and 2042, while a portion have an indefinite carryforward. The tax effected values of these net operating losses are $189.8 million and $165.5 million at September 30, 2023 and 2022, respectively, exclusive of valuation allowances of $156.6 million and $143.8 million at September 30, 2023 and 2022, respectively.

At September 30, 2023 and 2022, we had state tax credit carryforwards of $89.3 million and $89.7 million, respectively. These state tax credit carryforwards generally expire within 5 to 10 years; however, certain state credits can be carried forward indefinitely. Valuation allowances of $81.0 million and $81.1 million at September 30, 2023 and 2022, respectively, have been provided on these assets. These valuation allowances have been recorded due to uncertainty regarding our ability to generate sufficient taxable income in the appropriate taxing jurisdiction.

The following table represents a summary of the valuation allowances against deferred tax assets for fiscal 2023, 2022 and 2021 (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of fiscal year

 

$

248.8

 

 

$

277.5

 

 

$

257.5

 

Increases

 

 

29.0

 

 

 

12.3

 

 

 

22.2

 

Reductions

 

 

(5.9

)

 

 

(41.0

)

 

 

(2.2

)

Balance at end of fiscal year

 

$

271.9

 

 

$

248.8

 

 

$

277.5

 

 

Consistent with prior years, we consider a portion of our earnings from certain foreign subsidiaries as subject to repatriation and we provide for taxes accordingly. However, we consider the unremitted earnings and all other outside basis differences from all other foreign subsidiaries to be indefinitely reinvested. Accordingly, we have not provided for any taxes that would be due.

As of September 30, 2023, we estimate our outside basis difference in foreign subsidiaries that are considered indefinitely reinvested to be approximately $1.3 billion. The components of the outside basis difference are comprised of acquisition accounting adjustments, undistributed earnings, and equity components. In the event of a distribution in the form of dividends or dispositions of the subsidiaries, we may be subject to incremental U.S. income taxes, subject to an adjustment for foreign tax credits, and withholding taxes or income taxes payable to the foreign jurisdictions. As of September 30, 2023, the determination of the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis differences is not practicable.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of fiscal year

 

$

195.5

 

 

$

199.5

 

 

$

206.7

 

Additions for tax positions taken in current year

 

 

4.5

 

 

 

1.8

 

 

 

2.7

 

Additions for tax positions taken in prior fiscal years

 

 

14.2

 

 

 

27.6

 

 

 

10.8

 

Reclassification to unrecognized tax benefit (1)

 

 

221.9

 

 

 

—

 

 

 

—

 

Reductions for tax positions taken in prior fiscal years

 

 

(1.3

)

 

 

—

 

 

 

—

 

Reductions due to settlement

 

 

(2.5

)

 

 

(0.8

)

 

 

—

 

Additions (reductions) for currency translation adjustments

 

 

2.4

 

 

 

(1.1

)

 

 

1.5

 

Reductions as a result of a lapse of the applicable statute of
   limitations

 

 

(29.6

)

 

 

(31.5

)

 

 

(22.2

)

Balance at end of fiscal year

 

$

405.1

 

 

$

195.5

 

 

$

199.5

 

 

 

(1)
During the fourth quarter of fiscal 2023, we undertook certain internal transactions to bring the legal entity that acquired Grupo Gondi into the affiliated group of companies electing to file a U.S. consolidated federal income tax return. As a result of those transactions and in accordance with the requirements of ASC 740, we recorded an addition for gross unrecognized tax benefits of $221.9 million related to the deferred gain on Timber Notes (as hereinafter defined). See “Note 17. Special Purpose Entities” for additional information.

As of September 30, 2023 and 2022, the total amount of unrecognized tax benefits was approximately $405.1 million and $195.5 million, respectively, exclusive of interest and penalties. Of these balances, as of September 30, 2023 and 2022, if we were to prevail on all unrecognized tax benefits recorded, approximately $400.6 million and $188.1 million, respectively, would benefit the effective tax rate. We regularly evaluate, assess and adjust the related liabilities in light of changing facts and circumstances, which could cause the effective tax rate to fluctuate from period to period. Resolution of the uncertain tax positions could have a material adverse effect on our cash flows or materially benefit our results of operations in future periods depending upon their ultimate resolution. See “Note 19. Commitments and Contingencies — Brazil Tax Liability” for additional information.

As of September 30, 2023 and 2022, we had liabilities of $100.2 million and $85.0 million, respectively, related to estimated interest and penalties for unrecognized tax benefits. Our results of operations for fiscal 2023, 2022 and 2021 include expense of $8.0 million, $3.8 million and $4.4 million, respectively, net of indirect benefits, related to estimated interest and penalties with respect to the liability for unrecognized tax benefits. As of September 30, 2023, it is reasonably possible that our unrecognized tax benefits will decrease by up to $0.5 million in the next 12 months due to expiration of various statutes of limitations and settlement of issues.

We file federal, state and local income tax returns in the U.S. and various foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal income tax examinations by tax authorities for years prior to fiscal 2018 and state and local income tax examinations by tax authorities for years prior to fiscal 2012. We are no longer subject to non-U.S. income tax examinations by tax authorities for years prior to fiscal 2009, except for Brazil for which we are not subject to tax examinations for years prior to 2006. While we believe our tax positions are appropriate, they are subject to audit or other modifications, and any modifications could materially and adversely affect our results of operations, financial condition or cash flows.
v3.23.3
Segment Information
 12 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information

Note 8. Segment Information

 

We report our financial results of operations in the following four reportable segments:

•
Corrugated Packaging, which substantially consists of our integrated corrugated converting operations and generates its revenues primarily from the sale of corrugated containers and other corrugated products, including the operations acquired in the Mexico Acquisition;
•
Consumer Packaging, which consists of our integrated consumer converting operations and generates its revenues primarily from the sale of consumer packaging products such as folding cartons, interior partitions (before divestiture in September 2023) and other consumer products;
•
Global Paper, which consists of our commercial paper operations and generates its revenues primarily from the sale of containerboard and paperboard to external customers; and
•
Distribution, which consists of our distribution and display assembly operations and generates its revenues primarily from the distribution of packaging products and assembly of display products.

We determined our operating segments based on the products and services we offer. Our operating segments are consistent with our internal management structure, and we do not aggregate operating segments. We report the benefit of vertical integration with our mills in each reportable segment that ultimately sells the associated paper and packaging products to our external customers. We account for intersegment sales at prices that approximate market prices.

 

We have included the operations acquired in the Mexico Acquisition in our Corrugated Packaging segment, which is consistent with our internal operational structure and how our CODM allocates resources and assesses financial performance. See “Note 3. Acquisitions” for additional information. As part of this assessment, we also moved certain existing consumer converting operations in Latin America into our Corrugated Packaging segment in line with how we are managing the business effective January 1, 2023. We did not recast prior year results related to these operations as they were not material.

 

Adjusted EBITDA is our measure of segment profitability in accordance with ASC 280, “Segment Reporting” because it is used by our CODM to make decisions regarding allocation of resources and to assess segment performance. Certain items are not allocated to our operating segments and, thus, the information that our CODM uses to make operating decisions and assess performance does not reflect such amounts. Management believes excluding these items is useful in the evaluation of operating performance from period to period because these items are not representative of our ongoing operations or are items our CODM does not consider part of our reportable segments.

Some of our operations are in locations such as Canada, Latin America, EMEA and Asia Pacific. The table below reflects financial data of our foreign operations for each of the past three fiscal years, some of which were transacted in U.S. dollars (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Net sales (unaffiliated customers):

 

U.S.

 

$

15,348.9

 

 

$

17,361.5

 

 

$

15,317.2

 

Canada

 

 

1,281.0

 

 

 

1,325.1

 

 

 

1,210.4

 

Latin America

 

 

2,081.8

 

 

 

1,045.6

 

 

 

745.4

 

EMEA

 

 

1,256.1

 

 

 

1,150.5

 

 

 

1,106.0

 

Asia Pacific

 

 

342.2

 

 

 

373.8

 

 

 

367.1

 

Total

 

$

20,310.0

 

 

$

21,256.5

 

 

$

18,746.1

 

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Long-lived assets:

 

U.S.

 

$

8,598.6

 

 

$

9,278.2

 

 

$

9,654.6

 

Canada

 

 

389.7

 

 

 

391.4

 

 

 

413.0

 

Latin America (1)

 

 

2,283.6

 

 

 

719.0

 

 

 

725.8

 

EMEA

 

 

376.7

 

 

 

320.4

 

 

 

364.9

 

Asia Pacific

 

 

63.1

 

 

 

72.0

 

 

 

87.8

 

Total

 

$

11,711.7

 

 

$

10,781.0

 

 

$

11,246.1

 

 

(1)
Includes operations in Mexico that are approximately 13.4% of total long-lived assets in fiscal 2023 following the Mexico Acquisition.

 

The accounting policies of the reportable segments are the same as those described in “Note 1. Description of Business and Summary of Significant Accounting Policies”. We account for intersegment sales at prices that approximate market prices. For segment reporting purposes, we include our equity in income of unconsolidated entities in Adjusted EBITDA, as well as the related investments in segment identifiable assets. These amounts are included in the segment tables that follow.

 

The following tables show selected financial data for our segments (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Net sales (aggregate):

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

10,054.9

 

 

$

9,307.6

 

 

$

8,400.5

 

Consumer Packaging

 

 

4,941.8

 

 

 

4,965.2

 

 

 

4,433.9

 

Global Paper

 

 

4,369.9

 

 

 

5,930.2

 

 

 

4,983.0

 

Distribution

 

 

1,260.7

 

 

 

1,418.9

 

 

 

1,254.8

 

Total

 

$

20,627.3

 

 

$

21,621.9

 

 

$

19,072.2

 

Less net sales (intersegment):

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

280.3

 

 

$

328.0

 

 

$

305.3

 

Consumer Packaging

 

 

30.7

 

 

 

27.8

 

 

 

20.3

 

Distribution

 

 

6.3

 

 

 

9.6

 

 

 

0.5

 

Total

 

$

317.3

 

 

$

365.4

 

 

$

326.1

 

Net sales (unaffiliated customers):

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

9,774.6

 

 

$

8,979.6

 

 

$

8,095.2

 

Consumer Packaging

 

 

4,911.1

 

 

 

4,937.4

 

 

 

4,413.6

 

Global Paper

 

 

4,369.9

 

 

 

5,930.2

 

 

 

4,983.0

 

Distribution

 

 

1,254.4

 

 

 

1,409.3

 

 

 

1,254.3

 

Total

 

$

20,310.0

 

 

$

21,256.5

 

 

$

18,746.1

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

1,600.4

 

 

$

1,386.7

 

 

$

1,394.0

 

Consumer Packaging

 

 

835.7

 

 

 

829.2

 

 

 

720.8

 

Global Paper

 

 

655.0

 

 

 

1,246.4

 

 

 

883.7

 

Distribution

 

 

37.0

 

 

 

79.7

 

 

 

68.8

 

Total

 

 

3,128.1

 

 

 

3,542.0

 

 

 

3,067.3

 

Depreciation, depletion and amortization

 

 

(1,535.8

)

 

 

(1,488.6

)

 

 

(1,460.0

)

Multiemployer pension withdrawal income (expense)

 

 

12.1

 

 

 

(0.2

)

 

 

2.9

 

Restructuring and other costs, net

 

 

(859.2

)

 

 

(383.0

)

 

 

(30.6

)

Impairment of goodwill and other assets

 

 

(1,893.0

)

 

 

(26.0

)

 

 

—

 

Non-allocated expenses

 

 

(149.5

)

 

 

(82.6

)

 

 

(68.1

)

Interest expense, net

 

 

(417.9

)

 

 

(318.8

)

 

 

(372.3

)

Gain (loss) on extinguishment of debt

 

 

10.5

 

 

 

(8.5

)

 

 

(9.7

)

Other (expense) income, net

 

 

(6.1

)

 

 

(11.0

)

 

 

10.9

 

Gain on sale of RTS and Chattanooga

 

 

238.8

 

 

 

—

 

 

 

—

 

Other adjustments

 

 

(232.6

)

 

 

(4.5

)

 

 

(54.5

)

(Loss) income before income taxes

 

$

(1,704.6

)

 

$

1,218.8

 

 

$

1,085.9

 

 

 

See “Note 5. Restructuring and Other Costs, Net” for additional information on how the Restructuring and other costs, net relate to our reportable segments. See below for information on the goodwill impairment recorded in fiscal 2023. See “Note 1. Description of Business and Summary of Significant Accounting Policies — Description of Business” for additional information regarding the Gain on Sale of RTS and Chattanooga. See below for additional information on Other adjustments in fiscal 2023 and 2021.

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

813.3

 

 

$

683.0

 

 

$

674.5

 

Consumer Packaging

 

 

339.1

 

 

 

349.5

 

 

 

352.2

 

Global Paper

 

 

350.7

 

 

 

425.1

 

 

 

405.9

 

Distribution

 

 

28.0

 

 

 

27.3

 

 

 

23.6

 

Corporate

 

 

4.7

 

 

 

3.7

 

 

 

3.8

 

Total

 

$

1,535.8

 

 

$

1,488.6

 

 

$

1,460.0

 

 

 

 

 

 

 

 

 

 

 

Other adjustments:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

39.5

 

 

$

(4.8

)

 

$

13.3

 

Consumer Packaging

 

 

60.4

 

 

 

7.7

 

 

 

11.7

 

Global Paper

 

 

52.8

 

 

 

(0.6

)

 

 

3.3

 

Distribution

 

 

0.2

 

 

 

—

 

 

 

0.6

 

Corporate

 

 

79.7

 

 

 

2.2

 

 

 

25.6

 

Total

 

$

232.6

 

 

$

4.5

 

 

$

54.5

 

 

 

 

 

 

 

 

 

 

 

Equity in income of unconsolidated entities:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

(4.9

)

 

$

70.3

 

 

$

36.7

 

Consumer Packaging

 

 

—

 

 

 

3.4

 

 

 

4.0

 

Global Paper

 

 

8.3

 

 

 

(0.8

)

 

 

0.2

 

Total

 

$

3.4

 

 

$

72.9

 

 

$

40.9

 

 

The decrease in Equity in income of unconsolidated entities in fiscal 2023 was primarily related to a $46.8 million non-cash, pre-tax loss associated with the Mexico Acquisition that was partially offset by a $19.3 million gain on sale of our displays joint venture and a $7.6 million gain on sale of our Seven Hills mill joint venture. Additionally, the change year-over-year was impacted by no longer recording equity income after those transactions as well as stronger performance by the displays joint venture in the prior year period. See “Note 1. Description of Business and Summary of Significant Accounting Policies — Description of Business” for additional information.

 

Other adjustments in the table above for the year ended September 30, 2023 consist primarily of:

•
work stoppage costs of $80.4 million primarily at our Mahrt mill; $58.5 million in our Consumer Packaging segment, $19.3 million in our Global Paper segment and $2.6 million of other costs in our Corrugated Packaging segment,
•
business systems transformation costs in Corporate of $79.1 million,
•
a $46.8 million non-cash, pre-tax loss in the Corrugated Packaging segment related to the Mexico Acquisition as discussed in “Note 3. Acquisitions,” partially offset by a $19.3 million gain on the sale our former displays joint venture in our Corrugated Packaging segment and a $4.3 million gain on the sale of our Seven Hills mill joint venture in Lynchburg, VA in our Global Paper segment,
•
losses at facilities in the process of being closed of $40.6 million (excluding depreciation and amortization), primarily $32.6 million in our Global Paper segment and $5.3 million in our Corrugated Packaging segment, and
•
acquisition accounting inventory-related adjustments of $7.6 million and $5.5 million in the Corrugated Packaging and Global Paper segments, respectively.

 

Other adjustments in the table above for the year ended September 30, 2021 consist primarily of:

•
COVID employee payments of $22.0 million, primarily $10.1 million in Corrugated Packaging and $8.7 million in Consumer Packaging,
•
ransomware direct costs, net of insurance of $18.9 million, primarily $13.0 million in Corporate, and
•
accelerated compensation for our former CEO of $11.7 million in Corporate.

 

We allocate the assets and capital expenditures of our mill system across our reportable segments because the benefits of vertical integration are reflected in the reportable segment that ultimately sells the associated paper and packaging products to external customers. The following tables reflect such allocation (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Assets:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

12,514.8

 

 

$

11,382.5

 

 

$

11,557.6

 

Consumer Packaging

 

 

6,393.4

 

 

 

6,704.5

 

 

 

6,757.3

 

Global Paper

 

 

5,019.3

 

 

 

7,039.2

 

 

 

7,527.6

 

Distribution

 

 

797.8

 

 

 

863.0

 

 

 

800.1

 

Assets held for sale

 

 

91.5

 

 

 

34.4

 

 

 

10.9

 

Corporate

 

 

2,626.9

 

 

 

2,381.9

 

 

 

2,600.8

 

Total

 

$

27,443.7

 

 

$

28,405.5

 

 

$

29,254.3

 

 

 

 

 

 

 

 

 

 

 

Intangibles, net:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

544.4

 

 

$

648.4

 

 

$

765.9

 

Consumer Packaging

 

 

1,381.1

 

 

 

1,523.5

 

 

 

1,719.2

 

Global Paper

 

 

534.5

 

 

 

612.6

 

 

 

677.7

 

Distribution

 

 

116.2

 

 

 

136.1

 

 

 

156.0

 

Total

 

$

2,576.2

 

 

$

2,920.6

 

 

$

3,318.8

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

470.7

 

 

$

370.4

 

 

$

331.4

 

Consumer Packaging

 

 

293.7

 

 

 

202.1

 

 

 

192.7

 

Global Paper

 

 

282.4

 

 

 

238.6

 

 

 

259.4

 

Distribution

 

 

9.4

 

 

 

6.1

 

 

 

1.3

 

Corporate

 

 

85.9

 

 

 

45.4

 

 

 

30.7

 

Total

 

$

1,142.1

 

 

$

862.6

 

 

$

815.5

 

 

 

 

 

 

 

 

 

 

 

Equity method investments:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

44.5

 

 

$

479.3

 

 

$

434.4

 

Consumer Packaging

 

 

0.7

 

 

 

0.5

 

 

 

17.7

 

Global Paper

 

 

—

 

 

 

0.5

 

 

 

0.8

 

Corporate

 

 

0.1

 

 

 

0.1

 

 

 

0.4

 

Total

 

$

45.3

 

 

$

480.4

 

 

$

453.3

 

 

The decrease in equity method investments compared to September 30, 2022, was due to the Mexico Acquisition, the sale of an unconsolidated displays joint venture and the sale of our Seven Hills mill joint venture. See “Note 3. Acquisitions” and “Note 1. Description of Business and Summary of Significant Accounting Policies — Description of Business” for additional information. Equity method investments are included in the consolidated balance sheets in Other noncurrent assets. The prior investment in Grupo Gondi, in the Corrugated Packaging segment, exceeded our proportionate share of the underlying equity in net assets by approximately $101.8 million in fiscal 2022.

The changes in the carrying amount of goodwill for the fiscal years ended September 30, 2023, 2022 and 2021 are as follows (in millions):

 

 

 

Legacy Reportable Segments

 

 

New Reportable Segments

 

 

 

 

 

 

Corrugated
Packaging

 

 

Consumer
Packaging

 

 

Corrugated
Packaging

 

 

Consumer
Packaging

 

 

Global Paper

 

 

Distribution

 

 

Total

 

Balance as of Sep. 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

3,673.6

 

 

$

3,664.6

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

7,338.2

 

Accumulated impairment
  losses

 

 

(0.1

)

 

 

(1,375.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,376.0

)

 

 

$

3,673.5

 

 

$

2,288.7

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,962.2

 

Goodwill disposed of

 

 

(16.4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(16.4

)

Translation adjustments

 

 

6.2

 

 

 

7.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13.4

 

Balance as of Sep. 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

3,663.4

 

 

 

3,671.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,335.2

 

Accumulated impairment
  losses

 

 

(0.1

)

 

 

(1,375.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,376.0

)

 

 

 

3,663.3

 

 

 

2,295.9

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,959.2

 

Segment recasting (1)

 

 

(3,663.3

)

 

 

(2,295.9

)

 

 

2,834.8

 

 

 

1,603.3

 

 

 

1,382.0

 

 

 

139.1

 

 

 

—

 

Goodwill acquired

 

 

—

 

 

 

—

 

 

 

3.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.2

 

Translation adjustments

 

 

—

 

 

 

—

 

 

 

(35.2

)

 

 

(14.9

)

 

 

(15.5

)

 

 

(1.6

)

 

 

(67.2

)

Balance as of Sep. 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

—

 

 

 

—

 

 

 

2,802.8

 

 

 

1,588.4

 

 

 

1,366.5

 

 

 

137.5

 

 

 

5,895.2

 

Accumulated impairment
  losses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

2,802.8

 

 

 

1,588.4

 

 

 

1,366.5

 

 

 

137.5

 

 

 

5,895.2

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

(514.3

)

 

 

—

 

 

 

(1,378.7

)

 

 

—

 

 

 

(1,893.0

)

Goodwill acquired

 

 

—

 

 

 

—

 

 

 

237.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

237.4

 

Divestitures

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(43.0

)

 

 

(4.1

)

 

 

—

 

 

 

(47.1

)

Translation and other
  adjustments

 

 

—

 

 

 

—

 

 

 

77.8

 

 

 

(38.8

)

 

 

16.3

 

 

 

0.9

 

 

 

56.2

 

Balance as of Sep. 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

—

 

 

$

—

 

 

$

3,118.0

 

 

$

1,506.6

 

 

$

1,378.7

 

 

$

138.4

 

 

$

6,141.7

 

Accumulated impairment
  losses

 

 

—

 

 

 

—

 

 

 

(514.3

)

 

 

—

 

 

 

(1,378.7

)

 

 

—

 

 

 

(1,893.0

)

 

 

$

—

 

 

$

—

 

 

$

2,603.7

 

 

$

1,506.6

 

 

$

—

 

 

$

138.4

 

 

$

4,248.7

 

 

(1)
Represents the reallocation of goodwill as a result of our October 1, 2021 segment change.

 

Interim Goodwill Impairment Analysis

 

We review the carrying value of our goodwill annually as of the beginning of the fourth quarter of each fiscal year, or more often if events or changes in circumstances indicate that the carrying amount may exceed fair value. In the second quarter of fiscal 2023, due to the sustained decrease in our market capitalization and the further deterioration of macroeconomic conditions, including the impact of soft demand, pricing pressure and elevated inflation, which negatively affected our long-term forecasts in certain segments, we concluded that impairment indicators existed. As a result, we completed an interim quantitative goodwill impairment test in conjunction with our normal quarterly reporting process. Consistent with past practice, the estimated fair value of our reporting units was determined using a combination of the Income Approach and Market Approach. These fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors.

In fiscal 2023, we recorded a pre-tax, non-cash impairment charge of $1,893.0 million ($1,821.8 million after-tax) associated with our interim goodwill impairment analysis completed in the second quarter; $1,378.7 million in the Global Paper reportable segment and $514.3 million in the Corrugated Packaging reportable segment. Goodwill associated with the Global Paper reporting unit was written off in its entirety as of March 31, 2023.

 

Annual Goodwill Impairment Analysis

During the fourth quarter of fiscal 2023, we completed our annual goodwill impairment testing. All reporting units that have goodwill were noted to have a fair value that exceeded their carrying values. See “Note 1. Description

of Business and Summary of Significant Accounting Policies — Goodwill” for a discussion of our fiscal 2023 annual impairment test.
v3.23.3
Interest
 12 Months Ended
Sep. 30, 2023
Interest Income (Expense), Net [Abstract]  
Interest

Note 9. Interest

The components of interest expense, net is as follows (in millions):

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Interest expense

 

$

(535.1

)

 

$

(375.6

)

 

$

(418.9

)

Interest income

 

 

117.2

 

 

 

56.8

 

 

 

46.6

 

Interest expense, net

 

$

(417.9

)

 

$

(318.8

)

 

$

(372.3

)

Cash paid for interest, net of amounts capitalized, of $452.2 million, $363.9 million and $384.7 million were made during fiscal 2023, 2022 and 2021, respectively.

During fiscal 2023, 2022 and 2021, we capitalized interest of $27.2 million, $11.1 million and $14.0 million, respectively.
v3.23.3
Inventories
 12 Months Ended
Sep. 30, 2023
Inventory Disclosure [Abstract]  
Inventories

Note 10. Inventories

Inventories are as follows (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Finished goods and work in process

 

$

1,044.9

 

 

$

1,102.4

 

Raw materials

 

 

1,049.8

 

 

 

1,135.9

 

Supplies and spare parts

 

 

578.2

 

 

 

529.6

 

Inventories at FIFO cost

 

 

2,672.9

 

 

 

2,767.9

 

LIFO reserve

 

 

(341.4

)

 

 

(450.8

)

Net inventories

 

$

2,331.5

 

 

$

2,317.1

 

 

It is impracticable to segregate the LIFO reserve between raw materials, finished goods and work in process. In fiscal 2023, 2022 and 2021, we reduced inventory quantities in some of our LIFO pools. These reductions result in liquidations of LIFO inventory quantities generally carried at lower costs prevailing in prior years as compared with the cost of the purchases in the respective fiscal years, the effect of which typically decreases cost of goods sold. Alternatively, higher costs prevailing in prior years increase costs of goods sold. The impact of the liquidations in fiscal 2023, 2022 and 2021 was not significant.

 

In fiscal 2023, we experienced lower inventory costs primarily due to deflation in the last half of the year, the effect of which decreased cost of goods sold and our LIFO reserve by $104.4 million.

v3.23.3
Property, Plant and Equipment
 12 Months Ended
Sep. 30, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Note 11. Property, Plant and Equipment

Property, plant and equipment consists of the following (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Property, plant and equipment at cost:

 

 

 

 

 

 

Land and buildings

 

$

2,994.7

 

 

$

2,584.8

 

Machinery and equipment

 

 

17,682.4

 

 

 

15,906.1

 

Forestlands

 

 

105.2

 

 

 

94.5

 

Transportation equipment

 

 

27.3

 

 

 

24.2

 

Leasehold improvements

 

 

98.8

 

 

 

97.0

 

Construction in progress

 

 

967.8

 

 

 

755.6

 

 

 

 

21,876.2

 

 

 

19,462.2

 

Less: accumulated depreciation, depletion and amortization

 

 

(10,813.0

)

 

 

(9,380.8

)

Property, plant and equipment, net

 

$

11,063.2

 

 

$

10,081.4

 

 

Depreciation expense for fiscal 2023, 2022 and 2021 was $1,163.4 million, $1,108.1 million and $1,069.7 million, respectively. Accrued additions to property, plant and equipment at September 30, 2023, 2022 and 2021 were $165.2 million, $223.2 million and $108.5 million, respectively.
v3.23.3
Other Intangible Assets
 12 Months Ended
Sep. 30, 2023
Other Intangible Assets [Abstract]  
Other Intangible Assets

Note 12. Other Intangible Assets

The gross carrying amount and accumulated amortization relating to intangible assets, excluding goodwill, are as follows and reflect the removal of fully amortized intangible assets in the period fully amortized (in millions, except weighted avg. life):

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

2023

 

 

2022

 

 

 

Weighted
Avg. Life
(in years)

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

Customer relationships

 

 

15.7

 

 

$

4,885.2

 

 

$

(2,362.0

)

 

$

4,888.5

 

 

$

(2,038.1

)

Trademarks and tradenames

 

 

24.7

 

 

 

81.2

 

 

 

(41.0

)

 

 

80.7

 

 

 

(26.2

)

Technology and patents

 

 

12.1

 

 

 

25.1

 

 

 

(15.5

)

 

 

24.4

 

 

 

(12.9

)

License costs

 

 

15.8

 

 

 

0.3

 

 

 

(0.1

)

 

 

0.3

 

 

 

(0.1

)

Non-compete agreements

 

 

—

 

 

 

1.9

 

 

 

(1.9

)

 

 

1.9

 

 

 

(1.1

)

Other

 

 

28.0

 

 

 

3.3

 

 

 

(0.3

)

 

 

3.5

 

 

 

(0.3

)

Total

 

 

15.9

 

 

$

4,997.0

 

 

$

(2,420.8

)

 

$

4,999.3

 

 

$

(2,078.7

)

Estimated intangible asset amortization expense for the succeeding five fiscal years is as follows (in millions):

 

Fiscal 2024

 

$

324.2

 

Fiscal 2025

 

$

309.6

 

Fiscal 2026

 

$

302.9

 

Fiscal 2027

 

$

299.1

 

Fiscal 2028

 

$

297.1

 

 

Intangible amortization expense was $342.2 million, $351.1 million and $360.6 million during fiscal 2023, 2022 and 2021, respectively. We had additional amortization expense, primarily for packaging equipment leased to customers of $30.2 million, $29.4 million and $29.7 million during fiscal 2023, 2022 and 2021, respectively.
v3.23.3
Fair Value
 12 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value

Note 13. Fair Value

Assets and Liabilities Measured or Disclosed at Fair Value

We estimate fair values in accordance with ASC 820, “Fair Value Measurement”. We have not changed the valuation techniques for measuring the fair value of any financial assets or liabilities during the fiscal year. We disclose the fair value of our long-term debt in “Note 14. Debt” and the fair value of our pension and postretirement assets and liabilities in “Note 6. Retirement Plans”. We disclose the fair value of our derivative instruments in “Note 16. Derivatives” and our restricted assets and non-recourse liabilities held by SPEs in Note 17. Special Purpose Entities”. See “Note 1 — Description of Business and Summary of Significant Accounting Policies — Fair Value Measurements” for additional information.

Fiscal 2021 reflected a charge of $22.5 million associated with not exercising an option to purchase an additional equity interest in Grupo Gondi that was recorded in Other (expense) income, net.

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.

Nonrecurring Fair Value Measurements

As discussed in “Note 1. Description of Business and Summary of Significant Accounting Policies”, we measure certain assets and liabilities at fair value on a nonrecurring basis. In fiscal 2023, we recorded a pre-tax, non-cash impairment charge of $1,893.0 million associated with our interim goodwill impairment analysis completed in the second quarter. See “Note 8. Segment Information” for additional information. See “Note 5. Restructuring and Other Costs, Net” for impairments associated with restructuring activities labeled as “PP&E and related costs” including the impairment of our Tacoma, WA and North Charleston, SC containerboard mills in fiscal 2023. In fiscal 2022, we recorded impairments associated with the closure of our Panama City, FL mill and the permanent closure of the corrugated medium manufacturing operations at our St. Paul, MN mill. Fair value of the remaining land, building and improvements of these facilities was determined based on third-party appraisals. During fiscal 2023, 2022 and 2021, we did not have any significant non-goodwill or non-restructuring nonfinancial assets or nonfinancial liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition other than the $26.0 million pre-tax non-cash impairment of certain mineral rights in fiscal 2022 that was driven by a lack of new leasing or development activity on our properties for an extended period of time, including pipeline delays. With the impairment, we had no value assigned to our remaining mineral rights.

Accounts Receivable Monetization Agreements

On September 11, 2023, we terminated our existing $700.0 million accounts receivable monetization facility to sell to a third-party financial institution all of the short-term receivables generated from certain customer trade accounts. On the same date, we entered into a new replacement $700.0 million facility (the “Monetization Agreement”) with Coöperatieve Rabobank U.A., New York Branch, as purchaser, (“Rabo”) on substantially the same terms as the former agreement. The Monetization Agreement provides for, among other things, (i) an extension of the scheduled amortization termination date until September 13, 2024, and (ii) the ability to effectuate the Transaction without any additional consent from Rabo or the triggering of a notification event under the Monetization Agreement. The terms of the Monetization Agreement limit the balance of receivables sold to the amount available to fund such receivables sold, thereby eliminating the receivable for proceeds from the financial institution at any transfer date. Transfers under the Monetization Agreement meet the requirements to be accounted for as sales in accordance with guidance in ASC 860. We will pay a monthly yield on investment to Rabo at a rate equal to adjusted Term SOFR plus a margin on the outstanding amount of Rabo’s investment.

We also have a similar $110.0 million facility that was amended on December 2, 2021 to address the transition from LIBOR to SOFR. The facility was again amended on December 2, 2022 to extend the term through December

4, 2023 and to include certain fee and other general revisions. The facility purchase limit was unchanged and the facility remains committed.

The customers from these facilities are not included in the Receivables Securitization Facility that is discussed in “Note 14. Debt”.

The following table represents a summary of these accounts receivable monetization agreements for fiscal 2023 and 2022 (in millions):

 

 

 

2023

 

 

2022

 

Receivable from financial institutions at beginning of fiscal year

 

$

—

 

 

$

—

 

Receivables sold to the financial institutions and derecognized

 

 

(2,795.3

)

 

 

(2,954.8

)

Receivables collected by financial institutions

 

 

2,827.8

 

 

 

2,896.0

 

Cash (payments to) proceeds from financial institutions

 

 

(32.5

)

 

 

58.8

 

Receivable from financial institutions at September 30,

 

$

—

 

 

$

—

 

 

Receivables sold under these accounts receivable monetization agreements as of the respective balance sheet dates were approximately $692.2 million and $724.7 million as of September 30, 2023 and September 30, 2022, respectively.

Cash proceeds related to the receivables sold are included in Net cash provided by operating activities in the consolidated statements of cash flow in the accounts receivable line item. While the expense recorded in connection with the sale of receivables may vary based on current rates and levels of receivables sold, the expense recorded in connection with the sale of receivables was $48.3 million, $20.4 million and $11.1 million in fiscal 2023, 2022 and 2021, respectively, and is recorded in Other (expense) income, net in the consolidated statements of operations. 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 credit quality of the customers underlying the receivables and the anticipated short collection period.
v3.23.3
Debt
 12 Months Ended
Sep. 30, 2023
Debt [Abstract]  
Debt

Note 14. Debt

Our outstanding indebtedness consists primarily of public bonds and borrowings under credit facilities. The public bonds issued by WRKCo and MWV are guaranteed by WestRock and certain WestRock subsidiaries. The public bonds are unsecured, unsubordinated obligations that rank equally in right of payment with all of our existing and future unsecured, unsubordinated obligations. The bonds are effectively subordinated to any of our existing and future secured debt to the extent of the value of the assets securing such debt and to the obligations of our non-debtor/guarantor subsidiaries. The industrial development bonds associated with the finance lease obligations of MWV are guaranteed by the Company and certain of its subsidiaries. At September 30, 2023, all of our debt was unsecured with the exception of our Receivables Securitization Facility (as defined below) and finance lease obligations.

 

The following were individual components of debt (in millions, except percentages):

 

 

 

September 30, 2023

 

 

September 30, 2022

 

 

 

Carrying
Value

 

 

Weighted Avg
Interest Rate

 

 

Carrying
Value

 

 

Weighted Avg
Interest Rate

 

Public bonds due fiscal 2024 to 2028

 

$

2,938.6

 

 

 

4.1

%

 

$

3,433.4

 

 

 

4.0

%

Public bonds due fiscal 2029 to 2033

 

 

2,739.5

 

 

 

4.5

%

 

 

2,753.3

 

 

 

4.5

%

Public bonds due fiscal 2037 to 2047

 

 

177.3

 

 

 

6.2

%

 

 

177.8

 

 

 

6.2

%

Revolving credit and swing facilities

 

 

32.0

 

 

 

6.7

%

 

 

286.3

 

 

 

1.9

%

Term loan facilities

 

 

1,347.4

 

 

 

5.0

%

 

 

598.2

 

 

 

3.1

%

Receivables securitization

 

 

425.0

 

 

 

6.4

%

 

 

—

 

 

N/A

 

Commercial paper

 

 

283.9

 

 

 

5.6

%

 

 

—

 

 

N/A

 

International and other debt

 

 

61.9

 

 

 

9.6

%

 

 

127.6

 

 

 

12.8

%

Finance lease obligations

 

 

472.6

 

 

 

5.1

%

 

 

287.5

 

 

 

4.2

%

Vendor financing and commercial card
   programs

 

 

105.7

 

 

N/A

 

 

 

123.1

 

 

N/A

 

Total debt

 

 

8,583.9

 

 

 

4.6

%

 

 

7,787.2

 

 

 

4.2

%

Less: current portion of debt

 

 

533.0

 

 

 

 

 

 

212.2

 

 

 

 

Long-term debt due after one year

 

$

8,050.9

 

 

 

 

 

$

7,575.0

 

 

 

 

A portion of the debt classified as long-term may be paid down earlier than scheduled at our discretion without penalty. Our credit facilities contain certain restrictive covenants, including a covenant to satisfy a debt to capitalization ratio. We test and report our compliance with these covenants as required by these facilities and were in compliance with them at September 30, 2023. The carrying value of our debt includes the fair value step-up of debt acquired in mergers and acquisitions, and the weighted average interest rate includes the fair value step up. At September 30, 2023, excluding the step-up, the weighted average interest rate on total debt was 5.2%. At September 30, 2023, the unamortized fair market value step-up was $157.0 million, which will be amortized over a weighted average remaining life of 9.1 years. At September 30, 2023, we had $77.6 million of outstanding letters of credit not drawn upon. At September 30, 2023, we had approximately $3.4 billion of available liquidity under long-term committed credit facilities and cash and cash equivalents. This liquidity may be used to provide for ongoing working capital needs and for other general corporate purposes including acquisitions and dividends.

The estimated fair value of our debt was approximately $8.1 billion and $7.3 billion as of September 30, 2023 and September 30, 2022, respectively. The fair value of our long-term debt is categorized as level 2 within the fair value hierarchy and is primarily either based on quoted prices for those or similar instruments, or approximate their carrying amount, as the variable interest rates reprice frequently at observable current market rates.

During fiscal 2023, 2022 and 2021, amortization of debt issuance costs charged to interest expense were $7.1 million, $7.3 million and $8.3 million, respectively.

Public Bonds

 

On September 26, 2023, following completion of consent solicitations, we entered into supplemental indentures governing our outstanding: (i) $600 million aggregate principal amount of 3.750% senior notes due March 2025; (ii) $750 million aggregate principal amount of 4.650% senior notes due March 2026; (iii) $500 million aggregate principal amount of 3.375% senior notes due September 2027; (iv) $600 million aggregate principal amount of 4.000% senior notes due March 2028 and (v) $750 million aggregate principal amount of 4.900% senior notes due March 2029 to, among other things, amend the definition of “Change of Control” to add an exception for the proposed Transaction.

On September 22, 2023, we discharged $500 million aggregate principal amount of our 3.00% senior notes due September 2024 using cash and cash equivalents and borrowings under our commercial paper program and recorded a $10.5 million gain on extinguishment of debt.

On March 22, 2022, we redeemed $350 million aggregate principal amount of our 4.00% senior notes due March 2023 primarily using borrowings under our Receivables Securitization Facility (as hereinafter defined) and recorded an $8.2 million loss on extinguishment of debt.

On September 10, 2021, we redeemed $400 million aggregate principal amount of our 4.90% senior notes due March 2022 using cash and cash equivalents and recorded a $8.6 million loss on extinguishment of debt.

At September 30, 2023 and September 30, 2022, the face value of our public bond obligations outstanding was $5.7 billion and $6.2 billion, respectively.

Revolving Credit Facilities

Revolving Credit Facility

On July 7, 2022, we entered into a credit agreement (the "Revolving Credit Agreement") that included a five-year senior unsecured revolving credit facility in an aggregate amount of $2.3 billion, consisting of a $1.8 billion U.S. revolving facility and a $500 million multicurrency revolving facility (collectively, the “Revolving Credit Facility”) with Wells Fargo Bank, National Association, as administrative agent and multicurrency agent. The Revolving Credit Facility is guaranteed by WestRock Company and certain of its subsidiaries as set forth in the Revolving Credit Agreement. We amended the Revolving Credit Agreement on September 27, 2023, to provide that the proposed Transaction would not constitute a “Change in Control” thereunder. At September 30, 2023 and 2022, we had no amounts outstanding under the facility, respectively.

Loans under the Revolving Credit Facility may be drawn in U.S. dollars, Canadian dollars, Euro and Pounds Sterling. At our option, loans under the Revolving Credit Facility will bear interest at (a) in the case of loans denominated in U.S. dollars, either Term SOFR or an alternate base rate, (b) in the case of loans denominated in Canadian dollars, one of CDOR, the U.S. Base Rate or the Canadian Prime Rate, (c) in the case of loans denominated in Euro, EURIBOR and (d) in the case of loans denominated in Pounds Sterling, SONIA, in each case plus an applicable interest rate margin that will fluctuate between 0.875% per annum and 1.500% per annum (for Term SOFR loans, CDOR loans, EURIBOR loans and SONIA loans) or between 0.000% per annum and 0.500% per annum (for alternate base rate loans, U.S. Base Rate loans and Canadian Prime Rate loans), based upon the Company’s corporate credit ratings or the Leverage Ratio (as each of these terms is defined in the Revolving Credit Agreement) whichever yields a lower applicable interest rate margin at such time. Term SOFR loans will be subject to a credit spread adjustment equal to 0.100% per annum. In addition, unused revolving commitments under the Revolving Credit Facility will accrue a commitment fee that will fluctuate between 0.080% per annum and 0.225% per annum, based upon the Company’s corporate credit ratings or the Leverage Ratio (whichever yields a lower applicable commitment fee rate) at such time.

European Revolving Credit Facilities

On July 7, 2022, we entered into a credit agreement (the "European Revolving Credit Agreement") with Rabo, as administrative agent. The European Revolving Credit Agreement provides for a three-year senior unsecured revolving credit facility in an aggregate amount of €700.0 million and includes an incremental €100.0 million accordion feature (the “European Revolving Credit Facility”). The European Revolving Credit Facility is guaranteed by WestRock Company and certain of its subsidiaries as set forth in the European Revolving Credit Agreement. We amended the European Revolving Credit Agreement on September 27, 2023, to provide that the proposed Transaction would not constitute a “Change in Control” thereunder. At September 30, 2023 we had no amounts outstanding under the facility. At September 30, 2022, we had borrowed $265.0 million under the facility.

Loans under the European Revolving Credit Facility may be drawn in U.S. dollars, Euro and Pounds Sterling. At our option, loans under the European Revolving Credit Facility will bear interest at (a) in the case of loans denominated in U.S. dollars, either Term SOFR or an alternate base rate, (b) in the case of loans denominated in Euro, EURIBOR and (c) in the case of loans denominated in Pounds Sterling, SONIA, in each case plus an applicable interest rate margin that will fluctuate between 0.875% per annum and 1.625% per annum (for Term SOFR loans, EURIBOR loans and SONIA loans) or between 0.000% per annum and 0.625% per annum (for alternate base rate loans), based upon the Company’s corporate credit ratings at such time. Term SOFR loans will

be subject to a credit spread adjustment equal to 0.100% per annum. In addition, unused revolving commitments under the European Revolving Credit Facility will accrue a commitment fee that will fluctuate between 0.100% per annum and 0.275% per annum, based upon the Company’s corporate credit ratings at such time. Loans under the European Revolving Credit Facility may be prepaid at any time without premium.

Term Loan Facilities

Farm Loan Credit Facilities

On July 7, 2022, we amended and restated the prior credit agreement (the “Farm Credit Facility Agreement”) with CoBank, ACB, as administrative agent. The Farm Credit Facility Agreement provides for a seven-year senior unsecured term loan facility in an aggregate principal amount of $600 million (the “Farm Credit Facility”). At any time, we have the ability to request an increase in the principal amount by up to $400 million by written notice. The Farm Credit Facility is guaranteed by WestRock Company and certain of its subsidiaries as set forth in the Farm Credit Facility Agreement. We amended the Farm Credit Facility Agreement on September 27, 2023, to provide that the proposed Transaction would not constitute a “Change in Control” thereunder. The carrying value of this facility at September 30, 2023 and 2022 was $598.4 million and $598.2 million, respectively.

At our option, loans issued under the Farm Credit Facility will bear interest at either Term SOFR or an alternate base rate, in each case plus an applicable interest rate margin that will fluctuate between 1.650% per annum and 2.275% per annum (for Term SOFR loans) or between 0.650% per annum and 1.275% per annum (for alternate base rate loans), based upon the Company’s corporate credit ratings or the Leverage Ratio (as each of these terms is defined in the Farm Credit Facility Agreement) whichever yields a lower applicable interest rate margin at such time. In addition, Term SOFR loans will be subject to a credit spread adjustment equal to 0.100% per annum.

Delayed Draw Term Facility

On August 18, 2022, we amended the Revolving Credit Agreement (the "Amended Credit Agreement") to add a three-year unsecured delayed draw term loan facility with an aggregate principal amount of up to $1.0 billion (the "Delayed Draw Term Facility") that could be borrowed in a single draw through May 31, 2023. On November 28, 2022, in connection with the Mexico Acquisition, we drew upon the facility in full. The Delayed Draw Term Facility is guaranteed by WestRock Company and certain of its subsidiaries as set forth in the Amended Credit Agreement. We have the option to extend the maturity date by one year with full lender consent. The one-year maturity extension would cost a fee of 20 basis points. We amended the Amended Credit Agreement on September 27, 2023, to provide that the proposed Transaction would not constitute a “Change in Control” thereunder. At September 30, 2023, the carrying value of this facility was $749.0 million.

At our option, a loan under the Delayed Draw Term Facility will bear interest at either Term SOFR or an alternate base rate, in each case plus an applicable interest rate margin that will fluctuate between 0.875% per annum and 1.500% per annum for a Term SOFR loan or between 0.000% per annum and 0.500% per annum for an alternate base rate loan based upon the Company’s corporate credit ratings or the Leverage Ratio (as defined in the Amended Credit Agreement), whichever yields a lower applicable interest rate margin, at such time. A Term SOFR loan will be subject to a credit spread adjustment equal to 0.100% per annum. Any loan under the Delayed Draw Term Facility may be prepaid at any time without premium, and it may not be reborrowed.

Receivables Securitization Facility

 

On February 28, 2023, we amended our existing $700.0 million receivables securitization agreement (the “Receivables Securitization Facility”), primarily to extend the maturity to February 27, 2026, and to complete the transition from LIBOR to Term SOFR. Term SOFR loans are subject to a credit spread adjustment equal to 0.10% per annum. The commitment fee was 0.25% and 0.35% as of September 30, 2023 and September 30, 2022, respectively. At September 30, 2023 and September 30, 2022, maximum available borrowings, excluding amounts outstanding under the Receivables Securitization Facility, were $700.0 million and $700.0 million, respectively. The carrying amount of accounts receivable collateralizing the maximum available borrowings at September 30, 2023 and September 30, 2022 were approximately $1,177.6 million and $1,390.5 million, respectively. We have continuing involvement with the underlying receivables as we provide credit and collections services pursuant to

the Receivables Securitization Facility. We amended the Receivables Securitization Facility on September 29, 2023, to provide that the proposed Transaction would not be deemed to constitute a “Change in Control” thereunder. At September 30, 2023 we had borrowed $425.0 million under this facility. At September 30, 2022 there were no amounts outstanding under this facility.

Borrowing availability under this facility is based on the eligible underlying accounts receivable and compliance with certain covenants. The agreement governing the Receivables Securitization Facility contains restrictions, including, among others, on the creation of certain liens on the underlying collateral. We test and report our compliance with these covenants monthly; we were in compliance with these covenants at September 30, 2023. The Receivables Securitization Facility includes certain restrictions on receivables eligibility under the facility and allows for the exclusion of eligible receivables of specific obligors each calendar year subject to the following restrictions: (i) the aggregate of excluded receivables may not exceed 7.5% of eligible receivables under the Receivables Securitization Facility and (ii) the excluded receivables of each obligor may not exceed 2.5% of the aggregate outstanding balance.

Commercial Paper Program

On December 7, 2018, we established an unsecured commercial paper program with WRKCo as the issuer. Under the program, 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 program has no expiration date and can be terminated by either the agent or us with not less than 30 days’ notice. Our Revolving Credit Facility is (and, prior to July 7, 2022, the prior revolving credit facility was) intended to backstop the commercial paper program. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. At September 30, 2023 there was $283.9 million outstanding. At September 30, 2022, there were no amounts outstanding.

International and Other Debt

Brazil Export Credit Note

On January 18, 2021, we entered into a credit agreement to provide for R$500.0 million of a senior unsecured term loan of WestRock Celulose, Papel E Embalagens Ltda. (a subsidiary of the Company), as borrower, and the Company, as guarantor. The agreement provides for the outstanding amount of the principal to be repaid in equal, semiannual installments beginning on January 19, 2023 until the facility matures on January 19, 2026. The proceeds borrowed are to be used to support the production of goods or acquisition of inputs that are essential or ancillary to export activities. Loans issued under the facility will bear interest at a floating rate based on Brazil’s Certificate of Interbank Deposit rate plus a spread of 2.50%. At September 30, 2023 and 2022, there was R$147.1 million ($29.4 million) outstanding and R$500.0 million ($92.7 million) outstanding, respectively.

Brazil Delayed Draw Credit Facilities

On April 10, 2019, we entered into a credit agreement to provide for R$750.0 million of senior unsecured term loans with an incremental R$250.0 million accordion feature to be repaid in equal, semiannual installments beginning on April 10, 2021 until maturity on April 10, 2024 (the “Brazil Delayed Draw Credit Facilities”). The proceeds of the Brazil Delayed Draw Credit Facilities were used to support the production of goods or acquisition of inputs essential or ancillary to export activities. On September 16, 2022, we repaid the facility in full, which resulted in termination of the facility. The Brazil Delayed Draw Credit Facilities were senior unsecured obligations of Rigesa Celulose, Papel E Embalagens Ltda. (a subsidiary of the Company), as borrower, and the Company, as guarantor. Loans issued under the Brazil Delayed Draw Credit Facilities bore interest at a floating rate based on Brazil’s Certificate of Interbank Deposit rate plus a spread of 1.50%.

Aggregate Maturities of Debt

As of September 30, 2023, the aggregate maturities of debt, excluding finance lease obligations, for the succeeding five fiscal years and thereafter are as follows (in millions):

 

Fiscal 2024

 

$

469.7

 

Fiscal 2025

 

 

1,353.3

 

Fiscal 2026

 

 

1,178.1

 

Fiscal 2027

 

 

506.0

 

Fiscal 2028

 

 

1,100.9

 

Thereafter

 

 

3,379.7

 

Fair value of debt step-up, deferred financing costs and unamortized
   bond discounts

 

 

123.6

 

Total

 

$

8,111.3

 

 

See “Note 15. Leases” of the Notes to Consolidated Financial Statements for the aggregate maturities of finance lease obligations for the succeeding five fiscal years and thereafter.

v3.23.3
Leases
 12 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases

Note 15. Leases

Components of Lease Costs

The following table presents certain information related to the lease costs for finance and operating leases (in millions):

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Operating lease costs

 

$

236.3

 

 

$

218.1

 

 

$

211.0

 

Variable and short-term lease costs

 

 

145.9

 

 

 

122.8

 

 

 

104.6

 

Sublease income

 

 

(5.6

)

 

 

(6.1

)

 

 

(8.9

)

Finance lease cost:

 

 

 

 

 

 

 

 

 

Amortization of lease assets

 

 

16.1

 

 

 

15.1

 

 

 

9.6

 

Interest on lease liabilities

 

 

31.7

 

 

 

7.9

 

 

 

7.2

 

Total lease cost, net

 

$

424.4

 

 

$

357.8

 

 

$

323.5

 

 

Supplemental Balance Sheet Information Related to Leases

 

The table below presents the lease-related assets and liabilities recorded on the balance sheet (in millions):

 

 

 

 

 

September 30,

 

 

 

Consolidated Balance Sheet Caption

 

2023

 

 

2022

 

Operating leases:

 

 

 

 

 

 

 

 

Operating lease right-of-use asset

 

Other noncurrent assets

 

$

648.5

 

 

$

699.6

 

 

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

Other current liabilities

 

$

202.4

 

 

$

191.9

 

Noncurrent operating lease liabilities

 

Other noncurrent liabilities

 

 

499.7

 

 

 

551.1

 

Total operating lease liabilities

 

 

 

$

702.1

 

 

$

743.0

 

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

$

400.6

 

 

$

177.4

 

Accumulated depreciation

 

 

 

 

(105.3

)

 

 

(37.3

)

Property, plant and equipment, net

 

 

 

$

295.3

 

 

$

140.1

 

 

 

 

 

 

 

 

 

 

Current finance lease liabilities

 

Current portion of debt

 

$

62.9

 

 

$

14.5

 

Noncurrent finance lease liabilities

 

Long-term debt due after one year

 

 

409.7

 

 

 

273.0

 

Total finance lease liabilities

 

 

 

$

472.6

 

 

$

287.5

 

 

 

Our finance lease portfolio includes certain assets that are either fully depreciated or transferred for which the lease arrangement requires a one-time principal repayment on the maturity date of the lease obligation.

 

Lease Term and Discount Rate

 

 

September 30,

 

 

 

2023

 

 

2022

 

Weighted average remaining lease term:

 

 

 

 

 

 

Operating leases

 

4.5 years

 

 

5.0 years

 

Finance leases

 

9.3 years

 

 

7.3 years

 

 

 

 

 

 

 

 

Weighted average discount rate:

 

 

 

 

 

 

Operating leases

 

 

3.4

%

 

 

2.7

%

Finance leases

 

 

5.1

%

 

 

4.2

%

 

Supplemental Cash Flow Information Related to Leases

 

The table below presents supplemental cash flow information related to leases (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flows related to operating leases

 

$

235.2

 

 

$

214.8

 

Operating cash flows related to finance leases

 

$

16.0

 

 

$

8.8

 

Financing cash flows related to finance leases

 

$

31.6

 

 

$

14.8

 

 

 

 

 

 

 

 

ROU assets obtained in exchange for lease liabilities:

 

 

 

 

 

 

Operating leases

 

$

156.3

 

 

$

184.6

 

Finance leases

 

$

50.1

 

 

$

27.8

 

 

Maturity of Lease Liabilities

 

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet (in millions):

 

 

 

September 30, 2023

 

 

 

Operating Leases

 

 

Finance Leases

 

 

Total

 

Fiscal 2024

 

$

223.1

 

 

$

97.4

 

 

$

320.5

 

Fiscal 2025

 

 

173.6

 

 

 

39.3

 

 

 

212.9

 

Fiscal 2026

 

 

136.8

 

 

 

37.5

 

 

 

174.3

 

Fiscal 2027

 

 

100.4

 

 

 

34.3

 

 

 

134.7

 

Fiscal 2028

 

 

59.0

 

 

 

112.5

 

 

 

171.5

 

Thereafter

 

 

66.8

 

 

 

352.6

 

 

 

419.4

 

Total lease payments

 

 

759.7

 

 

 

673.6

 

 

 

1,433.3

 

Less: Interest (1)

 

 

(57.6

)

 

 

(201.0

)

 

 

(258.6

)

Present value of future lease payments

 

$

702.1

 

 

$

472.6

 

 

$

1,174.7

 

 

(1)
Calculated using the interest rate for each lease.
v3.23.3
Derivatives
 12 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives

Note 16. Derivatives

 

We are exposed to risks from changes in, among other things, commodity price risk, foreign currency exchange risk and interest rate risk. To manage these risks, from time to time and to varying degrees, we may enter into a

variety of financial derivative transactions and certain physical commodity transactions that are determined to be derivatives.

We have designated certain natural gas commodity contracts as cash flow hedges for accounting purposes. Therefore, the entire change in fair value of the financial derivative instrument is reported as a component of other comprehensive loss and reclassified into earnings in the same line item associated with the forecasted transaction, and in the same period or periods during which the forecasted transaction affects earnings. Fair value measurements for our natural gas commodity derivatives are classified under level 2 because such measurements are estimated based on observable inputs such as commodity future prices. Approximately three-fourths of our natural gas purchases for our U.S. and Canadian mill operations are tied to NYMEX. Our natural gas hedging positions are entered in layers over multiple months and up to 12 months in advance to achieve a targeted hedging volume of up to 80% of our anticipated NYMEX-based natural gas purchases. However, we may modify our strategy based on, among other things, our assessment of market conditions.

For financial derivative instruments that are not designated as accounting hedges, the entire change in fair value of the financial instrument is reported immediately in current period earnings.

The following table sets forth the outstanding notional amounts related to our derivative instruments (in millions):

 

 

 

 

 

September 30,

 

 

 

Metric

 

2023

 

 

2022

 

Designated cash flow hedges:

 

Natural gas commodity contracts

 

MMBtu

 

 

22.0

 

 

 

18.3

 

 

 

 

 

 

 

 

 

 

Undesignated derivatives:

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

 

Mexican pesos

 

 

—

 

 

 

8,000.0

 

 

(1)
At September 30, 2022, the outstanding foreign currency exchange contract was related to the purchase of 8.0 billion Mexican pesos ($389.9 million) for refinancing the external debt acquired in the Mexico Acquisition on December 1, 2022.

 

The following table sets forth the location and fair values of our derivative instruments (in millions):

 

 

 

 

 

September 30,

 

 

 

Consolidated Balance
 Sheet Caption

 

2023

 

 

2022

 

Designated cash flow hedges:

 

Natural gas commodity contracts

 

Other current liabilities (1)

 

$

6.3

 

 

$

12.0

 

 

 

 

 

 

 

 

 

 

Undesignated derivatives:

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

$

—

 

 

$

3.4

 

 

(1)
At September 30, 2023 and September 30, 2022, liability positions by counterparty were partially offset by $0.2 million and $2.3 million, respectively, of asset positions where we had an enforceable right of netting.

 

The following table sets forth gains (losses) recognized in accumulated other comprehensive loss, net of tax for cash flow hedges (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Natural gas commodity contracts

 

$

4.2

 

 

$

(8.9

)

 

$

—

 

Interest rate swap contracts

 

$

—

 

 

$

—

 

 

$

5.4

 

 

The following table sets forth amounts of gains (losses) recognized in the consolidated statements of operations for cash flow hedges reclassified from accumulated other comprehensive loss (in millions):

 

 

 

 

 

Years Ended September 30,

 

 

 

Consolidated Statement
 of Operations Caption

 

2023

 

 

2022

 

 

2021

 

Natural gas commodity contracts

 

Cost of goods sold

 

$

(72.6

)

 

$

(1.8

)

 

$

—

 

Interest rate swap contracts

 

Interest expense, net

 

$

—

 

 

$

—

 

 

$

(7.4

)

 

The following table sets forth amounts of gains (losses) recognized in the consolidated statements of operations for derivatives not designated as hedges (in millions):

 

 

 

 

 

Years Ended September 30,

 

 

 

Consolidated Statement
 of Operations Caption

 

2023

 

 

2022

 

 

2021

 

Foreign currency contracts

 

Other income (expense), net

 

$

19.7

 

 

$

—

 

 

$

—

 
v3.23.3
Special Purpose Entities
 12 Months Ended
Sep. 30, 2023
Special Purpose Entities [Abstract]  
Special Purpose Entities

Note 17. Special Purpose Entities

Pursuant to a sale of certain large-tract forestlands in 2007, a special purpose entity MeadWestvaco Timber Notes Holding, LLC (“MWV TN”) received, and WestRock assumed upon the strategic combination of Rock-Tenn Company and MeadWestvaco Corporation’s respective businesses (the “Combination”), an installment note receivable in the amount of $398.0 million (“Timber Note I”). Timber Note I does not require any principal payments until its maturity in October 2027 and bore interest at a rate approximating LIBOR prior to its amendment and transition to Term SOFR in June 2023. In addition, Timber Note I is supported by a bank-issued irrevocable letter of credit obtained by the buyer of the forestlands. Timber Note I is not subject to prepayment in whole or in part prior to maturity. The bank’s credit rating as of October 2023 was investment grade.

Using Timber Note I as collateral, MWV TN received $338.3 million in proceeds under a secured financing agreement with a bank. Under the terms of the agreement, the liability from this transaction is non-recourse to the Company and is payable from Timber Note I proceeds upon its maturity in October 2027. As a result, Timber Note I is not available to satisfy any obligations of WestRock. MWV TN can elect to prepay at any time the liability in whole or in part, however, given that Timber Note I is not prepayable, MWV TN expects to repay the liability at maturity from Timber Note I proceeds. Timber Note I and the secured financing liability were fair valued on the opening balance sheet in connection with the Combination.

Pursuant to the sale of MeadWestvaco Corporation’s remaining U.S. forestlands, which occurred on December 6, 2013, another special purpose entity MeadWestvaco Timber Notes Holding Company II, LLC (“MWV TN II”) received, and WestRock assumed upon the Combination, an installment note receivable in the amount of $860.0 million (“Timber Note II” and together with Timber Note I, the “Timber Notes”). Timber Note II does not require any principal payments until its maturity in December 2023 and bears interest at a fixed rate of 5.207%. As of September 30, 2023, no event had occurred that would allow for the prepayment of Timber Note II. Timber Note II became prepayable at the borrower’s discretion on October 1, 2023. We expect it to be repaid at or close to maturity. We monitor the credit quality of the borrower and receive quarterly compliance certificates. The borrower’s credit rating as of October 2023 was investment grade.

Using Timber Note II as collateral, MWV TN II received $774.0 million in proceeds under a secured financing agreement with a bank (together with the borrowing collateralized by Timber Note I, the “Timber Loans”). Under the terms of the agreement, the liability from this transaction is non-recourse to WestRock and is payable from Timber Note II proceeds upon its maturity in December 2023. As a result, Timber Note II is not available to satisfy any obligations of WestRock. MWV TN II can elect to prepay, at any time, the liability in whole or in part, with sufficient notice, but would avail itself of this provision only in the event Timber Note II was prepaid in whole or in part. The secured financing agreement, however, requires a mandatory repayment, up to the amount of cash received, if Timber Note II is prepaid in whole or in part. Timber Note II and the secured financing liability were fair valued on the opening balance sheet in connection with the Combination.

The restricted assets and non-recourse liabilities held by SPEs, which we consolidate as variable interest entities, are included in the consolidated balance sheets in the following (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Other current assets

 

$

862.1

 

 

$

—

 

Other noncurrent assets

 

$

382.7

 

 

$

1,253.0

 

 

 

 

 

 

 

 

Other current liabilities

 

$

776.7

 

 

$

—

 

Other noncurrent liabilities

 

$

330.2

 

 

$

1,117.8

 

 

 

The decrease in Other noncurrent assets and Other noncurrent liabilities subsequent to September 30, 2022 reflects one of the Timber Notes becoming current in December 2022.

As of September 30, 2023 and September 30, 2022, the aggregate fair value of the Timber Notes was $1,257.2 million and $1,278.3 million, respectively. As of September 30, 2023 and September 30, 2022, the fair value of the Non-recourse Liabilities was $1,112.4 million and $1,132.3 million, respectively. Fair values of the Timber Notes and Non-recourse Liabilities are classified as level 2 within the fair value hierarchy.

 

The restricted assets and non-recourse liabilities have the following activity (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Interest income on Timber Notes (1)

 

$

56.0

 

 

$

41.1

 

 

$

38.7

 

Interest expense on Timber Loans (1)

 

$

50.0

 

 

$

37.2

 

 

$

35.2

 

Cash receipts on Timber Notes (2)

 

$

61.4

 

 

$

46.5

 

 

$

45.9

 

Cash payments on Timber Loans (2)

 

$

57.6

 

 

$

44.9

 

 

$

44.7

 

 

(1)
Presented in Interest expense, net on the accompanying Consolidated Statements of Operations.
(2)
Included as part of operating cash flows on the accompanying Consolidated Statements of Cash Flows.
v3.23.3
Related Party Transactions
 12 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
Related Party Transactions

We sell products to affiliated companies. Net sales to the affiliated companies for the fiscal years ended September 30, 2023, 2022 and 2021 were approximately $139.6 million, $238.5 million and $237.7 million, respectively. Accounts receivable due from affiliated companies at September 30, 2023 and 2022 were $23.0 million and $27.2 million, respectively, and were included in Accounts receivable on our consolidated balance sheets. The decline in net sales to affiliated companies in fiscal 2023 was primarily due to the Mexico Acquisition and the sale of an unconsolidated displays joint venture.
v3.23.3
Commitments and Contingencies
 12 Months Ended
Sep. 30, 2023
Commitments And Contingencies [Abstract]  
Commitments and Contingencies

Note 19. Commitments and Contingencies

Capital Additions

Estimated costs for future purchases of fixed assets that we are obligated to purchase as of September 30, 2023 total approximately $353 million.

Environmental

Environmental compliance requirements are a significant factor affecting our business. Our manufacturing processes involve the use of natural resources, such as virgin wood fiber and fresh water, discharges to water, air emissions and waste handling and disposal activities. These processes are subject to numerous federal, state, local and international environmental laws and regulations, as well as the requirements of environmental permits and similar authorizations issued by various governmental authorities. Complex and lengthy processes may be required to obtain and renew approvals, permits, and licenses for new, existing or modified facilities. Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency

response procedures. Our integrated chemical pulping mills in the U.S. and Brazil are subject to numerous and more complex environmental programs and regulations, but all of WestRock’s manufacturing facilities have environmental compliance obligations. We have incurred, and expect that we will continue to incur, significant capital, operating and other expenditures complying with applicable environmental laws and regulations including, for example, projects to replace and/or upgrade our air pollution control devices, wastewater treatment systems, and other environmental infrastructure. Changes in these laws, as well as litigation relating to these laws, could result in more stringent or additional environmental compliance obligations for the Company that may require additional capital investments or increase our operating costs.

We are involved in various administrative and other proceedings relating to environmental matters that arise in the normal course of business, and we may become involved in similar matters in the future. Although the ultimate outcome of these proceedings cannot be predicted and we cannot at this time estimate any reasonably possible losses based on available information, we do not believe that the currently expected outcome of any environmental proceedings and claims that are pending or threatened against us will have a material adverse effect on our results of operations, financial condition or cash flows.

Environmental regulations in the U.S. and Canada will require our power boilers at certain WestRock mills to meet more stringent nitrogen oxide (“NOx”) emission standards beginning in 2026. In the U.S., the EPA recently finalized a regulation, known as the “Good Neighbor” Plan, that is intended to reduce ozone-forming emissions of nitrogen oxides from industrial facilities in 20 states during the ozone season (May through September). In Canada, the government is implementing the Multi-Sector Air Pollutants Regulation, which establishes tighter NOx limits for boilers and heaters in several industries, including pulp and paper. Our preliminary analysis indicates that to meet these new requirements, we need to reduce NOx emissions from nine power boilers at four mills in the U.S. and one in Canada. Our environmental and engineering teams are working on strategies for meeting these new limits. Based on our initial assessment, we do not believe the costs of compliance will be material; however, litigation has been filed in several jurisdictions challenging the “Good Neighbor” Plan, and it is currently unclear how these ongoing legal proceedings may impact future obligations under this regulatory program.

We face potential liability under federal, state, local and international laws as a result of releases, or threatened releases, of hazardous substances into the environment from various sites owned and operated by third parties at which Company-generated wastes have allegedly been deposited. Generators of hazardous substances sent to off-site disposal locations at which environmental contamination exists, as well as the owners of those sites and certain other classes of persons, are liable for response costs for the investigation and remediation of such sites under Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (“CERCLA”) and analogous laws. While joint and several liability is authorized under CERCLA, liability is typically shared with other potentially responsible or liable parties and costs are commonly allocated according to relative amounts of waste deposited and other factors.

In addition, certain of our current or former locations are being investigated or remediated under various environmental laws, including CERCLA. Based on information known to us and assumptions, we do not believe that the costs of these investigation and remediation projects will have a material adverse effect on our results of operations, financial condition or cash flows. However, the discovery of contamination or the imposition of additional obligations, including natural resources damages at these or other sites in the future, could impact our results of operations, financial condition or cash flows.

We believe that we can assert claims for indemnification pursuant to existing rights we have under certain purchase and other agreements in connection with certain remediation sites. In addition, we believe that we have insurance coverage, subject to applicable deductibles or retentions, policy limits and other conditions, for certain environmental matters. However, we may not be successful with respect to any claim regarding these insurance or indemnification rights and, if we are successful, any amounts paid pursuant to the insurance or indemnification rights may not be sufficient to cover all our costs and expenses. We also cannot predict whether we will be required to perform remediation projects at other locations, and it is possible that our remediation requirements and costs could increase materially in the future and exceed current reserves. In addition, we cannot currently determine the impact that future changes in cleanup standards or federal, state or other environmental laws, regulations or enforcement practices will have on our results of operations, financial condition or cash flows.

As of September 30, 2023, we had $9.6 million reserved for environmental liabilities on an undiscounted basis, of which $3.3 million is included in Other noncurrent liabilities and $6.3 million is included in Other current liabilities on the consolidated balance sheets, including amounts accrued in connection with environmental obligations relating to manufacturing facilities that we have closed. We believe the liability for these matters was adequately reserved at September 30, 2023.

Climate Change

 

Climate change presents risks and uncertainties for us. With respect to physical risks, our physical assets and infrastructure, including our manufacturing operations, have been, and may be in future periods impacted by weather-related events such as hurricanes and floods, potentially resulting in items such as physical damage to our facilities and lost production. Unpredictable weather patterns or extended periods of severe weather also may result in supply chain disruptions and increased material costs, such as through impacts to virgin fiber supplies and prices, which may fluctuate during prolonged periods of heavy rain or drought, during tree disease or insect epidemics or other environmental conditions that may be caused by variations in climate conditions. To the extent that severe weather or other climate-related risks materialize, and we are unprepared for them, we may incur unexpected costs, which could have a material effect on our results of operations, cash flows and financial condition, and the trading price of our Common Stock may be adversely impacted.

 

Responses to climate change may result in regulatory risks as new laws and regulations aimed at reducing GHG emissions come into effect. These rules and regulations could take the form of cap-and-trade, carbon taxes, or GHG reductions mandates for utilities that could increase the cost of purchased electricity. New climate rules and regulations also may result in higher fossil fuel prices or fuel efficiency standards that could increase transportation costs. Certain jurisdictions in which we have manufacturing facilities or other investments have already taken actions to address climate change. In addition to national efforts, some U.S. states in which we have manufacturing operations, including Washington, New York and Virginia, are taking measures to reduce GHG emissions, such as requiring GHG emissions reporting or developing regional cap-and-trade programs.

Several of our international facilities are located in countries that have already adopted GHG emissions trading programs. Other countries in which we conduct business, including China, European Union member states and India, have set GHG reduction targets in accordance with the agreement among over 170 countries that established the Paris Agreement, which became effective in November 2016 and which the United States formally rejoined in February 2021.

We have systems in place for tracking the GHG emissions from our energy-intensive facilities, and we monitor developments in climate-related laws, regulations and policies to assess the potential impact of such developments on our results of operations, financial condition, cash flows and disclosure obligations. Compliance with climate programs may require future expenditures to meet GHG emission reduction obligations in future years. These obligations may include carbon taxes, the requirement to purchase GHG credits, or the need to acquire carbon offsets. Also, we may be required to make capital and other investments to displace traditional fossil fuels, such as fuel oil and coal, with lower carbon alternatives, such as biomass and natural gas.

Brazil Tax Liability

 

We are challenging claims by the Brazil Federal Revenue Department that we underpaid tax, penalties and interest associated with a claim that a subsidiary of MeadWestvaco Corporation (the predecessor of WestRock MWV, LLC) had reduced its tax liability related to the goodwill generated by the 2002 merger of two of its Brazilian subsidiaries. The matter has proceeded through the Brazil Administrative Council of Tax Appeals (“CARF”) principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. The tax and interest claim relating to tax years 2009 to 2012 was finalized and is now the subject of an annulment action we filed in the Brazil federal court. CARF notified us of its final decision regarding the tax, penalties and interest claims relating to tax years 2003 to 2008 on June 3, 2020. We have filed an annulment action in Brazil federal court with respect to that decision as

well. The dispute related to fraud penalties for tax years 2009 to 2012 was resolved by CARF in favor of WestRock effective January 23, 2023.

We assert that we have no liability in these matters. The total amount in dispute before CARF and in the annulment actions relating to the claimed tax deficiency was R$714 million ($143 million) as of September 30, 2023, including various penalties and interest. The U.S. dollar equivalent has fluctuated significantly due to changes in exchange rates. The amount of our uncertain tax position reserve for this matter, which excludes certain penalties, is included in the unrecognized tax benefits table. See “Note 7. Income Taxes”. Resolution of the uncertain tax positions could have a material adverse effect on our cash flows and results of operations or materially benefit our results of operations in future periods depending upon their ultimate resolution.

Other Litigation

During fiscal 2018, we submitted formal notification to withdraw from the PIUMPF and recorded a liability associated with the withdrawal. Subsequently, in fiscal 2019 and 2020, we received demand letters from PIUMPF, including a demand for withdrawal liabilities and for our proportionate share of PIUMPF’s accumulated funding deficiency, and we refined our liability, the impact of which was not significant. We began making monthly payments for the PIUMPF withdrawal liabilities in fiscal 2020, excluding the accumulated funding deficiency demands. We dispute the PIUMPF accumulated funding deficiency demands. In February 2020, we received a demand letter from PIUMPF asserting that we owe $51.2 million for our pro-rata share of PIUMPF’s accumulated funding deficiency, including interest. Similarly, in April 2020, we received an updated demand letter related to a subsidiary of ours asserting that we owe $1.3 million of additional accumulated funding deficiency, including interest. The subsidiary for which we received the updated demand letter was sold in September 2023. In July 2021, the PIUMPF filed suit against us in the U.S. District Court for the Northern District of Georgia claiming the right to recover our pro rata share of the pension fund’s accumulated funding deficiency, along with interest, liquidated damages and attorney’s fees. We believe we are adequately reserved for this matter. See “Note 6. Retirement Plans — Multiemployer Plans” of the Notes to Consolidated Financial Statements for additional information regarding our withdrawal liabilities.

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 September 30, 2023, there were approximately 600 such lawsuits. We believe that we have substantial insurance coverage, subject to applicable deductibles and policy limits, with respect to asbestos claims. We also 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 asbestos litigation and proceedings to have a material adverse effect on our results of operations, financial condition or cash flows. In any given period or periods, however, it is possible such proceedings or matters could have an adverse effect on our results of operations, financial condition or cash flows. At September 30, 2023, we had $13.7 million reserved for these matters.

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, 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.

Indirect Tax Claim

In March 2017, the Supreme Court of Brazil issued a decision concluding that certain state value added tax should not be included in the calculation of federal gross receipts taxes. Subsequently, in fiscal 2019 and 2020, the Supreme Court of Brazil rendered favorable decisions on eight of our cases granting us the right to recover certain state value added tax. The tax authorities in Brazil filed a Motion of Clarification with the Supreme Court of Brazil. Based on our evaluation and the opinion of our tax and legal advisors, we believe the decision reduced our gross receipts tax in Brazil prospectively and retrospectively, and will allow us to recover tax amounts collected by the government. Due to the volume of invoices being reviewed (January 2002 to September 2019), we recorded the estimated recoveries across several periods beginning in the fourth quarter of fiscal 2019 as we reviewed the documents and the amount became estimable. In May 2021, the Supreme Court of Brazil judged the Motion of

Clarification and concluded on the gross methodology, which was consistent with our evaluation and that of our tax and legal advisors. In fiscal 2021, we recorded a receivable for our expected recovery and interest that consisted primarily of a $0.6 million reduction of Cost of goods sold and $0.3 million reduction of Interest expense, net. In fiscal 2023, we recorded a receivable for our expected recovery and interest that consisted of a $4.4 million reduction of Cost of goods sold and $4.7 million reduction of Interest expense, net. We are monitoring the status of our remaining cases, and subject to the resolution in the courts, we may record additional amounts in future periods.

Guarantees

We make certain guarantees in the normal course of conducting our operations for compliance with certain laws and regulations, or in connection with certain business transactions. The 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 our exposure to these matters to be less than $50 million. As of September 30, 2023 and 2022, we had recorded $0.8 million and $0.8 million, respectively, 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 laws; however, we believe our exposure related to guarantees would not have a material impact on our results of operations, financial condition or cash flows.
v3.23.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)
 12 Months Ended
Sep. 30, 2023
Other Comprehensive Income Loss [Abstract]  
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)

Note 20. Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive loss by component for the fiscal years ended September 30, 2023 and 2022 (in millions):

 

 

 

Deferred
(Loss) Income on Cash
Flow Hedges

 

 

Defined Benefit
Pension and
Postretirement
Plans

 

 

Foreign
Currency
Items

 

 

Total (1)

 

Balance at September 30, 2021

 

$

(0.2

)

 

$

(536.5

)

 

$

(462.4

)

 

$

(999.1

)

Other comprehensive loss before
   reclassifications

 

 

(10.3

)

 

 

(217.1

)

 

 

(241.2

)

 

 

(468.6

)

Amounts reclassified from accumulated
   other comprehensive loss

 

 

1.4

 

 

 

12.0

 

 

 

—

 

 

 

13.4

 

Net current period other comprehensive loss

 

 

(8.9

)

 

 

(205.1

)

 

 

(241.2

)

 

 

(455.2

)

Balance at September 30, 2022

 

$

(9.1

)

 

$

(741.6

)

 

$

(703.6

)

 

$

(1,454.3

)

Other comprehensive (loss) income before
   reclassifications

 

 

(50.2

)

 

 

119.1

 

 

 

354.4

 

 

 

423.3

 

Amounts reclassified from accumulated
   other comprehensive loss

 

 

54.4

 

 

 

50.5

 

 

 

27.5

 

 

 

132.4

 

Net current period other comprehensive income

 

 

4.2

 

 

 

169.6

 

 

 

381.9

 

 

 

555.7

 

Balance at September 30, 2023

 

$

(4.9

)

 

$

(572.0

)

 

$

(321.7

)

 

$

(898.6

)

 

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

 

The net of tax amounts were determined using the jurisdictional statutory rates, and reflect effective tax rates averaging 25% to 26%, 25% to 26% and 25% to 26% for fiscal 2023, 2022 and 2021, respectively. Although we are impacted by the exchange rates of a number of currencies to varying degrees by period, our foreign currency translation adjustments recorded in accumulated other comprehensive loss primarily relate to the Mexican Peso, Brazilian Real and British Pound, each against the U.S. dollar.

The following table summarizes the reclassifications out of accumulated other comprehensive loss by component for the fiscal years ended September 30, 2023 and 2022 (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Amortization of defined benefit pension and
   postretirement items: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses (2)

 

$

(53.0

)

 

$

13.3

 

 

$

(39.7

)

 

$

(7.8

)

 

$

1.9

 

 

$

(5.9

)

Prior service costs (2)

 

 

(7.5

)

 

 

1.9

 

 

 

(5.6

)

 

 

(8.2

)

 

 

2.1

 

 

 

(6.1

)

Reclassification of net pension
   adjustment upon sale of RTS (3)

 

 

(8.9

)

 

 

3.7

 

 

 

(5.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal defined benefit plans

 

 

(69.4

)

 

 

18.9

 

 

 

(50.5

)

 

 

(16.0

)

 

 

4.0

 

 

 

(12.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification of previously unrealized
   net foreign currency loss upon
   consolidation of equity investment (4)

 

 

(29.0

)

 

 

—

 

 

 

(29.0

)

 

 

—

 

 

 

—

 

 

 

—

 

Reclassification of previously unrealized
   net foreign currency gain upon sale of
   RTS (3)

 

 

1.5

 

 

 

—

 

 

 

1.5

 

 

 

—

 

 

 

—

 

 

 

—

 

Subtotal foreign currency translation
   adjustments

 

 

(27.5

)

 

 

—

 

 

 

(27.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas commodity hedge loss (5)

 

 

(72.6

)

 

 

18.2

 

 

 

(54.4

)

 

 

(1.8

)

 

 

0.4

 

 

 

(1.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total reclassifications for the period

 

$

(169.5

)

 

$

37.1

 

 

$

(132.4

)

 

$

(17.8

)

 

$

4.4

 

 

$

(13.4

)

 

(1)
Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded.
(2)
These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See “Note 6. Retirement Plans” for additional information.
(3)
Amount reflected in Gain on sale of RTS and Chattanooga in the consolidated statements of operations.
(4)
Amount reflected in Equity in income of unconsolidated entities in the consolidated statements of operations.
(5)
These accumulated other comprehensive income components are included in Cost of goods sold.

 

A summary of the components of other comprehensive income (loss), including noncontrolling interest, for the years ended September 30, 2023, 2022 and 2021, is as follows (in millions):

 

Fiscal 2023

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation gain

 

$

354.9

 

 

$

—

 

 

$

354.9

 

Reclassification of previously unrealized net foreign
   currency loss upon consolidation of equity investment

 

 

29.0

 

 

 

—

 

 

 

29.0

 

Reclassification of previously unrealized net foreign currency
   gain upon sale of RTS

 

 

(2.3

)

 

 

—

 

 

 

(2.3

)

Deferred loss on cash flow hedges

 

 

(66.9

)

 

 

16.7

 

 

 

(50.2

)

Reclassification adjustment of net loss on cash flow hedges
   included in earnings

 

 

72.6

 

 

 

(18.2

)

 

 

54.4

 

Net actuarial gain arising during period

 

 

161.6

 

 

 

(40.8

)

 

 

120.8

 

Amortization and settlement recognition of net actuarial loss

 

 

53.5

 

 

 

(13.4

)

 

 

40.1

 

Prior service cost arising during the period

 

 

(2.0

)

 

 

0.5

 

 

 

(1.5

)

Amortization of prior service cost

 

 

7.6

 

 

 

(1.9

)

 

 

5.7

 

Reclassification of net pension adjustment upon sale of RTS

 

 

13.6

 

 

 

(5.7

)

 

 

7.9

 

Consolidated other comprehensive income

 

 

621.6

 

 

 

(62.8

)

 

 

558.8

 

Less: Other comprehensive income attributable to
   noncontrolling interests

 

 

(5.3

)

 

 

2.2

 

 

 

(3.1

)

Other comprehensive income attributable to common
   stockholders

 

$

616.3

 

 

$

(60.6

)

 

$

555.7

 

 

Fiscal 2022

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation loss

 

$

(241.5

)

 

$

—

 

 

$

(241.5

)

Deferred loss on cash flow hedges

 

 

(13.8

)

 

 

3.5

 

 

 

(10.3

)

Reclassification adjustment of net loss on cash flow hedges
   included in earnings

 

 

1.8

 

 

 

(0.4

)

 

 

1.4

 

Net actuarial loss arising during period

 

 

(289.1

)

 

 

72.8

 

 

 

(216.3

)

Amortization and settlement recognition of net actuarial loss

 

 

8.4

 

 

 

(2.0

)

 

 

6.4

 

Prior service cost arising during the period

 

 

(0.2

)

 

 

—

 

 

 

(0.2

)

Amortization of prior service cost

 

 

8.2

 

 

 

(2.1

)

 

 

6.1

 

Consolidated other comprehensive loss

 

 

(526.2

)

 

 

71.8

 

 

 

(454.4

)

Less: Other comprehensive income attributable to noncontrolling
   interests

 

 

(1.1

)

 

 

0.3

 

 

 

(0.8

)

Other comprehensive loss attributable to common
   stockholders

 

$

(527.3

)

 

$

72.1

 

 

$

(455.2

)

 

Fiscal 2021

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation gain

 

$

124.3

 

 

$

—

 

 

$

124.3

 

Deferred loss on cash flow hedges

 

 

(0.1

)

 

 

—

 

 

 

(0.1

)

Reclassification adjustment of net loss on cash flow hedges
   included in earnings

 

 

7.4

 

 

 

(1.9

)

 

 

5.5

 

Net actuarial gain arising during period

 

 

222.2

 

 

 

(56.6

)

 

 

165.6

 

Amortization and settlement recognition of net actuarial loss

 

 

33.9

 

 

 

(8.4

)

 

 

25.5

 

Prior service cost arising during the period

 

 

(5.6

)

 

 

1.4

 

 

 

(4.2

)

Amortization of prior service cost

 

 

6.0

 

 

 

(1.5

)

 

 

4.5

 

Consolidated other comprehensive income

 

 

388.1

 

 

 

(67.0

)

 

 

321.1

 

Less: Other comprehensive income attributable to noncontrolling
   interests

 

 

(0.3

)

 

 

—

 

 

 

(0.3

)

Other comprehensive income attributable to common
   stockholders

 

$

387.8

 

 

$

(67.0

)

 

$

320.8

 

v3.23.3
Stockholders' Equity
 12 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Stockholders' Equity

Note 21. Stockholders’ Equity

Capitalization

Our capital stock consists solely of Common Stock. Holders of our Common Stock are entitled to one vote per share. Our amended and restated certificate of incorporation also authorizes preferred stock, of which no shares have been issued. The terms and provisions of such shares will be determined by our board of directors upon any issuance of such shares in accordance with our certificate of incorporation.

Stock Repurchase Plan

In July 2015, our board of directors authorized a repurchase program of up to 40.0 million shares of our Common Stock, representing approximately 15% of our outstanding Common Stock as of July 1, 2015. On May 4, 2022, our board of directors authorized a new repurchase program of up to 25.0 million shares of our Common Stock, plus any unutilized shares left from the July 2015 authorization. The 25.0 million shares represented an additional authorization of approximately 10% of our outstanding Common Stock. The shares of our Common Stock may be repurchased over an indefinite period of time at the discretion of management. In fiscal 2023, we repurchased no shares of our Common Stock. In fiscal 2022, we repurchased approximately 12.6 million shares of our Common Stock for an aggregate cost of $597.5 million. In fiscal 2021, we repurchased approximately 2.5 million shares of our Common Stock for an aggregate cost of $125.1 million. The amount reflected as purchased in the consolidated statements of cash flows varies due to the timing of share settlement. As of September 30, 2023, we had approximately 29.0 million shares of Common Stock available for repurchase under the program, although we have indefinitely suspended the program in light of the proposed Transaction (and related restrictions imposed by the Transaction Agreement).
v3.23.3
Share-Based Compensation
 12 Months Ended
Sep. 30, 2023
Stock Based Compensation [Abstract]  
Stock Based Compensation

Note 22. Share-Based Compensation

Share-based Compensation Plans

At our Annual Meeting of Stockholders held on January 29, 2021, our stockholders approved the WestRock Company 2020 Incentive Stock Plan. The 2020 Incentive Stock Plan, as approved by our stockholders on January 28, 2022, allows for the granting of 8.4 million shares of options, restricted stock, restricted stock units and SARs to employees and our non-employee directors. As of September 30, 2023, there were 0.6 million shares available to be granted under this plan, assuming the performance stock units previously granted vest at maximum. At our Annual Meeting of Stockholders held on February 2, 2016, our stockholders approved the WestRock Company 2016 Incentive Stock Plan. The 2016 Incentive Stock Plan was amended and restated on February 2, 2018 (the “Amended and Restated 2016 Incentive Stock Plan”). The Amended and Restated 2016 Incentive Stock Plan, adjusted for a prior corporate action, allows for the granting of 12.8 million shares of options, restricted stock, restricted stock units and SARs to employees and our non-employee directors. As of September 30, 2023, there were 0.4 million shares available to be granted under this plan, assuming the performance stock units previously granted vest at maximum. In addition, there were 12.7 million shares available for grant under prior plans approved by stockholders and plans assumed upon mergers and acquisitions and we do not expect to make any new awards under those plans.

Our results of operations for the fiscal years ended September 30, 2023, 2022 and 2021 include share-based compensation expense of $64.2 million, $93.3 million and $88.6 million, respectively. The total income tax benefit in the results of operations in connection with share-based compensation was $16.0 million, $23.3 million and $22.3 million, for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.

Cash received from share-based payment arrangements for the fiscal years ended September 30, 2023, 2022 and 2021 was $13.7 million, $28.9 million and $57.5 million, respectively.

 

Restricted Stock and Restricted Stock Units

In fiscal 2023, we granted restricted stock units to non-employee directors and certain of our employees. These grants represent the right to receive one share of Common Stock upon satisfaction of specified conditions. The

vesting provisions for our employee awards may vary from grant to grant; however, vesting generally is contingent upon meeting various service and/or performance or market goals including, but not limited to, achievement of various financial targets such as, with respect to fiscal 2023, Return on Invested Capital, Adjusted Earnings Per Share and relative Total Shareholder Return (each as defined in the award documents). Subject to the level of performance attained, the target award for our grants with a performance or market condition generally may increase up to 200% of target or decrease to zero depending upon the terms of the individual grant. The employee grants with only a service condition generally vest over three years in one-third increments subsequent to fiscal 2021. The employee grants with only a service condition in fiscal 2021 and employee grants with a performance or market condition generally vest in three years. Presently, other than circumstances such as death, disability and retirement, the grants to employees generally include a provision requiring both a change of control and termination of employment to accelerate vesting. The grantee is entitled to receive dividend equivalent units but will generally forfeit the restricted stock unit award and the dividend equivalents if the employee separates from us during the vesting period or if the predetermined goals are not accomplished. Our non-employee director awards generally vest over a period of up to one year and carry a service condition. Prior to fiscal 2022, our non-employee directors received their equity awards in the form of restricted stock, which carried dividend and voting rights prior to vesting.

The table below summarizes the changes in restricted stock units during the fiscal year ended September 30, 2023:

 

 

 

Units

 

 

Weighted
Average
Grant Date Fair
Value

 

Outstanding at September 30, 2022 (1)

 

4,900,629

 

$

43.73

 

Granted

 

3,066,748

 

 

35.22

 

Vested and released

 

(2,131,067

)

 

40.91

 

Forfeited

 

(558,177

)

 

41.23

 

Outstanding at September 30, 2023 (1)

 

5,278,133

 

$

40.19

 

 

(1)
Target awards granted with a performance condition, net of subsequent forfeitures, may be increased up to 200% of the target or decreased to zero, subject to the level of performance attained. The awards are reflected in the table at the target award amount of 100%. Based on current facts and assumptions, we are forecasting the performance of the aggregate outstanding grants to be attained at levels below target. However, actual performance may vary.

There was approximately $89.5 million of unrecognized compensation cost related to all unvested restricted stock units as of September 30, 2023 to be recognized over a weighted average remaining vesting period of 1.5 years.

The following table represents a summary of restricted stock units and restricted stock granted in fiscal 2023, 2022 and 2021 with terms defined in the applicable grant letters (in units/shares).

 

2023

 

2022

 

2021

 

Granted to employees:

 

 

 

Granted with a service condition

 

1,419,255

 

 

1,159,255

 

 

1,009,387

 

Granted with a service condition and a Return on
   Invested Capital performance condition at target

 

540,425

 

 

394,655

 

 

—

 

Granted with a service condition and a Cash Flow Per
   Share performance condition at target

 

—

 

 

464,485

 

 

798,490

 

Granted with a service condition and an Adjusted Earnings
   Per Share performance condition at target

 

644,755

 

 

—

 

 

—

 

Granted with a service condition and a relative Total
   Shareholder Return market condition at target

 

69,560

 

 

45,470

 

 

127,050

 

Granted for attainment of a performance condition at
   an amount in excess of target (1)

 

341,590

 

 

263,918

 

 

—

 

Granted for annual bonus (2)

 

 

—

 

 

 

—

 

 

 

126,984

 

Granted to non-employee directors

 

51,163

 

 

37,771

 

 

42,482

 

Total grants

 

3,066,748

 

 

2,365,554

 

 

2,104,393

 

 

 

(1)
Grants include shares issued for the level of performance attained in excess of target. Shares issued in fiscal 2023 for the fiscal 2020 Cash Flow Per Share measure were at 151.8% of target. Shares issued in fiscal 2022 for the fiscal 2019 Cash Flow Per Share measure were at 151.3% of target. Shares issued in fiscal 2021 for the fiscal 2018 Cash Flow Per Share measure were at 89.3% of target, therefore, the remainder of the grant was forfeited.
(2)
Reflects shares issued at 105% of target in fiscal 2021 relating to fiscal 2020 restricted stock units granted for the annual bonus.

The employee grants with a relative Total Shareholder Return market condition in fiscal 2023 were valued using a Monte Carlo simulation at $39.72 per unit. The significant assumptions used in valuing these grants included: an expected term of 3.0 years, an expected volatility of 47.2% and a risk-free interest rate of 4.0%.

The employee grants with a relative Total Shareholder Return market condition in fiscal 2022 were valued using a Monte Carlo simulation at $60.83 per unit. The significant assumptions used in valuing these grants included: an expected term of 3.0 years, an expected volatility of 46.7% and a risk-free interest rate of 1.5%.

The employee grants with a relative Total Shareholder Return market condition in fiscal 2021 were valued using a Monte Carlo simulation at $53.69 per unit. The significant assumptions used in valuing these grants included: an expected term of 3.0 years, an expected volatility of 46.2% and a risk-free interest rate of 0.2%. In addition, we had a subsequent grant for an individual valued using a Monte Carlo simulation at $70.80 per unit, using an expected term of 2.9 years, an expected volatility of 47.0% and a risk-free rate of 0.3%.

Expense is recognized on restricted stock units and restricted stock on a straight-line basis over the explicit service period or for performance-based grants over the explicit service period when we estimate that it is probable the performance conditions will be satisfied. Expense recognized on grants with a performance condition that affects how many units are ultimately awarded is based on the number of units expected to be awarded.

The following table represents a summary of restricted stock units and restricted stock vested and released as well as the corresponding aggregate fair value in fiscal 2023, 2022 and 2021 (in millions, except units/shares):

 

2023

 

2022

 

2021

 

Vested and released

 

2,131,067

 

 

1,512,550

 

 

3,194,223

 

Aggregate fair value

$

72.6

 

$

68.7

 

$

125.1

 

Stock Options and Stock Appreciation Rights

We did not grant any stock options or SARs in fiscal 2023, 2022 and 2021. Outstanding stock options granted under our plans generally have an exercise price equal to the closing market price on the date of the grant, generally vested in three years, in either one tranche or in approximately one-third increments, and have 10-year contractual terms. However, a portion of our grants are subject to earlier expense recognition due to retirement eligibility rules. Presently, other than circumstances such as death, disability and retirement, grants will include a provision requiring both a change of control and termination of employment to accelerate vesting.

When options are granted, we estimate the fair value of stock options granted using a Black-Scholes option pricing model. We use historical data to estimate option exercises and employee terminations in determining the expected term in years for stock options. Expected volatility is calculated based on the historical volatility of our stock. The risk-free interest rate is based on U.S. Treasury securities in effect at the date of the grant of the stock options. The dividend yield is estimated based on our historical annual dividend payments and current expectations for the future.

The table below summarizes the changes in stock options during the fiscal year ended September 30, 2023:

 

 

 

Stock
Options

 

 

Weighted
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual
Term
(in years)

 

 

Aggregate
Intrinsic
Value
(in millions)

 

Outstanding at September 30, 2022

 

1,082,925

 

$

40.22

 

 

 

Exercised

 

(120,018

)

 

28.83

 

 

 

Expired

 

(262,375

)

 

40.04

 

 

 

Outstanding at September 30, 2023

 

700,532

 

$

42.24

 

 

1.3

 

$

2.0

 

Exercisable at September 30, 2023

 

700,532

 

$

42.24

 

 

1.3

 

$

2.0

 

 

The aggregate intrinsic value of options exercised during the years ended September 30, 2023, 2022 and 2021 was $0.8 million, $8.6 million and $29.1 million, respectively.

As of September 30, 2023, there was no remaining unrecognized compensation cost related to unvested stock options.

As part of the Combination, we issued SARs to replace outstanding MWV SARs. The SARs were valued using the Black-Scholes option pricing model. We measured compensation expense related to the SAR awards at the end of each period. There were no SARs outstanding during the year ended September 30, 2023, and we do not expect to issue additional SARs. The aggregate intrinsic value of SARs exercised during the years ended September 30, 2022 and 2021 was $0.1 million and $0.2 million, respectively.

 

Employee Stock Purchase Plan

At our Annual Meeting of Stockholders held on February 2, 2016, our stockholders approved the WestRock Company Employee Stock Purchase Plan (“ESPP”). Under the ESPP, shares of Common Stock are reserved for purchase by our qualifying employees. The ESPP allowed for the purchase of a total of approximately 2.5 million shares of Common Stock. During fiscal 2023, 2022 and 2021, employees purchased approximately 0.4 million, 0.3 million and 0.3 million shares, respectively, under the ESPP. We recognized $1.7 million, $1.8 million and $1.9 million of expense for fiscal 2023, 2022 and 2021, respectively, related to the 15% discount on the purchase price allowed to employees. As of September 30, 2023, approximately 0.6 million shares of Common Stock remained available for purchase under the ESPP, although the ESPP will be suspended following the November 2023 purchase period in light of the proposed Transaction (and related obligations imposed by the Transaction Agreement).
v3.23.3
Earnings per Share
 12 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Earnings per Share

Note 23. 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):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Numerator:

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common stockholders

 

$

(1,649.0

)

 

$

944.6

 

 

$

838.3

 

Less: Distributed and undistributed income available to
   participating securities

 

 

—

 

 

 

(0.1

)

 

 

(0.2

)

Distributed and undistributed (loss) income available to
   common stockholders

 

$

(1,649.0

)

 

$

944.5

 

 

$

838.1

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

255.9

 

 

 

259.5

 

 

 

265.2

 

Effect of dilutive stock options and non-participating securities

 

 

—

 

 

 

2.0

 

 

 

2.3

 

Diluted weighted average shares outstanding

 

 

255.9

 

 

 

261.5

 

 

 

267.5

 

 

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per share attributable to common
   stockholders

 

$

(6.44

)

 

$

3.64

 

 

$

3.16

 

 

 

 

 

 

 

 

 

 

 

Diluted (loss) earnings per share attributable to common
   stockholders

 

$

(6.44

)

 

$

3.61

 

 

$

3.13

 

 

Beginning in fiscal 2022, non-employee directors began receiving equity grants in the form of restricted stock units, which are not considered participating securities as the rights to dividends accrued during the vesting period are forfeitable. The restricted stock grants to non-employee directors prior to fiscal 2022 were considered participating securities as they received non-forfeitable rights to dividends at the same rate as our Common Stock. As participating securities, we included these instruments in the earnings allocation in computing earnings per share under the two-class method described in ASC 260, “Earnings per Share”.

 

Approximately 2.5 million, 0.5 million and 0.5 million shares underlying awards in fiscal 2023, 2022 and 2021, respectively, were not included in computing diluted earnings per share because the effect would have been antidilutive.

v3.23.3
Description of Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Sep. 30, 2023
Description Of Business And Summary Of Significant Accounting Policies [Abstract]  
Description of Business

Description of Business

Unless the context otherwise requires, “we”, “us”, “our”, “WestRock” and “the Company” refer to WestRock Company, its wholly-owned subsidiaries and its partially-owned consolidated subsidiaries.

WestRock is a multinational provider of sustainable fiber-based paper and packaging solutions. We partner with our customers to provide differentiated, sustainable paper and packaging solutions that help them win in the marketplace. Our team members support customers around the world from our operating and business locations in North America, South America, Europe, Asia and Australia.

 

On September 29, 2023, we completed the sale of our Seven Hills mill joint venture in Lynchburg, VA and received $11.0 million of cash proceeds, subject to certain customary adjustments, and recorded an aggregate pre-tax net gain on sale of $4.3 million; $7.6 million was recorded in the Equity in income of unconsolidated entities line item in our consolidated statements of operations that was partially offset by a $3.3 million loss on sale of property, plant and equipment that was recorded in cost of goods sold.

 

On September 8, 2023, we sold our interior partitions converting operations (our ownership interest in RTS Packaging, LLC) and our Chattanooga, TN uncoated recycled paperboard mill to our joint venture partner and received $318.2 million of net cash proceeds, including a preliminary working capital adjustment and other customary adjustments. We recorded a pre-tax gain on sale of $238.8 million which is recorded in "Gain on sale of RTS and Chattanooga" in our consolidated statements of operations, excluding divestiture costs. Divestiture costs are expensed as incurred and recorded within Restructuring and other costs, net. See “Note 5. Restructuring and Other Costs, Net” for additional information.

 

On June 16, 2023, we sold our ownership interest in an unconsolidated displays joint venture for $43.8 million in cash and recorded a pre-tax gain on sale of $19.3 million recorded in the Equity in income of unconsolidated entities line item in our consolidated statements of operations including a de minimis adjustment in the fourth quarter.

On December 1, 2022, we completed our acquisition of the remaining 67.7% interest in Grupo Gondi for $969.8 million in cash and the assumption of debt. We accounted for this acquisition as a business combination resulting in its consolidation. See “Note 3. Acquisitions” for additional information.

On December 1, 2022, we sold our Eaton, IN, and Aurora, IL uncoated recycled paperboard mills for $50 million, subject to a working capital adjustment. We received proceeds of $25 million, a preliminary working capital settlement of $0.9 million and are financing the remaining $25 million. During the third quarter of fiscal 2023, we recorded a de minimis final working capital adjustment. Pursuant to the terms of the sale agreement, we transferred control of these mills to the buyer and recorded a pre-tax gain on sale of $11.2 million in Other (expense) income, net in our consolidated statements of operations.

Transaction Agreement with Smurfit Kappa

 

On September 12, 2023, we entered into a Transaction Agreement with Smurfit Kappa, Cepheidway Limited (to be renamed Smurfit WestRock plc), ListCo and Merger Sub. The Transaction Agreement provides, among other things, and subject to the satisfaction or waiver of the conditions set forth therein, that (a) pursuant to the Scheme each issued ordinary share of Smurfit Kappa will be exchanged for one ListCo Share, as a result of which Smurfit Kappa will become a wholly owned subsidiary of ListCo, and (b) following the implementation of the Scheme, Merger Sub will merge with and into the Company, with the Company surviving the Merger as a wholly owned subsidiary of ListCo. As a result of the Merger, each share of our Common Stock, with certain exceptions, will be converted into the right to receive one ListCo Share and $5.00 in cash. All shares owned by the Company, any Company subsidiary, Smurfit Kappa, Merger Sub or any of their respective subsidiaries will be cancelled and will cease to exist, and no consideration will be delivered in exchange therefor. The Transaction Agreement also provides a mechanism for converting outstanding Company equity awards to ListCo awards. The Transaction is

expected to close in the second calendar quarter of 2024, conditional upon regulatory approvals, shareholder approvals and satisfaction of other closing conditions. We expect that the ListCo shares will be (i) registered under the Securities Exchange Act of 1934, as amended, and listed on the NYSE and (ii) listed on the FCA and admitted to trading on the main market for listed securities of LSE. Shares of our Common Stock will be delisted from the NYSE and deregistered under the Exchange Act.

 

The Transaction is subject to certain conditions set forth in the Transaction Agreement, including, but not limited to: certain regulatory clearances, approval by the shareholders and stockholders of both companies (75% or more for Smurfit Kappa shareholders and a majority for our stockholders), the registration statement for the offer of ListCo Shares being declared effective by the SEC and the approval of the ListCo Shares for listing on the NYSE.

 

The Transaction Agreement contains certain termination rights for both parties. Upon termination of the Transaction Agreement under specified circumstances, including if our board changes or withdraws its recommendation to our stockholders or willfully breaches its non-solicitation covenant, we will be required to make a payment to Smurfit Kappa equal to $147 million in cash. If the Transaction Agreement is terminated in connection with the failure to obtain our stockholders’ approval, we will be required to make a payment to Smurfit Kappa equal to $57 million in cash. Smurfit Kappa will be required to make payments to us in connection with the termination of the Transaction Agreement under specified circumstances.

 

The foregoing summary of the Transaction Agreement does not purport to be complete and is subject to and qualified in its entirety by the full text of the Transaction Agreement.
Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. Actual results may differ from these estimates.

The consolidated financial statements include the accounts of WestRock and our partially owned subsidiaries for which we have a controlling financial interest, including variable interest entities for which we are the primary beneficiary.

Equity investments in which we exercise significant influence but do not control and are not the primary beneficiary are accounted for as equity method investments. Investments without a readily determinable value in which we are not able to exercise significant influence over the investee are accounted for under the measurement alternative (i.e., cost less impairment, adjusted for any qualifying observable price changes). Our investments accounted for under the equity method or the measurement alternative method are not material either individually or in the aggregate. We have eliminated all significant intercompany accounts and transactions. See “Note 8. Segment Information” for additional information on our equity method investments.
Reclassifications and Adjustments

Reclassifications and Adjustments

 

Certain amounts in prior periods have been reclassified to conform with the current year presentation.
Immaterial Presentation Correction

Immaterial Presentation Correction

 

In the third quarter of fiscal 2023, we evaluated our financing facilities, determined that the borrowings and repayments for certain facilities should be presented gross instead of net within financing cash flow activities on our consolidated statements of cash flows, and corrected the presentation of relevant prior period amounts. The correction increased both Additions to debt and Repayments of debt by $385.0 million and increased both Additions to revolving credit facilities and Repayments of revolving credit facilities by $5.0 million in fiscal 2022, resulting in Additions to debt of $888.2 million, Repayments of debt of $1,376.5 million, Additions to revolving credit facilities of $382.4 million and Repayments of revolving credit facilities of $378.3 million, with no change to Net cash used for financing activities. The correction has no effect on the previously reported net cash flows from operating or investing activities. Additionally, the correction did not impact cash flows reported for fiscal 2021. Management does not believe the correction to be material to our current or previously filed financial statements.
Ransomware Incident

Ransomware Incident

As previously disclosed, on January 23, 2021, we detected a ransomware incident impacting certain of our systems. Promptly upon our detection of this incident, we initiated response and containment protocols and our security teams, supplemented by leading cyber defense firms, worked to remediate this incident. These actions included taking preventative measures, such as shutting down certain systems out of an abundance of caution, as well as taking steps to supplement existing security monitoring, scanning and protective measures. In our Form 10-Q for the second quarter of fiscal 2021, we announced that all systems were back in service.

We undertook extensive efforts to identify, contain and recover from this incident quickly and securely. Our teams worked to maintain our business operations and minimize the impact on our customers and team members. In our Form 10-Q for the second quarter of fiscal 2021, we announced that all systems were back in service. All of our mills and converting locations began producing and shipping paper and packaging at pre-ransomware levels in March 2021 or earlier. Our mill system production was approximately 115,000 tons lower than planned for the quarter ended March 31, 2021 as a result of this incident. While shipments from some of our facilities initially lagged behind production levels, this gap closed as systems were restored during the second quarter of fiscal 2021. In locations where technology issues were identified, we used alternative methods, in many cases manual methods, to process and ship orders. We systematically brought our information systems back online in a controlled, phased approach.

We estimated the pre-tax income impact of the lost sales and operational disruption of this incident on our operations in the second quarter of fiscal 2021 was approximately $50 million, as well as approximately $20 million of ransomware recovery costs, primarily professional fees. In addition, we incurred approximately $9 million of ransomware recovery costs in the third quarter of fiscal 2021. In the fourth quarter of fiscal 2021, we recorded a $15 million credit for preliminary recoveries – approximately $10 million as a reduction of SG&A expense excluding intangible amortization and approximately $5 million as a reduction of Cost of goods sold. In fiscal 2022, we recorded a $57.2 million credit for ransomware insurance recoveries, recording $50.6 million of business interruption recoveries as a reduction of Cost of goods sold and $6.6 million of direct cost recoveries as a reduction of SG&A expense excluding intangible amortization. In fiscal 2023, we recorded a $10.0 million credit for ransomware insurance recoveries as a reduction of Cost of goods sold. We present ransomware recoveries received as Net cash provided by operating activities in our consolidated statements of cash flows. Our recoveries related to the ransomware incident are now complete.

In order to contain and remediate the cybersecurity incident, we engaged a leading cybersecurity defense firm to complete a forensics investigation and performed short-term mitigation actions in the latter half of 2021. Mitigations performed included the execution of a company-wide password reset and the deployment of security tooling across all our servers and workstations. Additionally, to address longer term security objectives, we developed a multi-year security and resiliency roadmap, aimed to strengthen the company’s ability to detect, respond, and recover from security incidents. This roadmap included initiatives to bolster our information security posture across the enterprise, and to deploy technology and process improvements to allow for faster and more effective incident response and recovery. More specifically, key areas of focus for the resiliency roadmap included: strengthening security monitoring controls, improving security at our operating locations, automating identity and access management, expanding third-party security, modernizing the network and file and print infrastructure, and updating backup capabilities.
Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates, and the differences could be material.

We base our estimates on the current information available, our experiences and various other assumptions believed to be reasonable under the circumstances. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, pricing

cycles relating to industry capacity, product mix, and in some cases, actuarial techniques. We regularly evaluate these significant factors and make adjustments where facts and circumstances dictate.
Revenue Recognition

Revenue Recognition

 

We generally recognize revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods, which coincide with the transfer of control of our goods to the customer. Additionally, we manufacture certain customized products that have no alternative use to us (since they are made to specific customer specifications), and we believe that for certain customers we have a legally enforceable right to payment for performance completed to date on these products, including a reasonable profit. For products that meet these two criteria, we recognize revenue “over time”. This results in revenue recognition prior to the date of shipment or title transfer for these products and results in the recognition of a contract asset (unbilled receivables) with a corresponding reduction in finished goods inventory on our balance sheet.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Our revenues are primarily derived from fixed consideration. However, we net provisions for discounts, returns, allowances, customer rebates and other adjustments against our gross sales. Such adjustments are based on historical experience which is consistent with the most likely method as provided in ASC 606 “Revenue from Contracts with Customers” (“ASC 606”).

 

As permitted by ASC 606, we have elected to treat costs associated with obtaining new contracts as expenses when incurred if the amortization period of the asset we would recognize is one year or less. We do not record interest income when the difference in timing of control transfer and customer payment is one year or less. We also account for sales and other taxes that are imposed on and concurrent with individual revenue-producing transactions between a customer and us on a net basis which excludes the taxes from our net sales.
Shipping and Handling Cost

Shipping and Handling Costs

We classify shipping and handling costs, such as freight to our customers’ destinations, as a component of cost of goods sold. When shipping and handling costs are included in the sales price charged for our products, they are recognized in net sales since we treat shipping and handling as fulfilment activities.
Cash Equivalents

Cash Equivalents

We consider all highly liquid investments that mature three months or less from the date of purchase to be cash equivalents. The carrying amounts of our cash and cash equivalents approximate fair market values. We place our cash and cash equivalents primarily with large credit-worthy banks, which limits the amount of our credit exposure.
Accounts Receivables and Allownanes

Accounts Receivable and Allowances

We derive our accounts receivable from revenue earned from customers located primarily in North America, South America, Europe, Asia and Australia. Given our diverse customer base, we have limited exposure to credit loss from any particular customer or industry segment, and hence we generally do not require collateral. We perform an evaluation of lifetime expected credit losses inherent in our accounts receivable at each balance sheet date. Such an evaluation includes consideration of historical loss experience, trends in customer payment frequency, present economic conditions, and judgment about the future financial health of our customers and industry sector. The average of our receivables collection is within 30 to 60 days. We are a party to accounts receivable monetization agreements to sell to third-party financial institutions all of the short-term receivables generated from certain customer trade accounts. See “Note 13. Fair Value — Accounts Receivable Monetization Agreements” for additional information.

We state accounts receivable at the amount owed by the customer, net of an allowance for estimated credit impairment losses, returns and allowances, cash discounts and other adjustments. We do not discount accounts receivable because we generally collect accounts receivable over a relatively short time. We charge off receivables when they are determined to be no longer collectible. We recorded credit impairment losses of $5.9 million and $4.6 million in fiscal 2023 and 2022, respectively, and income of $9.4 million in fiscal 2021.

The following table represents a summary of the changes in the reserve for allowance for estimated credit impairment losses, returns and allowances, and cash discounts for fiscal 2023, 2022 and 2021 (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of fiscal year

 

$

66.3

 

 

$

68.1

 

 

$

66.3

 

Reduction in sales and charges to costs and expenses

 

 

252.0

 

 

 

261.9

 

 

 

236.5

 

Deductions

 

 

(258.1

)

 

 

(263.7

)

 

 

(234.7

)

Balance at end of fiscal year

 

$

60.2

 

 

$

66.3

 

 

$

68.1

 
Inventories

Inventories

We value our U.S. inventories at the lower of cost or market, with cost for the majority of our U.S. inventories determined on the last-in first-out (“LIFO”) basis. We value all other inventories at the lower of cost and net realizable value, with cost determined using methods that approximate cost computed on a first-in first-out inventory valuation method (“FIFO”) basis. These other inventories are primarily foreign inventories, distribution business inventories, spare parts inventories and certain inventoried supplies and aggregate to approximately 43% and 35% of FIFO cost of all inventory at September 30, 2023 and 2022, respectively. The increase in fiscal 2023 is primarily due to the Mexico Acquisition. See “Note 10. Inventories” for additional information.

Prior to the application of the LIFO method, our U.S. operating divisions use a variety of methods to estimate the FIFO cost of their finished goods inventories. Such methods include standard costs, or average costs computed by dividing the actual cost of goods manufactured by the tons produced and multiplying this amount by the tons of inventory on hand. Variances and other unusual items are analyzed to determine whether it is appropriate to include those items in the value of inventory. Examples of variances and unusual items that are considered to be current period charges include, but are not limited to, production levels, freight, handling costs, and wasted materials (spoilage) that are determined to be abnormal. Costs include raw materials and supplies, direct labor, indirect labor related to the manufacturing process, and depreciation and other factory overheads. Our inventoried spare parts are measured at average cost.
Leased Assets

Leased Assets

When adopting the provisions of ASC 842, “Leases” we elected the package of three practical expedients permitted within the standard pursuant to which we did not reassess initial direct costs, lease classification or whether our contracts contain or are leases. We lease various real estate, including certain operating facilities, warehouses, office space and land. We also lease material handling equipment, vehicles and certain other equipment. We record our operating lease right-of-use (“ROU”) assets and liabilities at the commencement date of the lease based on the present value of lease payments over the lease term.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. While some leases provide for variable payments, they are not included in the ROU assets and liabilities because they are not based on an index or rate. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles and leases within supply agreements primarily relate to usage, repairs, and maintenance. As the implicit rate is not readily determinable for our leases, we apply a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a monthly basis for measurement of new lease liabilities.

We have made an accounting policy election to not recognize an ROU asset and liability for leases with a term of 12 months or less unless the lease includes an option to renew or purchase the underlying asset that we are reasonably certain to exercise. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. See “Note 15. Leases” for additional information.
Property, Plant and Equipment

Property, Plant and Equipment

We record property, plant and equipment at cost less accumulated depreciation. Cost includes major expenditures for improvements and replacements that extend useful lives, increase capacity, increase revenues or reduce costs, while normal maintenance and repairs are expensed as incurred. For financial reporting purposes, we provide depreciation and amortization primarily on a straight-line method generally over the estimated useful lives of the assets as follows:

 

Buildings and building improvements

 

15-40 years

Machinery and equipment

 

3-25 years

Transportation equipment

 

3-8 years

 

Generally, our machinery and equipment have estimated useful lives between 3 and 25 years; however, select portions of machinery and equipment primarily at our mills have estimated useful lives up to 44 years. Greater than 90% of the cost of our mill assets have useful lives of 25 years or less. Leasehold improvements are depreciated over the shorter of the asset life or the lease term, generally between 3 and 10 years.
Goodwill

Goodwill

In accordance with ASC 350, we review the carrying value of our goodwill annually at the beginning of the fourth quarter of each fiscal year, or more often if events or changes in circumstances indicate that the carrying amount may exceed fair value. We test goodwill for impairment at the reporting unit level, which is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. However, two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. The amount of goodwill acquired in a business combination that is assigned to one or more reporting units as of the acquisition date is the excess of the purchase price of the acquired businesses (or portion thereof) included in the reporting unit, over the fair value assigned to the individual assets acquired or liabilities assumed from a market participant perspective. Goodwill is assigned to the reporting unit(s) expected to benefit from the synergies of the combination even though other assets or liabilities of the acquired entity may not be assigned to that reporting unit. We determine recoverability by comparing the estimated fair value of the reporting unit to which the goodwill applies to the carrying value, including goodwill, of that reporting unit. We determine the fair value of each reporting unit using the present value of expected cash flows (“Income Approach”) or, as appropriate, a combination of the Income Approach and the guideline public company method (“Market Approach”).

ASC 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is “more likely than not” that the fair value of a reporting unit exceeds its carrying amount. We generally do not attempt a qualitative assessment and move directly to the quantitative test. As part of the quantitative test, we utilize the present value of expected cash flows or, as appropriate, a combination of the present value of expected cash flows and the guideline public company method to determine the estimated fair value of our reporting units. This present value model requires management to estimate future cash flows, the timing of these cash flows, and a discount rate (based on a weighted average cost of capital), which represents the time value of money and the inherent risk and uncertainty of the future cash flows. Factors that management must estimate when performing this step in the process include, among other items, sales volume, prices, EBITDA margins, capital expenditures and discount rates. The assumptions we use to estimate future cash flows are consistent with the assumptions that the reporting units use for internal planning purposes, which we believe would be generally consistent with that of a market participant. Under the guideline public company method, we estimate the fair value of the reporting unit based on published EBITDA multiples of comparable public companies with similar operations and economic characteristics. The fair values determined by the discounted cash flow and guideline public company methods are weighted to arrive at the concluded fair value of the reporting unit. However, in instances where comparisons to our peers is less meaningful, no weight is placed on the guideline public company method to arrive at the concluded fair value of the reporting unit. If we determine that the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If we determine that the carrying amount of the reporting unit exceeds its estimated fair value, we measure the goodwill impairment charge based on the excess of a reporting

unit’s carrying amount over its fair value, but not in excess of the total amount of goodwill allocated to the respective reporting unit, as required under ASU 2017-04 “Simplifying the Test for Goodwill Impairment”.

In the second quarter of fiscal 2023, due to the sustained decrease in our market capitalization and the further deterioration of macroeconomic conditions, including the impact of soft demand, pricing pressure and elevated inflation, which negatively affected our long-term forecasts in certain segments, we concluded that impairment indicators existed. As a result, we completed an interim quantitative goodwill impairment test in conjunction with our normal quarterly reporting process. Consistent with past practice, the estimated fair value of our reporting units was determined using a combination of Income Approach and the Market Approach. These fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors.

In fiscal 2023, we recorded a pre-tax, non-cash impairment charge of $1,893.0 million ($1,821.8 million after-tax) associated with our interim goodwill impairment analysis completed in the second quarter. See “Note 8. Segment Information” of the Notes to Consolidated Financial Statements for additional information.

During the fourth quarter of fiscal 2023, we completed our annual goodwill impairment testing. We considered factors such as, but not limited to, our expectations for macroeconomic conditions, industry and market considerations, and financial performance, including planned revenue, earnings and capital investments of each reporting unit. The discount rate used for each reporting unit ranged from 9.5% to 14.5%. We used perpetual growth rates ranging from 0.0% to 1.0%. All reporting units that have goodwill were noted to have a fair value that exceeded their carrying values. The fair value of our Consumer Packaging reporting unit exceeded its carrying value by 30%. However, our Corrugated Packaging and Distribution reporting units had fair values that exceeded their respective carrying values by less than 10%. Our Corrugated Packaging reporting unit had a narrow fair value cushion due to the goodwill impairment charge recorded for the reporting unit in the second quarter of fiscal 2023 and the fair value accounting related to the Mexico Acquisition.

 

If we had concluded that it was appropriate to increase the discount rate we used by 100 basis points, the fair value of only our Consumer Packaging reporting unit would have continued to exceed its carrying value. In our fiscal 2023 annual goodwill impairment analysis, projected future cash flows for the Corrugated Packaging and Distribution reporting units were discounted at 9.5% and 14.5%, respectively. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rates for Corrugated Packaging and Distribution reporting units would have to be increased to 9.9% and 15.4%, respectively, in order for the estimated fair value of the reporting units to fall below their carrying values.

 

At September 30, 2023, the Corrugated Packaging, Consumer Packaging and Distribution reporting units had $2,603.7 million, $1,506.6 million and $138.4 million of goodwill, respectively. Our Global Paper reporting unit had no goodwill. Because the fair values of the Corrugated Packaging and Distribution reporting units are not substantially more than their carrying values, these reporting units have greater risk of future impairments should we experience adverse changes in our assumptions, estimates, or market factors. If the assumptions, estimates, and market factors underlying our fair value determinations change adversely, we may be exposed to additional impairment charges, which could be material. Additionally, there are certain risks inherent to our operations as described in Item 1A. “Risk Factors”.

 

Subsequent to our annual test, we monitored industry economic trends through the end of fiscal 2023 and determined no additional testing for goodwill impairment was warranted. We have not made any material changes to our impairment loss assessment methodology during the past three fiscal years.

Long-Lived Assets

Long-Lived Assets

We follow the provisions included in ASC 360, “Property, Plant, and Equipment” in determining whether the carrying value of any of our long-lived assets, including amortizable intangibles other than goodwill, is impaired. The ASC 360 test is a three-step test for assets that are “held and used” as that term is defined by ASC 360. We determine whether indicators of impairment are present. We review long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of the long-lived asset might not be recoverable. If we determine that indicators of impairment are present, we determine whether the estimated undiscounted cash

flows for the potentially impaired assets are less than the carrying value. This requires management to estimate future cash flows through operations over the remaining useful life of the asset and its ultimate disposition. The assumptions we use to estimate future cash flows are consistent with the assumptions we use for internal planning purposes, updated to reflect current expectations. If our estimated undiscounted cash flows do not exceed the carrying value, we estimate the fair value of the asset and record an impairment charge if the carrying value is greater than the fair value of the asset. We estimate fair value using discounted cash flows, observable prices for similar assets, or other valuation techniques. We record assets classified as “held for sale” at the lower of their carrying value or estimated fair value less anticipated costs to sell. See “Note 5. Restructuring and Other Costs, Net” for additional information on long-lived asset write-offs included in restructuring charges recorded in conjunction with our decision to permanently cease operations at our Tacoma, WA and North Charleston, SC containerboard mills. Our long-lived assets, including intangible assets, remain recoverable.

Included in our long-lived assets are certain identifiable intangible assets. These intangible assets are amortized based on the approximate pattern in which the economic benefits are consumed or straight-line if the pattern was not reliably determinable. Estimated useful lives range from 2 to 40 years and have a weighted average life of approximately 15.9 years.

Our judgments regarding the existence of impairment indicators are based on legal factors, market conditions and operational performance. Future events could cause us to conclude that impairment indicators exist and that assets associated with a particular operation are impaired. Evaluating impairment also requires us to estimate future operating results and cash flows, which also require judgment by management. Any resulting impairment loss could have a material adverse impact on our financial condition and results of operations.

Cloud Computing Arrangements

Cloud Computing Arrangements

We utilize cloud computing arrangements such as hosting arrangements which are service contracts, whereby we gain remote access to use software hosted by the vendor or another third party on an as-needed basis for a period of time in exchange for a subscription fee. Subscription fees are usually prepaid and recorded in operating expense over the related subscription period. Implementation costs for cloud computing arrangements are capitalized within Other current assets or Other noncurrent assets if certain criteria are met and consist of internal and external costs directly attributable to developing and configuring cloud computing software for its intended use. Amortization of capitalized implementation costs is recorded as operating expense on a straight-line basis over the term of the cloud computing arrangement, which is the non-cancellable period of the agreement, together with periods covered by renewal options which we are reasonably certain to exercise. The unamortized implementation costs related to our cloud computing arrangements were $51.7 million, $4.1 million and $1.1 million at September 30, 2023, 2022 and 2021, respectively. The increase in fiscal 2023 was related to our business systems transformation project.
Restructuring and Other Costs, Net

Restructuring and Other Costs, Net

Our restructuring and other costs, net include primarily items such as restructuring portions of our operations, acquisition costs, integration costs and divestiture costs. We have restructured portions of our operations from time to time, have current restructuring initiatives taking place, and it is likely that we will engage in future restructuring activities.

When we close a facility, if necessary, we recognize a write-down to reduce the carrying value of related property, plant and equipment and lease ROU assets to their fair value and record charges for severance and other employee-related costs. We reduce the carrying value of the assets classified as held for sale to their estimated fair value less cost to sell. Any subsequent change in fair value less cost to sell prior to disposition is recognized as it is identified; however, no gain is recognized in excess of the cumulative loss previously recorded unless the actual selling price exceeds the original carrying value upon its ultimate sale. For facility closures, we also generally expect to record costs for equipment relocation, facility carrying costs and costs to terminate a lease or contract before the end of its term.

 

Although specific circumstances vary, our strategy has generally been to consolidate our sales and operations into large well-equipped facilities 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 generally transfer a substantial portion of each closed facility's production to our other facilities. We believe these actions have allowed us to more effectively manage our business.

Identifying and calculating the cost to exit operations requires certain assumptions to be made, the most significant of which are anticipated future liabilities, including severance costs, contractual obligations, and the adjustments of property, plant and equipment and lease ROU assets to their fair value. We believe our estimates are reasonable, considering our knowledge of the industries we operate in, previous experience in exiting activities and valuations we may obtain from independent third parties. Although our estimates have been reasonably accurate in the past, significant judgment is required, and these estimates and assumptions may change as additional information becomes available and facts or circumstances change. See “Note 5. Restructuring and Other Costs, Net” for additional information, including a description of the type of costs incurred.
Business Combinations

Business Combinations

From time to time, we may enter into business combinations. In accordance with ASC 805, “Business Combinations”, we generally recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition. We measure goodwill as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires us to make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities including those related to debt, pensions and other postretirement plans, uncertain tax positions, contingent consideration and contingencies. Significant estimates and assumptions include subjective and/or complex judgments regarding items such as discount rates, customer attrition rates, economic lives and other factors, including estimating future cash flows that we expect to generate from the acquired assets.

The acquisition method of accounting also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required to adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on our financial condition and results of operations. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, we could record future impairment charges. In addition, we have estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If our estimates of the economic lives change, depreciation or amortization expenses could be increased or decreased, or the acquired asset could be impaired.
Fair Value Measurements

Fair Value Measurements

We estimate fair values in accordance with ASC 820 “Fair Value Measurement”. ASC 820 provides a framework for measuring fair value and expands disclosures required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and a hierarchy prioritizing the inputs to valuation techniques. ASC 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Additionally, ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:

•
Level 1 – Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to level 1 inputs.
•
Level 2 – Observable inputs other than quoted prices in active markets.
•
Level 3 – Unobservable inputs for which there is little or no market data available. The fair value hierarchy gives the lowest priority to level 3 inputs.

We incorporate credit valuation adjustments to reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in our fair value measurements.

Financial instruments not recognized at fair value on a recurring or nonrecurring basis include cash and cash equivalents, accounts receivables, 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. The fair values of our long-term debt are estimated using quoted market prices or are based on the discounted value of future cash flows. We disclose the fair value of long-term debt in “Note 14. Debt” and our pension and postretirement assets and liabilities in “Note 6. Retirement Plans”. We have, or from time to time may have, financial instruments recognized at fair value including supplemental retirement savings plans (“Supplemental Plans”) that are nonqualified deferred compensation plans pursuant to which assets are invested primarily in mutual funds, interest rate derivatives, commodity derivatives or other similar class of assets or liabilities, the fair value of which are not significant. We measure the fair value of our mutual fund investments based on quoted prices in active markets. Additionally, we measure our derivative contracts, if any, based on observable inputs such as interest rates, yield curves, spot and future commodity prices, and spot and future exchange rates.

We measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities include equity method investments when they are deemed to be other-than-temporarily impaired, investments for which the fair value measurement alternative is elected, assets acquired and liabilities assumed when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a merger or an acquisition or in a nonmonetary exchange, property, plant and equipment, ROU assets related to operating leases, goodwill and other intangible assets that are written down to fair value when they are held for sale or determined to be impaired. See “Note 5. Restructuring and Other Costs, Net” for impairments associated with restructuring activities. Given the nature of such assets and liabilities, evaluating their fair value from the perspective of a market participant is inherently complex. Assumptions and estimates about future values can be affected by a variety of internal and external factors. Changes in these factors may require us to revise our estimates and could result in future impairment charges for goodwill and acquired intangible assets, or retroactively adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with business combinations. These adjustments could have a material impact on our financial condition and results of operations. We discuss fair values in more detail in “Note 13. Fair Value”.
Derivatives

Derivatives

We are exposed to interest rate risk, commodity price risk and foreign currency exchange risk. To manage these risks, from time to time and to varying degrees, we may enter into a variety of financial derivative transactions and certain physical commodity transactions that are determined to be derivatives. Interest rate swaps may be entered into to manage the interest rate risk associated with a portion of our outstanding debt. Interest rate swaps are either designated for accounting purposes as cash flow hedges of forecasted floating interest payments on variable rate debt or fair value hedges of fixed rate debt, or we may elect not to treat them as accounting hedges. Swaps or forward contracts on certain commodities may be entered into to manage the price risk associated with forecasted purchases or sales of those commodities. In addition, certain commodity financial derivative contracts and physical commodity contracts that are determined to be derivatives may not be designated as accounting hedges because either they do not meet the criteria for treatment as accounting hedges under ASC 815, “Derivatives and Hedging” (“ASC815”), or we elect not to treat them as accounting hedges under ASC 815. Generally, we elect the normal purchase, normal sale scope exception for physical commodity contracts that are determined to be derivatives. We may also enter into forward contracts to manage our exposure to fluctuations in foreign currency rates with respect to transactions denominated in foreign currencies. These also can either be designated for accounting purposes as cash flow hedges or not so designated. Derivative financial instruments are not used for trading or other speculative purposes.

Outstanding financial derivative instruments expose us to credit loss in the event of nonperformance by the counterparties to the derivative agreements. Our credit exposure related to these financial instruments is represented by the fair value of contracts reported as assets. We manage our exposure to counterparty credit risk through minimum credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We may enter into financial derivative contracts that may contain credit-risk-related contingent features

which could result in a counterparty requesting immediate payment or demanding immediate and ongoing full overnight collateralization on derivative instruments in net liability positions.

For financial derivative instruments that are designated as a cash flow hedge for accounting purposes, the entire change in fair value of the financial derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction, and in the same period or periods during which the forecasted transaction affects earnings. For financial derivative instruments that are not designated as accounting hedges, the entire change in fair value of the financial instrument is reported immediately in current period earnings.

We have at times entered into interest rate swap agreements that effectively modified our exposure to interest rate risk by converting a portion of our interest payments on floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. These agreements typically involved the receipt of floating rate amounts in exchange for fixed interest rate payments over the life of the agreements without an exchange of the underlying principal amount.

See “Note 16. Derivatives” for additional information regarding our foreign currency and natural gas commodity derivatives.
Health Insurance

Health Insurance

We are self-insured for the majority of our group health insurance costs. However, we seek to limit our health insurance costs by entering into certain stop loss insurance coverage. Due to mergers, acquisitions and other factors, we may have plans that do not include stop loss insurance. We calculate our group health insurance reserve on an undiscounted basis based on estimated reserve rates. We utilize claims lag data provided by our claims administrators to compute the required estimated reserve rate. We calculate our average monthly claims paid using the actual monthly payments during the trailing 12-month period. At that time, we also calculate our required reserve using the reserve rates discussed above. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our group health insurance costs.
Workers Compensation

Workers’ Compensation

We purchase large risk deductible workers’ compensation policies for the majority of our workers’ compensation liabilities that are subject to various deductibles to limit our exposure. We calculate our workers’ compensation reserves on an undiscounted basis based on estimated actuarially calculated development factors. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our workers' compensation costs.
Income Taxes

Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amount and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. All deferred tax assets and liabilities are classified as noncurrent in our consolidated balance sheet.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial operations and their associated valuation allowances, if any. In the event we were to determine that we would be able to realize or not realize our deferred income tax assets in the future in their net recorded amount, we would make an adjustment to the valuation allowance, which would reduce or increase the provision for income taxes, respectively.

Certain provisions of ASC 740, “Income Taxes” provide that a tax benefit from an uncertain tax position may be recognized when it is “more likely than not” that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. We use significant judgment in (i) determining whether a tax position, based solely on its technical merits, is “more likely than not” to be sustained upon examination and (ii) measuring the tax benefit as the largest amount of benefit that is “more likely than not” to be realized upon ultimate settlement. We do not record any benefit for the tax positions where we do not meet the “more likely than not” initial recognition threshold. Income tax positions must meet a “more likely than not” recognition threshold at the effective date to be recognized. We recognize interest and penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of operations. Resolution of the uncertain tax positions could have a material adverse effect on our cash flows or materially benefit our results of operations in future periods depending upon their ultimate resolution.

On December 22, 2017, the U.S. enacted comprehensive tax legislation, commonly referred to as the Tax Act. As part of the enacted Tax Act, Global Intangible Low Taxed Income (“GILTI”) provisions were introduced that would impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. We have elected to treat any potential GILTI inclusions as a period cost during the year incurred.

On August 16, 2022, the Inflation Reduction Act was signed into law, with tax provisions primarily focused on implementing a 15% minimum tax on global adjusted financial statement income and a 1% excise tax on share repurchases. While we are still evaluating the impact that provisions of the Inflation Reduction Act becoming effective in fiscal 2024 will have on our financial results, we do not believe the impact will be material.
Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

We account for pension and other postretirement benefits in accordance with ASC 715, “Compensation – Retirement Benefits”. Accordingly, we recognize the funded status of our pension plans as assets or liabilities in our consolidated balance sheets. The funded status is the difference between our projected benefit obligations and fair value of plan assets. The determination of our obligation and expense for pension and other postretirement benefits is dependent on our selection of certain assumptions used by actuaries in calculating such amounts. We describe these assumptions in “Note 6. Retirement Plans”, which include, among others, the discount rate, expected long-term rates of return on plan assets and rates of increase in compensation levels. We defer actual results that differ from our assumptions, i.e., actuarial gains and losses, and amortize the difference over future periods. Therefore, these differences generally affect our recognized expense and funding requirements in future periods. Actuarial gains and losses occur when actual experience differs from the estimates used to determine the components of net periodic pension cost and when certain assumptions used to determine the fair value of the plan assets or projected benefit obligation are updated, such as but not limited to, changes in the discount rate, plan amendments, differences between actual and expected returns on plan assets, mortality assumptions and plan remeasurement.

The amount of unrecognized actuarial gains and losses recognized in the current year’s operations is based on amortizing the unrecognized gains or losses for each plan that exceed the larger of 10% of the projected benefit obligation or the fair value of plan assets, also known as “the corridor”. The amount of unrecognized gain or loss that exceeds the corridor is amortized over the average future service of the plan participants or the average life expectancy of inactive plan participants for plans where all or almost all of the plan participants are inactive. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our pension and other postretirement benefit obligations and our future expense.
Share-based Compensation

Share-Based Compensation

We recognize expense for share-based compensation plans based on the estimated fair value of the related awards in accordance with ASC 718, “Compensation – Stock Compensation”. Pursuant to our incentive stock plans, we can grant options, restricted stock, restricted stock units and stock appreciation rights (“SAR” or “SARs”) to employees and non-employee directors. The grants generally vest over a period of up to three years depending on the nature of the award, except for non-employee director grants, which typically vest over a period of up to one year. The majority of our awards are restricted stock units granted to employees and generally contain performance

or market conditions that must be met in conjunction with a service requirement for the shares to vest, others contain only a service requirement. We charge compensation expense under the plan to earnings over each award’s individual vesting period. Forfeitures are estimated based on historical experience. See “Note 22. Share-Based Compensation” for additional information.
Asset Retirement Obligations

Asset Retirement Obligations

We account for asset retirement obligations in accordance with ASC 410, “Asset Retirement and Environmental Obligations”. A liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists and the liability can be reasonably estimated. The liability is accreted over time and the asset is depreciated over the remaining life of the related asset. Upon settlement of the liability, we recognize a gain or loss for any difference between the settlement amount and the liability recorded. We record our asset retirement obligations in Other current liabilities and Other noncurrent liabilities.

Our asset retirement obligations consist primarily of costs related to the closure of manufacturing facilities, and includes captive, non-hazardous solid waste landfills owned and operated by certain of our paper mills. The following table sets forth changes to the asset retirement obligations (in millions):

 

 

2023

 

 

2022

 

Balance at beginning of fiscal year

 

$

96.0

 

 

$

73.6

 

Accretion expense

 

 

3.5

 

 

 

2.7

 

Liabilities incurred

 

 

30.7

 

 

 

25.1

 

Payments

 

 

(4.2

)

 

 

(4.0

)

Revisions in estimated cash flows

 

 

0.8

 

 

 

(1.4

)

Foreign currency rate changes

 

 

0.2

 

 

 

—

 

Balance at end of fiscal year

 

$

127.0

 

 

$

96.0

 

Liabilities incurred for our asset retirement obligations in fiscal 2023 and fiscal 2022 were primarily related to certain manufacturing facility closures for items such as oil and process chemical removal that were previously determined to have an indeterminate settlement date and adjustment to anticipated landfill obligations. See “Note 5. Restructuring and Other Costs, Net” for additional information on mill closures.

Asset retirement obligations with indeterminate settlement dates are not recorded until such time that a reasonable estimate may be made. In the event of future closures, redesigns, or renovations of certain production facilities, it is possible that we may be required to take steps to remove certain materials from these facilities including asbestos and chemicals. Currently, any such obligations have an indeterminate settlement date, and we believe that adequate information does not exist to apply an expected-present-value technique to estimate any such potential obligations. Accordingly, we will recognize a liability for such items in the period in which sufficient information becomes available to reasonably estimate the fair value of these obligations.
Repair and Maintenance Costs

Repair and Maintenance Costs

We expense routine repair and maintenance costs as we incur them. We defer certain expenses we incur during planned major maintenance activities and recognize the expenses ratably over the shorter of the estimated interval until the next major maintenance activity or the life of the deferred item. This maintenance is generally performed every 12 to 24 months and has a significant impact on our results of operations in the period performed primarily due to lost production during the maintenance period. Planned major maintenance costs deferred at September 30, 2023 and 2022 were $140.9 million and $121.8 million, respectively. The assets are recorded as Other noncurrent assets on the consolidated balance sheets.
Foreign Currency

Foreign Currency

We translate the assets and liabilities of our foreign operations from their functional currency into U.S. dollars at the rate of exchange in effect as of the balance sheet date. We reflect the resulting translation adjustments in

equity. We translate the revenues and expenses of our foreign operations at a daily average rate prevailing for each month during the fiscal year. We include gains or losses from foreign currency transactions, such as those resulting from the settlement of foreign receivables or payables, in the consolidated statements of operations within Other (expense) income, net. We recorded a gain on foreign currency transactions of $10.8 million in fiscal 2023, while we recorded a loss on foreign currency transactions of $5.0 million and $0.7 million in fiscal 2022 and 2021, respectively.
Environmental Costs Remediation Costs

Environmental Remediation Costs

We accrue for losses associated with our environmental remediation obligations when it is probable that we have incurred a liability and the amount of the loss can be reasonably estimated. We generally recognize accruals for estimated losses from our environmental remediation obligations no later than completion of a remedial feasibility study and clear indication of remedial options. We adjust such accruals as further information develops or circumstances change. We recognize recoveries of our environmental remediation costs from other parties as assets when we deem their receipt probable. See “Note 19. Commitments and Contingencies — Environmental.”
New Accounting Standards - Recently Adopted and Pending Adoption

New Accounting Standards — Adopted in Fiscal 2023

 

In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance”. This ASU aims to increase the transparency of government assistance through the annual disclosure of the types of assistance, an entity’s accounting for the assistance and the effect of the assistance on an entity’s financial statements. This ASU is effective for annual periods beginning after December 15, 2021 (fiscal 2023 for us), with early adoption permitted. We adopted the provisions of ASU 2021-10 beginning October 1, 2022. The adoption of this ASU did not have a material impact on our consolidated financial statements.

 

In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. This ASU requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. This ASU aims to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), including interim periods therein, with early adoption permitted. We early adopted the provisions of ASU 2021-08 beginning October 1, 2022. The adoption of this ASU did not have a material impact on our consolidated financial statements.

 

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. This ASU provides temporary optional expedients and exceptions for applying GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. In January 2021, the FASB issued ASU 2021-01, which adds implementation guidance to clarify certain optional expedients in Topic 848. The ASUs could be adopted after their respective issuance dates through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. See “Note 14. Debt” for information regarding the amendments to our credit facilities. We adopted the provisions of this optional guidance beginning October 1, 2022. The adoption of these ASUs did not have a material impact on our consolidated financial statements.

 

New Accounting Standards — Pending Adoption in Fiscal 2024

 

In September 2022, the FASB issued ASU 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations”. This ASU requires that all entities that use supplier finance programs in connection with the purchase of goods and services disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), except for the amendment on roll forward information, which is effective for fiscal years

beginning after December 15, 2023 (fiscal 2025 for us), each with early adoption permitted. The adoption of this ASU is not expected to have a material impact on our consolidated financial statements.

 

In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method”. This ASU expands and clarifies the portfolio layer method for fair value hedges of interest rate risk. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), including interim periods therein, with early adoption permitted. The adoption of this ASU is not expected to have a material impact on our consolidated financial statements.

New Accounting Standards - Recently Issued

New Accounting Standards — Recently Issued

 

In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements”. This ASU requires all lessees to amortize leasehold improvements associated with common control leases over their useful life to the common control group and account for them as a transfer of assets between entities under common control at the end of the lease. This update is effective for fiscal years beginning after December 15, 2023 (fiscal 2025 for us), including interim periods therein, with early adoption permitted in any annual or interim period as of the beginning of the related fiscal year. We are evaluating the impact of this ASU.

 

In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. This ASU clarifies that contractual sale restrictions should not be considered in measuring the fair value of equity securities. This ASU is effective for fiscal years beginning after December 15, 2023 (fiscal 2025 for us), including interim periods therein, with early adoption permitted. We are evaluating the impact of this ASU.
v3.23.3
Description of Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Sep. 30, 2023
Description Of Business And Summary Of Significant Accounting Policies [Abstract]  
Schedule of Valuation and Qualifying Accounts Disclosure

The following table represents a summary of the changes in the reserve for allowance for estimated credit impairment losses, returns and allowances, and cash discounts for fiscal 2023, 2022 and 2021 (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of fiscal year

 

$

66.3

 

 

$

68.1

 

 

$

66.3

 

Reduction in sales and charges to costs and expenses

 

 

252.0

 

 

 

261.9

 

 

 

236.5

 

Deductions

 

 

(258.1

)

 

 

(263.7

)

 

 

(234.7

)

Balance at end of fiscal year

 

$

60.2

 

 

$

66.3

 

 

$

68.1

 
Property, Plant and Equipment, Estimated Useful Lives For financial reporting purposes, we provide depreciation and amortization primarily on a straight-line method generally over the estimated useful lives of the assets as follows:

Buildings and building improvements

 

15-40 years

Machinery and equipment

 

3-25 years

Transportation equipment

 

3-8 years

 
The Following Table Sets Forth Changes to The Asset Retirement Obligation Liability The following table sets forth changes to the asset retirement obligations (in millions):

 

 

2023

 

 

2022

 

Balance at beginning of fiscal year

 

$

96.0

 

 

$

73.6

 

Accretion expense

 

 

3.5

 

 

 

2.7

 

Liabilities incurred

 

 

30.7

 

 

 

25.1

 

Payments

 

 

(4.2

)

 

 

(4.0

)

Revisions in estimated cash flows

 

 

0.8

 

 

 

(1.4

)

Foreign currency rate changes

 

 

0.2

 

 

 

—

 

Balance at end of fiscal year

 

$

127.0

 

 

$

96.0

 
v3.23.3
Revenue Recognition (Tables)
 12 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment)

The following tables summarize our disaggregated revenue by primary geographical markets for fiscal 2023, 2022 and 2021 (in millions):

 

 

 

Year Ended September 30, 2023

 

 

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Global Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

U.S.

 

$

7,782.4

 

 

$

2,843.4

 

 

$

3,946.0

 

 

$

1,072.7

 

 

$

(295.6

)

 

$

15,348.9

 

Canada

 

 

554.3

 

 

 

516.1

 

 

 

204.9

 

 

 

11.1

 

 

 

(5.4

)

 

 

1,281.0

 

Latin America

 

 

1,709.5

 

 

 

80.9

 

 

 

129.8

 

 

 

176.9

 

 

 

(15.3

)

 

 

2,081.8

 

EMEA

 

 

8.7

 

 

 

1,201.2

 

 

 

47.2

 

 

 

—

 

 

 

(1.0

)

 

 

1,256.1

 

Asia Pacific

 

 

—

 

 

 

300.2

 

 

 

42.0

 

 

 

—

 

 

 

—

 

 

 

342.2

 

Total

 

$

10,054.9

 

 

$

4,941.8

 

 

$

4,369.9

 

 

$

1,260.7

 

 

$

(317.3

)

 

$

20,310.0

 

 

 

 

Year Ended September 30, 2022

 

 

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Global Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

U.S.

 

$

8,264.7

 

 

$

2,870.9

 

 

$

5,344.8

 

 

$

1,238.3

 

 

$

(357.2

)

 

$

17,361.5

 

Canada

 

 

578.8

 

 

 

510.0

 

 

 

227.7

 

 

 

16.1

 

 

 

(7.5

)

 

 

1,325.1

 

Latin America

 

 

456.4

 

 

 

194.4

 

 

 

230.7

 

 

 

164.5

 

 

 

(0.4

)

 

 

1,045.6

 

EMEA

 

 

7.7

 

 

 

1,079.9

 

 

 

63.2

 

 

 

—

 

 

 

(0.3

)

 

 

1,150.5

 

Asia Pacific

 

 

—

 

 

 

310.0

 

 

 

63.8

 

 

 

—

 

 

 

—

 

 

 

373.8

 

Total

 

$

9,307.6

 

 

$

4,965.2

 

 

$

5,930.2

 

 

$

1,418.9

 

 

$

(365.4

)

 

$

21,256.5

 

 

 

 

Year Ended September 30, 2021

 

 

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Global Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

U.S.

 

$

7,518.8

 

 

$

2,463.7

 

 

$

4,547.7

 

 

$

1,105.9

 

 

$

(318.9

)

 

$

15,317.2

 

Canada

 

 

519.3

 

 

 

473.0

 

 

 

205.2

 

 

 

19.7

 

 

 

(6.8

)

 

 

1,210.4

 

Latin America

 

 

357.3

 

 

 

159.1

 

 

 

100.1

 

 

 

129.2

 

 

 

(0.3

)

 

 

745.4

 

EMEA

 

 

5.1

 

 

 

1,038.2

 

 

 

62.7

 

 

 

—

 

 

 

—

 

 

 

1,106.0

 

Asia Pacific

 

 

—

 

 

 

299.9

 

 

 

67.3

 

 

 

—

 

 

 

(0.1

)

 

 

367.1

 

Total

 

$

8,400.5

 

 

$

4,433.9

 

 

$

4,983.0

 

 

$

1,254.8

 

 

$

(326.1

)

 

$

18,746.1

 
Summary of Opening and Closing Balances of Contract Assets and Contract Liabilities

The opening and closing balances of our contract assets and contract liabilities are as follows. Contract assets and contract liabilities are reported within Other current assets and Other current liabilities, respectively, on the consolidated balance sheets (in millions).

 

 

Contract Assets
(Short-Term)

 

 

Contract Liabilities
(Short-Term)

 

Beginning balance - October 1, 2022

 

$

244.0

 

 

$

13.9

 

Decrease

 

 

(2.3

)

 

 

(0.4

)

Ending balance - September 30, 2023

 

$

241.7

 

 

$

13.5

 
v3.23.3
Acquisitions (Tables)
 12 Months Ended
Sep. 30, 2023
Business Combinations [Abstract]  
Schedule Of Purchase Consideration Transferred

See below for a summary of the purchase consideration transferred as defined under ASC 805 (in millions):

 

 

 

Purchase
Consideration

 

Cash consideration transferred for 67.7% interest

 

$

969.8

 

Fair value of the previously held interest

 

 

403.7

 

Settlement of preexisting relationships (net receivable
   from joint venture)

 

 

40.2

 

Purchase consideration transferred

 

$

1,413.7

 
Summary of Fair Values of Assets Acquired and Liabilities Assumed by Major Class of Assets and Liabilities and Measurement Period Adjustments

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed in the Mexico Acquisition by major class of assets and liabilities as of the acquisition date, as well as adjustments made during fiscal 2023 (referred to as “measurement period adjustments”) (in millions):

 

 

 

Amounts Recognized as of the Acquisition Date

 

 

Measurement Period
 Adjustments (1) (2)

 

 

Amounts Recognized as of Acquisition Date
(as Adjusted)

 

Cash and cash equivalents

 

$

116.3

 

 

$

—

 

 

$

116.3

 

Current assets, excluding cash and cash equivalents

 

 

697.0

 

 

 

(71.2

)

 

 

625.8

 

Property, plant and equipment

 

 

1,380.3

 

 

 

43.0

 

 

 

1,423.3

 

Goodwill

 

 

231.2

 

 

 

6.2

 

 

 

237.4

 

Other noncurrent assets

 

 

101.4

 

 

 

0.6

 

 

 

102.0

 

Total assets acquired

 

 

2,526.2

 

 

 

(21.4

)

 

 

2,504.8

 

 

 

 

 

 

 

 

 

 

 

Current portion of debt (3)

 

 

13.2

 

 

 

—

 

 

 

13.2

 

Current liabilities, excluding debt

 

 

384.8

 

 

 

(50.4

)

 

 

334.4

 

Long-term debt due after one year (3)

 

 

591.4

 

 

 

36.2

 

 

 

627.6

 

Pension liabilities, net of current portion

 

 

35.2

 

 

 

(3.1

)

 

 

32.1

 

Deferred income taxes

 

 

69.8

 

 

 

(4.1

)

 

 

65.7

 

Other noncurrent liabilities

 

 

18.1

 

 

 

—

 

 

 

18.1

 

Total liabilities assumed

 

 

1,112.5

 

 

 

(21.4

)

 

 

1,091.1

 

Net assets acquired

 

$

1,413.7

 

 

$

—

 

 

$

1,413.7

 

 

(1)
The measurement period adjustments recorded in fiscal 2023 did not have a significant impact on our consolidated statements of operations for the year ended September 30, 2023.
(2)
The measurement period adjustments were primarily due to refinements to the carrying amounts of certain assets and liabilities. The net impact of the measurement period adjustments resulted in a net increase in goodwill.
Includes $494.8 million of debt that we assumed and repaid in connection with the closing of the Mexico Acquisition. The remaining balance relates to current and long-term portions of finance leases.
v3.23.3
Restructuring and Other Costs (Tables)
 12 Months Ended
Sep. 30, 2023
Restructuring And Other Costs [Abstract]  
Schedule of Restructuring and Other Costs

The following table summarizes our Restructuring and other costs, net for fiscal 2023, 2022 and 2021 (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Restructuring

 

$

803.9

 

 

$

373.5

 

 

$

27.6

 

Other

 

 

55.3

 

 

 

9.5

 

 

 

3.0

 

Restructuring and other costs, net

 

$

859.2

 

 

$

383.0

 

 

$

30.6

 
Schedule of Restructuring Charges Related to Active Restructuring Initiatives

The following table presents a summary of restructuring charges related to active restructuring initiatives that we incurred during the last three fiscal years, the cumulative recorded amount since we started the initiatives and our estimates of the total charges we expect to incur (in millions). These estimates are subject to a number of assumptions, and actual results may differ.

 

 

 

2023

 

 

2022

 

 

2021

 

 

Cumulative

 

 

Total
Expected

 

Corrugated Packaging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

9.4

 

 

$

(17.8

)

 

$

1.7

 

 

$

13.1

 

 

$

13.1

 

Severance and other employee costs

 

 

10.5

 

 

 

0.5

 

 

 

4.7

 

 

 

20.2

 

 

 

20.4

 

Other restructuring costs

 

 

4.0

 

 

 

2.6

 

 

 

2.9

 

 

 

10.1

 

 

 

27.3

 

Restructuring total

 

$

23.9

 

 

$

(14.7

)

 

$

9.3

 

 

$

43.4

 

 

$

60.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Packaging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

4.3

 

 

$

—

 

 

$

0.5

 

 

$

6.5

 

 

$

6.5

 

Severance and other employee costs

 

 

20.5

 

 

 

6.2

 

 

 

9.7

 

 

 

45.4

 

 

 

46.7

 

Other restructuring costs

 

 

4.1

 

 

 

2.7

 

 

 

3.1

 

 

 

14.3

 

 

 

20.1

 

Restructuring total

 

$

28.9

 

 

$

8.9

 

 

$

13.3

 

 

$

66.2

 

 

$

73.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Paper

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

583.9

 

 

$

348.8

 

 

$

0.2

 

 

$

956.3

 

 

$

956.3

 

Severance and other employee costs

 

 

30.5

 

 

 

11.2

 

 

 

—

 

 

 

42.1

 

 

 

43.8

 

Other restructuring costs

 

 

109.0

 

 

 

8.0

 

 

 

0.1

 

 

 

125.2

 

 

 

259.9

 

Restructuring total

 

$

723.4

 

 

$

368.0

 

 

$

0.3

 

 

$

1,123.6

 

 

$

1,260.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and other employee costs

 

$

1.6

 

 

$

—

 

 

$

—

 

 

$

1.8

 

 

$

1.8

 

Other restructuring costs

 

 

10.0

 

 

 

1.0

 

 

 

—

 

 

 

11.0

 

 

 

13.3

 

Restructuring total

 

$

11.6

 

 

$

1.0

 

 

$

—

 

 

$

12.8

 

 

$

15.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

0.6

 

 

$

2.0

 

 

$

8.8

 

 

$

11.4

 

 

$

11.4

 

Severance and other employee costs

 

 

3.2

 

 

 

3.0

 

 

 

0.9

 

 

 

7.2

 

 

 

7.2

 

Other restructuring costs

 

 

12.3

 

 

 

5.3

 

 

 

(5.0

)

 

 

16.8

 

 

 

22.4

 

Restructuring total

 

$

16.1

 

 

$

10.3

 

 

$

4.7

 

 

$

35.4

 

 

$

41.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP&E and related costs

 

$

598.2

 

 

$

333.0

 

 

$

11.2

 

 

$

987.3

 

 

$

987.3

 

Severance and other employee costs

 

 

66.3

 

 

 

20.9

 

 

 

15.3

 

 

 

116.7

 

 

 

119.9

 

Other restructuring costs

 

 

139.4

 

 

 

19.6

 

 

 

1.1

 

 

 

177.4

 

 

 

343.0

 

Restructuring total

 

$

803.9

 

 

$

373.5

 

 

$

27.6

 

 

$

1,281.4

 

 

$

1,450.2

 
Schedule of Acquisition, Integration and Divestiture Costs

The following table presents acquisition, integration and divestiture costs that we incurred during the last three fiscal years (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Acquisition costs

 

$

26.1

 

 

$

4.4

 

 

$

0.5

 

Integration costs

 

 

9.1

 

 

 

0.7

 

 

 

1.7

 

Divestiture costs

 

 

20.1

 

 

 

4.4

 

 

 

0.8

 

Other total

 

$

55.3

 

 

$

9.5

 

 

$

3.0

 
Schedule of Changes in Restructuring Accrual and Reconciliation of Accrual Charges

The following table summarizes the changes in the restructuring accrual, which is primarily composed of accrued severance and other employee costs, and a reconciliation of the restructuring accrual charges to the line item “Restructuring and other costs, net” on our consolidated statements of operations for the last three fiscal years (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Accrual at beginning of fiscal year

 

$

25.2

 

 

$

13.4

 

 

$

17.2

 

Additional accruals

 

 

70.5

 

 

 

33.4

 

 

 

17.4

 

Payments

 

 

(35.6

)

 

 

(15.9

)

 

 

(17.2

)

Adjustment to accruals

 

 

(4.6

)

 

 

(5.6

)

 

 

(2.1

)

Foreign currency rate changes and other

 

 

—

 

 

 

(0.1

)

 

 

(1.9

)

Accrual at end of fiscal year

 

$

55.5

 

 

$

25.2

 

 

$

13.4

 

 

Reconciliation of accruals and charges to restructuring and other costs, net (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Additional accruals and adjustments to accruals
   (see table above)

 

$

65.9

 

 

$

27.8

 

 

$

15.3

 

PP&E and related costs

 

 

598.2

 

 

 

333.0

 

 

 

11.2

 

Severance and other employee costs

 

 

0.4

 

 

 

0.5

 

 

 

0.3

 

Acquisition costs

 

 

26.1

 

 

 

4.4

 

 

 

0.5

 

Integration costs

 

 

9.1

 

 

 

0.7

 

 

 

1.7

 

Divestiture costs

 

 

20.1

 

 

 

4.4

 

 

 

0.8

 

Other restructuring costs

 

 

139.4

 

 

 

12.2

 

 

 

0.8

 

Total restructuring and other costs, net

 

$

859.2

 

 

$

383.0

 

 

$

30.6

 

 
v3.23.3
Retirement Plans (Tables)
 12 Months Ended
Sep. 30, 2023
Retirement Plans [Abstract]  
Schedule of Allocation of Plan Assets

Our target asset allocations by asset category at September 30 were as follows:

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Equity investments

 

 

18

%

 

 

22

%

 

 

18

%

 

 

23

%

Fixed income investments

 

 

75

%

 

 

74

%

 

 

73

%

 

 

73

%

Short-term investments

 

 

1

%

 

 

1

%

 

 

1

%

 

 

1

%

Other investments

 

 

6

%

 

 

3

%

 

 

8

%

 

 

3

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

Our asset allocations by asset category at September 30 were as follows:

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Equity investments

 

 

15

%

 

 

22

%

 

 

18

%

 

 

21

%

Fixed income investments

 

 

73

%

 

 

70

%

 

 

70

%

 

 

73

%

Short-term investments

 

 

3

%

 

 

3

%

 

 

4

%

 

 

2

%

Other investments

 

 

9

%

 

 

5

%

 

 

8

%

 

 

4

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%
Schedule of Weighted-Average Assumptions Used

The weighted average assumptions used to measure the benefit plan obligations at September 30 were:

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Discount rate

 

 

6.24

%

 

 

5.85

%

 

 

5.63

%

 

 

5.12

%

Interest crediting rate

 

 

4.01

%

 

N/A

 

 

 

3.08

%

 

N/A

 

Rate of compensation increase

 

 

2.50

%

 

 

2.87

%

 

 

2.50

%

 

 

2.97

%

Weighted-average assumptions used in the calculation of benefit plan expense for fiscal years ended:

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

Discount rate

 

 

5.62

%

 

 

5.12

%

 

 

2.99

%

 

 

2.63

%

 

 

3.01

%

 

 

2.16

%

Interest crediting rate

 

 

3.08

%

 

N/A

 

 

 

3.48

%

 

N/A

 

 

 

3.47

%

 

N/A

 

Rate of compensation increase

 

 

2.50

%

 

 

2.97

%

 

 

2.50

%

 

 

2.65

%

 

 

2.50

%

 

 

2.68

%

Expected long-term rate of return on
   plan assets

 

 

6.50

%

 

 

5.08

%

 

 

5.75

%

 

 

3.81

%

 

 

6.00

%

 

 

3.73

%

The weighted average assumptions used to measure the benefit plan obligations at September 30 were:

 

 

 

Postretirement plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
 Plans

 

 

U.S. Plans

 

 

Non-U.S.
 Plans

 

Discount rate

 

 

6.21

%

 

 

8.14

%

 

 

5.57

%

 

 

7.56

%

Weighted-average assumptions used in the calculation of benefit plan expense for fiscal years ended:

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

 

U.S.
Plans

 

 

Non-U.S.
Plans

 

Discount rate

 

 

5.57

%

 

 

7.56

%

 

 

2.98

%

 

 

6.45

%

 

 

3.00

%

 

 

4.84

%

Rate of compensation increase

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

 
Schedule of Changes in Benefit Obligations

The following table shows the changes in benefit obligation, plan assets and funded status for the years ended September 30 (in millions):

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of fiscal year

 

$

3,866.5

 

 

$

935.3

 

 

$

5,239.1

 

 

$

1,438.5

 

Service cost

 

 

22.6

 

 

 

6.6

 

 

 

40.8

 

 

 

7.0

 

Interest cost

 

 

208.7

 

 

 

50.3

 

 

 

152.1

 

 

 

36.1

 

Amendments

 

 

2.0

 

 

 

—

 

 

 

0.3

 

 

 

—

 

Actuarial gain

 

 

(240.8

)

 

 

(59.8

)

 

 

(1,317.1

)

 

 

(340.1

)

Plan participant contributions

 

 

—

 

 

 

1.4

 

 

 

—

 

 

 

1.7

 

Benefits paid

 

 

(270.3

)

 

 

(73.6

)

 

 

(246.9

)

 

 

(77.6

)

Curtailments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.2

 

Settlements

 

 

(0.7

)

 

 

(0.5

)

 

 

(1.8

)

 

 

(2.4

)

Business (divestitures) and acquisitions

 

 

(40.9

)

 

 

34.9

 

 

 

—

 

 

 

—

 

Foreign currency rate changes

 

 

—

 

 

 

43.1

 

 

 

—

 

 

 

(128.1

)

Benefit obligation at end of fiscal year

 

$

3,547.1

 

 

$

937.7

 

 

$

3,866.5

 

 

$

935.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of fiscal year

 

$

4,109.9

 

 

$

929.7

 

 

$

5,627.0

 

 

$

1,455.7

 

Actual gain (loss) on plan assets

 

 

173.3

 

 

 

(15.5

)

 

 

(1,281.4

)

 

 

(322.1

)

Employer contributions

 

 

17.2

 

 

 

11.0

 

 

 

13.0

 

 

 

8.2

 

Plan participant contributions

 

 

—

 

 

 

1.4

 

 

 

—

 

 

 

1.7

 

Benefits paid

 

 

(270.3

)

 

 

(73.6

)

 

 

(246.9

)

 

 

(77.6

)

Settlements

 

 

(0.7

)

 

 

(0.5

)

 

 

(1.8

)

 

 

(2.5

)

Business divestitures

 

 

(32.3

)

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency rate changes

 

 

—

 

 

 

43.5

 

 

 

—

 

 

 

(133.7

)

Fair value of plan assets at end of fiscal year

 

$

3,997.1

 

 

$

896.0

 

 

$

4,109.9

 

 

$

929.7

 

Funded (unfunded) status

 

$

450.0

 

 

$

(41.7

)

 

$

243.4

 

 

$

(5.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the Consolidated Balance
 Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid pension asset

 

$

560.9

 

 

$

57.4

 

 

$

379.1

 

 

$

61.2

 

Other current liabilities

 

 

(11.1

)

 

 

(7.7

)

 

 

(11.7

)

 

 

(1.4

)

Pension liabilities, net of current portion

 

 

(99.8

)

 

 

(91.4

)

 

 

(124.0

)

 

 

(65.4

)

Over (under) funded status at end of fiscal year

 

$

450.0

 

 

$

(41.7

)

 

$

243.4

 

 

$

(5.6

)

The following table shows the changes in benefit obligation, plan assets and funded status for the fiscal years ended September 30 (in millions):

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of fiscal year

 

$

68.5

 

 

$

48.3

 

 

$

86.4

 

 

$

58.3

 

Service cost

 

 

0.5

 

 

 

0.3

 

 

 

0.6

 

 

 

0.4

 

Interest cost

 

 

3.5

 

 

 

3.7

 

 

 

2.6

 

 

 

3.8

 

Actuarial gain

 

 

(7.2

)

 

 

(1.0

)

 

 

(16.3

)

 

 

(9.8

)

Benefits paid

 

 

(5.9

)

 

 

(2.8

)

 

 

(4.8

)

 

 

(2.8

)

Curtailments

 

 

(0.1

)

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency rate changes

 

 

—

 

 

 

2.1

 

 

 

—

 

 

 

(1.6

)

Benefit obligation at end of fiscal year

 

$

59.3

 

 

$

50.6

 

 

$

68.5

 

 

$

48.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of fiscal year

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Employer contributions

 

 

5.9

 

 

 

2.8

 

 

 

4.8

 

 

 

2.8

 

Benefits paid

 

 

(5.9

)

 

 

(2.8

)

 

 

(4.8

)

 

 

(2.8

)

Fair value of plan assets at end of fiscal year

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Underfunded Status

 

$

(59.3

)

 

$

(50.6

)

 

$

(68.5

)

 

$

(48.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the Consolidated Balance
 Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

(7.9

)

 

$

(2.9

)

 

$

(8.7

)

 

$

(2.7

)

Postretirement benefit liabilities, net of current portion

 

 

(51.4

)

 

 

(47.7

)

 

 

(59.8

)

 

 

(45.6

)

Underfunded status at end of fiscal year

 

$

(59.3

)

 

$

(50.6

)

 

$

(68.5

)

 

$

(48.3

)
Schedule of Accumulated and Projected Benefit Obligations

The pre-tax amounts in accumulated other comprehensive loss at September 30 not yet recognized as components of net periodic pension cost, including noncontrolling interest, consist of (in millions):

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

 

U.S. Plans

 

 

Non-U.S.
Plans

 

Net actuarial loss

 

$

632.2

 

 

$

149.7

 

 

$

849.8

 

 

$

155.6

 

Prior service cost

 

 

27.9

 

 

 

1.6

 

 

 

34.6

 

 

 

1.8

 

Total accumulated other comprehensive loss

 

$

660.1

 

 

$

151.3

 

 

$

884.4

 

 

$

157.4

 

The pre-tax amounts in accumulated other comprehensive loss at September 30 not yet recognized as components of net periodic postretirement cost, including noncontrolling interest, consist of (in millions):

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Net actuarial gain

 

$

(35.7

)

 

$

(5.0

)

 

$

(32.2

)

 

$

(4.8

)

Prior service (credit) cost

 

 

(1.4

)

 

 

0.8

 

 

 

(2.3

)

 

 

1.0

 

Total accumulated other comprehensive income

 

$

(37.1

)

 

$

(4.2

)

 

$

(34.5

)

 

$

(3.8

)

 
Schedule of Amounts Recognized in Other Comprehensive (Income) Loss

The pre-tax amounts recognized in other comprehensive (income) loss, including noncontrolling interest, are as follows at September 30 (in millions):

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

2021

 

Net actuarial (gain) loss arising during period

 

$

(153.3

)

 

$

315.3

 

 

$

(208.0

)

Amortization and settlement recognition of net actuarial loss

 

 

(58.1

)

 

 

(8.9

)

 

 

(34.5

)

Prior service cost arising during period

 

 

2.0

 

 

 

0.2

 

 

 

5.6

 

Amortization of prior service cost

 

 

(8.2

)

 

 

(8.9

)

 

 

(8.4

)

Net other comprehensive (income) loss recognized

 

$

(217.6

)

 

$

297.7

 

 

$

(245.3

)

The pre-tax amounts recognized in other comprehensive (income) loss, including noncontrolling interest, are as follows at September 30 (in millions):

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

2021

 

Net actuarial gain arising during period

 

$

(8.3

)

 

$

(26.2

)

 

$

(14.2

)

Amortization and settlement recognition of net actuarial gain

 

 

4.6

 

 

 

0.5

 

 

 

0.6

 

Amortization or curtailment recognition of prior service credit

 

 

0.6

 

 

 

0.7

 

 

 

2.4

 

Net other comprehensive income recognized

 

$

(3.1

)

 

$

(25.0

)

 

$

(11.2

)
Summary of Components of Net Pension Cost (Income) and Summary of Components of Postretirement Benefit Cost

The net periodic pension cost (income) recognized in the consolidated statements of operations is comprised of the following for fiscal years ended (in millions):

 

 

 

Pension Plans

 

 

 

2023

 

 

2022

 

 

2021

 

Service cost

 

$

29.2

 

 

$

47.8

 

 

$

51.1

 

Interest cost

 

 

259.0

 

 

 

188.2

 

 

 

187.3

 

Expected return on plan assets

 

 

(305.2

)

 

 

(368.6

)

 

 

(368.1

)

Amortization of net actuarial loss

 

 

57.9

 

 

 

8.8

 

 

 

34.2

 

Amortization of prior service cost

 

 

8.2

 

 

 

8.4

 

 

 

8.4

 

Curtailment loss

 

 

—

 

 

 

0.5

 

 

 

—

 

Settlement loss

 

 

—

 

 

 

0.1

 

 

 

0.4

 

Company defined benefit plan cost (income)

 

 

49.1

 

 

 

(114.8

)

 

 

(86.7

)

Multiemployer and other plans

 

 

1.5

 

 

 

1.5

 

 

 

1.6

 

Net pension cost (income)

 

$

50.6

 

 

$

(113.3

)

 

$

(85.1

)

The net periodic postretirement cost recognized in the consolidated statements of operations is comprised of the following for fiscal years ended (in millions):

 

 

 

Postretirement Plans

 

 

 

2023

 

 

2022

 

 

2021

 

Service cost

 

$

0.8

 

 

$

1.0

 

 

$

1.2

 

Interest cost

 

 

7.2

 

 

 

6.4

 

 

 

5.9

 

Amortization of net actuarial gain

 

 

(4.6

)

 

 

(0.5

)

 

 

(0.6

)

Amortization of prior service credit

 

 

(0.6

)

 

 

(0.7

)

 

 

(2.4

)

Curtailment gain

 

 

(0.1

)

 

 

—

 

 

 

—

 

Net postretirement cost

 

$

2.7

 

 

$

6.2

 

 

$

4.1

 
Schedule of Estimated Benefit Payments

Our projected estimated benefit payments (unaudited), which reflect expected future service, as appropriate, are as follows (in millions):

 

 

 

Pension Plans

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Fiscal 2024

 

$

273.0

 

 

$

93.2

 

Fiscal 2025

 

$

277.2

 

 

$

72.5

 

Fiscal 2026

 

$

283.1

 

 

$

72.4

 

Fiscal 2027

 

$

286.4

 

 

$

72.6

 

Fiscal 2028

 

$

280.3

 

 

$

72.5

 

Fiscal Years 2029 – 2033

 

$

1,415.0

 

 

$

366.8

 

Our projected estimated benefit payments (unaudited), which reflect expected future service, as appropriate, are as follows (in millions):

 

 

 

Postretirement Plans

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Fiscal 2024

 

$

7.9

 

 

$

2.9

 

Fiscal 2025

 

$

6.9

 

 

$

3.1

 

Fiscal 2026

 

$

6.4

 

 

$

3.2

 

Fiscal 2027

 

$

5.9

 

 

$

3.2

 

Fiscal 2028

 

$

5.6

 

 

$

3.3

 

Fiscal Years 2029 – 2033

 

$

24.2

 

 

$

18.2

 
Summary of Pension Plan Assets Measured at Fair Value on Recurring Basis

The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2023 (in millions):

 

 

 

Total

 

 

Quoted Prices
in Active
Markets for
Identical
Assets (Level 1)

 

 

Significant
Other
Observable
Inputs (Level 2)

 

Equity securities:

 

 

 

 

 

 

 

 

 

U.S. equities (1)

 

$

466.1

 

 

$

466.1

 

 

$

—

 

Non-U.S. equities (1)

 

 

235.4

 

 

 

235.4

 

 

 

—

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

U.S. government securities (2)

 

 

170.6

 

 

 

—

 

 

 

170.6

 

Non-U.S. government securities (3)

 

 

48.1

 

 

 

—

 

 

 

48.1

 

U.S. corporate bonds (3)

 

 

2,301.0

 

 

 

194.9

 

 

 

2,106.1

 

Non-U.S. corporate bonds (3)

 

 

503.4

 

 

 

—

 

 

 

503.4

 

Other fixed income (4)

 

 

208.2

 

 

 

—

 

 

 

208.2

 

Short-term investments (5)

 

 

166.8

 

 

 

166.8

 

 

 

—

 

Benefit plan assets measured in the fair value hierarchy

 

$

4,099.6

 

 

$

1,063.2

 

 

$

3,036.4

 

Assets measured at NAV (6)

 

 

793.5

 

 

 

 

 

 

 

Total benefit plan assets

 

$

4,893.1

 

 

 

 

 

 

 

 

 

The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2022 (in millions):

 

 

 

Total

 

 

Quoted Prices
in Active
Markets for
Identical
Assets (Level 1)

 

 

Significant
Other
Observable
Inputs (Level 2)

 

Equity securities:

 

 

 

 

 

 

 

 

 

U.S. equities (1)

 

$

150.7

 

 

$

150.7

 

 

$

—

 

Non-U.S. equities (1)

 

 

85.9

 

 

 

85.9

 

 

 

—

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

U.S. government securities (2)

 

 

164.3

 

 

 

—

 

 

 

164.3

 

Non-U.S. government securities (3)

 

 

74.5

 

 

 

—

 

 

 

74.5

 

U.S. corporate bonds (3)

 

 

2,173.7

 

 

 

95.4

 

 

 

2,078.3

 

Non-U.S. corporate bonds (3)

 

 

545.0

 

 

 

—

 

 

 

545.0

 

Other fixed income (4)

 

 

223.1

 

 

 

—

 

 

 

223.1

 

Short-term investments (5)

 

 

181.9

 

 

 

181.9

 

 

 

—

 

Benefit plan assets measured in the fair value hierarchy

 

$

3,599.1

 

 

$

513.9

 

 

$

3,085.2

 

Assets measured at NAV (6)

 

 

1,440.5

 

 

 

 

 

 

 

Total benefit plan assets

 

$

5,039.6

 

 

 

 

 

 

 

 

(1)
Equity securities are comprised of the following investment types: (i) common stock, (ii) preferred stock, and (iii) equity exchange traded funds. Level 1 investments in common and preferred stocks and exchange traded funds are valued using quoted market prices multiplied by the number of shares owned.
(2)
U.S. government securities include treasury and agency debt. These investments are valued using broker quotes in an active market.
(3)
The level 1 non-U.S. government securities investment is an exchange cleared swap valued using quoted market prices. The level 1 U.S. corporate bonds category is primarily comprised of U.S. dollar denominated investment grade securities and valued using quoted market prices. Level 2 investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data.
(4)
Other fixed income is comprised of municipal and asset-backed securities. Investments are valued utilizing a market approach that includes various valuation techniques and sources, such as broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads and/or other applicable reference data.
(5)
Short-term investments are valued at $1.00/unit, which approximates fair value. Amounts are generally invested in interest-bearing accounts.
(6)
Investments that are measured at net asset value (“NAV”) (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.
Summary of Assets Measured at Fair Value Based on NAV Per Share

The following table summarizes assets measured at fair value based on NAV per share as a practical expedient as of September 30, 2023 and 2022 (in millions):

 

 

 

Fair value

 

 

Redemption
Frequency

 

Redemption
Notice Period

 

Unfunded
Commitments

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

Hedge funds (1)

 

$

42.7

 

 

Monthly

 

Up to 30 days

 

$

—

 

Commingled funds, private equity, private real
   estate investments, and equity related
   investments (2)

 

 

385.5

 

 

Various

 

N/A

 

 

206.3

 

Fixed income and fixed income related
   instruments (3)

 

 

365.3

 

 

Monthly

 

Up to 10 days

 

 

—

 

 

 

$

793.5

 

 

 

 

 

 

$

206.3

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

Hedge funds (1)

 

$

26.4

 

 

Monthly

 

Up to 30 days

 

$

—

 

Commingled funds, private equity, private real
   estate investments, and equity related
   investments (2)

 

 

1,031.9

 

 

Various

 

Up to 60 days

 

 

199.7

 

Fixed income and fixed income related
   instruments (3)

 

 

382.2

 

 

Monthly

 

Up to 10 days

 

 

—

 

 

 

$

1,440.5

 

 

 

 

 

 

$

199.7

 

 

(1)
Hedge fund investments are primarily made through shares of limited partnerships or similar structures. Hedge funds are typically valued monthly by third-party administrators that have been appointed by the funds’ general partners.

 

(2)
Commingled fund investments are valued at the NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques. The redemption frequency is reflected as various and the redemption notice period at September 30, 2023 is not applicable because certain investments do not allow redemptions until the investments are terminated or closed.

 

 

(3)
Fixed income and fixed income related instruments consist of commingled debt funds, which are valued at their NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques.
Schedule of Health Care Cost Trend Rates

The assumed health care cost trend rates used in measuring the accumulated postretirement benefit obligation are as follows at September 30, 2023:

 

U.S. Plans

 

 

 

Health care cost trend rate assumed for next year

 

 

4.97

%

Rate to which the cost trend rate is assumed to decline (the ultimate
   trend rate)

 

 

4.00

%

Year the rate reaches the ultimate trend rate

 

2047

 

 

 

 

 

Non-U.S. Plans

 

 

 

Health care cost trend rate assumed for next year

 

 

5.88

%

Rate to which the cost trend rate is assumed to decline (the ultimate
   trend rate)

 

 

5.88

%

Year the rate reaches the ultimate trend rate

 

2023

 
v3.23.3
Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of (Loss) Income Before Income Taxes

The components of (loss) income before income taxes are as follows (in millions):

 

 

 

Year Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

United States

 

$

(1,586.3

)

 

$

860.4

 

 

$

822.4

 

Foreign

 

 

(118.3

)

 

 

358.4

 

 

 

263.5

 

(Loss) income before income taxes

 

$

(1,704.6

)

 

$

1,218.8

 

 

$

1,085.9

 

 
Schedule of Components of Income Tax (Benefit) Expense

Income tax (benefit) expense consists of the following components (in millions):

 

 

 

Year Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Current income taxes:

 

 

 

 

 

 

 

 

 

Federal

 

$

250.6

 

 

$

205.2

 

 

$

171.2

 

State

 

 

49.1

 

 

 

44.9

 

 

 

27.2

 

Foreign

 

 

115.1

 

 

 

116.1

 

 

 

78.4

 

Total current expense

 

 

414.8

 

 

 

366.2

 

 

 

276.8

 

Deferred income taxes:

 

 

 

 

 

 

 

 

 

Federal

 

 

(364.8

)

 

 

(67.3

)

 

 

(39.0

)

State

 

 

(57.5

)

 

 

(16.2

)

 

 

(10.2

)

Foreign

 

 

(52.9

)

 

 

(13.1

)

 

 

15.8

 

Total deferred benefit

 

 

(475.2

)

 

 

(96.6

)

 

 

(33.4

)

Total income tax (benefit) expense

 

$

(60.4

)

 

$

269.6

 

 

$

243.4

 
Schedule of Effective Income Tax Rate Reconciliation

The differences between the statutory federal income tax rate and our effective income tax rate are as follows:

 

 

 

Year Ended September 30,

 

 

 

2023 (1)

 

 

2022

 

 

2021

 

Statutory federal tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

Foreign rate differential

 

 

1.0

 

 

 

2.1

 

 

 

0.9

 

Adjustment and resolution of federal, state and foreign tax
   uncertainties

 

 

0.2

 

 

 

(0.4

)

 

 

0.1

 

State taxes, net of federal benefit

 

 

0.9

 

 

 

1.6

 

 

 

2.0

 

Excess tax benefit related to stock compensation

 

 

(0.2

)

 

 

0.1

 

 

 

0.2

 

Research and development and other tax credits, net of
   reserves

 

 

0.5

 

 

 

(1.2

)

 

 

(0.5

)

Income (loss) attributable to noncontrolling interest

 

 

0.1

 

 

 

(0.1

)

 

 

0.1

 

Change in valuation allowance

 

 

(0.9

)

 

 

0.7

 

 

 

2.8

 

Goodwill impairment

 

 

(20.2

)

 

 

—

 

 

 

—

 

Nontaxable increased cash surrender value

 

 

0.5

 

 

 

—

 

 

 

(1.1

)

Withholding taxes

 

 

(0.1

)

 

 

0.5

 

 

 

0.2

 

Foreign derived intangible income

 

 

0.7

 

 

 

(1.0

)

 

 

(1.2

)

Deferred rate change

 

 

0.2

 

 

 

(0.6

)

 

 

(1.0

)

Brazilian net worth deduction

 

 

—

 

 

 

(1.1

)

 

 

(0.7

)

Other, net

 

 

(0.2

)

 

 

0.5

 

 

 

(0.4

)

Effective tax rate

 

 

3.5

%

 

 

22.1

%

 

 

22.4

%

 

(1)
Certain signs within the table in fiscal 2023 are the opposite compared to fiscal 2022 and 2021 as a result of applying each line’s total income tax benefit or expense to the loss before income taxes.
Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred income tax assets and liabilities consist of the following (in millions):

 

 

September 30,

 

 

 

2023

 

 

2022

 

Deferred income tax assets:

 

 

 

 

 

 

Accruals and allowances

 

$

14.9

 

 

$

—

 

Employee related accruals and allowances

 

 

109.2

 

 

 

107.6

 

State net operating loss carryforwards, net of federal benefit

 

 

36.6

 

 

 

43.6

 

State credit carryforwards, net of federal benefit

 

 

89.3

 

 

 

89.7

 

Federal and foreign net operating loss carryforwards

 

 

186.5

 

 

 

165.8

 

Restricted stock and options

 

 

23.4

 

 

 

26.7

 

Lease liabilities

 

 

177.3

 

 

 

177.4

 

Capitalized research and experimental costs

 

 

79.8

 

 

 

—

 

Other

 

 

69.6

 

 

 

44.6

 

Total

 

 

786.6

 

 

 

655.4

 

Deferred income tax liabilities:

 

 

 

 

 

 

Accruals and allowances

 

 

—

 

 

 

9.0

 

Property, plant and equipment

 

 

1,532.4

 

 

 

1,669.5

 

Deductible intangibles and goodwill

 

 

596.5

 

 

 

724.1

 

Inventory reserves

 

 

231.9

 

 

 

261.4

 

Deferred gain

 

 

272.5

 

 

 

272.8

 

Basis difference in joint ventures

 

 

4.5

 

 

 

35.9

 

Pension

 

 

48.8

 

 

 

2.7

 

Right-of-use assets

 

 

161.0

 

 

 

166.1

 

Total

 

 

2,847.6

 

 

 

3,141.5

 

Valuation allowances

 

 

271.9

 

 

 

248.8

 

Net deferred income tax liability

 

$

2,332.9

 

 

$

2,734.9

 
Location Of Deferred Taxes In Balance Sheet

Deferred taxes are recorded as follows in the consolidated balance sheets (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Long-term deferred tax asset (1)

 

$

100.3

 

 

$

27.0

 

Long-term deferred tax liability

 

 

2,433.2

 

 

 

2,761.9

 

Net deferred income tax liability

 

$

2,332.9

 

 

$

2,734.9

 

 

(1)
The long-term deferred tax asset is presented in Other noncurrent assets on the consolidated balance sheets.
Summary of Valuation Allowance

The following table represents a summary of the valuation allowances against deferred tax assets for fiscal 2023, 2022 and 2021 (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of fiscal year

 

$

248.8

 

 

$

277.5

 

 

$

257.5

 

Increases

 

 

29.0

 

 

 

12.3

 

 

 

22.2

 

Reductions

 

 

(5.9

)

 

 

(41.0

)

 

 

(2.2

)

Balance at end of fiscal year

 

$

271.9

 

 

$

248.8

 

 

$

277.5

 
Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of fiscal year

 

$

195.5

 

 

$

199.5

 

 

$

206.7

 

Additions for tax positions taken in current year

 

 

4.5

 

 

 

1.8

 

 

 

2.7

 

Additions for tax positions taken in prior fiscal years

 

 

14.2

 

 

 

27.6

 

 

 

10.8

 

Reclassification to unrecognized tax benefit (1)

 

 

221.9

 

 

 

—

 

 

 

—

 

Reductions for tax positions taken in prior fiscal years

 

 

(1.3

)

 

 

—

 

 

 

—

 

Reductions due to settlement

 

 

(2.5

)

 

 

(0.8

)

 

 

—

 

Additions (reductions) for currency translation adjustments

 

 

2.4

 

 

 

(1.1

)

 

 

1.5

 

Reductions as a result of a lapse of the applicable statute of
   limitations

 

 

(29.6

)

 

 

(31.5

)

 

 

(22.2

)

Balance at end of fiscal year

 

$

405.1

 

 

$

195.5

 

 

$

199.5

 

 

(1)
During the fourth quarter of fiscal 2023, we undertook certain internal transactions to bring the legal entity that acquired Grupo Gondi into the affiliated group of companies electing to file a U.S. consolidated federal income tax return. As a result of those transactions and in accordance with the requirements of ASC 740, we recorded an addition for gross unrecognized tax benefits of $221.9 million related to the deferred gain on Timber Notes (as hereinafter defined). See “Note 17. Special Purpose Entities” for additional information.
v3.23.3
Segment Information (Tables)
 12 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers, Segment Income and Long-Lived Assets, by Geographical Areas

Some of our operations are in locations such as Canada, Latin America, EMEA and Asia Pacific. The table below reflects financial data of our foreign operations for each of the past three fiscal years, some of which were transacted in U.S. dollars (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Net sales (unaffiliated customers):

 

U.S.

 

$

15,348.9

 

 

$

17,361.5

 

 

$

15,317.2

 

Canada

 

 

1,281.0

 

 

 

1,325.1

 

 

 

1,210.4

 

Latin America

 

 

2,081.8

 

 

 

1,045.6

 

 

 

745.4

 

EMEA

 

 

1,256.1

 

 

 

1,150.5

 

 

 

1,106.0

 

Asia Pacific

 

 

342.2

 

 

 

373.8

 

 

 

367.1

 

Total

 

$

20,310.0

 

 

$

21,256.5

 

 

$

18,746.1

 

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Long-lived assets:

 

U.S.

 

$

8,598.6

 

 

$

9,278.2

 

 

$

9,654.6

 

Canada

 

 

389.7

 

 

 

391.4

 

 

 

413.0

 

Latin America (1)

 

 

2,283.6

 

 

 

719.0

 

 

 

725.8

 

EMEA

 

 

376.7

 

 

 

320.4

 

 

 

364.9

 

Asia Pacific

 

 

63.1

 

 

 

72.0

 

 

 

87.8

 

Total

 

$

11,711.7

 

 

$

10,781.0

 

 

$

11,246.1

 

 

(1)
Includes operations in Mexico that are approximately 13.4% of total long-lived assets in fiscal 2023 following the Mexico Acquisition.
Certain Financial Data for Segments

The following tables show selected financial data for our segments (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Net sales (aggregate):

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

10,054.9

 

 

$

9,307.6

 

 

$

8,400.5

 

Consumer Packaging

 

 

4,941.8

 

 

 

4,965.2

 

 

 

4,433.9

 

Global Paper

 

 

4,369.9

 

 

 

5,930.2

 

 

 

4,983.0

 

Distribution

 

 

1,260.7

 

 

 

1,418.9

 

 

 

1,254.8

 

Total

 

$

20,627.3

 

 

$

21,621.9

 

 

$

19,072.2

 

Less net sales (intersegment):

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

280.3

 

 

$

328.0

 

 

$

305.3

 

Consumer Packaging

 

 

30.7

 

 

 

27.8

 

 

 

20.3

 

Distribution

 

 

6.3

 

 

 

9.6

 

 

 

0.5

 

Total

 

$

317.3

 

 

$

365.4

 

 

$

326.1

 

Net sales (unaffiliated customers):

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

9,774.6

 

 

$

8,979.6

 

 

$

8,095.2

 

Consumer Packaging

 

 

4,911.1

 

 

 

4,937.4

 

 

 

4,413.6

 

Global Paper

 

 

4,369.9

 

 

 

5,930.2

 

 

 

4,983.0

 

Distribution

 

 

1,254.4

 

 

 

1,409.3

 

 

 

1,254.3

 

Total

 

$

20,310.0

 

 

$

21,256.5

 

 

$

18,746.1

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

1,600.4

 

 

$

1,386.7

 

 

$

1,394.0

 

Consumer Packaging

 

 

835.7

 

 

 

829.2

 

 

 

720.8

 

Global Paper

 

 

655.0

 

 

 

1,246.4

 

 

 

883.7

 

Distribution

 

 

37.0

 

 

 

79.7

 

 

 

68.8

 

Total

 

 

3,128.1

 

 

 

3,542.0

 

 

 

3,067.3

 

Depreciation, depletion and amortization

 

 

(1,535.8

)

 

 

(1,488.6

)

 

 

(1,460.0

)

Multiemployer pension withdrawal income (expense)

 

 

12.1

 

 

 

(0.2

)

 

 

2.9

 

Restructuring and other costs, net

 

 

(859.2

)

 

 

(383.0

)

 

 

(30.6

)

Impairment of goodwill and other assets

 

 

(1,893.0

)

 

 

(26.0

)

 

 

—

 

Non-allocated expenses

 

 

(149.5

)

 

 

(82.6

)

 

 

(68.1

)

Interest expense, net

 

 

(417.9

)

 

 

(318.8

)

 

 

(372.3

)

Gain (loss) on extinguishment of debt

 

 

10.5

 

 

 

(8.5

)

 

 

(9.7

)

Other (expense) income, net

 

 

(6.1

)

 

 

(11.0

)

 

 

10.9

 

Gain on sale of RTS and Chattanooga

 

 

238.8

 

 

 

—

 

 

 

—

 

Other adjustments

 

 

(232.6

)

 

 

(4.5

)

 

 

(54.5

)

(Loss) income before income taxes

 

$

(1,704.6

)

 

$

1,218.8

 

 

$

1,085.9

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

813.3

 

 

$

683.0

 

 

$

674.5

 

Consumer Packaging

 

 

339.1

 

 

 

349.5

 

 

 

352.2

 

Global Paper

 

 

350.7

 

 

 

425.1

 

 

 

405.9

 

Distribution

 

 

28.0

 

 

 

27.3

 

 

 

23.6

 

Corporate

 

 

4.7

 

 

 

3.7

 

 

 

3.8

 

Total

 

$

1,535.8

 

 

$

1,488.6

 

 

$

1,460.0

 

 

 

 

 

 

 

 

 

 

 

Other adjustments:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

39.5

 

 

$

(4.8

)

 

$

13.3

 

Consumer Packaging

 

 

60.4

 

 

 

7.7

 

 

 

11.7

 

Global Paper

 

 

52.8

 

 

 

(0.6

)

 

 

3.3

 

Distribution

 

 

0.2

 

 

 

—

 

 

 

0.6

 

Corporate

 

 

79.7

 

 

 

2.2

 

 

 

25.6

 

Total

 

$

232.6

 

 

$

4.5

 

 

$

54.5

 

 

 

 

 

 

 

 

 

 

 

Equity in income of unconsolidated entities:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

(4.9

)

 

$

70.3

 

 

$

36.7

 

Consumer Packaging

 

 

—

 

 

 

3.4

 

 

 

4.0

 

Global Paper

 

 

8.3

 

 

 

(0.8

)

 

 

0.2

 

Total

 

$

3.4

 

 

$

72.9

 

 

$

40.9

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Assets:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

12,514.8

 

 

$

11,382.5

 

 

$

11,557.6

 

Consumer Packaging

 

 

6,393.4

 

 

 

6,704.5

 

 

 

6,757.3

 

Global Paper

 

 

5,019.3

 

 

 

7,039.2

 

 

 

7,527.6

 

Distribution

 

 

797.8

 

 

 

863.0

 

 

 

800.1

 

Assets held for sale

 

 

91.5

 

 

 

34.4

 

 

 

10.9

 

Corporate

 

 

2,626.9

 

 

 

2,381.9

 

 

 

2,600.8

 

Total

 

$

27,443.7

 

 

$

28,405.5

 

 

$

29,254.3

 

 

 

 

 

 

 

 

 

 

 

Intangibles, net:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

544.4

 

 

$

648.4

 

 

$

765.9

 

Consumer Packaging

 

 

1,381.1

 

 

 

1,523.5

 

 

 

1,719.2

 

Global Paper

 

 

534.5

 

 

 

612.6

 

 

 

677.7

 

Distribution

 

 

116.2

 

 

 

136.1

 

 

 

156.0

 

Total

 

$

2,576.2

 

 

$

2,920.6

 

 

$

3,318.8

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

470.7

 

 

$

370.4

 

 

$

331.4

 

Consumer Packaging

 

 

293.7

 

 

 

202.1

 

 

 

192.7

 

Global Paper

 

 

282.4

 

 

 

238.6

 

 

 

259.4

 

Distribution

 

 

9.4

 

 

 

6.1

 

 

 

1.3

 

Corporate

 

 

85.9

 

 

 

45.4

 

 

 

30.7

 

Total

 

$

1,142.1

 

 

$

862.6

 

 

$

815.5

 

 

 

 

 

 

 

 

 

 

 

Equity method investments:

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

44.5

 

 

$

479.3

 

 

$

434.4

 

Consumer Packaging

 

 

0.7

 

 

 

0.5

 

 

 

17.7

 

Global Paper

 

 

—

 

 

 

0.5

 

 

 

0.8

 

Corporate

 

 

0.1

 

 

 

0.1

 

 

 

0.4

 

Total

 

$

45.3

 

 

$

480.4

 

 

$

453.3

 
Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the fiscal years ended September 30, 2023, 2022 and 2021 are as follows (in millions):

 

 

 

Legacy Reportable Segments

 

 

New Reportable Segments

 

 

 

 

 

 

Corrugated
Packaging

 

 

Consumer
Packaging

 

 

Corrugated
Packaging

 

 

Consumer
Packaging

 

 

Global Paper

 

 

Distribution

 

 

Total

 

Balance as of Sep. 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

3,673.6

 

 

$

3,664.6

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

7,338.2

 

Accumulated impairment
  losses

 

 

(0.1

)

 

 

(1,375.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,376.0

)

 

 

$

3,673.5

 

 

$

2,288.7

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,962.2

 

Goodwill disposed of

 

 

(16.4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(16.4

)

Translation adjustments

 

 

6.2

 

 

 

7.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13.4

 

Balance as of Sep. 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

3,663.4

 

 

 

3,671.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,335.2

 

Accumulated impairment
  losses

 

 

(0.1

)

 

 

(1,375.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,376.0

)

 

 

 

3,663.3

 

 

 

2,295.9

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,959.2

 

Segment recasting (1)

 

 

(3,663.3

)

 

 

(2,295.9

)

 

 

2,834.8

 

 

 

1,603.3

 

 

 

1,382.0

 

 

 

139.1

 

 

 

—

 

Goodwill acquired

 

 

—

 

 

 

—

 

 

 

3.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.2

 

Translation adjustments

 

 

—

 

 

 

—

 

 

 

(35.2

)

 

 

(14.9

)

 

 

(15.5

)

 

 

(1.6

)

 

 

(67.2

)

Balance as of Sep. 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

—

 

 

 

—

 

 

 

2,802.8

 

 

 

1,588.4

 

 

 

1,366.5

 

 

 

137.5

 

 

 

5,895.2

 

Accumulated impairment
  losses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

2,802.8

 

 

 

1,588.4

 

 

 

1,366.5

 

 

 

137.5

 

 

 

5,895.2

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

(514.3

)

 

 

—

 

 

 

(1,378.7

)

 

 

—

 

 

 

(1,893.0

)

Goodwill acquired

 

 

—

 

 

 

—

 

 

 

237.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

237.4

 

Divestitures

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(43.0

)

 

 

(4.1

)

 

 

—

 

 

 

(47.1

)

Translation and other
  adjustments

 

 

—

 

 

 

—

 

 

 

77.8

 

 

 

(38.8

)

 

 

16.3

 

 

 

0.9

 

 

 

56.2

 

Balance as of Sep. 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

—

 

 

$

—

 

 

$

3,118.0

 

 

$

1,506.6

 

 

$

1,378.7

 

 

$

138.4

 

 

$

6,141.7

 

Accumulated impairment
  losses

 

 

—

 

 

 

—

 

 

 

(514.3

)

 

 

—

 

 

 

(1,378.7

)

 

 

—

 

 

 

(1,893.0

)

 

 

$

—

 

 

$

—

 

 

$

2,603.7

 

 

$

1,506.6

 

 

$

—

 

 

$

138.4

 

 

$

4,248.7

 

 

(1)
Represents the reallocation of goodwill as a result of our October 1, 2021 segment change.
v3.23.3
Interest (Tables)
 12 Months Ended
Sep. 30, 2023
Interest Income (Expense), Net [Abstract]  
Summary of Components of Interest Expense, Net

The components of interest expense, net is as follows (in millions):

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Interest expense

 

$

(535.1

)

 

$

(375.6

)

 

$

(418.9

)

Interest income

 

 

117.2

 

 

 

56.8

 

 

 

46.6

 

Interest expense, net

 

$

(417.9

)

 

$

(318.8

)

 

$

(372.3

)
v3.23.3
Inventories (Tables)
 12 Months Ended
Sep. 30, 2023
Inventory Disclosure [Abstract]  
Schedule of Inventories

Inventories are as follows (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Finished goods and work in process

 

$

1,044.9

 

 

$

1,102.4

 

Raw materials

 

 

1,049.8

 

 

 

1,135.9

 

Supplies and spare parts

 

 

578.2

 

 

 

529.6

 

Inventories at FIFO cost

 

 

2,672.9

 

 

 

2,767.9

 

LIFO reserve

 

 

(341.4

)

 

 

(450.8

)

Net inventories

 

$

2,331.5

 

 

$

2,317.1

 
v3.23.3
Property, Plant and Equipment (Tables)
 12 Months Ended
Sep. 30, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment

Property, plant and equipment consists of the following (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Property, plant and equipment at cost:

 

 

 

 

 

 

Land and buildings

 

$

2,994.7

 

 

$

2,584.8

 

Machinery and equipment

 

 

17,682.4

 

 

 

15,906.1

 

Forestlands

 

 

105.2

 

 

 

94.5

 

Transportation equipment

 

 

27.3

 

 

 

24.2

 

Leasehold improvements

 

 

98.8

 

 

 

97.0

 

Construction in progress

 

 

967.8

 

 

 

755.6

 

 

 

 

21,876.2

 

 

 

19,462.2

 

Less: accumulated depreciation, depletion and amortization

 

 

(10,813.0

)

 

 

(9,380.8

)

Property, plant and equipment, net

 

$

11,063.2

 

 

$

10,081.4

 

 
v3.23.3
Other Intangible Assets (Tables)
 12 Months Ended
Sep. 30, 2023
Other Intangible Assets [Abstract]  
Schedule of Gross Carrying Amount and Accumulated Amortization Relating to Intangible Assets, Excluding Goodwill

The gross carrying amount and accumulated amortization relating to intangible assets, excluding goodwill, are as follows and reflect the removal of fully amortized intangible assets in the period fully amortized (in millions, except weighted avg. life):

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

2023

 

 

2022

 

 

 

Weighted
Avg. Life
(in years)

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

Customer relationships

 

 

15.7

 

 

$

4,885.2

 

 

$

(2,362.0

)

 

$

4,888.5

 

 

$

(2,038.1

)

Trademarks and tradenames

 

 

24.7

 

 

 

81.2

 

 

 

(41.0

)

 

 

80.7

 

 

 

(26.2

)

Technology and patents

 

 

12.1

 

 

 

25.1

 

 

 

(15.5

)

 

 

24.4

 

 

 

(12.9

)

License costs

 

 

15.8

 

 

 

0.3

 

 

 

(0.1

)

 

 

0.3

 

 

 

(0.1

)

Non-compete agreements

 

 

—

 

 

 

1.9

 

 

 

(1.9

)

 

 

1.9

 

 

 

(1.1

)

Other

 

 

28.0

 

 

 

3.3

 

 

 

(0.3

)

 

 

3.5

 

 

 

(0.3

)

Total

 

 

15.9

 

 

$

4,997.0

 

 

$

(2,420.8

)

 

$

4,999.3

 

 

$

(2,078.7

)
Estimated Intangible Asset Amortization Expense

Estimated intangible asset amortization expense for the succeeding five fiscal years is as follows (in millions):

 

Fiscal 2024

 

$

324.2

 

Fiscal 2025

 

$

309.6

 

Fiscal 2026

 

$

302.9

 

Fiscal 2027

 

$

299.1

 

Fiscal 2028

 

$

297.1

 
v3.23.3
Fair Value (Tables)
 12 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Summary of Accounts Receivable Sales Agreements

The following table represents a summary of these accounts receivable monetization agreements for fiscal 2023 and 2022 (in millions):

 

 

 

2023

 

 

2022

 

Receivable from financial institutions at beginning of fiscal year

 

$

—

 

 

$

—

 

Receivables sold to the financial institutions and derecognized

 

 

(2,795.3

)

 

 

(2,954.8

)

Receivables collected by financial institutions

 

 

2,827.8

 

 

 

2,896.0

 

Cash (payments to) proceeds from financial institutions

 

 

(32.5

)

 

 

58.8

 

Receivable from financial institutions at September 30,

 

$

—

 

 

$

—

 
v3.23.3
Debt (Tables)
 12 Months Ended
Sep. 30, 2023
Debt [Abstract]  
Schedule of Carrying Value and Weighted Average Interest Rate of Individual Components of Debt

The following were individual components of debt (in millions, except percentages):

 

 

 

September 30, 2023

 

 

September 30, 2022

 

 

 

Carrying
Value

 

 

Weighted Avg
Interest Rate

 

 

Carrying
Value

 

 

Weighted Avg
Interest Rate

 

Public bonds due fiscal 2024 to 2028

 

$

2,938.6

 

 

 

4.1

%

 

$

3,433.4

 

 

 

4.0

%

Public bonds due fiscal 2029 to 2033

 

 

2,739.5

 

 

 

4.5

%

 

 

2,753.3

 

 

 

4.5

%

Public bonds due fiscal 2037 to 2047

 

 

177.3

 

 

 

6.2

%

 

 

177.8

 

 

 

6.2

%

Revolving credit and swing facilities

 

 

32.0

 

 

 

6.7

%

 

 

286.3

 

 

 

1.9

%

Term loan facilities

 

 

1,347.4

 

 

 

5.0

%

 

 

598.2

 

 

 

3.1

%

Receivables securitization

 

 

425.0

 

 

 

6.4

%

 

 

—

 

 

N/A

 

Commercial paper

 

 

283.9

 

 

 

5.6

%

 

 

—

 

 

N/A

 

International and other debt

 

 

61.9

 

 

 

9.6

%

 

 

127.6

 

 

 

12.8

%

Finance lease obligations

 

 

472.6

 

 

 

5.1

%

 

 

287.5

 

 

 

4.2

%

Vendor financing and commercial card
   programs

 

 

105.7

 

 

N/A

 

 

 

123.1

 

 

N/A

 

Total debt

 

 

8,583.9

 

 

 

4.6

%

 

 

7,787.2

 

 

 

4.2

%

Less: current portion of debt

 

 

533.0

 

 

 

 

 

 

212.2

 

 

 

 

Long-term debt due after one year

 

$

8,050.9

 

 

 

 

 

$

7,575.0

 

 

 

 
Schedule of Aggregate Maturities of Debt

As of September 30, 2023, the aggregate maturities of debt, excluding finance lease obligations, for the succeeding five fiscal years and thereafter are as follows (in millions):

Fiscal 2024

 

$

469.7

 

Fiscal 2025

 

 

1,353.3

 

Fiscal 2026

 

 

1,178.1

 

Fiscal 2027

 

 

506.0

 

Fiscal 2028

 

 

1,100.9

 

Thereafter

 

 

3,379.7

 

Fair value of debt step-up, deferred financing costs and unamortized
   bond discounts

 

 

123.6

 

Total

 

$

8,111.3

 
v3.23.3
Leases (Tables)
 12 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Schedule of Components of Lease Costs

Components of Lease Costs

The following table presents certain information related to the lease costs for finance and operating leases (in millions):

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Operating lease costs

 

$

236.3

 

 

$

218.1

 

 

$

211.0

 

Variable and short-term lease costs

 

 

145.9

 

 

 

122.8

 

 

 

104.6

 

Sublease income

 

 

(5.6

)

 

 

(6.1

)

 

 

(8.9

)

Finance lease cost:

 

 

 

 

 

 

 

 

 

Amortization of lease assets

 

 

16.1

 

 

 

15.1

 

 

 

9.6

 

Interest on lease liabilities

 

 

31.7

 

 

 

7.9

 

 

 

7.2

 

Total lease cost, net

 

$

424.4

 

 

$

357.8

 

 

$

323.5

 
Summary of Supplemental Balance Sheet Information Related to Leases

Supplemental Balance Sheet Information Related to Leases

 

The table below presents the lease-related assets and liabilities recorded on the balance sheet (in millions):

 

 

 

 

 

September 30,

 

 

 

Consolidated Balance Sheet Caption

 

2023

 

 

2022

 

Operating leases:

 

 

 

 

 

 

 

 

Operating lease right-of-use asset

 

Other noncurrent assets

 

$

648.5

 

 

$

699.6

 

 

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

Other current liabilities

 

$

202.4

 

 

$

191.9

 

Noncurrent operating lease liabilities

 

Other noncurrent liabilities

 

 

499.7

 

 

 

551.1

 

Total operating lease liabilities

 

 

 

$

702.1

 

 

$

743.0

 

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

$

400.6

 

 

$

177.4

 

Accumulated depreciation

 

 

 

 

(105.3

)

 

 

(37.3

)

Property, plant and equipment, net

 

 

 

$

295.3

 

 

$

140.1

 

 

 

 

 

 

 

 

 

 

Current finance lease liabilities

 

Current portion of debt

 

$

62.9

 

 

$

14.5

 

Noncurrent finance lease liabilities

 

Long-term debt due after one year

 

 

409.7

 

 

 

273.0

 

Total finance lease liabilities

 

 

 

$

472.6

 

 

$

287.5

 

 
Summary of Lease Term and Discount Rate

Lease Term and Discount Rate

 

 

September 30,

 

 

 

2023

 

 

2022

 

Weighted average remaining lease term:

 

 

 

 

 

 

Operating leases

 

4.5 years

 

 

5.0 years

 

Finance leases

 

9.3 years

 

 

7.3 years

 

 

 

 

 

 

 

 

Weighted average discount rate:

 

 

 

 

 

 

Operating leases

 

 

3.4

%

 

 

2.7

%

Finance leases

 

 

5.1

%

 

 

4.2

%
Summary of Supplemental Cash Flow Information Related to Leases

Supplemental Cash Flow Information Related to Leases

 

The table below presents supplemental cash flow information related to leases (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flows related to operating leases

 

$

235.2

 

 

$

214.8

 

Operating cash flows related to finance leases

 

$

16.0

 

 

$

8.8

 

Financing cash flows related to finance leases

 

$

31.6

 

 

$

14.8

 

 

 

 

 

 

 

 

ROU assets obtained in exchange for lease liabilities:

 

 

 

 

 

 

Operating leases

 

$

156.3

 

 

$

184.6

 

Finance leases

 

$

50.1

 

 

$

27.8

 
Summary of Maturity of Lease Liabilities

Maturity of Lease Liabilities

 

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet (in millions):

 

 

 

September 30, 2023

 

 

 

Operating Leases

 

 

Finance Leases

 

 

Total

 

Fiscal 2024

 

$

223.1

 

 

$

97.4

 

 

$

320.5

 

Fiscal 2025

 

 

173.6

 

 

 

39.3

 

 

 

212.9

 

Fiscal 2026

 

 

136.8

 

 

 

37.5

 

 

 

174.3

 

Fiscal 2027

 

 

100.4

 

 

 

34.3

 

 

 

134.7

 

Fiscal 2028

 

 

59.0

 

 

 

112.5

 

 

 

171.5

 

Thereafter

 

 

66.8

 

 

 

352.6

 

 

 

419.4

 

Total lease payments

 

 

759.7

 

 

 

673.6

 

 

 

1,433.3

 

Less: Interest (1)

 

 

(57.6

)

 

 

(201.0

)

 

 

(258.6

)

Present value of future lease payments

 

$

702.1

 

 

$

472.6

 

 

$

1,174.7

 

 

(1)
Calculated using the interest rate for each lease.
v3.23.3
Derivatives (Tables)
 12 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary Of Outstanding Notional Amounts

The following table sets forth the outstanding notional amounts related to our derivative instruments (in millions):

 

 

 

 

 

September 30,

 

 

 

Metric

 

2023

 

 

2022

 

Designated cash flow hedges:

 

Natural gas commodity contracts

 

MMBtu

 

 

22.0

 

 

 

18.3

 

 

 

 

 

 

 

 

 

 

Undesignated derivatives:

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

 

Mexican pesos

 

 

—

 

 

 

8,000.0

 

 

At September 30, 2022, the outstanding foreign currency exchange contract was related to the purchase of 8.0 billion Mexican pesos ($389.9 million) for refinancing the external debt acquired in the Mexico Acquisition on December 1, 2022.
Summary of Location and Fair Values of Derivative Instruments

The following table sets forth the location and fair values of our derivative instruments (in millions):

 

 

 

 

 

September 30,

 

 

 

Consolidated Balance
 Sheet Caption

 

2023

 

 

2022

 

Designated cash flow hedges:

 

Natural gas commodity contracts

 

Other current liabilities (1)

 

$

6.3

 

 

$

12.0

 

 

 

 

 

 

 

 

 

 

Undesignated derivatives:

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

$

—

 

 

$

3.4

 

 

(1)
At September 30, 2023 and September 30, 2022, liability positions by counterparty were partially offset by $0.2 million and $2.3 million, respectively, of asset positions where we had an enforceable right of netting.
Summary of Gains (Losses) Recognized in Accumulated Other Comprehensive Loss, Net of Tax for Cash Flow Hedges

The following table sets forth gains (losses) recognized in accumulated other comprehensive loss, net of tax for cash flow hedges (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Natural gas commodity contracts

 

$

4.2

 

 

$

(8.9

)

 

$

—

 

Interest rate swap contracts

 

$

—

 

 

$

—

 

 

$

5.4

 
Summary of Gains (Losses) Recognized in the Statements of Income

The following table sets forth amounts of gains (losses) recognized in the consolidated statements of operations for cash flow hedges reclassified from accumulated other comprehensive loss (in millions):

 

 

 

 

 

Years Ended September 30,

 

 

 

Consolidated Statement
 of Operations Caption

 

2023

 

 

2022

 

 

2021

 

Natural gas commodity contracts

 

Cost of goods sold

 

$

(72.6

)

 

$

(1.8

)

 

$

—

 

Interest rate swap contracts

 

Interest expense, net

 

$

—

 

 

$

—

 

 

$

(7.4

)

 

The following table sets forth amounts of gains (losses) recognized in the consolidated statements of operations for derivatives not designated as hedges (in millions):

 

 

 

 

 

Years Ended September 30,

 

 

 

Consolidated Statement
 of Operations Caption

 

2023

 

 

2022

 

 

2021

 

Foreign currency contracts

 

Other income (expense), net

 

$

19.7

 

 

$

—

 

 

$

—

 
v3.23.3
Special Purpose Entities (Tables)
 12 Months Ended
Sep. 30, 2023
Special Purpose Entities [Abstract]  
Schedule of Restricted Assets and Non-recourse Liabilities Held by Special Purposes Entities

The restricted assets and non-recourse liabilities held by SPEs, which we consolidate as variable interest entities, are included in the consolidated balance sheets in the following (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Other current assets

 

$

862.1

 

 

$

—

 

Other noncurrent assets

 

$

382.7

 

 

$

1,253.0

 

 

 

 

 

 

 

 

Other current liabilities

 

$

776.7

 

 

$

—

 

Other noncurrent liabilities

 

$

330.2

 

 

$

1,117.8

 
Summary of Restricted Assets and Non-recourse Liabilities

The restricted assets and non-recourse liabilities have the following activity (in millions):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Interest income on Timber Notes (1)

 

$

56.0

 

 

$

41.1

 

 

$

38.7

 

Interest expense on Timber Loans (1)

 

$

50.0

 

 

$

37.2

 

 

$

35.2

 

Cash receipts on Timber Notes (2)

 

$

61.4

 

 

$

46.5

 

 

$

45.9

 

Cash payments on Timber Loans (2)

 

$

57.6

 

 

$

44.9

 

 

$

44.7

 

 

(1)
Presented in Interest expense, net on the accompanying Consolidated Statements of Operations.
(2)
Included as part of operating cash flows on the accompanying Consolidated Statements of Cash Flows.
v3.23.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Sep. 30, 2023
Other Comprehensive Income Loss [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax

The following table summarizes the changes in accumulated other comprehensive loss by component for the fiscal years ended September 30, 2023 and 2022 (in millions):

 

 

 

Deferred
(Loss) Income on Cash
Flow Hedges

 

 

Defined Benefit
Pension and
Postretirement
Plans

 

 

Foreign
Currency
Items

 

 

Total (1)

 

Balance at September 30, 2021

 

$

(0.2

)

 

$

(536.5

)

 

$

(462.4

)

 

$

(999.1

)

Other comprehensive loss before
   reclassifications

 

 

(10.3

)

 

 

(217.1

)

 

 

(241.2

)

 

 

(468.6

)

Amounts reclassified from accumulated
   other comprehensive loss

 

 

1.4

 

 

 

12.0

 

 

 

—

 

 

 

13.4

 

Net current period other comprehensive loss

 

 

(8.9

)

 

 

(205.1

)

 

 

(241.2

)

 

 

(455.2

)

Balance at September 30, 2022

 

$

(9.1

)

 

$

(741.6

)

 

$

(703.6

)

 

$

(1,454.3

)

Other comprehensive (loss) income before
   reclassifications

 

 

(50.2

)

 

 

119.1

 

 

 

354.4

 

 

 

423.3

 

Amounts reclassified from accumulated
   other comprehensive loss

 

 

54.4

 

 

 

50.5

 

 

 

27.5

 

 

 

132.4

 

Net current period other comprehensive income

 

 

4.2

 

 

 

169.6

 

 

 

381.9

 

 

 

555.7

 

Balance at September 30, 2023

 

$

(4.9

)

 

$

(572.0

)

 

$

(321.7

)

 

$

(898.6

)

 

(1)
All amounts are net of tax and noncontrolling interest.
Summary of Reclassification out of Accumulated Other Comprehensive Loss

The following table summarizes the reclassifications out of accumulated other comprehensive loss by component for the fiscal years ended September 30, 2023 and 2022 (in millions):

 

 

 

Years Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Amortization of defined benefit pension and
   postretirement items: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses (2)

 

$

(53.0

)

 

$

13.3

 

 

$

(39.7

)

 

$

(7.8

)

 

$

1.9

 

 

$

(5.9

)

Prior service costs (2)

 

 

(7.5

)

 

 

1.9

 

 

 

(5.6

)

 

 

(8.2

)

 

 

2.1

 

 

 

(6.1

)

Reclassification of net pension
   adjustment upon sale of RTS (3)

 

 

(8.9

)

 

 

3.7

 

 

 

(5.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal defined benefit plans

 

 

(69.4

)

 

 

18.9

 

 

 

(50.5

)

 

 

(16.0

)

 

 

4.0

 

 

 

(12.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification of previously unrealized
   net foreign currency loss upon
   consolidation of equity investment (4)

 

 

(29.0

)

 

 

—

 

 

 

(29.0

)

 

 

—

 

 

 

—

 

 

 

—

 

Reclassification of previously unrealized
   net foreign currency gain upon sale of
   RTS (3)

 

 

1.5

 

 

 

—

 

 

 

1.5

 

 

 

—

 

 

 

—

 

 

 

—

 

Subtotal foreign currency translation
   adjustments

 

 

(27.5

)

 

 

—

 

 

 

(27.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas commodity hedge loss (5)

 

 

(72.6

)

 

 

18.2

 

 

 

(54.4

)

 

 

(1.8

)

 

 

0.4

 

 

 

(1.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total reclassifications for the period

 

$

(169.5

)

 

$

37.1

 

 

$

(132.4

)

 

$

(17.8

)

 

$

4.4

 

 

$

(13.4

)

 

(1)
Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded.
(2)
These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See “Note 6. Retirement Plans” for additional information.
(3)
Amount reflected in Gain on sale of RTS and Chattanooga in the consolidated statements of operations.
(4)
Amount reflected in Equity in income of unconsolidated entities in the consolidated statements of operations.
(5)
These accumulated other comprehensive income components are included in Cost of goods sold.
Schedule of Other Comprehensive Income (Loss)

A summary of the components of other comprehensive income (loss), including noncontrolling interest, for the years ended September 30, 2023, 2022 and 2021, is as follows (in millions):

 

Fiscal 2023

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation gain

 

$

354.9

 

 

$

—

 

 

$

354.9

 

Reclassification of previously unrealized net foreign
   currency loss upon consolidation of equity investment

 

 

29.0

 

 

 

—

 

 

 

29.0

 

Reclassification of previously unrealized net foreign currency
   gain upon sale of RTS

 

 

(2.3

)

 

 

—

 

 

 

(2.3

)

Deferred loss on cash flow hedges

 

 

(66.9

)

 

 

16.7

 

 

 

(50.2

)

Reclassification adjustment of net loss on cash flow hedges
   included in earnings

 

 

72.6

 

 

 

(18.2

)

 

 

54.4

 

Net actuarial gain arising during period

 

 

161.6

 

 

 

(40.8

)

 

 

120.8

 

Amortization and settlement recognition of net actuarial loss

 

 

53.5

 

 

 

(13.4

)

 

 

40.1

 

Prior service cost arising during the period

 

 

(2.0

)

 

 

0.5

 

 

 

(1.5

)

Amortization of prior service cost

 

 

7.6

 

 

 

(1.9

)

 

 

5.7

 

Reclassification of net pension adjustment upon sale of RTS

 

 

13.6

 

 

 

(5.7

)

 

 

7.9

 

Consolidated other comprehensive income

 

 

621.6

 

 

 

(62.8

)

 

 

558.8

 

Less: Other comprehensive income attributable to
   noncontrolling interests

 

 

(5.3

)

 

 

2.2

 

 

 

(3.1

)

Other comprehensive income attributable to common
   stockholders

 

$

616.3

 

 

$

(60.6

)

 

$

555.7

 

 

Fiscal 2022

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation loss

 

$

(241.5

)

 

$

—

 

 

$

(241.5

)

Deferred loss on cash flow hedges

 

 

(13.8

)

 

 

3.5

 

 

 

(10.3

)

Reclassification adjustment of net loss on cash flow hedges
   included in earnings

 

 

1.8

 

 

 

(0.4

)

 

 

1.4

 

Net actuarial loss arising during period

 

 

(289.1

)

 

 

72.8

 

 

 

(216.3

)

Amortization and settlement recognition of net actuarial loss

 

 

8.4

 

 

 

(2.0

)

 

 

6.4

 

Prior service cost arising during the period

 

 

(0.2

)

 

 

—

 

 

 

(0.2

)

Amortization of prior service cost

 

 

8.2

 

 

 

(2.1

)

 

 

6.1

 

Consolidated other comprehensive loss

 

 

(526.2

)

 

 

71.8

 

 

 

(454.4

)

Less: Other comprehensive income attributable to noncontrolling
   interests

 

 

(1.1

)

 

 

0.3

 

 

 

(0.8

)

Other comprehensive loss attributable to common
   stockholders

 

$

(527.3

)

 

$

72.1

 

 

$

(455.2

)

 

Fiscal 2021

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation gain

 

$

124.3

 

 

$

—

 

 

$

124.3

 

Deferred loss on cash flow hedges

 

 

(0.1

)

 

 

—

 

 

 

(0.1

)

Reclassification adjustment of net loss on cash flow hedges
   included in earnings

 

 

7.4

 

 

 

(1.9

)

 

 

5.5

 

Net actuarial gain arising during period

 

 

222.2

 

 

 

(56.6

)

 

 

165.6

 

Amortization and settlement recognition of net actuarial loss

 

 

33.9

 

 

 

(8.4

)

 

 

25.5

 

Prior service cost arising during the period

 

 

(5.6

)

 

 

1.4

 

 

 

(4.2

)

Amortization of prior service cost

 

 

6.0

 

 

 

(1.5

)

 

 

4.5

 

Consolidated other comprehensive income

 

 

388.1

 

 

 

(67.0

)

 

 

321.1

 

Less: Other comprehensive income attributable to noncontrolling
   interests

 

 

(0.3

)

 

 

—

 

 

 

(0.3

)

Other comprehensive income attributable to common
   stockholders

 

$

387.8

 

 

$

(67.0

)

 

$

320.8

 

v3.23.3
Share-Based Compensation (Tables)
 12 Months Ended
Sep. 30, 2023
Stock Based Compensation [Abstract]  
Summary of Changes in Stock Options

The table below summarizes the changes in stock options during the fiscal year ended September 30, 2023:

 

 

 

Stock
Options

 

 

Weighted
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual
Term
(in years)

 

 

Aggregate
Intrinsic
Value
(in millions)

 

Outstanding at September 30, 2022

 

1,082,925

 

$

40.22

 

 

 

Exercised

 

(120,018

)

 

28.83

 

 

 

Expired

 

(262,375

)

 

40.04

 

 

 

Outstanding at September 30, 2023

 

700,532

 

$

42.24

 

 

1.3

 

$

2.0

 

Exercisable at September 30, 2023

 

700,532

 

$

42.24

 

 

1.3

 

$

2.0

 
Summary of Restricted Stock Awards - Vested and Released, Granted and Changes

The table below summarizes the changes in restricted stock units during the fiscal year ended September 30, 2023:

 

 

 

Units

 

 

Weighted
Average
Grant Date Fair
Value

 

Outstanding at September 30, 2022 (1)

 

4,900,629

 

$

43.73

 

Granted

 

3,066,748

 

 

35.22

 

Vested and released

 

(2,131,067

)

 

40.91

 

Forfeited

 

(558,177

)

 

41.23

 

Outstanding at September 30, 2023 (1)

 

5,278,133

 

$

40.19

 

 

(1)
Target awards granted with a performance condition, net of subsequent forfeitures, may be increased up to 200% of the target or decreased to zero, subject to the level of performance attained. The awards are reflected in the table at the target award amount of 100%. Based on current facts and assumptions, we are forecasting the performance of the aggregate outstanding grants to be attained at levels below target. However, actual performance may vary.

The following table represents a summary of restricted stock units and restricted stock granted in fiscal 2023, 2022 and 2021 with terms defined in the applicable grant letters (in units/shares).

 

2023

 

2022

 

2021

 

Granted to employees:

 

 

 

Granted with a service condition

 

1,419,255

 

 

1,159,255

 

 

1,009,387

 

Granted with a service condition and a Return on
   Invested Capital performance condition at target

 

540,425

 

 

394,655

 

 

—

 

Granted with a service condition and a Cash Flow Per
   Share performance condition at target

 

—

 

 

464,485

 

 

798,490

 

Granted with a service condition and an Adjusted Earnings
   Per Share performance condition at target

 

644,755

 

 

—

 

 

—

 

Granted with a service condition and a relative Total
   Shareholder Return market condition at target

 

69,560

 

 

45,470

 

 

127,050

 

Granted for attainment of a performance condition at
   an amount in excess of target (1)

 

341,590

 

 

263,918

 

 

—

 

Granted for annual bonus (2)

 

 

—

 

 

 

—

 

 

 

126,984

 

Granted to non-employee directors

 

51,163

 

 

37,771

 

 

42,482

 

Total grants

 

3,066,748

 

 

2,365,554

 

 

2,104,393

 

 

 

(1)
Grants include shares issued for the level of performance attained in excess of target. Shares issued in fiscal 2023 for the fiscal 2020 Cash Flow Per Share measure were at 151.8% of target. Shares issued in fiscal 2022 for the fiscal 2019 Cash Flow Per Share measure were at 151.3% of target. Shares issued in fiscal 2021 for the fiscal 2018 Cash Flow Per Share measure were at 89.3% of target, therefore, the remainder of the grant was forfeited.
(2)
Reflects shares issued at 105% of target in fiscal 2021 relating to fiscal 2020 restricted stock units granted for the annual bonus.

The following table represents a summary of restricted stock units and restricted stock vested and released as well as the corresponding aggregate fair value in fiscal 2023, 2022 and 2021 (in millions, except units/shares):

 

2023

 

2022

 

2021

 

Vested and released

 

2,131,067

 

 

1,512,550

 

 

3,194,223

 

Aggregate fair value

$

72.6

 

$

68.7

 

$

125.1

 

Stock Options and Stock Appreciation Rights

We did not grant any stock options or SARs in fiscal 2023, 2022 and 2021. Outstanding stock options granted under our plans generally have an exercise price equal to the closing market price on the date of the grant, generally vested in three years, in either one tranche or in approximately one-third increments, and have 10-year contractual terms. However, a portion of our grants are subject to earlier expense recognition due to retirement eligibility rules. Presently, other than circumstances such as death, disability and retirement, grants will include a provision requiring both a change of control and termination of employment to accelerate vesting.

When options are granted, we estimate the fair value of stock options granted using a Black-Scholes option pricing model. We use historical data to estimate option exercises and employee terminations in determining the expected term in years for stock options. Expected volatility is calculated based on the historical volatility of our stock. The risk-free interest rate is based on U.S. Treasury securities in effect at the date of the grant of the stock options. The dividend yield is estimated based on our historical annual dividend payments and current expectations for the future.

The table below summarizes the changes in stock options during the fiscal year ended September 30, 2023:

 

 

 

Stock
Options

 

 

Weighted
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual
Term
(in years)

 

 

Aggregate
Intrinsic
Value
(in millions)

 

Outstanding at September 30, 2022

 

1,082,925

 

$

40.22

 

 

 

Exercised

 

(120,018

)

 

28.83

 

 

 

Expired

 

(262,375

)

 

40.04

 

 

 

Outstanding at September 30, 2023

 

700,532

 

$

42.24

 

 

1.3

 

$

2.0

 

Exercisable at September 30, 2023

 

700,532

 

$

42.24

 

 

1.3

 

$

2.0

 

 

The aggregate intrinsic value of options exercised during the years ended September 30, 2023, 2022 and 2021 was $0.8 million, $8.6 million and $29.1 million, respectively.

As of September 30, 2023, there was no remaining unrecognized compensation cost related to unvested stock options.

As part of the Combination, we issued SARs to replace outstanding MWV SARs. The SARs were valued using the Black-Scholes option pricing model. We measured compensation expense related to the SAR awards at the end of each period. There were no SARs outstanding during the year ended September 30, 2023, and we do not expect to issue additional SARs. The aggregate intrinsic value of SARs exercised during the years ended September 30, 2022 and 2021 was $0.1 million and $0.2 million, respectively.

v3.23.3
Earnings per Share (Tables)
 12 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
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):

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Numerator:

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common stockholders

 

$

(1,649.0

)

 

$

944.6

 

 

$

838.3

 

Less: Distributed and undistributed income available to
   participating securities

 

 

—

 

 

 

(0.1

)

 

 

(0.2

)

Distributed and undistributed (loss) income available to
   common stockholders

 

$

(1,649.0

)

 

$

944.5

 

 

$

838.1

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

255.9

 

 

 

259.5

 

 

 

265.2

 

Effect of dilutive stock options and non-participating securities

 

 

—

 

 

 

2.0

 

 

 

2.3

 

Diluted weighted average shares outstanding

 

 

255.9

 

 

 

261.5

 

 

 

267.5

 

 

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per share attributable to common
   stockholders

 

$

(6.44

)

 

$

3.64

 

 

$

3.16

 

 

 

 

 

 

 

 

 

 

 

Diluted (loss) earnings per share attributable to common
   stockholders

 

$

(6.44

)

 

$

3.61

 

 

$

3.13

 
v3.23.3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details)
$ in Billions
 3 Months Ended 12 Months Ended
Sep. 29, 2023
USD ($)
Sep. 12, 2023
USD ($)
shares
Sep. 08, 2023
USD ($)
Jun. 16, 2023
USD ($)
Dec. 01, 2022
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2021
USD ($)
Jun. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
T
Sep. 30, 2023
USD ($)
Segment
Sep. 30, 2022
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2022
MXN ($)
Sep. 30, 2020
USD ($)
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Equity in income of unconsolidated entities                   $ 3,400,000 $ 72,900,000 $ 40,900,000    
Gain on sale of unconsolidated joint venture       $ 19,300,000                    
Gain (loss) on sale of property, plant and equipment                   3,200,000 17,500,000 (3,700,000)    
Proceeds from Sale of Joint Venture       $ 43,800,000                    
Gain (loss) on sale of businesses                   11,200,000   16,500,000    
Additions to debt                   1,836,400,000 888,200,000 259,900,000    
Repayments of debt                   1,720,800,000 1,376,500,000 1,544,300,000    
Additions to revolving credit facilities                   52,900,000 382,400,000 435,000,000    
Repayments of revolving credit facilities                   344,200,000 378,300,000 415,000,000    
Net cash used for financing activities                   (193,500,000) (1,281,300,000) (1,580,400,000)    
Lost production from ransomware incident to date | T                 115,000          
Insurance recoveries                   $ 10,000,000 57,200,000      
Number of reportable segments | Segment                   4        
Pre-tax impact of lost sales and operational disruption                 $ 50,000,000          
Ransomware recovery costs               $ 9,000,000 $ 20,000,000          
Ransomware preliminary recoveries             $ 15,000,000              
Reduction of SG&A expenses excluding intangible amortization.             10,000,000              
Direct cost recoveries as reduction of Selling , general and administrative expenses excluding intangible amortization                     6,600,000      
Reduction of cost of goods sold             5,000,000              
Business interruption recoveries as reduction of Cost of goods sold.                     50,600,000      
Credit impairment income (losses)                   $ (5,900,000) $ (4,600,000) 9,400,000    
Percentage of FIFO Inventory           43.00%       43.00% 35.00%   35.00%  
Percentage of our mill assets as measured at cost with a life of 25 years or less                   90.00%        
Reporting unit, percentage of fair value in excess of carrying value           30.00%                
Increase in discount rate to estimate fair value of reporting unit                   1.00%        
Goodwill           $ 4,248,700,000 5,959,200,000     $ 4,248,700,000 $ 5,895,200,000 5,959,200,000   $ 5,962,200,000
Finite-Lived Intangible Assets, Useful Life           15 years 10 months 24 days       15 years 10 months 24 days        
Goodwill impairment loss                   $ 1,893,000,000        
Goodwill impairment loss after tax                   1,821,800,000        
Unamortized implementation costs           $ 51,700,000 1,100,000     $ 51,700,000 4,100,000 1,100,000    
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period                   3 years        
Asset Retirement Obligation           127,000,000 $ 73,600,000     $ 127,000,000 96,000,000 73,600,000    
Deferred maintenance costs           $ 140,900,000       140,900,000 121,800,000      
Foreign Currency Transaction Gain (Loss), after Tax                   $ 10,800,000 (5,000,000) $ (700,000)    
Transaction Agreement with Smurfit Kappa [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Transaction agreement conditions description                   The Transaction is subject to certain conditions set forth in the Transaction Agreement, including, but not limited to: certain regulatory clearances, approval by the shareholders and stockholders of both companies (75% or more for Smurfit Kappa shareholders and a majority for our stockholders), the registration statement for the offer of ListCo Shares being declared effective by the SEC and the approval of the ListCo Shares for listing on the NYSE.        
Agreement termination fee payable if breaches non-solicitation covenant   $ 147,000,000                        
Agreement termination fee payable if stockholder approval failure   57,000,000                        
Restricted Stock, Non-Employee Directors [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period                   1 year        
Common Stock [Member] | Transaction Agreement with Smurfit Kappa [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Amount in excess of one share of stock   $ 5                        
Conversion of stock, Shares | shares   1                        
Foreign Currency Exchange Contract Derivatives [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Derivative notional amount                     389,900,000   $ 8.0  
Accounting Standards Update 2021-10 [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]           true       true        
Change in Accounting Principle, Accounting Standards Update, Adoption Date           Oct. 01, 2022       Oct. 01, 2022        
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]           true       true        
Accounting Standards Update 2021-08 [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]           true       true        
Change in Accounting Principle, Accounting Standards Update, Adoption Date           Oct. 01, 2022       Oct. 01, 2022        
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]           true       true        
Accounting Standard Update 2020-04 [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]           true       true        
Change in Accounting Principle, Accounting Standards Update, Adoption Date           Oct. 01, 2022       Oct. 01, 2022        
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]           true       true        
Corrugated Packaging [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Goodwill           $ 2,603,700,000       $ 2,603,700,000        
Consumer Packaging [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Goodwill           1,506,600,000       1,506,600,000        
Distribution [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Goodwill           $ 138,400,000       138,400,000        
Adjustment [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Additions to debt                     385,000,000      
Repayments of debt                     385,000,000      
Additions to revolving credit facilities                     5,000,000      
Repayments of revolving credit facilities                     $ 5,000,000      
Revision of Prior Period, Error Correction, Adjustment [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Net cash used for financing activities                   $ 0        
Lynchburg, VA [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Net cash proceeds from sale of joint venture $ 11,000,000                          
Equity in income of unconsolidated entities 7,600,000                          
Gain on sale of unconsolidated joint venture 4,300,000                          
Gain (loss) on sale of property, plant and equipment $ (3,300,000)                          
RTS Packaging, LLC [Member] | Chattanooga, TN [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Net cash proceeds from sale of joint venture     $ 318,200,000                      
Gain on sale of unconsolidated joint venture     $ 238,800,000                      
Mexico Acquisition [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Date of acquisition         Dec. 01, 2022                  
Percentage of remaining interest acquired         67.70%                  
Cash payment to acquire businesses         $ 969,800,000                  
Repayments of debt         494,800,000                  
Goodwill         231,200,000                  
Eaton, I N and Aurora I L [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Sale of uncoated recycled paperboard mills subject to working capital adjustment         50,000,000                  
Sale proceeds received         25,000,000                  
Preliminary working capital settlement         900,000                  
Amount financed         25,000,000                  
Gain (loss) on sale of businesses         $ 11,200,000                  
Grupo Gondi [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Date of acquisition         Dec. 01, 2022                  
Percentage of remaining interest acquired         67.70%                  
Cash payment to acquire businesses         $ 969,800,000                  
Minimum [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Accounts Receivable, Approximate Range Receivables Due, Days                   30 days        
Reporting unit, discount rate           9.50%                
Reporting unit, growth rate           0.00%                
Finite-Lived Intangible Assets, Useful Life           2 years       2 years        
Minimum [Member] | Corrugated Packaging [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Reporting unit, discount rate           9.50%                
Increase in discount rate for the estimated fair value of reporting unit to fall below its carrying value           9.90%                
Minimum [Member] | Machinery and Equipment [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Property, Plant and Equipment, Useful Life           3 years       3 years        
Minimum [Member] | Leasehold Improvements [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Property, Plant and Equipment, Useful Life           3 years       3 years        
Maximum [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Accounts Receivable, Approximate Range Receivables Due, Days                   60 days        
Reporting unit, discount rate           14.50%                
Reporting unit, growth rate           1.00%                
Reporting unit percentage of fair value in excess of carrying amount by less than           10.00%                
Finite-Lived Intangible Assets, Useful Life           40 years       40 years        
Maximum [Member] | Distribution [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Reporting unit, discount rate           14.50%                
Increase in discount rate for the estimated fair value of reporting unit to fall below its carrying value           15.40%                
Maximum [Member] | Machinery and Equipment [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Property, Plant and Equipment, Useful Life           25 years       25 years        
Maximum [Member] | Machinery and Equipment, Mills [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Property, Plant and Equipment, Useful Life           44 years       44 years        
Maximum [Member] | Cost of Our Mill Machinery and Equipment with a Life of 25 Years or Less                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Property, Plant and Equipment, Useful Life           25 years       25 years        
Maximum [Member] | Leasehold Improvements [Member]                            
Description of Business and Summary of Significant Accounting Policies [Line Items]                            
Property, Plant and Equipment, Useful Life           10 years       10 years        
v3.23.3
Description of Business and Summary of Significant Accounting Policies - Schedule of Valuation and Qualifying Accounts Disclosure (Details) - Allowance for Doubtful Accounts [Member] - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of fiscal year $ 66.3 $ 68.1 $ 66.3
Reduction in sales and charges to costs and expenses 252.0 261.9 236.5
Deductions (258.1) (263.7) (234.7)
Balance at end of fiscal year $ 60.2 $ 66.3 $ 68.1
v3.23.3
Description of Business and Summary of Significant Accounting Policies - Property, Plant and Equipment, Estimated Useful Lives (Details)
Sep. 30, 2023
Building and Building Improvements [Member] | Minimum [Member]  
Description of Business and Summary of Significant Accounting Policies [Line Items]  
Property, Plant and Equipment, Useful Life 15 years
Building and Building Improvements [Member] | Maximum [Member]  
Description of Business and Summary of Significant Accounting Policies [Line Items]  
Property, Plant and Equipment, Useful Life 40 years
Machinery and Equipment [Member] | Minimum [Member]  
Description of Business and Summary of Significant Accounting Policies [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Machinery and Equipment [Member] | Maximum [Member]  
Description of Business and Summary of Significant Accounting Policies [Line Items]  
Property, Plant and Equipment, Useful Life 25 years
Transportation Equipment [Member] | Minimum [Member]  
Description of Business and Summary of Significant Accounting Policies [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Transportation Equipment [Member] | Maximum [Member]  
Description of Business and Summary of Significant Accounting Policies [Line Items]  
Property, Plant and Equipment, Useful Life 8 years
v3.23.3
Description of Business and Summary of Significant Accounting Policies - The Following Table Sets Forth Changes to The Asset Retirement Obligation Liability (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Asset Retirement Obligation, Beginning Balance $ 96.0 $ 73.6
Accretion expense 3.5 2.7
Liabilities incurred 30.7 25.1
Payments (4.2) (4.0)
Revisions in estimated cash flows 0.8 (1.4)
Foreign currency rate changes 0.2  
Asset Retirement Obligation, Ending Balance $ 127.0 $ 96.0
v3.23.3
Revenue Recognition - Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Disaggregation Of Revenue [Line Items]      
Net sales $ 20,310.0 $ 21,256.5 $ 18,746.1
Operating Segments [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 20,627.3 21,621.9 19,072.2
Operating Segments [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 10,054.9 9,307.6 8,400.5
Operating Segments [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 4,941.8 4,965.2 4,433.9
Operating Segments [Member] | Global Paper [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 4,369.9 5,930.2 4,983.0
Operating Segments [Member] | Distribution Segment [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,260.7 1,418.9 1,254.8
Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (317.3) (365.4) (326.1)
Intersegment Sales [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (280.3) (328.0) (305.3)
Intersegment Sales [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (30.7) (27.8) (20.3)
Intersegment Sales [Member] | Distribution Segment [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (6.3) (9.6) (0.5)
United States [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 15,348.9 17,361.5 15,317.2
United States [Member] | Operating Segments [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 7,782.4 8,264.7 7,518.8
United States [Member] | Operating Segments [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 2,843.4 2,870.9 2,463.7
United States [Member] | Operating Segments [Member] | Global Paper [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 3,946.0 5,344.8 4,547.7
United States [Member] | Operating Segments [Member] | Distribution Segment [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,072.7 1,238.3 1,105.9
United States [Member] | Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (295.6) (357.2) (318.9)
Canada [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,281.0 1,325.1 1,210.4
Canada [Member] | Operating Segments [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 554.3 578.8 519.3
Canada [Member] | Operating Segments [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 516.1 510.0 473.0
Canada [Member] | Operating Segments [Member] | Global Paper [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 204.9 227.7 205.2
Canada [Member] | Operating Segments [Member] | Distribution Segment [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 11.1 16.1 19.7
Canada [Member] | Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (5.4) (7.5) (6.8)
Latin America [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 2,081.8 1,045.6 745.4
Latin America [Member] | Operating Segments [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,709.5 456.4 357.3
Latin America [Member] | Operating Segments [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 80.9 194.4 159.1
Latin America [Member] | Operating Segments [Member] | Global Paper [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 129.8 230.7 100.1
Latin America [Member] | Operating Segments [Member] | Distribution Segment [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 176.9 164.5 129.2
Latin America [Member] | Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (15.3) (0.4) (0.3)
EMEA [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,256.1 1,150.5 1,106.0
EMEA [Member] | Operating Segments [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 8.7 7.7 5.1
EMEA [Member] | Operating Segments [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,201.2 1,079.9 1,038.2
EMEA [Member] | Operating Segments [Member] | Global Paper [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 47.2 63.2 62.7
EMEA [Member] | Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (1.0) (0.3)  
Asia Pacific [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 342.2 373.8 367.1
Asia Pacific [Member] | Operating Segments [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 300.2 310.0 299.9
Asia Pacific [Member] | Operating Segments [Member] | Global Paper [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales $ 42.0 $ 63.8 67.3
Asia Pacific [Member] | Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales     $ (0.1)
v3.23.3
Revenue Recognition - Summary of Opening and Closing Balances of Contract Assets and Contract Liabilities (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2023
USD ($)
Disaggregation of Revenue [Abstract]  
Short-Term Contract Assets, Beginning balance $ 244.0
(Decrease) / Increase in Short-Term Contract Assets (2.3)
Short-Term Contract Assets, Ending balance 241.7
Short-Term Contract Liabilities, Beginning balance 13.9
(Decrease) / increase in Short-Term Contract Liabilities (0.4)
Short-Term Contract Liabilities, Ending balance $ 13.5
v3.23.3
Acquisitions - Additional Information (Details) - Mexico Acquisition [Member]
$ in Millions
Dec. 01, 2022
USD ($)
GraphicPlants
CorrugatedPackagingPlants
PaperMills
Business Acquisition [Line Items]  
Date of acquisition Dec. 01, 2022
Percentage of remaining interest acquired 67.70%
Number of paper mills | PaperMills 4
Number of corrugated packaging plants | CorrugatedPackagingPlants 9
Number of high graphic plants | GraphicPlants 6
Acquisition date fair value $ 403.7
Percentage of ownership interest previously held 32.30%
Non-cash pre-tax loss $ 46.8
Loss after release of related deferred tax liability $ 24.6
Step acquisition percentage of control 100.00%
v3.23.3
Acquisitions - Summary of Purchase Consideration Transferred (Details) - Mexico Acquisition [Member]
$ in Millions
Dec. 01, 2022
USD ($)
Business Acquisition [Line Items]  
Cash consideration transferred for 67.7% interest $ 969.8
Fair value of the previously held interest 403.7
Settlement of preexisting relationships (net receivable from joint venture) 40.2
Purchase consideration transferred $ 1,413.7
v3.23.3
Acquisitions - Summary of Purchase Consideration Transferred (Parenthetical) (Details)
Dec. 01, 2022
Mexico Acquisition [Member]  
Business Acquisition [Line Items]  
Percentage of remaining interest acquired 67.70%
v3.23.3
Acquisitions - Summary of Preliminary Fair Value of Assets and Liabilities Assumed in Acquisition (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 01, 2022
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Business Acquisition [Line Items]          
Goodwill $ 4,248.7   $ 5,895.2 $ 5,959.2 $ 5,962.2
Mexico Acquisition [Member]          
Business Acquisition [Line Items]          
Cash and cash equivalents   $ 116.3      
Current assets, excluding cash and cash equivalents   697.0      
Property, plant and equipment   1,380.3      
Goodwill   231.2      
Other noncurrent assets   101.4      
Total assets acquired   2,526.2      
Current portion of debt [1]   13.2      
Current liabilities, excluding debt   384.8      
Long-term debt due after one year [1]   591.4      
Pension liabilities, net of current portion   35.2      
Deferred income taxes   69.8      
Other noncurrent liabilities   18.1      
Total liabilities assumed   1,112.5      
Net assets acquired   1,413.7      
Measurement Period Adjustments [Member] | Mexico Acquisition [Member]          
Business Acquisition [Line Items]          
Current assets, excluding cash and cash equivalents [2],[3]   (71.2)      
Property, plant and equipment [2],[3]   43.0      
Goodwill [2],[3]   6.2      
Other noncurrent assets [2],[3]   0.6      
Total assets acquired [2],[3]   (21.4)      
Current liabilities, excluding debt [2],[3]   (50.4)      
Long-term debt due after one year [1],[2],[3]   36.2      
Pension liabilities, net of current portion [2],[3]   (3.1)      
Deferred income taxes [2],[3]   (4.1)      
Total liabilities assumed [2],[3]   (21.4)      
As Adjusted [Member] | Mexico Acquisition [Member]          
Business Acquisition [Line Items]          
Cash and cash equivalents   116.3      
Current assets, excluding cash and cash equivalents   625.8      
Property, plant and equipment   1,423.3      
Goodwill   237.4      
Other noncurrent assets   102.0      
Total assets acquired   2,504.8      
Current portion of debt [1]   13.2      
Current liabilities, excluding debt   334.4      
Long-term debt due after one year [1]   627.6      
Pension liabilities, net of current portion   32.1      
Deferred income taxes   65.7      
Other noncurrent liabilities   18.1      
Total liabilities assumed   1,091.1      
Net assets acquired   $ 1,413.7      
[1] Includes $494.8 million of debt that we assumed and repaid in connection with the closing of the Mexico Acquisition. The remaining balance relates to current and long-term portions of finance leases
[2] The measurement period adjustments recorded in fiscal 2023 did not have a significant impact on our consolidated statements of operations for the year ended September 30, 2023
[3] The measurement period adjustments were primarily due to refinements to the carrying amounts of certain assets and liabilities. The net impact of the measurement period adjustments resulted in a net increase in goodwill.
v3.23.3
Acquisitions - Summary of Preliminary Fair Preliminary Value of Assets and Liabilities Assumed in Acquisition (Parenthetical) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 01, 2022
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Business Acquisition [Line Items]        
Debt assumed and repaid   $ 1,720.8 $ 1,376.5 $ 1,544.3
Mexico Acquisition [Member]        
Business Acquisition [Line Items]        
Debt assumed and repaid $ 494.8      
v3.23.3
Held For Sale (Additional Information) (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Long-Lived Assets Held-for-Sale [Line Items]    
Net assets held for sale related to closed facilities $ 91.5 $ 34.4
v3.23.3
Restructuring and Other Costs - Additional Information (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2023
USD ($)
Segment
T
Sep. 30, 2022
USD ($)
T
Sep. 30, 2021
USD ($)
Restructuring Cost and Reserve [Line Items]      
Restructuring and other costs $ 859.2 $ 383.0 $ 30.6
Restructuring and other costs, noncash $ 604.6 $ 334.1 $ 13.4
Number of reportable segments | Segment 4    
Panama City Mill [Member]      
Restructuring Cost and Reserve [Line Items]      
Annual capacity of production | T   645,000  
Corrugated Medium Manufacturing Operations [Member]      
Restructuring Cost and Reserve [Line Items]      
Annual capacity of production | T   200,000  
Tacoma WA [Member]      
Restructuring Cost and Reserve [Line Items]      
Annual capacity of production | T 510,000    
North Charleston [Member]      
Restructuring Cost and Reserve [Line Items]      
Annual capacity of production | T 550,000    
Other Restructuring Costs [Member]      
Restructuring Cost and Reserve [Line Items]      
Lease or other contract termination costs $ 70.3    
Facility carrying costs 33.3    
Impaired intangibles attributable to restructuring $ 22.5    
v3.23.3
Restructuring and Other Costs - Schedule of Restructuring and Other Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Restructuring and Related Activities [Abstract]      
Restructuring $ 803.9 $ 373.5 $ 27.6
Other 55.3 9.5 3.0
Restructuring and other costs, net $ 859.2 $ 383.0 $ 30.6
v3.23.3
Restructuring and Other Costs - Schedule of Restructuring Charges Related to Active Restructuring Initiatives (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost $ 803.9 $ 373.5 $ 27.6
Restructuring and Related Cost, Cost Incurred to Date 1,281.4    
Restructuring and Related Cost, Expected Cost 1,450.2    
PP&E and Related Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 598.2 333.0 11.2
Restructuring and Related Cost, Cost Incurred to Date 987.3    
Restructuring and Related Cost, Expected Cost 987.3    
Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 66.3 20.9 15.3
Restructuring and Related Cost, Cost Incurred to Date 116.7    
Restructuring and Related Cost, Expected Cost 119.9    
Other Restructuring Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 139.4 19.6 1.1
Restructuring and Related Cost, Cost Incurred to Date 177.4    
Restructuring and Related Cost, Expected Cost 343.0    
Corporate, Non-Segment [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 16.1 10.3 4.7
Restructuring and Related Cost, Cost Incurred to Date 35.4    
Restructuring and Related Cost, Expected Cost 41.0    
Corporate, Non-Segment [Member] | PP&E and Related Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 0.6 2.0 8.8
Restructuring and Related Cost, Cost Incurred to Date 11.4    
Restructuring and Related Cost, Expected Cost 11.4    
Corporate, Non-Segment [Member] | Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 3.2 3.0 0.9
Restructuring and Related Cost, Cost Incurred to Date 7.2    
Restructuring and Related Cost, Expected Cost 7.2    
Corporate, Non-Segment [Member] | Other Restructuring Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 12.3 5.3 (5.0)
Restructuring and Related Cost, Cost Incurred to Date 16.8    
Restructuring and Related Cost, Expected Cost 22.4    
Corrugated Packaging [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 23.9 (14.7) 9.3
Restructuring and Related Cost, Cost Incurred to Date 43.4    
Restructuring and Related Cost, Expected Cost 60.8    
Corrugated Packaging [Member] | PP&E and Related Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 9.4 (17.8) 1.7
Restructuring and Related Cost, Cost Incurred to Date 13.1    
Restructuring and Related Cost, Expected Cost 13.1    
Corrugated Packaging [Member] | Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 10.5 0.5 4.7
Restructuring and Related Cost, Cost Incurred to Date 20.2    
Restructuring and Related Cost, Expected Cost 20.4    
Corrugated Packaging [Member] | Other Restructuring Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 4.0 2.6 2.9
Restructuring and Related Cost, Cost Incurred to Date 10.1    
Restructuring and Related Cost, Expected Cost 27.3    
Consumer Packaging [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 28.9 8.9 13.3
Restructuring and Related Cost, Cost Incurred to Date 66.2    
Restructuring and Related Cost, Expected Cost 73.3    
Consumer Packaging [Member] | PP&E and Related Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 4.3   0.5
Restructuring and Related Cost, Cost Incurred to Date 6.5    
Restructuring and Related Cost, Expected Cost 6.5    
Consumer Packaging [Member] | Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 20.5 6.2 9.7
Restructuring and Related Cost, Cost Incurred to Date 45.4    
Restructuring and Related Cost, Expected Cost 46.7    
Consumer Packaging [Member] | Other Restructuring Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 4.1 2.7 3.1
Restructuring and Related Cost, Cost Incurred to Date 14.3    
Restructuring and Related Cost, Expected Cost 20.1    
Global Paper [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 723.4 368.0 0.3
Restructuring and Related Cost, Cost Incurred to Date 1,123.6    
Restructuring and Related Cost, Expected Cost 1,260.0    
Global Paper [Member] | PP&E and Related Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 583.9 348.8 0.2
Restructuring and Related Cost, Cost Incurred to Date 956.3    
Restructuring and Related Cost, Expected Cost 956.3    
Global Paper [Member] | Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 30.5 11.2  
Restructuring and Related Cost, Cost Incurred to Date 42.1    
Restructuring and Related Cost, Expected Cost 43.8    
Global Paper [Member] | Other Restructuring Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 109.0 8.0 $ 0.1
Restructuring and Related Cost, Cost Incurred to Date 125.2    
Restructuring and Related Cost, Expected Cost 259.9    
Distribution [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 11.6 1.0  
Restructuring and Related Cost, Cost Incurred to Date 12.8    
Restructuring and Related Cost, Expected Cost 15.1    
Distribution [Member] | Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 1.6    
Restructuring and Related Cost, Cost Incurred to Date 1.8    
Restructuring and Related Cost, Expected Cost 1.8    
Distribution [Member] | Other Restructuring Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 10.0 $ 1.0  
Restructuring and Related Cost, Cost Incurred to Date 11.0    
Restructuring and Related Cost, Expected Cost $ 13.3    
v3.23.3
Restructuring and Other Costs - Schedule of Acquisition, Divestiture and Integration Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Restructuring Cost And Reserve [Line Items]      
Acquisition costs $ 26.1 $ 4.4 $ 0.5
Integration costs 9.1 0.7 1.7
Divestiture costs 20.1 4.4 0.8
Other total $ 55.3 $ 9.5 $ 3.0
v3.23.3
Restructuring and Other Costs - Schedule of Changes in Restructuring Accrual Charges (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Restructuring And Other Costs [Abstract]      
Accrual at beginning of fiscal year $ 25.2 $ 13.4 $ 17.2
Additional accruals 70.5 33.4 17.4
Payments (35.6) (15.9) (17.2)
Adjustment to accruals (4.6) (5.6) (2.1)
Foreign currency rate changes and other 0.0 (0.1) (1.9)
Accrual at end of fiscal year $ 55.5 $ 25.2 $ 13.4
v3.23.3
Restructuring and Other Costs - Schedule of Reconciliation of Accruals and Charges (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Restructuring And Other Costs [Abstract]      
Additional accruals and adjustments to accruals (see table above) $ 65.9 $ 27.8 $ 15.3
PP&E and related costs 598.2 333.0 11.2
Severance and other employee costs 0.4 0.5 0.3
Acquisition costs 26.1 4.4 0.5
Integration costs 9.1 0.7 1.7
Divestiture costs 20.1 4.4 0.8
Other restructuring costs 139.4 12.2 0.8
Restructuring and other costs, net $ 859.2 $ 383.0 $ 30.6
v3.23.3
Retirement Plans - Schedule of Allocation of Plan Assets - (Details) - Pension Plan [Member]
Sep. 30, 2023
Sep. 30, 2022
United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 100.00% 100.00%
Defined Benefit Plan, Actual Plan Asset Allocations 100.00% 100.00%
Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 100.00% 100.00%
Defined Benefit Plan, Actual Plan Asset Allocations 100.00% 100.00%
Equity Securities [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 18.00% 18.00%
Defined Benefit Plan, Actual Plan Asset Allocations 15.00% 18.00%
Equity Securities [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 22.00% 23.00%
Defined Benefit Plan, Actual Plan Asset Allocations 22.00% 21.00%
Fixed Income Investments [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 75.00% 73.00%
Defined Benefit Plan, Actual Plan Asset Allocations 73.00% 70.00%
Fixed Income Investments [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 74.00% 73.00%
Defined Benefit Plan, Actual Plan Asset Allocations 70.00% 73.00%
Short-term Investments [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 1.00% 1.00%
Defined Benefit Plan, Actual Plan Asset Allocations 3.00% 4.00%
Short-term Investments [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 1.00% 1.00%
Defined Benefit Plan, Actual Plan Asset Allocations 3.00% 2.00%
Other Investments [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 6.00% 8.00%
Defined Benefit Plan, Actual Plan Asset Allocations 9.00% 8.00%
Other Investments [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 3.00% 3.00%
Defined Benefit Plan, Actual Plan Asset Allocations 5.00% 4.00%
v3.23.3
Retirement Plans - Additional Information (Details) - USD ($)
 1 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Apr. 30, 2020
Feb. 29, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Defined Benefit Plan, Assumptions Used, Minimum Outstanding Par Value of Bonds Used to Determine Future Discount Rate     $ 100,000,000        
Defined benefit plan, accumulated benefit obligation     4,459,400,000 $ 4,779,100,000      
Multiemployer Plans, Withdrawal Obligation     $ 203,200,000 214,700,000      
Percentage of Employees Covered by Collective Bargaining Agreements     54.00%        
Percentage of Employees Covered under Collective Bargaining Agreements Operating Under Local Agreements Expiring in One Year     25.00%        
Percentage of Employees Governed under Expired Local Contracts     11.00%        
Defined Contribution Plan Employer Contribution on Basic Salary, Maximum, High End of Range     7.50%        
Defined Contribution Plan Employer Contribution on Basic Salary, Automatic Matching Contribution     2.50%        
Defined Contribution Plan Employer Contribution on Basic Salary, Employees Covered under a CBA, Maximum, Low End of Range     3.00%        
Defined Contribution Plan Employer Contribution on Basic Salary, Employees Covered under a CBA, Maximum, High End of Range     4.00%        
Defined Contribution Plan, Cost     $ 163,700,000 $ 169,500,000 $ 164,700,000    
Pace Industry Union Management Pension Fund [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Multiemployer Plans, Withdrawal Obligation $ 170,300,000            
Withdrawal obligation, per month $ 700,000            
Periods of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal 20 years            
Withdrawal obligation accumulated funding deficiency             $ 51,200,000
Subsidiary [Member] | Pace Industry Union Management Pension Fund [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Withdrawal obligation accumulated funding deficiency           $ 1,300,000  
Minimum [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Adjustment to Pri-2012 mortality tables with specific gender and job classification     6.00% 7.00% 6.00%    
Maximum [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Adjustment to Pri-2012 mortality tables with specific gender and job classification     16.00% 14.00% 13.00%    
Defined Contribution Plan Employer Contribution on Basic Salary, Matching Contribution     5.00%        
Pension Plan [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year     $ 25,000,000        
Pension Plan [Member] | United States [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets     6.50% 5.75% 6.00%    
Pension Plan [Member] | United States [Member] | Non-Qualified Plans [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Defined benefit plan, plan with benefit obligation in excess of plan assets, benefit obligation     $ 110,800,000        
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation     110,800,000        
Defined benefit plan, plan with benefit obligation in excess of plan assets, fair value of plan assets     $ 0        
Pension Plan [Member] | United States [Member] | Scenario Forecast [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets   6.75%          
Pension Plan [Member] | Foreign Plan [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets     5.08% 3.81% 3.73%    
Pension Plan [Member] | Foreign Plan [Member] | Non-Qualified Plans [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Defined benefit plan, plan with benefit obligation in excess of plan assets, benefit obligation     $ 252,300,000        
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation     236,100,000        
Defined benefit plan, plan with benefit obligation in excess of plan assets, fair value of plan assets     153,200,000        
Pension Plan [Member] | Foreign Plan [Member] | Scenario Forecast [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets   5.33%          
Other Pension, Postretirement and Supplemental Plans [Member]              
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]              
Pension and other postretirement plans, assets     152,400,000        
Pension and other postretirement plans, liabilities     $ 146,400,000        
v3.23.3
Retirement Plans - Schedule of Weighted-Average Assumptions Used to Measure Benefit Plan Obligations (Details)
Sep. 30, 2023
Sep. 30, 2022
Pension Plan [Member] | United States [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate 6.24% 5.63%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Interest crediting rate 4.01% 3.08%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase 2.50% 2.50%
Pension Plan [Member] | Foreign Plan [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate 5.85% 5.12%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase 2.87% 2.97%
Other Postretirement Benefits Plan [Member] | United States [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate 6.21% 5.57%
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate 8.14% 7.56%
v3.23.3
Retirement Plans - Schedule of Changes in Benefit Obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Prepaid pension asset $ 618.3 $ 440.3  
Pension liabilities, net of current portion (191.2) (189.4)  
Postretirement benefit liabilities, net of current portion (99.1) (105.4)  
Pension Plan [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Service cost 29.2 47.8 $ 51.1
Interest cost 259.0 188.2 187.3
Pension Plan [Member] | United States [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of fiscal year 3,866.5 5,239.1  
Service cost 22.6 40.8  
Interest cost 208.7 152.1  
Amendments 2.0 0.3  
Actuarial gain (240.8) (1,317.1)  
Plan participant contributions 0.0 0.0  
Benefits paid (270.3) (246.9)  
Curtailments 0.0 0.0  
Settlements (0.7) (1.8)  
Business (divestitures) and acquisitions (40.9) 0.0  
Foreign currency rate changes 0.0 0.0  
Benefit obligation at end of fiscal year 3,547.1 3,866.5 5,239.1
Fair value of plan assets at beginning of fiscal year 4,109.9 5,627.0  
Actual gain (loss) on plan assets 173.3 (1,281.4)  
Employer contributions 17.2 13.0  
Plan participant contributions 0.0 0.0  
Benefits paid (270.3) (246.9)  
Settlements (0.7) (1.8)  
Business divestitures (32.3) 0.0  
Foreign currency rate changes 0.0 0.0  
Fair value of plan assets at end of fiscal year 3,997.1 4,109.9 5,627.0
Funded (unfunded) status 450.0 243.4  
Prepaid pension asset 560.9 379.1  
Other current liabilities (11.1) (11.7)  
Pension liabilities, net of current portion (99.8) (124.0)  
Over (under) funded status at end of fiscal year 450.0 243.4  
Pension Plan [Member] | Foreign Plan [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of fiscal year 935.3 1,438.5  
Service cost 6.6 7.0  
Interest cost 50.3 36.1  
Amendments 0.0 0.0  
Actuarial gain (59.8) (340.1)  
Plan participant contributions 1.4 1.7  
Benefits paid (73.6) (77.6)  
Curtailments 0.0 0.2  
Settlements (0.5) (2.4)  
Business (divestitures) and acquisitions 34.9 0.0  
Foreign currency rate changes 43.1 (128.1)  
Benefit obligation at end of fiscal year 937.7 935.3 1,438.5
Fair value of plan assets at beginning of fiscal year 929.7 1,455.7  
Actual gain (loss) on plan assets (15.5) (322.1)  
Employer contributions 11.0 8.2  
Plan participant contributions 1.4 1.7  
Benefits paid (73.6) (77.6)  
Settlements (0.5) (2.5)  
Business divestitures 0.0 0.0  
Foreign currency rate changes 43.5 (133.7)  
Fair value of plan assets at end of fiscal year 896.0 929.7 1,455.7
Funded (unfunded) status (41.7) (5.6)  
Prepaid pension asset 57.4 61.2  
Other current liabilities (7.7) (1.4)  
Pension liabilities, net of current portion (91.4) (65.4)  
Over (under) funded status at end of fiscal year (41.7) (5.6)  
Other Postretirement Benefits Plan [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Service cost 0.8 1.0 1.2
Interest cost 7.2 6.4 5.9
Other Postretirement Benefits Plan [Member] | United States [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of fiscal year 68.5 86.4  
Service cost 0.5 0.6  
Interest cost 3.5 2.6  
Actuarial gain (7.2) (16.3)  
Benefits paid (5.9) (4.8)  
Curtailments (0.1) 0.0  
Foreign currency rate changes 0.0 0.0  
Benefit obligation at end of fiscal year 59.3 68.5 86.4
Fair value of plan assets at beginning of fiscal year 0.0 0.0  
Employer contributions 5.9 4.8  
Benefits paid (5.9) (4.8)  
Fair value of plan assets at end of fiscal year 0.0 0.0 0.0
Funded (unfunded) status (59.3) (68.5)  
Other current liabilities (7.9) (8.7)  
Postretirement benefit liabilities, net of current portion (51.4) (59.8)  
Over (under) funded status at end of fiscal year (59.3) (68.5)  
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of fiscal year 48.3 58.3  
Service cost 0.3 0.4  
Interest cost 3.7 3.8  
Actuarial gain (1.0) (9.8)  
Benefits paid (2.8) (2.8)  
Curtailments 0.0 0.0  
Foreign currency rate changes 2.1 (1.6)  
Benefit obligation at end of fiscal year 50.6 48.3 58.3
Fair value of plan assets at beginning of fiscal year 0.0 0.0  
Employer contributions 2.8 2.8  
Benefits paid (2.8) (2.8)  
Fair value of plan assets at end of fiscal year 0.0 0.0 $ 0.0
Funded (unfunded) status (50.6) (48.3)  
Other current liabilities (2.9) (2.7)  
Postretirement benefit liabilities, net of current portion (47.7) (45.6)  
Over (under) funded status at end of fiscal year $ (50.6) $ (48.3)  
v3.23.3
Retirement Plans - Schedule of Amounts in Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Pension Plan [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial loss (gain) $ 632.2 $ 849.8
Prior service cost (credit) 27.9 34.6
Total accumulated other comprehensive income 660.1 884.4
Pension Plan [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial loss (gain) 149.7 155.6
Prior service cost (credit) 1.6 1.8
Total accumulated other comprehensive income 151.3 157.4
Other Postretirement Benefits Plan [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial loss (gain) (35.7) (32.2)
Prior service cost (credit) (1.4) (2.3)
Total accumulated other comprehensive income (37.1) (34.5)
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial loss (gain) (5.0) (4.8)
Prior service cost (credit) 0.8 1.0
Total accumulated other comprehensive income $ (4.2) $ (3.8)
v3.23.3
Retirement Plans - Schedule of Amounts Recognized in Other Comprehensive (Income) Loss (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Defined Benefit Plan Disclosure [Line Items]      
Net actuarial (gain) loss arising during period $ (161.6) $ 289.1 $ (222.2)
Amortization and settlement recognition of net actuarial (loss) gain (53.5) (8.4) (33.9)
Prior service cost (credit) arising during period 2.0 0.2 5.6
Amortization of prior service (cost) credit (7.6) (8.2) (6.0)
Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Net actuarial (gain) loss arising during period (153.3) 315.3 (208.0)
Amortization and settlement recognition of net actuarial (loss) gain (58.1) (8.9) (34.5)
Prior service cost (credit) arising during period 2.0 0.2 5.6
Amortization of prior service (cost) credit (8.2) (8.9) (8.4)
Net other comprehensive (income) loss recognized (217.6) 297.7 (245.3)
Other Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Net actuarial (gain) loss arising during period (8.3) (26.2) (14.2)
Amortization and settlement recognition of net actuarial (loss) gain 4.6 0.5 0.6
Amortization of prior service (cost) credit 0.6 0.7 2.4
Net other comprehensive (income) loss recognized $ (3.1) $ (25.0) $ (11.2)
v3.23.3
Retirement Plans - Summary of Components of Net Pension Cost (Income) and Summary of Components of Postretirement Benefit Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 29.2 $ 47.8 $ 51.1
Interest cost 259.0 188.2 187.3
Expected return on plan assets $ (305.2) $ (368.6) $ (368.1)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component
Amortization of net actuarial loss (gain) $ 57.9 $ 8.8 $ 34.2
Amortization of prior service cost (credit) $ 8.2 $ 8.4 $ 8.4
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component
Curtailment loss (gain) $ 0.0 $ 0.5 $ 0.0
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component
Settlement loss (gain) $ 0.0 $ 0.1 $ 0.4
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component
Company defined benefit plan cost (income) $ 49.1 $ (114.8) $ (86.7)
Multiemployer and other plans 1.5 1.5 1.6
Net pension cost (income) 50.6 (113.3) (85.1)
Other Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 0.8 1.0 1.2
Interest cost 7.2 6.4 5.9
Amortization of net actuarial loss (gain) (4.6) (0.5) (0.6)
Amortization of prior service cost (credit) (0.6) (0.7) (2.4)
Curtailment loss (gain) (0.1) 0.0 0.0
Net pension cost (income) $ 2.7 $ 6.2 $ 4.1
v3.23.3
Retirement Plans - Schedule of Weighted-Average Assumptions Used in Calculation of Benefit Plan Expense (Details)
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Pension Plan [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate 5.62% 2.99% 3.01%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Interest crediting rate 3.08% 3.48% 3.47%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Cost, Rate of Compensation Increase 2.50% 2.50% 2.50%
Expected long-term rate of return on plan assets 6.50% 5.75% 6.00%
Pension Plan [Member] | Foreign Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate 5.12% 2.63% 2.16%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Cost, Rate of Compensation Increase 2.97% 2.65% 2.68%
Expected long-term rate of return on plan assets 5.08% 3.81% 3.73%
Other Postretirement Benefits Plan [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate 5.57% 2.98% 3.00%
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate 7.56% 6.45% 4.84%
v3.23.3
Retirement Plans - Schedule of Estimated Benefit Payments (Details)
$ in Millions
Sep. 30, 2023
USD ($)
Pension Plan [Member] | United States [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2024 $ 273.0
Fiscal 2025 277.2
Fiscal 2026 283.1
Fiscal 2027 286.4
Fiscal 2028 280.3
Fiscal Years 2029 - 2033 1,415.0
Pension Plan [Member] | Foreign Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2024 93.2
Fiscal 2025 72.5
Fiscal 2026 72.4
Fiscal 2027 72.6
Fiscal 2028 72.5
Fiscal Years 2029 - 2033 366.8
Other Postretirement Benefits Plan [Member] | United States [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2024 7.9
Fiscal 2025 6.9
Fiscal 2026 6.4
Fiscal 2027 5.9
Fiscal 2028 5.6
Fiscal Years 2029 - 2033 24.2
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2024 2.9
Fiscal 2025 3.1
Fiscal 2026 3.2
Fiscal 2027 3.2
Fiscal 2028 3.3
Fiscal Years 2029 - 2033 $ 18.2
v3.23.3
Retirement Plans - Summary of Pension Plan Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at NAV $ 793.5 $ 1,440.5
Fair Value, Measurements, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets 4,893.1 5,039.6
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value Investments 4,099.6 3,599.1
Assets measured at NAV [1] 793.5 1,440.5
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value Investments 1,063.2 513.9
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value Investments 3,036.4 3,085.2
Fair Value, Measurements, Recurring [Member] | US Equity Securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [2] 466.1 150.7
Fair Value, Measurements, Recurring [Member] | US Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [2] 466.1 150.7
Fair Value, Measurements, Recurring [Member] | Non US Equity Securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [2] 235.4 85.9
Fair Value, Measurements, Recurring [Member] | Non US Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [2] 235.4 85.9
Fair Value, Measurements, Recurring [Member] | Non-US government securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [3] 48.1 74.5
Fair Value, Measurements, Recurring [Member] | Non-US government securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [3] 48.1 74.5
Fair Value, Measurements, Recurring [Member] | US Corporate Bonds [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [3] 2,301.0 2,173.7
Fair Value, Measurements, Recurring [Member] | US Corporate Bonds [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [3] 194.9 95.4
Fair Value, Measurements, Recurring [Member] | US Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [3] 2,106.1 2,078.3
Fair Value, Measurements, Recurring [Member] | Non-US corporate bonds [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [3] 503.4 545.0
Fair Value, Measurements, Recurring [Member] | Non-US corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [3] 503.4 545.0
Fair Value, Measurements, Recurring [Member] | Other Fixed Income Securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [4] 208.2 223.1
Fair Value, Measurements, Recurring [Member] | Other Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [4] 208.2 223.1
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [5] 166.8 181.9
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [5] 166.8 181.9
Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [6] 170.6 164.3
Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plan, Fair Value of Plan Assets [6] $ 170.6 $ 164.3
[1] Investments that are measured at net asset value (“NAV”) (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.
[2] Equity securities are comprised of the following investment types: (i) common stock, (ii) preferred stock, and (iii) equity exchange traded funds. Level 1 investments in common and preferred stocks and exchange traded funds are valued using quoted market prices multiplied by the number of shares owned.
[3] The level 1 non-U.S. government securities investment is an exchange cleared swap valued using quoted market prices. The level 1 U.S. corporate bonds category is primarily comprised of U.S. dollar denominated investment grade securities and valued using quoted market prices. Level 2 investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data.
[4] Other fixed income is comprised of municipal and asset-backed securities. Investments are valued utilizing a market approach that includes various valuation techniques and sources, such as broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads and/or other applicable reference data.
[5] Short-term investments are valued at $1.00/unit, which approximates fair value. Amounts are generally invested in interest-bearing accounts.
[6] U.S. government securities include treasury and agency debt. These investments are valued using broker quotes in an active market.
v3.23.3
Retirement Plans - Summary of Pension Plan Assets Measured at Fair Value on Recurring Basis (Parenthetical) (Details) - $ / shares
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Retirement Plans [Abstract]    
Short-term investments per units $ 1 $ 1
v3.23.3
Retirement Plans - Summary of Assets Measured at Fair Value Based on NAV Per Share (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plans, Fair Value of Plan Assets $ 793.5 $ 1,440.5
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments 206.3 199.7
Hedge Funds [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plans, Fair Value of Plan Assets [1] $ 42.7 $ 26.4
Hedge Funds [Member] | Maximum [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period [1] 30 days 30 days
Equity Securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plans, Fair Value of Plan Assets [2] $ 385.5 $ 1,031.9
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments [2] 206.3 $ 199.7
Equity Securities [Member] | Maximum [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period [2]   60 days
Fixed Income Securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plans, Fair Value of Plan Assets [3] $ 365.3 $ 382.2
Fixed Income Securities [Member] | Maximum [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period [3] 10 days 10 days
[1] Hedge fund investments are primarily made through shares of limited partnerships or similar structures. Hedge funds are typically valued monthly by third-party administrators that have been appointed by the funds’ general partners.
[2] Commingled fund investments are valued at the NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques. The redemption frequency is reflected as various and the redemption notice period at September 30, 2023 is not applicable because certain investments do not allow redemptions until the investments are terminated or closed.
[3] Fixed income and fixed income related instruments consist of commingled debt funds, which are valued at their NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques.
v3.23.3
Retirement Plans - Schedule of Health Care Cost Trend Rates (Details) - Other Postretirement Benefits Plan [Member]
 12 Months Ended
Sep. 30, 2023
United States [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Health care cost trend rate assumed for next year 4.97%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.00%
Year the rate reaches the ultimate trend rate 2047
Foreign Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Health care cost trend rate assumed for next year 5.88%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.88%
Year the rate reaches the ultimate trend rate 2023
v3.23.3
Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
United States $ (1,586.3) $ 860.4 $ 822.4
Foreign (118.3) 358.4 263.5
(Loss) income before income taxes (1,704.6) 1,218.8 1,085.9
Deferred income taxes:      
Total deferred benefit (475.2) (98.2) (38.3)
Total income tax (benefit) expense (60.4) 269.6 243.4
Continuing Operations [Member]      
Current income taxes:      
Federal 250.6 205.2 171.2
State 49.1 44.9 27.2
Foreign 115.1 116.1 78.4
Total current expense 414.8 366.2 276.8
Deferred income taxes:      
Federal (364.8) (67.3) (39.0)
State (57.5) (16.2) (10.2)
Foreign (52.9) (13.1) 15.8
Total deferred benefit (475.2) (96.6) (33.4)
Total income tax (benefit) expense $ (60.4) $ 269.6 $ 243.4
v3.23.3
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Income Taxes [Line Items]        
Income taxes, cash paid net $ 321,600 $ 335,200 $ 271,900  
Deferred income tax liabilities:        
Operating Loss Carryforwards $ 1,800 1,200    
Operating loss carryforward expiration Sep. 30, 2031      
Deferred income tax assets:        
Federal and foreign net operating loss carryforwards $ 186,500 165,800    
Undistributed Foreign Earnings 1,300,000      
Balance at end of fiscal year 405,100 195,500 199,500 $ 206,700
Unrecognized Tax Benefits that Would Impact Effective Tax Rate 400,600 188,100    
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued 100,200 85,000    
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense 8,000 3,800 $ 4,400  
Decrease in Unrecognized Tax Benefits is Reasonably Possible 500      
State and Local Jurisdiction [Member]        
Deferred income tax liabilities:        
Operating Loss Carryforwards 861,000 969,000    
Operating Loss Carryforwards, Valuation Allowance 17,800 17,700    
Deferred income tax assets:        
State net operating loss carryforwards 36,600 43,600    
Tax Credit Carryforward, Deferred Tax Asset 89,300 89,700    
Tax credit carryforward, valuation allowance 81,000 81,100    
Foreign Country [Member]        
Deferred income tax liabilities:        
Operating Loss Carryforwards 760,600 667,200    
Operating Loss Carryforwards, Valuation Allowance 156,600 143,800    
Deferred income tax assets:        
Federal and foreign net operating loss carryforwards $ 189,800 $ 165,500    
Minimum [Member] | State and Local Jurisdiction [Member]        
Deferred income tax liabilities:        
Operating loss carryforward expiration Sep. 30, 2024      
Tax Credit Carryforward, Years to Expiration 5 years      
Minimum [Member] | Foreign Country [Member]        
Deferred income tax liabilities:        
Operating loss carryforward expiration Sep. 30, 2024      
Maximum [Member] | State and Local Jurisdiction [Member]        
Deferred income tax liabilities:        
Operating loss carryforward expiration Sep. 30, 2042      
Tax Credit Carryforward, Years to Expiration 10 years      
Maximum [Member] | Foreign Country [Member]        
Deferred income tax liabilities:        
Operating loss carryforward expiration Sep. 30, 2042      
v3.23.3
Income Taxes Effective Tax Rate Reconciliation (Details)
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Income Taxes [Abstract]      
Statutory federal tax rate 21.00% [1] 21.00% 21.00%
Foreign rate differential 1.00% [1] 2.10% 0.90%
Adjustment and resolution of federal, state and foreign tax uncertainties 0.20% [1] (0.40%) 0.10%
State taxes, net of federal benefit 0.90% [1] 1.60% 2.00%
Excess tax benefit related to stock compensation (0.20%) [1] 0.10% 0.20%
Research and development and other tax credits, net of reserves 0.50% [1] (1.20%) (0.50%)
Income (loss) attributable to noncontrolling interest 0.10% [1] (0.10%) 0.10%
Change in valuation allowance (0.90%) [1] 0.70% 2.80%
Goodwill impairment [1] (20.20%)    
Nontaxable increased cash surrender value 0.50% [1]   (1.10%)
Withholding taxes (0.10%) [1] 0.50% 0.20%
Foreign derived intangible income 0.70% [1] (1.00%) (1.20%)
Deferred rate change 0.20% [1] (0.60%) (1.00%)
Brazilian net worth deduction   (1.10%) (0.70%)
Other, net (0.20%) [1] 0.50% (0.40%)
Effective tax rate 3.50% [1] 22.10% 22.40%
[1] Certain signs within the table in fiscal 2023 are the opposite compared to fiscal 2022 and 2021 as a result of applying each line’s total income tax benefit or expense to the loss before income taxes.
v3.23.3
Income Taxes Deferred Taxes (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Deferred income tax assets:    
Accruals and allowances $ 14.9  
Employee related accruals and allowances 109.2 $ 107.6
State net operating loss carryforwards, net of federal benefit 36.6 43.6
State credit carryforwards, net of federal benefit 89.3 89.7
Federal and foreign net operating loss carryforwards 186.5 165.8
Restricted stock and options 23.4 26.7
Lease liabilities 177.3 177.4
Capitalized research and experimental costs 79.8  
Other 69.6 44.6
Deferred Tax Assets, Gross 786.6 655.4
Deferred income tax liabilities:    
Accruals and allowances   9.0
Property, plant and equipment 1,532.4 1,669.5
Deductible intangibles and goodwill 596.5 724.1
Inventory reserves 231.9 261.4
Deferred gain 272.5 272.8
Basis difference in joint ventures 4.5 35.9
Pension 48.8 2.7
Right-of-use assets 161.0 166.1
Deferred Tax Liabilities, Gross 2,847.6 3,141.5
Valuation allowances 271.9 248.8
Net deferred income tax liability 2,332.9 2,734.9
Long-term deferred tax asset [1] 100.3 27.0
Long-term deferred tax liability 2,433.2 2,761.9
Net deferred income tax liability $ 2,332.9 $ 2,734.9
[1] The long-term deferred tax asset is presented in Other noncurrent assets on the consolidated balance sheets.
v3.23.3
Income Taxes Valuation Allowance Against Deferred Tax Assets (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Movement in Deferred Tax Asset Valuation Allowance [Roll Forward]      
Balance at beginning of fiscal year $ 248.8 $ 277.5 $ 257.5
Increases 29.0 12.3 22.2
Reductions (5.9) (41.0) (2.2)
Balance at end of fiscal year $ 271.9 $ 248.8 $ 277.5
v3.23.3
Income Taxes Unrecognized Tax Benefit (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of fiscal year $ 195.5 $ 199.5 $ 206.7
Additions for tax positions taken in current year 4.5 1.8 2.7
Additions for tax positions taken in prior fiscal years 14.2 27.6 10.8
Reclassification to unrecognized tax benefit [1] 221.9    
Reductions for tax positions taken in prior fiscal years (1.3)    
Reductions due to settlement (2.5) (0.8)  
Additions (reductions) for currency translation adjustments 2.4 (1.1) 1.5
Reductions as a result of a lapse of the applicable statute of limitations (29.6) (31.5) (22.2)
Balance at end of fiscal year $ 405.1 $ 195.5 $ 199.5
[1] During the fourth quarter of fiscal 2023, we undertook certain internal transactions to bring the legal entity that acquired Grupo Gondi into the affiliated group of companies electing to file a U.S. consolidated federal income tax return. As a result of those transactions and in accordance with the requirements of ASC 740, we recorded an addition for gross unrecognized tax benefits of $221.9 million related to the deferred gain on Timber Notes (as hereinafter defined). See “Note 17. Special Purpose Entities” for additional information.
v3.23.3
Income Taxes - Income Taxes Unrecognized Tax Benefit (Parenthetical) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Sep. 30, 2023
Income Taxes [Line Items]    
Addition for gross unrecognized tax benefits related to deferred gain [1]   $ 221.9
Timber Notes [Member]    
Income Taxes [Line Items]    
Addition for gross unrecognized tax benefits related to deferred gain $ 221.9  
[1] During the fourth quarter of fiscal 2023, we undertook certain internal transactions to bring the legal entity that acquired Grupo Gondi into the affiliated group of companies electing to file a U.S. consolidated federal income tax return. As a result of those transactions and in accordance with the requirements of ASC 740, we recorded an addition for gross unrecognized tax benefits of $221.9 million related to the deferred gain on Timber Notes (as hereinafter defined). See “Note 17. Special Purpose Entities” for additional information.
v3.23.3
Segment Information - Additional Information (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2023
USD ($)
Segment
Sep. 30, 2021
USD ($)
Sep. 30, 2022
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | Segment 4    
Goodwill impairment loss $ 1,893.0    
Goodwill impairment loss after tax 1,821.8    
Incremental work stoppage costs 80.4    
Losses at facility in process of closure 40.6    
COVID employee payments   $ 22.0  
Ransomware direct costs, net of insurance   18.9  
Displays Joint Venture [Member]      
Segment Reporting Information [Line Items]      
Gain on sale of joint venture 19.3    
Mexico Acquisition [Member]      
Segment Reporting Information [Line Items]      
Non-cash Pre-tax loss on acquisition 46.8    
Seven Hills Mill [Member]      
Segment Reporting Information [Line Items]      
Gain on sale of joint venture 7.6    
Corrugated Packaging [Member]      
Segment Reporting Information [Line Items]      
Goodwill impairment loss 514.3    
Gain on sale of joint venture 19.3    
Incremental work stoppage costs 2.6    
Losses at facility in process of closure 5.3    
Acquisition accounting inventory-related adjustments 7.6    
COVID employee payments   10.1  
Corrugated Packaging [Member] | Grupo Gondi Investment [Member]      
Segment Reporting Information [Line Items]      
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity     $ 101.8
Corrugated Packaging [Member] | Gondi, S.A. de C.V. [Member]      
Segment Reporting Information [Line Items]      
Non-cash Pre-tax loss on acquisition 46.8    
Global Paper Segment [Member]      
Segment Reporting Information [Line Items]      
Goodwill impairment loss 1,378.7    
Gain on sale of joint venture 4.3    
Incremental work stoppage costs 19.3    
Losses at facility in process of closure 32.6    
Acquisition accounting inventory-related adjustments 5.5    
Consumer Packaging [Member]      
Segment Reporting Information [Line Items]      
Incremental work stoppage costs 58.5    
COVID employee payments   8.7  
Corporate Segment [Member]      
Segment Reporting Information [Line Items]      
Business systems transformation costs $ 79.1    
Ransomware direct costs, net of insurance   13.0  
Corporate Segment [Member] | Former CEO [Member]      
Segment Reporting Information [Line Items]      
Accelerated compensation   $ 11.7  
v3.23.3
Segment Information - Schedule of Revenue from External Customers, Segment Income and Long-Lived Assets, by Geographical Areas (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales $ 20,310.0 $ 21,256.5 $ 18,746.1
Long-Lived Assets 11,711.7 10,781.0 11,246.1
United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 15,348.9 17,361.5 15,317.2
Long-Lived Assets 8,598.6 9,278.2 9,654.6
Canada [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 1,281.0 1,325.1 1,210.4
Long-Lived Assets 389.7 391.4 413.0
Latin America [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 2,081.8 1,045.6 745.4
Long-Lived Assets [1] 2,283.6 719.0 725.8
EMEA [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 1,256.1 1,150.5 1,106.0
Long-Lived Assets 376.7 320.4 364.9
Asia Pacific [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 342.2 373.8 367.1
Long-Lived Assets $ 63.1 $ 72.0 $ 87.8
[1] Includes operations in Mexico that are approximately 13.4% of total long-lived assets in fiscal 2023 following the Mexico Acquisition.
v3.23.3
Segment Information - Schedule of Revenue from External Customers, Segment Income and Long-Lived Assets, by Geographical Areas (Parenthetical) (Details)
Sep. 30, 2023
Mexico [Member]  
Revenues from External Customers and Long-Lived Assets [Line Items]  
Percentage of long-lived assets 13.40%
v3.23.3
Segment Information - Certain Financial Data for Segments (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Segment Reporting Information [Line Items]      
Net sales $ 20,310.0 $ 21,256.5 $ 18,746.1
Depreciation, depletion and amortization (1,535.8) (1,488.6) (1,460.0)
Multiemployer pension withdrawal income (expense) 12.1 (0.2) 2.9
Restructuring and other costs, net 859.2 383.0 30.6
Impairment of goodwill and other assets (1,893.0) (26.0)  
Non-allocated expenses (149.5) (82.6) (68.1)
Interest expense, net (417.9) (318.8) (372.3)
Gain (loss) on extinguishment of debt 10.5 (8.5) (9.7)
Other (expense) income, net (6.1) (11.0) 10.9
Gain on sale of RTS and Chattanooga 238.8    
Other adjustments (232.6) (4.5) (54.5)
(Loss) income before income taxes (1,704.6) 1,218.8 1,085.9
Depreciation, depletion and amortization 1,535.8 1,488.6 1,460.0
Other adjustments 232.6 4.5 54.5
Equity in income of unconsolidated entities 3.4 72.9 40.9
Assets 27,443.7 28,405.5 29,254.3
Intangibles, net 2,576.2 2,920.6 3,318.8
Capital expenditures 1,142.1 862.6 815.5
Equity method investments 45.3 480.4 453.3
Assets Held for Sale [Member]      
Segment Reporting Information [Line Items]      
Assets 91.5 34.4 10.9
Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 20,627.3 21,621.9 19,072.2
Adjusted EBITDA 3,128.1 3,542.0 3,067.3
Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net sales (317.3) (365.4) (326.1)
Corrugated Packaging [Member]      
Segment Reporting Information [Line Items]      
Assets 12,514.8 11,382.5 11,557.6
Intangibles, net 544.4 648.4 765.9
Capital expenditures 470.7 370.4 331.4
Equity method investments 44.5 479.3 434.4
Corrugated Packaging [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 10,054.9 9,307.6 8,400.5
Adjusted EBITDA 1,600.4 1,386.7 1,394.0
Depreciation, depletion and amortization 813.3 683.0 674.5
Other adjustments 39.5 (4.8) 13.3
Equity in income of unconsolidated entities (4.9) 70.3 36.7
Corrugated Packaging [Member] | Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net sales (280.3) (328.0) (305.3)
Corrugated Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 9,774.6 8,979.6 8,095.2
Consumer Packaging [Member]      
Segment Reporting Information [Line Items]      
Assets 6,393.4 6,704.5 6,757.3
Intangibles, net 1,381.1 1,523.5 1,719.2
Capital expenditures 293.7 202.1 192.7
Equity method investments 0.7 0.5 17.7
Consumer Packaging [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 4,941.8 4,965.2 4,433.9
Adjusted EBITDA 835.7 829.2 720.8
Depreciation, depletion and amortization 339.1 349.5 352.2
Other adjustments 60.4 7.7 11.7
Equity in income of unconsolidated entities   3.4 4.0
Consumer Packaging [Member] | Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net sales (30.7) (27.8) (20.3)
Consumer Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 4,911.1 4,937.4 4,413.6
Global Paper [Member]      
Segment Reporting Information [Line Items]      
Assets 5,019.3 7,039.2 7,527.6
Intangibles, net 534.5 612.6 677.7
Capital expenditures 282.4 238.6 259.4
Equity method investments   0.5 0.8
Global Paper [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 4,369.9 5,930.2 4,983.0
Adjusted EBITDA 655.0 1,246.4 883.7
Depreciation, depletion and amortization 350.7 425.1 405.9
Other adjustments 52.8 (0.6) 3.3
Global Paper [Member] | Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Equity in income of unconsolidated entities 8.3 (0.8) 0.2
Global Paper [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 4,369.9 5,930.2 4,983.0
Distribution [Member]      
Segment Reporting Information [Line Items]      
Assets 797.8 863.0 800.1
Intangibles, net 116.2 136.1 156.0
Capital expenditures 9.4 6.1 1.3
Distribution [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 1,260.7 1,418.9 1,254.8
Adjusted EBITDA 37.0 79.7 68.8
Depreciation, depletion and amortization 28.0 27.3 23.6
Other adjustments 0.2   0.6
Distribution [Member] | Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net sales (6.3) (9.6) (0.5)
Distribution [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 1,254.4 1,409.3 1,254.3
Corporate Segment [Member]      
Segment Reporting Information [Line Items]      
Depreciation, depletion and amortization 4.7 3.7 3.8
Other adjustments 79.7 2.2 25.6
Assets 2,626.9 2,381.9 2,600.8
Capital expenditures 85.9 45.4 30.7
Equity method investments $ 0.1 $ 0.1 $ 0.4
v3.23.3
Segment Information - Changes in Carrying Amount of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year $ 5,895.2 $ 7,335.2 $ 7,338.2
Accumulated impairment losses, beginning of period   (1,376.0) (1,376.0)
Goodwill, beginning of fiscal year 5,895.2 5,959.2 5,962.2
Goodwill acquired 237.4 3.2  
Divestitures (47.1)    
Goodwill impairment (1,893.0)    
Goodwill disposed of     (16.4)
Translation and other adjustments 56.2 (67.2) 13.4
Goodwill, Gross end of fiscal year 6,141.7 5,895.2 7,335.2
Accumulated impairment losses, end of period (1,893.0)   (1,376.0)
Goodwill, end of fiscal year 4,248.7 5,895.2 5,959.2
Legacy Reportable Corrugated Packaging Segment [Member]      
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year   3,663.4 3,673.6
Accumulated impairment losses, beginning of period   (0.1) (0.1)
Goodwill, beginning of fiscal year   3,663.3 3,673.5
Goodwill disposed of     (16.4)
Segment recasting   (3,663.3)  
Translation and other adjustments     6.2
Goodwill, Gross end of fiscal year     3,663.4
Accumulated impairment losses, end of period     (0.1)
Goodwill, end of fiscal year     3,663.3
Legacy Reportable Consumer Packaging Segment [Member]      
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year   3,671.8 3,664.6
Accumulated impairment losses, beginning of period   (1,375.9) (1,375.9)
Goodwill, beginning of fiscal year   2,295.9 2,288.7
Segment recasting   (2,295.9)  
Translation and other adjustments     7.2
Goodwill, Gross end of fiscal year     3,671.8
Accumulated impairment losses, end of period     (1,375.9)
Goodwill, end of fiscal year     $ 2,295.9
New Reportable Corrugated Packaging Segment [Member]      
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year 2,802.8    
Goodwill, beginning of fiscal year 2,802.8    
Goodwill acquired 237.4 3.2  
Goodwill impairment (514.3)    
Segment recasting   2,834.8  
Translation and other adjustments 77.8 (35.2)  
Goodwill, Gross end of fiscal year 3,118.0 2,802.8  
Accumulated impairment losses, end of period (514.3)    
Goodwill, end of fiscal year 2,603.7 2,802.8  
New Reportable Consumer Packaging Segment [Member]      
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year 1,588.4    
Goodwill, beginning of fiscal year 1,588.4    
Divestitures (43.0)    
Segment recasting   1,603.3  
Translation and other adjustments (38.8) (14.9)  
Goodwill, Gross end of fiscal year 1,506.6 1,588.4  
Goodwill, end of fiscal year 1,506.6 1,588.4  
New Reportable Global Paper Segment [Member]      
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year 1,366.5    
Goodwill, beginning of fiscal year 1,366.5    
Divestitures (4.1)    
Goodwill impairment (1,378.7)    
Segment recasting   1,382.0  
Translation and other adjustments 16.3 (15.5)  
Goodwill, Gross end of fiscal year 1,378.7 1,366.5  
Accumulated impairment losses, end of period (1,378.7)    
Goodwill, end of fiscal year   1,366.5  
New Reportable Distribution Segment [Member]      
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year 137.5    
Goodwill, beginning of fiscal year 137.5    
Segment recasting   139.1  
Translation and other adjustments 0.9 (1.6)  
Goodwill, Gross end of fiscal year 138.4 137.5  
Goodwill, end of fiscal year $ 138.4 $ 137.5  
v3.23.3
Interest - Summary of Components of Interest Expense, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Interest Income (Expense), Net [Abstract]      
Interest expense $ (535.1) $ (375.6) $ (418.9)
Interest income 117.2 56.8 46.6
Interest expense, net $ (417.9) $ (318.8) $ (372.3)
v3.23.3
Interest - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Interest Income (Expense), Net [Abstract]      
Interest, net of amounts capitalized $ 452.2 $ 363.9 $ 384.7
Interest costs, capitalized during period $ 27.2 $ 11.1 $ 14.0
v3.23.3
Inventories - Schedule of Inventories (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Inventories [Abstract]    
Finished goods and work in process $ 1,044.9 $ 1,102.4
Raw materials 1,049.8 1,135.9
Supplies and spare parts 578.2 529.6
Inventories at FIFO cost 2,672.9 2,767.9
LIFO reserve (341.4) (450.8)
Net inventories $ 2,331.5 $ 2,317.1
v3.23.3
Inventories - Additional Information (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2023
USD ($)
Inventories [Abstract]  
Increase in cost of goods sold and LIFO reserve due to inflation $ 104.4
v3.23.3
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Property, plant and equipment at cost:    
Property, plant and equipment, at cost $ 21,876.2 $ 19,462.2
Less: accumulated depreciation, depletion and amortization (10,813.0) (9,380.8)
Property, plant and equipment, net 11,063.2 10,081.4
Land and Buildings [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 2,994.7 2,584.8
Machinery and Equipment [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 17,682.4 15,906.1
Forestlands [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 105.2 94.5
Transportation Equipment [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 27.3 24.2
Leasehold Improvements [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 98.8 97.0
Construction in Progress [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost $ 967.8 $ 755.6
v3.23.3
Property, Plant and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Property, Plant and Equipment [Abstract]      
Depreciation $ 1,163.4 $ 1,108.1 $ 1,069.7
Accrued additions to property, plant and equipment (in accounts payable) $ 165.2 $ 223.2 $ 108.5
v3.23.3
Other Intangible Assets - Schedule of Gross Carrying Amount and Accumulated Amortization Relating to Intangible Assets, Excluding Goodwill (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 15 years 10 months 24 days  
Gross Carrying Amount $ 4,997.0 $ 4,999.3
Accumulated Amortization $ (2,420.8) (2,078.7)
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 15 years 8 months 12 days  
Gross Carrying Amount $ 4,885.2 4,888.5
Accumulated Amortization $ (2,362.0) (2,038.1)
Trademarks and Trade Names [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 24 years 8 months 12 days  
Gross Carrying Amount $ 81.2 80.7
Accumulated Amortization $ (41.0) (26.2)
Technology and Patents [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 12 years 1 month 6 days  
Gross Carrying Amount $ 25.1 24.4
Accumulated Amortization $ (15.5) (12.9)
Licensing Costs [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 15 years 9 months 18 days  
Gross Carrying Amount $ 0.3 0.3
Accumulated Amortization (0.1) (0.1)
Noncompete Agreements [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1.9 1.9
Accumulated Amortization $ (1.9) (1.1)
Other [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 28 years  
Gross Carrying Amount $ 3.3 3.5
Accumulated Amortization $ (0.3) $ (0.3)
v3.23.3
Other Intangible Assets - Estimated Intangible Asset Amortization Expense (Details)
$ in Millions
Sep. 30, 2023
USD ($)
Other Intangible Assets [Abstract]  
Fiscal 2024 $ 324.2
Fiscal 2025 309.6
Fiscal 2026 302.9
Fiscal 2027 299.1
Fiscal 2028 $ 297.1
v3.23.3
Other Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Finite-Lived Intangible Assets [Line Items]      
Intangible Assets Amortization Expense $ 342.2 $ 351.1 $ 360.6
Packaging Equipment Leased to Customers [Member]      
Finite-Lived Intangible Assets [Line Items]      
Additional amortization expense $ 30.2 $ 29.4 $ 29.7
v3.23.3
Fair Value - Additional Information (Details) - USD ($)
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Sep. 11, 2023
Dec. 02, 2021
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]          
Facility termination of existing eligible receivables that may be sold       $ 700,000,000  
Maximum eligible receivables that may be sold       $ 700,000,000 $ 110,000,000
Receivables sold under accounts receivable monetization agreement $ 692,200,000 $ 724,700,000      
Goodwill impairment loss 1,893,000,000        
Mineral rights   0      
Expense related to sale of receivables $ 48,300,000 20,400,000 $ 11,100,000    
Mineral Rights [Member]          
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]          
Pre-tax non-cash impairment   $ 26,000,000      
Grupo Gondi Investment [Member]          
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]          
Charge on not exercising option to purchase additional equity interest in joint venture     $ 22,500,000    
v3.23.3
Fair Value - Summary of Accounts Receivable Sales Agreements (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Fair Value Disclosures [Abstract]    
Receivables sold to the financial institutions and derecognized $ (2,795.3) $ (2,954.8)
Receivables collected by financial institutions 2,827.8 2,896.0
Cash (payments to) proceeds from financial institutions $ (32.5) $ 58.8
v3.23.3
Debt - Schedule of Carrying Value and Weighted Average Interest Rate of Individual Components of Debt (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Debt Instrument [Line Items]    
Total debt $ 8,583.9 $ 7,787.2
Less: current portion of debt 533.0 212.2
Long-term debt due after one year $ 8,050.9 $ 7,575.0
Debt, Weighted Average Interest Rate 4.60% 4.20%
Commercial Paper [Member]    
Debt Instrument [Line Items]    
Total debt $ 283.9  
Debt, Weighted Average Interest Rate 5.60%  
Notes Due Fiscal 2024 To 2028 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 2,938.6 $ 3,433.4
Debt, Weighted Average Interest Rate 4.10% 4.00%
Notes Due Fiscal 2029 to 2033 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 2,739.5 $ 2,753.3
Debt, Weighted Average Interest Rate 4.50% 4.50%
Notes Due Fiscal 2037 to 2047 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 177.3 $ 177.8
Debt, Weighted Average Interest Rate 6.20% 6.20%
Term Loan Facilities [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 1,347.4 $ 598.2
Debt, Weighted Average Interest Rate 5.00% 3.10%
Revolving Credit and Swing Facilities [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 32.0 $ 286.3
Debt, Weighted Average Interest Rate 6.70% 1.90%
Receivables Securitization Facility [Member] | Secured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 425.0  
Debt, Weighted Average Interest Rate 6.40%  
Finance Lease Obligations [Member] | Secured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 472.6 $ 287.5
Debt, Weighted Average Interest Rate 5.10% 4.20%
Vendor Financing and Commercial Card Programs [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 105.7 $ 123.1
International and Other Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 61.9 $ 127.6
Debt, Weighted Average Interest Rate 9.60% 12.80%
v3.23.3
Debt - Additional Information (Details)
€ in Millions
 12 Months Ended
Sep. 26, 2023
USD ($)
Sep. 22, 2023
USD ($)
Feb. 28, 2023
USD ($)
Aug. 18, 2022
USD ($)
Jul. 07, 2022
USD ($)
Mar. 22, 2022
USD ($)
Sep. 10, 2021
USD ($)
Jan. 18, 2021
BRL (R$)
Apr. 10, 2019
BRL (R$)
Dec. 07, 2018
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2023
BRL (R$)
Sep. 30, 2022
BRL (R$)
Jul. 07, 2022
EUR (€)
Mar. 12, 2021
Debt Instrument [Line Items]                                  
Gain (Loss) on extinguishment of debt                     $ 10,500,000 $ (8,500,000) $ (9,700,000)        
Weighted average interest rate excluding fair value step-up                     5.20%     5.20%      
Unamortized fair market value step-up                     $ 157,000,000            
Unamortized fair market value step-up, weighted average remaining life                     9 years 1 month 6 days            
Letters of credit outstanding, amount                     $ 77,600,000            
Fair value of debt                     8,100,000,000 7,300,000,000          
Amortization of debt issuance costs                     7,100,000 7,300,000 $ 8,300,000        
Senior Unsecured Debt [Member] | U.S. Revolving Facility [Member]                                  
Debt Instrument [Line Items]                                  
Credit Facility, maximum borrowing capacity         $ 1,800,000,000                        
Senior Unsecured Debt [Member] | Multicurrency Revolving Facility [Member]                                  
Debt Instrument [Line Items]                                  
Credit Facility, maximum borrowing capacity         500,000,000                        
3.750% Senior Notes Due March 2025 [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, interest rate 3.75%                                
Debt instrument maturity period in Month and year 2025-03                                
Debt instrument, aggregate principal amount $ 600,000,000                                
4.650% Senior Notes Due March 2026 [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, interest rate 4.65%                                
Debt instrument maturity period in Month and year 2026-03                                
Debt instrument, aggregate principal amount $ 750,000,000                                
3.375% Senior Notes Due September 2027 [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, interest rate 3.375%                                
Debt instrument maturity period in Month and year 2027-09                                
Debt instrument, aggregate principal amount $ 500,000,000                                
4.000% Senior Notes Due March 2028 [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, interest rate 4.00%                                
Debt instrument maturity period in Month and year 2028-03                                
Debt instrument, aggregate principal amount $ 600,000,000                                
4.900% Senior Notes Due March 2029 [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, interest rate 4.90%                                
Debt instrument maturity period in Month and year 2029-03                                
Debt instrument, aggregate principal amount $ 750,000,000                                
3.00% Senior Notes Due September 2024 [Member]                                  
Debt Instrument [Line Items]                                  
Discharged amount of long term debt   $ 500,000,000                              
Debt instrument, interest rate   3.00%                              
Debt instrument maturity period in Month and year   2024-09                              
Gain (Loss) on extinguishment of debt   $ 10,500,000                              
4.00% Senior Notes Due March 2023 [Member]                                  
Debt Instrument [Line Items]                                  
Redemption amount of long term debt           $ 350,000,000                      
Debt instrument, interest rate           4.00%                      
Debt instrument maturity period in Month and year           2023-03                      
Gain (Loss) on extinguishment of debt           $ (8,200,000)                      
4.900% Senior Notes Due March 2022 [Member]                                  
Debt Instrument [Line Items]                                  
Redemption amount of long term debt             $ 400,000,000                    
Debt instrument, interest rate             4.90%                    
Debt instrument maturity period in Month and year             2022-03                    
Gain (Loss) on extinguishment of debt             $ (8,600,000)                    
Long-Term Committed Credit Facilities [Member] | Cash and Cash Equivalents [Member]                                  
Debt Instrument [Line Items]                                  
Line of credit facility, remaining borrowing capacity and cash and cash equivalents                     3,400,000,000            
Public Bond Obligations [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, aggregate principal amount                     5,700,000,000 6,200,000,000          
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Credit Facility, maximum borrowing capacity         $ 2,300,000,000                        
Debt instrument, term, in years         5 years                        
Long-term debt                     0 0          
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | SOFR Loans [Member]                                  
Debt Instrument [Line Items]                                  
Credit spread adjustment         0.10%                        
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member]                                  
Debt Instrument [Line Items]                                  
Percentage of fee paid on unused credit facility         0.225%                        
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | SONIA Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         1.50%                        
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | Canadian Prime Rate Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         0.50%                        
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Percentage of fee paid on unused credit facility         0.08%                        
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | SONIA Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         0.875%                        
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | Canadian Prime Rate Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         0.00%                        
Receivables Securitization Facility [Member] | Secured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, maximum borrowing capacity, amount                     700,000,000 700,000,000          
Long-term debt                     $ 425,000,000 $ 0          
Receivables backed financing, maximum borrowing amount     $ 700,000,000                            
Debt instrument, amended maturity date     Feb. 27, 2026                            
Restriction on Exclusion of Eligible Receivables of Specific Obligors, Aggregate Maximum Percentage                                 7.50%
Restriction on Exclusion of Eligible Receivables of Specific Obligors, Obligor Maximum Percentage of Aggregate Balance                                 2.50%
Asset Securitization Facility Commitment Fee Percentage                     0.25% 0.35%   0.25% 0.35%    
Receivables Securitization Facility [Member] | Secured Debt [Member] | SOFR Loans [Member]                                  
Debt Instrument [Line Items]                                  
Credit spread adjustment     0.10%                            
Variable rate basis     On February 28, 2023, we amended our existing $700.0 million receivables securitization agreement (the “Receivables Securitization Facility”), primarily to extend the maturity to February 27, 2026, and to complete the transition from LIBOR to Term SOFR. Term SOFR loans are subject to a credit spread adjustment equal to 0.10% per annum.                            
Receivables Securitization Facility [Member] | Collateralizing [Member] | Secured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Carrying amount of accounts receivable collateralizing maximum available borrowings                     $ 1,177,600,000 $ 1,390,500,000          
Commercial Paper | Unsecured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Aggregate Principal Amount of Short-term Unsecured Commercial Paper Program, Maximum                   $ 1,000,000,000.0              
Debt Instrument, notice period for termination                   30 days              
Borrowings outstanding                     283,900,000 0          
Commercial Paper | Unsecured Debt [Member] | Maximum [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, maturity period                   397 days              
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Credit Facility, maximum borrowing capacity | €                               € 700.0  
Debt instrument, term, in years         3 years                        
Long-term debt                     0 265,000,000          
Incremental line of credit | €                               € 100.0  
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | SOFR Loans [Member]                                  
Debt Instrument [Line Items]                                  
Credit spread adjustment         0.10%                        
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member]                                  
Debt Instrument [Line Items]                                  
Percentage of fee paid on unused credit facility         0.275%                        
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | SONIA Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         1.625%                        
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | Base Rate [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         0.625%                        
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Percentage of fee paid on unused credit facility         0.10%                        
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | SONIA Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         0.875%                        
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | Base Rate [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         0.00%                        
Farm Credit Facility [Member] | Senior Unsecured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Credit Facility, maximum borrowing capacity         $ 600,000,000                        
Debt instrument, term, in years         7 years                        
Long-term debt                     598,400,000 598,200,000          
Credit facility, amount of potential increase to the principal amount         $ 400,000,000                        
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | SOFR Loans [Member]                                  
Debt Instrument [Line Items]                                  
Credit spread adjustment         0.10%                        
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | SOFR Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         2.275%                        
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | Base Rate [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         1.275%                        
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | SOFR Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         1.65%                        
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | Base Rate [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin         0.65%                        
Delayed Draw Term Facility [Member] | Unsecured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Credit Facility, maximum borrowing capacity       $ 1,000,000,000                          
Credit facility option to extend maturity date, year       1 year                          
Credit facility maturity extension cost fee       0.20%                          
Debt instrument, term, in years       3 years                          
Long-term debt                     749,000,000            
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | SOFR Loans [Member]                                  
Debt Instrument [Line Items]                                  
Credit spread adjustment       0.10%                          
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | SOFR Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin       1.50%                          
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | Base Rate [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin       0.50%                          
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | SOFR Loans [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin       0.875%                          
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | Base Rate [Member]                                  
Debt Instrument [Line Items]                                  
Applicable margin       0.00%                          
Brazil Export Credit Note [Member] | Unsecured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Credit Facility, maximum borrowing capacity | R$               R$ 500,000,000.0                  
Credit facility, maturity date               Jan. 19, 2026                  
Long-term debt                     $ 29,400,000 $ 92,700,000   R$ 147,100,000 R$ 500,000,000.0    
Credit facility semiannual installments repayment beginning date               Jan. 19, 2023                  
Credit facility basis spread on floating rate               2.50%                  
Brazil Delayed Draw Credit Facilities [Member] | Unsecured Debt [Member] | Terminated [Member]                                  
Debt Instrument [Line Items]                                  
Credit Facility, maximum borrowing capacity | R$                 R$ 750,000,000.0                
Credit facility, maturity date                 Apr. 10, 2024                
Incremental line of credit | R$                 R$ 250,000,000.0                
Credit facility semiannual installments repayment beginning date                 Apr. 10, 2021                
Credit facility basis spread on floating rate                 1.50%                
v3.23.3
Debt - Schedule of Aggregate Maturities of Debt (Details) - Long-term Debt, Excluding Finance Lease Obligations [Member]
$ in Millions
Sep. 30, 2023
USD ($)
Debt Instrument [Line Items]  
Fiscal 2024 $ 469.7
Fiscal 2025 1,353.3
Fiscal 2026 1,178.1
Fiscal 2027 506.0
Fiscal 2028 1,100.9
Thereafter 3,379.7
Fair value of debt step-up, deferred financing costs and unamortized bond discounts 123.6
Total $ 8,111.3
v3.23.3
Leases - Schedule of Components of Lease Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Lease, Cost [Abstract]      
Operating lease costs $ 236.3 $ 218.1 $ 211.0
Variable and short-term lease costs 145.9 122.8 104.6
Sublease income (5.6) (6.1) (8.9)
Finance lease cost:      
Amortization of lease assets 16.1 15.1 9.6
Interest on lease liabilities 31.7 7.9 7.2
Total lease cost, net $ 424.4 $ 357.8 $ 323.5
v3.23.3
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Supplementary Information Balance Sheets [Abstract]    
Operating lease right-of-use asset $ 648.5 $ 699.6
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other noncurrent assets (amount related to SPEs of $382.7 and $1,253.0) Other noncurrent assets (amount related to SPEs of $382.7 and $1,253.0)
Current operating lease liabilities $ 202.4 $ 191.9
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities (amount related to SPEs of $776.7 and $0) Other current liabilities (amount related to SPEs of $776.7 and $0)
Noncurrent operating lease liabilities $ 499.7 $ 551.1
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other noncurrent liabilities (amount related to SPEs of $330.2 and $1,117.8) Other noncurrent liabilities (amount related to SPEs of $330.2 and $1,117.8)
Total operating lease liabilities $ 702.1 $ 743.0
Property, plant and equipment 400.6 177.4
Accumulated depreciation (105.3) (37.3)
Property, plant and equipment, net 295.3 140.1
Current finance lease liabilities $ 62.9 $ 14.5
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] Current portion of debt Current portion of debt
Noncurrent finance lease liabilities $ 409.7 $ 273.0
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Long-term debt due after one year Long-term debt due after one year
Total finance lease liabilities $ 472.6 $ 287.5
v3.23.3
Leases - Summary of Lease Term and Discount Rate (Details)
Sep. 30, 2023
Sep. 30, 2022
Weighted average remaining lease term:    
Operating leases 4 years 6 months 5 years
Finance leases 9 years 3 months 18 days 7 years 3 months 18 days
Weighted average discount rate:    
Operating leases 3.40% 2.70%
Finance leases 5.10% 4.20%
v3.23.3
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows related to operating leases $ 235.2 $ 214.8
Operating cash flows related to finance leases 16.0 8.8
Financing cash flows related to finance leases 31.6 14.8
ROU assets obtained in exchange for lease liabilities:    
Operating leases 156.3 184.6
Finance leases $ 50.1 $ 27.8
v3.23.3
Leases - Summary of Maturity of Lease Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Maturity Of Lease Liabilities [Abstract]    
Operating Leases, Fiscal 2024 $ 223.1  
Operating Leases, Fiscal 2025 173.6  
Operating Leases, Fiscal 2026 136.8  
Operating Leases, Fiscal 2027 100.4  
Operating Leases, Fiscal 2028 59.0  
Operating Leases, Thereafter 66.8  
Operating Leases, Total lease payments 759.7  
Operating Leases, Less: Interest [1] (57.6)  
Operating Leases, Present value of future lease payments 702.1 $ 743.0
Finance Leases, Fiscal 2024 97.4  
Finance Leases, Fiscal 2025 39.3  
Finance Leases, Fiscal 2026 37.5  
Finance Leases, Fiscal 2027 34.3  
Finance Leases, Fiscal 2028 112.5  
Finance Leases, Thereafter 352.6  
Finance Leases, Total lease payments 673.6  
Finance Leases, Less: Interest [1] (201.0)  
Finance Leases, Present value of future lease payments 472.6 $ 287.5
Fiscal 2024 320.5  
Fiscal 2025 212.9  
Fiscal 2026 174.3  
Fiscal 2027 134.7  
Fiscal 2028 171.5  
Thereafter 419.4  
Total lease payments 1,433.3  
Less: Interest [1] (258.6)  
Present value of future lease payments $ 1,174.7  
[1] Calculated using the interest rate for each lease.
v3.23.3
Derivatives - Additional Information (Details)
 12 Months Ended
Sep. 30, 2023
Natural Gas Commodity Hedge [Member] | Maximum [Member]  
Derivative [Line Items]  
Derivative hedging volume period 12 months
v3.23.3
Derivatives - Summary Of Outstanding Notional Amounts (Details)
BTU in Millions, $ in Millions
 12 Months Ended
Sep. 30, 2023
BTU
Sep. 30, 2022
MXN ($)
BTU
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Natural Gas Commodity Hedge [Member]    
Derivative [Line Items]    
Notional amount of natural gas derivatives | BTU 22.0 18.3
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]    
Derivative [Line Items]    
Outstanding notional amounts | $ [1]   8,000.0
[1] At September 30, 2022, the outstanding foreign currency exchange contract was related to the purchase of 8.0 billion Mexican pesos ($389.9 million) for refinancing the external debt acquired in the Mexico Acquisition on December 1, 2022.
v3.23.3
Derivatives - Summary Of Outstanding Notional Amounts (Parenthetical) (Details)
$ in Millions, $ in Billions
Dec. 01, 2022
Sep. 30, 2022
MXN ($)
Sep. 30, 2022
USD ($)
Mexico Acquisition [Member]      
Derivative [Line Items]      
Date of acquisition Dec. 01, 2022    
Foreign Exchange Contract [Member]      
Derivative [Line Items]      
Derivative notional amount   $ 8.0 $ 389.9
v3.23.3
Derivatives - Summary of Location and Fair Values of Derivative Instruments (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Natural Gas Commodity Hedge [Member]    
Derivative [Line Items]    
Derivative Liability [1] $ 6.3 $ 12.0
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Current Other Liabilities, Current
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]    
Derivative [Line Items]    
Derivative Asset   $ 3.4
Derivative Asset, Statement of Financial Position [Extensible Enumeration]   Other Assets, Current
[1] At September 30, 2023 and September 30, 2022, liability positions by counterparty were partially offset by $0.2 million and $2.3 million, respectively, of asset positions where we had an enforceable right of netting.
v3.23.3
Derivatives - Summary of Location and Fair Values of Derivative Instruments (Parenthetical) (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Asset positions offset with liability positions $ 0.2 $ 2.3
v3.23.3
Derivatives - Summary of Gains (Losses) Recognized in Accumulated Other Comprehensive Loss, Net of Tax for Cash Flow Hedges (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Derivative [Line Items]      
Gains (losses) recognized in accumulated other comprehensive loss, net of tax for cash flow hedges $ (54.4) $ (1.4) $ (5.5)
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Natural Gas Commodity Hedge [Member]      
Derivative [Line Items]      
Gains (losses) recognized in accumulated other comprehensive loss, net of tax for cash flow hedges $ 4.2 $ (8.9)  
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member]      
Derivative [Line Items]      
Gains (losses) recognized in accumulated other comprehensive loss, net of tax for cash flow hedges     $ 5.4
v3.23.3
Derivatives - Summary of Gains (Losses) Recognized in the Statements of Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Natural Gas Commodity Hedge [Member]      
Derivative [Line Items]      
Gains (losses) recognized in the statements of income for cash flow hedges reclassified from accumulated other comprehensive loss $ (72.6) $ (1.8)  
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of Goods and Services Sold Cost of Goods and Services Sold  
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member]      
Derivative [Line Items]      
Gains (losses) recognized in the statements of income for cash flow hedges reclassified from accumulated other comprehensive loss     $ (7.4)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]     Interest Income (Expense), Nonoperating, Net
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Income (Expense), Net [Member]      
Derivative [Line Items]      
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net $ 19.7    
v3.23.3
Special Purpose Entities - Additional Information (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Dec. 06, 2013
Dec. 31, 2007
Timber Notes [Member] | Level 2 [Member]        
Debt Instrument [Line Items]        
Fair value of restricted assets held by SPEs $ 1,257.2 $ 1,278.3    
Timber Note II [Member]        
Debt Instrument [Line Items]        
Notes Receivable Interest Rate 5.207%      
Non-recourse Liabilities [Member] | Level 2 [Member]        
Debt Instrument [Line Items]        
Fair value of non-recourse liabilities held by SPEs $ 1,112.4 $ 1,132.3    
MeadWestvaco [Member] | Timber Note I [Member]        
Debt Instrument [Line Items]        
Restricted assets held by special purpose entities       $ 398.0
MeadWestvaco [Member] | Timber Note II [Member]        
Debt Instrument [Line Items]        
Restricted assets held by special purpose entities     $ 860.0  
MeadWestvaco [Member] | Secured Financing Liability, Maturity in October 2027 [Member]        
Debt Instrument [Line Items]        
Non-recourse liabilities held by special purpose entities       $ 338.3
MeadWestvaco [Member] | Secured Financing Liability, Maturity in December 2023 [Member] | Timber Note II [Member]        
Debt Instrument [Line Items]        
Non-recourse liabilities held by special purpose entities     $ 774.0  
v3.23.3
Special Purpose Entities - Schedule of Restricted Assets and Non-recourse Liabilities Held by Special Purposes Entities (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Sep. 30, 2022
Debt Instrument [Line Items]    
Other current assets $ 862.1 $ 0.0
Other current liabilities 776.7 0.0
Rock-Tenn Company and MeadWestvaco Corporation's [Member] | Timber Notes [Member]    
Debt Instrument [Line Items]    
Other current assets 862.1  
Other noncurrent assets 382.7 1,253.0
Other current liabilities 776.7  
Other noncurrent liabilities $ 330.2 $ 1,117.8
v3.23.3
Special Purpose Entities - Summary of Restricted Assets and Non-recourse Liabilities (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Debt Instrument [Line Items]      
Interest income on Timber Notes $ 56.0 $ 41.1 $ 38.7
Interest expense on Timber Loans 50.0 37.2 35.2
Cash receipts on Timber Notes 61.4 46.5 45.9
Cash payments on Timber Loans $ 57.6 $ 44.9 $ 44.7
v3.23.3
Related Party Transactions - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Related Party Transaction [Line Items]      
Net sales $ 20,310.0 $ 21,256.5 $ 18,746.1
Affiliated Entity [Member]      
Related Party Transaction [Line Items]      
Net sales 139.6 238.5 $ 237.7
Accounts receivable due from affiliated companies $ 23.0 $ 27.2  
v3.23.3
Commitments and Contingencies - Additional Information (Details)
R$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2021
USD ($)
Sep. 30, 2023
USD ($)
Subsidiary
Lawsuit
Country
Sep. 30, 2023
BRL (R$)
Subsidiary
Sep. 30, 2021
USD ($)
Sep. 30, 2022
USD ($)
Apr. 30, 2020
USD ($)
Feb. 29, 2020
USD ($)
Commitments and Contingencies [Line Items]              
Accrual for Environmental Loss Contingencies   $ 9,600,000          
Number of countries | Country   170          
Guarantor Obligations, Current Carrying Value   $ 800,000     $ 800,000    
Reduction of cost of goods sold $ 5,000,000            
Brazil Administrative Council of Tax Appeals [Member]              
Commitments and Contingencies [Line Items]              
Claimed tax deficiency including penalties and interest   $ 143,000,000 R$ 714        
Tax claim and conversion description   The matter has proceeded through the Brazil Administrative Council of Tax Appeals (“CARF”) principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. The matter has proceeded through the Brazil Administrative Council of Tax Appeals (“CARF”) principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012.        
Income tax settlement claim liability   $ 0          
Tax claim and conversion, tax penalties relating to tax years description   2009 to 2012 2009 to 2012        
Brazil Indirect Tax Claim [Member]              
Commitments and Contingencies [Line Items]              
Reduction of cost of goods sold   $ 4,400,000   $ 600,000      
Reduction of interest expense, net   $ 4,700,000   $ 300,000      
Brazil [Member]              
Commitments and Contingencies [Line Items]              
Number of subsidiaries | Subsidiary   2 2        
Asbestos Litigation [Member]              
Commitments and Contingencies [Line Items]              
Number of Lawsuits the Company Has Been Named a Defendant in Asbestos-related Personal Injury Litigation | Lawsuit   600          
Amount reserved for litigation   $ 13,700,000          
Pace Industry Union Management Pension Fund [Member]              
Commitments and Contingencies [Line Items]              
Withdrawal obligation accumulated funding deficiency             $ 51,200,000
Pace Industry Union Management Pension Fund [Member] | Subsidiary [Member]              
Commitments and Contingencies [Line Items]              
Withdrawal obligation accumulated funding deficiency           $ 1,300,000  
Maximum [Member]              
Commitments and Contingencies [Line Items]              
Guarantor Obligations, Estimated Exposure, Undiscounted   50,000,000          
Other Noncurrent Liabilities [Member]              
Commitments and Contingencies [Line Items]              
Accrual for Environmental Loss Contingencies   $ 3,300,000          
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration]   Other Liabilities, Noncurrent          
Other Current Liabilities [Member]              
Commitments and Contingencies [Line Items]              
Accrual for Environmental Loss Contingencies   $ 6,300,000          
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration]   Other Liabilities, Current          
Capital Addition Purchase Commitments [Member]              
Commitments and Contingencies [Line Items]              
Long-term Purchase Commitment, Estimated Amount   $ 353,000,000          
v3.23.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) - Additional Information (Details)
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Minimum [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Effective Tax Rate, Net of Tax Components of Other Comprehensive Income 25.00% 25.00% 25.00%
Maximum [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Effective Tax Rate, Net of Tax Components of Other Comprehensive Income 26.00% 26.00% 26.00%
v3.23.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance at beginning of period [1] $ (1,454.3) $ (999.1)  
Other comprehensive (loss) income before reclassifications [1] 423.3 (468.6)  
Amounts reclassified from accumulated other comprehensive loss [1] 132.4 13.4  
Net current period other comprehensive (loss) income 555.7 [1] (455.2) [1] $ 320.8
Balance at end of period [1] (898.6) (1,454.3) (999.1)
Accumulated Net Gain (Loss) from Designated or Quality Cash Flow Hedges [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance at beginning of period (9.1) (0.2)  
Other comprehensive (loss) income before reclassifications (50.2) (10.3)  
Amounts reclassified from accumulated other comprehensive loss 54.4 1.4  
Net current period other comprehensive (loss) income 4.2 (8.9)  
Balance at end of period (4.9) (9.1) (0.2)
Accumulated Defined Benefit Plans Adjustment [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance at beginning of period (741.6) (536.5)  
Other comprehensive (loss) income before reclassifications 119.1 (217.1)  
Amounts reclassified from accumulated other comprehensive loss 50.5 12.0  
Net current period other comprehensive (loss) income 169.6 (205.1)  
Balance at end of period (572.0) (741.6) (536.5)
Accumulated Translation Adjustment [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance at beginning of period (703.6) (462.4)  
Other comprehensive (loss) income before reclassifications 354.4 (241.2)  
Amounts reclassified from accumulated other comprehensive loss 27.5    
Net current period other comprehensive (loss) income 381.9 (241.2)  
Balance at end of period $ (321.7) $ (703.6) $ (462.4)
[1] All amounts are net of tax and noncontrolling interest.
v3.23.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) - Summary of Reclassification out of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Amortization of actuarial losses, Pre-tax $ 53.5 $ 8.4 $ 33.9
Amortization of actuarial losses, Tax 13.4 2.0 8.4
Amortization and settlement recognition of net actuarial loss, included in pension cost 40.1 6.4 25.5
Amortization of prior service costs, Pre-Tax Amount 7.6 8.2 6.0
Amortization of prior service costs, Tax (1.9) (2.1) (1.5)
Amortization of prior service costs, Net of Tax 5.7 6.1 4.5
Reclassification of net pension adjustment upon sale of RTS, Pre-Tax 13.6    
Reclassification of net pension adjustment upon sale of RTS, Net of Tax 7.9    
Reclassification of previously unrealized net foreign currency loss upon consolidation of equity investment, Pre-tax 29.0    
Reclassification of previously unrealized net foreign currency loss upon consolidation of equity investment, Net of Tax 29.0    
Reclassification of previously unrealized net foreign currency gain upon sale of RTS, Pre-Tax (2.3)    
Reclassification of previously unrealized net foreign currency gain upon sale of RTS, Net of Tax (2.3)    
Foreign currency translation adjustments, Pre-Tax 354.9 (241.5) 124.3
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax 72.6 1.8 7.4
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax (18.2) (0.4) (1.9)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax 54.4 1.4 $ 5.5
Parent [Member]      
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Amortization of actuarial losses, Pre-tax [1],[2] (53.0) (7.8)  
Amortization of actuarial losses, Tax [1],[2] 13.3 1.9  
Amortization and settlement recognition of net actuarial loss, included in pension cost [1],[2] (39.7) (5.9)  
Amortization of prior service costs, Pre-Tax Amount [1],[2] (7.5) (8.2)  
Amortization of prior service costs, Tax [1],[2] 1.9 2.1  
Amortization of prior service costs, Net of Tax [1],[2] (5.6) (6.1)  
Reclassification of net pension adjustment upon sale of RTS, Pre-Tax [1],[3] (8.9)    
Reclassification of net pension adjustment upon sale of RTS, Tax [1],[3] 3.7    
Reclassification of net pension adjustment upon sale of RTS, Net of Tax [1],[3] (5.2)    
Defined Benefit Plans, before Tax [1] (69.4) (16.0)  
Defined Benefit Plans, Tax [1] 18.9 4.0  
Defined Benefit Plans, Net of Tax [1] (50.5) (12.0)  
Reclassification of previously unrealized net foreign currency loss upon consolidation of equity investment, Pre-tax [1],[4] (29.0)    
Reclassification of previously unrealized net foreign currency loss upon consolidation of equity investment, Net of Tax [1],[4] (29.0)    
Reclassification of previously unrealized net foreign currency gain upon sale of RTS, Pre-Tax [1],[3] 1.5    
Reclassification of previously unrealized net foreign currency gain upon sale of RTS, Net of Tax [1],[3] 1.5    
Foreign currency translation adjustments, Pre-Tax [1] (27.5)    
Foreign currency translation adjustments, Net of Tax [1] (27.5)    
Total Reclassifications From Other Comprehensive Income Before Tax [1] (169.5) (17.8)  
Total Reclassifications From Other Comprehensive Income Tax Portion [1] 37.1 4.4  
Total Reclassifications From Other Comprehensive Income Net of Tax [1] (132.4) (13.4)  
Parent [Member] | Natural Gas Commodity Hedge [Member]      
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax [1],[5] (72.6) (1.8)  
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax [1],[5] 18.2 0.4  
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax [1],[5] $ (54.4) $ (1.4)  
[1] Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded.
[2] These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See “Note 6. Retirement Plans” for additional information.
[3] Amount reflected in Gain on sale of RTS and Chattanooga in the consolidated statements of operations.
[4] Amount reflected in Equity in income of unconsolidated entities in the consolidated statements of operations.
[5] These accumulated other comprehensive income components are included in Cost of goods sold.
v3.23.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Other Comprehensive Income Loss [Abstract]      
Foreign currency translation (loss) gain, Pre-Tax Amount $ 354.9 $ (241.5) $ 124.3
Reclassification of previously unrealized net foreign currency loss upon consolidation of equity investment, Pre-tax 29.0    
Reclassification of previously unrealized net foreign currency gain upon sale of RTS, Pre-Tax (2.3)    
Deferred loss on cash flow hedges, Pre-Tax Amount (66.9) (13.8) (0.1)
Reclassification adjustment of net loss on cash flow hedges included in earnings, Pre-Tax Amount 72.6 1.8 7.4
Net actuarial (loss) gain arising during period, Pre-Tax Amount 161.6 (289.1) 222.2
Amortization and settlement recognition of net actuarial loss, Pre-Tax Amount 53.5 8.4 33.9
Prior service cost arising during the period, Pre-Tax Amount (2.0) (0.2) (5.6)
Amortization of prior service cost, Pre-Tax Amount 7.6 8.2 6.0
Reclassification of net pension adjustment upon sale of RTS, Pre-Tax 13.6    
Consolidated other comprehensive (loss) income, Pre-Tax Amount 621.6 (526.2) 388.1
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Pre-Tax Amount (5.3) (1.1) (0.3)
Other comprehensive (loss) income attributable to common stockholders, Pre-Tax Amount 616.3 (527.3) 387.8
Foreign currency translation (loss) gain, Tax 0.0 0.0 0.0
Reclassification of previously unrealized foreign currency losses on consolidation of equity investment, Tax 0.0    
Reclassification of previously unrealized net foreign currency gain upon sale of RTS, Tax 0.0    
Deferred loss on cash flow hedges, Tax 16.7 3.5 0.0
Reclassification adjustment of net loss on cash flow hedges included in earnings, Tax (18.2) (0.4) (1.9)
Net actuarial (loss) gain arising during period, Tax (40.8) 72.8 (56.6)
Amortization and settlement recognition of net actuarial loss, Tax (13.4) (2.0) (8.4)
Prior service cost arising during the period, Tax 0.5 0.0 1.4
Amortization of prior service cost, Tax (1.9) (2.1) (1.5)
Reclassification of net pension adjustment upon sale of RTS, Tax (5.7)    
Consolidated other comprehensive (loss) income, Tax (62.8) 71.8 (67.0)
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Tax 2.2 0.3 0.0
Other comprehensive (loss) income attributable to common stockholders, Tax (60.6) 72.1 (67.0)
Foreign currency translation (loss) gain, Net of Tax Amount 354.9 (241.5) 124.3
Reclassification of previously unrealized foreign currency losses on consolidation of equity investment, Net of Tax 29.0    
Reclassification of previously unrealized net foreign currency gain upon sale of RTS, Net of Tax (2.3)    
Deferred loss on cash flow hedges, Net of Tax Amount (50.2) (10.3) (0.1)
Reclassification adjustment of net loss on cash flow hedges included in earnings 54.4 1.4 5.5
Net actuarial (loss) gain arising during period, Net of Tax Amount 120.8 (216.3) 165.6
Amortization and settlement recognition of net actuarial loss, included in pension cost 40.1 6.4 25.5
Prior service cost arising during period (1.5) (0.2) (4.2)
Amortization of prior service cost, Net of Tax Amount 5.7 6.1 4.5
Reclassification of net pension adjustment upon sale of RTS, Net of Tax 7.9    
Other comprehensive income (loss), net of tax 558.8 (454.4) 321.1
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Net of Tax Amount (3.1) (0.8) (0.3)
Net current period other comprehensive (loss) income $ 555.7 [1] $ (455.2) [1] $ 320.8
[1] All amounts are net of tax and noncontrolling interest.
v3.23.3
Stockholders' Equity - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
May 04, 2022
Jul. 31, 2015
Equity [Abstract]          
Stock repurchase program, number of shares authorized to be repurchased       25,000,000 40,000,000.0
Authorized share repurchase as a percentage of common stock outstanding       10.00% 15.00%
Treasury stock, shares, acquired 0 12,600,000 2,500,000    
Purchases of common stock   $ 597.5 $ 125.1    
Stock repurchase program, remaining number of shares authorized to be repurchased 29,000,000        
v3.23.3
Share-Based Compensation - Additional Information (Details) - USD ($)
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Jan. 28, 2022
Feb. 02, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Allocated Share-based Compensation Expense $ 64,200,000 $ 93,300,000 $ 88,600,000    
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense 16,000,000 23,300,000 22,300,000    
Proceeds from share-based payment $ 13,700,000 $ 28,900,000 $ 57,500,000    
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years        
Stock options granted during period 0 0 0    
Share-based Compensation Arrangement by Share-based Payment Award, Stock Appreciation Rights, Exercises in Period, Intrinsic Value   $ 100,000 $ 200,000    
2020 Incentive Stock Plan [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of shares available for grant 600,000     8,400,000  
Amended and Restated 2016 Incentive Stock Plan [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of shares available for grant 400,000        
Shares available for Issuance         12,800,000
Prior Plans Assumed in Mergers and Acquisitions [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of shares available for grant 12,700,000        
Stock Options [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years        
Share-based Compensation Arrangement by Share-based Payment Award, Contractual Term, Maximum 10 years        
Aggregate intrinsic value of options exercised $ 800,000 $ 8,600,000 $ 29,100,000    
Employee Service Share-based Compensation, Unvested Awards, Compensation Cost Not yet Recognized $ 0        
v3.23.3
Share-Based Compensation - Summary of Changes in Stock Options (Details) - Stock Options [Member]
$ / shares in Units, $ in Millions
 12 Months Ended
Sep. 30, 2023
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Outstanding | shares 1,082,925
Exercised | shares (120,018)
Expired | shares (262,375)
Outstanding | shares 700,532
Exercisable at September 30, 2023 | shares 700,532
Weighted Average Exercise Price, Outstanding | $ / shares $ 40.22
Weighted Average Exercise Price, Exercised | $ / shares 28.83
Weighted Average Exercise Price, Expired | $ / shares 40.04
Weighted Average Exercise Price, outstanding, end of period | $ / shares 42.24
Weighted Average Exercise Price, exercisable at end of period | $ / shares $ 42.24
Weighted Average Remaining Contractual Term (in years), Outstanding 1 year 3 months 18 days
Weighted Average Remaining Contractual Term (in years), Exercisable at September 30, 2023 1 year 3 months 18 days
Aggregate Intrinsic Value, Outstanding | $ $ 2.0
Aggregate Intrinsic Value, Exercisable at September 30, 2023 | $ $ 2.0
v3.23.3
Share-Based Compensation - Restricted Stock and Restricted Stock Units - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 3,066,748    
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years    
Restricted Stock, Non-Employee Directors [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 51,163 37,771 42,482
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 1 year    
Restricted Stock, Target Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of Award Based on Level of Performance Attained, Maximum 200.00%    
Percentage of Award Based on Level of Performance Attained, Minimum 0.00%    
Restricted Stock For Annual Bonus [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted [1]     126,984
Percentage of Awarded Based on Performance Level Achieved     105.00%
Restricted Stock [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 3,066,748 2,365,554 2,104,393
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years    
Employee Service Share-based Compensation, Unvested Awards, Compensation Cost Not yet Recognized $ 89.5    
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition 1 year 6 months    
Restricted Stock, Total Shareholder Return Grant [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 3 years 3 years 3 years
Expected volatility 47.20% 46.70% 46.20%
Risk-free rate 4.00% 1.50% 0.20%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value $ 39.72 $ 60.83 $ 53.69
Restricted Stock, Subsequent Grant [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years)     2 years 10 months 24 days
Expected volatility     47.00%
Risk-free rate     0.30%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value     $ 70.80
Restricted Stock, Target Awards, 2018 [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of Awarded Based on Performance Level Achieved     89.30%
[1] Reflects shares issued at 105% of target in fiscal 2021 relating to fiscal 2020 restricted stock units granted for the annual bonus.
v3.23.3
Share-Based Compensation - Summary of Changes in Restricted Stock (Details) - $ / shares
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Units, Granted 3,066,748    
Restricted Stock [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Units, Outstanding [1] 4,900,629    
Units, Granted 3,066,748 2,365,554 2,104,393
Units, Vested and released (2,131,067) (1,512,550) (3,194,223)
Units, Forfeited (558,177)    
Units, Outstanding [1] 5,278,133 4,900,629  
Weighted Average Grant Date Fair Value, Outstanding [1] $ 43.73    
Weighted Average Grant Date Fair Value, Granted 35.22    
Weighted Average Grant Date Fair Value, Vested and released 40.91    
Weighted Average Grant Date Fair Value, Forfeited 41.23    
Weighted Average Grant Date Fair Value, Outstanding [1] $ 40.19 $ 43.73  
[1] Target awards granted with a performance condition, net of subsequent forfeitures, may be increased up to 200% of the target or decreased to zero, subject to the level of performance attained. The awards are reflected in the table at the target award amount of 100%. Based on current facts and assumptions, we are forecasting the performance of the aggregate outstanding grants to be attained at levels below target. However, actual performance may vary.
v3.23.3
Share-Based Compensation - Summary of Changes in Restricted Stock (Parenthetical) (Details)
 12 Months Ended
Sep. 30, 2023
Restricted Stock, Target Awards [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percentage of Award Based on Level of Performance Attained, Maximum 200.00%
Percentage of Award Based on Level of Performance Attained, Minimum 0.00%
Restricted Stock [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percentage of Performance Based Awards Reflected 100.00%
v3.23.3
Share-Based Compensation - Summary of Restricted Stock Shares Granted (Details) - shares
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 3,066,748    
Restricted Stock, Non-Employee Directors [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 51,163 37,771 42,482
Restricted Stock Service Condition And A Return On Invested Capital Performance Condition at Target [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 540,425 394,655  
Restricted Stock Service Condition and Cash Flow per Share Performance Condition at Target [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted   464,485 798,490
Restricted Stock Service Condition and an Adjusted Earnings Per Share Performance Condition at Target [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 644,755    
Restricted Stock, Service Condition and Relative Total Shareholder Return Market Condition at Target [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 69,560 45,470 127,050
Restricted Stock, Attainment of Performance Condition at Amount in Excess of Target [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted [1] 341,590 263,918  
Restricted Stock with Service Condition [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 1,419,255 1,159,255 1,009,387
Restricted Stock For Annual Bonus [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted [2]     126,984
Restricted Stock [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 3,066,748 2,365,554 2,104,393
[1] Grants include shares issued for the level of performance attained in excess of target. Shares issued in fiscal 2023 for the fiscal 2020 Cash Flow Per Share measure were at 151.8% of target. Shares issued in fiscal 2022 for the fiscal 2019 Cash Flow Per Share measure were at 151.3% of target. Shares issued in fiscal 2021 for the fiscal 2018 Cash Flow Per Share measure were at 89.3% of target, therefore, the remainder of the grant was forfeited.
[2] Reflects shares issued at 105% of target in fiscal 2021 relating to fiscal 2020 restricted stock units granted for the annual bonus.
v3.23.3
Share-Based Compensation - Summary of Restricted Stock Shares Granted (Parenthetical) (Details)
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years    
Restricted Stock, Target Awards, 2018 [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of Awarded Based on Performance Level Achieved     89.30%
Restricted Stock, Target Awards, 2019 [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of Awarded Based on Performance Level Achieved   151.30%  
Restricted Stock, Target Awards, 2020 [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of Awarded Based on Performance Level Achieved 151.80%    
Restricted Stock, Target Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of Award Based on Level of Performance Attained, Maximum 200.00%    
Percentage of Award Based on Level of Performance Attained, Minimum 0.00%    
Restricted Stock For Annual Bonus [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of Awarded Based on Performance Level Achieved     105.00%
v3.23.3
Share-Based Compensation - Summary of Restricted Stock Awards - Vested and Released, Granted and Changes (Details) - Restricted Stock [Member] - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vested and released 2,131,067 1,512,550 3,194,223
Aggregate fair value $ 72.6 $ 68.7 $ 125.1
v3.23.3
Share-Based Compensation - Employee Stock Purchase Plan - Additional Information (Details) - USD ($)
$ in Thousands, shares in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Feb. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense $ 64,200 $ 93,300 $ 88,600  
Employee Stock Purchase Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date 15.00%      
Stock Issued During Period, Shares, Employee Stock Purchase Plans 0.4 0.3 0.3  
Share-based compensation expense $ 1,700 $ 1,800 $ 1,900  
Shares Available For Future Grant 0.6     2.5
v3.23.3
Earnings per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Earnings Per Share [Abstract]      
Net (loss) income attributable to common stockholders $ (1,649.0) $ 944.6 $ 838.3
Less: Distributed and undistributed income available to participating securities, Basic   (0.1) (0.2)
Distributed and undistributed income (loss) available to common stockholders, Basic (1,649.0) 944.5 838.1
Less: Distributed and undistributed income available to participating securities, Diluted   (0.1) (0.2)
Distributed and undistributed (loss) income available to common stockholders, Diluted $ (1,649.0) $ 944.5 $ 838.1
Basic weighted average shares outstanding 255.9 259.5 265.2
Effect of dilutive stock options and non-participating securities   2 2.3
Diluted weighted average shares outstanding 255.9 261.5 267.5
Basic (loss) earnings per share attributable to common stockholders $ (6.44) $ 3.64 $ 3.16
Diluted (loss) earnings per share attributable to common stockholders $ (6.44) $ 3.61 $ 3.13
v3.23.3
Earnings per Share - Additional Information (Details) - shares
shares in Millions
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Earnings Per Share [Abstract]      
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 2.5 0.5 0.5