WESTROCK CO, 10-K filed on 11/18/2019
Annual Report
v3.19.3
Document and Entity Information Document - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Nov. 04, 2019
Mar. 31, 2019
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Sep. 30, 2019    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Entity Registrant Name WestRock Co    
Entity Central Index Key 0001732845    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Current Fiscal Year End Date --09-30    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Public Float     $ 9,706
Entity Common Stock Shares Outstanding   257,894,507  
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 371880617    
Entity Address, Address Line One 1000 Abernathy Road NE    
Entity Address, City or Town Atlanta    
Entity Address, State or Province Georgia    
Entity Address, Postal Zip Code 30328    
City Area Code 770    
Local Phone Number 448-2193    
v3.19.3
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Income Statement [Abstract]      
Net sales $ 18,289.0 $ 16,285.1 $ 14,859.7
Cost of goods sold 14,540.0 12,923.1 12,141.5
Selling, general and administrative, excluding intangible amortization 1,715.2 1,546.6 1,457.2
Selling, general and administrative intangible amortization 400.2 296.6 229.6
(Gain) loss on disposal of assets (41.2) 10.1 4.8
Multiemployer pension withdrawal (income) expense (6.3) 184.2  
Land and Development impairments 13.0 31.9 46.7
Restructuring and other costs 173.7 105.4 196.7
Operating profit (loss) 1,494.4 1,187.2 783.2
Interest expense, net (431.3) (293.8) (222.5)
(Loss) gain on extinguishment of debt (5.1) (0.1) 1.8
Pension and other postretirement non-service income 74.2 95.3 51.8
Other income, net 2.4 12.7 11.5
Equity in income of unconsolidated entities 10.1 33.5 39.0
Gain on sale of HH&B     192.8
Income before income taxes 1,144.7 1,034.8 857.6
Income tax (expense) benefit (276.8) 874.5 (159.0)
Consolidated net income 867.9 1,909.3 698.6
Less: Net (income) loss attributable to noncontrolling interests (5.0) (3.2) 9.6
Net income attributable to common stockholders $ 862.9 $ 1,906.1 $ 708.2
Basic earnings per share attributable to common stockholders $ 3.36 $ 7.46 $ 2.81
Diluted earnings per share attributable to common stockholders 3.33 7.34 2.77
Cash dividends paid per share $ 1.82 $ 1.72 $ 1.60
v3.19.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]      
Consolidated net income $ 867.9 $ 1,909.3 $ 698.6
Other comprehensive (loss) income, net of tax:      
Foreign currency translation (loss) gain (143.4) (234.4) 80.7
Sale of HH&B 0.0 0.0 26.8
Derivatives:      
Deferred gain on cash flow hedges 1.1 0.0 0.0
Reclassification adjustment of net (gain) loss on cash flow hedges included in earnings (0.2) 0.5 (0.5)
Unrealized gain on available for sale security 0.0 0.8 0.7
Reclassification adjustment of gain on available for sale security included in earnings 0.0 (1.5) 0.0
Defined benefit pension and other postretirement benefit plans:      
Net actuarial (loss) gain arising during period (248.5) (13.1) 22.2
Amortization and settlement recognition of net actuarial loss, included in pension and postretirement cost 17.2 15.0 36.0
Prior service (cost) credit arising during period (3.3) (5.5) 0.7
Amortization and curtailment recognition of prior service cost (credit), included in pension and postretirement cost 1.8 0.2 (0.2)
Sale of HH&B 0.0 0.0 2.9
Other comprehensive (loss) income, net of tax (375.3) (238.0) 169.3
Comprehensive income 492.6 1,671.3 867.9
Less: Comprehensive (income) loss attributable to noncontrolling interests (3.6) (3.2) 9.4
Comprehensive income attributable to common stockholders $ 489.0 $ 1,668.1 $ 877.3
v3.19.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Current Assets:    
Cash and cash equivalents $ 151.6 $ 636.8
Accounts receivable (net of allowances of $53.2 and $49.7) 2,193.2 2,010.7
Inventories 2,107.5 1,829.6
Other current assets 496.2 248.5
Assets held for sale 25.8 59.5
Total current assets 4,974.3 4,785.1
Property, plant and equipment, net 11,189.5 9,082.5
Goodwill 7,285.6 5,577.6
Intangibles, net 4,059.5 3,122.0
Restricted assets held by special purpose entities 1,274.3 1,281.0
Prepaid pension asset 224.7 420.0
Other assets 1,148.8 1,092.3
Total Assets 30,156.7 25,360.5
Current liabilities:    
Current portion of debt 561.1 740.7
Accounts payable 1,831.8 1,716.8
Accrued compensation and benefits 470.4 399.3
Other current liabilities 571.8 476.5
Total current liabilities 3,435.1 3,333.3
Long-term debt due after one year 9,502.3 5,674.5
Pension liabilities, net of current portion 294.0 261.3
Postretirement benefit liabilities, net of current portion 162.1 134.8
Non-recourse liabilities held by special purpose entities 1,145.2 1,153.7
Deferred income taxes 2,878.0 2,321.5
Other long-term liabilities 1,053.9 994.8
Commitments and contingencies (Notes 15 and 18)
Redeemable noncontrolling interests 1.9 4.2
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; 257.8 million and 253.5 million shares outstanding at September 30, 2019 and September 30, 2018, respectively 2.6 2.5
Capital in excess of par value 10,739.4 10,588.9
Retained earnings 1,997.1 1,573.3
Accumulated other comprehensive loss [1] (1,069.2) (695.3)
Total stockholders’ equity 11,669.9 11,469.4
Noncontrolling interests 14.3 13.0
Total equity 11,684.2 11,482.4
Total Liabilities and Equity $ 30,156.7 $ 25,360.5
[1] All amounts are net of tax and noncontrolling interest
v3.19.3
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Statement Of Financial Position [Abstract]    
Allowance for Doubtful Accounts Receivable, Current $ 53.2 $ 49.7
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 257,800,000 253,500,000
v3.19.3
CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
shares in Millions, $ in Millions
Total
Common Stock [Member]
Capital in Excess of Par Value [Member]
Retained Earnings [Member]
AOCI Attributable to Parent
Noncontrolling Interests [Member]
Beginning balance at Sep. 30, 2016   251.0        
Shares issued under restricted stock plan   1.1        
Net income (loss) $ 9.6         $ (12.9) [1]
Distributions and adjustments to noncontrolling interests [1]           (44.7)
Net income attributable to common stockholders       $ 708.2    
Dividends declared (per share - $1.82, $1.72 and $1.60) [2]       (407.3)    
Income tax benefit from share-based plans     $ 4.3      
Compensation expense under share-based plans     60.6      
Issuance of common stock, net of stock received for minimum tax withholdings [3],[4]   4.2        
Purchases of common stock (1.8) (1.8) [5]        
Ending balance at Sep. 30, 2017   254.5        
Beginning balance at Sep. 30, 2016   $ 2.5 10,458.6 (105.9) $ (626.4) 101.2 [1]
Issuance of common stock, net of stock received for minimum tax withholdings     181.6 [4] (5.9)    
Fair value of share-based awards issued in business combinations     1.9      
Purchases of common stock $ (93.0)   (76.3) [5] (16.7) [5]    
Other comprehensive income (loss), net of tax 169.1       169.1  
Separation of Specialty Chemicals business     (5.8)      
Ending balance at Sep. 30, 2017 10,386.1 $ 2.5 10,624.9 172.4 (457.3) 43.6 [1]
Total Stockholders’ equity at Sep. 30, 2017 10,342.5          
Shares issued under restricted stock plan   0.7        
Net income (loss) $ (3.2)         2.1 [1]
Contributions [1]           0.5
Distributions and adjustments to noncontrolling interests [1]           (33.2)
Net income attributable to common stockholders       1,906.1    
Dividends declared (per share - $1.82, $1.72 and $1.60) [2]       (445.2)    
Compensation expense under share-based plans     66.9      
Issuance of common stock, net of stock received for minimum tax withholdings [3],[4]   1.7        
Purchases of common stock (3.4) (3.4) [5]        
Ending balance at Sep. 30, 2018 253.5 253.5        
Issuance of common stock, net of stock received for minimum tax withholdings     38.9 [4] (6.7)    
Purchases of common stock $ (195.1)   (141.8) [5] (53.3) [5]    
Other comprehensive income (loss), net of tax (238.0) [6]       (238.0)  
Ending balance at Sep. 30, 2018 11,482.4 $ 2.5 10,588.9 1,573.3 (695.3) 13.0 [1]
Total Stockholders’ equity at Sep. 30, 2018 11,469.4          
Shares issued under restricted stock plan   3.2        
Net income (loss) $ (5.0)         3.2 [1]
Contributions [1]           0.2
Distributions and adjustments to noncontrolling interests [1]           (2.1)
Adoption of revenue from contracts with customers standard       43.5    
Net income attributable to common stockholders       862.9    
Dividends declared (per share - $1.82, $1.72 and $1.60) [2]       (479.8)    
Compensation expense under share-based plans     64.8      
Issuance of common stock, net of stock received for minimum tax withholdings [3],[4]   3.2        
Purchases of common stock (2.1) (2.1) [5]        
Ending balance at Sep. 30, 2019 257.8 257.8        
Issuance of common stock, net of stock received for minimum tax withholdings   $ 0.1 [4] 101.1 [4] (0.4)    
Fair value of share-based awards issued in business combinations     70.8      
Purchases of common stock $ (88.6)   (86.2) [5] (2.4) [5]    
Other comprehensive income (loss), net of tax (373.9) [6]       (373.9)  
Ending balance at Sep. 30, 2019 11,684.2 $ 2.6 $ 10,739.4 $ 1,997.1 $ (1,069.2) $ 14.3 [1]
Total Stockholders’ equity at Sep. 30, 2019 $ 11,669.9          
[1] Excludes amounts related to contingently redeemable noncontrolling interests, which are separately classified outside of permanent equity in the Consolidated Balance Sheets.
[2] Includes cash dividends paid, dividend equivalent units on certain restricted stock awards and dividends declared, but unpaid related to the shares reserved but unissued at the time of the acquisition for the resolution of Smurfit-Stone bankruptcy claims.
[3] In connection with the acquisition of Smurfit-Stone, there were approximately 1.4 million shares of Common Stock reserved, but unissued at the time of the acquisition for the resolution of Smurfit-Stone bankruptcy claims. At September 30, 2017, 0.2 million shares remained reserved and unissued. The remaining shares were issued in fiscal 2018 as the claim’s distribution process was completed.
[4] Included in the issuance of common stock in fiscal 2019 is the issuance of approximately 1.6 million shares of Common Stock valued at $70.1 million in connection with the KapStone Acquisition. Included in the issuance of common stock in fiscal 2017 is the issuance of approximately 2.4 million shares of Common Stock valued at $136.1 million in connection with the June 9, 2017 acquisition of U.S. Corrugated Holdings, Inc. (the “U.S. Corrugated Acquisition”).
[5] In fiscal 2019, we repurchased approximately 2.1 million shares of our Common Stock for an aggregate cost of $88.6 million. In fiscal 2018, we repurchased approximately 3.4 million shares of our Common Stock for an aggregate cost of $195.1 million. In fiscal 2017, we repurchased approximately 1.8 million shares of our Common Stock for an aggregate cost of $93.0 million.
[6] All amounts are net of tax and noncontrolling interest
v3.19.3
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical)
shares in Millions, $ in Millions
 12 Months Ended
Sep. 30, 2019
USD ($)
$ / shares
shares
Cash dividends paid per share | $ / shares $ 1.82
Purchases of common stock 2.1
Aggregate cost for purchase of common stock | $ $ 88.6
Common Stock [Member]  
Purchases of common stock 2.1
KapStone [Member]  
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares 1.6
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ $ 70.1
v3.19.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Operating activities:      
Consolidated net income $ 867.9 $ 1,909.3 $ 698.6
Adjustments to reconcile consolidated net income to net cash provided by operating activities:      
Depreciation, depletion and amortization 1,511.2 1,252.2 1,112.1
Cost of real estate sold 17.3 121.2 207.9
Deferred income tax expense (benefit) 37.1 (1,069.4) (20.4)
Share-based compensation expense 64.2 66.8 58.0
Pension and other postretirement funding (more) than expense (income) (61.3) (96.8) (51.0)
Multiemployer pension withdrawals (6.3) 184.2  
Gain on sale of HH&B     (192.8)
Land and Development impairments 13.0 31.9 46.7
Other impairment adjustments 38.3 13.5 56.8
(Gain) loss on disposal of plant, equipment and other, net (43.0) 2.9 (8.4)
Other (80.2) (96.3) (87.3)
Change in operating assets and liabilities, net of acquisitions and divestitures:      
Accounts receivable 272.9 (580.1) (520.1)
Inventories (110.5) (72.1) (48.2)
Other assets (124.6) (67.7) (44.7)
Accounts payable (39.1) 180.3 302.2
Income taxes 7.2 130.6 (67.1)
Accrued liabilities and other (53.9) 20.7 21.5
Net cash provided by operating activities 2,310.2 1,931.2 1,463.8
Investing activities:      
Capital expenditures (1,369.1) (999.9) (778.6)
Cash paid for purchase of businesses, net of cash acquired (3,374.2) (239.9) (1,588.5)
Cash receipts on sold trade receivables   461.6 411.2
Investment in unconsolidated entities (11.2) (114.3) (2.5)
Proceeds from sale of HH&B     1,005.9
Proceeds from sale of property, plant and equipment 119.1 23.3 52.6
Proceeds from property, plant and equipment insurance settlement 25.5 7.9 3.5
Other 30.3 46.2 27.7
Net cash used for investing activities (4,579.6) (815.1) (868.7)
Financing activities:      
Proceeds from issuance of notes 2,498.2 1,197.3 998.4
Additions (repayments) to revolving credit facilities 37.2 (115.5) 421.8
Additions to debt 5,061.6 855.2 742.6
Repayments of debt (5,631.6) (2,032.9) (2,331.9)
Changes in commercial paper, net 339.2    
Other financing additions (repayments) 10.0 (24.2) 23.9
Issuances of common stock, net of related minimum tax withholdings 18.3 26.6 35.8
Purchases of common stock (88.6) (195.1) (93.0)
Cash dividends paid to stockholders (467.9) (440.9) (403.2)
Cash distributions paid to noncontrolling interests (4.3) (33.3) (47.0)
Other 8.1 7.7 (2.8)
Net cash provided by (used for) financing activities 1,780.2 (755.1) (655.4)
Effect of exchange rate changes on cash, cash equivalents and restricted cash 4.0 (28.2) (2.1)
(Decrease) increase in cash, cash equivalents and restricted cash (485.2) 332.8 (62.4)
Cash, cash equivalents and restricted cash at beginning of period 636.8 304.0 366.4
Cash, cash equivalents and restricted cash at end of period 151.6 636.8 304.0
Supplemental disclosure of cash flow information:      
Income taxes, net of refunds 226.1 60.5 227.6
Interest, net of amounts capitalized $ 412.5 $ 284.4 $ 239.0
v3.19.3
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical 1)
$ in Millions
 12 Months Ended
Sep. 30, 2017
USD ($)
Statement Of Cash Flows [Abstract]  
Noncash, Accounts Receivable $ 14.6
Noncash, Inventories 7.6
Noncash, Other Assets 12.3
Noncash, Accounts Payable (7.9)
Noncash, Income taxes (1.4)
Noncash, Accrued Liabilities and Other (12.0)
Investment in unconsolidated entities $ (16.7)
v3.19.3
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical 2) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Non-cash investing activities:    
Deferred purchase price of trade receivables sold $ 436.7 $ 422.2
v3.19.3
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical 3) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Statement Of Cash Flows [Abstract]      
Fair value of assets acquired, including goodwill $ 5,948.9 $ 303.2 $ 3,342.4
Cash consideration for the purchase of businesses, net of cash acquired (3,369.3) (242.1) (1,592.0)
Stock issued in business combinations (70.1)   (136.1)
Fair value of share-based awards issued in business combinations (70.8)   (1.9)
Deferred payments and (unpaid) unreceived working capital or escrow 16.6 (25.0) 4.6
Liabilities and noncontrolling interest assumed $ 2,455.3 $ 36.1 $ 1,617.0
v3.19.3
Description of Business and Summary of Significant Accounting Policies
 12 Months Ended
Sep. 30, 2019
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 the business of WestRock Company, its wholly-owned subsidiaries and its partially-owned consolidated subsidiaries for periods on or after November 2, 2018 and to WRKCo Inc. (formerly known as WestRock Company) for periods prior to November 2, 2018.

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

WestRock was formed on March 6, 2015 for the purpose of effecting the Combination and, prior to the Combination, did not conduct any activities other than those incidental to its formation and the matters contemplated by the Business Combination Agreement. On July 1, 2015, pursuant to the Business Combination Agreement, RockTenn and MWV completed a strategic combination of their respective businesses and RockTenn and MWV each became wholly-owned subsidiaries of WestRock. RockTenn was the accounting acquirer in the Combination.

On May 15, 2016, WestRock completed the Separation, pursuant to which we disposed of our former Specialty Chemicals segment in its entirety and ceased to consolidate its assets, liabilities and results of operations in our consolidated financial statements and treated the former Specialty Chemicals segment as discontinued operations.

On January 23, 2017, we announced we had entered into an agreement with certain subsidiaries of Silgan Holdings Inc. (“Silgan”) under which Silgan would purchase HH&B for approximately $1.025 billion in cash plus the assumption of approximately $25 million in foreign pension liabilities. Accordingly, in the second quarter of fiscal 2017, all of the assets and liabilities of HH&B were reported as assets and liabilities held for sale. We discontinued recording depreciation and amortization while the assets were held for sale. On April 6, 2017, we announced that we had completed the HH&B Sale. We used the proceeds from the HH&B Sale in connection with the MPS Acquisition. We recorded a pre-tax gain on sale of HH&B of $192.8 million in fiscal 2017.

On June 6, 2017, we completed the MPS Acquisition. MPS is a global provider of print-based specialty packaging solutions and its differentiated product offering includes premium folding cartons, inserts, labels and rigid packaging. MPS is reported in our Consumer Packaging segment. See “Note 3. Acquisitions and Investment” for additional information.

On November 2, 2018, we completed the KapStone Acquisition. KapStone is a leading North American producer and distributor of containerboard, corrugated products and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft. KapStone also owns Victory Packaging, a packaging solutions distribution company with facilities in the U.S., Canada and Mexico. KapStone is reported in our Corrugated Packaging segment. WRKCo (formerly known as WestRock Company) was the accounting acquirer in the transaction; therefore, the historical consolidated financial statements of WRKCo for periods prior to the KapStone Acquisition are also considered to be the historical financial statements of the Company. See “Note 3. Acquisitions and Investment” for additional information.

Consolidation

The consolidated financial statements include our accounts and the accounts of our partially-owned consolidated subsidiaries. Equity investments in which we exercise significant influence but do not control and are not the primary beneficiary are accounted for using the equity method. Investments in which we are not able to

 

exercise significant influence over the investee are accounted for under the cost method. Our equity and cost method investments are not significant either individually or in the aggregate. We have eliminated all significant intercompany accounts and transactions. See “Note 7. Segment Information” for our equity method investments.

Reclassifications

 

We aligned our financial results for all periods presented to align our reportable segments as discussed in “Note 7. Segment Information”, we have accounted for the retrospective adoption of certain accounting standards as discussed in “Note 1. Description of Business and Summary of Significant Accounting Policies – New Accounting Standards - Recently Adopted”, and we have accounted for changes in our Rule 3-10 of Regulation S-X disclosures as outlined in “Note 14. Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors”.

Use of Estimates

Preparing consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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.

The most significant accounting estimates inherent in the preparation of our consolidated financial statements include estimates to evaluate the recoverability of goodwill, intangibles and property, plant and equipment, to determine the useful lives of assets that are amortized or depreciated, and to measure income taxes, self-insured obligations, restructuring activities and allocate the purchase price of an acquired business to the fair value of acquired assets and liabilities. In addition, significant estimates form the basis for our reserves with respect to collectability of accounts receivable, inventory valuations, pension benefits, deferred tax asset valuation allowances and certain benefits provided to current and retired employees. Various assumptions and other factors underlie the determination of these significant estimates. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, 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. Additionally, we manufacture certain customized products that have no alternative use to us (since they are made to specific customer orders), 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 increases the contract asset (unbilled receivables) balance with a corresponding reduction in finished goods inventory on our balance sheet.

We net, against our gross sales, provisions for discounts, returns, allowances, customer rebates and other adjustments. Such adjustments are based on historical experience which is consistent with the most likely method as provided in Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification (“ASC”) 606 “Revenue from Contracts with Customers” (“ASC 606”).

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 we report in the consolidated balance sheets for 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 probable 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 sell certain receivables under our A/R Sales Agreement.

We state accounts receivable at the amount owed by the customer, net of an allowance for estimated uncollectible accounts, 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 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. We charge off receivables when they are determined to be no longer collectible. In fiscal 2019, 2018 and 2017 our bad debt expense was not significant.

The following table represents a summary of the changes in the reserve for allowance for doubtful accounts, returns and allowances and cash discounts for fiscal 2019, 2018 and 2017 (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of fiscal year

 

$

49.7

 

 

$

45.8

 

 

$

36.5

 

Reduction in sales and charges to costs and expenses

 

 

259.6

 

 

 

202.8

 

 

 

215.6

 

Deductions

 

 

(256.1

)

 

 

(198.9

)

 

 

(206.3

)

Balance at end of fiscal year

 

$

53.2

 

 

$

49.7

 

 

$

45.8

 

 

Inventories

We value the majority of our U.S. inventories at the lower of cost or market, with cost 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 represent primarily foreign inventories, distribution business inventories, spare parts inventories and certain inventoried supplies and aggregate to approximately 39% and 31% of FIFO cost of all inventory at September 30, 2019 and 2018, respectively.

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. Lastly, certain operations calculate a ratio, on a plant by plant basis, the numerator of which is the cost of goods sold and the denominator is net sales. This ratio is applied to the estimated sales value of the finished goods inventory. 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, abnormal production levels, freight, handling costs, and wasted materials (spoilage). Cost includes 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.

Property, Plant and Equipment

We state 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. During fiscal 2019, 2018 and 2017, we capitalized interest of approximately $23.8 million, $8.2 million and $7.0 million, respectively. 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 and Long-Lived Assets

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 as set forth in ASC 350, “Intangibles — Goodwill and Other.” 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. 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 discounted cash flow method or, as appropriate, a combination of the discounted cash flow method and the guideline public company method.

The goodwill impairment model is a two-step process. ASC 350 allows a qualitative assessment, prior to step one, 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 step one. In step one, 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, inflation, discount rates, exchange rates, tax rates, anticipated synergies and productivity improvements resulting from acquisitions, capital expenditures and continuous improvement projects. The assumptions we use to estimate future cash flows are consistent with the assumptions that the reporting units use for internal planning purposes, updated to reflect current expectations. The guideline public company method involves comparing the reporting unit to similar companies whose stock is freely traded on an organized exchange. The fair values determined by the discounted cash flow and guideline public company methods were weighted to arrive at the concluded fair value of the reporting unit. However, in instances where comparisons to our peers was less meaningful, no weight was 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 would complete step two of the impairment analysis. Step two involves determining the implied fair value of the reporting unit’s goodwill and comparing it to the

carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, we recognize an impairment loss in an amount equal to that excess. While Accounting Standard Update (“ASU 2017-04”), “Simplifying the Test for Goodwill Impairment”, amends the guidance in ASC 350, we have not yet adopted the ASU and do not expect these provisions to have a material impact on our consolidated financial statements.

During the third quarter of fiscal 2019, we tested our goodwill for potential impairment on an interim basis due to changing market conditions, including the impact on the trading price of our Common Stock. All reporting units that have goodwill were noted to have a fair value that exceeded their carrying values as of the interim impairment test date. The discount rate used for each reporting unit ranged from 8.5% to 14.0%. We used perpetual growth rates in the reporting units that have goodwill ranging from 0.0% to 1.0%. Our Consumer Packaging and Victory Packaging reporting units had fair values that exceeded their respective carrying values by less than 10% each, primarily due to the fair value accounting related to the Combination and the MPS Acquisition (for Consumer Packaging) and the KapStone Acquisition (for Victory Packaging). If we had concluded that it was appropriate to increase the discount rate we used by 100 basis points to estimate the fair value of each reporting unit that has goodwill, the fair value of each of our reporting units would have continued to exceed its carrying value, except for the Consumer Packaging reporting unit. The Consumer Packaging and Victory Packaging reporting units had $3,590.6 million and $40.2 million of goodwill, respectively, at September 30, 2019. We reviewed the carrying value of our goodwill at the beginning of the fourth quarter and continually monitored industry economic trends until the end of our fiscal year 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. Currently, we do not believe there is a reasonable likelihood that there will be a material change in future assumptions or estimates we use to calculate impairment losses. However, if actual results are not consistent with our assumptions and estimates, we may be exposed to impairment losses that could be material.

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 amortizing 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.

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 1 to 40 years and have a weighted average life of approximately 15.3 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.

Restructuring and Other Costs

Our restructuring and other costs 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. Identifying and calculating the cost to exit these operations requires certain assumptions to be made, the most significant of which are anticipated future liabilities, including severance costs, leases and other contractual

obligations, and the adjustment of property, plant and equipment to net realizable 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 4. Restructuring and Other Costs” 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 judgements 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 of Financial Instruments and Nonfinancial Assets and Liabilities

We estimate fair values in accordance with ASC 820, “Fair Value Measurement.” We define 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.

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 13. Debt” and our pension and postretirement assets and liabilities in “Note 5. 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, and our derivative contracts, if any, based on discounted cash flows.

We measure certain nonfinancial assets and nonfinancial liabilities at fair value on a nonrecurring basis. These assets and liabilities include cost and equity method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a merger or an acquisition or in a nonmonetary exchange, and property, plant and equipment and goodwill and other intangible assets that are written down to fair value when they are held for sale or determined to be impaired. Given the nature of nonfinancial 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 12. 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”, 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.

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.

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.

At September 30, 2019, the notional amounts of interest rate and foreign currency exchange contract derivatives were $600.0 million and $351.0 million, respectively. At September 30, 2019, the notional amount of natural gas commodity derivatives was 8.4 MMBtu. The fair value of these derivative instruments was not significant as of September 30, 2019. At September 30, 2018, there were no interest rate or commodity derivatives outstanding, and the notional amount of foreign currency derivatives was $356.0 million. See “Note 13. Debt” for additional information on the foreign currency 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 in accordance with ASU 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes.”

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 determining (i) 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. 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 Tax Act (as hereinafter defined) was signed into law. The Tax Act contained significant changes to corporate taxation, including (i) the reduction of the corporate income tax rate to 21%, (ii) the acceleration of expensing for certain business assets, (iii) the one-time transition tax related to the transition of U.S. international tax from a worldwide tax system to a territorial tax system, (iv) the repeal of the domestic production deduction, (v) additional limitations on the deductibility of interest expense and (vi) expanded limitations on executive compensation. See “Note 6. Income Taxes.”

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 5. 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. As provided under ASC 715, 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 and restricted stock, stock appreciation rights (“SAR” or “SARs”) and restricted stock units to employees and our 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 restricted stock grants to employees 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 under the plan to earnings over each increment’s individual vesting period. See “Note 21. 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 will recognize a gain or loss for any difference between the settlement amount and the liability recorded. Asset retirement obligations with indeterminate settlement dates are not recorded until such time that a reasonable estimate may be made. Our asset retirement obligations consist primarily of landfill closure and post-closure costs at certain of our mills. At September 30, 2019 and September 30, 2018, we had recorded liabilities of $72.5 million and $72.9 million, respectively. The liabilities are primarily reflected as other long-term liabilities on the consolidated balance sheets.

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 twelve to twenty-four 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, 2019 and 2018 were $124.3 million and $83.4 million, respectively. The assets are recorded as other assets on the consolidated balance sheets. The increase in fiscal 2019 was primarily due to the acquired KapStone mills, as well as the varied timing and scope of outages.

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 income. We recorded a gain on foreign currency transactions of $18.5 million, $12.2 million and $4.3 in fiscal 2019, 2018 and 2017, 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 the remedial feasibility study and 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 18. Commitments and Contingencies.”

 

New Accounting Standards - Recently Adopted

 

During fiscal 2019, we filed with the SEC a Current Report on Form 8-K to provide revisions to our consolidated financial statements, and the notes thereto for the three years ended September 30, 2018 and other related disclosures, including the retrospective adoption of certain accounting standards for all periods therein, including, but not limited to, ASU 2017-07 “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments” (which amends the guidance in ASC 230, “Statement of Cash Flows”) and ASU 2016-18 “Restricted Cash” (which amends the guidance in the ASC 230, “Statement of Cash Flows”). See “Note 1. Description of Business and Summary of Significant Accounting Policies — New Accounting Standards - Recently Adopted” of the Notes to Consolidated Financial Statements section in Exhibit 99.1 of the May 9, 2019 Form 8-K for information on new accounting standards adopted on October 1, 2018 on a retrospective basis for all periods therein.

 

In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The amendments in this update provide financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in the period of adoption or retrospectively in each period in which the effect of the change in the U.S. federal corporate income tax rate in the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) (or portion thereof) is recorded. This ASU requires financial statement preparers to disclose (i) a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income; (ii) whether they elect to reclassify the stranded income tax effects from the Tax Act; and (iii) information about the other income tax effects that are reclassified. The amendments affect any organization that is required to apply the provisions of ASC 220, “Income Statement – Reporting Comprehensive Income”, and has items of other comprehensive income in which the related tax effects are included as required by GAAP. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We adopted the provisions of this ASU for fiscal 2020 on October 1, 2019 and we estimate that the reclassification of stranded tax effects from accumulated other comprehensive income to retained earnings to be approximately $70 to $75 million.

 

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this ASU also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. In October 2018, the FASB issued ASU 2018-16 “Derivatives and Hedging: Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a

Benchmark Interest Rate for Hedge Accounting” (“ASU 2018-16”), which adds the overnight index rate based on the Secured Overnight Financing Rate to the list of U.S. benchmark interest rates in ASC 815 that are eligible to be hedged. In April 2019, the FASB issued ASU 2019-04 “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”), which addresses targeted issues related to fair value hedges and clarifies certain transition requirements. The provisions of ASU 2017-12, ASU 2018-16 and ASU 2019-04 are concurrently effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and should be applied prospectively. We early adopted the provisions of ASU 2017-12, ASU 2018-16 and ASU 2019-04 in the fourth quarter of fiscal 2019. These provisions did not have a material impact on our consolidated financial statements.

 

In February 2016, the FASB issued ASU 2016-02 “Leases”, which is codified in ASC 842 “Leases” (“ASC 842”) and supersedes current lease guidance in ASC 840 “Leases”. These provisions require lessees to put a right-of-use asset and lease liability on their balance sheet for operating and financing leases that have a term of more than one year. Expense will be recognized in the income statement similar to current accounting guidance. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. Entities will need to disclose qualitative and quantitative information about their leases, including characteristics and amounts recognized in the financial statements. These provisions are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Prior to the FASB issuing ASU 2018-11 “Leases”, entities were required to use a modified retrospective approach upon adoption to recognize and measure leases at the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU 2018-11, which provides entities the option to initially apply ASU 2016-02 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the comparative periods presented in the financial statements would continue to be in accordance with current GAAP. In December 2018, the FASB issued ASU 2018-20 “Leases: Narrow-scope Improvements for Lessors” to help lessors apply ASC 842. This ASU allows lessors to make an accounting policy election not to evaluate sales taxes and other similar taxes collected from lessees, requires lessors to exclude from variable payments certain lessor costs paid directly by lessee to third parties on the lessor’s behalf and provides clarification on variable payments allocated to lease and non-lease components. In March 2019, the FASB issued ASU 2019-01 “Leases (Topic 842): Codification Improvements”, which (a) provides guidance on lessors’ accounting for acquisition costs that will now generally be included in the measurement of fair value of the underlying asset, (b) clarifies that lessors in scope of ASC 942, “Financial Services—Depository and Lending” (“ASC 942”), have to follow cash flow presentation guidance under ASC 942 for payments received by lessors and (c) provides an exemption to all companies from interim transition disclosure requirements of ASC 250 “Accounting Changes and Error Corrections” (“ASC 250”), in addition to the already exempted annual disclosure requirement of ASC 250. ASU 2019-01 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years; however, companies are permitted to early adopt ASU 2019-01 concurrent with, or any time after the adoption of, ASC 842.

 

We adopted the provisions of ASC 842 for fiscal 2020 on October 1, 2019, using the modified retrospective approach and as a result will not restate prior periods. We have also elected the package of three practical expedients permitted within the standard pursuant to which we will not reassess initial direct costs, lease classification or whether our contracts contain or are leases. We have also made an accounting policy election to not recognize right-of-use assets 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 are reasonably certain to be exercised. Upon adoption, we estimate to recognize a right-of-use asset of approximately $730 million to $760 million with its corresponding lease liability representing the present value of the remaining minimum rental payments relating to leases currently classified as operating leases. The adoption of ASC 842 does not have a significant impact on the recognition, measurement, or presentation of lease expenses within the consolidated statements of income or the consolidated statements of cash flows. We have also identified and implemented changes to our accounting policies and practices, business processes, systems and designed and implemented specific controls over our evaluation of the impact of the new standard and related guidance on us upon adoption, and on an ongoing basis, including disclosure requirements and the collection of relevant data into the reporting process. While we have substantially completed the process of quantifying the impacts that will result from applying the new standard, our assessment will be finalized during the first quarter of fiscal 2020.

New Accounting Standards - Recently Issued

 

In October 2018, the FASB issued ASU 2018-18 “Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606”, which provides targeted amendments to ASC 808, “Collaborative

arrangements” (“ASC 808”) and ASC 606. The amendments in this ASU require transactions between participants in a collaborative arrangement to be accounted for under ASC 606 when the counterparty is a customer. This ASU precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. This ASU also amends ASC 808 to refer to the unit-of-account guidance in ASC 606 and requires it to be used only when assessing whether a transaction is in scope of ASC 606. This ASU is effective for fiscal years ending after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this ASU.

 

In October 2018, the FASB issued ASU 2018-17 “Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities.” This ASU changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportionate basis, rather than in their entirety, as currently required under GAAP. This ASU is effective for fiscal years ending after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this ASU.

 

In August 2018, the FASB issued ASU 2018-15 “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. The provisions may be adopted prospectively or retrospectively. This ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of this ASU.

 

In August 2018, the FASB issued ASU 2018-14 “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans”. The amendments in this ASU modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant. These provisions will be applied retrospectively. This ASU is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact of this ASU.

 

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments – Credit losses: Measurement of Credit Losses on financial Instruments (Topic 326)” (“ASU 2016-13”), which modifies the measurement of expected credit losses of certain financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and will be applied as a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period for which the guidance is effective. In April 2019, the FASB issued ASU 2019-04 which addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. In May 2019, the FASB issued ASU 2019-05 “Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief” (“ASU 2019-05”), which provides targeted transition relief allowing entities to make an irrevocable one-time election upon adoption of the new credit losses standard to measure financial assets previously measured at amortized cost (except held-to-maturity securities) using the fair value option. The provisions of ASU 2019-04 related to Topic 326 and ASU 2019-05 are effective concurrent with the adoption of ASU 2016-13. We are currently evaluating the impact of these ASUs and do not expect these provisions to have a material impact on our consolidated financial statements.

 
v3.19.3
Revenue Recognition
 12 Months Ended
Sep. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenue Recognition

Note 2.

Revenue Recognition

 

We adopted ASC 606 and all related amendments on October 1, 2018 using the modified retrospective method. We recorded the transition adjustment to the opening balance of retained earnings to account for the cumulative effect of adopting ASC 606. Since we used the modified retrospective method, we have not restated comparative information, which continues to be reported under the accounting standard in effect for those periods.

 

We manufacture certain customized products that have no alternative use to us (since they are made to specific customer orders), 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 manufactured 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 increases the contract asset (unbilled receivables) balance with a corresponding reduction in finished goods inventory on our balance sheet. Due to the recurring nature of our sales of these customized products, the impact of ASC 606 is not expected to have a material impact on our consolidated financial statements in future periods.

 

The transition adjustment resulted in revenue acceleration of $183.7 million with a corresponding acceleration of cost of $133.4 million. The net increase to the opening balance of retained earnings was $43.5 million (net of tax expense of $6.8 million) as of October 1, 2018 due to the cumulative impact of adopting the new revenue standard. The adoption of ASC 606 had the following impact on our consolidated financial statements:

 

 

Consolidated Statements of Income

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

As Reported

 

 

Balances Without Adoption of ASC 606

 

 

Impact of Adoption Increase/(Decrease)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

18,289.0

 

 

$

18,297.7

 

 

$

(8.7

)

Cost of goods sold

 

$

14,540.0

 

 

$

14,555.4

 

 

$

(15.4

)

Income tax expense

 

$

(276.8

)

 

$

(275.2

)

 

$

(1.6

)

Consolidated net income

 

$

867.9

 

 

$

862.8

 

 

$

5.1

 

 

 

Consolidated Balance Sheet

 

 

 

September 30, 2019

 

(In millions)

 

As Reported

 

 

Balances Without Adoption of ASC 606

 

 

Impact of Adoption Increase/(Decrease)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

 

$

2,107.5

 

 

$

2,237.3

 

 

$

(129.8

)

Other current assets

 

$

496.2

 

 

$

308.2

 

 

$

188.0

 

Other current liabilities

 

$

571.8

 

 

$

570.2

 

 

$

1.6

 

Retained earnings

 

$

1,997.1

 

 

$

1,948.5

 

 

$

48.6

 

 

Consolidated Statement of Cash Flows

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

As Reported

 

 

Balances Without Adoption of ASC 606

 

 

Impact of Adoption Increase/(Decrease)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

867.9

 

 

$

862.8

 

 

$

5.1

 

Other assets

 

$

(124.6

)

 

$

(133.3

)

 

$

8.7

 

Inventories

 

$

(110.5

)

 

$

(95.1

)

 

$

(15.4

)

Income taxes

 

$

7.2

 

 

$

5.6

 

 

$

1.6

 

 

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 table below disaggregates our revenue by geographical market and product type (segment).

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Land and Development

 

 

Intersegment Sales

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Geographical Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

11,314.7

 

 

$

5,166.6

 

 

$

23.4

 

 

$

(155.5

)

 

$

16,349.2

 

South America

 

 

437.2

 

 

 

73.2

 

 

 

—

 

 

 

—

 

 

 

510.4

 

Europe

 

 

1.6

 

 

 

1,064.7

 

 

 

—

 

 

 

(0.1

)

 

 

1,066.2

 

Asia Pacific

 

 

63.2

 

 

 

301.5

 

 

 

—

 

 

 

(1.5

)

 

 

363.2

 

Total (1)

 

$

11,816.7

 

 

$

6,606.0

 

 

$

23.4

 

 

$

(157.1

)

 

$

18,289.0

 

 

(1)

Net sales are attributed to geographical markets based on the location of the seller.

 

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 title and risk of loss 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 aggregated within Other current assets and Other current liabilities, respectively, on the consolidated balance sheet.

 

(In millions)

 

Contract Assets

(Short-Term)

 

 

Contract Liabilities

(Short-Term)

 

 

 

 

 

 

 

 

 

 

Beginning balance - October 1, 2018

 

$

183.7

 

 

$

7.9

 

Impact of acquisition

 

 

13.0

 

 

 

—

 

Ending balance - September 30, 2019

 

 

188.0

 

 

 

7.7

 

(Decrease) / increase

 

$

(8.7

)

 

$

(0.2

)

 

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.

 

Practical Expedients and Exemptions

 

As permitted by ASC 606, we elected to use certain practical expedients in connection with our implementation of ASC 606. We treat shipping and handling activities as fulfillment activities. We 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. The election of these practical expedients results in accounting treatments that we believe are consistent with our historical accounting policies and, therefore, these elections of practical expedients do not have a material impact on comparability of our financial statements.
v3.19.3
Acquisitions and Investment
 12 Months Ended
Sep. 30, 2019
Business Combinations [Abstract]  
Acquisitions and Investment

Note 3.

Acquisitions and Investment

We account for acquisitions in accordance with ASC 805, “Business Combinations”. The estimated fair values of all assets acquired and liabilities assumed in acquisitions are provisional and may be revised as a result of additional information obtained during the measurement period of up to one year from the acquisition date. No changes in fiscal 2019 to our fiscal 2018 provisional fair value estimates of assets and liabilities assumed in acquisitions were significant.

KapStone Acquisition

On November 2, 2018, pursuant to the Merger Agreement, dated as of January 28, 2018, among WRKCo Inc. (formerly known as WestRock Company), KapStone, the Company (formerly known as Whiskey Holdco, Inc.), Whiskey Merger Sub, Inc. and Kola Merger Sub, Inc., the Company acquired all of the outstanding shares of KapStone through a transaction in which: (i) Whiskey Merger Sub, Inc. merged with and into WRKCo, with WRKCo surviving such merger as a wholly owned subsidiary of Company and (ii) Kola Merger Sub, Inc. merged with and into KapStone, with KapStone surviving such merger as a wholly owned subsidiary of the Company. Effective as of the effective time of the KapStone Acquisition (the “Effective Time”), Whiskey Holdco, Inc. changed its name to “WestRock Company” and WRKCo changed its name to “WRKCo Inc.”

KapStone is a leading North American producer and distributor of containerboard, corrugated products and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft. KapStone also owns Victory Packaging, a packaging solutions distribution company with facilities in the U.S., Canada and Mexico. We have included the financial results of KapStone in our Corrugated Packaging segment since the date of the acquisition.

Pursuant to the KapStone Acquisition, at the Effective Time, (a) each issued and outstanding share of common stock, par value $0.01 per share, of WRKCo was converted into one share of common stock, par value $0.01 per share, of the Company (“Company common stock”) and (b) each issued and outstanding share of common stock, par value $0.0001 per share, of KapStone (“KapStone common stock”) (other than shares of KapStone common stock owned by (i) KapStone or any of its subsidiaries or (ii) any KapStone stockholder who properly exercised appraisal rights with respect to its shares of KapStone common stock in accordance with Section 262 of the Delaware General Corporation Law) was automatically canceled and converted into the right to receive (1) $35.00 per share in cash, without interest (the “Cash Consideration”), or, at the election of the holder of such share of KapStone common stock, (2) 0.4981 shares of Company common stock (the “Stock Consideration”) and cash in lieu of fractional shares, subject to proration procedures designed to ensure that the Stock Consideration would be received in respect of no more than 25% of the shares of KapStone common stock issued and outstanding immediately prior to the Effective Time (the “Maximum Stock Amount”). Each share of KapStone common stock in respect of which a valid election of Stock Consideration was not made by 5:00 p.m. New York City time on September 5, 2018 was converted into the right to receive the Cash Consideration. KapStone stockholders elected to receive Stock Consideration that was less than the Maximum Stock Amount and no proration was required.

The consideration for the KapStone Acquisition was $4.9 billion including debt assumed, a long-term financing obligation and assumed equity awards. As a result, KapStone stockholders received in the aggregate approximately $3.3 billion in cash and 1.6 million shares of WestRock common stock with a value of $70.1 million, or approximately 0.6% of the issued and outstanding shares of WestRock common stock immediately following the Effective Time. Pursuant to the Merger Agreement, at the Effective Time, the Company assumed any outstanding awards granted under the equity-based incentive plans of WRKCo and KapStone (including the shares underlying such awards), the award agreements evidencing the grants of such awards and, in the case of the WRKCo equity-based incentive plans, the remaining shares available for issuance under the applicable plan, in each case subject to adjustments to such awards in the manner set forth in the Merger Agreement. Included in the consideration was $70.8 million related to outstanding KapStone equity awards that were replaced with WestRock equity awards with identical terms for pre-combination service. The amount related to post-combination service will be expensed over the remaining service period of the awards. See “Note 21. Share-Based Compensation” for additional information on the converted awards.

The following table summarizes the fair values of the assets acquired and liabilities assumed by major class of assets and liabilities as of the acquisition date, as well as adjustments made during fiscal 2019 (referred to as “measurement period adjustments”) (in millions):

 

 

Amounts Recognized as of the Acquisition Date

 

 

Measurement Period Adjustments (1)

 

 

Amounts Recognized as of Acquisition Date (as Adjusted) (2)

 

Cash and cash equivalents

 

$

8.6

 

 

$

—

 

 

$

8.6

 

Current assets, excluding cash and cash equivalents

 

 

878.9

 

 

 

(18.7

)

 

 

860.2

 

Property, plant and equipment, net

 

 

1,910.3

 

 

 

11.5

 

 

 

1,921.8

 

Goodwill

 

 

1,755.0

 

 

 

(13.8

)

 

 

1,741.2

 

Intangible assets

 

 

1,336.1

 

 

 

30.3

 

 

 

1,366.4

 

Other long-term assets

 

 

27.9

 

 

 

(0.1

)

 

 

27.8

 

Total assets acquired

 

 

5,916.8

 

 

 

9.2

 

 

 

5,926.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of debt

 

 

33.3

 

 

 

—

 

 

 

33.3

 

Current liabilities

 

 

337.5

 

 

 

7.6

 

 

 

345.1

 

Long-term debt due after one year

 

 

1,333.4

 

 

 

—

 

 

 

1,333.4

 

Accrued pension and other long-term benefits

 

 

9.8

 

 

 

2.1

 

 

 

11.9

 

Deferred income taxes

 

 

609.7

 

 

 

(2.9

)

 

 

606.8

 

Other long-term liabilities

 

 

118.4

 

 

 

2.4

 

 

 

120.8

 

Total liabilities assumed

 

 

2,442.1

 

 

 

9.2

 

 

 

2,451.3

 

Net assets acquired

 

$

3,474.7

 

 

$

—

 

 

$

3,474.7

 

 

(1)

The measurement period adjustments recorded in fiscal 2019 did not have a significant impact on our consolidated statements of income for the year ended September 30, 2019.

 

(2)

The measurement period adjustments were primarily due to refinements to third party appraisals and carrying amounts of certain assets and liabilities, as well as adjustments to certain tax accounts based on, among other things, adjustments to deferred tax liabilities. The net impact of the measurement period adjustments resulted in a net decrease to goodwill.

We are in the process of analyzing the estimated values of all assets acquired and liabilities assumed including, among other things, finalizing third-party valuations of certain tangible and intangible assets, as well as the fair value of certain contracts and the determination of certain tax balances; therefore, the allocation of the purchase price is preliminary and subject to revision.

The fair value assigned to goodwill is primarily attributable to buyer-specific synergies expected to arise after the acquisition (e.g., enhanced geographic reach of the combined organization, increased vertical integration and other synergistic opportunities) and the assembled work force of KapStone, as well as from establishing deferred tax liabilities for the assets and liabilities acquired. The goodwill and intangible assets resulting from the acquisition will not be amortizable for tax purposes.

The following table summarizes the weighted average life and the fair value of intangible assets recognized in the KapStone Acquisition, excluding goodwill (in millions):

 

 

Weighted Avg.

Life

 

 

Amounts Recognized

as of the

Acquisition Date

 

Customer relationships

 

 

11.7

 

 

$

1,303.0

 

Trademarks and tradenames

 

 

16.9

 

 

 

54.2

 

Favorable contracts

 

 

6.0

 

 

 

9.2

 

Total

 

 

11.9

 

 

$

1,366.4

 

None of the intangible assets have significant residual value. The intangible assets are expected to be amortized over estimated useful lives ranging from one to 20 years based on the approximate pattern in which the economic benefits are consumed or straight-line if the pattern was not reliably determinable.

Schlüter Acquisition

On September 4, 2018, we completed the Schlüter Acquisition to further enhance our pharmaceutical and automotive platform and expand our geographical footprint in Europe to better serve our customers. In connection

with the Schlüter Acquisition, we paid cash of $50.6 million. The purchase consideration included the assumption of $7.5 million of debt. We have included the financial results of the acquired operations in our Consumer Packaging segment since the date of the acquisition.

The allocation of consideration primarily included $9.1 million of customer relationship intangible assets, $23.7 million of goodwill, $26.5 million of property, plant and equipment and $21.1 million of liabilities including deferred taxes and the aforementioned debt. We are amortizing the customer relationship intangibles over 10.5 years based on a straight-line basis because the amortization pattern was not reliably determinable. 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), and the assembled work force, as well as due to establishing deferred tax liabilities for the difference between book and tax basis of the assets and liabilities acquired. The goodwill and intangibles are not amortizable for income tax purposes.

Plymouth Packaging Acquisition

On January 5, 2018, we completed the Plymouth Packaging Acquisition to further enhance our platform and drive differentiation and innovation. Plymouth’s “Box on Demand” systems are located on customers’ sites under multi-year exclusive agreements and use fanfold corrugated to produce custom, on-demand corrugated packaging that is accurately sized for any product type according to the customers’ specifications. We have fully integrated the approximately 60,000 tons of containerboard used by Plymouth annually. The purchase price of $203.9 million, net of cash received of $3.1 million. We have included the financial results of the acquired assets in our Corrugated Packaging segment since the date of the acquisition.

The allocation of consideration primarily included $61.9 million of customer relationship intangible assets, $59.6 million of goodwill, $36.2 million of property, plant and equipment, $26.2 million of other long-term assets consisting of assets leased to customers and equity method investments, and $12.6 million of liabilities. We are amortizing the customer relationship intangibles over 13.0 years based on a straight-line basis because the amortization pattern was not reliably determinable. 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), and the assembled work force, as well as due to establishing deferred tax liabilities for the difference between book and tax basis of the assets and liabilities acquired. The goodwill and intangibles are amortizable for income tax purposes.

Grupo Gondi Investment

On April 1, 2016, we completed the formation of a joint venture with Grupo Gondi in Mexico. We contributed $175.0 million in cash and the stock of an entity that owns three corrugated packaging facilities in Mexico in return for a 25.0% ownership interest in the joint venture together with future put and call rights. The investment was valued at approximately $0.3 billion. The majority equity holders manage the joint venture and we provide technical and commercial resources and supply certain paperboard to the joint venture. We believe the joint venture is helping to grow our presence in the attractive Mexican market. The joint venture operates paper machines, corrugated packaging and high graphic folding carton facilities across various production sites. We have included the financial results of the joint venture in our Corrugated Packaging segment since the date of the formation, and are accounting for the investment under the equity method. On October 20, 2017, we increased our ownership interest in Grupo Gondi from 27.0% to 32.3% through a $108 million capital contribution, which followed the joint venture entity having a stock redemption from a minority partner in April 2017 that increased our ownership interest to approximately 27.0%. The October 2017 capital contribution was used to support the joint venture’s capital expansion plans, which include a containerboard mill and several converting plants. The agreement governing our investment in Grupo Gondi includes future put and call rights with respect to the respective parties’ ownership interest in the joint venture which can be exercised at various points in fiscal 2020 and beyond.

Hannapak Acquisition

On August 1, 2017, we completed the Hannapak Acquisition in a stock purchase. Hanna Group is one of Australia’s leading providers of folding cartons to a variety of markets, including beverage, food, confectionery, and healthcare. The purchase consideration for the Hannapak Acquisition was $60.4 million, net of cash received of $0.6 million. We have included the financial results of the acquired operations since the date of the acquisition in our

Consumer Packaging segment.

The allocation of consideration primarily included $22.2 million of customer relationship intangible assets, $24.0 million of goodwill, $9.8 million of property, plant and equipment and $13.7 million of liabilities including deferred taxes. We are amortizing the customer relationship intangibles over 13 years based on a straight-line basis because the amortization pattern was not reliably determinable. 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), and the assembled work force, as well as due to establishing deferred tax liabilities for the difference between book and tax basis of the assets and liabilities acquired. The goodwill and intangibles are not amortizable for income tax purposes.

Island Container Acquisition

On July 17, 2017, we completed the Island Container Acquisition in an asset purchase. The assets acquired include a corrugator and corrugated converting operations located in Wheatley Heights, New York, and certain related fulfillment assets located in Saddle Brook, New Jersey. The purchase consideration for the Island Container Acquisition was $84.7 million, including a working capital settlement of $1.2 million paid in fiscal 2018. We have included the financial results of the acquired assets since the date of the acquisition in our Corrugated Packaging segment.

The allocation of consideration primarily included $43.0 million of customer relationship intangible assets, $27.2 million of goodwill, $5.4 million of property, plant and equipment and $0.8 million of liabilities. We are amortizing the customer relationship intangibles over 8.5 years based on a straight-line basis because the amortization pattern was not reliably determinable. 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), and the assembled work force. The goodwill and intangibles are amortizable for income tax purposes.

U.S. Corrugated Acquisition

On June 9, 2017, we completed the U.S. Corrugated Acquisition in a stock purchase. We acquired five corrugated converting facilities in Ohio, Pennsylvania and Louisiana that provide a comprehensive suite of products and services to customers in a variety of end markets, including food & beverage, pharmaceuticals and consumer electronics. At the time of the transaction, we expected the acquisition to provide us the opportunity to increase the vertical integration of our Corrugated Packaging segment by approximately 105,000 tons of containerboard annually through the acquired facilities and another 50,000 tons under a long-term supply contract with another company owned by the seller, and we have since completed the integration of these tons.

The purchase consideration was $193.7 million, net of cash received of $1.4 million and a $3.4 million working capital settlement received in fiscal 2018. The consideration included the issuance of 2.4 million shares of Common Stock valued at $136.1 million. We have included the financial results of U.S. Corrugated Holdings, Inc. since the date of the acquisition in our Corrugated Packaging segment.

The allocation of consideration primarily included $77.8 million of customer relationship intangible assets, $110.5 million of goodwill, $30.0 million of property, plant and equipment and $55.5 million of liabilities, including deferred income taxes. We are amortizing the customer relationship intangibles over 7.5 years based on a straight-line basis because the amortization pattern was not reliably determinable. 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), and the assembled work force, as well as due to establishing deferred tax liabilities for the difference between book and tax basis of the assets and liabilities acquired. The goodwill and intangibles are not amortizable for income tax purposes.

MPS Acquisition

On June 6, 2017, we completed the MPS Acquisition in a stock purchase. MPS is a global provider of print-based specialty packaging solutions and its differentiated product offering includes premium folding cartons, inserts, labels and rigid packaging. We acquired the outstanding shares of MPS for $18.00 per share in cash and the assumption of debt.

In connection with the MPS Acquisition, we paid cash of $1,351.1 million, net of cash received of $47.5 million. The purchase consideration included the assumption of $929.1 million of debt and $1.9 million related to MPS equity awards that were replaced with WestRock equity awards with identical terms for the pre-acquisition service. The amount related to post-acquisition service is being expensed over the remaining service period of the awards. See “Note 21. Share-Based Compensation” for additional information on the converted awards. We have included the financial results of MPS since the date of the acquisition in our Consumer Packaging segment.

The allocation of consideration primarily included $1,026.4 million of intangible assets, $900.9 million of goodwill, $469.9 million of property, plant and equipment and $1,561.6 million of liabilities and noncontrolling interests, including debt and deferred income taxes. 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, as well as due to establishing deferred tax liabilities for the difference between book and tax basis of the assets and liabilities acquired. The goodwill and intangibles are not amortizable for income tax purposes.

The following table summarizes the weighted average life and the allocation to intangible assets recognized in the MPS Acquisition, excluding goodwill (in millions):

 

 

 

Weighted Avg.

Life

 

 

Amounts

Recognized as of

the Acquisition

Date

 

Customer relationships

 

 

14.6

 

 

$

1,008.7

 

Trademarks and tradenames

 

 

3.0

 

 

 

15.2

 

Patents

 

 

10.0

 

 

 

2.5

 

Total

 

 

14.4

 

 

$

1,026.4

 

 

None of the intangibles has significant residual value. We are amortizing the customer relationship intangibles over estimated useful lives ranging from 13 to 16 years based on a straight-line basis because the amortization pattern was not reliably determinable.

Star Pizza Acquisition

 

On March 13, 2017, we completed the Star Pizza Acquisition. The transaction provided us with a leadership position in the fast growing small-run pizza box market and has increased our vertical integration. The purchase price was $34.6 million, net of a $0.7 million working capital settlement. We have fully integrated the approximately 22,000 tons of containerboard used by Star Pizza annually. We have included the financial results of the acquired assets since the date of the acquisition in our Corrugated Packaging segment.

 

The purchase price allocation for the acquisition primarily included $24.8 million of customer relationship intangible assets and $2.2 million of goodwill. We are amortizing the customer relationship intangibles over 10 years based on a straight-line basis because the amortization pattern was not reliably determinable. 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), and the assembled work force. The goodwill and intangibles are amortizable for income tax purposes.

 
v3.19.3
Restructuring and Other Costs
 12 Months Ended
Sep. 30, 2019
Restructuring And Other Costs [Abstract]  
Restructuring and Other Costs

Note 4.

Restructuring and Other Costs

Summary of Restructuring and Other Initiatives

We recorded pre-tax restructuring and other costs of $173.7 million, $105.4 million and $196.7 million for fiscal 2019, 2018 and 2017, respectively. Of these costs, $56.5 million, $27.0 million and $86.6 million were non-cash for fiscal 2019, 2018 and 2017, respectively. These amounts are not comparable since the timing and scope of the individual actions associated with each restructuring, acquisition, divestiture or integration vary. We present our restructuring and other costs in more detail below.

The following table summarizes our Restructuring and other costs for fiscal 2019, 2018 and 2017 (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Restructuring

 

$

111.0

 

 

$

39.5

 

 

$

113.4

 

Other

 

 

62.7

 

 

 

65.9

 

 

 

83.3

 

Restructuring and Other Costs

 

$

173.7

 

 

$

105.4

 

 

$

196.7

 

 

Restructuring

Our restructuring charges are primarily associated with restructuring portions of our operations (i.e. partial or complete plant closures), employee costs due to merger and acquisition-related workforce reductions and other workforce reductions, including a voluntary retirement program in fiscal 2019. When we close a facility, if necessary, we recognize a write-down to reduce the carrying value of equipment or other property to their estimated fair value less cost to sell, and record charges for severance and other employee-related costs. Any subsequent change in fair value less cost to sell prior to disposition is recognized as identified; however, no gain is recognized in excess of the cumulative loss previously recorded unless the actual selling price exceeds the original carrying value. At the time of each announced closure, we generally expect to record future period costs for equipment relocation, facility carrying costs, costs to terminate a lease or contract before the end of its term and employee-related costs.

Although specific circumstances vary, our strategy has generally been to consolidate our sales and operations into large well-equipped plants that operate at high utilization rates and take advantage of available capacity created by operational excellence initiatives and/or further optimize our system following mergers and acquisitions or a changing business environment. Therefore, we generally transfer a substantial portion of each closed plant’s assets and production to our other plants. We believe these actions have allowed us to more effectively manage our business. In our Land and Development segment, the restructuring charges primarily consisted of severance and other employee costs associated with the accelerated monetization strategy and wind-down of operations and lease costs.

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

 

 

 

2019

 

 

2018

 

 

2017

 

 

Cumulative

 

 

Total

Expected

 

Corrugated Packaging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

32.1

 

 

$

2.9

 

 

$

1.5

 

 

$

230.1

 

 

$

230.1

 

Severance and other employee costs

 

 

16.9

 

 

 

1.9

 

 

 

5.8

 

 

 

59.3

 

 

 

59.4

 

Equipment and inventory relocation costs

 

 

4.8

 

 

 

3.4

 

 

 

2.2

 

 

 

12.5

 

 

 

14.2

 

Facility carrying costs

 

 

3.9

 

 

 

3.3

 

 

 

5.4

 

 

 

32.7

 

 

 

33.8

 

Other costs

 

 

1.2

 

 

 

0.1

 

 

 

(1.1

)

 

 

14.5

 

 

 

21.2

 

Restructuring total

 

$

58.9

 

 

$

11.6

 

 

$

13.8

 

 

$

349.1

 

 

$

358.7

 

Consumer Packaging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

0.5

 

 

$

6.8

 

 

$

28.2

 

 

$

40.4

 

 

$

40.4

 

Severance and other employee costs

 

 

6.0

 

 

 

6.9

 

 

 

23.9

 

 

 

39.4

 

 

 

39.4

 

Equipment and inventory relocation costs

 

 

1.0

 

 

 

2.4

 

 

 

2.5

 

 

 

6.3

 

 

 

6.3

 

Facility carrying costs

 

 

0.2

 

 

 

0.9

 

 

 

0.7

 

 

 

2.2

 

 

 

2.2

 

Other costs (1)

 

 

4.3

 

 

 

2.0

 

 

 

20.1

 

 

 

26.4

 

 

 

26.4

 

Restructuring total

 

$

12.0

 

 

$

19.0

 

 

$

75.4

 

 

$

114.7

 

 

$

114.7

 

Land and Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

—

 

 

$

—

 

 

$

1.8

 

 

$

1.8

 

 

$

1.8

 

Severance and other employee costs

 

 

0.1

 

 

 

0.3

 

 

 

2.8

 

 

 

13.8

 

 

 

13.8

 

Other costs

 

 

—

 

 

 

3.0

 

 

 

—

 

 

 

3.0

 

 

 

3.0

 

Restructuring total

 

$

0.1

 

 

$

3.3

 

 

$

4.6

 

 

$

18.6

 

 

$

18.6

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

—

 

 

$

—

 

 

$

0.1

 

 

$

1.4

 

 

$

1.4

 

Severance and other employee costs

 

 

37.5

 

 

 

0.8

 

 

 

14.8

 

 

 

138.2

 

 

 

138.2

 

Other costs

 

 

2.5

 

 

 

4.8

 

 

 

4.7

 

 

 

18.1

 

 

 

18.1

 

Restructuring total

 

$

40.0

 

 

$

5.6

 

 

$

19.6

 

 

$

157.7

 

 

$

157.7

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

32.6

 

 

$

9.7

 

 

$

31.6

 

 

$

273.7

 

 

$

273.7

 

Severance and other employee costs

 

 

60.5

 

 

 

9.9

 

 

 

47.3

 

 

 

250.7

 

 

 

250.8

 

Equipment and inventory relocation costs

 

 

5.8

 

 

 

5.8

 

 

 

4.7

 

 

 

18.8

 

 

 

20.5

 

Facility carrying costs

 

 

4.1

 

 

 

4.2

 

 

 

6.1

 

 

 

34.9

 

 

 

36.0

 

Other costs

 

 

8.0

 

 

 

9.9

 

 

 

23.7

 

 

 

62.0

 

 

 

68.7

 

Restructuring total

 

$

111.0

 

 

$

39.5

 

 

$

113.4

 

 

$

640.1

 

 

$

649.7

 

 

 

(1)

Includes a $17.6 million impairment of a customer relationship intangible in fiscal 2017 related to an exited product line.

We have defined “Net property, plant and equipment costs” as used in this Note 4 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 and related parts and supplies on such assets, if any.

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 being 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. The divestiture costs in fiscal 2017 were

primarily associated with costs incurred during the HH&B Sale process. 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 our acquisition, divestiture and integration costs that we incurred during the last three fiscal years (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Acquisition costs

 

$

28.2

 

 

$

38.2

 

 

$

27.1

 

Integration costs

 

 

34.3

 

 

 

27.4

 

 

 

46.4

 

Divestiture costs

 

 

0.2

 

 

 

0.3

 

 

 

9.8

 

Other total

 

$

62.7

 

 

$

65.9

 

 

$

83.3

 

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

 

 

 

2019

 

 

2018

 

 

2017

 

Accrual at beginning of fiscal year

 

$

31.6

 

 

$

47.4

 

 

$

44.8

 

Accruals acquired in acquisition

 

 

—

 

 

 

—

 

 

 

3.5

 

Additional accruals

 

 

60.0

 

 

 

16.5

 

 

 

63.2

 

Payments

 

 

(55.9

)

 

 

(29.8

)

 

 

(53.3

)

Adjustment to accruals

 

 

(3.2

)

 

 

(1.0

)

 

 

(10.8

)

Foreign currency rate changes

 

 

(0.2

)

 

 

(1.5

)

 

 

—

 

Accrual at end of fiscal year

 

$

32.3

 

 

$

31.6

 

 

$

47.4

 

 

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

 

 

 

2019

 

 

2018

 

 

2017

 

Additional accruals and adjustments to accruals

   (see table above)

 

$

56.8

 

 

$

15.5

 

 

$

52.4

 

Acquisition costs

 

 

28.2

 

 

 

38.2

 

 

 

27.1

 

Integration costs

 

 

34.3

 

 

 

22.0

 

 

 

41.2

 

Divestiture costs

 

 

0.2

 

 

 

0.3

 

 

 

9.8

 

Net property, plant and equipment

 

 

32.6

 

 

 

9.7

 

 

 

31.6

 

Severance and other employee costs

 

 

6.8

 

 

 

1.3

 

 

 

3.8

 

Equipment and inventory relocation costs

 

 

5.8

 

 

 

5.8

 

 

 

4.7

 

Facility carrying costs

 

 

4.1

 

 

 

4.2

 

 

 

6.1

 

Other costs

 

 

4.9

 

 

 

8.4

 

 

 

20.0

 

Total restructuring and other costs, net

 

$

173.7

 

 

$

105.4

 

 

$

196.7

 

 
v3.19.3
Retirement Plans
 12 Months Ended
Sep. 30, 2019
Retirement Plans [Abstract]  
Retirement Plans

Note 5.

Retirement Plans

We have defined benefit pension plans and other postretirement benefit plans for certain U.S. and non-U.S. employees. Certain plans were frozen for salaried and non-union hourly employees at various times in the past, although some employees meeting certain criteria are still accruing benefits. In addition, we participate in several MEPPs that provide retirement benefits to certain union employees in accordance with various CBAs. 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 generally fully hedge against interest rate risk. After we consulted with our actuary and investment advisors, we adopted the target allocations in the table that follows for our pension plans 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.

Target Allocations

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Equity investments

 

 

15

%

 

 

15

%

 

 

20

%

 

 

22

%

Fixed income investments

 

 

75

%

 

 

75

%

 

 

72

%

 

 

70

%

Short-term investments

 

 

1

%

 

 

1

%

 

 

1

%

 

 

1

%

Other investments

 

 

9

%

 

 

9

%

 

 

7

%

 

 

7

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

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

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Equity investments

 

 

13

%

 

 

14

%

 

 

22

%

 

 

23

%

Fixed income investments

 

 

70

%

 

 

73

%

 

 

71

%

 

 

69

%

Short-term investments

 

 

9

%

 

 

3

%

 

 

2

%

 

 

2

%

Other investments

 

 

8

%

 

 

10

%

 

 

5

%

 

 

6

%

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 use a September 30 measurement date. We expect to contribute approximately $27 million to our U.S. and non-U.S. pension plans in fiscal 2020. 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.

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

 

 

 

Pension Plans

 

 

 

2019

 

 

2018

 

 

 

U.S. Plans

 

 

Non-U.S.

Plans

 

 

U.S. Plans

 

 

Non-U.S.

Plans

 

Discount rate

 

 

3.35

%

 

 

2.42

%

 

 

4.50

%

 

 

3.42

%

Rate of compensation increase

 

 

3.00

%

 

 

2.65

%

 

 

3.00

%

 

 

2.67

%

 

At September 30, 2019, 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, 2019 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 2020, our expected rate of return used to determine net periodic benefit cost is 6.25% for our U.S. plans and 4.26% for our non-U.S. plans. Our expected rates of return in fiscal 2020 are based on an analysis of our long-term expected rate of return and our current asset allocation.

During the second quarter of fiscal 2017, our year-to-date lump sum payments to certain beneficiaries of the Plan, together with several one-time severance benefit payments out of the Plan, triggered pension settlement accounting and a remeasurement of the Plan as of February 28, 2017. As a result of settlement accounting, we recognized as a current period expense a pro-rata portion of the unamortized net actuarial loss, after remeasurement, and recorded a $28.7 million non-cash charge to our earnings in the second quarter of 2017. The lump sum payments were to certain eligible former employees who were not currently receiving a monthly benefit. Eligible former employees whose present value of future pension benefits exceeded a certain minimum threshold had the option to either voluntarily accept lump sum payments or to not accept the offer and continue to be entitled to their monthly benefit upon retirement. Lump sum and one-time severance benefits payments of $203.7 million were made out of existing assets of the Plan in the first half of fiscal 2017. The discount rate used in the plan remeasurement was 4.49%, an increase from 4.04% for the Plan at September 30, 2016. The expected long-term rate of return on plan assets was unchanged. As a result of the February 28, 2017 remeasurement, the funded status of the Plan increased by $73.2 million as compared to September 30, 2016. The increase in the funded status was primarily due to a reduction in the plan obligations due to the increase in the discount rate. In the second half of fiscal 2017, we made $ 27.1 million in lump sum payments to certain beneficiaries of the Plan, resulting in total fiscal 2017 lump sum payments of $230.8 million and a total fiscal 2017 non-cash charge to our earnings of $32.6 million.

In October 2014, we entered into a master agreement with the USW that applied to substantially all of our legacy RockTenn facilities represented by the USW at that time. The agreement has a six year term and covers a number of specific items, including wages, medical coverage and certain other benefit programs, substance abuse testing and successorship. 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, and, it now covers many former MeadWestvaco, KapStone and other facilities acquired. WestRock and the USW are currently re-negotiating a successor agreement to the original master agreement.

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

 

 

 

Pension Plans

 

 

 

2019

 

 

2018

 

 

 

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

 

$

3,783.5

 

 

$

1,340.2

 

 

$

3,941.9

 

 

$

1,502.2

 

Service cost

 

 

36.0

 

 

 

6.8

 

 

 

36.7

 

 

 

8.0

 

Interest cost

 

 

189.2

 

 

 

43.4

 

 

 

157.7

 

 

 

46.9

 

Amendments

 

 

0.4

 

 

 

3.1

 

 

 

9.3

 

 

 

—

 

Actuarial loss (gain)

 

 

694.4

 

 

 

181.0

 

 

 

(186.8

)

 

 

(90.3

)

Plan participant contributions

 

 

—

 

 

 

2.2

 

 

 

—

 

 

 

2.5

 

Benefits paid

 

 

(216.8

)

 

 

(78.3

)

 

 

(175.3

)

 

 

(82.8

)

Business combinations

 

 

561.2

 

 

 

0.7

 

 

 

—

 

 

 

3.5

 

Curtailments

 

 

1.0

 

 

 

—

 

 

 

—

 

 

 

(0.7

)

Settlements

 

 

—

 

 

 

(1.7

)

 

 

—

 

 

 

(5.5

)

Foreign currency rate changes

 

 

—

 

 

 

(54.3

)

 

 

—

 

 

 

(43.6

)

Benefit obligation at end of fiscal year

 

$

5,048.9

 

 

$

1,443.1

 

 

$

3,783.5

 

 

$

1,340.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of fiscal year

 

$

3,921.2

 

 

$

1,350.2

 

 

$

4,107.9

 

 

$

1,414.7

 

Actual gain (loss) on plan assets

 

 

731.7

 

 

 

172.9

 

 

 

(24.9

)

 

 

39.9

 

Employer contributions

 

 

13.0

 

 

 

12.1

 

 

 

13.5

 

 

 

24.2

 

Plan participant contributions

 

 

—

 

 

 

2.2

 

 

 

—

 

 

 

2.5

 

Benefits paid

 

 

(216.8

)

 

 

(78.3

)

 

 

(175.3

)

 

 

(82.8

)

Business combinations

 

 

556.2

 

 

 

—

 

 

 

—

 

 

 

0.7

 

Settlements

 

 

—

 

 

 

(1.7

)

 

 

—

 

 

 

(5.5

)

Foreign currency rate changes

 

 

—

 

 

 

(56.5

)

 

 

—

 

 

 

(43.5

)

Fair value of plan assets at end of fiscal year

 

$

5,005.3

 

 

$

1,400.9

 

 

$

3,921.2

 

 

$

1,350.2

 

Funded status

 

$

(43.6

)

 

$

(42.2

)

 

$

137.7

 

 

$

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid pension asset

 

$

143.3

 

 

$

81.4

 

 

$

305.7

 

 

$

114.3

 

Other current liabilities

 

 

(14.6

)

 

 

(1.9

)

 

 

(10.1

)

 

 

(0.9

)

Pension liabilities, net of current portion

 

 

(172.3

)

 

 

(121.7

)

 

 

(157.9

)

 

 

(103.4

)

(Under) over funded status at end of fiscal year

 

$

(43.6

)

 

$

(42.2

)

 

$

137.7

 

 

$

10.0

 

 

 

Certain U.S. plans have benefit obligations in excess of plan assets. These plans, which consist primarily of non-qualified plans, have aggregate projected benefit obligations of $220.9 million, aggregate accumulated benefit obligations of $220.1 million, and aggregate fair value of plan assets of $34.0 million at September 30, 2019. Our qualified U.S. plans were in a net overfunded position at September 30, 2019.

The accumulated benefit obligation of U.S. and non-U.S. pension plans was $6,438.9 million and $5,081.3 million at September 30, 2019 and 2018, 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

 

 

 

2019

 

 

2018

 

 

 

U.S. Plans

 

 

Non-U.S.

Plans

 

 

U.S. Plans

 

 

Non-U.S.

Plans

 

Net actuarial loss

 

$

854.7

 

 

$

168.8

 

 

$

631.2

 

 

$

105.6

 

Prior service cost

 

 

27.6

 

 

 

3.4

 

 

 

32.3

 

 

 

0.3

 

Total accumulated other comprehensive loss

 

$

882.3

 

 

$

172.2

 

 

$

663.5

 

 

$

105.9

 

 

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

 

 

 

Pension Plans

 

 

 

2019

 

 

2018

 

 

2017

 

Net actuarial loss (gain) arising during period

 

$

312.0

 

 

$

38.7

 

 

$

(48.8

)

Amortization and settlement recognition of net actuarial loss

 

 

(25.3

)

 

 

(20.6

)

 

 

(57.7

)

Prior service cost arising during period

 

 

3.5

 

 

 

9.3

 

 

 

3.4

 

Amortization of prior service cost

 

 

(5.2

)

 

 

(4.7

)

 

 

(4.1

)

Net other comprehensive loss (income) recognized

 

$

285.0

 

 

$

22.7

 

 

$

(107.2

)

 

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

 

 

 

Pension Plans

 

 

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

42.8

 

 

$

44.8

 

 

$

45.1

 

Interest cost

 

 

232.6

 

 

 

204.6

 

 

 

197.8

 

Expected return on plan assets

 

 

(340.2

)

 

 

(328.4

)

 

 

(313.1

)

Amortization of net actuarial loss

 

 

24.5

 

 

 

21.2

 

 

 

25.4

 

Amortization of prior service cost

 

 

5.2

 

 

 

4.7

 

 

 

4.1

 

Curtailment loss (gain)

 

 

1.0

 

 

 

(0.6

)

 

 

—

 

Settlement (gain) loss

 

 

(0.2

)

 

 

(0.5

)

 

 

32.7

 

Special termination benefits

 

 

—

 

 

 

—

 

 

 

12.5

 

Company defined benefit plan (income) expense

 

 

(34.3

)

 

 

(54.2

)

 

 

4.5

 

Multiemployer and other plans

 

 

1.4

 

 

 

1.4

 

 

 

4.7

 

Net pension (income) cost

 

$

(32.9

)

 

$

(52.8

)

 

$

9.2

 

 

The Multiemployer and other plans line in the table above excludes the estimated withdrawal liabilities recorded in fiscal 2018 and adjustments recorded to such liabilities in fiscal 2019. See “Note 5. Retirement Plans — Multiemployer Plans” for additional information. The fiscal 2017 special termination benefits were recorded to restructuring and other costs in connection with the Combination and are excluded from the calculation of pension and other postretirement funding (more) than expense (income) in our consolidated statements of cash flows.

 

The Consolidated Statements of Income line item “Pension and other postretirement non-service income” is equal to the non-service elements of our “Company defined benefit plan (income) expense” and our “Net postretirement cost” outlined in this note excluding special termination benefits (recorded in restructuring and other costs in connection with the Combination).

 

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

 

 

 

Pension Plans

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

Discount rate

 

 

4.50

%

 

 

3.42

%

 

 

4.09

%

 

 

3.26

%

 

 

4.30

%

 

 

3.08

%

Rate of compensation increase

 

 

3.00

%

 

 

2.67

%

 

 

3.00

%

 

 

2.65

%

 

 

3.00

%

 

 

3.09

%

Expected long-term rate of return on

   plan assets

 

 

6.50

%

 

 

4.69

%

 

 

6.50

%

 

 

4.98

%

 

 

6.50

%

 

 

6.03

%

 

In fiscal 2019, 2018 and 2017, for our U.S. pension and postretirement plans, we considered the mortality tables published by the Society of Actuaries (“SOA”) and evaluated our mortality experience to establish mortality assumptions. Based on our experience and in consultation with our actuaries, in fiscal 2019 we utilized the base Pri-2012 mortality tables from the SOA’s May 2019 exposure draft with specific gender and job classification increases and applied an improvement scale with generational improvements that is generally based on Social Security Administration analysis and assumptions. The increases for fiscal 2019 were 8% for white collar males, 12% for blue collar males, 10% for white collar females, and 6% for blue collar females. Separate tables specific to contingent annuitants as provided in the SOA’s Pri-2012 exposure draft were used for beneficiaries without any specific increases applied. In fiscal 2018 and 2017, we utilized the SOA’s base RP-2014 mortality tables with specific gender and job classification increases. The increases for fiscal 2018 were 10% for white collar males, 14% for blue collar males, 11% for white collar females, and 10% for blue collar females. The increases for fiscal 2017 were 9% for white collar males, 12% for blue collar males, 11% for white collar females, and 9% for blue collar females. In fiscal 2018 and 2017 our Canadian pension and postretirement plans utilized the 2014 Private Sector Canadian Pensioners Mortality Table adjusted to reflect industry and our mortality experience and applied Canadian Pensioner’s Mortality Improvement Scale B with generational improvements. For fiscal 2019, the adjustments applied to the mortality rates under the 2014 Private Sector Canadian Pensioners Mortality Table were modified to reflect a wider set of factors pertaining to our population, in addition to industry and collar designation, such as pension amount and lifestyle factors.

The estimated losses that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal 2020 are as follows (in millions):

 

 

 

Pension Plans

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Actuarial loss

 

$

38.5

 

 

$

8.9

 

Prior service cost

 

 

5.2

 

 

 

0.3

 

Total

 

$

43.7

 

 

$

9.2

 

 

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 2020

 

$

253.1

 

 

$

75.9

 

Fiscal 2021

 

$

262.3

 

 

$

74.5

 

Fiscal 2022

 

$

266.5

 

 

$

74.6

 

Fiscal 2023

 

$

273.3

 

 

$

74.8

 

Fiscal 2024

 

$

268.8

 

 

$

74.3

 

Fiscal Years 2025 – 2029

 

$

1,405.3

 

 

$

369.0

 

 

The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2019 (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)

 

$

184.2

 

 

$

183.5

 

 

$

0.7

 

Non-U.S. equities (1)

 

 

6.5

 

 

 

6.5

 

 

 

—

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities (2)

 

 

598.2

 

 

 

—

 

 

 

598.2

 

Non-U.S. government securities (3)

 

 

125.6

 

 

 

0.2

 

 

 

125.4

 

U.S. corporate bonds (3)

 

 

2,156.0

 

 

 

137.6

 

 

 

2,018.4

 

Non-U.S. corporate bonds (3)

 

 

432.9

 

 

 

5.7

 

 

 

427.2

 

Other fixed income (4)

 

 

379.3

 

 

 

10.8

 

 

 

368.5

 

Short-term investments (5)

 

 

468.7

 

 

 

468.7

 

 

 

—

 

Benefit plan assets measured in the fair value hierarchy

 

$

4,351.4

 

 

$

813.0

 

 

$

3,538.4

 

Assets measured at NAV (6)

 

 

2,054.8

 

 

 

 

 

 

 

 

 

Total benefit plan assets

 

$

6,406.2

 

 

 

 

 

 

 

 

 

 

The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2018 (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)

 

$

165.5

 

 

$

165.5

 

 

$

—

 

Non-U.S. equities (1)

 

 

8.2

 

 

 

8.2

 

 

 

—

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities (2)

 

 

435.8

 

 

 

—

 

 

 

435.8

 

Non-U.S. government securities (3)

 

 

127.5

 

 

 

—

 

 

 

127.5

 

U.S. corporate bonds (3)

 

 

1,493.6

 

 

 

108.4

 

 

 

1,385.2

 

Non-U.S. corporate bonds (3)

 

 

380.8

 

 

 

49.3

 

 

 

331.5

 

Other fixed income (4)

 

 

319.4

 

 

 

—

 

 

 

319.4

 

Short-term investments (5)

 

 

149.0

 

 

 

149.0

 

 

 

—

 

Benefit plan assets measured in the fair value hierarchy

 

$

3,079.8

 

 

$

480.4

 

 

$

2,599.4

 

Assets measured at NAV (6)

 

 

2,191.6

 

 

 

 

 

 

 

 

 

Total benefit plan assets

 

$

5,271.4

 

 

 

 

 

 

 

 

 

 

 

(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, 2019 and 2018 (in millions):

 

 

 

Fair value

 

 

Redemption

Frequency

 

Redemption

Notice Period

 

Unfunded

Commitments

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds (1)

 

$

42.9

 

 

Monthly

 

Up to 30 days

 

$

—

 

Commingled funds, private equity, private real

   estate investments, and equity related

   investments (2)

 

 

1,188.6

 

 

Monthly

 

Up to 60 days

 

 

113.1

 

Fixed income and fixed income related

   instruments (3)

 

 

823.3

 

 

Monthly

 

Up to 10 days

 

 

—

 

 

 

$

2,054.8

 

 

 

 

 

 

$

113.1

 

September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds (1)

 

$

47.9

 

 

Monthly

 

Up to 30 days

 

$

—

 

Commingled funds, private equity, private real

   estate investments, and equity related

   investments (2)

 

 

1,092.9

 

 

Monthly

 

Up to 60 days

 

 

75.3

 

Fixed income and fixed income related

   instruments (3)

 

 

1,050.8

 

 

Monthly

 

Up to 10 days

 

 

—

 

 

 

$

2,191.6

 

 

 

 

 

 

$

75.3

 

 

 

(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. Hedge funds have been valued using NAV as a practical expedient.

 

 

(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. Commingled funds have been valued using NAV as a practical expedient.

 

 

(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. Commingled debt funds have been valued using NAV as a practical expedient.

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

 

 

 

2019

 

 

2018

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Discount rate

 

 

3.34

%

 

 

5.64

%

 

 

4.50

%

 

 

6.61

%

 

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

 

 

 

2019

 

 

2018

 

Change in projected benefit obligation:

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Benefit obligation at beginning of fiscal year

 

$

91.0

 

 

$

55.5

 

 

$

98.1

 

 

$

68.1

 

Service cost

 

 

0.7

 

 

 

0.5

 

 

 

0.7

 

 

 

0.8

 

Interest cost

 

 

4.1

 

 

 

3.6

 

 

 

3.9

 

 

 

4.0

 

Amendments

 

 

0.4

 

 

 

—

 

 

 

(1.4

)

 

 

—

 

Actuarial loss (gain)

 

 

1.6

 

 

 

22.2

 

 

 

(2.5

)

 

 

(5.2

)

Benefits paid

 

 

(6.6

)

 

 

(2.9

)

 

 

(7.8

)

 

 

(2.6

)

Business combinations

 

 

7.1

 

 

 

—

 

 

 

—

 

 

 

—

 

Curtailments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.1

)

Foreign currency rate changes

 

 

—

 

 

 

(3.2

)

 

 

—

 

 

 

(7.5

)

Benefit obligation at end of fiscal year

 

$

98.3

 

 

$

75.7

 

 

$

91.0

 

 

$

55.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of fiscal year

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Employer contributions

 

 

6.6

 

 

 

2.9

 

 

 

7.8

 

 

 

2.6

 

Plan participant contributions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Benefits paid

 

 

(6.6

)

 

 

(2.9

)

 

 

(7.8

)

 

 

(2.6

)

Fair value of plan assets at end of fiscal year

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Funded Status

 

$

(98.3

)

 

$

(75.7

)

 

$

(91.0

)

 

$

(55.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

(8.9

)

 

$

(3.0

)

 

$

(8.8

)

 

$

(2.9

)

Postretirement benefit liabilities, net of current portion

 

 

(89.4

)

 

 

(72.7

)

 

 

(82.2

)

 

 

(52.6

)

Under funded status at end of fiscal year

 

$

(98.3

)

 

$

(75.7

)

 

$

(91.0

)

 

$

(55.5

)

 

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

 

 

 

2019

 

 

2018

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Net actuarial (gain) loss

 

$

(8.0

)

 

$

18.8

 

 

$

(11.2

)

 

$

(3.8

)

Prior service credit

 

 

(8.3

)

 

 

(0.9

)

 

 

(11.3

)

 

 

(1.0

)

Total accumulated other comprehensive (income) loss

 

$

(16.3

)

 

$

17.9

 

 

$

(22.5

)

 

$

(4.8

)

 

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

 

 

 

Postretirement Plans

 

 

 

2019

 

 

2018

 

 

2017

 

Net actuarial loss (gain) arising during period

 

$

23.9

 

 

$

(9.7

)

 

$

14.7

 

Amortization and settlement recognition of net actuarial

   gain (loss)

 

 

2.0

 

 

 

(0.3

)

 

 

1.3

 

Prior service cost (credit) arising during period

 

 

0.4

 

 

 

(1.5

)

 

 

(4.4

)

Amortization or curtailment recognition of prior service credit

 

 

2.8

 

 

 

4.4

 

 

 

4.5

 

Net other comprehensive loss (income) recognized

 

$

29.1

 

 

$

(7.1

)

 

$

16.1

 

 

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

 

 

 

Postretirement Plans

 

 

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

1.2

 

 

$

1.5

 

 

$

0.9

 

Interest cost

 

 

7.7

 

 

 

7.9

 

 

 

7.4

 

Amortization of net actuarial (gain) loss

 

 

(2.0

)

 

 

0.3

 

 

 

(1.3

)

Amortization of prior service credit

 

 

(2.8

)

 

 

(4.4

)

 

 

(4.5

)

Curtailment gain

 

 

—

 

 

 

(0.1

)

 

 

(0.3

)

Net postretirement cost

 

$

4.1

 

 

$

5.2

 

 

$

2.2

 

 

The assumed health care cost trend rates used in measuring the accumulated postretirement benefit obligation (“APBO”) are as follows at September 30, 2019:

 

U.S. Plans

 

 

 

 

Health care cost trend rate assumed for next year

 

 

5.87

%

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

   trend rate)

 

 

4.42

%

Year the rate reaches the ultimate trend rate

 

2037

 

 

 

 

 

 

Non-U.S. Plans

 

 

 

 

Health care cost trend rate assumed for next year

 

 

5.91

%

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

   trend rate)

 

 

5.91

%

Year the rate reaches the ultimate trend rate

 

2019

 

 

As of September 30, 2019, the effect of a 1% change in the assumed health care cost trend rate would increase the APBO by approximately $12 million or decrease the APBO by approximately $10 million, and would increase the

annual net periodic postretirement benefit cost for fiscal 2019 by $1 million or decrease the annual net periodic postretirement benefit cost for fiscal 2019 by approximately $1 million.

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

 

 

 

Postretirement Plans

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

Discount rate

 

 

4.50

%

 

 

6.61

%

 

 

4.09

%

 

 

6.51

%

 

 

4.04

%

 

 

6.64

%

Rate of compensation increase

 

N/A

 

 

N/A

 

 

N/A

 

 

 

7.37

%

 

N/A

 

 

 

3.14

%

 

The estimated gains that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal 2020 are as follows (in millions):

 

 

 

Postretirement Plans

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Actuarial gain

 

$

(1.4

)

 

$

(0.7

)

Prior service credit

 

 

(2.6

)

 

 

0.2

 

Total

 

$

(4.0

)

 

$

(0.5

)

 

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 2020

 

$

9.4

 

 

$

2.9

 

Fiscal 2021

 

$

8.2

 

 

$

3.0

 

Fiscal 2022

 

$

7.8

 

 

$

3.1

 

Fiscal 2023

 

$

7.4

 

 

$

3.2

 

Fiscal 2024

 

$

7.0

 

 

$

3.3

 

Fiscal Years 2025 – 2029

 

$

30.8

 

 

$

17.8

 

 

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:

 

•

assets contributed to a MEPP by one employer are used to provide benefits to employees of all participating employers,

 

•

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

 

•

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.

Our contributions to a particular MEPP 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. Factors that could impact the funded status of a MEPP include, without limitation, investment performance, changes in participant demographics, decline in the number of contributing employers, changes in actuarial assumptions and the utilization of extended amortization provisions. We believe that certain of the MEPPs in which we participate or have participated, including the PIUMPF, have material unfunded vested benefits. The Pension Act established three categories, or “zones”, for the funded status of plans. Among other factors, plans in the green zone are at least 80% funded and are designated as healthy, plans in the yellow zone are greater than 65% but less than 80% funded and are designated as endangered and plans in the red zone are generally less than

65% funded and are designated as critical or critical and declining. Each plan’s actuary must certify the plan status annually. Several of the MEPPs in which we participate or have participated, including PIUMPF, have been certified in the red zone for critical and declining.

A FIP or RP requires a particular MEPP to adopt measures to correct its underfunded status. These measures may include, but are not limited to, an increase in our contribution rate from that provided in the applicable CBA, a reallocation of the contributions already being made by participating employers for various benefits to individuals participating in the MEPP, and/or a reduction in the benefits to be paid to future and/or current retirees. In addition, the Pension Act requires that a 5% surcharge be levied on employer contributions for the first year commencing shortly after the date the employer receives notice that the MEPP is certified in the red zone and a 10% surcharge on each succeeding year until a CBA is in place with terms and conditions consistent with the RP. On January 1, 2016, the surcharge we paid for PIUMPF increased from 10% to 15%.

In the normal course of business, we evaluate our potential exposure to MEPPs, including with respect to potential withdrawal liabilities. During fiscal 2018, we submitted formal notification to withdraw from PIUMPF and recorded an estimated withdrawal liability of $180.0 million. The estimated withdrawal liability assumes payment over 20 years, discounted at a credit adjusted risk-free rate of 3.83%, and that PIUMPF’s demand related to the withdrawal would include both a payment for withdrawal liability and for our proportionate share of PIUMPF’s accumulated funding deficiency. The estimated withdrawal liability noted above excludes the potential impact of a future mass withdrawal of other employers from PIUMPF, which is not considered probable or reasonably estimable at this time. Due to the absence of specific information regarding matters such as PIUMPF’s current financial situation, our estimate is subject to revision. In fiscal 2019, we revised our estimate of the withdrawal liability, the impact of which was not significant.

In addition, in fiscal 2018, we submitted formal notification to withdraw from Central States and recorded an estimated withdrawal liability of $4.2 million on a discounted basis. It is reasonably possible that we may incur withdrawal liabilities with respect to certain other MEPPs in connection with such withdrawals. Our estimate of any such withdrawal liability, both individually and in the aggregate, is not material for the remaining plans in which we participate.

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 demand did not address any assertion of liability for PIUMPF’s accumulated funding deficiency. In October 2019, we received two additional demand letters from PIUMPF related to a subsidiary asserting that we owe $2.3 million on an undiscounted basis to be paid over 20 years with respect to the subsidiary’s withdrawal liability and $2.0 million for its accumulated funding deficiency. We are evaluating each of these demands. We expect to challenge the accumulated funding deficiency. We expect to begin making monthly payments for these withdrawal liabilities in fiscal 2020.

At September 30, 2019 and September 30, 2018, we had withdrawal liabilities recorded of $237.2 million and $247.8 million, respectively. The impact of future withdrawal liabilities, future funding obligations or increased contributions may be material to our results of operations, cash flows and financial condition and the trading price of our Common Stock.

Approximately 46% of our employees are covered by CBAs in the U.S. and Canada, of which approximately 17% are covered by CBAs that expire within one year and another 4% are covered by CBAs that have expired.

The following table lists our participation in our multiemployer and other plans that are individually significant for the years ended September 30 (in millions):

 

Pension Fund

 

EIN /

Pension

Plan Number

 

Pension Act

Zone Status

 

FIP / RP

Status

Pending /

Implemented

 

Contributions (1)

 

 

Surcharge

imposed?

 

Expiration

CBA

 

 

 

 

2019

 

2018

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

 

 

U.S. Multiemployer plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pace Industry Union-Management

   Pension Fund (2)

 

11-6166763 /

001

 

Red

 

Red

 

Implemented

 

$

—

 

 

$

0.9

 

 

$

3.5

 

 

Yes

 

9/30/20 to

6/25/23

Other Funds (3)

 

 

 

 

 

 

 

 

 

 

1.4

 

 

 

0.5

 

 

 

1.6

 

 

 

 

 

Total Contributions:

 

 

 

 

 

 

 

 

 

$

1.4

 

 

$

1.4

 

 

$

5.1

 

 

 

 

 

 

(1)

Contributions represent the amounts contributed to the plan during the fiscal year.

 

(2)

In fiscal 2019 and 2018, our contributions did not exceed 5% of total plan contributions due to our withdrawal from PIUMPF. In fiscal 2017, we did exceed 5% of total plan contributions.

 

(3)

One additional MEPP in which we participate have been certified as critical and declining.

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, 2019, 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, certain employees covered by CBAs and non-U.S. defined contribution programs receive generally up to a 3.0% to 4.0% contribution to their 401(k) plan or defined contribution plan. During fiscal 2019, 2018 and 2017, we recorded expense of $150.9 million, $113.7 million and $104.1 million, respectively, related to matching contributions to the 401(k) plans and other defined contribution plans, including the automatic employer contribution.

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, 2019, the Supplemental Plans had assets totaling $173.0 million that are recorded at market value, and liabilities of $181.9 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.
v3.19.3
Income Taxes
 12 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

Note 6.

Income Taxes

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

 

 

 

Year Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

United States

 

$

891.6

 

 

$

736.7

 

 

$

481.9

 

Foreign

 

 

253.1

 

 

 

298.1

 

 

 

375.7

 

Income before income taxes

 

$

1,144.7

 

 

$

1,034.8

 

 

$

857.6

 

 

Impacts of the Tax Act

 

On December 22, 2017, the U.S. enacted comprehensive tax legislation, commonly referred to as the Tax Act, which made broad and complex changes to the tax code. In conjunction with guidance set forth under SAB 118 pertaining to the Tax Act, we recorded provisional amounts both for the impact of remeasurement on its U.S. net deferred tax liabilities to the new U.S. statutory rate of 21% and for the mandatory transition tax on unrepatriated foreign earnings during fiscal 2018. During the first quarter of fiscal 2019, we completed the accounting for the income tax effect related to the Tax Act and made the following adjustments to the provisional amounts: (i) a $0.4 million tax expense from the true up and revaluation of deferred tax assets and liabilities to reflect the new tax rate and (ii) an additional $3.7 million tax expense, as a result of the refinement to the transition tax provisional liability. We have reclassified the transition tax liability for financial statement purposes to a reserve for uncertain tax position due to uncertainty in the realizability of certain foreign earnings and profits deficits.

 

For fiscal 2019, we are subject to several provisions of the Tax Act, including computations under Global Intangible Low Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), Base Erosion and Anti-Abuse Tax (“BEAT”), and IRC Section 163(j) interest limitation (“Interest Limitation”) rules. We recorded the immaterial tax impact of GILTI, FDII and Interest Limitation computations in our effective tax rate for fiscal 2019. For the BEAT computation, we have not recorded any amount in our effective tax rate for fiscal 2019 because we estimate that this provision of the Tax Act will not impact tax expense for the fiscal year.

 

As part of the enacted Tax Act, GILTI provisions were introduced that would impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. In January 2018, the FASB issued a question-and-answer document, stating that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. The GILTI provisions did not take effect for WestRock until fiscal 2019, and the Company has elected to treat any potential GILTI inclusions as a period cost during the year incurred.

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

 

 

 

Year Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Current income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

134.7

 

 

$

83.0

 

 

$

80.8

 

State

 

 

34.9

 

 

 

26.8

 

 

 

3.3

 

Foreign

 

 

69.5

 

 

 

86.6

 

 

 

95.3

 

Total current expense

 

 

239.1

 

 

 

196.4

 

 

 

179.4

 

Deferred income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

44.1

 

 

 

(1,108.6

)

 

 

15.2

 

State

 

 

6.1

 

 

 

53.2

 

 

 

(22.8

)

Foreign

 

 

(12.5

)

 

 

(15.5

)

 

 

(12.8

)

Total deferred expense (benefit)

 

 

37.7

 

 

 

(1,070.9

)

 

 

(20.4

)

Total income tax expense (benefit)

 

$

276.8

 

 

$

(874.5

)

 

$

159.0

 

 

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

 

 

 

Year Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Statutory federal tax rate

 

 

21.0

%

 

 

24.5

%

 

 

35.0

%

Foreign rate differential

 

 

1.3

 

 

 

0.6

 

 

 

(4.9

)

Adjustment and resolution of federal, state and foreign tax

   uncertainties

 

 

1.2

 

 

 

0.9

 

 

 

(0.3

)

State taxes, net of federal benefit

 

 

2.5

 

 

 

4.3

 

 

 

3.3

 

Tax Act (1)

 

 

—

 

 

 

(109.1

)

 

 

—

 

Excess tax benefit related to stock compensation

 

 

(0.3

)

 

 

(0.8

)

 

 

—

 

Research and development and other tax credits, net of

   valuation allowances and reserves

 

 

(0.7

)

 

 

(0.5

)

 

 

(0.8

)

Income attributable to noncontrolling interest

 

 

(0.1

)

 

 

(0.1

)

 

 

0.4

 

Domestic manufacturer’s deduction

 

 

—

 

 

 

(1.8

)

 

 

(2.0

)

Sale of HH&B

 

 

—

 

 

 

—

 

 

 

(5.0

)

U.S. legal entity restructuring

 

 

—

 

 

 

—

 

 

 

(3.3

)

Change in valuation allowance

 

 

0.2

 

 

 

(1.8

)

 

 

(3.3

)

Nondeductible transaction costs

 

 

1.0

 

 

 

—

 

 

 

1.0

 

Nontaxable increased cash surrender value

 

 

(0.6

)

 

 

(0.8

)

 

 

(1.5

)

Withholding taxes

 

 

0.6

 

 

 

0.5

 

 

 

0.4

 

Brazilian net worth deduction

 

 

(0.9

)

 

 

(0.9

)

 

 

(0.8

)

Other, net

 

 

(1.0

)

 

 

0.5

 

 

 

0.3

 

Effective tax rate

 

 

24.2

%

 

 

(84.5

)%

 

 

18.5

%

 

(1)

For the year ended September 30, 2018, the primary components are a $1,215.9 million benefit from the remeasurement of our net U.S. deferred tax liability and a one-time transition tax liability of $95.4 million or $87.1 million net of the release of a previously recorded outside basis difference.

 

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

 

 

September 30,

 

 

 

2019

 

 

2018

 

Deferred income tax assets:

 

 

 

 

 

 

 

 

Accruals and allowances

 

$

10.7

 

 

$

22.1

 

Employee related accruals and allowances

 

 

221.2

 

 

 

213.2

 

Pension

 

 

0.7

 

 

 

—

 

State net operating loss carryforwards

 

 

57.6

 

 

 

78.4

 

State credit carryforwards, net of federal benefit

 

 

69.5

 

 

 

64.8

 

U.S. and foreign tax credit carryforwards

 

 

0.7

 

 

 

14.7

 

Federal and foreign net operating loss carryforwards

 

 

173.5

 

 

 

188.7

 

Restricted stock and options

 

 

39.3

 

 

 

46.7

 

Other

 

 

52.1

 

 

 

45.3

 

Total

 

 

625.3

 

 

 

673.9

 

Deferred income tax liabilities:

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

1,840.5

 

 

 

1,509.7

 

Deductible intangibles and goodwill

 

 

914.7

 

 

 

698.1

 

Inventory reserves

 

 

188.3

 

 

 

168.6

 

Deferred gain

 

 

275.2

 

 

 

258.8

 

Pension obligations

 

 

—

 

 

 

60.1

 

Basis difference in joint ventures

 

 

33.1

 

 

 

35.5

 

Total

 

 

3,251.8

 

 

 

2,730.8

 

Valuation allowances

 

 

218.0

 

 

 

229.4

 

Net deferred income tax liability

 

$

2,844.5

 

 

$

2,286.3

 

 

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

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Long-term deferred tax asset (1)

 

$

33.5

 

 

$

35.2

 

Long-term deferred tax liability

 

 

2,878.0

 

 

 

2,321.5

 

Net deferred income tax liability

 

$

2,844.5

 

 

$

2,286.3

 

 

 

(1)

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

At September 30, 2019 and September 30, 2018, we had gross U.S. federal net operating losses of approximately $4.0 million and $13.3 million, respectively. These loss carryforwards generally expire between fiscal 2031 and 2038.

At September 30, 2019 we had no alternative minimum tax credits outstanding. Under current tax law, the alternative minimum tax credit carryforwards became refundable tax credits which we fully utilized. At September 30, 2018, we had alternative minimum tax credits of $14.7 million. We had no research and development tax credits and general business credit carryforwards at September 30, 2019.

At September 30, 2019 and September 30, 2018, we had gross state and local net operating losses, of approximately $1,638 million and $1,676 million, respectively. These loss carryforwards generally expire between fiscal 2021 and 2039. The tax effected values of these net operating losses are $57.6 million and $78.4 million at September 30, 2019 and 2018, respectively, exclusive of valuation allowances of $10.2 million and $7.8 million at September 30, 2019 and 2018, respectively.

At September 30, 2019 and September 30, 2018, gross net operating losses for foreign reporting purposes of approximately $663.2 million and $698.4 million, respectively, were available for carryforward. A majority of these loss carryforwards generally expire between fiscal 2021 and 2039, while a portion have an indefinite carryforward. The tax effected values of these net operating losses are $172.5 million and $185.8 million at September 30, 2019 and 2018, respectively, exclusive of valuation allowances of $144.1 million and $161.5 million at September 30, 2019 and 2018, respectively.

At September 30, 2019 and 2018, we had state tax credit carryforwards of $69.5 million and $64.8 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 $56.8 million and $56.1 million at September 30, 2019 and 2018, 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 2019, 2018 and 2017 (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of fiscal year

 

$

229.4

 

 

$

219.1

 

 

$

177.2

 

Increases

 

 

25.4

 

 

 

50.8

 

 

 

54.3

 

Allowances related to purchase accounting (1)

 

 

0.8

 

 

 

0.1

 

 

 

12.4

 

Reductions

 

 

(37.6

)

 

 

(40.6

)

 

 

(24.8

)

Balance at end of fiscal year

 

$

218.0

 

 

$

229.4

 

 

$

219.1

 

 

 

(1)

Amounts in fiscal 2019 relate to the KapStone Acquisition. Amounts in fiscal 2018 and 2017 relate to the MPS Acquisition.

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, 2019, we estimate our outside basis difference in foreign subsidiaries that are considered indefinitely reinvested to be approximately $1.6 billion. The components of the outside basis difference are comprised of purchase accounting adjustments, undistributed earnings, and equity components. Except for the portion of our earnings from certain foreign subsidiaries where we provided for taxes, we have not provided for any taxes that would be due upon the reversal of the outside basis differences. However, 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, 2019, 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):

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of fiscal year

 

$

127.1

 

 

$

148.9

 

 

$

166.8

 

Additions related to purchase accounting (1)

 

 

1.0

 

 

 

3.4

 

 

 

7.7

 

Additions for tax positions taken in current year (2)

 

 

103.8

 

 

 

3.1

 

 

 

5.0

 

Additions for tax positions taken in prior fiscal years

 

 

1.8

 

 

 

18.0

 

 

 

15.2

 

Reductions for tax positions taken in prior fiscal years

 

 

(0.5

)

 

 

(5.3

)

 

 

(25.6

)

Reductions due to settlement (3)

 

 

(4.0

)

 

 

(29.4

)

 

 

(14.1

)

(Reductions) additions for currency translation adjustments

 

 

(1.7

)

 

 

(9.6

)

 

 

2.0

 

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

   limitations

 

 

(3.2

)

 

 

(2.0

)

 

 

(8.1

)

Balance at end of fiscal year

 

$

224.3

 

 

$

127.1

 

 

$

148.9

 

 

 

(1)

Amounts in fiscal 2019 relate to the KapStone Acquisition. Amounts in fiscal 2018 and 2017 relate to the MPS Acquisition.

 

 

(2)

Additions for tax positions taken in current fiscal year includes primarily positions taken related to foreign subsidiaries.

 

(3)

Amounts in fiscal 2019 relate to the settlements of state and foreign audit examinations. Amounts in fiscal 2018 relate to the settlement of state audit examinations and federal and state amended returns filed related to affirmative adjustments for which there was a reserve. Amounts in fiscal 2017 relate to the settlement of federal and state audit examinations with taxing authorities.

As of September 30, 2019 and 2018, the total amount of unrecognized tax benefits was approximately $224.3 million and $127.1 million, respectively, exclusive of interest and penalties. Of these balances, as of September 30, 2019 and 2018, if we were to prevail on all unrecognized tax benefits recorded, approximately $207.5 million and $108.7 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 18. Commitments and Contingencies — Brazil Tax Liability”

We recognize estimated interest and penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of income. As of September 30, 2019, we had liabilities of $80.0 million related to estimated interest and penalties for unrecognized tax benefits. As of September 30, 2018, we had liabilities of $70.4 million, related to estimated interest and penalties for unrecognized tax benefits. Our results of operations for the fiscal year ended September 30, 2019, 2018 and 2017 include expense of $9.7 million, $5.8 million and $7.4 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, 2019, it is reasonably possible that our unrecognized tax benefits will decrease by up to $8.7 million in the next twelve months due to expiration of various statues 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 and state and local income tax examinations by tax authorities for years prior to fiscal 2016 and fiscal 2009, respectively. We are no longer subject to non-U.S. income tax examinations by tax authorities for years prior to fiscal 2012, 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 there can be no assurance that any modifications will not materially and adversely affect our results of operations, financial condition or cash flows.
v3.19.3
Segment Information
 12 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information

Note 7.

Segment Information

Effective in the first quarter of fiscal 2019, we aligned our financial results for all periods presented to move our merchandising displays operations from our Consumer Packaging segment to our Corrugated Packaging segment and to allocate certain previously non-allocated costs and certain pension and other postretirement non-service income (expense) to our reportable segments. Separately, in the first quarter of fiscal 2019, we began conducting our recycling operations primarily as a procurement function. Since then, recycling net sales have not been recorded and the margin from these operations has reduced cost of goods sold. Following the realignment, we report our financial results of operations in the following three reportable segments: Corrugated Packaging, which consists of our containerboard mills, corrugated packaging and distribution operations, as well as our merchandising displays and recycling procurement operations; Consumer Packaging, which consists of our consumer mills, food and beverage and partition operations; and Land and Development, which sells real estate, primarily in the Charleston, SC region. Prior to the HH&B Sale, our Consumer Packaging segment included HH&B. Certain income and expenses are not allocated to our segments and, thus, the information that management uses to make operating decisions and assess performance does not reflect such amounts. Items not allocated are reported as non-allocated expenses or in other line items in the table below after segment income.

Some of our operations included in the segments are located in locations such as Canada, Mexico, South America, Europe, Asia and Australia. 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, except percentages):

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Foreign net sales to unaffiliated customers

 

$

3,332.4

 

 

$

3,236.7

 

 

$

2,621.2

 

Foreign segment income

 

$

392.3

 

 

$

360.7

 

 

$

260.1

 

Foreign long-lived assets

 

$

1,466.4

 

 

$

1,400.2

 

 

$

1,558.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign operations as a percent of consolidated operations:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign net sales to unaffiliated customers

 

 

18.2

%

 

 

19.9

%

 

 

17.6

%

Foreign segment income

 

 

21.9

%

 

 

21.1

%

 

 

21.4

%

Foreign long-lived assets

 

 

13.1

%

 

 

15.4

%

 

 

17.1

%

 

We evaluate performance and allocate resources based, in part, on profit from operations before income taxes, interest and other items. 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 segment income, as well as our investments in unconsolidated entities in segment identifiable assets. Equity in income of unconsolidated entities is not material and we disclose our investments in unconsolidated entities below.

The following table shows selected operating data for our segments (in millions):

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Net sales (aggregate):

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

11,816.7

 

 

$

9,693.0

 

 

$

9,084.8

 

Consumer Packaging

 

 

6,606.0

 

 

 

6,617.5

 

 

 

5,698.3

 

Land and Development

 

 

23.4

 

 

 

142.4

 

 

 

243.8

 

Total

 

$

18,446.1

 

 

$

16,452.9

 

 

$

15,026.9

 

Less net sales (intersegment):

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

75.3

 

 

$

87.3

 

 

$

78.8

 

Consumer Packaging

 

 

81.8

 

 

 

80.5

 

 

 

88.4

 

Total

 

$

157.1

 

 

$

167.8

 

 

$

167.2

 

Net sales (unaffiliated customers):

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

11,741.4

 

 

$

9,605.7

 

 

$

9,006.0

 

Consumer Packaging

 

 

6,524.2

 

 

 

6,537.0

 

 

 

5,609.9

 

Land and Development

 

 

23.4

 

 

 

142.4

 

 

 

243.8

 

Total

 

$

18,289.0

 

 

$

16,285.1

 

 

$

14,859.7

 

Segment income:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

1,399.6

 

 

$

1,240.0

 

 

$

818.0

 

Consumer Packaging

 

 

388.1

 

 

 

445.1

 

 

 

385.7

 

Land and Development

 

 

2.5

 

 

 

22.5

 

 

 

13.8

 

Segment income

 

 

1,790.2

 

 

 

1,707.6

 

 

 

1,217.5

 

Gain on sale of certain closed facilities

 

 

52.6

 

 

 

—

 

 

 

—

 

Multiemployer pension withdrawal income (expense)

 

 

6.3

 

 

 

(184.2

)

 

 

—

 

Pension lump sum settlement

 

 

—

 

 

 

—

 

 

 

(32.6

)

Land and Development impairments

 

 

(13.0

)

 

 

(31.9

)

 

 

(46.7

)

Restructuring and other costs

 

 

(173.7

)

 

 

(105.4

)

 

 

(196.7

)

Non-allocated expenses

 

 

(83.7

)

 

 

(70.1

)

 

 

(67.5

)

Interest expense, net

 

 

(431.3

)

 

 

(293.8

)

 

 

(222.5

)

Loss (gain) on extinguishment of debt

 

 

(5.1

)

 

 

(0.1

)

 

 

1.8

 

Other income, net

 

 

2.4

 

 

 

12.7

 

 

 

11.5

 

Gain on sale of HH&B

 

 

—

 

 

 

—

 

 

 

192.8

 

Income before income taxes

 

$

1,144.7

 

 

$

1,034.8

 

 

$

857.6

 

 

In October 2018, our containerboard and pulp mill located in Panama City, FL sustained extensive damage from Hurricane Michael. In fiscal 2019, we received $180.0 million of insurance proceeds that were recorded as a reduction of cost of goods sold in our Corrugated Packaging segment. The insurance proceeds consisted of $55.3 million for business interruption recoveries and $124.7 million for direct costs and property damage. Our consolidated statements of cash flow in fiscal 2019 included $154.5 million in net cash provided by operating activities and $25.5 million in net cash used for investing activities.

Segment income in fiscal 2019, 2018 and 2017 was reduced by $24.7 million, $1.0 million and $26.5 million, respectively, of expense for inventory stepped-up in purchase accounting, net of related LIFO impact. The Corrugated Packaging segment income in fiscal 2019 was reduced by $24.7 million. Corrugated Packaging segment income in fiscal 2018 was reduced by $1.0 million. Corrugated Packaging segment income and Consumer Packaging segment income in fiscal 2017 were reduced by $1.4 million and $25.1 million, respectively.

 

The following table shows selected operating data for our segments (in millions):

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Identifiable assets:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

16,681.1

 

 

$

11,069.6

 

 

$

10,959.7

 

Consumer Packaging

 

 

11,038.7

 

 

 

11,511.1

 

 

 

11,455.8

 

Land and Development

 

 

28.3

 

 

 

49.1

 

 

 

89.8

 

Assets held for sale

 

 

25.8

 

 

 

59.5

 

 

 

173.6

 

Corporate

 

 

2,382.8

 

 

 

2,671.2

 

 

 

2,410.1

 

Total

 

$

30,156.7

 

 

$

25,360.5

 

 

$

25,089.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

3,695.0

 

 

$

1,966.7

 

 

$

1,941.5

 

Consumer Packaging

 

 

3,590.6

 

 

 

3,610.9

 

 

 

3,586.8

 

Total

 

$

7,285.6

 

 

$

5,577.6

 

 

$

5,528.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangibles, net:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

1,655.1

 

 

$

506.2

 

 

$

540.4

 

Consumer Packaging

 

 

2,404.4

 

 

 

2,615.8

 

 

 

2,788.9

 

Total

 

$

4,059.5

 

 

$

3,122.0

 

 

$

3,329.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

950.6

 

 

$

700.5

 

 

$

622.1

 

Consumer Packaging

 

 

552.1

 

 

 

546.5

 

 

 

484.9

 

Land and Development

 

 

—

 

 

 

0.7

 

 

 

0.7

 

Corporate

 

 

8.5

 

 

 

4.5

 

 

 

4.4

 

Total

 

$

1,511.2

 

 

$

1,252.2

 

 

$

1,112.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

961.4

 

 

$

657.3

 

 

$

503.9

 

Consumer Packaging

 

 

365.9

 

 

 

308.3

 

 

 

254.0

 

Corporate

 

 

41.8

 

 

 

34.3

 

 

 

20.7

 

Total

 

$

1,369.1

 

 

$

999.9

 

 

$

778.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in unconsolidated entities:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

457.1

 

 

$

455.6

 

 

$

342.8

 

Consumer Packaging

 

 

11.6

 

 

 

1.8

 

 

 

3.0

 

Land and Development

 

 

—

 

 

 

—

 

 

 

14.4

 

Corporate

 

 

0.4

 

 

 

0.4

 

 

 

0.4

 

Total

 

$

469.1

 

 

$

457.8

 

 

$

360.6

 

The Corrugated Packaging segment’s investment in unconsolidated entities primarily relates to the Grupo Gondi investment. The investment in Grupo Gondi that is included in the Corrugated Packaging segment’s investment in unconsolidated entities in fiscal 2019 and 2018 exceeds our proportionate share of the underlying equity in net assets by approximately $121.4 million and $133.9 million, respectively. Approximately $53.1 million and $62.1 million remains amortizable to expense in equity in income of unconsolidated entities over the estimated life of the underlying assets ranging from 10 to 15 years beginning with our investment in fiscal 2016. The Gondi investment is denominated in Mexican Pesos. See “Note 3. Acquisitions and Investment” for information regarding changes in our equity participation in the Grupo Gondi joint venture.

The changes in the carrying amount of goodwill for the fiscal years ended September 30, 2019, 2018 and 2017 are as follows (in millions):

 

 

 

Corrugated

Packaging

 

 

Consumer

Packaging

 

 

Total

 

Balance as of October 1, 2016

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

1,798.4

 

 

$

3,022.5

 

 

$

4,820.9

 

Accumulated impairment losses

 

 

(0.1

)

 

 

(42.7

)

 

 

(42.8

)

 

 

 

1,798.3

 

 

 

2,979.8

 

 

 

4,778.1

 

Goodwill acquired

 

 

137.6

 

 

 

907.8

 

 

 

1,045.4

 

Goodwill disposed of

 

 

—

 

 

 

(329.6

)

 

 

(329.6

)

Purchase price allocation adjustments

 

 

(1.2

)

 

 

9.3

 

 

 

8.1

 

Translation adjustments

 

 

6.8

 

 

 

19.5

 

 

 

26.3

 

Balance as of September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

1,941.6

 

 

 

3,629.5

 

 

 

5,571.1

 

Accumulated impairment losses

 

 

(0.1

)

 

 

(42.7

)

 

 

(42.8

)

 

 

 

1,941.5

 

 

 

3,586.8

 

 

 

5,528.3

 

Goodwill acquired

 

 

65.4

 

 

 

23.8

 

 

 

89.2

 

Goodwill disposed of

 

 

(4.2

)

 

 

—

 

 

 

(4.2

)

Purchase price allocation adjustments

 

 

2.3

 

 

 

18.4

 

 

 

20.7

 

Translation adjustments

 

 

(38.3

)

 

 

(18.1

)

 

 

(56.4

)

Balance as of September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

1,966.8

 

 

 

3,653.6

 

 

 

5,620.4

 

Accumulated impairment losses

 

 

(0.1

)

 

 

(42.7

)

 

 

(42.8

)

 

 

 

1,966.7

 

 

 

3,610.9

 

 

 

5,577.6

 

Goodwill acquired

 

 

1,746.4

 

 

 

3.8

 

 

 

1,750.2

 

Purchase price allocation adjustments

 

 

0.9

 

 

 

(1.4

)

 

 

(0.5

)

Translation and other adjustments

 

 

(19.0

)

 

 

(22.7

)

 

 

(41.7

)

Balance as of September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

3,695.1

 

 

 

3,633.3

 

 

 

7,328.4

 

Accumulated impairment losses

 

 

(0.1

)

 

 

(42.7

)

 

 

(42.8

)

 

 

$

3,695.0

 

 

$

3,590.6

 

 

$

7,285.6

 

 

The goodwill acquired in fiscal 2019 primarily related to the KapStone Acquisition in the Corrugated Packaging segment. The goodwill acquired in fiscal 2018 primarily related to the Plymouth Packaging Acquisition in the Corrugated Packaging segment and the Schlüter Acquisition in the Consumer Packaging segment. The purchase price adjustments to goodwill in fiscal 2018 primarily related to the MPS Acquisition and the Hannapak Acquisition. The goodwill acquired in fiscal 2017 related to the MPS Acquisition and the Hannapak Acquisition in the Consumer Packaging segment and the U.S. Corrugated Acquisition, the Island Container Acquisition and the Star Pizza Acquisition in the Corrugated Packaging segment. The goodwill disposed of in the Corrugated Packaging segment in fiscal 2018 related to the sale of our solid waste management brokerage services business. The goodwill disposed of in the Consumer Packaging segment in fiscal 2017 was primarily related to the HH&B Sale. See “Note 3. Acquisitions and Investment” for additional information.
v3.19.3
Inventories
 12 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Inventories

Note 8.

Inventories

Inventories are as follows (in millions):

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Finished goods and work in process

 

$

938.9

 

 

$

867.0

 

Raw materials

 

 

818.8

 

 

 

730.0

 

Supplies and spare parts

 

 

479.7

 

 

 

368.2

 

Inventories at FIFO cost

 

 

2,237.4

 

 

 

1,965.2

 

LIFO reserve

 

 

(129.9

)

 

 

(135.6

)

Net inventories

 

$

2,107.5

 

 

$

1,829.6

 

 

It is impracticable to segregate the LIFO reserve between raw materials, finished goods and work in process. In fiscal 2019 and 2018, 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. The impact of the liquidations in fiscal 2019 and 2018 was not significant. In fiscal 2017, we had no LIFO layer liquidations.
v3.19.3
Assets Held For Sale
 12 Months Ended
Sep. 30, 2019
Assets Held For Sale [Abstract]  
Assets Held for Sale

Note 9.

Assets Held For Sale

Due to the accelerated monetization strategy, our Land and Development portfolio has met the held for sale criteria and is classified as assets held for sale. Assets held for sale at September 30, 2019 of $25.8 million include $16.1 million of Land and Development portfolio assets, with the remainder primarily related to closed facilities. Assets held for sale at September 30, 2018 of $59.5 million include $33.5 million of Land and Development portfolio assets, with the remainder primarily related to closed facilities. 
v3.19.3
Property, Plant and Equipment
 12 Months Ended
Sep. 30, 2019
Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

Note 10.

Property, Plant and Equipment

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

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Property, plant and equipment at cost:

 

 

 

 

 

 

 

 

Land and buildings

 

$

2,442.3

 

 

$

2,078.9

 

Machinery and equipment

 

 

14,743.6

 

 

 

12,064.0

 

Forestlands and mineral rights

 

 

144.0

 

 

 

158.0

 

Transportation equipment

 

 

31.2

 

 

 

30.1

 

Leasehold improvements

 

 

100.2

 

 

 

88.9

 

 

 

 

17,461.3

 

 

 

14,419.9

 

Less: accumulated depreciation, depletion and amortization

 

 

(6,271.8

)

 

 

(5,337.4

)

Property, plant and equipment, net

 

$

11,189.5

 

 

$

9,082.5

 

 

Depreciation expense for fiscal 2019, 2018 and 2017 was $1,074.6 million, $923.8 million and $855.9 million, respectively.

v3.19.3
Other Intangible Assets
 12 Months Ended
Sep. 30, 2019
Other Intangible Assets [Abstract]  
Other Intangible Assets

Note 11.

Other Intangible Assets

The gross carrying amount and accumulated amortization relating to intangible assets, excluding goodwill, are as follows (in millions, except weighted avg. life):  

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

Weighted

Avg. Life

(in years)

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

Customer relationships

 

 

15.3

 

 

$

5,395.5

 

 

$

(1,452.1

)

 

$

4,123.7

 

 

$

(1,079.8

)

Trademarks and tradenames

 

 

20.0

 

 

 

129.9

 

 

 

(55.3

)

 

 

77.6

 

 

 

(43.9

)

Favorable contracts

 

 

10.1

 

 

 

57.0

 

 

 

(42.6

)

 

 

47.8

 

 

 

(34.8

)

Technology and patents

 

 

11.4

 

 

 

39.2

 

 

 

(21.2

)

 

 

41.2

 

 

 

(18.0

)

License costs

 

 

9.0

 

 

 

25.7

 

 

 

(20.5

)

 

 

24.6

 

 

 

(18.1

)

Non-compete agreements

 

 

2.0

 

 

 

3.4

 

 

 

(2.9

)

 

 

3.4

 

 

 

(1.7

)

Other

 

 

29.5

 

 

 

3.6

 

 

 

(0.2

)

 

 

—

 

 

 

—

 

Total

 

 

15.3

 

 

$

5,654.3

 

 

$

(1,594.8

)

 

$

4,318.3

 

 

$

(1,196.3

)

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

 

Fiscal 2020

 

$

404.2

 

Fiscal 2021

 

$

356.4

 

Fiscal 2022

 

$

348.9

 

Fiscal 2023

 

$

342.7

 

Fiscal 2024

 

$

322.3

 

 

Intangible amortization expense was $408.0 million, $300.8 million and $234.0 million during fiscal 2019, 2018 and 2017, respectively. We had other intangible amortization expense, primarily for packaging equipment leased to customers of $28.6 million, $27.6 million and $22.2 million during fiscal 2019, 2018 and 2017, respectively.

 
v3.19.3
Fair Value
 12 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value

Note 12.

Fair Value

Assets and Liabilities Measured or Disclosed at Fair Value

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 defines levels within the hierarchy based on the availability of quoted prices for identical items in active markets, similar items in active or inactive markets and valuation techniques using observable and unobservable 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.

We disclose the fair value of our long-term debt in “Note 13. Debt” and the fair value of our pension and postretirement assets and liabilities in “Note 5. Retirement Plans”. We have, or from time to time may have, financial instruments recognized at fair value including Supplemental Plans, interest rate derivatives, commodity derivatives or other similar classes of assets or liabilities, the fair value of which are not significant. See “Note 1 — Description of Business and Summary of Significant Accounting Policies — Fair Value of Financial Instruments and Nonfinancial Assets and Liabilities” for additional information.

Accounts Receivable Sales Agreement

On September 25, 2018 we entered into a $550.0 million agreement (the “A/R Sales Agreement”) to sell to a third party financial institution all of the short-term receivables generated from certain customer trade accounts. On September 19, 2019 we amended the A/R Sales Agreement and increased the purchase limit to $650.0 million. The A/R Sales Agreement has a one year term and may be terminated early by either party. The terms of the A/R Sales Agreement limit the balance of receivables sold to the amount available to fund such receivables sold and eliminated the receivable for proceeds from the financial institution at any transfer date. Transfers under the A/R Sales Agreement meet the requirements to be accounted for as sales in accordance with guidance in ASC 860, “Transfers and Servicing”. These customers are not included in the Receivables Securitization Facility that is discussed in “Note 13. Debt”.

In connection with the September 25, 2018 termination of the prior agreement and execution of the A/R Sales Agreement, there was a non-cash transaction of $424.8 million representing the repurchase of receivables previously sold to the financial institution under the prior agreement and the sale of the same receivables to the financial institution under the A/R Sales Agreement.

The following table represents a summary of the activity under the A/R Sales Agreement for fiscal 2019 and 2018 (in millions):

 

 

 

2019

 

 

2018

 

Receivable from financial institution at beginning of fiscal year

 

$

—

 

 

$

24.9

 

Receivables sold to the financial institution and derecognized

 

 

2,051.6

 

 

 

1,664.0

 

Receivables collected by financial institution

 

 

(1,971.1

)

 

 

(1,573.8

)

Cash proceeds from financial institution

 

 

(80.5

)

 

 

(115.1

)

Receivable from financial institution at September 30,

 

$

—

 

 

$

—

 

 

Cash proceeds related to the receivables sold are included in cash from operating activities in the consolidated statement of cash flows in the accounts receivable line item. The expense recorded in connection with the sale is currently approximately $17 million per year and is recorded in “other income, net” in the consolidated statements of income. The future amount may fluctuate based on the level of activity and other factors. Although the sales are made without recourse, we maintain continuing involvement with the sold receivables as we provide collections services related to the transferred assets. The associated servicing liability is not material given the high quality of the customers underlying the receivables and the anticipated short collection period.

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. See “Note 13. Debt” for the fair value of our long-term debt.

Fair Value of Nonfinancial Assets and Nonfinancial Liabilities

We measure certain nonfinancial assets and nonfinancial liabilities at fair value on a nonrecurring basis. These assets and liabilities include cost and equity method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a merger, an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. See “Note 4. Restructuring and Other Costs” for impairments associated with restructuring activities including the impairment of a paper machine at our Charleston, SC mill included in the Corrugated Packaging segment and other such similar items presented as “net property, plant and equipment costs”. During fiscal 2019, 2018 and 2017, we did not have any significant 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 following pre-tax non-cash impairments: (i) the $13.0 million pre-tax non-cash impairment of certain mineral rights in fiscal 2019 following the termination of a third party leasing

relationship, (ii) the $31.9 million impairment of certain mineral rights and real estate in fiscal 2018, (iii) the $46.7 million real estate impairment recorded in fiscal 2017, and (iv) a $17.6 million write-down of a customer relationship intangible in fiscal 2017 related to an exited product line. The $23.6 million impairment of mineral rights in fiscal 2018 was driven by the non-renewal of a lease and associated with declining oil and gas prices, and the other $8.3 million recorded to write-down the carrying value on real estate projects in connection with the accelerated monetization strategy in our Land and Development segment where the projected sales proceeds were less than the carrying value.
v3.19.3
Debt
 12 Months Ended
Sep. 30, 2019
Debt [Abstract]  
Debt

Note 13.

Debt

The public bonds issued by WRKCo Inc. (“WRKCo”), WestRock RKT, LLC (“RKT”) and MWV are guaranteed by WestRock and have cross-guarantees between the three companies. The industrial development bonds associated with the capital lease obligations of MWV are guaranteed by the Company or its 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. At September 30, 2019, all of our debt was unsecured with the exception of our Receivables Securitization Facility (as defined below) and capital lease obligations.

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

 

 

 

September 30, 2019

 

 

September 30, 2018

 

 

 

Carrying

Value

 

 

Weighted Avg

Interest Rate

 

 

Carrying

Value

 

 

Weighted Avg

Interest Rate

 

Public bonds due fiscal 2019 to 2022

 

$

507.8

 

 

 

4.9

%

 

$

1,470.9

 

 

 

4.2

%

Public bonds due fiscal 2023 to 2028

 

 

3,769.1

 

 

 

4.0

%

 

 

2,534.4

 

 

 

3.8

%

Public bonds due fiscal 2029 to 2033

 

 

2,197.6

 

 

 

4.9

%

 

 

964.1

 

 

 

5.2

%

Public bonds due fiscal 2037 to 2047

 

 

179.0

 

 

 

6.2

%

 

 

178.5

 

 

 

6.3

%

Term loan facilities

 

 

2,295.5

 

 

 

3.3

%

 

 

599.4

 

 

 

3.7

%

Revolving credit and swing facilities

 

 

396.0

 

 

 

2.9

%

 

 

355.0

 

 

 

3.2

%

Commercial paper

 

 

339.2

 

 

 

2.4

%

 

 

—

 

 

N/A

 

Capital lease obligations

 

 

185.8

 

 

 

4.3

%

 

 

171.0

 

 

 

4.1

%

Supplier financing and commercial card

   programs

 

 

123.2

 

 

N/A

 

 

 

105.1

 

 

N/A

 

International and other debt

 

 

70.2

 

 

 

6.6

%

 

 

36.8

 

 

 

6.1

%

Total debt

 

 

10,063.4

 

 

 

4.0

%

 

 

6,415.2

 

 

 

4.1

%

Less: current portion of debt

 

 

561.1

 

 

 

 

 

 

 

740.7

 

 

 

 

 

Long-term debt due after one year

 

$

9,502.3

 

 

 

 

 

 

$

5,674.5

 

 

 

 

 

 

A portion of the debt classified as long-term may be paid down earlier than scheduled at our discretion without penalty. Certain customary restrictive covenants govern our maximum availability under our credit facilities. We test and report our compliance with these covenants as required and were in compliance with all of our covenants at September 30, 2019. 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, 2019, excluding the step-up, the weighted average interest rate on total debt was 4.2%. At September 30, 2019, the unamortized fair market value step-up was $228.4 million, which will be amortized over a weighted average remaining life of 12.1 years. At September 30, 2019, we had $129.8 million of outstanding letters of credit not drawn upon. At September 30, 2019, we had approximately $2.9 billion of availability under our committed credit facilities. This liquidity may be used to provide for ongoing working capital needs and for other general corporate purposes including acquisitions, dividends and stock repurchases. The estimated fair value of our debt was approximately $10.6 billion and $6.4 billion as of September 30, 2019 and September 30, 2018, 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 2019, 2018 and 2017, amortization of debt issuance costs charged to interest expense were $7.8 million, $6.3 million and $4.5 million, respectively.

Public Bonds / Notes Issued

At September 30, 2019 and September 30, 2018, the face value of our public bond obligations outstanding were $6.5 billion and $4.9 billion, respectively.

On May 16, 2019, WRKCo issued $500.0 million aggregate principal amount of its 3.90% Senior Notes due 2028 (the “June 2028 Notes”) and $500.0 million aggregate principal amount of its 4.20% Senior Notes due 2032 (the “2032 Notes” and, together with the June 2028 Notes, the “May 2019 Notes”) in a registered offering pursuant to the Company’s automatic shelf registration statement on Form S-3 under the Securities Act of 1933, as amended, (the “Securities Act”).The Company, MWV and RKT (RKT and MWV are together referred to as the “Subsidiary Guarantors”) have guaranteed WRKCo’s obligations under the May 2019 Notes. We may redeem the May 2019 Notes, in whole or in part, at any time at specified redemption prices, plus accrued and unpaid interest, if any. The proceeds from the issuance of the May 2019 Notes were used primarily to repay $600.0 million principal amount of outstanding notes coming due in the next several quarters and reduce outstanding indebtedness under our 3-year delayed draw term loan.

On December 3, 2018, WRKCo issued $750.0 million aggregate principal amount of its 4.65% Senior Notes due 2026 (the “2026 Notes”) and $750.0 million aggregate principal amount of its 4.90% Senior Notes due 2029 (the “2029 Notes” and, together with the 2026 Notes, the “December 2018 Notes”) in an unregistered offering. The Company and the Subsidiary Guarantors have guaranteed WRKCo’s obligations under the December 2018 Notes. We may redeem the 2026 Notes and the 2029 Notes, in whole or in part, at any time at specified redemption prices, plus accrued and unpaid interest, if any. The proceeds from the issuance of the December 2018 Notes were used primarily to prepay a portion of the amounts outstanding under our Delayed Draw Credit Facilities (as hereinafter defined).

 

On March 6, 2018, we issued $600.0 million aggregate principal amount of 3.75% senior notes due 2025 and $600.0 million aggregate principal amount of 4.0% senior notes due 2028 (collectively, the “March 2018 Notes”) in an unregistered offering. The Company may redeem the March 2018 Notes, in whole or in part, at any time at specified redemption prices, plus accrued and unpaid interest, if any. The proceeds from the issuance of the March 2018 Notes were used primarily to pay down the remaining $540.0 million of our then existing term loan facility, pay down $445.0 million of our commercial paper program, pay down $100.0 million of our Receivables Securitization Facility and pay down $104.7 million of one of our other credit facilities.

 

On August 24, 2017, we issued $500.0 million aggregate principal amount of 3.0% Senior Notes due September 15, 2024 and $500.0 million aggregate principal amount of 3.375% Senior Notes due September 15, 2027 collectively, the “August 2017 Notes” in an unregistered offering. The proceeds from the issuance of the August 2017 Notes was used to pre-pay $575.0 million of amortization payments through the maturity of our term loan and $415.0 million then outstanding on the Receivables Securitization Facility.

 

Exchanged Notes

 

During fiscal 2019, we conducted offers to exchange WRKCo’s $500.0 million aggregate principal amount of 3.00% Senior Notes due 2024 (the “2024 Notes”), $600.0 million aggregate principal amount of 3.75% Senior Notes due 2025 (the “2025 Notes”), 2026 Notes, $500.0 million aggregate principal amount of 3.375% Senior Notes due 2027 (the “2027 Notes”), $600.0 million aggregate principal amount of 4.00% Senior Notes due 2028 (the “2028 Notes”) and 2029 Notes for new notes of the applicable series with terms substantially identical with the notes of such series that are registered under the Securities Act. As a result of the exchange offer, $490.0 million in aggregate principal amount of the 2024 Notes, $600.0 million in aggregate principal amount of the 2025 Notes, $749.3 million in aggregate principal amount of the 2026 Notes, $491.0 million in aggregate principal amount of the 2027 Notes, $590.0 million in aggregate principal amount of the 2028 Notes and $750.0 million in aggregate principal amount of the 2029 Notes were validly tendered and subsequently exchanged.

Term Loan and Revolving Credit Facility

 

On June 7, 2019, we entered into a $300.0 million credit agreement providing for a 5-year unsecured term loan with Bank of America, N.A., as administrative agent. The facility is scheduled to mature on June 7, 2024. The proceeds from the facility were used to prepay a portion of the amounts outstanding under our 3-year term loan and repay amounts outstanding under our commercial paper program. The applicable interest rate margin was initially

0.825% to 1.750% per annum for LIBOR rate loans and 0.000% to 0.750% per annum for alternate base rate loans, in each case depending on the Leverage Ratio (as defined in the credit agreement) or our corporate credit ratings, whichever yields a lower applicable interest rate margin, at such time. At September 30, 2019, there was $300.0 million outstanding.

 

In connection with the Combination, on July 1, 2015, we entered into a credit agreement (the “Credit Agreement”), which provided for a 5-year senior unsecured term loan in an aggregate principal amount of $2.3 billion and a 5-year senior unsecured revolving credit facility in an aggregate committed principal amount of $2.0 billion (together the “Credit Facility”). On July 1, 2015, we drew $1.2 billion on the term loan and on March 24, 2016, we drew another $600.0 million and the balance of the delayed draw term loan facility was terminated. The Credit Facility is unsecured and is guaranteed by the Company and the Subsidiary Guarantors. On June 22, 2016, we pre-paid $200.0 million of the term loan amortization payments due through the second quarter of fiscal 2018. On August 24, 2017, in connection with the issuance of public bonds, we pre-paid $575.0 million of the term loan amortization payments due through the maturity of the term loan. On October 31, 2017, we pre-paid $485.0 million of the outstanding principal balance by borrowing on our Receivables Securitization Facility. On March 14, 2018, in connection with the issuance of public bonds, we pre-paid the remaining $540.0 million principal balance.

In fiscal 2016 and 2017, we executed options to extend the term of the 5-year senior unsecured revolving credit facility initially for one year beyond the original term and subsequently, for a second additional year. Approximately $1.9 billion of the original $2.0 billion aggregate committed principal amount has been extended to July 1, 2022, and the remainder will continue to mature on July 1, 2020. Up to $150 million under the revolving credit facility may be used for the issuance of letters of credit. In addition, up to $400 million of the revolving credit facility may be used to fund borrowings in non-U.S. dollar currencies including Canadian dollars, Euro and British Pound. Additionally, we may request up to $200 million of the revolving credit facility to be allocated to a Mexican peso revolving credit facility. At September 30, 2019 and September 30, 2018, we had no amounts outstanding under the revolving credit facility.

At our option, loans issued under the Credit Facility will bear interest at either LIBOR or an alternate base rate, in each case plus an applicable interest rate margin. Loans will initially bear interest at LIBOR plus 1.125% per annum, in the case of LIBOR borrowings, or at the alternate base rate plus 0.125% per annum, in the alternative, and thereafter the interest rate will fluctuate between LIBOR plus 1.00% per annum and LIBOR plus 1.50% per annum (or between the alternate base rate plus 0.00% per annum and the alternate base rate plus 0.50% per annum), based upon our corporate credit ratings or the leverage ratio (as defined in the Credit Agreement) (whichever yields a lower applicable interest rate margin) at such time. In addition, we will be required to pay fees that will fluctuate between 0.125% per annum to 0.25% per annum on the unused amount of the revolving credit facility, based upon our corporate credit ratings or the leverage ratio (whichever yields a lower fee) at such time. Loans under the Credit Facility may be prepaid at any time without premium.

Farm Loan Credit Facilities

On July 1, 2015, three WestRock wholly-owned subsidiaries, WestRock CP, LLC, a Delaware limited liability company, WestRock Converting, LLC, a Georgia limited liability company, and WestRock Virginia, LLC, a Delaware limited liability company, as borrowers, entered into a credit agreement (the “Prior Farm Loan Credit Agreement”) with CoBank ACB, as administrative agent. The Prior Farm Loan Credit Agreement provided for a 7-year senior unsecured term loan in an aggregate principal amount of $600.0 million (the “Prior Farm Loan Credit Facility”). The Prior Farm Credit Facility was guaranteed by the Company and the Subsidiary Guarantors. The carrying value of this facility at September 30, 2018 was $599.4 million. On September 27, 2019, we repaid the entire balance of the Prior Farm Loan Credit Facility and entered into a new agreement.

On September 27, 2019, one of our wholly-owned subsidiaries, WestRock Southeast LLC, entered into a credit agreement (the “Farm Loan Credit Agreement”) with CoBank ACB, as administrative agent. The Farm Loan Credit Agreement provides for a 7-year senior unsecured term loan in an aggregate principal amount of $600.0 million (the “Farm Loan Credit Facility”). At any time, we may increase the principal amount by up to $300.0 million by written notice. The Farm Credit Facility is guaranteed by the Company, WRKCo and the Subsidiary Guarantors. The carrying value of this facility at September 30, 2019 was $598.6 million.

European Revolving Credit Facility

On April 27, 2018, we entered into a €500.0 million revolving credit facility with an incremental €100.0 million accordion feature with Coöperatieve Rabobank U.A., New York Branch as the administrative agent for the syndicate of banks (the “European Revolving Credit Facility”). This facility provides for a 3-year unsecured U.S. dollar, Euro and British Pound denominated borrowing of not more than €500.0 million and matures on April 27, 2021. At September 30, 2019, we had borrowed $350.0 million under this facility and entered into foreign currency exchange contracts of $351.0 million as an economic hedge for the U.S. dollar denominated borrowing plus interest by a non-U.S. dollar functional currency entity. The net of gains or losses from these foreign currency exchange contracts and the changes in the remeasurement of the U.S. dollar denominated borrowing in our foreign subsidiaries have been immaterial to our consolidated statements of income. As of September 30, 2019, $175.0 million of the total amount outstanding was classified as short-term debt. At September 30, 2018, we had borrowed $355.0 million under this facility.

Other Revolving Credit Facilities

 

On October 31, 2017, we entered into a credit agreement with Wells Fargo Bank, National Association, as administrative agent, providing for a 364-day senior unsecured revolving credit facility in an aggregate committed principal amount of $450.0 million. The proceeds of the credit facility may be used for working capital and for other general corporate purposes. The credit facility is unsecured and is guaranteed by RKT and MWV and WestRock, Inc. At our option, loans issued under the credit facility will bear interest at either LIBOR or an alternate base rate, in each case plus an applicable interest rate margin. On October 29, 2018, we renewed the term of the credit facility for another 364 days, and subsequently, on October 25, 2019, we renewed the term of the credit facility for another 364 days. The facility now matures on October 23, 2020, or earlier, as specified in the agreement. At September 30, 2019 and 2018, there were no amounts outstanding. At September 30, 2019, the average borrowing rate under the facility would have been 3.17%.

Receivables Securitization Facility

On May 2, 2019, we amended our $700.0 million receivables securitization agreement (the “Receivables Securitization Facility”) to, among other things, extend its maturity date from July 22, 2019 to May 2, 2022. 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 all of these covenants at September 30, 2019. The Receivables Securitization Facility includes certain restrictions on what constitutes eligible receivables 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. At September 30, 2019 and September 30, 2018 there were no amounts outstanding under this facility. At September 30, 2019 and September 30, 2018, maximum available borrowings, excluding amounts outstanding under the Receivables Securitization Facility, were $592.1 million and $571.0 million, respectively. The carrying amount of accounts receivable collateralizing the maximum available borrowings at September 30, 2019 and September 30, 2018 were approximately $959.3 million and $887.0 million, respectively. We have continuing involvement with the underlying receivables as we provide credit and collections services pursuant to the Receivables Securitization Facility agreement. The borrowing rate consists of a blend of the market rate for asset-backed commercial paper and the one month LIBOR rate plus a credit spread of 0.80%. The commitment fee was 0.25% and 0.25% as of September 30, 2019 and September 30, 2018, respectively.

Commercial Paper Program

On October 31, 2017, we established an unsecured commercial paper program, pursuant to which we were able to 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. On December 7, 2018, we terminated the commercial paper program and established a new unsecured commercial paper program with WRKCo as the issuer. Under the new 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 $2.0 billion unsecured revolving credit facility is intended to backstop the commercial paper program. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The net proceeds from issuances of notes under the program were used to repay amounts outstanding under the KapStone securitization facility that was assumed in the KapStone Acquisition and subsequently terminated, and have been, and are expected to continue to be, used for general corporate purposes. At September 30, 2019, there was $339.2 million outstanding and the average borrowing rate was 2.39%. As of September 30, 2019, $250.0 million of the total amount outstanding was classified as long-term debt.  

Delayed Draw Credit Facilities

On March 7, 2018, we entered into a credit agreement (the “Delayed Draw Credit Agreement”) with Wells Fargo as administrative agent to provide for $3.8 billion of senior unsecured term loans, consisting of a 364-day $300.0 million term loan, a 3-year $1.75 billion term loan and a 5-year $1.75 billion term loan (collectively, the “Delayed Draw Credit Facilities”). On November 2, 2018, in connection with the closing of the KapStone Acquisition, we drew upon the facility in full. The proceeds of the Delayed Draw Credit Facilities and other sources of cash were used to pay the consideration for the KapStone Acquisition, to repay certain existing indebtedness of KapStone and to pay fees and expenses incurred in connection with the KapStone Acquisition. The Delayed Draw Credit Facilities are senior unsecured obligations of WRKCo, as borrower, and each of the Company and the Subsidiary Guarantors, respectively, as guarantors. Loans under the Delayed Draw Credit Facilities may be prepaid at any time without premium.

On December 3, 2018, in connection with the issuance of the December 2018 Notes, we repaid the $300.0 million 364-day term loan under the Delayed Draw Credit Facilities, and prepaid $926.5 million of the 3-year term loan and $262.5 million of the 5-year term loan. In the third quarter of fiscal 2019, we prepaid $700.0 million of the 3-year term loan primarily using proceeds from the issuance of the May 2019 Notes. In the fourth quarter of fiscal 2019, we prepaid all amounts due on the 3-year term loan and $87.5 million of the 5-year term loan using proceeds from the issuance of commercial paper. At September 30, 2019, there was $1,396.9 million outstanding on the 5-year term loan.

At our option, loans issued under the Delayed Draw Credit Facilities will bear interest at a floating rate based on either LIBOR or an alternate base rate, in each case plus an applicable interest rate margin. The applicable interest rate margin was initially 1.125% to 2.000% per annum for LIBOR rate loans and 0.125% to 1.000% per annum for alternate base rate loans, in each case depending on the Leverage Ratio (as defined in the credit agreement) or our corporate credit ratings, whichever yields a lower applicable interest rate margin, at such time. On February 26, 2019, we amended the Delayed Draw Credit Agreement. The applicable interest rate margin for the 3-year term loan is now 1.000% to 1.875% for LIBOR rate loans and 0.000% to 0.875% for alternate base rate loans. The applicable interest rate margin for the 5-year term loan is now 1.000% to 1.950% for LIBOR rate loans and 0.000% to 0.950% for alternate base rate loans.

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 (the “Brazil Delayed Draw Credit Facilities”). The principal can be drawn at any time over the initial 18 months in up to 10 drawdowns of at least BRL 50.0 million each and will be repaid in equal, semiannual installments beginning on April 10, 2021 until the facility matures on April 10, 2024. The proceeds of the Brazil Delayed Draw Credit Facilities are to be used to support the production of goods or acquisition of inputs that are essential or ancillary to export activities. The Brazil Delayed Draw Credit Facilities are 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 will bear interest at a floating rate based on Brazil’s Certificate of Interbank Deposit rate plus a spread of 1.50%. In addition, we will be required to pay fees of 0.45% on the unused amount of the facility. At September 30, 2019, there was R$199.5 million outstanding.

Capital Lease and Other Indebtedness

The range of due dates on our capital lease obligations are primarily in fiscal 2027 to 2035. Our international debt is primarily in Europe, Brazil and India.

As of September 30, 2019, the aggregate maturities of debt, excluding capital lease obligations, for the succeeding five fiscal years and thereafter are as follows (in millions):

 

Fiscal 2020

 

$

550.8

 

Fiscal 2021

 

 

184.8

 

Fiscal 2022

 

 

755.0

 

Fiscal 2023

 

 

542.6

 

Fiscal 2024

 

 

1,951.7

 

Thereafter

 

 

5,729.2

 

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

   bond discounts

 

 

163.5

 

Total

 

$

9,877.6

 

 

As of September 30, 2019, the aggregate maturities of capital lease obligations for the succeeding five fiscal years and thereafter are as follows (in millions):

 

Fiscal 2020

 

$

6.4

 

Fiscal 2021

 

 

4.8

 

Fiscal 2022

 

 

3.9

 

Fiscal 2023

 

 

2.0

 

Fiscal 2024

 

 

0.9

 

Thereafter

 

 

150.9

 

Fair value step-up

 

 

16.9

 

Total

 

$

185.8

 
v3.19.3
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors
 12 Months Ended
Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors

Note 14.

Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors

 

The 2024 Notes, the 2025 Notes, the 2026 Notes, the 2027 Notes, the 2028 Notes, the June 2028 Notes, the 2029 Notes and the 2032 Notes (the “Notes”) were issued by WRKCo (the “Issuer”). Upon issuance, the 2024 Notes, the 2025 Notes, the 2027 Notes and the 2028 Notes were fully and unconditionally guaranteed by the Subsidiary Guarantors. On November 2, 2018, in connection with the consummation of the KapStone Acquisition, Whiskey Holdco, Inc. became the direct parent of the Issuer, changed its name to WestRock Company (“Parent”) and fully and unconditionally guaranteed the 2024 Notes, the 2025 Notes, the 2027 Notes and the 2028 Notes. The 2026 Notes, the June 2028 Notes, the 2029 Notes and the 2032 Notes were issued by the Issuer subsequent to the consummation of the KapStone Acquisition and were fully and unconditionally guaranteed at the time of issuance by Parent and the Subsidiary Guarantors. Accordingly, each series of the Notes is fully and unconditionally guaranteed on a joint and several basis by Parent and the Subsidiary Guarantors.

 

In accordance with GAAP, we retrospectively account for changes in our legal structure that constitute transfers of businesses between issuers, guarantors and non-guarantors. As such, our prior period financials may vary from those previously reported. The information in the tables reflect such revisions, as well as revisions to correct immaterial errors in the prior presentation of our financial statements.

 

In accordance with Rule 3-10 of Regulation S-X, the following tables present condensed consolidating financial data of the Parent, the Issuer, the Subsidiary Guarantors, the non-guarantor subsidiaries and eliminations. Such financial data include Condensed Consolidating Balance Sheet data as of September 30, 2019 and 2018 and the related Condensed Consolidating Statement of Income and Cash Flow data for each of the three years in the period ended September 30, 2019. 

 

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

Net sales

 

$

—

 

 

$

—

 

 

$

2,543.8

 

 

$

18,364.4

 

 

$

(2,619.2

)

 

$

18,289.0

 

Cost of goods sold

 

 

—

 

 

 

—

 

 

 

2,026.0

 

 

 

15,114.2

 

 

 

(2,600.2

)

 

 

14,540.0

 

Selling, general and administrative,

   excluding intangible amortization

 

 

—

 

 

 

(0.9

)

 

 

120.0

 

 

 

1,596.1

 

 

 

—

 

 

 

1,715.2

 

Selling, general and administrative

   intangible amortization

 

 

—

 

 

 

—

 

 

 

104.4

 

 

 

295.8

 

 

 

—

 

 

 

400.2

 

Loss (gain) on disposal of assets

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

(41.3

)

 

 

—

 

 

 

(41.2

)

Multiemployer pension withdrawal

  income

 

 

—

 

 

 

(0.2

)

 

 

(0.3

)

 

 

(5.8

)

 

 

—

 

 

 

(6.3

)

Land and Development impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13.0

 

 

 

—

 

 

 

13.0

 

Restructuring and other costs

 

 

—

 

 

 

7.6

 

 

 

0.3

 

 

 

165.8

 

 

 

—

 

 

 

173.7

 

Operating profit (loss)

 

 

—

 

 

 

(6.5

)

 

 

293.3

 

 

 

1,226.6

 

 

 

(19.0

)

 

 

1,494.4

 

Interest expense, net

 

 

—

 

 

 

(246.8

)

 

 

(163.4

)

 

 

(21.1

)

 

 

—

 

 

 

(431.3

)

Intercompany interest (expense)

  income, net

 

 

—

 

 

 

(3.2

)

 

 

(115.3

)

 

 

99.5

 

 

 

19.0

 

 

 

—

 

Loss on extinguishment of debt

 

 

—

 

 

 

(3.0

)

 

 

(1.9

)

 

 

(0.2

)

 

 

—

 

 

 

(5.1

)

Pension and other postretirement

  non-service (expense) income

 

 

—

 

 

 

—

 

 

 

(6.5

)

 

 

80.7

 

 

 

—

 

 

 

74.2

 

Other (expense) income, net

 

 

—

 

 

 

(5.1

)

 

 

3.4

 

 

 

4.1

 

 

 

—

 

 

 

2.4

 

Equity in income of unconsolidated

  entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10.1

 

 

 

—

 

 

 

10.1

 

Equity in income of consolidated

  entities

 

 

862.9

 

 

 

1,149.9

 

 

 

729.2

 

 

 

—

 

 

 

(2,742.0

)

 

 

—

 

Income before income taxes

 

 

862.9

 

 

 

885.3

 

 

 

738.8

 

 

 

1,399.7

 

 

 

(2,742.0

)

 

 

1,144.7

 

Income tax benefit (expense)

 

 

—

 

 

 

67.9

 

 

 

7.2

 

 

 

(351.9

)

 

 

—

 

 

 

(276.8

)

Consolidated net income

 

 

862.9

 

 

 

953.2

 

 

 

746.0

 

 

 

1,047.8

 

 

 

(2,742.0

)

 

 

867.9

 

Less: Net income attributable to

   noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5.0

)

 

 

—

 

 

 

(5.0

)

Net income attributable to common

   stockholders

 

$

862.9

 

 

$

953.2

 

 

$

746.0

 

 

$

1,042.8

 

 

$

(2,742.0

)

 

$

862.9

 

Comprehensive income attributable

   to common stockholders

 

$

489.0

 

 

$

577.7

 

 

$

377.3

 

 

$

682.4

 

 

$

(1,637.4

)

 

$

489.0

 

 

 

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2018

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

Net sales

 

$

—

 

 

$

—

 

 

$

2,593.0

 

 

$

16,345.4

 

 

$

(2,653.3

)

 

$

16,285.1

 

Cost of goods sold

 

 

—

 

 

 

—

 

 

 

2,004.2

 

 

 

13,572.2

 

 

 

(2,653.3

)

 

 

12,923.1

 

Selling, general and administrative,

  excluding intangible amortization

 

 

—

 

 

 

1.5

 

 

 

94.1

 

 

 

1,451.0

 

 

 

—

 

 

 

1,546.6

 

Selling, general and administrative

  intangible amortization

 

 

—

 

 

 

—

 

 

 

104.2

 

 

 

192.4

 

 

 

—

 

 

 

296.6

 

Loss on disposal of assets

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

9.9

 

 

 

—

 

 

 

10.1

 

Multiemployer pension withdrawals

 

 

—

 

 

 

6.5

 

 

 

12.5

 

 

 

165.2

 

 

 

—

 

 

 

184.2

 

Land and Development impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31.9

 

 

 

—

 

 

 

31.9

 

Restructuring and other costs

 

 

—

 

 

 

8.7

 

 

 

5.6

 

 

 

91.1

 

 

 

—

 

 

 

105.4

 

Operating profit (loss)

 

 

—

 

 

 

(16.7

)

 

 

372.2

 

 

 

831.7

 

 

 

—

 

 

 

1,187.2

 

Interest expense, net

 

 

(12.5

)

 

 

(76.9

)

 

 

(173.5

)

 

 

(30.9

)

 

 

—

 

 

 

(293.8

)

Intercompany interest income

  (expense), net

 

 

—

 

 

 

28.1

 

 

 

(87.6

)

 

 

59.5

 

 

 

—

 

 

 

—

 

(Loss) gain on extinguishment of

  debt

 

 

(0.2

)

 

 

(1.4

)

 

 

1.9

 

 

 

(0.4

)

 

 

—

 

 

 

(0.1

)

Pension and other postretirement

  non-service (expense) income

 

 

—

 

 

 

—

 

 

 

(6.9

)

 

 

102.2

 

 

 

—

 

 

 

95.3

 

Other income (expense), net

 

 

—

 

 

 

0.7

 

 

 

(22.5

)

 

 

34.5

 

 

 

—

 

 

 

12.7

 

Equity in income of unconsolidated

  entities

 

 

—

 

 

 

—

 

 

 

7.5

 

 

 

26.0

 

 

 

—

 

 

 

33.5

 

Equity in income of consolidated

  entities

 

 

—

 

 

 

1,962.0

 

 

 

1,343.8

 

 

 

—

 

 

 

(3,305.8

)

 

 

—

 

Income (loss) before income taxes

 

 

(12.7

)

 

 

1,895.8

 

 

 

1,434.9

 

 

 

1,022.6

 

 

 

(3,305.8

)

 

 

1,034.8

 

Income tax benefit

 

 

3.1

 

 

 

19.9

 

 

 

131.8

 

 

 

719.7

 

 

 

—

 

 

 

874.5

 

Consolidated net income (loss)

 

 

(9.6

)

 

 

1,915.7

 

 

 

1,566.7

 

 

 

1,742.3

 

 

 

(3,305.8

)

 

 

1,909.3

 

Less: Net income attributable to

  noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3.2

)

 

 

—

 

 

 

(3.2

)

Net income (loss) attributable to

  common stockholders

 

$

(9.6

)

 

$

1,915.7

 

 

$

1,566.7

 

 

$

1,739.1

 

 

$

(3,305.8

)

 

$

1,906.1

 

Comprehensive income (loss)

  attributable to common

  stockholders

 

$

(9.6

)

 

$

1,677.7

 

 

$

1,351.4

 

 

$

1,498.6

 

 

$

(2,850.0

)

 

$

1,668.1

 

 

 

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2017

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

Net sales

 

$

—

 

 

$

—

 

 

$

2,485.6

 

 

$

15,208.5

 

 

$

(2,834.4

)

 

$

14,859.7

 

Cost of goods sold

 

 

—

 

 

 

—

 

 

 

2,289.0

 

 

 

12,686.9

 

 

 

(2,834.4

)

 

 

12,141.5

 

Selling, general and administrative,

  excluding intangible amortization

 

 

—

 

 

 

0.8

 

 

 

123.9

 

 

 

1,332.5

 

 

 

—

 

 

 

1,457.2

 

Selling, general and administrative

  intangible amortization

 

 

—

 

 

 

—

 

 

 

104.2

 

 

 

125.4

 

 

 

—

 

 

 

229.6

 

Loss on disposal of assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.8

 

 

 

—

 

 

 

4.8

 

Land and Development impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

46.7

 

 

 

—

 

 

 

46.7

 

Restructuring and other costs

 

 

—

 

 

 

1.3

 

 

 

26.0

 

 

 

169.4

 

 

 

—

 

 

 

196.7

 

Operating profit (loss)

 

 

—

 

 

 

(2.1

)

 

 

(57.5

)

 

 

842.8

 

 

 

—

 

 

 

783.2

 

Interest expense, net

 

 

—

 

 

 

(40.1

)

 

 

(172.5

)

 

 

(9.9

)

 

 

—

 

 

 

(222.5

)

Intercompany interest income

  (expense), net

 

 

—

 

 

 

18.5

 

 

 

(53.1

)

 

 

34.6

 

 

 

—

 

 

 

—

 

(Loss) gain on extinguishment of debt

 

 

—

 

 

 

(0.9

)

 

 

3.1

 

 

 

(0.4

)

 

 

—

 

 

 

1.8

 

Pension and other postretirement

  non-service income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

51.8

 

 

 

—

 

 

 

51.8

 

Other (expense) income, net

 

 

—

 

 

 

(1.0

)

 

 

(30.2

)

 

 

42.7

 

 

 

—

 

 

 

11.5

 

Equity in income of unconsolidated

  entities

 

 

—

 

 

 

—

 

 

 

12.7

 

 

 

26.3

 

 

 

—

 

 

 

39.0

 

Equity in income of consolidated

  entities

 

 

—

 

 

 

724.2

 

 

 

643.7

 

 

 

—

 

 

 

(1,367.9

)

 

 

—

 

Gain on sale of HH&B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

192.8

 

 

 

—

 

 

 

192.8

 

Income before income taxes

 

 

—

 

 

 

698.6

 

 

 

346.2

 

 

 

1,180.7

 

 

 

(1,367.9

)

 

 

857.6

 

Income tax benefit (expense)

 

 

—

 

 

 

9.6

 

 

 

120.5

 

 

 

(289.1

)

 

 

—

 

 

 

(159.0

)

Consolidated net income

 

 

—

 

 

 

708.2

 

 

 

466.7

 

 

 

891.6

 

 

 

(1,367.9

)

 

 

698.6

 

Net loss attributable to noncontrolling

  interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9.6

 

 

 

—

 

 

 

9.6

 

Net income attributable to common

  stockholders

 

$

—

 

 

$

708.2

 

 

$

466.7

 

 

$

901.2

 

 

$

(1,367.9

)

 

$

708.2

 

Comprehensive income attributable

  to common stockholders

 

$

—

 

 

$

877.3

 

 

$

609.0

 

 

$

1,071.8

 

 

$

(1,680.8

)

 

$

877.3

 

 

 

CONDENSED CONSOLIDATING BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

 

$

—

 

 

$

17.8

 

 

$

133.8

 

 

$

—

 

 

$

151.6

 

Accounts receivable

 

 

—

 

 

 

—

 

 

 

31.1

 

 

 

2,201.7

 

 

 

(39.6

)

 

 

2,193.2

 

Inventories

 

 

—

 

 

 

—

 

 

 

254.3

 

 

 

1,853.2

 

 

 

—

 

 

 

2,107.5

 

Other current assets

 

 

—

 

 

 

1.2

 

 

 

11.8

 

 

 

483.2

 

 

 

—

 

 

 

496.2

 

Intercompany receivables

 

 

—

 

 

 

238.2

 

 

 

—

 

 

 

1,340.5

 

 

 

(1,578.7

)

 

 

—

 

Assets held for sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25.8

 

 

 

—

 

 

 

25.8

 

Total current assets

 

 

—

 

 

 

239.4

 

 

 

315.0

 

 

 

6,038.2

 

 

 

(1,618.3

)

 

 

4,974.3

 

Property, plant and equipment, net

 

 

—

 

 

 

—

 

 

 

18.9

 

 

 

11,170.6

 

 

 

—

 

 

 

11,189.5

 

Goodwill

 

 

—

 

 

 

—

 

 

 

1,158.6

 

 

 

6,127.0

 

 

 

—

 

 

 

7,285.6

 

Intangibles, net

 

 

—

 

 

 

—

 

 

 

1,485.0

 

 

 

2,574.5

 

 

 

—

 

 

 

4,059.5

 

Restricted assets held by special purpose

   entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,274.3

 

 

 

—

 

 

 

1,274.3

 

Prepaid pension asset

 

 

—

 

 

 

—

 

 

 

—

 

 

 

224.7

 

 

 

—

 

 

 

224.7

 

Intercompany notes receivable

 

 

—

 

 

 

155.0

 

 

 

156.9

 

 

 

3,026.8

 

 

 

(3,338.7

)

 

 

—

 

Investments in consolidated subsidiaries

 

 

11,973.7

 

 

 

18,460.4

 

 

 

20,039.9

 

 

 

—

 

 

 

(50,474.0

)

 

 

—

 

Other assets

 

 

—

 

 

 

67.8

 

 

 

185.3

 

 

 

971.8

 

 

 

(76.1

)

 

 

1,148.8

 

Total Assets

 

$

11,973.7

 

 

$

18,922.6

 

 

$

23,359.6

 

 

$

31,407.9

 

 

$

(55,507.1

)

 

$

30,156.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of debt

 

$

—

 

 

$

135.3

 

 

$

108.9

 

 

$

316.9

 

 

$

—

 

 

$

561.1

 

Accounts payable

 

 

—

 

 

 

0.7

 

 

 

31.3

 

 

 

1,839.4

 

 

 

(39.6

)

 

 

1,831.8

 

Accrued compensation and benefits

 

 

0.2

 

 

 

—

 

 

 

14.6

 

 

 

455.6

 

 

 

—

 

 

 

470.4

 

Other current liabilities

 

 

—

 

 

 

18.6

 

 

 

83.8

 

 

 

469.4

 

 

 

—

 

 

 

571.8

 

Intercompany payables

 

 

303.6

 

 

 

10.5

 

 

 

1,052.9

 

 

 

211.7

 

 

 

(1,578.7

)

 

 

—

 

Total current liabilities

 

 

303.8

 

 

 

165.1

 

 

 

1,291.5

 

 

 

3,293.0

 

 

 

(1,618.3

)

 

 

3,435.1

 

Long-term debt due after one year

 

 

—

 

 

 

6,608.0

 

 

 

1,982.9

 

 

 

911.4

 

 

 

—

 

 

 

9,502.3

 

Intercompany notes payable

 

 

—

 

 

 

636.3

 

 

 

2,390.5

 

 

 

311.9

 

 

 

(3,338.7

)

 

 

—

 

Pension liabilities, net of current portion

 

 

—

 

 

 

—

 

 

 

147.6

 

 

 

146.4

 

 

 

—

 

 

 

294.0

 

Postretirement benefit liabilities, net of

   current portion

 

 

—

 

 

 

—

 

 

 

25.7

 

 

 

136.4

 

 

 

—

 

 

 

162.1

 

Non-recourse liabilities held by special

   purpose entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,145.2

 

 

 

—

 

 

 

1,145.2

 

Deferred income taxes

 

 

—

 

 

 

—

 

 

 

278.9

 

 

 

2,675.2

 

 

 

(76.1

)

 

 

2,878.0

 

Other long-term liabilities

 

 

—

 

 

 

12.9

 

 

 

131.2

 

 

 

909.8

 

 

 

—

 

 

 

1,053.9

 

Redeemable noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.9

 

 

 

—

 

 

 

1.9

 

Total stockholders’ equity

 

 

11,669.9

 

 

 

11,500.3

 

 

 

17,111.3

 

 

 

21,862.4

 

 

 

(50,474.0

)

 

 

11,669.9

 

Noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14.3

 

 

 

—

 

 

 

14.3

 

Total equity

 

 

11,669.9

 

 

 

11,500.3

 

 

 

17,111.3

 

 

 

21,876.7

 

 

 

(50,474.0

)

 

 

11,684.2

 

Total Liabilities and Equity

 

$

11,973.7

 

 

$

18,922.6

 

 

$

23,359.6

 

 

$

31,407.9

 

 

$

(55,507.1

)

 

$

30,156.7

 

 

 

CONDENSED CONSOLIDATING BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

 

$

0.2

 

 

$

490.8

 

 

$

145.8

 

 

$

—

 

 

$

636.8

 

Accounts receivable, net

 

 

—

 

 

 

0.1

 

 

 

196.5

 

 

 

1,840.2

 

 

 

(26.1

)

 

 

2,010.7

 

Inventories

 

 

—

 

 

 

—

 

 

 

233.4

 

 

 

1,596.2

 

 

 

—

 

 

 

1,829.6

 

Other current assets

 

 

—

 

 

 

0.4

 

 

 

17.2

 

 

 

230.9

 

 

 

—

 

 

 

248.5

 

Intercompany receivables

 

 

—

 

 

 

27.7

 

 

 

269.8

 

 

 

792.8

 

 

 

(1,090.3

)

 

 

—

 

Assets held for sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

59.5

 

 

 

—

 

 

 

59.5

 

Total current assets

 

 

—

 

 

 

28.4

 

 

 

1,207.7

 

 

 

4,665.4

 

 

 

(1,116.4

)

 

 

4,785.1

 

Property, plant and equipment,

  net

 

 

—

 

 

 

—

 

 

 

21.3

 

 

 

9,061.2

 

 

 

—

 

 

 

9,082.5

 

Goodwill

 

 

—

 

 

 

—

 

 

 

1,151.3

 

 

 

4,426.3

 

 

 

—

 

 

 

5,577.6

 

Intangibles, net

 

 

—

 

 

 

—

 

 

 

1,589.4

 

 

 

1,532.6

 

 

 

—

 

 

 

3,122.0

 

Restricted assets held by

  special purpose entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,281.0

 

 

 

—

 

 

 

1,281.0

 

Prepaid pension asset

 

 

—

 

 

 

—

 

 

 

—

 

 

 

420.0

 

 

 

—

 

 

 

420.0

 

Intercompany notes receivable

 

 

—

 

 

 

884.2

 

 

 

33.1

 

 

 

2,865.4

 

 

 

(3,782.7

)

 

 

—

 

Investments in consolidated

  subsidiaries

 

 

—

 

 

 

13,260.3

 

 

 

15,066.3

 

 

 

—

 

 

 

(28,326.6

)

 

 

—

 

Other assets

 

 

3.4

 

 

 

12.4

 

 

 

172.8

 

 

 

910.8

 

 

 

(7.1

)

 

 

1,092.3

 

Total Assets

 

$

3.4

 

 

$

14,185.3

 

 

$

19,241.9

 

 

$

25,162.7

 

 

$

(33,232.8

)

 

$

25,360.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of debt

 

$

—

 

 

$

—

 

 

$

609.5

 

 

$

131.2

 

 

$

—

 

 

$

740.7

 

Accounts payable

 

 

—

 

 

 

0.8

 

 

 

40.3

 

 

 

1,701.8

 

 

 

(26.1

)

 

 

1,716.8

 

Accrued compensation and

  benefits

 

 

—

 

 

 

0.2

 

 

 

10.7

 

 

 

388.4

 

 

 

—

 

 

 

399.3

 

Other current liabilities

 

 

—

 

 

 

3.2

 

 

 

77.7

 

 

 

395.6

 

 

 

—

 

 

 

476.5

 

Intercompany payables

 

 

13.0

 

 

 

506.6

 

 

 

570.4

 

 

 

0.3

 

 

 

(1,090.3

)

 

 

—

 

Total current liabilities

 

 

13.0

 

 

 

510.8

 

 

 

1,308.6

 

 

 

2,617.3

 

 

 

(1,116.4

)

 

 

3,333.3

 

Long-term debt due after one

  year

 

 

—

 

 

 

2,179.4

 

 

 

2,460.1

 

 

 

1,035.0

 

 

 

—

 

 

 

5,674.5

 

Intercompany notes payable

 

 

—

 

 

 

—

 

 

 

2,865.4

 

 

 

917.3

 

 

 

(3,782.7

)

 

 

—

 

Pension liabilities, net of

  current portion

 

 

—

 

 

 

—

 

 

 

135.9

 

 

 

125.4

 

 

 

—

 

 

 

261.3

 

Postretirement benefit liabilities,

  net of current portion

 

 

—

 

 

 

—

 

 

 

28.1

 

 

 

106.7

 

 

 

—

 

 

 

134.8

 

Non-recourse liabilities held by

  special purpose entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,153.7

 

 

 

—

 

 

 

1,153.7

 

Deferred income taxes

 

 

—

 

 

 

—

 

 

 

291.0

 

 

 

2,037.6

 

 

 

(7.1

)

 

 

2,321.5

 

Other long-term liabilities

 

 

—

 

 

 

16.1

 

 

 

106.2

 

 

 

872.5

 

 

 

—

 

 

 

994.8

 

Redeemable noncontrolling

  interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.2

 

 

 

—

 

 

 

4.2

 

Total stockholders’ equity

 

 

(9.6

)

 

 

11,479.0

 

 

 

12,046.6

 

 

 

16,280.0

 

 

 

(28,326.6

)

 

 

11,469.4

 

Noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13.0

 

 

 

—

 

 

 

13.0

 

Total equity

 

 

(9.6

)

 

 

11,479.0

 

 

 

12,046.6

 

 

 

16,293.0

 

 

 

(28,326.6

)

 

 

11,482.4

 

Total Liabilities and Equity

 

$

3.4

 

 

$

14,185.3

 

 

$

19,241.9

 

 

$

25,162.7

 

 

$

(33,232.8

)

 

$

25,360.5

 

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for)

   operating activities

 

$

538.2

 

 

$

(203.8

)

 

$

442.1

 

 

$

1,533.7

 

 

$

—

 

 

$

2,310.2

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,369.1

)

 

 

—

 

 

 

(1,369.1

)

Cash paid related to business

   combinations, net of cash

   acquired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,374.2

)

 

 

—

 

 

 

(3,374.2

)

Investment in unconsolidated

   entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11.2

)

 

 

—

 

 

 

(11.2

)

Proceeds from sale of property,

   plant and equipment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

119.1

 

 

 

—

 

 

 

119.1

 

Proceeds from property, plant and

   equipment insurance settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25.5

 

 

 

—

 

 

 

25.5

 

Intercompany notes issued

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

(75.7

)

 

 

75.8

 

 

 

—

 

Intercompany notes proceeds

 

 

—

 

 

 

9.3

 

 

 

6.7

 

 

 

3,870.1

 

 

 

(3,886.1

)

 

 

—

 

Intercompany capital investment

 

 

(563.0

)

 

 

(563.0

)

 

 

—

 

 

 

—

 

 

 

1,126.0

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

30.2

 

 

 

0.1

 

 

 

—

 

 

 

30.3

 

Net cash (used for) provided by

    investing activities

 

 

(563.0

)

 

 

(553.7

)

 

 

36.8

 

 

 

(815.4

)

 

 

(2,684.3

)

 

 

(4,579.6

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of notes

 

 

—

 

 

 

2,498.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,498.2

 

Additions (repayments) to revolving

   credit facilities

 

 

—

 

 

 

46.0

 

 

 

—

 

 

 

(8.8

)

 

 

—

 

 

 

37.2

 

Additions to debt

 

 

—

 

 

 

4,101.8

 

 

 

—

 

 

 

959.8

 

 

 

—

 

 

 

5,061.6

 

Repayments of debt

 

 

—

 

 

 

(2,400.0

)

 

 

(957.5

)

 

 

(2,274.1

)

 

 

—

 

 

 

(5,631.6

)

Changes in commercial paper, net

 

 

—

 

 

 

339.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

339.2

 

Other financing additions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10.0

 

 

 

—

 

 

 

10.0

 

Issuances of common stock, net of

   related minimum tax withholdings

 

 

18.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18.3

 

Purchases of common stock

 

 

(88.6

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(88.6

)

Cash dividends paid to

   stockholders

 

 

(467.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(467.9

)

Cash distributions paid to

   noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4.3

)

 

 

—

 

 

 

(4.3

)

Intercompany notes borrowing

 

 

—

 

 

 

—

 

 

 

75.7

 

 

 

0.1

 

 

 

(75.8

)

 

 

—

 

Intercompany notes payments

 

 

—

 

 

 

(3,800.0

)

 

 

(70.1

)

 

 

(16.0

)

 

 

3,886.1

 

 

 

—

 

Intercompany capital receipt

 

 

563.0

 

 

 

—

 

 

 

—

 

 

 

563.0

 

 

 

(1,126.0

)

 

 

—

 

Other

 

 

—

 

 

 

(27.9

)

 

 

—

 

 

 

36.0

 

 

 

—

 

 

 

8.1

 

Net cash provided by (used for)

    financing activities

 

 

24.8

 

 

 

757.3

 

 

 

(951.9

)

 

 

(734.3

)

 

 

2,684.3

 

 

 

1,780.2

 

Effect of exchange rate changes on cash,

   cash equivalents and restricted cash

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.0

 

 

 

—

 

 

 

4.0

 

Decrease in cash, cash equivalents

   and restricted cash

 

 

—

 

 

 

(0.2

)

 

 

(473.0

)

 

 

(12.0

)

 

 

—

 

 

 

(485.2

)

Cash, cash equivalents and restricted

   cash at beginning of period

 

 

—

 

 

 

0.2

 

 

 

490.8

 

 

 

145.8

 

 

 

—

 

 

 

636.8

 

Cash, cash equivalents and restricted

   cash at end of period

 

$

—

 

 

$

—

 

 

$

17.8

 

 

$

133.8

 

 

$

—

 

 

$

151.6

 

 

 

The condensed consolidating statements of cash flows for the year ended September 30, 2019 do not include non-cash transactions between Parent, Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries. From time to time, we may enter into non-cash transactions for simplicity of execution of intercompany transactions. These may include intercompany non-cash capitalizations, intercompany non-cash returns of capital, intercompany debt-to-equity conversions or other transactions of a similar nature. The table below summarizes these non-cash transactions.

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany receivables

 

$

(140.9

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

140.9

 

 

$

—

 

Intercompany payables

 

$

—

 

 

$

—

 

 

$

—

 

 

$

140.9

 

 

$

(140.9

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes issued

 

$

—

 

 

$

(3,800.0

)

 

$

(4,667.2

)

 

$

(10,777.8

)

 

$

19,245.0

 

 

$

—

 

Intercompany notes proceeds

 

$

—

 

 

$

4,519.8

 

 

$

4,536.8

 

 

$

6,822.0

 

 

$

(15,878.6

)

 

$

—

 

Intercompany capital investment

 

$

(10,396.2

)

 

$

(5,895.5

)

 

$

(6,889.3

)

 

$

—

 

 

$

23,181.0

 

 

$

—

 

Intercompany return of capital

 

$

606.7

 

 

$

1,479.6

 

 

$

1,032.7

 

 

$

—

 

 

$

(3,119.0

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes borrowing

 

$

—

 

 

$

4,436.3

 

 

$

2,541.5

 

 

$

12,267.2

 

 

$

(19,245.0

)

 

$

—

 

Intercompany notes payments

 

$

—

 

 

$

—

 

 

$

(3,022.0

)

 

$

(12,856.6

)

 

$

15,878.6

 

 

$

—

 

Intercompany capital receipt

 

$

—

 

 

$

10,396.2

 

 

$

5,413.7

 

 

$

7,371.1

 

 

$

(23,181.0

)

 

$

—

 

Intercompany capital distribution

 

$

(563.0

)

 

$

(606.7

)

 

$

(457.5

)

 

$

(1,491.8

)

 

$

3,119.0

 

 

$

—

 

Intercompany dividends paid

 

$

—

 

 

$

—

 

 

$

(302.2

)

 

$

(1,435.0

)

 

$

1,737.2

 

 

$

—

 

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2018

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating

  activities

 

$

4.1

 

 

$

563.4

 

 

$

375.8

 

 

$

1,016.3

 

 

$

(28.4

)

 

$

1,931.2

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

 

—

 

 

 

(1.2

)

 

 

(998.7

)

 

 

—

 

 

 

(999.9

)

Cash paid for purchase of

  businesses, net of cash

  acquired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(239.9

)

 

 

—

 

 

 

(239.9

)

Cash receipts on sold trade

  receivables

 

 

—

 

 

 

—

 

 

 

—

 

 

 

461.6

 

 

 

—

 

 

 

461.6

 

Investment in unconsolidated entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(114.3

)

 

 

—

 

 

 

(114.3

)

Proceeds from sale of property, plant

  and equipment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23.3

 

 

 

—

 

 

 

23.3

 

Proceeds from property, plant and

  equipment insurance settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7.9

 

 

 

—

 

 

 

7.9

 

Intercompany notes issued

 

 

—

 

 

 

—

 

 

 

(1.4

)

 

 

—

 

 

 

1.4

 

 

 

—

 

Intercompany notes proceeds

 

 

—

 

 

 

—

 

 

 

4.5

 

 

 

—

 

 

 

(4.5

)

 

 

—

 

Intercompany capital investment

 

 

—

 

 

 

(2.0

)

 

 

—

 

 

 

—

 

 

 

2.0

 

 

 

—

 

Intercompany return of capital

 

 

—

 

 

 

—

 

 

 

82.6

 

 

 

—

 

 

 

(82.6

)

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

18.6

 

 

 

27.6

 

 

 

—

 

 

 

46.2

 

Net cash (used for) provided by

   investing activities

 

 

—

 

 

 

(2.0

)

 

 

103.1

 

 

 

(832.5

)

 

 

(83.7

)

 

 

(815.1

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of notes

 

 

—

 

 

 

1,197.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,197.3

 

Repayments to revolving credit

   facilities

 

 

—

 

 

 

(106.7

)

 

 

—

 

 

 

(8.8

)

 

 

—

 

 

 

(115.5

)

Additions to debt

 

 

—

 

 

 

2.7

 

 

 

—

 

 

 

852.5

 

 

 

—

 

 

 

855.2

 

Repayments of debt

 

 

(0.1

)

 

 

(1,025.2

)

 

 

(22.5

)

 

 

(985.1

)

 

 

—

 

 

 

(2,032.9

)

Other financing repayments

 

 

—

 

 

 

—

 

 

 

(8.9

)

 

 

(15.3

)

 

 

—

 

 

 

(24.2

)

Issuances of common stock, net of

  related minimum tax withholdings

 

 

—

 

 

 

26.6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26.6

 

Purchases of common stock

 

 

—

 

 

 

(195.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(195.1

)

Cash dividends paid to stockholders

 

 

—

 

 

 

(440.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(440.9

)

Cash distributions paid to

  noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(33.3

)

 

 

—

 

 

 

(33.3

)

Intercompany notes borrowing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.4

 

 

 

(1.4

)

 

 

—

 

Intercompany notes payments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4.5

)

 

 

4.5

 

 

 

—

 

Intercompany capital receipt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.0

 

 

 

(2.0

)

 

 

—

 

Intercompany capital distribution

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(82.6

)

 

 

82.6

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(28.4

)

 

 

28.4

 

 

 

—

 

Other

 

 

(4.0

)

 

 

(19.9

)

 

 

—

 

 

 

31.6

 

 

 

—

 

 

 

7.7

 

Net cash used for financing

  activities

 

 

(4.1

)

 

 

(561.2

)

 

 

(31.4

)

 

 

(270.5

)

 

 

112.1

 

 

 

(755.1

)

Effect of exchange rate changes on cash,

  cash equivalents and restricted cash

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(28.2

)

 

 

—

 

 

 

(28.2

)

Increase (decrease) in cash, cash

  equivalents and restricted cash

 

 

—

 

 

 

0.2

 

 

 

447.5

 

 

 

(114.9

)

 

 

—

 

 

 

332.8

 

Cash, cash equivalents and restricted

  cash at beginning of period

 

 

—

 

 

 

—

 

 

 

43.3

 

 

 

260.7

 

 

 

—

 

 

 

304.0

 

Cash, cash equivalents and restricted

  cash at end of period

 

$

—

 

 

$

0.2

 

 

$

490.8

 

 

$

145.8

 

 

$

—

 

 

$

636.8

 

 

The condensed consolidating statements of cash flows for the year ended September 30, 2018 do not include non-cash transactions between Parent, Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries. From time to time, we may enter into non-cash transactions for simplicity of execution of intercompany transactions. These may include intercompany non-cash capitalizations, intercompany non-cash returns of capital, intercompany debt-to-equity conversions or other transactions of a similar nature. The table below summarizes these non-cash transactions.

 

 

 

Year Ended September 30, 2018

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes issued

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(392.1

)

 

$

392.1

 

 

$

—

 

Intercompany notes proceeds

 

$

—

 

 

$

—

 

 

$

—

 

 

$

83.0

 

 

$

(83.0

)

 

$

—

 

Intercompany capital investment

 

$

—

 

 

$

(755.3

)

 

$

(335.3

)

 

$

—

 

 

$

1,090.6

 

 

$

—

 

Intercompany return of capital

 

$

—

 

 

$

1,356.3

 

 

$

766.0

 

 

$

—

 

 

$

(2,122.3

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes borrowing

 

$

—

 

 

$

—

 

 

$

392.1

 

 

$

—

 

 

$

(392.1

)

 

$

—

 

Intercompany notes payments

 

$

—

 

 

$

(69.0

)

 

$

(14.0

)

 

$

—

 

 

$

83.0

 

 

$

—

 

Intercompany capital receipt

 

$

—

 

 

$

—

 

 

$

736.9

 

 

$

353.7

 

 

$

(1,090.6

)

 

$

—

 

Intercompany capital distribution

 

$

—

 

 

$

—

 

 

$

(1,356.3

)

 

$

(766.0

)

 

$

2,122.3

 

 

$

—

 

Intercompany dividends paid

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(285.9

)

 

$

285.9

 

 

$

—

 

 


 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2017

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

—

 

 

$

928.6

 

 

$

344.2

 

 

$

192.4

 

 

$

(1.4

)

 

$

1,463.8

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

 

—

 

 

 

(1.4

)

 

 

(777.2

)

 

 

—

 

 

 

(778.6

)

Cash paid for purchase of businesses, net of

  cash acquired

 

 

—

 

 

 

(61.0

)

 

 

(118.1

)

 

 

(1,409.4

)

 

 

—

 

 

 

(1,588.5

)

Cash receipts on sold trade receivables

 

 

—

 

 

 

—

 

 

 

—

 

 

 

411.2

 

 

 

—

 

 

 

411.2

 

Investment in unconsolidated entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.5

)

 

 

—

 

 

 

(2.5

)

Proceeds from sale of HH&B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,005.9

 

 

 

—

 

 

 

1,005.9

 

Proceeds from sale of property, plant and

  equipment

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

52.4

 

 

 

—

 

 

 

52.6

 

Proceeds from property, plant and

  equipment insurance settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.5

 

 

 

—

 

 

 

3.5

 

Intercompany notes issued

 

 

—

 

 

 

(734.1

)

 

 

—

 

 

 

(523.3

)

 

 

1,257.4

 

 

 

—

 

Intercompany notes proceeds

 

 

—

 

 

 

5.0

 

 

 

2.4

 

 

 

523.3

 

 

 

(530.7

)

 

 

—

 

Intercompany capital investment

 

 

—

 

 

 

(200.0

)

 

 

(200.4

)

 

 

—

 

 

 

400.4

 

 

 

—

 

Intercompany return of capital

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

8.3

 

 

 

19.4

 

 

 

—

 

 

 

27.7

 

Net cash used for investing activities

 

 

—

 

 

 

(990.1

)

 

 

(309.0

)

 

 

(696.7

)

 

 

1,127.1

 

 

 

(868.7

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of notes

 

 

—

 

 

 

998.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

998.4

 

Additions to revolving credit

   facilities

 

 

—

 

 

 

421.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

421.8

 

Additions to debt

 

 

—

 

 

 

742.6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

742.6

 

Repayments of debt

 

 

—

 

 

 

(1,657.1

)

 

 

(206.6

)

 

 

(468.2

)

 

 

—

 

 

 

(2,331.9

)

Other financing (repayments) additions

 

 

—

 

 

 

—

 

 

 

(26.9

)

 

 

50.8

 

 

 

—

 

 

 

23.9

 

Issuances of common stock, net of related

  minimum tax withholdings

 

 

—

 

 

 

35.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

35.8

 

Purchases of common stock

 

 

—

 

 

 

(93.0

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(93.0

)

Cash dividends paid to stockholders

 

 

—

 

 

 

(403.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(403.2

)

Cash distributions paid to noncontrolling

   interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(47.0

)

 

 

—

 

 

 

(47.0

)

Intercompany notes borrowing

 

 

—

 

 

 

3.5

 

 

 

519.8

 

 

 

734.1

 

 

 

(1,257.4

)

 

 

—

 

Intercompany notes payments

 

 

—

 

 

 

(3.5

)

 

 

(519.8

)

 

 

(7.4

)

 

 

530.7

 

 

 

—

 

Intercompany capital receipt

 

 

—

 

 

 

—

 

 

 

200.0

 

 

 

200.4

 

 

 

(400.4

)

 

 

—

 

Intercompany capital distribution

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.4

)

 

 

1.4

 

 

 

—

 

Other

 

 

—

 

 

 

(3.2

)

 

 

—

 

 

 

0.4

 

 

 

—

 

 

 

(2.8

)

Net cash provided by (used for) financing

  activities

 

 

—

 

 

 

42.1

 

 

 

(33.5

)

 

 

461.7

 

 

 

(1,125.7

)

 

 

(655.4

)

Effect of exchange rate changes on cash, cash

  equivalents and restricted cash

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.1

)

 

 

—

 

 

 

(2.1

)

(Decrease) increase in cash, cash equivalents

  and restricted cash

 

 

—

 

 

 

(19.4

)

 

 

1.7

 

 

 

(44.7

)

 

 

—

 

 

 

(62.4

)

Cash, cash equivalents and restricted cash

  at beginning of period

 

 

—

 

 

 

19.4

 

 

 

41.6

 

 

 

305.4

 

 

 

—

 

 

 

366.4

 

Cash, cash equivalents and restricted cash

  at end of period

 

$

—

 

 

$

—

 

 

$

43.3

 

 

$

260.7

 

 

$

—

 

 

$

304.0

 

 


The condensed consolidating statements of cash flows for the year ended September 30, 2017 do not include non-cash transactions between Parent, Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries. From time to time, we may enter into non-cash transactions for simplicity of execution of intercompany transactions. These may include intercompany non-cash capitalizations, intercompany non-cash returns of capital, intercompany debt-to-equity conversions or other transactions of a similar nature. The table below summarizes these non-cash transactions.

 

 

 

Year Ended September 30, 2017

 

(In millions)

 

Parent

 

 

 

 

Issuer

 

 

 

 

Guarantor Subsidiaries

 

 

 

 

Non-Guarantor Subsidiaries

 

 

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes issued

 

$

—

 

 

 

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(1,673.9

)

 

 

 

$

1,673.9

 

 

$

—

 

Intercompany notes proceeds

 

$

—

 

 

 

 

$

1,604.9

 

 

 

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(1,604.9

)

 

$

—

 

Intercompany capital investment

 

$

—

 

 

 

 

$

(2,200.5

)

 

 

 

$

(2,908.0

)

 

 

 

$

—

 

 

 

 

$

5,108.5

 

 

$

—

 

Intercompany return of capital

 

$

—

 

 

 

 

$

1,083.6

 

 

 

 

$

1,556.2

 

 

 

 

$

—

 

 

 

 

$

(2,639.8

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes borrowing

 

$

—

 

 

 

 

$

69.0

 

 

 

 

$

1,604.9

 

 

 

 

$

—

 

 

 

 

$

(1,673.9

)

 

$

—

 

Intercompany notes payments

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(1,604.9

)

 

 

 

$

—

 

 

 

 

$

1,604.9

 

 

$

—

 

Intercompany capital receipt

 

$

—

 

 

 

 

$

—

 

 

 

 

$

1,728.4

 

 

 

 

$

3,380.1

 

 

 

 

$

(5,108.5

)

 

$

—

 

Intercompany capital distribution

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(1,083.6

)

 

 

 

$

(1,556.2

)

 

 

 

$

2,639.8

 

 

$

—

 

Intercompany dividends paid

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(144.1

)

 

 

 

$

(204.5

)

 

 

 

$

348.6

 

 

$

—

 

 
v3.19.3
Operating Leases
 12 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Operating Leases

Note 15.

Operating Leases

We lease certain manufacturing and warehousing facilities and equipment, primarily transportation equipment, and office space under various operating leases. Some leases contain escalation clauses and provisions for lease renewal. As of September 30, 2019, future minimum lease payments under all noncancelable operating leases for the succeeding five fiscal years and thereafter are as follows (in millions):

 

Fiscal 2020

 

$

214.3

 

Fiscal 2021

 

 

180.1

 

Fiscal 2022

 

 

136.3

 

Fiscal 2023

 

 

108.3

 

Fiscal 2024

 

 

85.3

 

Thereafter

 

 

206.1

 

Total future minimum lease payments

 

$

930.4

 

 

Rental expense for the years ended September 30, 2019, 2018 and 2017 was approximately $346.7 million, $243.7 million and $210.5 million, respectively, including lease payments under cancelable leases and maintenance charges on transportation equipment.
v3.19.3
Special Purpose Entities
 12 Months Ended
Sep. 30, 2019
Special Purpose Entities [Abstract]  
Special Purpose Entities

Note 16.

Special Purpose Entities

Pursuant to a sale of certain large-tract forestlands in 2007, a special purpose entity MWV Timber Notes Holding, LLC (“MWV TN”) received, and WestRock assumed upon the Combination, an installment note receivable in the amount of $398.0 million (“Timber Note”). The Timber Note does not require any principal payments until its maturity in October 2027 and bears interest at a rate approximating LIBOR. In addition, the Timber Note is supported by a bank-issued irrevocable letter of credit obtained by the buyer of the forestlands. The Timber Note is not subject to prepayment in whole or in part prior to maturity. The bank’s credit rating as of October 2019 was investment grade.

Using the Timber Note 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 the Timber Note proceeds upon its maturity in October 2027. As a result, the Timber Note 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 the Timber Note is not prepayable, MWV TN expects to only repay the liability at maturity from the Timber Note proceeds.

The Timber Note and the secured financing liability were fair valued on the opening balance sheet in connection with the Combination. As of September 30, 2019, the Timber Note was $369.1 million and is included within restricted assets held by special purpose entities on the consolidated balance sheet and the secured financing liability was $324.5 million and is included within non-recourse liabilities held by special purpose entities on the consolidated balance sheet.

Pursuant to the sale of MWV’s remaining U.S. forestlands, which occurred on December 6, 2013, another special purpose entity MWV 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 (the “Installment Note”). The Installment Note does not require any principal payments until its maturity in December 2023 and bears interest at a fixed rate of 5.207%. However, at any time during a 180-day period following receipt by the borrower of notice from us that we intend to withhold our consent to any amendment or waiver of this Installment Note that was requested by the borrower and approved by any eligible assignees, the borrower may prepay the Installment Note in whole but not in part for cash at 100% of the principal, plus accrued but unpaid interest, breakage, or other similar amount if any. As of September 30, 2019, no event had occurred that would allow for the prepayment of the Installment Note. We monitor the credit quality of the borrower and receive quarterly compliance certificates. The borrower’s credit rating as of October 2019 was investment grade.

Using the Installment Note as collateral, MWV TN II received $774.0 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 WestRock and is payable from the Installment Note proceeds upon its maturity in December 2023. As a result, the Installment Note 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 the Installment Note was prepaid in whole or in part. The secured financing agreement however requires a mandatory repayment, up to the amount of cash received, if the Installment Note is prepaid in whole or in part.

The Installment Note and the secured financing liability were fair valued on the opening balance sheet in connection with the Combination. As of September 30, 2019, the Installment Note was $905.2 million and is included within restricted assets held by special purpose entities on the consolidated balance sheet and the secured financing liability was $820.7 million and is included within non-recourse liabilities held by special purpose entities on the consolidated balance sheet.
v3.19.3
Related Party Transactions
 12 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

Note 17.

Related Party Transactions

We sell products to affiliated companies. Net sales to the affiliated companies for the fiscal years ended September 30, 2019, 2018 and 2017 were approximately $368.4 million, $418.8 million and $423.6 million, respectively. Accounts receivable due from the affiliated companies at September 30, 2019 and 2018 was $23.0 million and $64.2 million, respectively, and was included in accounts receivable on our consolidated balance sheets.
v3.19.3
Commitments and Contingencies
 12 Months Ended
Sep. 30, 2019
Commitments And Contingencies [Abstract]  
Commitments and Contingencies

Note 18.

Commitments and Contingencies

Capital Additions

Estimated costs for future purchases of fixed assets that we are obligated to purchase as of September 30, 2019 total approximately $623 million.

Environmental and Other Matters

Environmental compliance requirements are a significant factor affecting our business. We employ manufacturing processes that result in various discharges, emissions and wastes. 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.

On January 31, 2013, the EPA published Boiler MACT. Boiler MACT required compliance by January 31, 2016 or by January 31, 2017 for those mills for which we obtained a prior compliance extension. All work required for our boilers to comply with the rule has been completed. On July 29, 2016, the U.S. Court of Appeals for the District of Columbia Circuit issued a ruling on the consolidated cases challenging Boiler MACT. The court vacated key portions of the rule, including emission limits for certain subcategories of solid fuel boilers, and remanded other issues to the EPA for further rulemaking. At this time, we cannot predict with certainty how this decision will impact our existing Boiler MACT strategies or whether we will incur additional costs to comply with any revised Boiler MACT standards.

In addition to Boiler MACT, we are subject to several other federal, state, local and international environmental rules that may impact our business, including the National Ambient Air Quality Standards for nitrogen oxide, sulfur dioxide, fine particulate matter and ozone for facilities in the U.S.

We are involved in various administrative 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 with certainty 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.

CERCLA and Other Remediation Costs

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 problems exist, 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 CERCLA and analogous laws. While joint and several liability is authorized under CERCLA, liability is typically shared with other PRPs 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 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 damaged at these or other sites in the future could result in additional costs.

On January 26, 2009, Smurfit-Stone, which we acquired in fiscal 2011 and certain of its subsidiaries filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. Smurfit-Stone’s Canadian subsidiaries also filed to reorganize in Canada. We believe that matters relating to previously identified third-party PRP sites and certain facilities formerly owned or operated by Smurfit-Stone have been satisfied by claims in the Smurfit-Stone bankruptcy proceedings. However, we may face additional liability for cleanup activity at sites that are not subject to the bankruptcy discharge, but are not currently identified. The final bankruptcy distributions were made in fiscal 2018.

We believe that we can assert claims for indemnification pursuant to existing rights we have under purchase and other agreements in connection with certain remediation sites. In addition, we believe that we have insurance coverage, subject to applicable deductibles/retentions, policy limits and other conditions, for certain environmental matters. However, there can be no assurance that we will be successful with respect to any claim regarding these insurance or indemnification rights or that, if we are successful, any amounts paid pursuant to the insurance or indemnification rights will be sufficient to cover all our costs and expenses. We also cannot predict with certainty 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 assess with certainty 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, 2019, we had $10.8 million reserved for environmental liabilities on an undiscounted basis, of which $5.6 million is included in other long-term liabilities and $5.2 million is included in other current liabilities, 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, 2019.

Climate Change

Certain jurisdictions in which we have manufacturing facilities or other investments have taken actions to address climate change. The EPA has issued the Clean Air Act permitting regulations applicable to certain facilities that emit GHG. The EPA also has promulgated a rule requiring certain industrial facilities that emit 25,000 metric tons or more of carbon dioxide equivalent per year to file an annual report of their emissions. While we have facilities subject to existing GHG permitting and reporting requirements, the impact of these requirements has not been material to date.

Additionally, the EPA has been working on rulemakings aimed at cutting carbon emissions from power plants. On June 20, 2019, the EPA issued the final ACE rule, which establishes emission guidelines for states to use in developing plans to address greenhouse gas emissions from existing coal-fired power plants. The ACE rule replaced a final rule issued by the EPA in 2015 establishing GHG emission guidelines for existing electric utility generating units, which was stayed by the U.S. Supreme Court and has never gone into effect. Although the ACE rule does not apply directly to the power generation facilities at our mills, it has the potential to increase the cost of purchased electricity for our manufacturing operations and change the treatment of certain types of biomass that are currently considered carbon neutral. Due to uncertainties regarding the implementation of the ACE rule, its potential impacts on us cannot be quantified with certainty at this time.

In addition to national efforts to regulate climate change, some U.S. states in which we have manufacturing operations are taking measures to reduce GHG emissions, such as requiring GHG emissions reporting or developing regional cap-and trade programs. California has enacted a cap-and-trade program that took effect in 2012, and includes enforceable compliance obligations that began in 2013. In 2017, California extended the cap-and-trade program to 2030. We do not have any manufacturing facilities that are subject to the cap-and-trade requirements in California; however, we are continuing to monitor the implementation of this program as well as proposed mandatory GHG reduction efforts in other states. The Washington Department of Ecology issued a final rule, known as the Clean Air Rule, in 2016, which applies to GHGs from facilities that have average annual carbon dioxide equivalent emissions equal to or exceeding 100,000 metric tons/year. Energy intensive and trade exposed facilities, including our Tacoma, WA and Longview, WA mills, and transportation fuel importers are subject to regulation under this program. Various groups filed lawsuits against the Washington Department of Ecology challenging the Clean Air Rule, and in 2018, the Thurston County Superior Court invalidated the Clean Air Rule. The case was argued before the Supreme Court on March 19, 2019, and an opinion is expected before the end of 2019. The Washington Department of Ecology subsequently filed an appeal with the State Supreme Court. Implementation of the Clean Air Rule has been stayed while the appeal is pending. In June 2019, the State of New York passed the CLCPA. This legislation, which becomes effective in January 2020, commits the state to reaching net zero GHG emissions, with interim goals of a 40% reduction in absolute terms from 1990 levels by 2030 and an 85% reduction by 2050. Our Solvay, NY mill could be affected by the implementation of the CLCPA, although we cannot currently quantify any impacts due to uncertainties regarding implementation of the law. The Virginia Department of Environmental Quality has issued regulations that would link the Commonwealth to the RGGI, which is a nine-state, market-based carbon cap-and-trade program. Although industrial facilities like our paper mills and converting facilities in Virginia would be exempt from the RGGI regulations, electric generating units and utilities subject to the RGGI carbon reduction requirements may incur increased costs that could be passed on to ratepayers like our industrial facilities in Virginia. The State Air Pollution Control Board approved the final RGGI carbon trading regulations in April 2019; however, legislative amendments made to Virginia’s 2019 budget currently block the use of state funds to join RGGI or any climate change compacts, and to prevent using any cap-and-trade revenue without General Assembly approval. In September 2019, Governor Ralph Northam issued EO 43, setting goals for Virginia to generate 30 percent of its electricity from carbon-free sources by 2030 and 100 percent by 2050. EO 43 directs various state agencies, including the Department of Environmental Quality, to develop a plan of action to meet these energy goals and address related issues such as energy storage, energy efficiency and environmental justice.

The Paris Agreement established a framework for reducing global GHG emissions. By signing the Paris Agreement, the U.S. made a non-binding commitment to reduce economy-wide GHG emissions by 26% to 28%

below 2005 levels by 2025. Other countries in which we conduct business, including China, European Union member states and India, have set GHG reduction targets. The Paris Agreement became effective in November 2016. Although a party to the agreement may not provide the required one-year notice of withdrawal until three years after the effective date, in 2017, President Trump announced that the U.S. intended to withdraw from the Paris Agreement. At this time, it is not possible to determine how the Paris Agreement, or any potential U.S. commitments in lieu of those under the agreement, may impact U.S. industrial facilities, including our domestic operations.

Several of our international facilities are located in countries that have already adopted GHG emissions trading schemes. For example, Quebec has become a member of the Western Climate Initiative, which is a collaboration among California and certain Canadian provinces that have joined together to create a cap-and-trade program to reduce GHG emissions. In 2009, Quebec adopted a target of reducing GHG emissions by 20% below 1990 levels by 2020 and 37.5% from 1990 levels by 2030. In 2011, Quebec issued a final regulation establishing a regional cap-and-trade program that required reductions in GHG emissions from covered emitters as of January 1, 2013. Our mill in Quebec is subject to these cap-and-trade requirements, although the direct impact of this regulation has not been material to date. Compliance with this program and other similar programs may require future expenditures to meet required GHG emission reduction requirements in future years.

Regulation related to climate change continues to develop in the areas of the world where we conduct business. We have systems in place for tracking the GHG emissions from our energy-intensive facilities, and we carefully 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.

Litigation

A lawsuit filed in the U.S. District Court of the Northern District of Illinois in 2010 alleged that certain named defendants violated the Sherman Act by conspiring to limit the supply and fix the prices of containerboard and products containing containerboard from February 15, 2004 through November 8, 2010 (the “Antitrust Litigation”). WestRock CP, LLC, as the successor to Smurfit-Stone, was a named defendant with respect to the period after Smurfit-Stone’s discharge from bankruptcy on June 30, 2010 through November 8, 2010. The complaint sought treble damages and costs, including attorney’s fees. In March 2015, the court granted the plaintiffs’ motion for class certification. On January 9, 2017, the defendants filed individual and joint Motions for Summary Judgment in the District Court. On August 3, 2017, the District Court granted our Motion for Summary Judgment and entered a judgment in our favor with respect to all claims against us. The U.S. Court of Appeals for the Seventh Circuit affirmed the District Court’s decision on December 7, 2018. Plaintiff’s time to appeal this affirmation expired on March 7, 2019. Accordingly, the Order of the District Court granting summary judgment and our complete dismissal became final. Additionally, the District Court ordered entry of stipulation of the parties that required the plaintiffs to reimburse us for costs of approximately $0.1 million.

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, 2019, there were approximately 825 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 a material adverse effect on our results of operations, financial condition or cash flows.

We are a defendant in a number of other lawsuits and claims arising out of the conduct of our business. While the ultimate results of such suits or other proceedings against us cannot be predicted with certainty, we believe the resolution of these other matters will not have a material adverse effect on our results of operations, financial condition or cash flows.

Brazil Tax Liability

On October 4, 2019, we filed an annulment action in federal tax court challenging an administrative decision of the Brazil Administrative Council of Tax Appeals (“CARF”). This federal court action arises from a claim that a

subsidiary of MeadWestvaco had reduced its tax liability related to the goodwill generated by the 2002 merger of two subsidiaries in Brazil. The matter has proceeded through the CARF principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. On August 6, 2019, CARF published a decision finding us liable for underpayment of tax and interest with respect to the period 2009 to 2012. Certain aspects of the two cases remain pending before CARF, including the dispute related to tax years 2003 to 2008, and penalties relating to tax years 2009 to 2012. The total amount in dispute before CARF and in the annulment action relating to the claimed tax deficiency is R$678 million ($163 million) as of September 30, 2019, including penalties and interest. We assert that we have no liability in these matters. Our uncertain tax position reserve for this matter is included in the unrecognized tax benefits table in “Note 6. Income Taxes”. 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.

 

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 dispositions. 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 could be approximately $50 million. As of September 30, 2019, we had recorded $10.1 million for the estimated fair value of these guarantees. We are unable to estimate our maximum exposure under operating leases because it is dependent on potential changes in the tax 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.

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, the Supreme Court of Brazil rendered favorable decisions on six of our cases granting us the right to recover certain state value added tax. 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. Based on our preliminary evaluation and the opinion of our tax and legal advisors, in the fourth quarter of fiscal 2019 we recorded a $12.2 million receivable for our expected recovery and interest primarily as a reduction of cost of goods sold for the period March 2017 to September 2019. We are still evaluating the impact of the court’s decision on periods prior to March 2017 and may record additional amounts in the future as we complete our analysis.
v3.19.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income
 12 Months Ended
Sep. 30, 2019
Other Comprehensive Income Loss [Abstract]  
Accumulated Other Comprehensive Loss and Other Comprehensive Income

Note 19.

Accumulated Other Comprehensive Loss and Other Comprehensive Income

The following table summarizes the changes in accumulated other comprehensive loss by component for the fiscal years ended September 30, 2019 and 2018 (in millions):  

 

 

 

Deferred

(Loss) Income on Cash

Flow Hedges

 

 

Defined Benefit

Pension and

Postretirement

Plans

 

 

Foreign

Currency

Items

 

 

Available

for Sale

Security

 

 

Total (1)

 

Balance at September 30, 2017

 

$

(0.7

)

 

$

(462.5

)

 

$

5.2

 

 

$

0.7

 

 

$

(457.3

)

Other comprehensive (loss) income before

   reclassifications

 

 

—

 

 

 

(18.6

)

 

 

(234.4

)

 

 

0.8

 

 

 

(252.2

)

Amounts reclassified from accumulated

   other comprehensive loss (income)

 

 

0.5

 

 

 

15.2

 

 

 

—

 

 

 

(1.5

)

 

 

14.2

 

Net current period other comprehensive

   income (loss)

 

 

0.5

 

 

 

(3.4

)

 

 

(234.4

)

 

 

(0.7

)

 

 

(238.0

)

Balance at September 30, 2018

 

$

(0.2

)

 

$

(465.9

)

 

$

(229.2

)

 

$

—

 

 

$

(695.3

)

Other comprehensive income (loss) before

   reclassifications

 

 

1.1

 

 

 

(250.7

)

 

 

(142.7

)

 

 

—

 

 

 

(392.3

)

Amounts reclassified from accumulated

   other comprehensive (income) loss

 

 

(0.2

)

 

 

18.6

 

 

 

—

 

 

 

—

 

 

 

18.4

 

Net current period other comprehensive

   income (loss)

 

 

0.9

 

 

 

(232.1

)

 

 

(142.7

)

 

 

—

 

 

 

(373.9

)

Balance at September 30, 2019

 

$

0.7

 

 

$

(698.0

)

 

$

(371.9

)

 

$

—

 

 

$

(1,069.2

)

 

(1)

All amounts are net of tax and noncontrolling interest.

 

 

The following table summarizes the reclassifications out of accumulated other comprehensive loss by component for the fiscal years ended September 30, 2019 and 2018 (in millions):

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Amortization of defined benefit pension and

   postretirement items: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses (2)

 

$

(22.7

)

 

 

5.9

 

 

$

(16.8

)

 

$

(20.9

)

 

 

5.9

 

 

$

(15.0

)

Prior service costs (2)

 

 

(2.4

)

 

 

0.6

 

 

 

(1.8

)

 

 

(0.3

)

 

 

0.1

 

 

 

(0.2

)

Subtotal defined benefit plans

 

 

(25.1

)

 

 

6.5

 

 

 

(18.6

)

 

 

(21.2

)

 

 

6.0

 

 

 

(15.2

)

Available for sale security (1)(3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.5

 

 

 

—

 

 

 

1.5

 

Derivative Instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap hedge gain (4)

 

 

0.3

 

 

 

(0.1

)

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency cash flow hedge loss (5)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.7

)

 

 

0.2

 

 

 

(0.5

)

Total reclassifications for the period

 

$

(24.8

)

 

$

6.4

 

 

$

(18.4

)

 

$

(20.4

)

 

$

6.2

 

 

$

(14.2

)

 

 

(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 5. Retirement Plans” for additional details.

(3)

These accumulated other comprehensive income components are included in other income, net.

(4)

These accumulated other comprehensive income components are included in interest expense, net.

(5)

These accumulated other comprehensive income components are included in net sales.

 

A summary of the components of other comprehensive (loss) income, including noncontrolling interest, for the years ended September 30, 2019, 2018 and 2017, is as follows (in millions):

 

Fiscal 2019

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation loss

 

$

(143.4

)

 

$

—

 

 

$

(143.4

)

Deferred gain on cash flow hedges

 

 

1.5

 

 

 

(0.4

)

 

 

1.1

 

Reclassification adjustment of net gain on cash flow hedges

   included in earnings

 

 

(0.3

)

 

 

0.1

 

 

 

(0.2

)

Net actuarial loss arising during period

 

 

(335.9

)

 

 

87.4

 

 

 

(248.5

)

Amortization and settlement recognition of net actuarial loss

 

 

23.3

 

 

 

(6.1

)

 

 

17.2

 

Prior service cost arising during the period

 

 

(3.9

)

 

 

0.6

 

 

 

(3.3

)

Amortization of prior service cost

 

 

2.4

 

 

 

(0.6

)

 

 

1.8

 

Consolidated other comprehensive loss

 

 

(456.3

)

 

 

81.0

 

 

 

(375.3

)

Less: Other comprehensive loss attributable to noncontrolling

   interests

 

 

1.5

 

 

 

(0.1

)

 

 

1.4

 

Other comprehensive loss attributable to common

   stockholders

 

$

(454.8

)

 

$

80.9

 

 

$

(373.9

)

 

Fiscal 2018

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation loss

 

$

(234.4

)

 

$

—

 

 

$

(234.4

)

Reclassification adjustment of net loss on cash flow hedges

   included in earnings

 

 

0.7

 

 

 

(0.2

)

 

 

0.5

 

Net actuarial loss arising during period

 

 

(29.0

)

 

 

15.9

 

 

 

(13.1

)

Amortization and settlement recognition of net actuarial loss

 

 

20.9

 

 

 

(5.9

)

 

 

15.0

 

Prior service cost arising during the period

 

 

(7.8

)

 

 

2.3

 

 

 

(5.5

)

Amortization of prior service cost

 

 

0.3

 

 

 

(0.1

)

 

 

0.2

 

Unrealized gain on available for sale security

 

 

0.8

 

 

 

—

 

 

 

0.8

 

Reclassification adjustment of net gain on available for sale

   security included in earnings

 

 

(1.5

)

 

 

—

 

 

 

(1.5

)

Consolidated other comprehensive loss

 

 

(250.0

)

 

 

12.0

 

 

 

(238.0

)

Less: Other comprehensive income attributable to noncontrolling

   interests

 

 

—

 

 

 

—

 

 

 

—

 

Other comprehensive loss attributable to common

   stockholders

 

$

(250.0

)

 

$

12.0

 

 

$

(238.0

)

 

Fiscal 2017

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation gain

 

$

80.7

 

 

$

—

 

 

$

80.7

 

Sale of HH&B, foreign currency

 

 

26.8

 

 

 

—

 

 

 

26.8

 

Reclassification adjustment of net gain on cash flow hedges

   included in earnings

 

 

(0.8

)

 

 

0.3

 

 

 

(0.5

)

Net actuarial gain arising during period

 

 

34.1

 

 

 

(11.9

)

 

 

22.2

 

Amortization and settlement recognition of net actuarial loss

 

 

56.4

 

 

 

(20.4

)

 

 

36.0

 

Prior service credit arising during the period

 

 

1.0

 

 

 

(0.3

)

 

 

0.7

 

Amortization of prior service credit

 

 

(0.4

)

 

 

0.2

 

 

 

(0.2

)

Unrealized gain on available for sale security

 

 

0.7

 

 

 

—

 

 

 

0.7

 

Sale of HH&B, defined benefit pension plans

 

 

4.2

 

 

 

(1.3

)

 

 

2.9

 

Consolidated other comprehensive income

 

 

202.7

 

 

 

(33.4

)

 

 

169.3

 

Less: Other comprehensive income attributable to noncontrolling

   interests

 

 

(0.2

)

 

 

—

 

 

 

(0.2

)

Other comprehensive income attributable to common

   stockholders

 

$

202.5

 

 

$

(33.4

)

 

$

169.1

 

 

 
v3.19.3
Stockholders' Equity
 12 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Stockholders' Equity

Note 20.

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. The shares of our Common Stock may be repurchased over an indefinite period of time at the discretion of management. In fiscal 2019, we repurchased approximately 2.1 million shares of our Common Stock for an aggregate cost of $88.6 million. In fiscal 2018, we repurchased approximately 3.4 million shares of our Common Stock for an aggregate cost of $195.1 million. In fiscal 2017, we repurchased approximately 1.8 million shares of our Common Stock for an aggregate cost of $93.0 million. As of September 30, 2019, we had remaining authorization under the repurchase program authorized in July 2015 to purchase approximately 19.1 million shares of our Common Stock.
v3.19.3
Share-Based Compensation
 12 Months Ended
Sep. 30, 2019
Stock Based Compensation [Abstract]  
Stock Based Compensation

Note 21.

Share-Based Compensation

Share-based Compensation Plans

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 allows for the granting of options, restricted stock, SARs and restricted stock units to certain key employees and directors.

The table below shows the approximate number of shares: available for issuance, available for future grant, to be issued if restricted awards granted with a performance condition recorded at target achieve the maximum award, and if new grants pursuant to the plan are expected to be issued, each as adjusted as necessary for corporate actions (in millions).

 

 

Shares Available For Issuance

 

 

Shares Available For Future Grant

 

 

Shares To Be Issued If Performance Is Achieved At Maximum

 

 

Expect To Make New Awards

Amended and Restated 2016 Incentive Stock Plan (1)

 

 

11.7

 

 

 

5.1

 

 

 

2.3

 

 

Yes

2004 Incentive Stock Plan (1)(2)

 

 

15.8

 

 

 

3.1

 

 

 

0.0

 

 

No

2005 Performance Incentive Plan (1)(2)

 

 

12.8

 

 

 

9.0

 

 

 

0.0

 

 

No

RockTenn (SSCC) Equity Inventive Plan (1)(3)

 

 

7.9

 

 

 

5.9

 

 

 

0.0

 

 

No

 

(1)

As part of the Separation, equity-based incentive awards were generally adjusted to maintain the intrinsic value of awards immediately prior to the Separation. The number of unvested restricted stock awards and unexercised stock options and SARs at the time of the Separation were increased by an exchange factor of approximately 1.12. In addition, the exercise price of unexercised stock options and SARs at the time of the Separation was converted to decrease the exercise price by an exchange factor of approximately 1.12.

 

 

(2)

In connection with the Combination, WestRock assumed all RockTenn and MWV equity incentive plans. We issued awards to certain key employees and our directors pursuant to our RockTenn 2004 Incentive Stock Plan, as amended, and our MWV 2005 Performance Incentive Plan, as amended. The awards were converted into WestRock awards using the conversion factor as described in the Business Combination Agreement.

 

 

(3)

In connection with the Smurfit-Stone acquisition, we assumed the Smurfit-Stone equity incentive plan, which was renamed the Rock-Tenn Company (SSCC) Equity Incentive Plan. The awards were converted into shares of RockTenn common stock, options and restricted stock units, as applicable, using the conversion factor as described in the merger agreement.

Our results of operations for the fiscal years ended September 30, 2019, 2018 and 2017 include share-based compensation expense of $64.2 million, $66.8 million and $60.9 million, respectively, including $2.9 million included in the gain on sale of HH&B in fiscal 2017. Share-based compensation expense in fiscal 2017 was reduced by $5.4 million for the rescission of shares granted to our CEO that were inadvertently granted in excess of plan limits in fiscal 2014 and 2015. The total income tax benefit in the results of operations in connection with share-based compensation was $16.3 million, $19.4 million and $22.5 million, for the fiscal years ended September 30, 2019, 2018 and 2017, respectively.

Cash received from share-based payment arrangements for the fiscal years ended September 30, 2019, 2018 and 2017 was $61.5 million, $44.4 million and $59.2 million, respectively.

Equity Awards Issued in Connection with Acquisitions

In connection with the KapStone Acquisition, we replaced certain outstanding awards of restricted stock units granted under the KapStone long-term incentive plan with WestRock stock options and restricted stock units. No additional shares will be granted under the KapStone plan. The KapStone equity awards were replaced with awards with identical terms utilizing an approximately 0.83 conversion factor as described in the Merger Agreement. The acquisition consideration included approximately $70.8 million related to outstanding KapStone equity awards related to service prior to the effective date of the KapStone Acquisition – the balance related to service after the effective date will be expensed over the remaining service period of the awards.

As part of the KapStone Acquisition, we issued 2,665,462 options that were valued at a weighted average fair value of $20.99 per share using the Black-Scholes option pricing model. The weighted average significant assumptions used were:

 

 

 

2019

 

Expected term in years

 

 

3.1

 

Expected volatility

 

 

27.7

%

Risk-free interest rate

 

 

3.0

%

Dividend yield

 

 

4.1

%

 

In connection with the MPS Acquisition, we replaced certain outstanding awards of restricted stock units granted under the MPS long-term incentive plan with WestRock restricted stock units. No additional shares will be granted under the MPS plan. The MPS equity awards were replaced with identical terms utilizing an approximately 0.33 conversion factor as described in the merger agreement. As part of the MPS Acquisition, we granted 119,373 awards of restricted stock units, which contain service conditions and were valued at $54.24 per share. The acquisition consideration included approximately $1.9 million related to outstanding MPS equity awards related to service prior to the effective date of the MPS Acquisition – the balance related to service after the effective date will be expensed over the remaining service period of the awards.

Stock Options and Stock Appreciation Rights

Stock options granted under our plans generally have an exercise price equal to the closing market price on the date of the grant, generally vest 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.

At the date of grant, 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 historic annual dividend payments and current expectations for the future. Other than in connection with replacement awards in connection with acquisitions, we did not grant any stock options in fiscal 2019, 2018 and 2017.

The table below summarizes the changes in all stock options during the fiscal year ended September 30, 2019:

 

 

 

Stock

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

 

Aggregate

Intrinsic

Value

(in millions)

 

Outstanding at September 30, 2018

 

 

4,253,654

 

 

$

33.75

 

 

 

 

 

 

 

 

 

Granted

 

 

2,665,462

 

 

 

22.06

 

 

 

 

 

 

 

 

 

Exercised

 

 

(2,403,217

)

 

 

21.38

 

 

 

 

 

 

 

 

 

Expired

 

 

(84,560

)

 

 

42.04

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(35,162

)

 

 

26.52

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2019

 

 

4,396,177

 

 

$

33.32

 

 

3.7

 

 

$

26.7

 

Exercisable at September 30, 2019

 

 

4,296,067

 

 

$

33.48

 

 

 

3.6

 

 

$

25.7

 

Vested and expected to vest at September 30, 2019

 

 

4,394,409

 

 

$

33.33

 

 

3.7

 

 

$

26.7

 

 

The aggregate intrinsic value of options exercised during the years ended September 30, 2019, 2018 and 2017 was $44.5 million, $67.4 million and $54.3 million, respectively.

As of September 30, 2019, there was $0.5 million of total unrecognized compensation cost related to nonvested stock options; that cost is expected to be recognized over a weighted average remaining vesting period of 0.5 years. We amortize these costs on a straight-line basis over the explicit service period.

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 measure compensation expense related to the SAR awards at the end of each period. We do not expect to issue additional SARs.

The table below summarizes the changes in all SARs during the fiscal year ended September 30, 2019:

 

 

 

SARs

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

Aggregate

Intrinsic

Value

(in millions)

 

Outstanding at September 30, 2018

 

 

36,986

 

 

$

27.36

 

 

 

 

 

 

 

Exercised

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Expired

 

 

(2,014

)

 

 

9.02

 

 

 

 

 

 

 

Outstanding at September 30, 2019

 

 

34,972

 

 

$

28.41

 

 

1.5

 

$

0.3

 

Exercisable at September 30, 2019

 

 

34,972

 

 

$

28.41

 

 

1.5

 

$

0.3

 

 

The aggregate intrinsic value of SARs exercised during the years ended September 30, 2019, 2018 and 2017 was zero, $0.5 million and $0.4 million, respectively.

Restricted Stock

Restricted stock is typically granted annually to non-employee directors and certain of our employees. Our non-employee director awards generally vest over a period of up to one year and are treated as issued and carry dividend and voting rights until they vest. 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 including Cash Flow Per Share, Cash Flow to Equity Ratio and relative Total Shareholder Return (each as defined in the award documents). Subject to the level of performance attained, the target award for some of the grants may increase up to 200% of target or decrease to zero depending upon the terms of the individual grant. The employee grants generally vest in three years. Presently,

other than circumstances such as death, disability and retirement, the grants generally include a provision requiring both a change of control and termination of employment to accelerate vesting. For certain employee grants, the grantee is entitled to receive dividend equivalent units, but will generally forfeit the restricted award and the dividend equivalents if the employee separates from us during the vesting period or if the predetermined goals are not accomplished.

The table below summarizes the changes in unvested restricted stock during the fiscal year ended September 30, 2019:

 

 

 

Shares/Units

 

 

Weighted

Average

Grant Date Fair

Value

 

Unvested at September 30, 2018 (1)

 

 

3,224,174

 

 

$

51.01

 

Granted

 

 

3,673,445

 

 

 

38.71

 

Vested

 

 

(2,933,556

)

 

 

34.51

 

Forfeited

 

 

(318,525

)

 

 

50.43

 

Unvested at September 30, 2019 (1)

 

 

3,645,538

 

 

$

51.94

 

 

 

(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 grants to be attained at levels less than target. However, it is possible that the performance attained may vary.

There was approximately $80.5 million of unrecognized compensation cost related to all unvested restricted shares as of September 30, 2019 that will be recognized over a weighted average remaining vesting period of 1.5 years.

The following table represents a summary of restricted stock shares granted in fiscal 2019, 2018 and 2017 with terms defined in the applicable grant letters. The shares are not deemed to be issued and carry voting rights until the relevant conditions defined in the award documents have been met, unless otherwise noted.

 

 

 

2019

 

 

2018

 

 

2017

 

Shares of restricted stock granted to non-employee directors (1)

 

 

39,792

 

 

 

23,285

 

 

 

26,521

 

Shares of restricted stock granted to employees:

 

 

 

 

 

 

 

 

 

 

 

 

Shares granted for attainment of a performance condition at

   an amount in excess of target (2)

 

 

1,149,592

 

 

 

45,964

 

 

 

340,319

 

Shares granted with a service condition and a Cash Flow Per

   Share performance condition at target (3)

 

 

652,465

 

 

 

432,655

 

 

 

507,070

 

Shares granted with a service condition and a relative Total

   Shareholder Return market condition at target (3)

 

 

407,300

 

 

 

259,695

 

 

 

301,980

 

Shares granted with a service condition (4)

 

 

682,264

 

 

 

354,512

 

 

 

309,850

 

Share of restricted stock assumed in purchase accounting:

 

 

 

 

 

 

 

 

 

 

 

 

Shares granted with a service condition (5)

 

 

742,032

 

 

 

—

 

 

 

119,373

 

Total restricted stock granted

 

 

3,673,445

 

 

 

1,116,111

 

 

 

1,605,113

 

 

 

(1)

Non-employee director grants generally vest over a period of up to one year and are deemed issued on the grant date and have voting and dividend rights.

(2)

Shares granted in the table above include shares subsequently issued for the level of performance attained in excess of target. Shares issued in fiscal 2019 for the fiscal 2016 Cash Flow Per Share were at 200% of target. Shares issued in fiscal 2018 for the fiscal 2015 Cash Flow Per Share were at 103.7% of target. Shares issued in fiscal 2017 for the fiscal 2014 Cash Flow Per Share were at 176.6% of target. Shares issued in fiscal 2017 also include shares accelerated for terminated employees primarily as a result of the Combination, which were achieved at between 146.5% and 200% of target.

(3)

These employee grants vest over approximately three years and have adjustable ranges from 0 - 200% of target subject to the level of performance attained in the respective award agreement. The employee grants with a relative Total Shareholder Return condition were valued using a Monte Carlo simulation, the terms of which are outlined below.

(4)

These shares vest over approximately three to four years.

(5)

These shares vest over approximately one to three years.

The employee grants with a relative Total Shareholder Return market condition in fiscal 2019 were valued using a Monte Carlo simulation at $42.64 per share. The significant assumptions used in valuing these grants included: an expected term of 2.9 years, an expected volatility of 27.2% and a risk-free interest rate of 2.4%. We amortize these costs on a straight-line basis over the explicit service period.

The employee grants with a relative Total Shareholder Return market condition in fiscal 2018 were valued using a Monte Carlo simulation at $66.28 per share. The significant assumptions used in valuing these grants included: an expected term of 2.9 years, an expected volatility of 29.7% and a risk-free interest rate of 2.3%. We amortize these costs on a straight-line basis over the explicit service period.

The employee grants with a relative Total Shareholder Return market condition in fiscal 2017 were valued using a Monte Carlo simulation at $64.41 per share. The significant assumptions used in valuing these grants included: an expected term of 2.9 years, an expected volatility of 30.6% and a risk-free interest rate of 1.4%. We amortize these costs on a straight-line basis over the explicit service period.

Expense is recognized on restricted stock grants 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 shares are ultimately awarded is based on the number of shares expected to be awarded.

The following table represents a summary of restricted stock vested in fiscal 2019, 2018 and 2017 (in millions, except shares):

 

 

 

2019

 

 

2018

 

 

2017

 

Shares of restricted stock vested

 

 

2,933,556

 

 

 

697,717

 

 

 

1,112,909

 

Aggregate fair value of restricted stock vested

 

$

115.2

 

 

$

46.1

 

 

$

59.5

 

 

The shares vested in fiscal 2019 reflect the vesting of the fiscal 2016 grants, with a Cash Flow Per Share performance condition that vested at 200% of target, as well as certain shares with a performance and/or service condition. The shares vested in fiscal 2018 reflect the vesting of the fiscal 2015 grants, with a Cash Flow Per Share performance condition that vested at 103.7% of target, as well as certain shares with a performance and/or service condition, including those shares assumed upon the Combination. The shares vested in 2017 reflect the vesting of the fiscal 2014 grant, with a Cash Flow Per Share performance condition that vested at 176.6% of target, certain shares assumed upon the Combination with a performance and/or service condition, as well as other awards accelerated in connection with the Combination for certain former employees.

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 2019, 2018 and 2017, employees purchased approximately 0.4 million, 0.2 million and 0.2 million shares, respectively, under the ESPP. We recognized $1.2 million, $1.6 million and $1.3 million of expense for fiscal 2019, 2018 and 2017, respectively, related to the 15% discount on the purchase price allowed to employees. As of September 30, 2019, adjusted for the Separation, approximately 2.0 million shares of Common Stock remained available for purchase under the ESPP.
v3.19.3
Earnings per Share
 12 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings per Share

Note 22.

Earnings per Share

The restricted stock awards that we grant to non-employee directors are considered participating securities as they receive non-forfeitable rights to dividends at the same rate as our Common Stock. As participating securities, we include these instruments in the earnings allocation in computing earnings per share under the two-class method described in ASC 260, “Earnings per Share.” The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in millions, except per share data):

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

 

$

862.9

 

 

$

1,906.1

 

 

$

708.2

 

Less: Distributed and undistributed income available to

   participating securities

 

 

(0.1

)

 

 

(0.2

)

 

 

(0.1

)

Distributed and undistributed income available to

   common stockholders

 

$

862.8

 

 

$

1,905.9

 

 

$

708.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

256.6

 

 

 

255.5

 

 

 

252.2

 

Effect of dilutive stock options and non-participating securities

 

 

2.5

 

 

 

4.3

 

 

 

3.5

 

Diluted weighted average shares outstanding

 

 

259.1

 

 

 

259.8

 

 

 

255.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to common

   stockholders

 

$

3.36

 

 

$

7.46

 

 

$

2.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to common

   stockholders

 

$

3.33

 

 

$

7.34

 

 

$

2.77

 

 

 Weighted average shares include zero and 0.2 million of reserved, but unissued shares at September 30, 2018 and 2017, respectively. These reserved shares were distributed as claims were liquidated or resolved in accordance with the resolution of Smurfit-Stone bankruptcy claims. The final bankruptcy distributions were made in fiscal 2018.

Options and restricted stock in the amount of 1.3 million, 0.2 million and 0.7 million common shares in fiscal 2019, 2018 and 2017, respectively, were not included in computing diluted earnings per share because the effect would have been antidilutive. The dilutive impact of the remaining awards outstanding in each year were included in the effect of dilutive securities.
v3.19.3
Financial Results by Quarter (Unaudited)
 12 Months Ended
Sep. 30, 2019
Financial Results By Quarter Unaudited [Abstract]  
Financial Results by Quarter

Note 23.

Financial Results by Quarter (Unaudited)

 

Fiscal 2019

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

 

(In millions, except per share data)

 

Net sales

 

$

4,327.4

 

 

$

4,620.0

 

 

$

4,690.0

 

 

$

4,651.6

 

Cost of goods sold

 

$

3,545.6

 

 

$

3,720.4

 

 

$

3,701.1

 

 

$

3,572.9

 

(Gain) loss on disposal of assets

 

$

(43.8

)

 

$

—

 

 

$

6.5

 

 

$

(3.9

)

Multiemployer pension withdrawal income

 

$

—

 

 

$

—

 

 

$

(1.7

)

 

$

(4.6

)

Land and Development impairments

 

$

—

 

 

$

13.0

 

 

$

—

 

 

$

—

 

Restructuring and other costs

 

$

54.4

 

 

$

34.8

 

 

$

17.9

 

 

$

66.6

 

(Loss) gain on extinguishment of debt

 

$

(1.9

)

 

$

0.4

 

 

$

(3.2

)

 

$

(0.4

)

Income tax expense

 

$

(62.7

)

 

$

(47.2

)

 

$

(77.6

)

 

$

(89.3

)

Consolidated net income

 

$

139.8

 

 

$

161.9

 

 

$

253.8

 

 

$

312.4

 

Net income attributable to common stockholders

 

$

139.1

 

 

$

160.4

 

 

$

252.6

 

 

$

310.8

 

Basic earnings per share attributable to common

   stockholders

 

$

0.55

 

 

$

0.63

 

 

$

0.98

 

 

$

1.21

 

Diluted earnings per share attributable to common

   stockholders

 

$

0.54

 

 

$

0.62

 

 

$

0.98

 

 

$

1.20

 

 

Fiscal 2018

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

 

(In millions, except per share data)

 

Net sales

 

$

3,894.0

 

 

$

4,017.0

 

 

$

4,137.5

 

 

$

4,236.6

 

Cost of goods sold

 

$

3,120.5

 

 

$

3,227.6

 

 

$

3,270.4

 

 

$

3,304.6

 

Multiemployer pension withdrawal expense

 

$

180.0

 

 

$

—

 

 

$

4.2

 

 

$

—

 

Land and Development impairments

 

$

27.6

 

 

$

—

 

 

$

1.7

 

 

$

2.6

 

Restructuring and other costs

 

$

16.3

 

 

$

31.7

 

 

$

17.1

 

 

$

40.3

 

(Loss) gain on extinguishment of debt

 

$

(1.0

)

 

$

0.1

 

 

$

0.9

 

 

$

(0.1

)

Income tax benefit (expense)

 

$

1,073.2

 

 

$

(18.8

)

 

$

(84.5

)

 

$

(95.4

)

Consolidated net income

 

$

1,133.5

 

 

$

224.5

 

 

$

271.3

 

 

$

280.0

 

Net income attributable to common stockholders

 

$

1,135.1

 

 

$

223.2

 

 

$

268.2

 

 

$

279.6

 

Basic earnings per share attributable to common

   stockholders

 

$

4.45

 

 

$

0.87

 

 

$

1.05

 

 

$

1.10

 

Diluted earnings per share attributable to common

   stockholders

 

$

4.38

 

 

$

0.86

 

 

$

1.03

 

 

$

1.08

 

 

We computed the interim earnings per common and common equivalent share amounts as if each quarter was a discrete period. As a result, the sum of the basic and diluted earnings per share by quarter will not necessarily total the annual basic and diluted earnings per share.

Consolidated net income in the first quarter of fiscal 2019 financial results by quarter (unaudited) table was decreased by $39.8 million of direct expenses from Hurricane Michael (net of $20.0 million of insurance proceeds) and an estimated $31.4 million of lost production and sales. Additionally, consolidated net income in the first quarter was decreased by $24.7 million of expense for inventory stepped-up in purchase accounting related to the KapStone Acquisition and increased by a $48.5 million gain on sale of our Atlanta beverage facility. Basic and diluted earnings per share attributable to common stockholders were decreased by approximately $0.14 and $0.14 per share, respectively for these items.

Consolidated net income in the fourth quarter of fiscal 2019 financial results by quarter (unaudited) table was increased by $63.4 million related to Hurricane Michael as $70.0 million of insurance proceeds were partially offset by $6.6 million of direct expenses. Basic and diluted earnings per share attributable to common stockholders were increased by approximately $0.19 and $0.18 per share, respectively for these items.

 

Consolidated net income in the first quarter of fiscal 2018 financial results by quarter (unaudited) table was decreased as the result of recording an estimated MEPP withdrawal of $180.0 million, or $179.1 million net of noncontrolling interest, to withdraw from a MEPP. See “Note 5. Retirement Plans — Multiemployer Plans”. Additionally, consolidated net income in the first quarter of fiscal 2018 financial results by quarter (unaudited) table was decreased due to a $27.6 million, or $25.6 million net of noncontrolling interest, pre-tax non-cash impairment of certain mineral rights and real estate. Further, consolidated net income in the first quarter of fiscal 2018 financial results by quarter (unaudited) table was increased by $1,086.9 million for the provisional amount recorded for the remeasurement of our deferred tax balances in connection with the Tax Act. See “Note 6. Income Taxes”. Basic and diluted earnings per share attributable to common stockholders were increased by approximately $3.67 and $3.61 per share, respectively for these items.

Consolidated net income in the second quarter of fiscal 2018 financial results by quarter (unaudited) table increased by $36.3 million related to an adjustment to the provisional amount previously recorded for the remeasurement of our deferred tax balances in connection with the Tax Act. Basic and diluted earnings per share attributable to common stockholders were each increased by $0.14 per share.

 
v3.19.3
Description of Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Sep. 30, 2019
Description Of Business And Summary Of Significant Accounting Policies [Abstract]  
Consolidation

Consolidation

The consolidated financial statements include our accounts and the accounts of our partially-owned consolidated subsidiaries. Equity investments in which we exercise significant influence but do not control and are not the primary beneficiary are accounted for using the equity method. Investments in which we are not able to

 

exercise significant influence over the investee are accounted for under the cost method. Our equity and cost method investments are not significant either individually or in the aggregate. We have eliminated all significant intercompany accounts and transactions. See “Note 7. Segment Information” for our equity method investments.
Reclassifications

Reclassifications

 

We aligned our financial results for all periods presented to align our reportable segments as discussed in “Note 7. Segment Information”, we have accounted for the retrospective adoption of certain accounting standards as discussed in “Note 1. Description of Business and Summary of Significant Accounting Policies – New Accounting Standards - Recently Adopted”, and we have accounted for changes in our Rule 3-10 of Regulation S-X disclosures as outlined in “Note 14. Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors”.

Use of Estimates

Use of Estimates

Preparing consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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.

The most significant accounting estimates inherent in the preparation of our consolidated financial statements include estimates to evaluate the recoverability of goodwill, intangibles and property, plant and equipment, to determine the useful lives of assets that are amortized or depreciated, and to measure income taxes, self-insured obligations, restructuring activities and allocate the purchase price of an acquired business to the fair value of acquired assets and liabilities. In addition, significant estimates form the basis for our reserves with respect to collectability of accounts receivable, inventory valuations, pension benefits, deferred tax asset valuation allowances and certain benefits provided to current and retired employees. Various assumptions and other factors underlie the determination of these significant estimates. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, 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. Additionally, we manufacture certain customized products that have no alternative use to us (since they are made to specific customer orders), 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 increases the contract asset (unbilled receivables) balance with a corresponding reduction in finished goods inventory on our balance sheet.

We net, against our gross sales, provisions for discounts, returns, allowances, customer rebates and other adjustments. Such adjustments are based on historical experience which is consistent with the most likely method as provided in Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification (“ASC”) 606 “Revenue from Contracts with Customers” (“ASC 606”).

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 we report in the consolidated balance sheets for 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 probable 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 sell certain receivables under our A/R Sales Agreement.

We state accounts receivable at the amount owed by the customer, net of an allowance for estimated uncollectible accounts, 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 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. We charge off receivables when they are determined to be no longer collectible. In fiscal 2019, 2018 and 2017 our bad debt expense was not significant.

The following table represents a summary of the changes in the reserve for allowance for doubtful accounts, returns and allowances and cash discounts for fiscal 2019, 2018 and 2017 (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of fiscal year

 

$

49.7

 

 

$

45.8

 

 

$

36.5

 

Reduction in sales and charges to costs and expenses

 

 

259.6

 

 

 

202.8

 

 

 

215.6

 

Deductions

 

 

(256.1

)

 

 

(198.9

)

 

 

(206.3

)

Balance at end of fiscal year

 

$

53.2

 

 

$

49.7

 

 

$

45.8

 

 
Inventories

Inventories

We value the majority of our U.S. inventories at the lower of cost or market, with cost 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 represent primarily foreign inventories, distribution business inventories, spare parts inventories and certain inventoried supplies and aggregate to approximately 39% and 31% of FIFO cost of all inventory at September 30, 2019 and 2018, respectively.

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. Lastly, certain operations calculate a ratio, on a plant by plant basis, the numerator of which is the cost of goods sold and the denominator is net sales. This ratio is applied to the estimated sales value of the finished goods inventory. 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, abnormal production levels, freight, handling costs, and wasted materials (spoilage). Cost includes 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.
Property, Plant and Equipment

Property, Plant and Equipment

We state 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. During fiscal 2019, 2018 and 2017, we capitalized interest of approximately $23.8 million, $8.2 million and $7.0 million, respectively. 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 and Long-Lived Assets

Goodwill and Long-Lived Assets

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 as set forth in ASC 350, “Intangibles — Goodwill and Other.” 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. 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 discounted cash flow method or, as appropriate, a combination of the discounted cash flow method and the guideline public company method.

The goodwill impairment model is a two-step process. ASC 350 allows a qualitative assessment, prior to step one, 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 step one. In step one, 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, inflation, discount rates, exchange rates, tax rates, anticipated synergies and productivity improvements resulting from acquisitions, capital expenditures and continuous improvement projects. The assumptions we use to estimate future cash flows are consistent with the assumptions that the reporting units use for internal planning purposes, updated to reflect current expectations. The guideline public company method involves comparing the reporting unit to similar companies whose stock is freely traded on an organized exchange. The fair values determined by the discounted cash flow and guideline public company methods were weighted to arrive at the concluded fair value of the reporting unit. However, in instances where comparisons to our peers was less meaningful, no weight was 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 would complete step two of the impairment analysis. Step two involves determining the implied fair value of the reporting unit’s goodwill and comparing it to the

carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, we recognize an impairment loss in an amount equal to that excess. While Accounting Standard Update (“ASU 2017-04”), “Simplifying the Test for Goodwill Impairment”, amends the guidance in ASC 350, we have not yet adopted the ASU and do not expect these provisions to have a material impact on our consolidated financial statements.

During the third quarter of fiscal 2019, we tested our goodwill for potential impairment on an interim basis due to changing market conditions, including the impact on the trading price of our Common Stock. All reporting units that have goodwill were noted to have a fair value that exceeded their carrying values as of the interim impairment test date. The discount rate used for each reporting unit ranged from 8.5% to 14.0%. We used perpetual growth rates in the reporting units that have goodwill ranging from 0.0% to 1.0%. Our Consumer Packaging and Victory Packaging reporting units had fair values that exceeded their respective carrying values by less than 10% each, primarily due to the fair value accounting related to the Combination and the MPS Acquisition (for Consumer Packaging) and the KapStone Acquisition (for Victory Packaging). If we had concluded that it was appropriate to increase the discount rate we used by 100 basis points to estimate the fair value of each reporting unit that has goodwill, the fair value of each of our reporting units would have continued to exceed its carrying value, except for the Consumer Packaging reporting unit. The Consumer Packaging and Victory Packaging reporting units had $3,590.6 million and $40.2 million of goodwill, respectively, at September 30, 2019. We reviewed the carrying value of our goodwill at the beginning of the fourth quarter and continually monitored industry economic trends until the end of our fiscal year 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. Currently, we do not believe there is a reasonable likelihood that there will be a material change in future assumptions or estimates we use to calculate impairment losses. However, if actual results are not consistent with our assumptions and estimates, we may be exposed to impairment losses that could be material.

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 amortizing 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.

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 1 to 40 years and have a weighted average life of approximately 15.3 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.

Restructuring and Other Costs

Restructuring and Other Costs

Our restructuring and other costs 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. Identifying and calculating the cost to exit these operations requires certain assumptions to be made, the most significant of which are anticipated future liabilities, including severance costs, leases and other contractual

obligations, and the adjustment of property, plant and equipment to net realizable 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 4. Restructuring and Other Costs” 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 judgements 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 of Financial Instruments and Nonfinancial Assets and Liabilities

Fair Value of Financial Instruments and Nonfinancial Assets and Liabilities

We estimate fair values in accordance with ASC 820, “Fair Value Measurement.” We define 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.

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 13. Debt” and our pension and postretirement assets and liabilities in “Note 5. 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, and our derivative contracts, if any, based on discounted cash flows.

We measure certain nonfinancial assets and nonfinancial liabilities at fair value on a nonrecurring basis. These assets and liabilities include cost and equity method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a merger or an acquisition or in a nonmonetary exchange, and property, plant and equipment and goodwill and other intangible assets that are written down to fair value when they are held for sale or determined to be impaired. Given the nature of nonfinancial 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 12. 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”, 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.

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.

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.

At September 30, 2019, the notional amounts of interest rate and foreign currency exchange contract derivatives were $600.0 million and $351.0 million, respectively. At September 30, 2019, the notional amount of natural gas commodity derivatives was 8.4 MMBtu. The fair value of these derivative instruments was not significant as of September 30, 2019. At September 30, 2018, there were no interest rate or commodity derivatives outstanding, and the notional amount of foreign currency derivatives was $356.0 million. See “Note 13. Debt” for additional information on the foreign currency 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 in accordance with ASU 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes.”

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 determining (i) 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. 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 Tax Act (as hereinafter defined) was signed into law. The Tax Act contained significant changes to corporate taxation, including (i) the reduction of the corporate income tax rate to 21%, (ii) the acceleration of expensing for certain business assets, (iii) the one-time transition tax related to the transition of U.S. international tax from a worldwide tax system to a territorial tax system, (iv) the repeal of the domestic production deduction, (v) additional limitations on the deductibility of interest expense and (vi) expanded limitations on executive compensation. See “Note 6. Income Taxes.”
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 5. 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. As provided under ASC 715, 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 and restricted stock, stock appreciation rights (“SAR” or “SARs”) and restricted stock units to employees and our 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 restricted stock grants to employees 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 under the plan to earnings over each increment’s individual vesting period. See “Note 21. 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 will recognize a gain or loss for any difference between the settlement amount and the liability recorded. Asset retirement obligations with indeterminate settlement dates are not recorded until such time that a reasonable estimate may be made. Our asset retirement obligations consist primarily of landfill closure and post-closure costs at certain of our mills. At September 30, 2019 and September 30, 2018, we had recorded liabilities of $72.5 million and $72.9 million, respectively. The liabilities are primarily reflected as other long-term liabilities on the consolidated balance sheets.
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 twelve to twenty-four 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, 2019 and 2018 were $124.3 million and $83.4 million, respectively. The assets are recorded as other assets on the consolidated balance sheets. The increase in fiscal 2019 was primarily due to the acquired KapStone mills, as well as the varied timing and scope of outages.
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 income. We recorded a gain on foreign currency transactions of $18.5 million, $12.2 million and $4.3 in fiscal 2019, 2018 and 2017, 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 the remedial feasibility study and 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 18. Commitments and Contingencies.”
New Accounting Standards

New Accounting Standards - Recently Adopted

 

During fiscal 2019, we filed with the SEC a Current Report on Form 8-K to provide revisions to our consolidated financial statements, and the notes thereto for the three years ended September 30, 2018 and other related disclosures, including the retrospective adoption of certain accounting standards for all periods therein, including, but not limited to, ASU 2017-07 “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments” (which amends the guidance in ASC 230, “Statement of Cash Flows”) and ASU 2016-18 “Restricted Cash” (which amends the guidance in the ASC 230, “Statement of Cash Flows”). See “Note 1. Description of Business and Summary of Significant Accounting Policies — New Accounting Standards - Recently Adopted” of the Notes to Consolidated Financial Statements section in Exhibit 99.1 of the May 9, 2019 Form 8-K for information on new accounting standards adopted on October 1, 2018 on a retrospective basis for all periods therein.

 

In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The amendments in this update provide financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in the period of adoption or retrospectively in each period in which the effect of the change in the U.S. federal corporate income tax rate in the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) (or portion thereof) is recorded. This ASU requires financial statement preparers to disclose (i) a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income; (ii) whether they elect to reclassify the stranded income tax effects from the Tax Act; and (iii) information about the other income tax effects that are reclassified. The amendments affect any organization that is required to apply the provisions of ASC 220, “Income Statement – Reporting Comprehensive Income”, and has items of other comprehensive income in which the related tax effects are included as required by GAAP. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We adopted the provisions of this ASU for fiscal 2020 on October 1, 2019 and we estimate that the reclassification of stranded tax effects from accumulated other comprehensive income to retained earnings to be approximately $70 to $75 million.

 

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this ASU also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. In October 2018, the FASB issued ASU 2018-16 “Derivatives and Hedging: Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a

Benchmark Interest Rate for Hedge Accounting” (“ASU 2018-16”), which adds the overnight index rate based on the Secured Overnight Financing Rate to the list of U.S. benchmark interest rates in ASC 815 that are eligible to be hedged. In April 2019, the FASB issued ASU 2019-04 “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”), which addresses targeted issues related to fair value hedges and clarifies certain transition requirements. The provisions of ASU 2017-12, ASU 2018-16 and ASU 2019-04 are concurrently effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and should be applied prospectively. We early adopted the provisions of ASU 2017-12, ASU 2018-16 and ASU 2019-04 in the fourth quarter of fiscal 2019. These provisions did not have a material impact on our consolidated financial statements.

 

In February 2016, the FASB issued ASU 2016-02 “Leases”, which is codified in ASC 842 “Leases” (“ASC 842”) and supersedes current lease guidance in ASC 840 “Leases”. These provisions require lessees to put a right-of-use asset and lease liability on their balance sheet for operating and financing leases that have a term of more than one year. Expense will be recognized in the income statement similar to current accounting guidance. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. Entities will need to disclose qualitative and quantitative information about their leases, including characteristics and amounts recognized in the financial statements. These provisions are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Prior to the FASB issuing ASU 2018-11 “Leases”, entities were required to use a modified retrospective approach upon adoption to recognize and measure leases at the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU 2018-11, which provides entities the option to initially apply ASU 2016-02 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the comparative periods presented in the financial statements would continue to be in accordance with current GAAP. In December 2018, the FASB issued ASU 2018-20 “Leases: Narrow-scope Improvements for Lessors” to help lessors apply ASC 842. This ASU allows lessors to make an accounting policy election not to evaluate sales taxes and other similar taxes collected from lessees, requires lessors to exclude from variable payments certain lessor costs paid directly by lessee to third parties on the lessor’s behalf and provides clarification on variable payments allocated to lease and non-lease components. In March 2019, the FASB issued ASU 2019-01 “Leases (Topic 842): Codification Improvements”, which (a) provides guidance on lessors’ accounting for acquisition costs that will now generally be included in the measurement of fair value of the underlying asset, (b) clarifies that lessors in scope of ASC 942, “Financial Services—Depository and Lending” (“ASC 942”), have to follow cash flow presentation guidance under ASC 942 for payments received by lessors and (c) provides an exemption to all companies from interim transition disclosure requirements of ASC 250 “Accounting Changes and Error Corrections” (“ASC 250”), in addition to the already exempted annual disclosure requirement of ASC 250. ASU 2019-01 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years; however, companies are permitted to early adopt ASU 2019-01 concurrent with, or any time after the adoption of, ASC 842.

 

We adopted the provisions of ASC 842 for fiscal 2020 on October 1, 2019, using the modified retrospective approach and as a result will not restate prior periods. We have also elected the package of three practical expedients permitted within the standard pursuant to which we will not reassess initial direct costs, lease classification or whether our contracts contain or are leases. We have also made an accounting policy election to not recognize right-of-use assets 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 are reasonably certain to be exercised. Upon adoption, we estimate to recognize a right-of-use asset of approximately $730 million to $760 million with its corresponding lease liability representing the present value of the remaining minimum rental payments relating to leases currently classified as operating leases. The adoption of ASC 842 does not have a significant impact on the recognition, measurement, or presentation of lease expenses within the consolidated statements of income or the consolidated statements of cash flows. We have also identified and implemented changes to our accounting policies and practices, business processes, systems and designed and implemented specific controls over our evaluation of the impact of the new standard and related guidance on us upon adoption, and on an ongoing basis, including disclosure requirements and the collection of relevant data into the reporting process. While we have substantially completed the process of quantifying the impacts that will result from applying the new standard, our assessment will be finalized during the first quarter of fiscal 2020.

New Accounting Standards - Recently Issued

 

In October 2018, the FASB issued ASU 2018-18 “Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606”, which provides targeted amendments to ASC 808, “Collaborative

arrangements” (“ASC 808”) and ASC 606. The amendments in this ASU require transactions between participants in a collaborative arrangement to be accounted for under ASC 606 when the counterparty is a customer. This ASU precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. This ASU also amends ASC 808 to refer to the unit-of-account guidance in ASC 606 and requires it to be used only when assessing whether a transaction is in scope of ASC 606. This ASU is effective for fiscal years ending after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this ASU.

 

In October 2018, the FASB issued ASU 2018-17 “Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities.” This ASU changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportionate basis, rather than in their entirety, as currently required under GAAP. This ASU is effective for fiscal years ending after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this ASU.

 

In August 2018, the FASB issued ASU 2018-15 “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. The provisions may be adopted prospectively or retrospectively. This ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of this ASU.

 

In August 2018, the FASB issued ASU 2018-14 “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans”. The amendments in this ASU modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant. These provisions will be applied retrospectively. This ASU is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact of this ASU.

 

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments – Credit losses: Measurement of Credit Losses on financial Instruments (Topic 326)” (“ASU 2016-13”), which modifies the measurement of expected credit losses of certain financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and will be applied as a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period for which the guidance is effective. In April 2019, the FASB issued ASU 2019-04 which addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. In May 2019, the FASB issued ASU 2019-05 “Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief” (“ASU 2019-05”), which provides targeted transition relief allowing entities to make an irrevocable one-time election upon adoption of the new credit losses standard to measure financial assets previously measured at amortized cost (except held-to-maturity securities) using the fair value option. The provisions of ASU 2019-04 related to Topic 326 and ASU 2019-05 are effective concurrent with the adoption of ASU 2016-13. We are currently evaluating the impact of these ASUs and do not expect these provisions to have a material impact on our consolidated financial statements.
v3.19.3
Description of Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Sep. 30, 2019
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 doubtful accounts, returns and allowances and cash discounts for fiscal 2019, 2018 and 2017 (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of fiscal year

 

$

49.7

 

 

$

45.8

 

 

$

36.5

 

Reduction in sales and charges to costs and expenses

 

 

259.6

 

 

 

202.8

 

 

 

215.6

 

Deductions

 

 

(256.1

)

 

 

(198.9

)

 

 

(206.3

)

Balance at end of fiscal year

 

$

53.2

 

 

$

49.7

 

 

$

45.8

 

 
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

 
v3.19.3
Revenue Recognition (Tables)
 12 Months Ended
Sep. 30, 2019
Disaggregation Of Revenue [Line Items]  
Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment) The table below disaggregates our revenue by geographical market and product type (segment).

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Land and Development

 

 

Intersegment Sales

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Geographical Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

11,314.7

 

 

$

5,166.6

 

 

$

23.4

 

 

$

(155.5

)

 

$

16,349.2

 

South America

 

 

437.2

 

 

 

73.2

 

 

 

—

 

 

 

—

 

 

 

510.4

 

Europe

 

 

1.6

 

 

 

1,064.7

 

 

 

—

 

 

 

(0.1

)

 

 

1,066.2

 

Asia Pacific

 

 

63.2

 

 

 

301.5

 

 

 

—

 

 

 

(1.5

)

 

 

363.2

 

Total (1)

 

$

11,816.7

 

 

$

6,606.0

 

 

$

23.4

 

 

$

(157.1

)

 

$

18,289.0

 

 

(1)

Net sales are attributed to geographical markets based on the location of the seller.
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 aggregated within Other current assets and Other current liabilities, respectively, on the consolidated balance sheet.

(In millions)

 

Contract Assets

(Short-Term)

 

 

Contract Liabilities

(Short-Term)

 

 

 

 

 

 

 

 

 

 

Beginning balance - October 1, 2018

 

$

183.7

 

 

$

7.9

 

Impact of acquisition

 

 

13.0

 

 

 

—

 

Ending balance - September 30, 2019

 

 

188.0

 

 

 

7.7

 

(Decrease) / increase

 

$

(8.7

)

 

$

(0.2

)

 
ASC 606 [Member]  
Disaggregation Of Revenue [Line Items]  
Summary of Effect of Adoption of ASC 606 Impact on Consolidated Financial Statements The adoption of ASC 606 had the following impact on our consolidated financial statements:

 

Consolidated Statements of Income

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

As Reported

 

 

Balances Without Adoption of ASC 606

 

 

Impact of Adoption Increase/(Decrease)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

18,289.0

 

 

$

18,297.7

 

 

$

(8.7

)

Cost of goods sold

 

$

14,540.0

 

 

$

14,555.4

 

 

$

(15.4

)

Income tax expense

 

$

(276.8

)

 

$

(275.2

)

 

$

(1.6

)

Consolidated net income

 

$

867.9

 

 

$

862.8

 

 

$

5.1

 

 

 

Consolidated Balance Sheet

 

 

 

September 30, 2019

 

(In millions)

 

As Reported

 

 

Balances Without Adoption of ASC 606

 

 

Impact of Adoption Increase/(Decrease)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

 

$

2,107.5

 

 

$

2,237.3

 

 

$

(129.8

)

Other current assets

 

$

496.2

 

 

$

308.2

 

 

$

188.0

 

Other current liabilities

 

$

571.8

 

 

$

570.2

 

 

$

1.6

 

Retained earnings

 

$

1,997.1

 

 

$

1,948.5

 

 

$

48.6

 

 

Consolidated Statement of Cash Flows

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

As Reported

 

 

Balances Without Adoption of ASC 606

 

 

Impact of Adoption Increase/(Decrease)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

867.9

 

 

$

862.8

 

 

$

5.1

 

Other assets

 

$

(124.6

)

 

$

(133.3

)

 

$

8.7

 

Inventories

 

$

(110.5

)

 

$

(95.1

)

 

$

(15.4

)

Income taxes

 

$

7.2

 

 

$

5.6

 

 

$

1.6

 

 
v3.19.3
Acquisitions and Investment (Tables)
 12 Months Ended
Sep. 30, 2019
KapStone Acquisition [Member]  
Acquired Finite Lived Intangible Assets [Line Items]  
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 fair values of the assets acquired and liabilities assumed by major class of assets and liabilities as of the acquisition date, as well as adjustments made during fiscal 2019 (referred to as “measurement period adjustments”) (in millions):

 

 

Amounts Recognized as of the Acquisition Date

 

 

Measurement Period Adjustments (1)

 

 

Amounts Recognized as of Acquisition Date (as Adjusted) (2)

 

Cash and cash equivalents

 

$

8.6

 

 

$

—

 

 

$

8.6

 

Current assets, excluding cash and cash equivalents

 

 

878.9

 

 

 

(18.7

)

 

 

860.2

 

Property, plant and equipment, net

 

 

1,910.3

 

 

 

11.5

 

 

 

1,921.8

 

Goodwill

 

 

1,755.0

 

 

 

(13.8

)

 

 

1,741.2

 

Intangible assets

 

 

1,336.1

 

 

 

30.3

 

 

 

1,366.4

 

Other long-term assets

 

 

27.9

 

 

 

(0.1

)

 

 

27.8

 

Total assets acquired

 

 

5,916.8

 

 

 

9.2

 

 

 

5,926.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of debt

 

 

33.3

 

 

 

—

 

 

 

33.3

 

Current liabilities

 

 

337.5

 

 

 

7.6

 

 

 

345.1

 

Long-term debt due after one year

 

 

1,333.4

 

 

 

—

 

 

 

1,333.4

 

Accrued pension and other long-term benefits

 

 

9.8

 

 

 

2.1

 

 

 

11.9

 

Deferred income taxes

 

 

609.7

 

 

 

(2.9

)

 

 

606.8

 

Other long-term liabilities

 

 

118.4

 

 

 

2.4

 

 

 

120.8

 

Total liabilities assumed

 

 

2,442.1

 

 

 

9.2

 

 

 

2,451.3

 

Net assets acquired

 

$

3,474.7

 

 

$

—

 

 

$

3,474.7

 

 

(1)

The measurement period adjustments recorded in fiscal 2019 did not have a significant impact on our consolidated statements of income for the year ended September 30, 2019.

 

(2)

The measurement period adjustments were primarily due to refinements to third party appraisals and carrying amounts of certain assets and liabilities, as well as adjustments to certain tax accounts based on, among other things, adjustments to deferred tax liabilities. The net impact of the measurement period adjustments resulted in a net decrease to goodwill.
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The following table summarizes the weighted average life and the fair value of intangible assets recognized in the KapStone Acquisition, excluding goodwill (in millions):

 

 

Weighted Avg.

Life

 

 

Amounts Recognized

as of the

Acquisition Date

 

Customer relationships

 

 

11.7

 

 

$

1,303.0

 

Trademarks and tradenames

 

 

16.9

 

 

 

54.2

 

Favorable contracts

 

 

6.0

 

 

 

9.2

 

Total

 

 

11.9

 

 

$

1,366.4

 
MPS [Member]  
Acquired Finite Lived Intangible Assets [Line Items]  
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The following table summarizes the weighted average life and the allocation to intangible assets recognized in the MPS Acquisition, excluding goodwill (in millions):

 

 

 

Weighted Avg.

Life

 

 

Amounts

Recognized as of

the Acquisition

Date

 

Customer relationships

 

 

14.6

 

 

$

1,008.7

 

Trademarks and tradenames

 

 

3.0

 

 

 

15.2

 

Patents

 

 

10.0

 

 

 

2.5

 

Total

 

 

14.4

 

 

$

1,026.4

 
v3.19.3
Restructuring and Other Costs (Tables)
 12 Months Ended
Sep. 30, 2019
Restructuring And Other Costs [Abstract]  
Schedule of Restructuring and Other Costs

The following table summarizes our Restructuring and other costs for fiscal 2019, 2018 and 2017 (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Restructuring

 

$

111.0

 

 

$

39.5

 

 

$

113.4

 

Other

 

 

62.7

 

 

 

65.9

 

 

 

83.3

 

Restructuring and Other Costs

 

$

173.7

 

 

$

105.4

 

 

$

196.7

 
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 initiative, and our estimate of the total we expect to incur (in millions):

 

 

2019

 

 

2018

 

 

2017

 

 

Cumulative

 

 

Total

Expected

 

Corrugated Packaging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

32.1

 

 

$

2.9

 

 

$

1.5

 

 

$

230.1

 

 

$

230.1

 

Severance and other employee costs

 

 

16.9

 

 

 

1.9

 

 

 

5.8

 

 

 

59.3

 

 

 

59.4

 

Equipment and inventory relocation costs

 

 

4.8

 

 

 

3.4

 

 

 

2.2

 

 

 

12.5

 

 

 

14.2

 

Facility carrying costs

 

 

3.9

 

 

 

3.3

 

 

 

5.4

 

 

 

32.7

 

 

 

33.8

 

Other costs

 

 

1.2

 

 

 

0.1

 

 

 

(1.1

)

 

 

14.5

 

 

 

21.2

 

Restructuring total

 

$

58.9

 

 

$

11.6

 

 

$

13.8

 

 

$

349.1

 

 

$

358.7

 

Consumer Packaging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

0.5

 

 

$

6.8

 

 

$

28.2

 

 

$

40.4

 

 

$

40.4

 

Severance and other employee costs

 

 

6.0

 

 

 

6.9

 

 

 

23.9

 

 

 

39.4

 

 

 

39.4

 

Equipment and inventory relocation costs

 

 

1.0

 

 

 

2.4

 

 

 

2.5

 

 

 

6.3

 

 

 

6.3

 

Facility carrying costs

 

 

0.2

 

 

 

0.9

 

 

 

0.7

 

 

 

2.2

 

 

 

2.2

 

Other costs (1)

 

 

4.3

 

 

 

2.0

 

 

 

20.1

 

 

 

26.4

 

 

 

26.4

 

Restructuring total

 

$

12.0

 

 

$

19.0

 

 

$

75.4

 

 

$

114.7

 

 

$

114.7

 

Land and Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

—

 

 

$

—

 

 

$

1.8

 

 

$

1.8

 

 

$

1.8

 

Severance and other employee costs

 

 

0.1

 

 

 

0.3

 

 

 

2.8

 

 

 

13.8

 

 

 

13.8

 

Other costs

 

 

—

 

 

 

3.0

 

 

 

—

 

 

 

3.0

 

 

 

3.0

 

Restructuring total

 

$

0.1

 

 

$

3.3

 

 

$

4.6

 

 

$

18.6

 

 

$

18.6

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

—

 

 

$

—

 

 

$

0.1

 

 

$

1.4

 

 

$

1.4

 

Severance and other employee costs

 

 

37.5

 

 

 

0.8

 

 

 

14.8

 

 

 

138.2

 

 

 

138.2

 

Other costs

 

 

2.5

 

 

 

4.8

 

 

 

4.7

 

 

 

18.1

 

 

 

18.1

 

Restructuring total

 

$

40.0

 

 

$

5.6

 

 

$

19.6

 

 

$

157.7

 

 

$

157.7

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

32.6

 

 

$

9.7

 

 

$

31.6

 

 

$

273.7

 

 

$

273.7

 

Severance and other employee costs

 

 

60.5

 

 

 

9.9

 

 

 

47.3

 

 

 

250.7

 

 

 

250.8

 

Equipment and inventory relocation costs

 

 

5.8

 

 

 

5.8

 

 

 

4.7

 

 

 

18.8

 

 

 

20.5

 

Facility carrying costs

 

 

4.1

 

 

 

4.2

 

 

 

6.1

 

 

 

34.9

 

 

 

36.0

 

Other costs

 

 

8.0

 

 

 

9.9

 

 

 

23.7

 

 

 

62.0

 

 

 

68.7

 

Restructuring total

 

$

111.0

 

 

$

39.5

 

 

$

113.4

 

 

$

640.1

 

 

$

649.7

 

 

 

(1)

Includes a $17.6 million impairment of a customer relationship intangible in fiscal 2017 related to an exited product line.
Schedule of Acquisition, Divestiture and Integration Costs

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

 

 

 

2019

 

 

2018

 

 

2017

 

Acquisition costs

 

$

28.2

 

 

$

38.2

 

 

$

27.1

 

Integration costs

 

 

34.3

 

 

 

27.4

 

 

 

46.4

 

Divestiture costs

 

 

0.2

 

 

 

0.3

 

 

 

9.8

 

Other total

 

$

62.7

 

 

$

65.9

 

 

$

83.3

 
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 lease commitments, accrued severance and other employee costs, and a reconciliation of the restructuring accrual charges to the line item “Restructuring and other costs” on our consolidated statements of income for the last three fiscal years (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Accrual at beginning of fiscal year

 

$

31.6

 

 

$

47.4

 

 

$

44.8

 

Accruals acquired in acquisition

 

 

—

 

 

 

—

 

 

 

3.5

 

Additional accruals

 

 

60.0

 

 

 

16.5

 

 

 

63.2

 

Payments

 

 

(55.9

)

 

 

(29.8

)

 

 

(53.3

)

Adjustment to accruals

 

 

(3.2

)

 

 

(1.0

)

 

 

(10.8

)

Foreign currency rate changes

 

 

(0.2

)

 

 

(1.5

)

 

 

—

 

Accrual at end of fiscal year

 

$

32.3

 

 

$

31.6

 

 

$

47.4

 

 

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

 

 

 

2019

 

 

2018

 

 

2017

 

Additional accruals and adjustments to accruals

   (see table above)

 

$

56.8

 

 

$

15.5

 

 

$

52.4

 

Acquisition costs

 

 

28.2

 

 

 

38.2

 

 

 

27.1

 

Integration costs

 

 

34.3

 

 

 

22.0

 

 

 

41.2

 

Divestiture costs

 

 

0.2

 

 

 

0.3

 

 

 

9.8

 

Net property, plant and equipment

 

 

32.6

 

 

 

9.7

 

 

 

31.6

 

Severance and other employee costs

 

 

6.8

 

 

 

1.3

 

 

 

3.8

 

Equipment and inventory relocation costs

 

 

5.8

 

 

 

5.8

 

 

 

4.7

 

Facility carrying costs

 

 

4.1

 

 

 

4.2

 

 

 

6.1

 

Other costs

 

 

4.9

 

 

 

8.4

 

 

 

20.0

 

Total restructuring and other costs, net

 

$

173.7

 

 

$

105.4

 

 

$

196.7

 
v3.19.3
Retirement Plans (Tables)
 12 Months Ended
Sep. 30, 2019
Retirement Plans [Abstract]  
Schedule of Allocation of Plan Assets

Target Allocations

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Equity investments

 

 

15

%

 

 

15

%

 

 

20

%

 

 

22

%

Fixed income investments

 

 

75

%

 

 

75

%

 

 

72

%

 

 

70

%

Short-term investments

 

 

1

%

 

 

1

%

 

 

1

%

 

 

1

%

Other investments

 

 

9

%

 

 

9

%

 

 

7

%

 

 

7

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

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

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Equity investments

 

 

13

%

 

 

14

%

 

 

22

%

 

 

23

%

Fixed income investments

 

 

70

%

 

 

73

%

 

 

71

%

 

 

69

%

Short-term investments

 

 

9

%

 

 

3

%

 

 

2

%

 

 

2

%

Other investments

 

 

8

%

 

 

10

%

 

 

5

%

 

 

6

%

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

 

 

 

2019

 

 

2018

 

 

 

U.S. Plans

 

 

Non-U.S.

Plans

 

 

U.S. Plans

 

 

Non-U.S.

Plans

 

Discount rate

 

 

3.35

%

 

 

2.42

%

 

 

4.50

%

 

 

3.42

%

Rate of compensation increase

 

 

3.00

%

 

 

2.65

%

 

 

3.00

%

 

 

2.67

%

 

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

 

 

 

Pension Plans

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

Discount rate

 

 

4.50

%

 

 

3.42

%

 

 

4.09

%

 

 

3.26

%

 

 

4.30

%

 

 

3.08

%

Rate of compensation increase

 

 

3.00

%

 

 

2.67

%

 

 

3.00

%

 

 

2.65

%

 

 

3.00

%

 

 

3.09

%

Expected long-term rate of return on

   plan assets

 

 

6.50

%

 

 

4.69

%

 

 

6.50

%

 

 

4.98

%

 

 

6.50

%

 

 

6.03

%

 

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

 

 

 

Postretirement plans

 

 

 

2019

 

 

2018

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Discount rate

 

 

3.34

%

 

 

5.64

%

 

 

4.50

%

 

 

6.61

%

 

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

 

 

 

Postretirement Plans

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

 

U.S.

Plans

 

 

Non-U.S.

Plans

 

Discount rate

 

 

4.50

%

 

 

6.61

%

 

 

4.09

%

 

 

6.51

%

 

 

4.04

%

 

 

6.64

%

Rate of compensation increase

 

N/A

 

 

N/A

 

 

N/A

 

 

 

7.37

%

 

N/A

 

 

 

3.14

%

 
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

 

 

 

2019

 

 

2018

 

 

 

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

 

$

3,783.5

 

 

$

1,340.2

 

 

$

3,941.9

 

 

$

1,502.2

 

Service cost

 

 

36.0

 

 

 

6.8

 

 

 

36.7

 

 

 

8.0

 

Interest cost

 

 

189.2

 

 

 

43.4

 

 

 

157.7

 

 

 

46.9

 

Amendments

 

 

0.4

 

 

 

3.1

 

 

 

9.3

 

 

 

—

 

Actuarial loss (gain)

 

 

694.4

 

 

 

181.0

 

 

 

(186.8

)

 

 

(90.3

)

Plan participant contributions

 

 

—

 

 

 

2.2

 

 

 

—

 

 

 

2.5

 

Benefits paid

 

 

(216.8

)

 

 

(78.3

)

 

 

(175.3

)

 

 

(82.8

)

Business combinations

 

 

561.2

 

 

 

0.7

 

 

 

—

 

 

 

3.5

 

Curtailments

 

 

1.0

 

 

 

—

 

 

 

—

 

 

 

(0.7

)

Settlements

 

 

—

 

 

 

(1.7

)

 

 

—

 

 

 

(5.5

)

Foreign currency rate changes

 

 

—

 

 

 

(54.3

)

 

 

—

 

 

 

(43.6

)

Benefit obligation at end of fiscal year

 

$

5,048.9

 

 

$

1,443.1

 

 

$

3,783.5

 

 

$

1,340.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of fiscal year

 

$

3,921.2

 

 

$

1,350.2

 

 

$

4,107.9

 

 

$

1,414.7

 

Actual gain (loss) on plan assets

 

 

731.7

 

 

 

172.9

 

 

 

(24.9

)

 

 

39.9

 

Employer contributions

 

 

13.0

 

 

 

12.1

 

 

 

13.5

 

 

 

24.2

 

Plan participant contributions

 

 

—

 

 

 

2.2

 

 

 

—

 

 

 

2.5

 

Benefits paid

 

 

(216.8

)

 

 

(78.3

)

 

 

(175.3

)

 

 

(82.8

)

Business combinations

 

 

556.2

 

 

 

—

 

 

 

—

 

 

 

0.7

 

Settlements

 

 

—

 

 

 

(1.7

)

 

 

—

 

 

 

(5.5

)

Foreign currency rate changes

 

 

—

 

 

 

(56.5

)

 

 

—

 

 

 

(43.5

)

Fair value of plan assets at end of fiscal year

 

$

5,005.3

 

 

$

1,400.9

 

 

$

3,921.2

 

 

$

1,350.2

 

Funded status

 

$

(43.6

)

 

$

(42.2

)

 

$

137.7

 

 

$

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid pension asset

 

$

143.3

 

 

$

81.4

 

 

$

305.7

 

 

$

114.3

 

Other current liabilities

 

 

(14.6

)

 

 

(1.9

)

 

 

(10.1

)

 

 

(0.9

)

Pension liabilities, net of current portion

 

 

(172.3

)

 

 

(121.7

)

 

 

(157.9

)

 

 

(103.4

)

(Under) over funded status at end of fiscal year

 

$

(43.6

)

 

$

(42.2

)

 

$

137.7

 

 

$

10.0

 

 

 

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

 

 

 

2019

 

 

2018

 

Change in projected benefit obligation:

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Benefit obligation at beginning of fiscal year

 

$

91.0

 

 

$

55.5

 

 

$

98.1

 

 

$

68.1

 

Service cost

 

 

0.7

 

 

 

0.5

 

 

 

0.7

 

 

 

0.8

 

Interest cost

 

 

4.1

 

 

 

3.6

 

 

 

3.9

 

 

 

4.0

 

Amendments

 

 

0.4

 

 

 

—

 

 

 

(1.4

)

 

 

—

 

Actuarial loss (gain)

 

 

1.6

 

 

 

22.2

 

 

 

(2.5

)

 

 

(5.2

)

Benefits paid

 

 

(6.6

)

 

 

(2.9

)

 

 

(7.8

)

 

 

(2.6

)

Business combinations

 

 

7.1

 

 

 

—

 

 

 

—

 

 

 

—

 

Curtailments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.1

)

Foreign currency rate changes

 

 

—

 

 

 

(3.2

)

 

 

—

 

 

 

(7.5

)

Benefit obligation at end of fiscal year

 

$

98.3

 

 

$

75.7

 

 

$

91.0

 

 

$

55.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of fiscal year

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Employer contributions

 

 

6.6

 

 

 

2.9

 

 

 

7.8

 

 

 

2.6

 

Plan participant contributions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Benefits paid

 

 

(6.6

)

 

 

(2.9

)

 

 

(7.8

)

 

 

(2.6

)

Fair value of plan assets at end of fiscal year

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Funded Status

 

$

(98.3

)

 

$

(75.7

)

 

$

(91.0

)

 

$

(55.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

(8.9

)

 

$

(3.0

)

 

$

(8.8

)

 

$

(2.9

)

Postretirement benefit liabilities, net of current portion

 

 

(89.4

)

 

 

(72.7

)

 

 

(82.2

)

 

 

(52.6

)

Under funded status at end of fiscal year

 

$

(98.3

)

 

$

(75.7

)

 

$

(91.0

)

 

$

(55.5

)

 
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

 

 

 

2019

 

 

2018

 

 

 

U.S. Plans

 

 

Non-U.S.

Plans

 

 

U.S. Plans

 

 

Non-U.S.

Plans

 

Net actuarial loss

 

$

854.7

 

 

$

168.8

 

 

$

631.2

 

 

$

105.6

 

Prior service cost

 

 

27.6

 

 

 

3.4

 

 

 

32.3

 

 

 

0.3

 

Total accumulated other comprehensive loss

 

$

882.3

 

 

$

172.2

 

 

$

663.5

 

 

$

105.9

 

 

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

 

 

 

2019

 

 

2018

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Net actuarial (gain) loss

 

$

(8.0

)

 

$

18.8

 

 

$

(11.2

)

 

$

(3.8

)

Prior service credit

 

 

(8.3

)

 

 

(0.9

)

 

 

(11.3

)

 

 

(1.0

)

Total accumulated other comprehensive (income) loss

 

$

(16.3

)

 

$

17.9

 

 

$

(22.5

)

 

$

(4.8

)

 
Schedule of Amounts Recognized in Other Comprehensive Loss (Income)

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

 

 

 

Pension Plans

 

 

 

2019

 

 

2018

 

 

2017

 

Net actuarial loss (gain) arising during period

 

$

312.0

 

 

$

38.7

 

 

$

(48.8

)

Amortization and settlement recognition of net actuarial loss

 

 

(25.3

)

 

 

(20.6

)

 

 

(57.7

)

Prior service cost arising during period

 

 

3.5

 

 

 

9.3

 

 

 

3.4

 

Amortization of prior service cost

 

 

(5.2

)

 

 

(4.7

)

 

 

(4.1

)

Net other comprehensive loss (income) recognized

 

$

285.0

 

 

$

22.7

 

 

$

(107.2

)

 

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

 

 

 

Postretirement Plans

 

 

 

2019

 

 

2018

 

 

2017

 

Net actuarial loss (gain) arising during period

 

$

23.9

 

 

$

(9.7

)

 

$

14.7

 

Amortization and settlement recognition of net actuarial

   gain (loss)

 

 

2.0

 

 

 

(0.3

)

 

 

1.3

 

Prior service cost (credit) arising during period

 

 

0.4

 

 

 

(1.5

)

 

 

(4.4

)

Amortization or curtailment recognition of prior service credit

 

 

2.8

 

 

 

4.4

 

 

 

4.5

 

Net other comprehensive loss (income) recognized

 

$

29.1

 

 

$

(7.1

)

 

$

16.1

 

 
Schedule of Net Periodic Pension Cost

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

 

 

 

Pension Plans

 

 

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

42.8

 

 

$

44.8

 

 

$

45.1

 

Interest cost

 

 

232.6

 

 

 

204.6

 

 

 

197.8

 

Expected return on plan assets

 

 

(340.2

)

 

 

(328.4

)

 

 

(313.1

)

Amortization of net actuarial loss

 

 

24.5

 

 

 

21.2

 

 

 

25.4

 

Amortization of prior service cost

 

 

5.2

 

 

 

4.7

 

 

 

4.1

 

Curtailment loss (gain)

 

 

1.0

 

 

 

(0.6

)

 

 

—

 

Settlement (gain) loss

 

 

(0.2

)

 

 

(0.5

)

 

 

32.7

 

Special termination benefits

 

 

—

 

 

 

—

 

 

 

12.5

 

Company defined benefit plan (income) expense

 

 

(34.3

)

 

 

(54.2

)

 

 

4.5

 

Multiemployer and other plans

 

 

1.4

 

 

 

1.4

 

 

 

4.7

 

Net pension (income) cost

 

$

(32.9

)

 

$

(52.8

)

 

$

9.2

 

 

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

 

 

 

Postretirement Plans

 

 

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

1.2

 

 

$

1.5

 

 

$

0.9

 

Interest cost

 

 

7.7

 

 

 

7.9

 

 

 

7.4

 

Amortization of net actuarial (gain) loss

 

 

(2.0

)

 

 

0.3

 

 

 

(1.3

)

Amortization of prior service credit

 

 

(2.8

)

 

 

(4.4

)

 

 

(4.5

)

Curtailment gain

 

 

—

 

 

 

(0.1

)

 

 

(0.3

)

Net postretirement cost

 

$

4.1

 

 

$

5.2

 

 

$

2.2

 

 
Schedule of Estimated Losses (Gains) Amortized from Accumulated Other Comprehensive Loss into Net Periodic Benefit Cost

The estimated losses that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal 2020 are as follows (in millions):

 

 

 

Pension Plans

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Actuarial loss

 

$

38.5

 

 

$

8.9

 

Prior service cost

 

 

5.2

 

 

 

0.3

 

Total

 

$

43.7

 

 

$

9.2

 

 

The estimated gains that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal 2020 are as follows (in millions):

 

 

 

Postretirement Plans

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Actuarial gain

 

$

(1.4

)

 

$

(0.7

)

Prior service credit

 

 

(2.6

)

 

 

0.2

 

Total

 

$

(4.0

)

 

$

(0.5

)

 
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 2020

 

$

253.1

 

 

$

75.9

 

Fiscal 2021

 

$

262.3

 

 

$

74.5

 

Fiscal 2022

 

$

266.5

 

 

$

74.6

 

Fiscal 2023

 

$

273.3

 

 

$

74.8

 

Fiscal 2024

 

$

268.8

 

 

$

74.3

 

Fiscal Years 2025 – 2029

 

$

1,405.3

 

 

$

369.0

 

 

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 2020

 

$

9.4

 

 

$

2.9

 

Fiscal 2021

 

$

8.2

 

 

$

3.0

 

Fiscal 2022

 

$

7.8

 

 

$

3.1

 

Fiscal 2023

 

$

7.4

 

 

$

3.2

 

Fiscal 2024

 

$

7.0

 

 

$

3.3

 

Fiscal Years 2025 – 2029

 

$

30.8

 

 

$

17.8

 

 
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, 2019 (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)

 

$

184.2

 

 

$

183.5

 

 

$

0.7

 

Non-U.S. equities (1)

 

 

6.5

 

 

 

6.5

 

 

 

—

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities (2)

 

 

598.2

 

 

 

—

 

 

 

598.2

 

Non-U.S. government securities (3)

 

 

125.6

 

 

 

0.2

 

 

 

125.4

 

U.S. corporate bonds (3)

 

 

2,156.0

 

 

 

137.6

 

 

 

2,018.4

 

Non-U.S. corporate bonds (3)

 

 

432.9

 

 

 

5.7

 

 

 

427.2

 

Other fixed income (4)

 

 

379.3

 

 

 

10.8

 

 

 

368.5

 

Short-term investments (5)

 

 

468.7

 

 

 

468.7

 

 

 

—

 

Benefit plan assets measured in the fair value hierarchy

 

$

4,351.4

 

 

$

813.0

 

 

$

3,538.4

 

Assets measured at NAV (6)

 

 

2,054.8

 

 

 

 

 

 

 

 

 

Total benefit plan assets

 

$

6,406.2

 

 

 

 

 

 

 

 

 

 

The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2018 (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)

 

$

165.5

 

 

$

165.5

 

 

$

—

 

Non-U.S. equities (1)

 

 

8.2

 

 

 

8.2

 

 

 

—

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities (2)

 

 

435.8

 

 

 

—

 

 

 

435.8

 

Non-U.S. government securities (3)

 

 

127.5

 

 

 

—

 

 

 

127.5

 

U.S. corporate bonds (3)

 

 

1,493.6

 

 

 

108.4

 

 

 

1,385.2

 

Non-U.S. corporate bonds (3)

 

 

380.8

 

 

 

49.3

 

 

 

331.5

 

Other fixed income (4)

 

 

319.4

 

 

 

—

 

 

 

319.4

 

Short-term investments (5)

 

 

149.0

 

 

 

149.0

 

 

 

—

 

Benefit plan assets measured in the fair value hierarchy

 

$

3,079.8

 

 

$

480.4

 

 

$

2,599.4

 

Assets measured at NAV (6)

 

 

2,191.6

 

 

 

 

 

 

 

 

 

Total benefit plan assets

 

$

5,271.4

 

 

 

 

 

 

 

 

 

 

 

(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, 2019 and 2018 (in millions):

 

 

 

Fair value

 

 

Redemption

Frequency

 

Redemption

Notice Period

 

Unfunded

Commitments

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds (1)

 

$

42.9

 

 

Monthly

 

Up to 30 days

 

$

—

 

Commingled funds, private equity, private real

   estate investments, and equity related

   investments (2)

 

 

1,188.6

 

 

Monthly

 

Up to 60 days

 

 

113.1

 

Fixed income and fixed income related

   instruments (3)

 

 

823.3

 

 

Monthly

 

Up to 10 days

 

 

—

 

 

 

$

2,054.8

 

 

 

 

 

 

$

113.1

 

September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds (1)

 

$

47.9

 

 

Monthly

 

Up to 30 days

 

$

—

 

Commingled funds, private equity, private real

   estate investments, and equity related

   investments (2)

 

 

1,092.9

 

 

Monthly

 

Up to 60 days

 

 

75.3

 

Fixed income and fixed income related

   instruments (3)

 

 

1,050.8

 

 

Monthly

 

Up to 10 days

 

 

—

 

 

 

$

2,191.6

 

 

 

 

 

 

$

75.3

 

 

 

(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. Hedge funds have been valued using NAV as a practical expedient.

 

 

(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. Commingled funds have been valued using NAV as a practical expedient.

 

 

(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. Commingled debt funds have been valued using NAV as a practical expedient.

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.
Schedule of Health Care Cost Trend Rates

The assumed health care cost trend rates used in measuring the accumulated postretirement benefit obligation (“APBO”) are as follows at September 30, 2019:

 

U.S. Plans

 

 

 

 

Health care cost trend rate assumed for next year

 

 

5.87

%

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

   trend rate)

 

 

4.42

%

Year the rate reaches the ultimate trend rate

 

2037

 

 

 

 

 

 

Non-U.S. Plans

 

 

 

 

Health care cost trend rate assumed for next year

 

 

5.91

%

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

   trend rate)

 

 

5.91

%

Year the rate reaches the ultimate trend rate

 

2019

 

 
Schedule of Multiemployer Plans

The following table lists our participation in our multiemployer and other plans that are individually significant for the years ended September 30 (in millions):

 

Pension Fund

 

EIN /

Pension

Plan Number

 

Pension Act

Zone Status

 

FIP / RP

Status

Pending /

Implemented

 

Contributions (1)

 

 

Surcharge

imposed?

 

Expiration

CBA

 

 

 

 

2019

 

2018

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

 

 

U.S. Multiemployer plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pace Industry Union-Management

   Pension Fund (2)

 

11-6166763 /

001

 

Red

 

Red

 

Implemented

 

$

—

 

 

$

0.9

 

 

$

3.5

 

 

Yes

 

9/30/20 to

6/25/23

Other Funds (3)

 

 

 

 

 

 

 

 

 

 

1.4

 

 

 

0.5

 

 

 

1.6

 

 

 

 

 

Total Contributions:

 

 

 

 

 

 

 

 

 

$

1.4

 

 

$

1.4

 

 

$

5.1

 

 

 

 

 

 

(1)

Contributions represent the amounts contributed to the plan during the fiscal year.

 

(2)

In fiscal 2019 and 2018, our contributions did not exceed 5% of total plan contributions due to our withdrawal from PIUMPF. In fiscal 2017, we did exceed 5% of total plan contributions.

 

(3)

One additional MEPP in which we participate have been certified as critical and declining.
v3.19.3
Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign

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

 

 

 

Year Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

United States

 

$

891.6

 

 

$

736.7

 

 

$

481.9

 

Foreign

 

 

253.1

 

 

 

298.1

 

 

 

375.7

 

Income before income taxes

 

$

1,144.7

 

 

$

1,034.8

 

 

$

857.6

 
Schedule of Components of Income Tax Expense (Benefit)

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

 

 

 

Year Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Current income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

134.7

 

 

$

83.0

 

 

$

80.8

 

State

 

 

34.9

 

 

 

26.8

 

 

 

3.3

 

Foreign

 

 

69.5

 

 

 

86.6

 

 

 

95.3

 

Total current expense

 

 

239.1

 

 

 

196.4

 

 

 

179.4

 

Deferred income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

44.1

 

 

 

(1,108.6

)

 

 

15.2

 

State

 

 

6.1

 

 

 

53.2

 

 

 

(22.8

)

Foreign

 

 

(12.5

)

 

 

(15.5

)

 

 

(12.8

)

Total deferred expense (benefit)

 

 

37.7

 

 

 

(1,070.9

)

 

 

(20.4

)

Total income tax expense (benefit)

 

$

276.8

 

 

$

(874.5

)

 

$

159.0

 
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,

 

 

 

2019

 

 

2018

 

 

2017

 

Statutory federal tax rate

 

 

21.0

%

 

 

24.5

%

 

 

35.0

%

Foreign rate differential

 

 

1.3

 

 

 

0.6

 

 

 

(4.9

)

Adjustment and resolution of federal, state and foreign tax

   uncertainties

 

 

1.2

 

 

 

0.9

 

 

 

(0.3

)

State taxes, net of federal benefit

 

 

2.5

 

 

 

4.3

 

 

 

3.3

 

Tax Act (1)

 

 

—

 

 

 

(109.1

)

 

 

—

 

Excess tax benefit related to stock compensation

 

 

(0.3

)

 

 

(0.8

)

 

 

—

 

Research and development and other tax credits, net of

   valuation allowances and reserves

 

 

(0.7

)

 

 

(0.5

)

 

 

(0.8

)

Income attributable to noncontrolling interest

 

 

(0.1

)

 

 

(0.1

)

 

 

0.4

 

Domestic manufacturer’s deduction

 

 

—

 

 

 

(1.8

)

 

 

(2.0

)

Sale of HH&B

 

 

—

 

 

 

—

 

 

 

(5.0

)

U.S. legal entity restructuring

 

 

—

 

 

 

—

 

 

 

(3.3

)

Change in valuation allowance

 

 

0.2

 

 

 

(1.8

)

 

 

(3.3

)

Nondeductible transaction costs

 

 

1.0

 

 

 

—

 

 

 

1.0

 

Nontaxable increased cash surrender value

 

 

(0.6

)

 

 

(0.8

)

 

 

(1.5

)

Withholding taxes

 

 

0.6

 

 

 

0.5

 

 

 

0.4

 

Brazilian net worth deduction

 

 

(0.9

)

 

 

(0.9

)

 

 

(0.8

)

Other, net

 

 

(1.0

)

 

 

0.5

 

 

 

0.3

 

Effective tax rate

 

 

24.2

%

 

 

(84.5

)%

 

 

18.5

%

(1)

For the year ended September 30, 2018, the primary components are a $1,215.9 million benefit from the remeasurement of our net U.S. deferred tax liability and a one-time transition tax liability of $95.4 million or $87.1 million net of the release of a previously recorded outside basis difference.
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,

 

 

 

2019

 

 

2018

 

Deferred income tax assets:

 

 

 

 

 

 

 

 

Accruals and allowances

 

$

10.7

 

 

$

22.1

 

Employee related accruals and allowances

 

 

221.2

 

 

 

213.2

 

Pension

 

 

0.7

 

 

 

—

 

State net operating loss carryforwards

 

 

57.6

 

 

 

78.4

 

State credit carryforwards, net of federal benefit

 

 

69.5

 

 

 

64.8

 

U.S. and foreign tax credit carryforwards

 

 

0.7

 

 

 

14.7

 

Federal and foreign net operating loss carryforwards

 

 

173.5

 

 

 

188.7

 

Restricted stock and options

 

 

39.3

 

 

 

46.7

 

Other

 

 

52.1

 

 

 

45.3

 

Total

 

 

625.3

 

 

 

673.9

 

Deferred income tax liabilities:

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

1,840.5

 

 

 

1,509.7

 

Deductible intangibles and goodwill

 

 

914.7

 

 

 

698.1

 

Inventory reserves

 

 

188.3

 

 

 

168.6

 

Deferred gain

 

 

275.2

 

 

 

258.8

 

Pension obligations

 

 

—

 

 

 

60.1

 

Basis difference in joint ventures

 

 

33.1

 

 

 

35.5

 

Total

 

 

3,251.8

 

 

 

2,730.8

 

Valuation allowances

 

 

218.0

 

 

 

229.4

 

Net deferred income tax liability

 

$

2,844.5

 

 

$

2,286.3

 
Location Of Deferred Taxes In Balance Sheet

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

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Long-term deferred tax asset (1)

 

$

33.5

 

 

$

35.2

 

Long-term deferred tax liability

 

 

2,878.0

 

 

 

2,321.5

 

Net deferred income tax liability

 

$

2,844.5

 

 

$

2,286.3

 

 

 

(1)

The long-term deferred tax asset is presented in Other 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 2019, 2018 and 2017 (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of fiscal year

 

$

229.4

 

 

$

219.1

 

 

$

177.2

 

Increases

 

 

25.4

 

 

 

50.8

 

 

 

54.3

 

Allowances related to purchase accounting (1)

 

 

0.8

 

 

 

0.1

 

 

 

12.4

 

Reductions

 

 

(37.6

)

 

 

(40.6

)

 

 

(24.8

)

Balance at end of fiscal year

 

$

218.0

 

 

$

229.4

 

 

$

219.1

 

 

 

(1)

Amounts in fiscal 2019 relate to the KapStone Acquisition. Amounts in fiscal 2018 and 2017 relate to the MPS Acquisition.

Summary of Income Tax Contingencies

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

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of fiscal year

 

$

127.1

 

 

$

148.9

 

 

$

166.8

 

Additions related to purchase accounting (1)

 

 

1.0

 

 

 

3.4

 

 

 

7.7

 

Additions for tax positions taken in current year (2)

 

 

103.8

 

 

 

3.1

 

 

 

5.0

 

Additions for tax positions taken in prior fiscal years

 

 

1.8

 

 

 

18.0

 

 

 

15.2

 

Reductions for tax positions taken in prior fiscal years

 

 

(0.5

)

 

 

(5.3

)

 

 

(25.6

)

Reductions due to settlement (3)

 

 

(4.0

)

 

 

(29.4

)

 

 

(14.1

)

(Reductions) additions for currency translation adjustments

 

 

(1.7

)

 

 

(9.6

)

 

 

2.0

 

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

   limitations

 

 

(3.2

)

 

 

(2.0

)

 

 

(8.1

)

Balance at end of fiscal year

 

$

224.3

 

 

$

127.1

 

 

$

148.9

 

 

 

(1)

Amounts in fiscal 2019 relate to the KapStone Acquisition. Amounts in fiscal 2018 and 2017 relate to the MPS Acquisition.

 

 

(2)

Additions for tax positions taken in current fiscal year includes primarily positions taken related to foreign subsidiaries.

 

(3)

Amounts in fiscal 2019 relate to the settlements of state and foreign audit examinations. Amounts in fiscal 2018 relate to the settlement of state audit examinations and federal and state amended returns filed related to affirmative adjustments for which there was a reserve. Amounts in fiscal 2017 relate to the settlement of federal and state audit examinations with taxing authorities.
v3.19.3
Segment Information (Tables)
 12 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers, Segment Income and Long-Lived Assets, by Geographical Areas . 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, except percentages):

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Foreign net sales to unaffiliated customers

 

$

3,332.4

 

 

$

3,236.7

 

 

$

2,621.2

 

Foreign segment income

 

$

392.3

 

 

$

360.7

 

 

$

260.1

 

Foreign long-lived assets

 

$

1,466.4

 

 

$

1,400.2

 

 

$

1,558.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign operations as a percent of consolidated operations:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign net sales to unaffiliated customers

 

 

18.2

%

 

 

19.9

%

 

 

17.6

%

Foreign segment income

 

 

21.9

%

 

 

21.1

%

 

 

21.4

%

Foreign long-lived assets

 

 

13.1

%

 

 

15.4

%

 

 

17.1

%

 
Certain Operating Data for Segments

The following table shows selected operating data for our segments (in millions):

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Net sales (aggregate):

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

11,816.7

 

 

$

9,693.0

 

 

$

9,084.8

 

Consumer Packaging

 

 

6,606.0

 

 

 

6,617.5

 

 

 

5,698.3

 

Land and Development

 

 

23.4

 

 

 

142.4

 

 

 

243.8

 

Total

 

$

18,446.1

 

 

$

16,452.9

 

 

$

15,026.9

 

Less net sales (intersegment):

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

75.3

 

 

$

87.3

 

 

$

78.8

 

Consumer Packaging

 

 

81.8

 

 

 

80.5

 

 

 

88.4

 

Total

 

$

157.1

 

 

$

167.8

 

 

$

167.2

 

Net sales (unaffiliated customers):

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

11,741.4

 

 

$

9,605.7

 

 

$

9,006.0

 

Consumer Packaging

 

 

6,524.2

 

 

 

6,537.0

 

 

 

5,609.9

 

Land and Development

 

 

23.4

 

 

 

142.4

 

 

 

243.8

 

Total

 

$

18,289.0

 

 

$

16,285.1

 

 

$

14,859.7

 

Segment income:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

1,399.6

 

 

$

1,240.0

 

 

$

818.0

 

Consumer Packaging

 

 

388.1

 

 

 

445.1

 

 

 

385.7

 

Land and Development

 

 

2.5

 

 

 

22.5

 

 

 

13.8

 

Segment income

 

 

1,790.2

 

 

 

1,707.6

 

 

 

1,217.5

 

Gain on sale of certain closed facilities

 

 

52.6

 

 

 

—

 

 

 

—

 

Multiemployer pension withdrawal income (expense)

 

 

6.3

 

 

 

(184.2

)

 

 

—

 

Pension lump sum settlement

 

 

—

 

 

 

—

 

 

 

(32.6

)

Land and Development impairments

 

 

(13.0

)

 

 

(31.9

)

 

 

(46.7

)

Restructuring and other costs

 

 

(173.7

)

 

 

(105.4

)

 

 

(196.7

)

Non-allocated expenses

 

 

(83.7

)

 

 

(70.1

)

 

 

(67.5

)

Interest expense, net

 

 

(431.3

)

 

 

(293.8

)

 

 

(222.5

)

Loss (gain) on extinguishment of debt

 

 

(5.1

)

 

 

(0.1

)

 

 

1.8

 

Other income, net

 

 

2.4

 

 

 

12.7

 

 

 

11.5

 

Gain on sale of HH&B

 

 

—

 

 

 

—

 

 

 

192.8

 

Income before income taxes

 

$

1,144.7

 

 

$

1,034.8

 

 

$

857.6

 

 

The following table shows selected operating data for our segments (in millions):

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Identifiable assets:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

16,681.1

 

 

$

11,069.6

 

 

$

10,959.7

 

Consumer Packaging

 

 

11,038.7

 

 

 

11,511.1

 

 

 

11,455.8

 

Land and Development

 

 

28.3

 

 

 

49.1

 

 

 

89.8

 

Assets held for sale

 

 

25.8

 

 

 

59.5

 

 

 

173.6

 

Corporate

 

 

2,382.8

 

 

 

2,671.2

 

 

 

2,410.1

 

Total

 

$

30,156.7

 

 

$

25,360.5

 

 

$

25,089.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

3,695.0

 

 

$

1,966.7

 

 

$

1,941.5

 

Consumer Packaging

 

 

3,590.6

 

 

 

3,610.9

 

 

 

3,586.8

 

Total

 

$

7,285.6

 

 

$

5,577.6

 

 

$

5,528.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangibles, net:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

1,655.1

 

 

$

506.2

 

 

$

540.4

 

Consumer Packaging

 

 

2,404.4

 

 

 

2,615.8

 

 

 

2,788.9

 

Total

 

$

4,059.5

 

 

$

3,122.0

 

 

$

3,329.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

950.6

 

 

$

700.5

 

 

$

622.1

 

Consumer Packaging

 

 

552.1

 

 

 

546.5

 

 

 

484.9

 

Land and Development

 

 

—

 

 

 

0.7

 

 

 

0.7

 

Corporate

 

 

8.5

 

 

 

4.5

 

 

 

4.4

 

Total

 

$

1,511.2

 

 

$

1,252.2

 

 

$

1,112.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

961.4

 

 

$

657.3

 

 

$

503.9

 

Consumer Packaging

 

 

365.9

 

 

 

308.3

 

 

 

254.0

 

Corporate

 

 

41.8

 

 

 

34.3

 

 

 

20.7

 

Total

 

$

1,369.1

 

 

$

999.9

 

 

$

778.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in unconsolidated entities:

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

457.1

 

 

$

455.6

 

 

$

342.8

 

Consumer Packaging

 

 

11.6

 

 

 

1.8

 

 

 

3.0

 

Land and Development

 

 

—

 

 

 

—

 

 

 

14.4

 

Corporate

 

 

0.4

 

 

 

0.4

 

 

 

0.4

 

Total

 

$

469.1

 

 

$

457.8

 

 

$

360.6

 
Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the fiscal years ended September 30, 2019, 2018 and 2017 are as follows (in millions):

 

 

 

Corrugated

Packaging

 

 

Consumer

Packaging

 

 

Total

 

Balance as of October 1, 2016

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

1,798.4

 

 

$

3,022.5

 

 

$

4,820.9

 

Accumulated impairment losses

 

 

(0.1

)

 

 

(42.7

)

 

 

(42.8

)

 

 

 

1,798.3

 

 

 

2,979.8

 

 

 

4,778.1

 

Goodwill acquired

 

 

137.6

 

 

 

907.8

 

 

 

1,045.4

 

Goodwill disposed of

 

 

—

 

 

 

(329.6

)

 

 

(329.6

)

Purchase price allocation adjustments

 

 

(1.2

)

 

 

9.3

 

 

 

8.1

 

Translation adjustments

 

 

6.8

 

 

 

19.5

 

 

 

26.3

 

Balance as of September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

1,941.6

 

 

 

3,629.5

 

 

 

5,571.1

 

Accumulated impairment losses

 

 

(0.1

)

 

 

(42.7

)

 

 

(42.8

)

 

 

 

1,941.5

 

 

 

3,586.8

 

 

 

5,528.3

 

Goodwill acquired

 

 

65.4

 

 

 

23.8

 

 

 

89.2

 

Goodwill disposed of

 

 

(4.2

)

 

 

—

 

 

 

(4.2

)

Purchase price allocation adjustments

 

 

2.3

 

 

 

18.4

 

 

 

20.7

 

Translation adjustments

 

 

(38.3

)

 

 

(18.1

)

 

 

(56.4

)

Balance as of September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

1,966.8

 

 

 

3,653.6

 

 

 

5,620.4

 

Accumulated impairment losses

 

 

(0.1

)

 

 

(42.7

)

 

 

(42.8

)

 

 

 

1,966.7

 

 

 

3,610.9

 

 

 

5,577.6

 

Goodwill acquired

 

 

1,746.4

 

 

 

3.8

 

 

 

1,750.2

 

Purchase price allocation adjustments

 

 

0.9

 

 

 

(1.4

)

 

 

(0.5

)

Translation and other adjustments

 

 

(19.0

)

 

 

(22.7

)

 

 

(41.7

)

Balance as of September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

3,695.1

 

 

 

3,633.3

 

 

 

7,328.4

 

Accumulated impairment losses

 

 

(0.1

)

 

 

(42.7

)

 

 

(42.8

)

 

 

$

3,695.0

 

 

$

3,590.6

 

 

$

7,285.6

 
v3.19.3
Inventories (Tables)
 12 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Schedule of Inventories

Inventories are as follows (in millions):

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Finished goods and work in process

 

$

938.9

 

 

$

867.0

 

Raw materials

 

 

818.8

 

 

 

730.0

 

Supplies and spare parts

 

 

479.7

 

 

 

368.2

 

Inventories at FIFO cost

 

 

2,237.4

 

 

 

1,965.2

 

LIFO reserve

 

 

(129.9

)

 

 

(135.6

)

Net inventories

 

$

2,107.5

 

 

$

1,829.6

 
v3.19.3
Property, Plant and Equipment (Tables)
 12 Months Ended
Sep. 30, 2019
Property Plant And Equipment [Abstract]  
Schedule of Property, Plant and Equipment

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

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Property, plant and equipment at cost:

 

 

 

 

 

 

 

 

Land and buildings

 

$

2,442.3

 

 

$

2,078.9

 

Machinery and equipment

 

 

14,743.6

 

 

 

12,064.0

 

Forestlands and mineral rights

 

 

144.0

 

 

 

158.0

 

Transportation equipment

 

 

31.2

 

 

 

30.1

 

Leasehold improvements

 

 

100.2

 

 

 

88.9

 

 

 

 

17,461.3

 

 

 

14,419.9

 

Less: accumulated depreciation, depletion and amortization

 

 

(6,271.8

)

 

 

(5,337.4

)

Property, plant and equipment, net

 

$

11,189.5

 

 

$

9,082.5

 
v3.19.3
Other Intangible Assets (Tables)
 12 Months Ended
Sep. 30, 2019
Other Intangible Assets [Abstract]  
Schedule of Finite-Lived Intangible Assets

The gross carrying amount and accumulated amortization relating to intangible assets, excluding goodwill, are as follows (in millions, except weighted avg. life):  

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

Weighted

Avg. Life

(in years)

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

Customer relationships

 

 

15.3

 

 

$

5,395.5

 

 

$

(1,452.1

)

 

$

4,123.7

 

 

$

(1,079.8

)

Trademarks and tradenames

 

 

20.0

 

 

 

129.9

 

 

 

(55.3

)

 

 

77.6

 

 

 

(43.9

)

Favorable contracts

 

 

10.1

 

 

 

57.0

 

 

 

(42.6

)

 

 

47.8

 

 

 

(34.8

)

Technology and patents

 

 

11.4

 

 

 

39.2

 

 

 

(21.2

)

 

 

41.2

 

 

 

(18.0

)

License costs

 

 

9.0

 

 

 

25.7

 

 

 

(20.5

)

 

 

24.6

 

 

 

(18.1

)

Non-compete agreements

 

 

2.0

 

 

 

3.4

 

 

 

(2.9

)

 

 

3.4

 

 

 

(1.7

)

Other

 

 

29.5

 

 

 

3.6

 

 

 

(0.2

)

 

 

—

 

 

 

—

 

Total

 

 

15.3

 

 

$

5,654.3

 

 

$

(1,594.8

)

 

$

4,318.3

 

 

$

(1,196.3

)
Estimated intangible asset future amortization expense

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

 

Fiscal 2020

 

$

404.2

 

Fiscal 2021

 

$

356.4

 

Fiscal 2022

 

$

348.9

 

Fiscal 2023

 

$

342.7

 

Fiscal 2024

 

$

322.3

 
v3.19.3
Fair Value (Tables)
 12 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Summary of Activity Under A/R Sales Agreement

The following table represents a summary of the activity under the A/R Sales Agreement for fiscal 2019 and 2018 (in millions):

 

 

 

2019

 

 

2018

 

Receivable from financial institution at beginning of fiscal year

 

$

—

 

 

$

24.9

 

Receivables sold to the financial institution and derecognized

 

 

2,051.6

 

 

 

1,664.0

 

Receivables collected by financial institution

 

 

(1,971.1

)

 

 

(1,573.8

)

Cash proceeds from financial institution

 

 

(80.5

)

 

 

(115.1

)

Receivable from financial institution at September 30,

 

$

—

 

 

$

—

 
v3.19.3
Debt (Tables)
 12 Months Ended
Sep. 30, 2019
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, 2019

 

 

September 30, 2018

 

 

 

Carrying

Value

 

 

Weighted Avg

Interest Rate

 

 

Carrying

Value

 

 

Weighted Avg

Interest Rate

 

Public bonds due fiscal 2019 to 2022

 

$

507.8

 

 

 

4.9

%

 

$

1,470.9

 

 

 

4.2

%

Public bonds due fiscal 2023 to 2028

 

 

3,769.1

 

 

 

4.0

%

 

 

2,534.4

 

 

 

3.8

%

Public bonds due fiscal 2029 to 2033

 

 

2,197.6

 

 

 

4.9

%

 

 

964.1

 

 

 

5.2

%

Public bonds due fiscal 2037 to 2047

 

 

179.0

 

 

 

6.2

%

 

 

178.5

 

 

 

6.3

%

Term loan facilities

 

 

2,295.5

 

 

 

3.3

%

 

 

599.4

 

 

 

3.7

%

Revolving credit and swing facilities

 

 

396.0

 

 

 

2.9

%

 

 

355.0

 

 

 

3.2

%

Commercial paper

 

 

339.2

 

 

 

2.4

%

 

 

—

 

 

N/A

 

Capital lease obligations

 

 

185.8

 

 

 

4.3

%

 

 

171.0

 

 

 

4.1

%

Supplier financing and commercial card

   programs

 

 

123.2

 

 

N/A

 

 

 

105.1

 

 

N/A

 

International and other debt

 

 

70.2

 

 

 

6.6

%

 

 

36.8

 

 

 

6.1

%

Total debt

 

 

10,063.4

 

 

 

4.0

%

 

 

6,415.2

 

 

 

4.1

%

Less: current portion of debt

 

 

561.1

 

 

 

 

 

 

 

740.7

 

 

 

 

 

Long-term debt due after one year

 

$

9,502.3

 

 

 

 

 

 

$

5,674.5

 

 

 

 

 
Schedule of aggregate maturities of debt

As of September 30, 2019, the aggregate maturities of debt, excluding capital lease obligations, for the succeeding five fiscal years and thereafter are as follows (in millions):

 

Fiscal 2020

 

$

550.8

 

Fiscal 2021

 

 

184.8

 

Fiscal 2022

 

 

755.0

 

Fiscal 2023

 

 

542.6

 

Fiscal 2024

 

 

1,951.7

 

Thereafter

 

 

5,729.2

 

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

   bond discounts

 

 

163.5

 

Total

 

$

9,877.6

 

 

As of September 30, 2019, the aggregate maturities of capital lease obligations for the succeeding five fiscal years and thereafter are as follows (in millions):

 

Fiscal 2020

 

$

6.4

 

Fiscal 2021

 

 

4.8

 

Fiscal 2022

 

 

3.9

 

Fiscal 2023

 

 

2.0

 

Fiscal 2024

 

 

0.9

 

Thereafter

 

 

150.9

 

Fair value step-up

 

 

16.9

 

Total

 

$

185.8

 
v3.19.3
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors (Tables)
 12 Months Ended
Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

Net sales

 

$

—

 

 

$

—

 

 

$

2,543.8

 

 

$

18,364.4

 

 

$

(2,619.2

)

 

$

18,289.0

 

Cost of goods sold

 

 

—

 

 

 

—

 

 

 

2,026.0

 

 

 

15,114.2

 

 

 

(2,600.2

)

 

 

14,540.0

 

Selling, general and administrative,

   excluding intangible amortization

 

 

—

 

 

 

(0.9

)

 

 

120.0

 

 

 

1,596.1

 

 

 

—

 

 

 

1,715.2

 

Selling, general and administrative

   intangible amortization

 

 

—

 

 

 

—

 

 

 

104.4

 

 

 

295.8

 

 

 

—

 

 

 

400.2

 

Loss (gain) on disposal of assets

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

(41.3

)

 

 

—

 

 

 

(41.2

)

Multiemployer pension withdrawal

  income

 

 

—

 

 

 

(0.2

)

 

 

(0.3

)

 

 

(5.8

)

 

 

—

 

 

 

(6.3

)

Land and Development impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13.0

 

 

 

—

 

 

 

13.0

 

Restructuring and other costs

 

 

—

 

 

 

7.6

 

 

 

0.3

 

 

 

165.8

 

 

 

—

 

 

 

173.7

 

Operating profit (loss)

 

 

—

 

 

 

(6.5

)

 

 

293.3

 

 

 

1,226.6

 

 

 

(19.0

)

 

 

1,494.4

 

Interest expense, net

 

 

—

 

 

 

(246.8

)

 

 

(163.4

)

 

 

(21.1

)

 

 

—

 

 

 

(431.3

)

Intercompany interest (expense)

  income, net

 

 

—

 

 

 

(3.2

)

 

 

(115.3

)

 

 

99.5

 

 

 

19.0

 

 

 

—

 

Loss on extinguishment of debt

 

 

—

 

 

 

(3.0

)

 

 

(1.9

)

 

 

(0.2

)

 

 

—

 

 

 

(5.1

)

Pension and other postretirement

  non-service (expense) income

 

 

—

 

 

 

—

 

 

 

(6.5

)

 

 

80.7

 

 

 

—

 

 

 

74.2

 

Other (expense) income, net

 

 

—

 

 

 

(5.1

)

 

 

3.4

 

 

 

4.1

 

 

 

—

 

 

 

2.4

 

Equity in income of unconsolidated

  entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10.1

 

 

 

—

 

 

 

10.1

 

Equity in income of consolidated

  entities

 

 

862.9

 

 

 

1,149.9

 

 

 

729.2

 

 

 

—

 

 

 

(2,742.0

)

 

 

—

 

Income before income taxes

 

 

862.9

 

 

 

885.3

 

 

 

738.8

 

 

 

1,399.7

 

 

 

(2,742.0

)

 

 

1,144.7

 

Income tax benefit (expense)

 

 

—

 

 

 

67.9

 

 

 

7.2

 

 

 

(351.9

)

 

 

—

 

 

 

(276.8

)

Consolidated net income

 

 

862.9

 

 

 

953.2

 

 

 

746.0

 

 

 

1,047.8

 

 

 

(2,742.0

)

 

 

867.9

 

Less: Net income attributable to

   noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5.0

)

 

 

—

 

 

 

(5.0

)

Net income attributable to common

   stockholders

 

$

862.9

 

 

$

953.2

 

 

$

746.0

 

 

$

1,042.8

 

 

$

(2,742.0

)

 

$

862.9

 

Comprehensive income attributable

   to common stockholders

 

$

489.0

 

 

$

577.7

 

 

$

377.3

 

 

$

682.4

 

 

$

(1,637.4

)

 

$

489.0

 

 

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2018

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

Net sales

 

$

—

 

 

$

—

 

 

$

2,593.0

 

 

$

16,345.4

 

 

$

(2,653.3

)

 

$

16,285.1

 

Cost of goods sold

 

 

—

 

 

 

—

 

 

 

2,004.2

 

 

 

13,572.2

 

 

 

(2,653.3

)

 

 

12,923.1

 

Selling, general and administrative,

  excluding intangible amortization

 

 

—

 

 

 

1.5

 

 

 

94.1

 

 

 

1,451.0

 

 

 

—

 

 

 

1,546.6

 

Selling, general and administrative

  intangible amortization

 

 

—

 

 

 

—

 

 

 

104.2

 

 

 

192.4

 

 

 

—

 

 

 

296.6

 

Loss on disposal of assets

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

9.9

 

 

 

—

 

 

 

10.1

 

Multiemployer pension withdrawals

 

 

—

 

 

 

6.5

 

 

 

12.5

 

 

 

165.2

 

 

 

—

 

 

 

184.2

 

Land and Development impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31.9

 

 

 

—

 

 

 

31.9

 

Restructuring and other costs

 

 

—

 

 

 

8.7

 

 

 

5.6

 

 

 

91.1

 

 

 

—

 

 

 

105.4

 

Operating profit (loss)

 

 

—

 

 

 

(16.7

)

 

 

372.2

 

 

 

831.7

 

 

 

—

 

 

 

1,187.2

 

Interest expense, net

 

 

(12.5

)

 

 

(76.9

)

 

 

(173.5

)

 

 

(30.9

)

 

 

—

 

 

 

(293.8

)

Intercompany interest income

  (expense), net

 

 

—

 

 

 

28.1

 

 

 

(87.6

)

 

 

59.5

 

 

 

—

 

 

 

—

 

(Loss) gain on extinguishment of

  debt

 

 

(0.2

)

 

 

(1.4

)

 

 

1.9

 

 

 

(0.4

)

 

 

—

 

 

 

(0.1

)

Pension and other postretirement

  non-service (expense) income

 

 

—

 

 

 

—

 

 

 

(6.9

)

 

 

102.2

 

 

 

—

 

 

 

95.3

 

Other income (expense), net

 

 

—

 

 

 

0.7

 

 

 

(22.5

)

 

 

34.5

 

 

 

—

 

 

 

12.7

 

Equity in income of unconsolidated

  entities

 

 

—

 

 

 

—

 

 

 

7.5

 

 

 

26.0

 

 

 

—

 

 

 

33.5

 

Equity in income of consolidated

  entities

 

 

—

 

 

 

1,962.0

 

 

 

1,343.8

 

 

 

—

 

 

 

(3,305.8

)

 

 

—

 

Income (loss) before income taxes

 

 

(12.7

)

 

 

1,895.8

 

 

 

1,434.9

 

 

 

1,022.6

 

 

 

(3,305.8

)

 

 

1,034.8

 

Income tax benefit

 

 

3.1

 

 

 

19.9

 

 

 

131.8

 

 

 

719.7

 

 

 

—

 

 

 

874.5

 

Consolidated net income (loss)

 

 

(9.6

)

 

 

1,915.7

 

 

 

1,566.7

 

 

 

1,742.3

 

 

 

(3,305.8

)

 

 

1,909.3

 

Less: Net income attributable to

  noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3.2

)

 

 

—

 

 

 

(3.2

)

Net income (loss) attributable to

  common stockholders

 

$

(9.6

)

 

$

1,915.7

 

 

$

1,566.7

 

 

$

1,739.1

 

 

$

(3,305.8

)

 

$

1,906.1

 

Comprehensive income (loss)

  attributable to common

  stockholders

 

$

(9.6

)

 

$

1,677.7

 

 

$

1,351.4

 

 

$

1,498.6

 

 

$

(2,850.0

)

 

$

1,668.1

 

 

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2017

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

Net sales

 

$

—

 

 

$

—

 

 

$

2,485.6

 

 

$

15,208.5

 

 

$

(2,834.4

)

 

$

14,859.7

 

Cost of goods sold

 

 

—

 

 

 

—

 

 

 

2,289.0

 

 

 

12,686.9

 

 

 

(2,834.4

)

 

 

12,141.5

 

Selling, general and administrative,

  excluding intangible amortization

 

 

—

 

 

 

0.8

 

 

 

123.9

 

 

 

1,332.5

 

 

 

—

 

 

 

1,457.2

 

Selling, general and administrative

  intangible amortization

 

 

—

 

 

 

—

 

 

 

104.2

 

 

 

125.4

 

 

 

—

 

 

 

229.6

 

Loss on disposal of assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.8

 

 

 

—

 

 

 

4.8

 

Land and Development impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

46.7

 

 

 

—

 

 

 

46.7

 

Restructuring and other costs

 

 

—

 

 

 

1.3

 

 

 

26.0

 

 

 

169.4

 

 

 

—

 

 

 

196.7

 

Operating profit (loss)

 

 

—

 

 

 

(2.1

)

 

 

(57.5

)

 

 

842.8

 

 

 

—

 

 

 

783.2

 

Interest expense, net

 

 

—

 

 

 

(40.1

)

 

 

(172.5

)

 

 

(9.9

)

 

 

—

 

 

 

(222.5

)

Intercompany interest income

  (expense), net

 

 

—

 

 

 

18.5

 

 

 

(53.1

)

 

 

34.6

 

 

 

—

 

 

 

—

 

(Loss) gain on extinguishment of debt

 

 

—

 

 

 

(0.9

)

 

 

3.1

 

 

 

(0.4

)

 

 

—

 

 

 

1.8

 

Pension and other postretirement

  non-service income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

51.8

 

 

 

—

 

 

 

51.8

 

Other (expense) income, net

 

 

—

 

 

 

(1.0

)

 

 

(30.2

)

 

 

42.7

 

 

 

—

 

 

 

11.5

 

Equity in income of unconsolidated

  entities

 

 

—

 

 

 

—

 

 

 

12.7

 

 

 

26.3

 

 

 

—

 

 

 

39.0

 

Equity in income of consolidated

  entities

 

 

—

 

 

 

724.2

 

 

 

643.7

 

 

 

—

 

 

 

(1,367.9

)

 

 

—

 

Gain on sale of HH&B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

192.8

 

 

 

—

 

 

 

192.8

 

Income before income taxes

 

 

—

 

 

 

698.6

 

 

 

346.2

 

 

 

1,180.7

 

 

 

(1,367.9

)

 

 

857.6

 

Income tax benefit (expense)

 

 

—

 

 

 

9.6

 

 

 

120.5

 

 

 

(289.1

)

 

 

—

 

 

 

(159.0

)

Consolidated net income

 

 

—

 

 

 

708.2

 

 

 

466.7

 

 

 

891.6

 

 

 

(1,367.9

)

 

 

698.6

 

Net loss attributable to noncontrolling

  interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9.6

 

 

 

—

 

 

 

9.6

 

Net income attributable to common

  stockholders

 

$

—

 

 

$

708.2

 

 

$

466.7

 

 

$

901.2

 

 

$

(1,367.9

)

 

$

708.2

 

Comprehensive income attributable

  to common stockholders

 

$

—

 

 

$

877.3

 

 

$

609.0

 

 

$

1,071.8

 

 

$

(1,680.8

)

 

$

877.3

 

 
Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

 

$

—

 

 

$

17.8

 

 

$

133.8

 

 

$

—

 

 

$

151.6

 

Accounts receivable

 

 

—

 

 

 

—

 

 

 

31.1

 

 

 

2,201.7

 

 

 

(39.6

)

 

 

2,193.2

 

Inventories

 

 

—

 

 

 

—

 

 

 

254.3

 

 

 

1,853.2

 

 

 

—

 

 

 

2,107.5

 

Other current assets

 

 

—

 

 

 

1.2

 

 

 

11.8

 

 

 

483.2

 

 

 

—

 

 

 

496.2

 

Intercompany receivables

 

 

—

 

 

 

238.2

 

 

 

—

 

 

 

1,340.5

 

 

 

(1,578.7

)

 

 

—

 

Assets held for sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25.8

 

 

 

—

 

 

 

25.8

 

Total current assets

 

 

—

 

 

 

239.4

 

 

 

315.0

 

 

 

6,038.2

 

 

 

(1,618.3

)

 

 

4,974.3

 

Property, plant and equipment, net

 

 

—

 

 

 

—

 

 

 

18.9

 

 

 

11,170.6

 

 

 

—

 

 

 

11,189.5

 

Goodwill

 

 

—

 

 

 

—

 

 

 

1,158.6

 

 

 

6,127.0

 

 

 

—

 

 

 

7,285.6

 

Intangibles, net

 

 

—

 

 

 

—

 

 

 

1,485.0

 

 

 

2,574.5

 

 

 

—

 

 

 

4,059.5

 

Restricted assets held by special purpose

   entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,274.3

 

 

 

—

 

 

 

1,274.3

 

Prepaid pension asset

 

 

—

 

 

 

—

 

 

 

—

 

 

 

224.7

 

 

 

—

 

 

 

224.7

 

Intercompany notes receivable

 

 

—

 

 

 

155.0

 

 

 

156.9

 

 

 

3,026.8

 

 

 

(3,338.7

)

 

 

—

 

Investments in consolidated subsidiaries

 

 

11,973.7

 

 

 

18,460.4

 

 

 

20,039.9

 

 

 

—

 

 

 

(50,474.0

)

 

 

—

 

Other assets

 

 

—

 

 

 

67.8

 

 

 

185.3

 

 

 

971.8

 

 

 

(76.1

)

 

 

1,148.8

 

Total Assets

 

$

11,973.7

 

 

$

18,922.6

 

 

$

23,359.6

 

 

$

31,407.9

 

 

$

(55,507.1

)

 

$

30,156.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of debt

 

$

—

 

 

$

135.3

 

 

$

108.9

 

 

$

316.9

 

 

$

—

 

 

$

561.1

 

Accounts payable

 

 

—

 

 

 

0.7

 

 

 

31.3

 

 

 

1,839.4

 

 

 

(39.6

)

 

 

1,831.8

 

Accrued compensation and benefits

 

 

0.2

 

 

 

—

 

 

 

14.6

 

 

 

455.6

 

 

 

—

 

 

 

470.4

 

Other current liabilities

 

 

—

 

 

 

18.6

 

 

 

83.8

 

 

 

469.4

 

 

 

—

 

 

 

571.8

 

Intercompany payables

 

 

303.6

 

 

 

10.5

 

 

 

1,052.9

 

 

 

211.7

 

 

 

(1,578.7

)

 

 

—

 

Total current liabilities

 

 

303.8

 

 

 

165.1

 

 

 

1,291.5

 

 

 

3,293.0

 

 

 

(1,618.3

)

 

 

3,435.1

 

Long-term debt due after one year

 

 

—

 

 

 

6,608.0

 

 

 

1,982.9

 

 

 

911.4

 

 

 

—

 

 

 

9,502.3

 

Intercompany notes payable

 

 

—

 

 

 

636.3

 

 

 

2,390.5

 

 

 

311.9

 

 

 

(3,338.7

)

 

 

—

 

Pension liabilities, net of current portion

 

 

—

 

 

 

—

 

 

 

147.6

 

 

 

146.4

 

 

 

—

 

 

 

294.0

 

Postretirement benefit liabilities, net of

   current portion

 

 

—

 

 

 

—

 

 

 

25.7

 

 

 

136.4

 

 

 

—

 

 

 

162.1

 

Non-recourse liabilities held by special

   purpose entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,145.2

 

 

 

—

 

 

 

1,145.2

 

Deferred income taxes

 

 

—

 

 

 

—

 

 

 

278.9

 

 

 

2,675.2

 

 

 

(76.1

)

 

 

2,878.0

 

Other long-term liabilities

 

 

—

 

 

 

12.9

 

 

 

131.2

 

 

 

909.8

 

 

 

—

 

 

 

1,053.9

 

Redeemable noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.9

 

 

 

—

 

 

 

1.9

 

Total stockholders’ equity

 

 

11,669.9

 

 

 

11,500.3

 

 

 

17,111.3

 

 

 

21,862.4

 

 

 

(50,474.0

)

 

 

11,669.9

 

Noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14.3

 

 

 

—

 

 

 

14.3

 

Total equity

 

 

11,669.9

 

 

 

11,500.3

 

 

 

17,111.3

 

 

 

21,876.7

 

 

 

(50,474.0

)

 

 

11,684.2

 

Total Liabilities and Equity

 

$

11,973.7

 

 

$

18,922.6

 

 

$

23,359.6

 

 

$

31,407.9

 

 

$

(55,507.1

)

 

$

30,156.7

 

 

 

CONDENSED CONSOLIDATING BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

 

$

0.2

 

 

$

490.8

 

 

$

145.8

 

 

$

—

 

 

$

636.8

 

Accounts receivable, net

 

 

—

 

 

 

0.1

 

 

 

196.5

 

 

 

1,840.2

 

 

 

(26.1

)

 

 

2,010.7

 

Inventories

 

 

—

 

 

 

—

 

 

 

233.4

 

 

 

1,596.2

 

 

 

—

 

 

 

1,829.6

 

Other current assets

 

 

—

 

 

 

0.4

 

 

 

17.2

 

 

 

230.9

 

 

 

—

 

 

 

248.5

 

Intercompany receivables

 

 

—

 

 

 

27.7

 

 

 

269.8

 

 

 

792.8

 

 

 

(1,090.3

)

 

 

—

 

Assets held for sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

59.5

 

 

 

—

 

 

 

59.5

 

Total current assets

 

 

—

 

 

 

28.4

 

 

 

1,207.7

 

 

 

4,665.4

 

 

 

(1,116.4

)

 

 

4,785.1

 

Property, plant and equipment,

  net

 

 

—

 

 

 

—

 

 

 

21.3

 

 

 

9,061.2

 

 

 

—

 

 

 

9,082.5

 

Goodwill

 

 

—

 

 

 

—

 

 

 

1,151.3

 

 

 

4,426.3

 

 

 

—

 

 

 

5,577.6

 

Intangibles, net

 

 

—

 

 

 

—

 

 

 

1,589.4

 

 

 

1,532.6

 

 

 

—

 

 

 

3,122.0

 

Restricted assets held by

  special purpose entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,281.0

 

 

 

—

 

 

 

1,281.0

 

Prepaid pension asset

 

 

—

 

 

 

—

 

 

 

—

 

 

 

420.0

 

 

 

—

 

 

 

420.0

 

Intercompany notes receivable

 

 

—

 

 

 

884.2

 

 

 

33.1

 

 

 

2,865.4

 

 

 

(3,782.7

)

 

 

—

 

Investments in consolidated

  subsidiaries

 

 

—

 

 

 

13,260.3

 

 

 

15,066.3

 

 

 

—

 

 

 

(28,326.6

)

 

 

—

 

Other assets

 

 

3.4

 

 

 

12.4

 

 

 

172.8

 

 

 

910.8

 

 

 

(7.1

)

 

 

1,092.3

 

Total Assets

 

$

3.4

 

 

$

14,185.3

 

 

$

19,241.9

 

 

$

25,162.7

 

 

$

(33,232.8

)

 

$

25,360.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of debt

 

$

—

 

 

$

—

 

 

$

609.5

 

 

$

131.2

 

 

$

—

 

 

$

740.7

 

Accounts payable

 

 

—

 

 

 

0.8

 

 

 

40.3

 

 

 

1,701.8

 

 

 

(26.1

)

 

 

1,716.8

 

Accrued compensation and

  benefits

 

 

—

 

 

 

0.2

 

 

 

10.7

 

 

 

388.4

 

 

 

—

 

 

 

399.3

 

Other current liabilities

 

 

—

 

 

 

3.2

 

 

 

77.7

 

 

 

395.6

 

 

 

—

 

 

 

476.5

 

Intercompany payables

 

 

13.0

 

 

 

506.6

 

 

 

570.4

 

 

 

0.3

 

 

 

(1,090.3

)

 

 

—

 

Total current liabilities

 

 

13.0

 

 

 

510.8

 

 

 

1,308.6

 

 

 

2,617.3

 

 

 

(1,116.4

)

 

 

3,333.3

 

Long-term debt due after one

  year

 

 

—

 

 

 

2,179.4

 

 

 

2,460.1

 

 

 

1,035.0

 

 

 

—

 

 

 

5,674.5

 

Intercompany notes payable

 

 

—

 

 

 

—

 

 

 

2,865.4

 

 

 

917.3

 

 

 

(3,782.7

)

 

 

—

 

Pension liabilities, net of

  current portion

 

 

—

 

 

 

—

 

 

 

135.9

 

 

 

125.4

 

 

 

—

 

 

 

261.3

 

Postretirement benefit liabilities,

  net of current portion

 

 

—

 

 

 

—

 

 

 

28.1

 

 

 

106.7

 

 

 

—

 

 

 

134.8

 

Non-recourse liabilities held by

  special purpose entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,153.7

 

 

 

—

 

 

 

1,153.7

 

Deferred income taxes

 

 

—

 

 

 

—

 

 

 

291.0

 

 

 

2,037.6

 

 

 

(7.1

)

 

 

2,321.5

 

Other long-term liabilities

 

 

—

 

 

 

16.1

 

 

 

106.2

 

 

 

872.5

 

 

 

—

 

 

 

994.8

 

Redeemable noncontrolling

  interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.2

 

 

 

—

 

 

 

4.2

 

Total stockholders’ equity

 

 

(9.6

)

 

 

11,479.0

 

 

 

12,046.6

 

 

 

16,280.0

 

 

 

(28,326.6

)

 

 

11,469.4

 

Noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13.0

 

 

 

—

 

 

 

13.0

 

Total equity

 

 

(9.6

)

 

 

11,479.0

 

 

 

12,046.6

 

 

 

16,293.0

 

 

 

(28,326.6

)

 

 

11,482.4

 

Total Liabilities and Equity

 

$

3.4

 

 

$

14,185.3

 

 

$

19,241.9

 

 

$

25,162.7

 

 

$

(33,232.8

)

 

$

25,360.5

 
Condensed Consolidating Statements of Cash Flows

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2019

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for)

   operating activities

 

$

538.2

 

 

$

(203.8

)

 

$

442.1

 

 

$

1,533.7

 

 

$

—

 

 

$

2,310.2

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,369.1

)

 

 

—

 

 

 

(1,369.1

)

Cash paid related to business

   combinations, net of cash

   acquired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,374.2

)

 

 

—

 

 

 

(3,374.2

)

Investment in unconsolidated

   entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11.2

)

 

 

—

 

 

 

(11.2

)

Proceeds from sale of property,

   plant and equipment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

119.1

 

 

 

—

 

 

 

119.1

 

Proceeds from property, plant and

   equipment insurance settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25.5

 

 

 

—

 

 

 

25.5

 

Intercompany notes issued

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

(75.7

)

 

 

75.8

 

 

 

—

 

Intercompany notes proceeds

 

 

—

 

 

 

9.3

 

 

 

6.7

 

 

 

3,870.1

 

 

 

(3,886.1

)

 

 

—

 

Intercompany capital investment

 

 

(563.0

)

 

 

(563.0

)

 

 

—

 

 

 

—

 

 

 

1,126.0

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

30.2

 

 

 

0.1

 

 

 

—

 

 

 

30.3

 

Net cash (used for) provided by

    investing activities

 

 

(563.0

)

 

 

(553.7

)

 

 

36.8

 

 

 

(815.4

)

 

 

(2,684.3

)

 

 

(4,579.6

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of notes

 

 

—

 

 

 

2,498.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,498.2

 

Additions (repayments) to revolving

   credit facilities

 

 

—

 

 

 

46.0

 

 

 

—

 

 

 

(8.8

)

 

 

—

 

 

 

37.2

 

Additions to debt

 

 

—

 

 

 

4,101.8

 

 

 

—

 

 

 

959.8

 

 

 

—

 

 

 

5,061.6

 

Repayments of debt

 

 

—

 

 

 

(2,400.0

)

 

 

(957.5

)

 

 

(2,274.1

)

 

 

—

 

 

 

(5,631.6

)

Changes in commercial paper, net

 

 

—

 

 

 

339.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

339.2

 

Other financing additions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10.0

 

 

 

—

 

 

 

10.0

 

Issuances of common stock, net of

   related minimum tax withholdings

 

 

18.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18.3

 

Purchases of common stock

 

 

(88.6

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(88.6

)

Cash dividends paid to

   stockholders

 

 

(467.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(467.9

)

Cash distributions paid to

   noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4.3

)

 

 

—

 

 

 

(4.3

)

Intercompany notes borrowing

 

 

—

 

 

 

—

 

 

 

75.7

 

 

 

0.1

 

 

 

(75.8

)

 

 

—

 

Intercompany notes payments

 

 

—

 

 

 

(3,800.0

)

 

 

(70.1

)

 

 

(16.0

)

 

 

3,886.1

 

 

 

—

 

Intercompany capital receipt

 

 

563.0

 

 

 

—

 

 

 

—

 

 

 

563.0

 

 

 

(1,126.0

)

 

 

—

 

Other

 

 

—

 

 

 

(27.9

)

 

 

—

 

 

 

36.0

 

 

 

—

 

 

 

8.1

 

Net cash provided by (used for)

    financing activities

 

 

24.8

 

 

 

757.3

 

 

 

(951.9

)

 

 

(734.3

)

 

 

2,684.3

 

 

 

1,780.2

 

Effect of exchange rate changes on cash,

   cash equivalents and restricted cash

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.0

 

 

 

—

 

 

 

4.0

 

Decrease in cash, cash equivalents

   and restricted cash

 

 

—

 

 

 

(0.2

)

 

 

(473.0

)

 

 

(12.0

)

 

 

—

 

 

 

(485.2

)

Cash, cash equivalents and restricted

   cash at beginning of period

 

 

—

 

 

 

0.2

 

 

 

490.8

 

 

 

145.8

 

 

 

—

 

 

 

636.8

 

Cash, cash equivalents and restricted

   cash at end of period

 

$

—

 

 

$

—

 

 

$

17.8

 

 

$

133.8

 

 

$

—

 

 

$

151.6

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2018

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating

  activities

 

$

4.1

 

 

$

563.4

 

 

$

375.8

 

 

$

1,016.3

 

 

$

(28.4

)

 

$

1,931.2

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

 

—

 

 

 

(1.2

)

 

 

(998.7

)

 

 

—

 

 

 

(999.9

)

Cash paid for purchase of

  businesses, net of cash

  acquired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(239.9

)

 

 

—

 

 

 

(239.9

)

Cash receipts on sold trade

  receivables

 

 

—

 

 

 

—

 

 

 

—

 

 

 

461.6

 

 

 

—

 

 

 

461.6

 

Investment in unconsolidated entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(114.3

)

 

 

—

 

 

 

(114.3

)

Proceeds from sale of property, plant

  and equipment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23.3

 

 

 

—

 

 

 

23.3

 

Proceeds from property, plant and

  equipment insurance settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7.9

 

 

 

—

 

 

 

7.9

 

Intercompany notes issued

 

 

—

 

 

 

—

 

 

 

(1.4

)

 

 

—

 

 

 

1.4

 

 

 

—

 

Intercompany notes proceeds

 

 

—

 

 

 

—

 

 

 

4.5

 

 

 

—

 

 

 

(4.5

)

 

 

—

 

Intercompany capital investment

 

 

—

 

 

 

(2.0

)

 

 

—

 

 

 

—

 

 

 

2.0

 

 

 

—

 

Intercompany return of capital

 

 

—

 

 

 

—

 

 

 

82.6

 

 

 

—

 

 

 

(82.6

)

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

18.6

 

 

 

27.6

 

 

 

—

 

 

 

46.2

 

Net cash (used for) provided by

   investing activities

 

 

—

 

 

 

(2.0

)

 

 

103.1

 

 

 

(832.5

)

 

 

(83.7

)

 

 

(815.1

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of notes

 

 

—

 

 

 

1,197.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,197.3

 

Repayments to revolving credit

   facilities

 

 

—

 

 

 

(106.7

)

 

 

—

 

 

 

(8.8

)

 

 

—

 

 

 

(115.5

)

Additions to debt

 

 

—

 

 

 

2.7

 

 

 

—

 

 

 

852.5

 

 

 

—

 

 

 

855.2

 

Repayments of debt

 

 

(0.1

)

 

 

(1,025.2

)

 

 

(22.5

)

 

 

(985.1

)

 

 

—

 

 

 

(2,032.9

)

Other financing repayments

 

 

—

 

 

 

—

 

 

 

(8.9

)

 

 

(15.3

)

 

 

—

 

 

 

(24.2

)

Issuances of common stock, net of

  related minimum tax withholdings

 

 

—

 

 

 

26.6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26.6

 

Purchases of common stock

 

 

—

 

 

 

(195.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(195.1

)

Cash dividends paid to stockholders

 

 

—

 

 

 

(440.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(440.9

)

Cash distributions paid to

  noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(33.3

)

 

 

—

 

 

 

(33.3

)

Intercompany notes borrowing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.4

 

 

 

(1.4

)

 

 

—

 

Intercompany notes payments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4.5

)

 

 

4.5

 

 

 

—

 

Intercompany capital receipt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.0

 

 

 

(2.0

)

 

 

—

 

Intercompany capital distribution

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(82.6

)

 

 

82.6

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(28.4

)

 

 

28.4

 

 

 

—

 

Other

 

 

(4.0

)

 

 

(19.9

)

 

 

—

 

 

 

31.6

 

 

 

—

 

 

 

7.7

 

Net cash used for financing

  activities

 

 

(4.1

)

 

 

(561.2

)

 

 

(31.4

)

 

 

(270.5

)

 

 

112.1

 

 

 

(755.1

)

Effect of exchange rate changes on cash,

  cash equivalents and restricted cash

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(28.2

)

 

 

—

 

 

 

(28.2

)

Increase (decrease) in cash, cash

  equivalents and restricted cash

 

 

—

 

 

 

0.2

 

 

 

447.5

 

 

 

(114.9

)

 

 

—

 

 

 

332.8

 

Cash, cash equivalents and restricted

  cash at beginning of period

 

 

—

 

 

 

—

 

 

 

43.3

 

 

 

260.7

 

 

 

—

 

 

 

304.0

 

Cash, cash equivalents and restricted

  cash at end of period

 

$

—

 

 

$

0.2

 

 

$

490.8

 

 

$

145.8

 

 

$

—

 

 

$

636.8

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30, 2017

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

—

 

 

$

928.6

 

 

$

344.2

 

 

$

192.4

 

 

$

(1.4

)

 

$

1,463.8

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

 

—

 

 

 

(1.4

)

 

 

(777.2

)

 

 

—

 

 

 

(778.6

)

Cash paid for purchase of businesses, net of

  cash acquired

 

 

—

 

 

 

(61.0

)

 

 

(118.1

)

 

 

(1,409.4

)

 

 

—

 

 

 

(1,588.5

)

Cash receipts on sold trade receivables

 

 

—

 

 

 

—

 

 

 

—

 

 

 

411.2

 

 

 

—

 

 

 

411.2

 

Investment in unconsolidated entities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.5

)

 

 

—

 

 

 

(2.5

)

Proceeds from sale of HH&B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,005.9

 

 

 

—

 

 

 

1,005.9

 

Proceeds from sale of property, plant and

  equipment

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

52.4

 

 

 

—

 

 

 

52.6

 

Proceeds from property, plant and

  equipment insurance settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.5

 

 

 

—

 

 

 

3.5

 

Intercompany notes issued

 

 

—

 

 

 

(734.1

)

 

 

—

 

 

 

(523.3

)

 

 

1,257.4

 

 

 

—

 

Intercompany notes proceeds

 

 

—

 

 

 

5.0

 

 

 

2.4

 

 

 

523.3

 

 

 

(530.7

)

 

 

—

 

Intercompany capital investment

 

 

—

 

 

 

(200.0

)

 

 

(200.4

)

 

 

—

 

 

 

400.4

 

 

 

—

 

Intercompany return of capital

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

8.3

 

 

 

19.4

 

 

 

—

 

 

 

27.7

 

Net cash used for investing activities

 

 

—

 

 

 

(990.1

)

 

 

(309.0

)

 

 

(696.7

)

 

 

1,127.1

 

 

 

(868.7

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of notes

 

 

—

 

 

 

998.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

998.4

 

Additions to revolving credit

   facilities

 

 

—

 

 

 

421.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

421.8

 

Additions to debt

 

 

—

 

 

 

742.6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

742.6

 

Repayments of debt

 

 

—

 

 

 

(1,657.1

)

 

 

(206.6

)

 

 

(468.2

)

 

 

—

 

 

 

(2,331.9

)

Other financing (repayments) additions

 

 

—

 

 

 

—

 

 

 

(26.9

)

 

 

50.8

 

 

 

—

 

 

 

23.9

 

Issuances of common stock, net of related

  minimum tax withholdings

 

 

—

 

 

 

35.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

35.8

 

Purchases of common stock

 

 

—

 

 

 

(93.0

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(93.0

)

Cash dividends paid to stockholders

 

 

—

 

 

 

(403.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(403.2

)

Cash distributions paid to noncontrolling

   interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(47.0

)

 

 

—

 

 

 

(47.0

)

Intercompany notes borrowing

 

 

—

 

 

 

3.5

 

 

 

519.8

 

 

 

734.1

 

 

 

(1,257.4

)

 

 

—

 

Intercompany notes payments

 

 

—

 

 

 

(3.5

)

 

 

(519.8

)

 

 

(7.4

)

 

 

530.7

 

 

 

—

 

Intercompany capital receipt

 

 

—

 

 

 

—

 

 

 

200.0

 

 

 

200.4

 

 

 

(400.4

)

 

 

—

 

Intercompany capital distribution

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.4

)

 

 

1.4

 

 

 

—

 

Other

 

 

—

 

 

 

(3.2

)

 

 

—

 

 

 

0.4

 

 

 

—

 

 

 

(2.8

)

Net cash provided by (used for) financing

  activities

 

 

—

 

 

 

42.1

 

 

 

(33.5

)

 

 

461.7

 

 

 

(1,125.7

)

 

 

(655.4

)

Effect of exchange rate changes on cash, cash

  equivalents and restricted cash

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.1

)

 

 

—

 

 

 

(2.1

)

(Decrease) increase in cash, cash equivalents

  and restricted cash

 

 

—

 

 

 

(19.4

)

 

 

1.7

 

 

 

(44.7

)

 

 

—

 

 

 

(62.4

)

Cash, cash equivalents and restricted cash

  at beginning of period

 

 

—

 

 

 

19.4

 

 

 

41.6

 

 

 

305.4

 

 

 

—

 

 

 

366.4

 

Cash, cash equivalents and restricted cash

  at end of period

 

$

—

 

 

$

—

 

 

$

43.3

 

 

$

260.7

 

 

$

—

 

 

$

304.0

 

 
Summary of Non-Cash Transactions The table below summarizes these non-cash transactions.

 

 

Year Ended September 30, 2019

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany receivables

 

$

(140.9

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

140.9

 

 

$

—

 

Intercompany payables

 

$

—

 

 

$

—

 

 

$

—

 

 

$

140.9

 

 

$

(140.9

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes issued

 

$

—

 

 

$

(3,800.0

)

 

$

(4,667.2

)

 

$

(10,777.8

)

 

$

19,245.0

 

 

$

—

 

Intercompany notes proceeds

 

$

—

 

 

$

4,519.8

 

 

$

4,536.8

 

 

$

6,822.0

 

 

$

(15,878.6

)

 

$

—

 

Intercompany capital investment

 

$

(10,396.2

)

 

$

(5,895.5

)

 

$

(6,889.3

)

 

$

—

 

 

$

23,181.0

 

 

$

—

 

Intercompany return of capital

 

$

606.7

 

 

$

1,479.6

 

 

$

1,032.7

 

 

$

—

 

 

$

(3,119.0

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes borrowing

 

$

—

 

 

$

4,436.3

 

 

$

2,541.5

 

 

$

12,267.2

 

 

$

(19,245.0

)

 

$

—

 

Intercompany notes payments

 

$

—

 

 

$

—

 

 

$

(3,022.0

)

 

$

(12,856.6

)

 

$

15,878.6

 

 

$

—

 

Intercompany capital receipt

 

$

—

 

 

$

10,396.2

 

 

$

5,413.7

 

 

$

7,371.1

 

 

$

(23,181.0

)

 

$

—

 

Intercompany capital distribution

 

$

(563.0

)

 

$

(606.7

)

 

$

(457.5

)

 

$

(1,491.8

)

 

$

3,119.0

 

 

$

—

 

Intercompany dividends paid

 

$

—

 

 

$

—

 

 

$

(302.2

)

 

$

(1,435.0

)

 

$

1,737.2

 

 

$

—

 

 

The table below summarizes these non-cash transactions.

 

 

Year Ended September 30, 2018

 

(In millions)

 

Parent

 

 

Issuer

 

 

Guarantor Subsidiaries

 

 

Non-Guarantor Subsidiaries

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes issued

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(392.1

)

 

$

392.1

 

 

$

—

 

Intercompany notes proceeds

 

$

—

 

 

$

—

 

 

$

—

 

 

$

83.0

 

 

$

(83.0

)

 

$

—

 

Intercompany capital investment

 

$

—

 

 

$

(755.3

)

 

$

(335.3

)

 

$

—

 

 

$

1,090.6

 

 

$

—

 

Intercompany return of capital

 

$

—

 

 

$

1,356.3

 

 

$

766.0

 

 

$

—

 

 

$

(2,122.3

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes borrowing

 

$

—

 

 

$

—

 

 

$

392.1

 

 

$

—

 

 

$

(392.1

)

 

$

—

 

Intercompany notes payments

 

$

—

 

 

$

(69.0

)

 

$

(14.0

)

 

$

—

 

 

$

83.0

 

 

$

—

 

Intercompany capital receipt

 

$

—

 

 

$

—

 

 

$

736.9

 

 

$

353.7

 

 

$

(1,090.6

)

 

$

—

 

Intercompany capital distribution

 

$

—

 

 

$

—

 

 

$

(1,356.3

)

 

$

(766.0

)

 

$

2,122.3

 

 

$

—

 

Intercompany dividends paid

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(285.9

)

 

$

285.9

 

 

$

—

 

 

The table below summarizes these non-cash transactions.

 

 

Year Ended September 30, 2017

 

(In millions)

 

Parent

 

 

 

 

Issuer

 

 

 

 

Guarantor Subsidiaries

 

 

 

 

Non-Guarantor Subsidiaries

 

 

 

 

Eliminations

 

 

Consolidated Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes issued

 

$

—

 

 

 

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(1,673.9

)

 

 

 

$

1,673.9

 

 

$

—

 

Intercompany notes proceeds

 

$

—

 

 

 

 

$

1,604.9

 

 

 

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(1,604.9

)

 

$

—

 

Intercompany capital investment

 

$

—

 

 

 

 

$

(2,200.5

)

 

 

 

$

(2,908.0

)

 

 

 

$

—

 

 

 

 

$

5,108.5

 

 

$

—

 

Intercompany return of capital

 

$

—

 

 

 

 

$

1,083.6

 

 

 

 

$

1,556.2

 

 

 

 

$

—

 

 

 

 

$

(2,639.8

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany notes borrowing

 

$

—

 

 

 

 

$

69.0

 

 

 

 

$

1,604.9

 

 

 

 

$

—

 

 

 

 

$

(1,673.9

)

 

$

—

 

Intercompany notes payments

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(1,604.9

)

 

 

 

$

—

 

 

 

 

$

1,604.9

 

 

$

—

 

Intercompany capital receipt

 

$

—

 

 

 

 

$

—

 

 

 

 

$

1,728.4

 

 

 

 

$

3,380.1

 

 

 

 

$

(5,108.5

)

 

$

—

 

Intercompany capital distribution

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(1,083.6

)

 

 

 

$

(1,556.2

)

 

 

 

$

2,639.8

 

 

$

—

 

Intercompany dividends paid

 

$

—

 

 

 

 

$

—

 

 

 

 

$

(144.1

)

 

 

 

$

(204.5

)

 

 

 

$

348.6

 

 

$

—

 

 
v3.19.3
Operating Leases (Tables)
 12 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases As of September 30, 2019, future minimum lease payments under all noncancelable operating leases for the succeeding five fiscal years and thereafter are as follows (in millions):

Fiscal 2020

 

$

214.3

 

Fiscal 2021

 

 

180.1

 

Fiscal 2022

 

 

136.3

 

Fiscal 2023

 

 

108.3

 

Fiscal 2024

 

 

85.3

 

Thereafter

 

 

206.1

 

Total future minimum lease payments

 

$

930.4

 

 
v3.19.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Tables)
 12 Months Ended
Sep. 30, 2019
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, 2019 and 2018 (in millions):  

 

 

 

Deferred

(Loss) Income on Cash

Flow Hedges

 

 

Defined Benefit

Pension and

Postretirement

Plans

 

 

Foreign

Currency

Items

 

 

Available

for Sale

Security

 

 

Total (1)

 

Balance at September 30, 2017

 

$

(0.7

)

 

$

(462.5

)

 

$

5.2

 

 

$

0.7

 

 

$

(457.3

)

Other comprehensive (loss) income before

   reclassifications

 

 

—

 

 

 

(18.6

)

 

 

(234.4

)

 

 

0.8

 

 

 

(252.2

)

Amounts reclassified from accumulated

   other comprehensive loss (income)

 

 

0.5

 

 

 

15.2

 

 

 

—

 

 

 

(1.5

)

 

 

14.2

 

Net current period other comprehensive

   income (loss)

 

 

0.5

 

 

 

(3.4

)

 

 

(234.4

)

 

 

(0.7

)

 

 

(238.0

)

Balance at September 30, 2018

 

$

(0.2

)

 

$

(465.9

)

 

$

(229.2

)

 

$

—

 

 

$

(695.3

)

Other comprehensive income (loss) before

   reclassifications

 

 

1.1

 

 

 

(250.7

)

 

 

(142.7

)

 

 

—

 

 

 

(392.3

)

Amounts reclassified from accumulated

   other comprehensive (income) loss

 

 

(0.2

)

 

 

18.6

 

 

 

—

 

 

 

—

 

 

 

18.4

 

Net current period other comprehensive

   income (loss)

 

 

0.9

 

 

 

(232.1

)

 

 

(142.7

)

 

 

—

 

 

 

(373.9

)

Balance at September 30, 2019

 

$

0.7

 

 

$

(698.0

)

 

$

(371.9

)

 

$

—

 

 

$

(1,069.2

)

 

(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, 2019 and 2018 (in millions):

 

 

 

Years Ended September 30,

 

 

 

2019

 

 

2018

 

 

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Amortization of defined benefit pension and

   postretirement items: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses (2)

 

$

(22.7

)

 

 

5.9

 

 

$

(16.8

)

 

$

(20.9

)

 

 

5.9

 

 

$

(15.0

)

Prior service costs (2)

 

 

(2.4

)

 

 

0.6

 

 

 

(1.8

)

 

 

(0.3

)

 

 

0.1

 

 

 

(0.2

)

Subtotal defined benefit plans

 

 

(25.1

)

 

 

6.5

 

 

 

(18.6

)

 

 

(21.2

)

 

 

6.0

 

 

 

(15.2

)

Available for sale security (1)(3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.5

 

 

 

—

 

 

 

1.5

 

Derivative Instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap hedge gain (4)

 

 

0.3

 

 

 

(0.1

)

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency cash flow hedge loss (5)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.7

)

 

 

0.2

 

 

 

(0.5

)

Total reclassifications for the period

 

$

(24.8

)

 

$

6.4

 

 

$

(18.4

)

 

$

(20.4

)

 

$

6.2

 

 

$

(14.2

)

 

 

(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 5. Retirement Plans” for additional details.

(3)

These accumulated other comprehensive income components are included in other income, net.

(4)

These accumulated other comprehensive income components are included in interest expense, net.

(5)

These accumulated other comprehensive income components are included in net sales.

 
Schedule of Other Comprehensive (Loss) Income

A summary of the components of other comprehensive (loss) income, including noncontrolling interest, for the years ended September 30, 2019, 2018 and 2017, is as follows (in millions):

 

Fiscal 2019

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation loss

 

$

(143.4

)

 

$

—

 

 

$

(143.4

)

Deferred gain on cash flow hedges

 

 

1.5

 

 

 

(0.4

)

 

 

1.1

 

Reclassification adjustment of net gain on cash flow hedges

   included in earnings

 

 

(0.3

)

 

 

0.1

 

 

 

(0.2

)

Net actuarial loss arising during period

 

 

(335.9

)

 

 

87.4

 

 

 

(248.5

)

Amortization and settlement recognition of net actuarial loss

 

 

23.3

 

 

 

(6.1

)

 

 

17.2

 

Prior service cost arising during the period

 

 

(3.9

)

 

 

0.6

 

 

 

(3.3

)

Amortization of prior service cost

 

 

2.4

 

 

 

(0.6

)

 

 

1.8

 

Consolidated other comprehensive loss

 

 

(456.3

)

 

 

81.0

 

 

 

(375.3

)

Less: Other comprehensive loss attributable to noncontrolling

   interests

 

 

1.5

 

 

 

(0.1

)

 

 

1.4

 

Other comprehensive loss attributable to common

   stockholders

 

$

(454.8

)

 

$

80.9

 

 

$

(373.9

)

 

Fiscal 2018

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation loss

 

$

(234.4

)

 

$

—

 

 

$

(234.4

)

Reclassification adjustment of net loss on cash flow hedges

   included in earnings

 

 

0.7

 

 

 

(0.2

)

 

 

0.5

 

Net actuarial loss arising during period

 

 

(29.0

)

 

 

15.9

 

 

 

(13.1

)

Amortization and settlement recognition of net actuarial loss

 

 

20.9

 

 

 

(5.9

)

 

 

15.0

 

Prior service cost arising during the period

 

 

(7.8

)

 

 

2.3

 

 

 

(5.5

)

Amortization of prior service cost

 

 

0.3

 

 

 

(0.1

)

 

 

0.2

 

Unrealized gain on available for sale security

 

 

0.8

 

 

 

—

 

 

 

0.8

 

Reclassification adjustment of net gain on available for sale

   security included in earnings

 

 

(1.5

)

 

 

—

 

 

 

(1.5

)

Consolidated other comprehensive loss

 

 

(250.0

)

 

 

12.0

 

 

 

(238.0

)

Less: Other comprehensive income attributable to noncontrolling

   interests

 

 

—

 

 

 

—

 

 

 

—

 

Other comprehensive loss attributable to common

   stockholders

 

$

(250.0

)

 

$

12.0

 

 

$

(238.0

)

 

Fiscal 2017

 

Pre-Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency translation gain

 

$

80.7

 

 

$

—

 

 

$

80.7

 

Sale of HH&B, foreign currency

 

 

26.8

 

 

 

—

 

 

 

26.8

 

Reclassification adjustment of net gain on cash flow hedges

   included in earnings

 

 

(0.8

)

 

 

0.3

 

 

 

(0.5

)

Net actuarial gain arising during period

 

 

34.1

 

 

 

(11.9

)

 

 

22.2

 

Amortization and settlement recognition of net actuarial loss

 

 

56.4

 

 

 

(20.4

)

 

 

36.0

 

Prior service credit arising during the period

 

 

1.0

 

 

 

(0.3

)

 

 

0.7

 

Amortization of prior service credit

 

 

(0.4

)

 

 

0.2

 

 

 

(0.2

)

Unrealized gain on available for sale security

 

 

0.7

 

 

 

—

 

 

 

0.7

 

Sale of HH&B, defined benefit pension plans

 

 

4.2

 

 

 

(1.3

)

 

 

2.9

 

Consolidated other comprehensive income

 

 

202.7

 

 

 

(33.4

)

 

 

169.3

 

Less: Other comprehensive income attributable to noncontrolling

   interests

 

 

(0.2

)

 

 

—

 

 

 

(0.2

)

Other comprehensive income attributable to common

   stockholders

 

$

202.5

 

 

$

(33.4

)

 

$

169.1

 

 

 
v3.19.3
Share-Based Compensation (Tables)
 12 Months Ended
Sep. 30, 2019
Stock Based Compensation [Abstract]  
Summary of Share-based Compensation Plans

The table below shows the approximate number of shares: available for issuance, available for future grant, to be issued if restricted awards granted with a performance condition recorded at target achieve the maximum award, and if new grants pursuant to the plan are expected to be issued, each as adjusted as necessary for corporate actions (in millions).

 

 

Shares Available For Issuance

 

 

Shares Available For Future Grant

 

 

Shares To Be Issued If Performance Is Achieved At Maximum

 

 

Expect To Make New Awards

Amended and Restated 2016 Incentive Stock Plan (1)

 

 

11.7

 

 

 

5.1

 

 

 

2.3

 

 

Yes

2004 Incentive Stock Plan (1)(2)

 

 

15.8

 

 

 

3.1

 

 

 

0.0

 

 

No

2005 Performance Incentive Plan (1)(2)

 

 

12.8

 

 

 

9.0

 

 

 

0.0

 

 

No

RockTenn (SSCC) Equity Inventive Plan (1)(3)

 

 

7.9

 

 

 

5.9

 

 

 

0.0

 

 

No

 

(1)

As part of the Separation, equity-based incentive awards were generally adjusted to maintain the intrinsic value of awards immediately prior to the Separation. The number of unvested restricted stock awards and unexercised stock options and SARs at the time of the Separation were increased by an exchange factor of approximately 1.12. In addition, the exercise price of unexercised stock options and SARs at the time of the Separation was converted to decrease the exercise price by an exchange factor of approximately 1.12.

 

 

(2)

In connection with the Combination, WestRock assumed all RockTenn and MWV equity incentive plans. We issued awards to certain key employees and our directors pursuant to our RockTenn 2004 Incentive Stock Plan, as amended, and our MWV 2005 Performance Incentive Plan, as amended. The awards were converted into WestRock awards using the conversion factor as described in the Business Combination Agreement.

 

 

(3)

In connection with the Smurfit-Stone acquisition, we assumed the Smurfit-Stone equity incentive plan, which was renamed the Rock-Tenn Company (SSCC) Equity Incentive Plan. The awards were converted into shares of RockTenn common stock, options and restricted stock units, as applicable, using the conversion factor as described in the merger agreement.

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

As part of the KapStone Acquisition, we issued 2,665,462 options that were valued at a weighted average fair value of $20.99 per share using the Black-Scholes option pricing model. The weighted average significant assumptions used were:

 

 

 

2019

 

Expected term in years

 

 

3.1

 

Expected volatility

 

 

27.7

%

Risk-free interest rate

 

 

3.0

%

Dividend yield

 

 

4.1

%
Summary of Changes in Stock Options

The table below summarizes the changes in all stock options during the fiscal year ended September 30, 2019:

 

 

 

Stock

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

 

Aggregate

Intrinsic

Value

(in millions)

 

Outstanding at September 30, 2018

 

 

4,253,654

 

 

$

33.75

 

 

 

 

 

 

 

 

 

Granted

 

 

2,665,462

 

 

 

22.06

 

 

 

 

 

 

 

 

 

Exercised

 

 

(2,403,217

)

 

 

21.38

 

 

 

 

 

 

 

 

 

Expired

 

 

(84,560

)

 

 

42.04

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(35,162

)

 

 

26.52

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2019

 

 

4,396,177

 

 

$

33.32

 

 

3.7

 

 

$

26.7

 

Exercisable at September 30, 2019

 

 

4,296,067

 

 

$

33.48

 

 

 

3.6

 

 

$

25.7

 

Vested and expected to vest at September 30, 2019

 

 

4,394,409

 

 

$

33.33

 

 

3.7

 

 

$

26.7

 

 
Summary of Changes in SARs

The table below summarizes the changes in all SARs during the fiscal year ended September 30, 2019:

 

 

 

SARs

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

Aggregate

Intrinsic

Value

(in millions)

 

Outstanding at September 30, 2018

 

 

36,986

 

 

$

27.36

 

 

 

 

 

 

 

Exercised

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Expired

 

 

(2,014

)

 

 

9.02

 

 

 

 

 

 

 

Outstanding at September 30, 2019

 

 

34,972

 

 

$

28.41

 

 

1.5

 

$

0.3

 

Exercisable at September 30, 2019

 

 

34,972

 

 

$

28.41

 

 

1.5

 

$

0.3

 

 
Summary of restricted stock awards - vested, granted and changes

The table below summarizes the changes in unvested restricted stock during the fiscal year ended September 30, 2019:

 

 

 

Shares/Units

 

 

Weighted

Average

Grant Date Fair

Value

 

Unvested at September 30, 2018 (1)

 

 

3,224,174

 

 

$

51.01

 

Granted

 

 

3,673,445

 

 

 

38.71

 

Vested

 

 

(2,933,556

)

 

 

34.51

 

Forfeited

 

 

(318,525

)

 

 

50.43

 

Unvested at September 30, 2019 (1)

 

 

3,645,538

 

 

$

51.94

 

 

 

(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 grants to be attained at levels less than target. However, it is possible that the performance attained may vary.

The following table represents a summary of restricted stock shares granted in fiscal 2019, 2018 and 2017 with terms defined in the applicable grant letters. The shares are not deemed to be issued and carry voting rights until the relevant conditions defined in the award documents have been met, unless otherwise noted.

 

 

 

2019

 

 

2018

 

 

2017

 

Shares of restricted stock granted to non-employee directors (1)

 

 

39,792

 

 

 

23,285

 

 

 

26,521

 

Shares of restricted stock granted to employees:

 

 

 

 

 

 

 

 

 

 

 

 

Shares granted for attainment of a performance condition at

   an amount in excess of target (2)

 

 

1,149,592

 

 

 

45,964

 

 

 

340,319

 

Shares granted with a service condition and a Cash Flow Per

   Share performance condition at target (3)

 

 

652,465

 

 

 

432,655

 

 

 

507,070

 

Shares granted with a service condition and a relative Total

   Shareholder Return market condition at target (3)

 

 

407,300

 

 

 

259,695

 

 

 

301,980

 

Shares granted with a service condition (4)

 

 

682,264

 

 

 

354,512

 

 

 

309,850

 

Share of restricted stock assumed in purchase accounting:

 

 

 

 

 

 

 

 

 

 

 

 

Shares granted with a service condition (5)

 

 

742,032

 

 

 

—

 

 

 

119,373

 

Total restricted stock granted

 

 

3,673,445

 

 

 

1,116,111

 

 

 

1,605,113

 

 

 

(1)

Non-employee director grants generally vest over a period of up to one year and are deemed issued on the grant date and have voting and dividend rights.

(2)

Shares granted in the table above include shares subsequently issued for the level of performance attained in excess of target. Shares issued in fiscal 2019 for the fiscal 2016 Cash Flow Per Share were at 200% of target. Shares issued in fiscal 2018 for the fiscal 2015 Cash Flow Per Share were at 103.7% of target. Shares issued in fiscal 2017 for the fiscal 2014 Cash Flow Per Share were at 176.6% of target. Shares issued in fiscal 2017 also include shares accelerated for terminated employees primarily as a result of the Combination, which were achieved at between 146.5% and 200% of target.

(3)

These employee grants vest over approximately three years and have adjustable ranges from 0 - 200% of target subject to the level of performance attained in the respective award agreement. The employee grants with a relative Total Shareholder Return condition were valued using a Monte Carlo simulation, the terms of which are outlined below.

(4)

These shares vest over approximately three to four years.

(5)

These shares vest over approximately one to three years.

The following table represents a summary of restricted stock vested in fiscal 2019, 2018 and 2017 (in millions, except shares):

 

 

 

2019

 

 

2018

 

 

2017

 

Shares of restricted stock vested

 

 

2,933,556

 

 

 

697,717

 

 

 

1,112,909

 

Aggregate fair value of restricted stock vested

 

$

115.2

 

 

$

46.1

 

 

$

59.5

 

 
v3.19.3
Earnings per Share (Tables)
 12 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

 

$

862.9

 

 

$

1,906.1

 

 

$

708.2

 

Less: Distributed and undistributed income available to

   participating securities

 

 

(0.1

)

 

 

(0.2

)

 

 

(0.1

)

Distributed and undistributed income available to

   common stockholders

 

$

862.8

 

 

$

1,905.9

 

 

$

708.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

256.6

 

 

 

255.5

 

 

 

252.2

 

Effect of dilutive stock options and non-participating securities

 

 

2.5

 

 

 

4.3

 

 

 

3.5

 

Diluted weighted average shares outstanding

 

 

259.1

 

 

 

259.8

 

 

 

255.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to common

   stockholders

 

$

3.36

 

 

$

7.46

 

 

$

2.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to common

   stockholders

 

$

3.33

 

 

$

7.34

 

 

$

2.77

 

 
v3.19.3
Financial Results by Quarter (Unaudited) (Tables)
 12 Months Ended
Sep. 30, 2019
Financial Results By Quarter Unaudited [Abstract]  
Schedule of Quarterly Financial Information

Fiscal 2019

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

 

(In millions, except per share data)

 

Net sales

 

$

4,327.4

 

 

$

4,620.0

 

 

$

4,690.0

 

 

$

4,651.6

 

Cost of goods sold

 

$

3,545.6

 

 

$

3,720.4

 

 

$

3,701.1

 

 

$

3,572.9

 

(Gain) loss on disposal of assets

 

$

(43.8

)

 

$

—

 

 

$

6.5

 

 

$

(3.9

)

Multiemployer pension withdrawal income

 

$

—

 

 

$

—

 

 

$

(1.7

)

 

$

(4.6

)

Land and Development impairments

 

$

—

 

 

$

13.0

 

 

$

—

 

 

$

—

 

Restructuring and other costs

 

$

54.4

 

 

$

34.8

 

 

$

17.9

 

 

$

66.6

 

(Loss) gain on extinguishment of debt

 

$

(1.9

)

 

$

0.4

 

 

$

(3.2

)

 

$

(0.4

)

Income tax expense

 

$

(62.7

)

 

$

(47.2

)

 

$

(77.6

)

 

$

(89.3

)

Consolidated net income

 

$

139.8

 

 

$

161.9

 

 

$

253.8

 

 

$

312.4

 

Net income attributable to common stockholders

 

$

139.1

 

 

$

160.4

 

 

$

252.6

 

 

$

310.8

 

Basic earnings per share attributable to common

   stockholders

 

$

0.55

 

 

$

0.63

 

 

$

0.98

 

 

$

1.21

 

Diluted earnings per share attributable to common

   stockholders

 

$

0.54

 

 

$

0.62

 

 

$

0.98

 

 

$

1.20

 

 

Fiscal 2018

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

 

(In millions, except per share data)

 

Net sales

 

$

3,894.0

 

 

$

4,017.0

 

 

$

4,137.5

 

 

$

4,236.6

 

Cost of goods sold

 

$

3,120.5

 

 

$

3,227.6

 

 

$

3,270.4

 

 

$

3,304.6

 

Multiemployer pension withdrawal expense

 

$

180.0

 

 

$

—

 

 

$

4.2

 

 

$

—

 

Land and Development impairments

 

$

27.6

 

 

$

—

 

 

$

1.7

 

 

$

2.6

 

Restructuring and other costs

 

$

16.3

 

 

$

31.7

 

 

$

17.1

 

 

$

40.3

 

(Loss) gain on extinguishment of debt

 

$

(1.0

)

 

$

0.1

 

 

$

0.9

 

 

$

(0.1

)

Income tax benefit (expense)

 

$

1,073.2

 

 

$

(18.8

)

 

$

(84.5

)

 

$

(95.4

)

Consolidated net income

 

$

1,133.5

 

 

$

224.5

 

 

$

271.3

 

 

$

280.0

 

Net income attributable to common stockholders

 

$

1,135.1

 

 

$

223.2

 

 

$

268.2

 

 

$

279.6

 

Basic earnings per share attributable to common

   stockholders

 

$

4.45

 

 

$

0.87

 

 

$

1.05

 

 

$

1.10

 

Diluted earnings per share attributable to common

   stockholders

 

$

4.38

 

 

$

0.86

 

 

$

1.03

 

 

$

1.08

 
v3.19.3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details)
 3 Months Ended 12 Months Ended
Oct. 01, 2019
USD ($)
Dec. 22, 2017
Jan. 23, 2017
USD ($)
Jun. 30, 2019
Sep. 30, 2019
USD ($)
MMBTU
Sep. 30, 2018
USD ($)
Sep. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Proceeds from sale of HH&B             $ 1,005,900,000  
Gain on sale of HH&B             192,800,000  
Percentage of FIFO Inventory         39.00% 31.00%    
Interest Costs, Capitalized During Period         $ 23,800,000 $ 8,200,000 7,000,000.0  
Percentage of our mill assets as measured at cost with a life of 25 years or less         90.00%      
Increase in discount rate to estimate fair value of reporting unit         1.00%      
Goodwill         $ 7,285,600,000 5,577,600,000 5,528,300,000 $ 4,778,100,000
Finite-Lived Intangible Assets, Useful Life         15 years 3 months 18 days      
Notional amount of natural gas commodity derivatives | MMBTU         8.4      
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent   21.00%            
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         3 years      
Asset Retirement Obligation         $ 72,500,000 72,900,000    
Deferred maintenance costs         124,300,000 83,400,000    
Foreign Currency Transaction Gain, after Tax         18,500,000 12,200,000 4,300,000  
Consumer Packaging [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Reporting unit, percentage of fair value in excess of carrying value       10.00%        
Goodwill         3,590,600,000 3,610,900,000 3,586,800,000 $ 2,979,800,000
Victory Packaging [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Reporting unit, percentage of fair value in excess of carrying value       10.00%        
Goodwill         $ 40,200,000      
Home, Health and Beauty Business [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Proceeds from sale of HH&B     $ 1,025,000,000.000          
Foreign Pension Liabilities Divested Due to Sale of Business     $ 25,000,000          
Gain on sale of HH&B             $ 192,800,000  
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       8.50%        
Reporting unit, growth rate       0.00%        
Finite-Lived Intangible Assets, Useful Life         1 year      
Minimum [Member] | ASU 2018-02 [Member] | Subsequent Event [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Reclassification of stranded tax effects from accumulated other comprehensive income to retained earnings $ 70,000,000              
Minimum [Member] | ASU 2018-20 [Member] | Subsequent Event [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Right-of-use asset 730,000,000              
Lease liability 730,000,000              
Minimum [Member] | Building and Building Improvements [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Property, Plant and Equipment, Useful Life         15 years      
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      
Minimum [Member] | Transportation Equipment [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Property, Plant and Equipment, Useful Life         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      
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       14.00%        
Reporting unit, growth rate       1.00%        
Finite-Lived Intangible Assets, Useful Life         40 years      
Maximum [Member] | ASU 2018-02 [Member] | Subsequent Event [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Reclassification of stranded tax effects from accumulated other comprehensive income to retained earnings 75,000,000              
Maximum [Member] | ASU 2018-20 [Member] | Subsequent Event [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Right-of-use asset 760,000,000              
Lease liability $ 760,000,000              
Maximum [Member] | Building and Building Improvements [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Property, Plant and Equipment, Useful Life         40 years      
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      
Maximum [Member] | Transportation Equipment [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Property, Plant and Equipment, Useful Life         8 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      
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      
Maximum [Member] | Leasehold Improvements [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Property, Plant and Equipment, Useful Life         10 years      
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      
Foreign Exchange Contract [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Derivative, Notional Amount         $ 351,000,000.0 356,000,000.0    
Interest Rate Contract [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Derivative, Notional Amount         $ 600,000,000.0 0    
Commodity Contract [Member]                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Derivative, Notional Amount           $ 0    
v3.19.3
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, 2019
Sep. 30, 2018
Sep. 30, 2017
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of fiscal year $ 49.7 $ 45.8 $ 36.5
Reduction in sales and charges to costs and expenses 259.6 202.8 215.6
Deductions (256.1) (198.9) (206.3)
Balance at end of fiscal year $ 53.2 $ 49.7 $ 45.8
v3.19.3
Description of Business and Summary of Significant Accounting Policies - Property, Plant and Equipment, Estimated Useful Lives (Details)
 12 Months Ended
Sep. 30, 2019
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
v3.19.3
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Oct. 01, 2018
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Disaggregation Of Revenue [Line Items]                        
Net sales                   $ 18,289.0 $ 16,285.1 $ 14,859.7
Cost of goods sold   $ 3,572.9 $ 3,701.1 $ 3,720.4 $ 3,545.6 $ 3,304.6 $ 3,270.4 $ 3,227.6 $ 3,120.5 14,540.0 12,923.1 12,141.5
Retained earnings   1,997.1       1,573.3       1,997.1 1,573.3  
Income tax (expense) benefit   $ 89.3 $ 77.6 $ 47.2 $ 62.7 $ 95.4 $ 84.5 $ 18.8 $ (1,073.2) $ (276.8) $ 874.5 $ (159.0)
Revenue performance obligation, practical expedient                   true    
Revenue, performance obligation satisfied at point in time                   one year or less    
Maximum [Member]                        
Disaggregation Of Revenue [Line Items]                        
Capitalized contract cost, amortization period   1 year               1 year    
Impact of Adoption Increase/(Decrease) [Member] | ASC 606 [Member]                        
Disaggregation Of Revenue [Line Items]                        
Net sales $ 183.7                 $ (8.7)    
Cost of goods sold 133.4                 (15.4)    
Retained earnings 43.5 $ 48.6               48.6    
Income tax (expense) benefit $ (6.8)                 $ (1.6)    
v3.19.3
Revenue Recognition - Summary of Effect of Adoption of ASC 606 Impact on Consolidated Statements of Income (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Oct. 01, 2018
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Disaggregation Of Revenue [Line Items]                        
Net sales                   $ 18,289.0 $ 16,285.1 $ 14,859.7
Cost of goods sold   $ 3,572.9 $ 3,701.1 $ 3,720.4 $ 3,545.6 $ 3,304.6 $ 3,270.4 $ 3,227.6 $ 3,120.5 14,540.0 12,923.1 12,141.5
Income tax (expense) benefit   89.3 77.6 47.2 62.7 95.4 84.5 18.8 (1,073.2) (276.8) 874.5 (159.0)
Consolidated net income   $ 312.4 $ 253.8 $ 161.9 $ 139.8 $ 280.0 $ 271.3 $ 224.5 $ 1,133.5 867.9 $ 1,909.3 $ 698.6
ASC 606 [Member] | Balances Without Adoption of ASC 606 [Member]                        
Disaggregation Of Revenue [Line Items]                        
Net sales                   18,297.7    
Cost of goods sold                   14,555.4    
Income tax (expense) benefit                   (275.2)    
Consolidated net income                   862.8    
ASC 606 [Member] | Impact of Adoption Increase/(Decrease) [Member]                        
Disaggregation Of Revenue [Line Items]                        
Net sales $ 183.7                 (8.7)    
Cost of goods sold 133.4                 (15.4)    
Income tax (expense) benefit $ (6.8)                 (1.6)    
Consolidated net income                   $ 5.1    
v3.19.3
Revenue Recognition - Summary of Effect of Adoption of ASC 606 Impact on Consolidated Balance Sheet (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Oct. 01, 2018
Sep. 30, 2018
Disaggregation Of Revenue [Line Items]      
Inventories $ 2,107.5   $ 1,829.6
Other current assets 496.2   248.5
Other current liabilities 571.8   476.5
Retained earnings 1,997.1   $ 1,573.3
ASC 606 [Member] | Balances Without Adoption of ASC 606 [Member]      
Disaggregation Of Revenue [Line Items]      
Inventories 2,237.3    
Other current assets 308.2    
Other current liabilities 570.2    
Retained earnings 1,948.5    
ASC 606 [Member] | Impact of Adoption Increase/(Decrease) [Member]      
Disaggregation Of Revenue [Line Items]      
Inventories (129.8)    
Other current assets 188.0    
Other current liabilities 1.6    
Retained earnings $ 48.6 $ 43.5  
v3.19.3
Revenue Recognition - Summary of Effect of Adoption of ASC 606 Impact on Consolidated Statement of Cash Flows (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Disaggregation Of Revenue [Line Items]                      
Consolidated net income $ 312.4 $ 253.8 $ 161.9 $ 139.8 $ 280.0 $ 271.3 $ 224.5 $ 1,133.5 $ 867.9 $ 1,909.3 $ 698.6
Other assets                 (124.6) (67.7) (44.7)
Inventories                 (110.5) (72.1) (48.2)
Income taxes                 7.2 $ 130.6 $ (67.1)
ASC 606 [Member] | Balances Without Adoption of ASC 606 [Member]                      
Disaggregation Of Revenue [Line Items]                      
Consolidated net income                 862.8    
Other assets                 (133.3)    
Inventories                 (95.1)    
Income taxes                 5.6    
ASC 606 [Member] | Impact of Adoption Increase/(Decrease) [Member]                      
Disaggregation Of Revenue [Line Items]                      
Consolidated net income                 5.1    
Other assets                 8.7    
Inventories                 (15.4)    
Income taxes                 $ 1.6    
v3.19.3
Revenue Recognition - Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Disaggregation Of Revenue [Line Items]      
Net sales $ 18,289.0 $ 16,285.1 $ 14,859.7
Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 11,816.7    
Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 6,606.0    
Land and Development [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 23.4    
Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (157.1) (167.8) (167.2)
Intersegment Sales [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (75.3) (87.3) (78.8)
Intersegment Sales [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (81.8) $ (80.5) $ (88.4)
North America [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 16,349.2    
North America [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 11,314.7    
North America [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 5,166.6    
North America [Member] | Land and Development [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 23.4    
North America [Member] | Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (155.5)    
South America [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 510.4    
South America [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 437.2    
South America [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 73.2    
Europe [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,066.2    
Europe [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1.6    
Europe [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,064.7    
Europe [Member] | Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales (0.1)    
Asia Pacific [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 363.2    
Asia Pacific [Member] | Corrugated Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 63.2    
Asia Pacific [Member] | Consumer Packaging [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 301.5    
Asia Pacific [Member] | Intersegment Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales $ (1.5)    
v3.19.3
Revenue Recognition - Summary of Opening and Closing Balances of Contract Assets and Contract Liabilities (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2019
USD ($)
Contract With Customer Asset And Liability [Line Items]  
Short-Term Contract Assets, Beginning balance $ 183.7
(Decrease) / Increase in Short-Term Contract Assets (8.7)
Short-Term Contract Assets, Ending balance 188.0
Short-Term Contract Liabilities, Beginning balance 7.9
(Decrease) / increase in Short-Term Contract Liabilities (0.2)
Short-Term Contract Liabilities, Ending balance 7.7
KapStone Acquisition [Member]  
Contract With Customer Asset And Liability [Line Items]  
(Decrease) / Increase in Short-Term Contract Assets $ 13.0
v3.19.3
Acquisitions and Investment - Additional Information (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Nov. 02, 2018
USD ($)
$ / shares
shares
Sep. 04, 2018
USD ($)
Jan. 05, 2018
USD ($)
T
Oct. 20, 2017
USD ($)
Aug. 01, 2017
USD ($)
Jul. 17, 2017
USD ($)
Jun. 09, 2017
USD ($)
shares
T
Jun. 06, 2017
USD ($)
$ / shares
Mar. 13, 2017
USD ($)
T
Apr. 01, 2016
USD ($)
PackagingFacility
Sep. 30, 2019
USD ($)
$ / shares
Sep. 30, 2018
USD ($)
$ / shares
Sep. 30, 2017
USD ($)
shares
Apr. 30, 2017
Sep. 30, 2016
USD ($)
Business Acquisition [Line Items]                              
Common Stock, Par or Stated Value Per Share | $ / shares $ 0.01                   $ 0.01 $ 0.01      
Number of WRKCo Shares to WestRock Shares | shares 1                            
Finite-Lived Intangible Assets, Useful Life                     15 years 3 months 18 days        
Goodwill                     $ 7,285.6 $ 5,577.6 $ 5,528.3   $ 4,778.1
Equity Method Investments                     469.1 457.8 $ 360.6    
Gross Carrying Amount                     $ 5,654.3 4,318.3      
Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life                     15 years 3 months 18 days        
Gross Carrying Amount                     $ 5,395.5 4,123.7      
Minimum [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life                     1 year        
Maximum [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life                     40 years        
WRKCo Inc. [Member]                              
Business Acquisition [Line Items]                              
Common Stock, Par or Stated Value Per Share | $ / shares $ 0.01                            
KapStone Acquisition [Member]                              
Business Acquisition [Line Items]                              
Common Stock, Par or Stated Value Per Share | $ / shares 0.0001                            
Business Acquisition, Share Price | $ / shares $ 35.00                            
Ratio of KapStone Shares to WestRock Shares 49.81%                            
Maximum percentage of issued and outstanding KapStone Shares to elect WestRock stock consideration 25.00%                            
Estimated Enterprise Value of Acquisition $ 4,900.0                            
Consideration paid in cash $ 3,300.0                            
Business acquisition, number of shares issued | shares 1,600,000                            
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable $ 70.1                            
Business acquisition, percentage of equity interest on shares issued and outstanding 0.60%                            
Fair value of share-based awards issued in business combinations $ 70.8                            
Goodwill 1,755.0                            
Property, plant and equipment, net 1,910.3                            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities 2,442.1                            
Cash and cash equivalents 8.6                            
Other long-term assets $ 27.9                            
KapStone Acquisition [Member] | Minimum [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life 1 year                            
KapStone Acquisition [Member] | Maximum [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life 20 years                            
Schluter Acquisition [Member]                              
Business Acquisition [Line Items]                              
Business Acquisition, Cost of Acquired Entity, Purchase Price Net of Cash Acquired   $ 50.6                          
Business Acquisition, Purchase Price Allocation, Notes Payable and LT Debt   $ 7.5                          
Acquisition date   Sep. 04, 2018                          
Goodwill   $ 23.7                          
Property, plant and equipment, net   26.5                          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities   $ 21.1                          
Schluter Acquisition [Member] | Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life   10 years 6 months                          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles   $ 9.1                          
Plymouth Packaging [Member]                              
Business Acquisition [Line Items]                              
Acquisition date     Jan. 05, 2018                        
Goodwill     $ 59.6                        
Property, plant and equipment, net     36.2                        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities     12.6                        
Business Acquisition, Cost of Acquired Entity, Preliminary Purchase Price     203.9                        
Cash and cash equivalents     $ 3.1                        
Annual tons of fully integrated containerboard used | T     60,000                        
Other long-term assets     $ 26.2                        
Plymouth Packaging [Member] | Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life     13 years                        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles     $ 61.9                        
Grupo Gondi Investment [Member]                              
Business Acquisition [Line Items]                              
Acquisition date                   Apr. 01, 2016          
Payments to Acquire Interest in Joint Venture       $ 108.0           $ 175.0          
Number of corrugated packaging facilities | PackagingFacility                   3          
Equity Method Investment, Ownership Percentage       32.30%           25.00%       27.00%  
Equity Method Investments                   $ 300.0          
Hannapak [Member]                              
Business Acquisition [Line Items]                              
Business Acquisition, Cost of Acquired Entity, Purchase Price Net of Cash Acquired         $ 60.4                    
Acquisition date         Aug. 01, 2017                    
Goodwill         $ 24.0                    
Property, plant and equipment, net         9.8                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities         13.7                    
Cash and cash equivalents         $ 0.6                    
Hannapak [Member] | Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life         13 years                    
Gross Carrying Amount         $ 22.2                    
Island Container [Member]                              
Business Acquisition [Line Items]                              
Business Acquisition, Cost of Acquired Entity, Purchase Price Net of Cash Acquired           $ 84.7                  
Acquisition date           Jul. 17, 2017                  
Goodwill           $ 27.2                  
Property, plant and equipment, net           5.4                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities           $ 0.8                  
Business acquisition, working capital settlement paid                       1.2      
Island Container [Member] | Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life           8 years 6 months                  
Gross Carrying Amount           $ 43.0                  
U.S. Corrugated [Member]                              
Business Acquisition [Line Items]                              
Business acquisition, number of shares issued | shares             2,400,000           2,400,000    
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable             $ 136.1           $ 136.1    
Acquisition date             Jun. 09, 2017                
Goodwill             $ 110.5                
Property, plant and equipment, net             30.0                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities             55.5                
Cash and cash equivalents             $ 1.4                
Increase in Containerboard Tons Due to the Vertical Integration of our Corrugated Packaging Segment | T             105,000                
Increase in Containerboard Tons Due to Long-term Supply Contract | T             50,000                
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination             $ 193.7                
Business acquisition, working capital settlement received                       $ 3.4      
U.S. Corrugated [Member] | Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life             7 years 6 months                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles             $ 77.8                
MPS [Member]                              
Business Acquisition [Line Items]                              
Business Acquisition, Share Price | $ / shares               $ 18.00              
Fair value of share-based awards issued in business combinations               $ 1.9              
Business Acquisition, Cost of Acquired Entity, Purchase Price Net of Cash Acquired               1,351.1              
Business Acquisition, Purchase Price Allocation, Notes Payable and LT Debt               $ 929.1              
Acquisition date               Jun. 06, 2017              
Goodwill               $ 900.9              
Property, plant and equipment, net               469.9              
Cash and cash equivalents               47.5              
Total liabilities and noncontrolling interest assumed               1,561.6              
MPS [Member] | Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Gross Carrying Amount               $ 1,026.4              
MPS [Member] | Minimum [Member] | Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life               13 years              
MPS [Member] | Maximum [Member] | Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life               16 years              
Star Pizza Acquisition [Member]                              
Business Acquisition [Line Items]                              
Business Acquisition, Cost of Acquired Entity, Purchase Price Net of Cash Acquired                 $ 34.6            
Acquisition date                 Mar. 13, 2017            
Goodwill                 $ 2.2            
Annual tons of fully integrated containerboard used | T                 22,000            
Business Acquisition, Working Capital Settlement                 $ 0.7            
Star Pizza Acquisition [Member] | Customer Relationships [Member]                              
Business Acquisition [Line Items]                              
Finite-Lived Intangible Assets, Useful Life                 10 years            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles                 $ 24.8            
v3.19.3
Acquisitions and Investment - Summary of Fair Values of Assets Acquired and Liabilities Assumed by Major Class of Assets and Liabilities and Measurement Period Adjustments (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Nov. 02, 2018
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Business Acquisition [Line Items]          
Goodwill $ 7,285.6   $ 5,577.6 $ 5,528.3 $ 4,778.1
Total assets acquired $ 5,948.9   $ 303.2 $ 3,342.4  
KapStone Acquisition [Member]          
Business Acquisition [Line Items]          
Cash and cash equivalents   $ 8.6      
Current assets, excluding cash and cash equivalents   878.9      
Property, plant and equipment, net   1,910.3      
Goodwill   1,755.0      
Intangible assets   1,336.1      
Other long-term assets   27.9      
Total assets acquired   5,916.8      
Current portion of debt   33.3      
Current liabilities   337.5      
Long-term debt due after one year   1,333.4      
Accrued pension and other long-term benefits   9.8      
Deferred income taxes   609.7      
Other long-term liabilities   118.4      
Total liabilities assumed   2,442.1      
Net assets acquired   3,474.7      
KapStone Acquisition [Member] | Measurement Period Adjustments [Member]          
Business Acquisition [Line Items]          
Current assets, excluding cash and cash equivalents [1]   (18.7)      
Property, plant and equipment, net [1]   11.5      
Goodwill [1]   (13.8)      
Intangible assets [1]   30.3      
Other long-term assets [1]   (0.1)      
Total assets acquired [1]   9.2      
Current liabilities [1]   7.6      
Accrued pension and other long-term benefits [1]   2.1      
Deferred income taxes [1]   (2.9)      
Other long-term liabilities [1]   2.4      
Total liabilities assumed [1]   9.2      
KapStone Acquisition [Member] | As Adjusted [Member]          
Business Acquisition [Line Items]          
Cash and cash equivalents [2]   8.6      
Current assets, excluding cash and cash equivalents [2]   860.2      
Property, plant and equipment, net [2]   1,921.8      
Goodwill [2]   1,741.2      
Intangible assets [2]   1,366.4      
Other long-term assets [2]   27.8      
Total assets acquired [2]   5,926.0      
Current portion of debt [2]   33.3      
Current liabilities [2]   345.1      
Long-term debt due after one year [2]   1,333.4      
Accrued pension and other long-term benefits [2]   11.9      
Deferred income taxes [2]   606.8      
Other long-term liabilities [2]   120.8      
Total liabilities assumed [2]   2,451.3      
Net assets acquired [2]   $ 3,474.7      
[1] The measurement period adjustments recorded in fiscal 2019 did not have a significant impact on our consolidated statements of income for the year ended September 30, 2019.
[2] The measurement period adjustments were primarily due to refinements to third party appraisals and carrying amounts of certain assets and liabilities, as well as adjustments to certain tax accounts based on, among other things, adjustments to deferred tax liabilities. The net impact of the measurement period adjustments resulted in a net decrease to goodwill.
v3.19.3
Acquisitions and Investment - Summary of Weighted Average Life and Fair Value of Intangible Asset Recognized in Acquisition, Excluding Goodwill (Details) - KapStone Acquisition [Member]
$ in Millions
Nov. 02, 2018
USD ($)
Acquired Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Assets, Useful Life 11 years 10 months 24 days
Gross Carrying Amount $ 1,366.4
Customer Relationships [Member]  
Acquired Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Assets, Useful Life 11 years 8 months 12 days
Gross Carrying Amount $ 1,303.0
Trademarks and Tradenames [Member]  
Acquired Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Assets, Useful Life 16 years 10 months 24 days
Gross Carrying Amount $ 54.2
Favorable Contracts [Member]  
Acquired Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Assets, Useful Life 6 years
Gross Carrying Amount $ 9.2
v3.19.3
Acquisitions and Investment - Summary of Weighted Average Life and Allocation and Fair Value of Intangible Asset Recognized in Acquisition, Excluding Goodwill (Details) - MPS [Member]
$ in Millions
Jun. 06, 2017
USD ($)
Acquired Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Assets, Useful Life 14 years 4 months 24 days
Gross Carrying Amount $ 1,026.4
Customer Relationships [Member]  
Acquired Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Assets, Useful Life 14 years 7 months 6 days
Gross Carrying Amount $ 1,008.7
Trademarks and Tradenames [Member]  
Acquired Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Assets, Useful Life 3 years
Gross Carrying Amount $ 15.2
Patents [Member]  
Acquired Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Assets, Useful Life 10 years
Gross Carrying Amount $ 2.5
v3.19.3
Restructuring and Other Costs - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Restructuring And Related Activities [Abstract]      
Restructuring and other costs $ 173.7 $ 105.4 $ 196.7
Restructuring and other costs, noncash $ 56.5 $ 27.0 $ 86.6
v3.19.3
Restructuring and Other Costs - Schedule of Restructuring and Other Costs (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Restructuring And Related Activities [Abstract]                      
Restructuring                 $ 111.0 $ 39.5 $ 113.4
Other                 62.7 65.9 83.3
Restructuring and Other Costs $ 66.6 $ 17.9 $ 34.8 $ 54.4 $ 40.3 $ 17.1 $ 31.7 $ 16.3 $ 173.7 $ 105.4 $ 196.7
v3.19.3
Restructuring and Other Costs - Schedule of Restructuring Charges Related to Active Restructuring Initiatives (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost $ 111.0 $ 39.5 $ 113.4
Restructuring and Related Cost, Cost Incurred to Date 640.1    
Restructuring and Related Cost, Expected Cost 649.7    
Net Property, Plant and Equipment [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 32.6 9.7 31.6
Restructuring and Related Cost, Cost Incurred to Date 273.7    
Restructuring and Related Cost, Expected Cost 273.7    
Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 60.5 9.9 47.3
Restructuring and Related Cost, Cost Incurred to Date 250.7    
Restructuring and Related Cost, Expected Cost 250.8    
Equipment and Inventory Relocation Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 5.8 5.8 4.7
Restructuring and Related Cost, Cost Incurred to Date 18.8    
Restructuring and Related Cost, Expected Cost 20.5    
Facility Carrying Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 4.1 4.2 6.1
Restructuring and Related Cost, Cost Incurred to Date 34.9    
Restructuring and Related Cost, Expected Cost 36.0    
Other Costs Related to Restructuring and Other Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 8.0 9.9 23.7
Restructuring and Related Cost, Cost Incurred to Date 62.0    
Restructuring and Related Cost, Expected Cost 68.7    
Corporate, Non-Segment [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 40.0 5.6 19.6
Restructuring and Related Cost, Cost Incurred to Date 157.7    
Restructuring and Related Cost, Expected Cost 157.7    
Corporate, Non-Segment [Member] | Net Property, Plant and Equipment [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost     0.1
Restructuring and Related Cost, Cost Incurred to Date 1.4    
Restructuring and Related Cost, Expected Cost 1.4    
Corporate, Non-Segment [Member] | Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 37.5 0.8 14.8
Restructuring and Related Cost, Cost Incurred to Date 138.2    
Restructuring and Related Cost, Expected Cost 138.2    
Corporate, Non-Segment [Member] | Other Costs Related to Restructuring and Other Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 2.5 4.8 4.7
Restructuring and Related Cost, Cost Incurred to Date 18.1    
Restructuring and Related Cost, Expected Cost 18.1    
Corrugated Packaging [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 58.9 11.6 13.8
Restructuring and Related Cost, Cost Incurred to Date 349.1    
Restructuring and Related Cost, Expected Cost 358.7    
Corrugated Packaging [Member] | Net Property, Plant and Equipment [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 32.1 2.9 1.5
Restructuring and Related Cost, Cost Incurred to Date 230.1    
Restructuring and Related Cost, Expected Cost 230.1    
Corrugated Packaging [Member] | Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 16.9 1.9 5.8
Restructuring and Related Cost, Cost Incurred to Date 59.3    
Restructuring and Related Cost, Expected Cost 59.4    
Corrugated Packaging [Member] | Equipment and Inventory Relocation Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 4.8 3.4 2.2
Restructuring and Related Cost, Cost Incurred to Date 12.5    
Restructuring and Related Cost, Expected Cost 14.2    
Corrugated Packaging [Member] | Facility Carrying Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 3.9 3.3 5.4
Restructuring and Related Cost, Cost Incurred to Date 32.7    
Restructuring and Related Cost, Expected Cost 33.8    
Corrugated Packaging [Member] | Other Costs Related to Restructuring and Other Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 1.2 0.1 (1.1)
Restructuring and Related Cost, Cost Incurred to Date 14.5    
Restructuring and Related Cost, Expected Cost 21.2    
Consumer Packaging [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 12.0 19.0 75.4
Restructuring and Related Cost, Cost Incurred to Date 114.7    
Restructuring and Related Cost, Expected Cost 114.7    
Consumer Packaging [Member] | Net Property, Plant and Equipment [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 0.5 6.8 28.2
Restructuring and Related Cost, Cost Incurred to Date 40.4    
Restructuring and Related Cost, Expected Cost 40.4    
Consumer Packaging [Member] | Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 6.0 6.9 23.9
Restructuring and Related Cost, Cost Incurred to Date 39.4    
Restructuring and Related Cost, Expected Cost 39.4    
Consumer Packaging [Member] | Equipment and Inventory Relocation Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 1.0 2.4 2.5
Restructuring and Related Cost, Cost Incurred to Date 6.3    
Restructuring and Related Cost, Expected Cost 6.3    
Consumer Packaging [Member] | Facility Carrying Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 0.2 0.9 0.7
Restructuring and Related Cost, Cost Incurred to Date 2.2    
Restructuring and Related Cost, Expected Cost 2.2    
Consumer Packaging [Member] | Other Costs Related to Restructuring and Other Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost [1] 4.3 2.0 20.1
Restructuring and Related Cost, Cost Incurred to Date [1] 26.4    
Restructuring and Related Cost, Expected Cost [1] 26.4    
Land and Development [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 0.1 3.3 4.6
Restructuring and Related Cost, Cost Incurred to Date 18.6    
Restructuring and Related Cost, Expected Cost 18.6    
Land and Development [Member] | Net Property, Plant and Equipment [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost     1.8
Restructuring and Related Cost, Cost Incurred to Date 1.8    
Restructuring and Related Cost, Expected Cost 1.8    
Land and Development [Member] | Severance and Other Employee Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 0.1 0.3 $ 2.8
Restructuring and Related Cost, Cost Incurred to Date 13.8    
Restructuring and Related Cost, Expected Cost 13.8    
Land and Development [Member] | Other Costs Related to Restructuring and Other Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost   $ 3.0  
Restructuring and Related Cost, Cost Incurred to Date 3.0    
Restructuring and Related Cost, Expected Cost $ 3.0    
[1] Includes a $17.6 million impairment of a customer relationship intangible in fiscal 2017 related to an exited product line.
v3.19.3
Restructuring and Other Costs - Schedule of Restructuring Charges Related to Active Restructuring Initiatives (Parenthetical) (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2017
USD ($)
Customer Relationships [Member] | Consumer Packaging [Member]  
Restructuring Cost And Reserve [Line Items]  
Impairment of intangible assets, finite-lived $ 17.6
v3.19.3
Restructuring and Other Costs - Schedule of Acquisition, Divestiture and Integration Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Restructuring Cost And Reserve [Line Items]      
Acquisition costs $ 28.2 $ 38.2 $ 27.1
Integration costs 34.3 22.0 41.2
Divestiture costs 0.2 0.3 9.8
Other total 62.7 65.9 83.3
Other Segments [Member]      
Restructuring Cost And Reserve [Line Items]      
Acquisition costs 28.2 38.2 27.1
Integration costs 34.3 27.4 46.4
Divestiture costs 0.2 0.3 9.8
Other total $ 62.7 $ 65.9 $ 83.3
v3.19.3
Restructuring and Other Costs - Schedule of Changes in Restructuring Accrual Charges (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Restructuring And Other Costs [Abstract]      
Accrual at beginning of fiscal year $ 31.6 $ 47.4 $ 44.8
Accruals acquired in acquisition     3.5
Additional accruals 60.0 16.5 63.2
Payments (55.9) (29.8) (53.3)
Adjustment to accruals (3.2) (1.0) (10.8)
Foreign currency rate changes (0.2) (1.5)  
Accrual at end of fiscal year $ 32.3 $ 31.6 $ 47.4
v3.19.3
Restructuring and Other Costs - Schedule of Reconciliation of Accruals and Charges (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Restructuring And Other Costs [Abstract]                      
Additional accruals and adjustments to accruals (see table above)                 $ 56.8 $ 15.5 $ 52.4
Acquisition costs                 28.2 38.2 27.1
Integration costs                 34.3 22.0 41.2
Divestiture costs                 0.2 0.3 9.8
Net property, plant and equipment                 32.6 9.7 31.6
Severance and other employee costs                 6.8 1.3 3.8
Equipment and inventory relocation costs                 5.8 5.8 4.7
Facility carrying costs                 4.1 4.2 6.1
Other costs                 4.9 8.4 20.0
Restructuring and Other Costs $ 66.6 $ 17.9 $ 34.8 $ 54.4 $ 40.3 $ 17.1 $ 31.7 $ 16.3 $ 173.7 $ 105.4 $ 196.7
v3.19.3
Retirement Plans - Schedule of Allocation of Plan Assets - (Details) - Pension Plan [Member]
Sep. 30, 2019
Sep. 30, 2018
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 15.00% 15.00%
Defined Benefit Plan, Actual Plan Asset Allocations 13.00% 14.00%
Equity Securities [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 20.00% 22.00%
Defined Benefit Plan, Actual Plan Asset Allocations 22.00% 23.00%
Fixed Income Investments [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 75.00% 75.00%
Defined Benefit Plan, Actual Plan Asset Allocations 70.00% 73.00%
Fixed Income Investments [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 72.00% 70.00%
Defined Benefit Plan, Actual Plan Asset Allocations 71.00% 69.00%
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 9.00% 3.00%
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 2.00% 2.00%
Other Investments [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 9.00% 9.00%
Defined Benefit Plan, Actual Plan Asset Allocations 8.00% 10.00%
Other Investments [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Target Allocation Percentage of Assets 7.00% 7.00%
Defined Benefit Plan, Actual Plan Asset Allocations 5.00% 6.00%
v3.19.3
Retirement Plans - Additional Information (Details)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 01, 2016
Oct. 31, 2019
USD ($)
Letter
Sep. 30, 2019
USD ($)
Mar. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Sep. 30, 2020
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2017
USD ($)
Feb. 28, 2017
USD ($)
Sep. 30, 2016
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     $ 100.0         $ 100.0        
Pension lump sum settlement and retiree medical curtailment, net       $ 28.7           $ 32.6    
Lump Sum Payment Related to Pension Settlement Made Out of Existing Plan Assets           $ 203.7       $ 230.8    
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate                     4.49% 4.04%
Defined Benefit Plan, Increase in Funded Status                     $ 73.2  
Settlements         $ 27.1              
Defined benefit plan, accumulated benefit obligation     6,438.9         $ 6,438.9 $ 5,081.3      
Adjustment to RP-2014 table white collar males               8.00% 10.00% 9.00%    
Adjustment to RP-2014 table blue collar males               12.00% 14.00% 12.00%    
Adjustment to RP-2014 tables white collar females               10.00% 11.00% 11.00%    
Adjustment to RP-2014 tables blue collar female               6.00% 10.00% 9.00%    
Defined benefit plan, effect of one percentage point increase on accumulated postretirement benefit obligation               $ 12.0        
Defined benefit plan, effect of one percentage point increase on service and interest cost components               1.0        
Defined benefit plan, effect of one percentage point decrease on accumulated postretirement benefit obligation               10.0        
Defined benefit plan, effect of one percentage point decrease on service and interest cost components               1.0        
Multiemployer Plans, Withdrawal Obligation     $ 237.2         $ 237.2 $ 247.8      
Periods of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal                 20 years      
Credit Adjusted Risk-Free Rate Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal                 3.83%      
Percentage of Employees Covered by Collective Bargaining Agreements     46.00%         46.00%        
Percentage of Employees Working Under Expired Collective Bargaining Agreement     4.00%         4.00%        
Percentage of Employees Covered By Collective Bargaining Agreements Expiring in One Year     17.00%         17.00%        
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               $ 150.9 $ 113.7 $ 104.1    
Pace Industry Union Management Pension Fund [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Multiemployer Plans, Withdrawal Obligation     $ 170.3         $ 170.3        
Periods of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal     20 years                  
Withdrawal obligation, per month     $ 0.7                  
Subsidiary [Member] | Pace Industry Union Management Pension Fund [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Multiemployer Plans, Withdrawal Obligation   $ 2.3                    
Periods of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal   20 years                    
Number of additional demand letters | Letter   2                    
Withdrawal obligation accumulated funding deficiency   $ 2.0                    
Pace Industry Union Management Pension Fund [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Multiemployer Plans, Withdrawal Obligation                 180.0      
Central States, Southeast and Southwest Areas Pension Fund [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Multiemployer Plans, Withdrawal Obligation                 $ 4.2      
Minimum [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Percentage of surcharge on contribution 10.00%                      
Maximum [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Percentage of surcharge on contribution 15.00%                      
Defined Contribution Plan Employer Contribution on Basic Salary, Matching Contribution               5.00%        
Green Zone [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Percentage funded in zone               At least 80 percent        
Multiemployer Plans, Certified Zone Status [Fixed List]               Green        
Yellow Zone [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Percentage funded in zone               Between 65 and less than 80 percent        
Multiemployer Plans, Certified Zone Status [Fixed List]               Yellow        
Red Zone [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Percentage funded in zone               Less than 65 percent        
Multiemployer Plans, Certified Zone Status [Fixed List]               Red        
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     $ 27.0         $ 27.0        
Pension Plan [Member] | Pace Industry Union Management Pension Fund [Member]                        
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]                        
Multiemployer Plans, Certified Zone Status [Fixed List]               Red Red      
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% 6.50% 6.50%    
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate     3.35%         3.35% 4.50%      
Settlements               $ 0.0 $ 0.0      
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     $ 220.9         220.9        
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation     220.1         220.1        
Defined benefit plan, plan with benefit obligation in excess of plan assets, fair value of plan assets     $ 34.0         $ 34.0        
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               4.69% 4.98% 6.03%    
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate     2.42%         2.42% 3.42%      
Settlements               $ 1.7 $ 5.5      
Pension Plan [Member] | Scenario, Forecast [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             6.25%          
Pension Plan [Member] | Scenario, Forecast [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             4.26%          
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     $ 173.0         173.0        
Pension and other postretirement plans, liabilities     $ 181.9         $ 181.9        
v3.19.3
Retirement Plans - Schedule of Weighted-Average Assumptions Used to Measure Benefit Plan Obligations (Details)
Sep. 30, 2019
Sep. 30, 2018
Feb. 28, 2017
Sep. 30, 2016
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate     4.49% 4.04%
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 3.35% 4.50%    
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase 3.00% 3.00%    
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 2.42% 3.42%    
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase 2.65% 2.67%    
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 3.34% 4.50%    
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 5.64% 6.61%    
v3.19.3
Retirement Plans - Schedule of Changes in Benefit Obligations (Details) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]        
Settlements $ (27.1)      
Prepaid pension asset   $ 224.7 $ 420.0  
Pension liabilities, net of current portion   (294.0) (261.3)  
Postretirement benefit liabilities, net of current portion   (162.1) (134.8)  
Pension Plan [Member]        
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]        
Service cost   42.8 44.8 $ 45.1
Interest cost   232.6 204.6 197.8
Pension Plan [Member] | United States [Member]        
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]        
Benefit obligation at beginning of fiscal year   3,783.5 3,941.9  
Service cost   36.0 36.7  
Interest cost   189.2 157.7  
Amendments   0.4 9.3  
Actuarial loss (gain)   694.4 (186.8)  
Plan participant contributions   0.0 0.0  
Benefits paid   (216.8) (175.3)  
Business combinations   561.2 0.0  
Curtailments   1.0 0.0  
Settlements   0.0 0.0  
Foreign currency rate changes   0.0 0.0  
Benefit obligation at end of fiscal year 3,941.9 5,048.9 3,783.5 3,941.9
Fair value of plan assets at beginning of fiscal year   3,921.2 4,107.9  
Actual gain (loss) on plan assets   731.7 (24.9)  
Employer contributions   13.0 13.5  
Plan participant contributions   0.0 0.0  
Benefits paid   (216.8) (175.3)  
Business combinations   556.2 0.0  
Settlements   0.0 0.0  
Foreign currency rate changes   0.0 0.0  
Fair value of plan assets at end of fiscal year 4,107.9 5,005.3 3,921.2 4,107.9
(Under) over funded status   (43.6) 137.7  
Prepaid pension asset   143.3 305.7  
Other current liabilities   (14.6) (10.1)  
Pension liabilities, net of current portion   (172.3) (157.9)  
Pension Plan [Member] | Foreign Plan [Member]        
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]        
Benefit obligation at beginning of fiscal year   1,340.2 1,502.2  
Service cost   6.8 8.0  
Interest cost   43.4 46.9  
Amendments   3.1 0.0  
Actuarial loss (gain)   181.0 (90.3)  
Plan participant contributions   2.2 2.5  
Benefits paid   (78.3) (82.8)  
Business combinations   0.7 3.5  
Curtailments   0.0 (0.7)  
Settlements   (1.7) (5.5)  
Foreign currency rate changes   (54.3) (43.6)  
Benefit obligation at end of fiscal year 1,502.2 1,443.1 1,340.2 1,502.2
Fair value of plan assets at beginning of fiscal year   1,350.2 1,414.7  
Actual gain (loss) on plan assets   172.9 39.9  
Employer contributions   12.1 24.2  
Plan participant contributions   2.2 2.5  
Benefits paid   (78.3) (82.8)  
Business combinations   0.0 0.7  
Settlements   (1.7) (5.5)  
Foreign currency rate changes   (56.5) (43.5)  
Fair value of plan assets at end of fiscal year 1,414.7 1,400.9 1,350.2 1,414.7
(Under) over funded status   (42.2) 10.0  
Prepaid pension asset   81.4 114.3  
Other current liabilities   (1.9) (0.9)  
Pension liabilities, net of current portion   (121.7) (103.4)  
Other Postretirement Benefits Plan [Member]        
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]        
Service cost   1.2 1.5 0.9
Interest cost   7.7 7.9 7.4
Other Postretirement Benefits Plan [Member] | United States [Member]        
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]        
Benefit obligation at beginning of fiscal year   91.0 98.1  
Service cost   0.7 0.7  
Interest cost   4.1 3.9  
Amendments   0.4 (1.4)  
Actuarial loss (gain)   1.6 (2.5)  
Benefits paid   (6.6) (7.8)  
Business combinations   7.1 0.0  
Curtailments   0.0 0.0  
Foreign currency rate changes   0.0 0.0  
Benefit obligation at end of fiscal year 98.1 98.3 91.0 98.1
Fair value of plan assets at beginning of fiscal year   0.0 0.0  
Employer contributions   6.6 7.8  
Plan participant contributions   0.0 0.0  
Benefits paid   (6.6) (7.8)  
Fair value of plan assets at end of fiscal year 0.0 0.0 0.0 0.0
(Under) over funded status   (98.3) (91.0)  
Other current liabilities   (8.9) (8.8)  
Postretirement benefit liabilities, net of current portion   (89.4) (82.2)  
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]        
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]        
Benefit obligation at beginning of fiscal year   55.5 68.1  
Service cost   0.5 0.8  
Interest cost   3.6 4.0  
Amendments   0.0 0.0  
Actuarial loss (gain)   22.2 (5.2)  
Benefits paid   (2.9) (2.6)  
Business combinations   0.0 0.0  
Curtailments   0.0 (2.1)  
Foreign currency rate changes   (3.2) (7.5)  
Benefit obligation at end of fiscal year 68.1 75.7 55.5 68.1
Fair value of plan assets at beginning of fiscal year   0.0 0.0  
Employer contributions   2.9 2.6  
Plan participant contributions   0.0 0.0  
Benefits paid   (2.9) (2.6)  
Fair value of plan assets at end of fiscal year $ 0.0 0.0 0.0 $ 0.0
(Under) over funded status   (75.7) (55.5)  
Other current liabilities   (3.0) (2.9)  
Postretirement benefit liabilities, net of current portion   $ (72.7) $ (52.6)  
v3.19.3
Retirement Plans - Schedule of Amounts in Accumulated Other Comprehensive (Income) Loss (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Pension Plan [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial (gain) loss $ 854.7 $ 631.2
Prior service cost (credit) 27.6 32.3
Total accumulated other comprehensive loss (income) 882.3 663.5
Pension Plan [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial (gain) loss 168.8 105.6
Prior service cost (credit) 3.4 0.3
Total accumulated other comprehensive loss (income) 172.2 105.9
Other Postretirement Benefits Plan [Member] | United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial (gain) loss (8.0) (11.2)
Prior service cost (credit) (8.3) (11.3)
Total accumulated other comprehensive loss (income) (16.3) (22.5)
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial (gain) loss 18.8 (3.8)
Prior service cost (credit) (0.9) (1.0)
Total accumulated other comprehensive loss (income) $ 17.9 $ (4.8)
v3.19.3
Retirement Plans - Schedule of Amounts Recognized in Other Comprehensive Loss (Income) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Defined Benefit Plan Disclosure [Line Items]      
Net actuarial loss (gain) arising during period $ 335.9 $ 29.0 $ (34.1)
Amortization and settlement recognition of net actuarial gain (loss) (23.3) (20.9) (56.4)
Prior service cost (credit) arising during period 3.9 7.8 (1.0)
Amortization of prior service (cost) credit (2.4) (0.3) 0.4
Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Net actuarial loss (gain) arising during period 312.0 38.7 (48.8)
Amortization and settlement recognition of net actuarial gain (loss) (25.3) (20.6) (57.7)
Prior service cost (credit) arising during period 3.5 9.3 3.4
Amortization of prior service (cost) credit (5.2) (4.7) (4.1)
Net other comprehensive loss (income) recognized 285.0 22.7 (107.2)
Other Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Net actuarial loss (gain) arising during period 23.9 (9.7) 14.7
Amortization and settlement recognition of net actuarial gain (loss) 2.0 (0.3) 1.3
Prior service cost (credit) arising during period 0.4 (1.5) (4.4)
Amortization of prior service (cost) credit 2.8 4.4 4.5
Net other comprehensive loss (income) recognized $ 29.1 $ (7.1) $ 16.1
v3.19.3
Retirement Plans - Schedule of Retirement Plans Amounts Recognized in Consolidated Statement of Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 42.8 $ 44.8 $ 45.1
Interest cost 232.6 204.6 197.8
Expected return on plan assets (340.2) (328.4) (313.1)
Amortization of net actuarial (gain) loss 24.5 21.2 25.4
Amortization of prior service cost (credit) 5.2 4.7 4.1
Curtailment loss (gain) 1.0 (0.6) 0.0
Settlement (gain) loss (0.2) (0.5) 32.7
Special termination benefits 0.0 0.0 12.5
Company defined benefit plan (income) expense (34.3) (54.2) 4.5
Multiemployer and other plans 1.4 1.4 4.7
Net pension (income) cost (32.9) (52.8) 9.2
Other Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 1.2 1.5 0.9
Interest cost 7.7 7.9 7.4
Amortization of net actuarial (gain) loss (2.0) 0.3 (1.3)
Amortization of prior service cost (credit) (2.8) (4.4) (4.5)
Curtailment loss (gain) 0.0 (0.1) (0.3)
Net pension (income) cost $ 4.1 $ 5.2 $ 2.2
v3.19.3
Retirement Plans - Schedule of Weighted-Average Assumptions Used in Calculation of Benefit Plan Expense (Details)
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Pension Plan [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate 4.50% 4.09% 4.30%
Defined Benefit Plan, Assumptions Used Caclulating Net Periodic Cost, Rate of Compensation Increase 3.00% 3.00% 3.00%
Expected long-term rate of return on plan assets 6.50% 6.50% 6.50%
Pension Plan [Member] | Foreign Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate 3.42% 3.26% 3.08%
Defined Benefit Plan, Assumptions Used Caclulating Net Periodic Cost, Rate of Compensation Increase 2.67% 2.65% 3.09%
Expected long-term rate of return on plan assets 4.69% 4.98% 6.03%
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 4.50% 4.09% 4.04%
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 6.61% 6.51% 6.64%
Defined Benefit Plan, Assumptions Used Caclulating Net Periodic Cost, Rate of Compensation Increase   7.37% 3.14%
v3.19.3
Retirement Plans - Schedule of Estimated Losses Amortized from Accumulated Other Comprehensive Loss into Net Periodic Benefit Cost (Details)
$ in Millions
Sep. 30, 2019
USD ($)
Pension Plan [Member] | United States [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Expected Amortization of Loss (Gain), Next Fiscal Year $ 38.5
Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year 5.2
Expected Amortization, Next Fiscal Year 43.7
Pension Plan [Member] | Foreign Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Expected Amortization of Loss (Gain), Next Fiscal Year 8.9
Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year 0.3
Expected Amortization, Next Fiscal Year 9.2
Other Postretirement Benefits Plan [Member] | United States [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Expected Amortization of Loss (Gain), Next Fiscal Year (1.4)
Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year (2.6)
Expected Amortization, Next Fiscal Year (4.0)
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Expected Amortization of Loss (Gain), Next Fiscal Year (0.7)
Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year 0.2
Expected Amortization, Next Fiscal Year $ (0.5)
v3.19.3
Retirement Plans - Schedule of Estimated Benefit Payments (Details)
$ in Millions
Sep. 30, 2019
USD ($)
Pension Plan [Member] | United States [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2020 $ 253.1
Fiscal 2021 262.3
Fiscal 2022 266.5
Fiscal 2023 273.3
Fiscal 2024 268.8
Fiscal Years 2025 – 2029 1,405.3
Pension Plan [Member] | Foreign Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2020 75.9
Fiscal 2021 74.5
Fiscal 2022 74.6
Fiscal 2023 74.8
Fiscal 2024 74.3
Fiscal Years 2025 – 2029 369.0
Other Postretirement Benefits Plan [Member] | United States [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2020 9.4
Fiscal 2021 8.2
Fiscal 2022 7.8
Fiscal 2023 7.4
Fiscal 2024 7.0
Fiscal Years 2025 – 2029 30.8
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2020 2.9
Fiscal 2021 3.0
Fiscal 2022 3.1
Fiscal 2023 3.2
Fiscal 2024 3.3
Fiscal Years 2025 – 2029 $ 17.8
v3.19.3
Retirement Plans - Summary of Pension Plan Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at NAV $ 2,054.8 $ 2,191.6
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 6,406.2 5,271.4
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value Investments 4,351.4 3,079.8
Assets measured at NAV [1] 2,054.8 2,191.6
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 813.0 480.4
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 3,538.4 2,599.4
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] 184.2 165.5
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] 183.5 165.5
Fair Value, Measurements, Recurring [Member] | US Equity 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 [2] 0.7  
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] 6.5 8.2
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] 6.5 8.2
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] 125.6 127.5
Fair Value, Measurements, Recurring [Member] | Non-US government 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 [3] 0.2  
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] 125.4 127.5
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] 2,156.0 1,493.6
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] 137.6 108.4
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] 2,018.4 1,385.2
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] 432.9 380.8
Fair Value, Measurements, Recurring [Member] | Non-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] 5.7 49.3
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] 427.2 331.5
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] 379.3 319.4
Fair Value, Measurements, Recurring [Member] | Other Fixed Income 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 [4] 10.8  
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] 368.5 319.4
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] 468.7 149.0
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] 468.7 149.0
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] 598.2 435.8
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] $ 598.2 $ 435.8
[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.
v3.19.3
Retirement Plans - Summary of Pension Plan Assets Measured at Fair Value on Recurring Basis (Parenthetical) (Details) - $ / Unit
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Retirement Plans [Abstract]    
Short-term investments per units 1.00 1.00
v3.19.3
Retirement Plans - Summary of Assets Measured at Fair Value Based on NAV Per Share (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Defined Benefit Plans, Fair Value of Plan Assets $ 2,054.8 $ 2,191.6
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments 113.1 75.3
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] $ 42.9 $ 47.9
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 $ 1,188.6 [1] $ 1,092.9 [2]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments $ 113.1 [1] $ 75.3 [2]
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 60 days [1] 60 days [2]
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] $ 823.3 $ 1,050.8
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. Hedge funds have been valued using NAV as a practical expedient.
[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. Commingled funds have been valued using NAV as a practical expedient.
[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. Commingled debt funds have been valued using NAV as a practical expedient.
v3.19.3
Retirement Plans - Schedule of Health Care Cost Trend Rates (Details) - Other Postretirement Benefits Plan [Member]
 12 Months Ended
Sep. 30, 2019
United States [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Health care cost trend rate assumed for next year 5.87%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.42%
Year the rate reaches the ultimate trend rate 2037
Foreign Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Health care cost trend rate assumed for next year 5.91%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.91%
Year the rate reaches the ultimate trend rate 2019
v3.19.3
Retirement Plans - Schedule of Multiemployer Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Schedule Of Multi Employer Plans [Line Items]      
Entity Tax Identification Number 371880617    
Pension Plan [Member]      
Schedule Of Multi Employer Plans [Line Items]      
Multiemployer and Other Plans, Period Contributions [1] $ 1.4 $ 1.4 $ 5.1
Pension Plan [Member] | Pace Industry Union Management Pension Fund [Member]      
Schedule Of Multi Employer Plans [Line Items]      
Entity Tax Identification Number 116166763    
Multiemployer Plan Number 001    
Multiemployer Plans, Certified Zone Status Red Red  
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan Implemented    
Surcharge imposed? Yes    
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, First Sep. 30, 2020    
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, Last Jun. 25, 2023    
Multiemployer and Other Plans, Period Contributions [1],[2]   $ 0.9 3.5
Pension Plan [Member] | Other Funds [Member]      
Schedule Of Multi Employer Plans [Line Items]      
Multiemployer and Other Plans, Period Contributions [1],[3] $ 1.4 $ 0.5 $ 1.6
[1] Contributions represent the amounts contributed to the plan during the fiscal year.
[2] In fiscal 2019 and 2018, our contributions did not exceed 5% of total plan contributions due to our withdrawal from PIUMPF. In fiscal 2017, we did exceed 5% of total plan contributions.
[3] One additional MEPP in which we participate have been certified as critical and declining.
v3.19.3
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
United States                 $ 891.6 $ 736.7 $ 481.9
Foreign                 253.1 298.1 375.7
Income before income taxes                 1,144.7 1,034.8 857.6
Deferred income taxes:                      
Total deferred expense (benefit)                 37.1 (1,069.4) (20.4)
Total income tax expense (benefit) $ (89.3) $ (77.6) $ (47.2) $ (62.7) $ (95.4) $ (84.5) $ (18.8) $ 1,073.2 276.8 (874.5) 159.0
Continuing Operations [Member]                      
Current income taxes:                      
Federal                 134.7 83.0 80.8
State                 34.9 26.8 3.3
Foreign                 69.5 86.6 95.3
Total current expense                 239.1 196.4 179.4
Deferred income taxes:                      
Federal                 44.1 (1,108.6) 15.2
State                 6.1 53.2 (22.8)
Foreign                 (12.5) (15.5) (12.8)
Total deferred expense (benefit)                 37.7 (1,070.9) (20.4)
Total income tax expense (benefit)                 $ 276.8 $ (874.5) $ 159.0
v3.19.3
Income Taxes - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 22, 2017
Dec. 31, 2018
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Income Taxes [Line Items]            
Statutory tax rate 21.00%          
Tax cuts and jobs act, accounting complete   true        
Income tax expense from revaluation of deferred tax assets and liabilities   $ 0.4        
Additional income tax expense from transition tax provisional liability   $ 3.7        
Operating Loss Carryforwards     $ 4.0 $ 13.3    
Deferred income tax assets:            
State net operating loss carryforwards     57.6 78.4    
Federal and foreign net operating loss carryforwards     173.5 188.7    
Deferred income tax liabilities:            
Operating Loss Carryforwards     4.0 13.3    
Undistributed Foreign Earnings     1,600.0      
Balance at end of fiscal year     224.3 127.1 $ 148.9 $ 166.8
Unrecognized Tax Benefits that Would Impact Effective Tax Rate     207.5 108.7    
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued     80.0 70.4    
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense     9.7 5.8 $ 7.4  
Decrease in Unrecognized Tax Benefits is Reasonably Possible     8.7      
State and Local Jurisdiction [Member]            
Income Taxes [Line Items]            
Operating Loss Carryforwards     1,638.0 1,676.0    
Deferred income tax assets:            
State net operating loss carryforwards     57.6 78.4    
Tax Credit Carryforward, Deferred Tax Asset     69.5 64.8    
Tax credit carryforward, valuation allowance     56.8 56.1    
Deferred income tax liabilities:            
Operating Loss Carryforwards     1,638.0 1,676.0    
Operating Loss Carryforwards, Valuation Allowance     10.2 7.8    
Foreign Country [Member]            
Income Taxes [Line Items]            
Operating Loss Carryforwards     663.2 698.4    
Deferred income tax assets:            
Federal and foreign net operating loss carryforwards     172.5 185.8    
Deferred income tax liabilities:            
Operating Loss Carryforwards     663.2 698.4    
Operating Loss Carryforwards, Valuation Allowance     144.1 161.5    
Alternative Minimum Tax Credits [Member]            
Deferred income tax liabilities:            
Tax credit carryforward     0.0 $ 14.7    
Research Tax Credit Carryforward [Member]            
Deferred income tax liabilities:            
Tax credit carryforward     0.0      
General Business Tax Credit Carryforward [Member]            
Deferred income tax liabilities:            
Tax credit carryforward     $ 0.0      
Minimum [Member]            
Deferred income tax liabilities:            
Operating loss carryforward expiration     Oct. 01, 2031      
Minimum [Member] | State and Local Jurisdiction [Member]            
Deferred income tax liabilities:            
Operating loss carryforward expiration     Oct. 01, 2021      
Tax Credit Carryforward, Years to Expiration     5 years      
Minimum [Member] | Foreign Country [Member]            
Deferred income tax liabilities:            
Operating loss carryforward expiration     Oct. 01, 2021      
Maximum [Member]            
Deferred income tax liabilities:            
Operating loss carryforward expiration     Sep. 30, 2038      
Maximum [Member] | State and Local Jurisdiction [Member]            
Deferred income tax liabilities:            
Operating loss carryforward expiration     Sep. 30, 2039      
Tax Credit Carryforward, Years to Expiration     10 years      
Maximum [Member] | Foreign Country [Member]            
Deferred income tax liabilities:            
Operating loss carryforward expiration     Sep. 30, 2039      
v3.19.3
Income Taxes Effective Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 22, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Statutory federal tax rate 21.00%      
Continuing Operations [Member]        
Statutory federal tax rate   21.00% 24.50% 35.00%
Foreign rate differential   1.30% 0.60% (4.90%)
Adjustment and resolution of federal, state and foreign tax uncertainties   1.20% 0.90% (0.30%)
State taxes, net of federal benefit   2.50% 4.30% 3.30%
Tax Act [1]     (109.10%)  
Excess tax benefit related to stock compensation   (0.30%) (0.80%)  
Research and development and other tax credits, net of valuation allowances and reserves   (0.70%) (0.50%) (0.80%)
Income attributable to noncontrolling interest   (0.10%) (0.10%) 0.40%
Domestic manufacturer’s deduction     (1.80%) (2.00%)
Sale of HH&B       (5.00%)
U.S. legal entity restructuring       (3.30%)
Change in valuation allowance   0.20% (1.80%) (3.30%)
Nondeductible transaction costs   1.00%   1.00%
Nontaxable increased cash surrender value   (0.60%) (0.80%) (1.50%)
Withholding taxes   0.60% 0.50% 0.40%
Brazilian net worth deduction   (0.90%) (0.90%) (0.80%)
Other, net   (1.00%) 0.50% 0.30%
Effective tax rate   24.20% (84.50%) 18.50%
[1] For the year ended September 30, 2018, the primary components are a $1,215.9 million benefit from the remeasurement of our net U.S. deferred tax liability and a one-time transition tax liability of $95.4 million or $87.1 million net of the release of a previously recorded outside basis difference
v3.19.3
Income Taxes Effective Tax Rate Reconciliation (Parenthetical) (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2018
USD ($)
Income Tax Disclosure [Abstract]  
Benefit from the remeasurement of our net U.S. deferred tax liability $ 1,215.9
One-time transition liability 95.4
Tax Cuts and Jobs Act Of 2017 one-time transition liability net of the release of a previously recorded outside basis difference $ 87.1
v3.19.3
Income Taxes Deferred Taxes (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Deferred income tax assets:    
Accruals and allowances $ 10.7 $ 22.1
Employee related accruals and allowances 221.2 213.2
Pension 0.7  
State net operating loss carryforwards 57.6 78.4
State credit carryforwards, net of federal benefit 69.5 64.8
U.S. and foreign tax credit carryforwards 0.7 14.7
Federal and foreign net operating loss carryforwards 173.5 188.7
Restricted stock and options 39.3 46.7
Other 52.1 45.3
Deferred Tax Assets, Gross 625.3 673.9
Deferred income tax liabilities:    
Property, plant and equipment 1,840.5 1,509.7
Deductible intangibles and goodwill 914.7 698.1
Inventory reserves 188.3 168.6
Deferred gain 275.2 258.8
Pension obligations   60.1
Basis difference in joint ventures 33.1 35.5
Deferred Tax Liabilities, Gross 3,251.8 2,730.8
Valuation allowances 218.0 229.4
Net deferred income tax liability 2,844.5 2,286.3
Long-term deferred tax asset [1] 33.5 35.2
Deferred income taxes 2,878.0 2,321.5
Net deferred income tax liability $ 2,844.5 $ 2,286.3
[1] The long-term deferred tax asset is presented in Other assets on the consolidated balance sheets.
v3.19.3
Income Taxes Valuation Allowance Against Deferred Tax Assets (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Movement in Deferred Tax Asset Valuation Allowance [Roll Forward]      
Balance at beginning of fiscal year $ 229.4 $ 219.1 $ 177.2
Increases 25.4 50.8 54.3
Allowances related to purchase accounting [1] 0.8 0.1 12.4
Reductions (37.6) (40.6) (24.8)
Balance at end of fiscal year $ 218.0 $ 229.4 $ 219.1
[1] Amounts in fiscal 2019 relate to the KapStone Acquisition. Amounts in fiscal 2018 and 2017 relate to the MPS Acquisition.
v3.19.3
Income Taxes Unrecognized Tax Benefit (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of fiscal year $ 127.1 $ 148.9 $ 166.8
Additions related to purchase accounting [1] 1.0 3.4 7.7
Additions for tax positions taken in current year [2] 103.8 3.1 5.0
Additions for tax positions taken in prior fiscal years 1.8 18.0 15.2
Reductions for tax positions taken in prior fiscal years (0.5) (5.3) (25.6)
Reductions due to settlement [3] (4.0) (29.4) (14.1)
(Reductions) additions for currency translation adjustments (1.7) (9.6)  
(Reductions) additions for currency translation adjustments     2.0
Reductions as a result of a lapse of the applicable statute of limitations (3.2) (2.0) (8.1)
Balance at end of fiscal year $ 224.3 $ 127.1 $ 148.9
[1]

(1)

Amounts in fiscal 2019 relate to the KapStone Acquisition. Amounts in fiscal 2018 and 2017 relate to the MPS Acquisition.
[2] Additions for tax positions taken in current fiscal year includes primarily positions taken related to foreign subsidiaries.
[3] Amounts in fiscal 2019 relate to the settlements of state and foreign audit examinations. Amounts in fiscal 2018 relate to the settlement of state audit examinations and federal and state amended returns filed related to affirmative adjustments for which there was a reserve. Amounts in fiscal 2017 relate to the settlement of federal and state audit examinations with taxing authorities.
v3.19.3
Segment Information - Additional Information (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2019
USD ($)
segment
Sep. 30, 2018
USD ($)
Sep. 30, 2017
USD ($)
Segment Reporting Information [Line Items]          
Number of reportable segments | segment     3    
Insurance proceeds received, net cash used for investing activities     $ 25.5 $ 7.9 $ 3.5
Pre-Tax Inventory Step-Up     24.7 1.0 26.5
Hurricane Michael [Member]          
Segment Reporting Information [Line Items]          
Insurance proceeds received $ 70.0 $ 20.0      
Corrugated Packaging [Member]          
Segment Reporting Information [Line Items]          
Pre-Tax Inventory Step-Up     24.7 1.0 1.4
Corrugated Packaging [Member] | Grupo Gondi Investment [Member]          
Segment Reporting Information [Line Items]          
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity 121.4   121.4 133.9  
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Amortizable Portion $ 53.1   $ 53.1 $ 62.1  
Corrugated Packaging [Member] | Grupo Gondi Investment [Member] | Minimum [Member]          
Segment Reporting Information [Line Items]          
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Lives of Underlying Assets     10 years    
Corrugated Packaging [Member] | Grupo Gondi Investment [Member] | Maximum [Member]          
Segment Reporting Information [Line Items]          
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Lives of Underlying Assets     15 years    
Corrugated Packaging [Member] | Hurricane Michael [Member]          
Segment Reporting Information [Line Items]          
Insurance proceeds from business interruption recoveries     $ 55.3    
Insurance proceeds from direct costs and property damage     124.7    
Insurance proceeds received, net cash provided by operating activities     154.5    
Insurance proceeds received, net cash used for investing activities     25.5    
Corrugated Packaging [Member] | Hurricane Michael [Member] | Cost of Goods Sold [Member]          
Segment Reporting Information [Line Items]          
Insurance proceeds received     $ 180.0    
Consumer Packaging [Member]          
Segment Reporting Information [Line Items]          
Pre-Tax Inventory Step-Up         $ 25.1
v3.19.3
Segment Information - Schedule of Revenue from External Customers, Segment Income and Long-Lived Assets, by Geographical Areas (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Revenues from External Customers, Segment Income and Long-Lived Assets [Line Items]                      
Net sales $ 4,651.6 $ 4,690.0 $ 4,620.0 $ 4,327.4 $ 4,236.6 $ 4,137.5 $ 4,017.0 $ 3,894.0      
Foreign Operations [Member]                      
Revenues from External Customers, Segment Income and Long-Lived Assets [Line Items]                      
Net sales                 $ 3,332.4 $ 3,236.7 $ 2,621.2
Segment income (loss)                 392.3 360.7 260.1
Long-Lived Assets $ 1,466.4       $ 1,400.2       $ 1,466.4 $ 1,400.2 $ 1,558.3
Percentage of Net Sales to Unaffiliated Customers                 18.20% 19.90% 17.60%
Percentage of Segment Income                 21.90% 21.10% 21.40%
Percentage of Long-Lived Assets 13.10%       15.40%       13.10% 15.40% 17.10%
v3.19.3
Segment Information - Certain Operating Data for Segments (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Segment Reporting Information [Line Items]                        
Net sales                 $ 18,289.0 $ 16,285.1 $ 14,859.7  
Gain on sale of certain closed facilities                 52.6      
Multiemployer pension withdrawal income (expense) $ 4.6 $ 1.7       $ (4.2)   $ (180.0) 6.3 (184.2)    
Land and Development impairments     $ (13.0)   $ (2.6) (1.7)   (27.6) (13.0) (31.9) (46.7)  
Restructuring and other costs (66.6) (17.9) (34.8) $ (54.4) (40.3) (17.1) $ (31.7) (16.3) (173.7) (105.4) (196.7)  
Interest expense, net                 (431.3) (293.8) (222.5)  
Loss (gain) on extinguishment of debt (0.4) $ (3.2) $ 0.4 $ (1.9) (0.1) $ 0.9 $ 0.1 $ (1.0) (5.1) (0.1) 1.8  
Other income, net                 2.4 12.7 11.5  
Gain on sale of HH&B                     192.8  
Income before income taxes                 1,144.7 1,034.8 857.6  
Identifiable assets 30,156.7       25,360.5       30,156.7 25,360.5 25,089.0  
Goodwill 7,285.6       5,577.6       7,285.6 5,577.6 5,528.3 $ 4,778.1
Intangibles, net 4,059.5       3,122.0       4,059.5 3,122.0 3,329.3  
Depreciation, depletion and amortization                 1,511.2 1,252.2 1,112.1  
Capital expenditures                 1,369.1 999.9 778.6  
Investment in unconsolidated entities 469.1       457.8       469.1 457.8 360.6  
Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 18,446.1 16,452.9 15,026.9  
Segment income (loss)                 1,790.2 1,707.6 1,217.5  
Intersegment Eliminations [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 (157.1) (167.8) (167.2)  
Corporate, Non-Segment [Member]                        
Segment Reporting Information [Line Items]                        
Pension lump sum settlement                     (32.6)  
Land and Development impairments                 (13.0) (31.9) (46.7)  
Non-allocated expenses                 (83.7) (70.1) (67.5)  
Interest expense, net                 (431.3) (293.8) (222.5)  
Other income, net                 2.4 12.7 11.5  
Gain on sale of HH&B                     192.8  
Corrugated Packaging [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 11,816.7      
Identifiable assets 16,681.1       11,069.6       16,681.1 11,069.6 10,959.7  
Goodwill 3,695.0       1,966.7       3,695.0 1,966.7 1,941.5 1,798.3
Intangibles, net 1,655.1       506.2       1,655.1 506.2 540.4  
Depreciation, depletion and amortization                 950.6 700.5 622.1  
Capital expenditures                 961.4 657.3 503.9  
Investment in unconsolidated entities 457.1       455.6       457.1 455.6 342.8  
Corrugated Packaging [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 11,816.7 9,693.0 9,084.8  
Segment income (loss)                 1,399.6 1,240.0 818.0  
Corrugated Packaging [Member] | Intersegment Eliminations [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 (75.3) (87.3) (78.8)  
Corrugated Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 11,741.4 9,605.7 9,006.0  
Consumer Packaging [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 6,606.0      
Identifiable assets 11,038.7       11,511.1       11,038.7 11,511.1 11,455.8  
Goodwill 3,590.6       3,610.9       3,590.6 3,610.9 3,586.8 $ 2,979.8
Intangibles, net 2,404.4       2,615.8       2,404.4 2,615.8 2,788.9  
Depreciation, depletion and amortization                 552.1 546.5 484.9  
Capital expenditures                 365.9 308.3 254.0  
Investment in unconsolidated entities 11.6       1.8       11.6 1.8 3.0  
Consumer Packaging [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 6,606.0 6,617.5 5,698.3  
Segment income (loss)                 388.1 445.1 385.7  
Consumer Packaging [Member] | Intersegment Eliminations [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 (81.8) (80.5) (88.4)  
Consumer Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 6,524.2 6,537.0 5,609.9  
Land and Development [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 23.4      
Identifiable assets 28.3       49.1       28.3 49.1 89.8  
Depreciation, depletion and amortization                   0.7 0.7  
Investment in unconsolidated entities                     14.4  
Land and Development [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 23.4 142.4 243.8  
Segment income (loss)                 2.5 22.5 13.8  
Land and Development [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Net sales                 23.4 142.4 243.8  
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]                        
Segment Reporting Information [Line Items]                        
Identifiable assets 25.8       59.5       25.8 59.5 173.6  
Corporate Segment [Member]                        
Segment Reporting Information [Line Items]                        
Identifiable assets 2,382.8       2,671.2       2,382.8 2,671.2 2,410.1  
Depreciation, depletion and amortization                 8.5 4.5 4.4  
Capital expenditures                 41.8 34.3 20.7  
Investment in unconsolidated entities $ 0.4       $ 0.4       $ 0.4 $ 0.4 $ 0.4  
v3.19.3
Segment Information - Changes in Carrying Amount of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year $ 5,620.4 $ 5,571.1 $ 4,820.9
Accumulated impairment losses, beginning of period (42.8) (42.8) (42.8)
Goodwill, beginning of fiscal year 5,577.6 5,528.3 4,778.1
Goodwill acquired 1,750.2 89.2 1,045.4
Goodwill disposed of   (4.2) (329.6)
Purchase price allocation adjustments (0.5) 20.7 8.1
Translation adjustments   (56.4) 26.3
Translation and other adjustments (41.7)    
Goodwill, Gross end of fiscal year 7,328.4 5,620.4 5,571.1
Accumulated impairment losses, end of period (42.8) (42.8) (42.8)
Goodwill, end of fiscal year 7,285.6 5,577.6 5,528.3
Corrugated Packaging [Member]      
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year 1,966.8 1,941.6 1,798.4
Accumulated impairment losses, beginning of period (0.1) (0.1) (0.1)
Goodwill, beginning of fiscal year 1,966.7 1,941.5 1,798.3
Goodwill acquired 1,746.4 65.4 137.6
Goodwill disposed of   (4.2)  
Purchase price allocation adjustments 0.9 2.3 (1.2)
Translation adjustments   (38.3) 6.8
Translation and other adjustments (19.0)    
Goodwill, Gross end of fiscal year 3,695.1 1,966.8 1,941.6
Accumulated impairment losses, end of period (0.1) (0.1) (0.1)
Goodwill, end of fiscal year 3,695.0 1,966.7 1,941.5
Consumer Packaging [Member]      
Goodwill [Roll Forward]      
Goodwill, Gross beginning of fiscal year 3,653.6 3,629.5 3,022.5
Accumulated impairment losses, beginning of period (42.7) (42.7) (42.7)
Goodwill, beginning of fiscal year 3,610.9 3,586.8 2,979.8
Goodwill acquired 3.8 23.8 907.8
Goodwill disposed of     (329.6)
Purchase price allocation adjustments (1.4) 18.4 9.3
Translation adjustments   (18.1) 19.5
Translation and other adjustments (22.7)    
Goodwill, Gross end of fiscal year 3,633.3 3,653.6 3,629.5
Accumulated impairment losses, end of period (42.7) (42.7) (42.7)
Goodwill, end of fiscal year $ 3,590.6 $ 3,610.9 $ 3,586.8
v3.19.3
Inventories - Schedule of Inventories (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Inventories [Abstract]    
Finished goods and work in process $ 938.9 $ 867.0
Raw materials 818.8 730.0
Supplies and spare parts 479.7 368.2
Inventories at FIFO cost 2,237.4 1,965.2
LIFO reserve (129.9) (135.6)
Net inventories $ 2,107.5 $ 1,829.6
v3.19.3
Assets Held For Sale - Additional Information (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Assets held for sale $ 25.8 $ 59.5
Land and Development Portfolio Assets [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Assets held for sale $ 16.1 $ 33.5
v3.19.3
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Property, plant and equipment at cost:    
Property, plant and equipment, at cost $ 17,461.3 $ 14,419.9
Less: accumulated depreciation, depletion and amortization (6,271.8) (5,337.4)
Property, plant and equipment, net 11,189.5 9,082.5
Land and Buildings [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 2,442.3 2,078.9
Machinery and Equipment [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 14,743.6 12,064.0
Forestlands and Mineral Rights [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 144.0 158.0
Transportation Equipment [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 31.2 30.1
Leasehold Improvements [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost $ 100.2 $ 88.9
v3.19.3
Property, Plant and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Property Plant And Equipment [Abstract]      
Depreciation $ 1,074.6 $ 923.8 $ 855.9
v3.19.3
Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 15 years 3 months 18 days  
Gross Carrying Amount $ 5,654.3 $ 4,318.3
Accumulated Amortization $ (1,594.8) (1,196.3)
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 15 years 3 months 18 days  
Gross Carrying Amount $ 5,395.5 4,123.7
Accumulated Amortization $ (1,452.1) (1,079.8)
Trademarks and Trade Names [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 20 years  
Gross Carrying Amount $ 129.9 77.6
Accumulated Amortization $ (55.3) (43.9)
Favorable Contracts [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 10 years 1 month 6 days  
Gross Carrying Amount $ 57.0 47.8
Accumulated Amortization $ (42.6) (34.8)
Technology and Patents [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 11 years 4 months 24 days  
Gross Carrying Amount $ 39.2 41.2
Accumulated Amortization $ (21.2) (18.0)
Licensing Agreements [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 9 years  
Gross Carrying Amount $ 25.7 24.6
Accumulated Amortization $ (20.5) (18.1)
Noncompete Agreements [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 2 years  
Gross Carrying Amount $ 3.4 3.4
Accumulated Amortization $ (2.9) $ (1.7)
Other [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Avg. Life (in years) 29 years 6 months  
Gross Carrying Amount $ 3.6  
Accumulated Amortization $ (0.2)  
v3.19.3
Other Intangible Assets - Estimated Intangible Asset Future Amortization Expense (Details)
$ in Millions
Sep. 30, 2019
USD ($)
Other Intangible Assets [Abstract]  
Fiscal 2020 $ 404.2
Fiscal 2021 356.4
Fiscal 2022 348.9
Fiscal 2023 342.7
Fiscal 2024 $ 322.3
v3.19.3
Other Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Other Intangible Assets [Abstract]      
Intangible Assets Amortization Expense $ 408.0 $ 300.8 $ 234.0
Other Intangible Assets Amortization Expense $ 28.6 $ 27.6 $ 22.2
v3.19.3
Fair Value - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 25, 2018
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Sep. 19, 2019
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]                  
Maximum eligible receivables that may be sold $ 550.0               $ 650.0
Non-cash transaction to repurchase receivables previously sold to financial institution $ 424.8                
Estimated loss on sale of accounts receivable in a fiscal year           $ 17.0      
Land and Development impairments   $ 13.0 $ 2.6 $ 1.7 $ 27.6 13.0 $ 31.9 $ 46.7  
Mineral Rights [Member]                  
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]                  
Land and Development impairments           $ 13.0 23.6    
Real Estate [Member]                  
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]                  
Land and Development impairments             8.3 46.7  
Real Estate [Member] | Mineral Rights [Member]                  
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]                  
Land and Development impairments             $ 31.9    
Consumer Packaging [Member] | Customer Relationships [Member]                  
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]                  
Impairment of intangible assets, finite-lived               $ 17.6  
v3.19.3
Fair Value - Summary of Activity Under A/R Sales Agreement (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Fair Value Disclosures [Abstract]    
Receivable from financial institution at beginning of fiscal year $ 0.0 $ 24.9
Receivables sold to the financial institution and derecognized 2,051.6 1,664.0
Receivables collected by financial institution (1,971.1) (1,573.8)
Cash proceeds from financial institution $ (80.5) (115.1)
Receivable from financial institution at September 30,   $ 0.0
v3.19.3
Debt - Schedule of Carrying Value and Weighted Average Interest Rate of Individual Components of Debt (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Debt Instrument [Line Items]    
Total debt $ 10,063.4 $ 6,415.2
Less: current portion of debt 561.1 740.7
Long-term debt due after one year $ 9,502.3 $ 5,674.5
Debt, Weighted Average Interest Rate 4.00% 4.10%
Notes Due Fiscal 2019 to 2022 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 507.8 $ 1,470.9
Debt, Weighted Average Interest Rate 4.90% 4.20%
Notes Due Fiscal 2023 to 2028 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 3,769.1 $ 2,534.4
Debt, Weighted Average Interest Rate 4.00% 3.80%
Notes Due Fiscal 2029 to 2033 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 2,197.6 $ 964.1
Debt, Weighted Average Interest Rate 4.90% 5.20%
Notes Due Fiscal 2037 to 2047 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 179.0 $ 178.5
Debt, Weighted Average Interest Rate 6.20% 6.30%
Term Loan Facilities [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 2,295.5 $ 599.4
Debt, Weighted Average Interest Rate 3.30% 3.70%
Revolving Credit and Swing Facilities [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 396.0 $ 355.0
Debt, Weighted Average Interest Rate 2.90% 3.20%
Commercial Paper [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 339.2  
Debt, Weighted Average Interest Rate 2.39%  
Capital Lease Obligations [Member] | Secured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 185.8 $ 171.0
Debt, Weighted Average Interest Rate 4.30% 4.10%
Supplier Financing and Commercial Card Programs [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 123.2 $ 105.1
International and Other Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 70.2 $ 36.8
Debt, Weighted Average Interest Rate 6.60% 6.10%
v3.19.3
Debt - Additional Information (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
Sep. 27, 2019
USD ($)
Jun. 07, 2019
USD ($)
May 16, 2019
USD ($)
May 02, 2019
USD ($)
Apr. 10, 2019
BRL (R$)
Drawdown
Feb. 26, 2019
Dec. 07, 2018
USD ($)
Dec. 03, 2018
USD ($)
Apr. 27, 2018
EUR (€)
Mar. 14, 2018
USD ($)
Mar. 07, 2018
USD ($)
Mar. 06, 2018
USD ($)
Oct. 31, 2017
USD ($)
Aug. 24, 2017
USD ($)
Jun. 30, 2017
USD ($)
Jun. 22, 2016
USD ($)
Jul. 01, 2015
USD ($)
Mar. 31, 2018
USD ($)
Oct. 31, 2017
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2017
USD ($)
Sep. 30, 2019
BRL (R$)
Mar. 24, 2016
USD ($)
Debt Instrument [Line Items]                                                    
Weighted average interest rate excluding fair value step-up                                       4.20%   4.20%     4.20%  
Unamortized fair market value step-up                                       $ 228,400,000   $ 228,400,000        
Unamortized fair market value step-up, weighted average remaining life                                           12 years 1 month 6 days        
Letters of credit outstanding, amount                                       129,800,000   $ 129,800,000        
Fair value of debt                                       $ 10,600,000,000   10,600,000,000 $ 6,400,000,000      
Amortization of debt issuance costs                                           7,800,000 6,300,000 $ 4,500,000    
Repayment of debt                                           $ 5,631,600,000 $ 2,032,900,000 $ 2,331,900,000    
Debt, Weighted Average Interest Rate                                       4.00%   4.00% 4.10%   4.00%  
DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Credit Facility, maximum borrowing capacity                     $ 3,800,000,000                              
Debt instrument, interest rate description                                           The applicable interest rate margin was initially 1.125% to 2.000% per annum for LIBOR rate loans and 0.125% to 1.000% per annum for alternate base rate loans, in each case depending on the Leverage Ratio (as defined in the credit agreement) or our corporate credit ratings, whichever yields a lower applicable interest rate margin, at such time. On February 26, 2019, we amended the Delayed Draw Credit Agreement. The applicable interest rate margin for the 3-year term loan is now 1.000% to 1.875% for LIBOR rate loans and 0.000% to 0.875% for alternate base rate loans. The applicable interest rate margin for the 5-year term loan is now 1.000% to 1.950% for LIBOR rate loans and 0.000% to 0.950% for alternate base rate loans.        
Foreign Exchange Contract [Member]                                                    
Debt Instrument [Line Items]                                                    
Derivative, Notional Amount                                       $ 351,000,000.0   $ 351,000,000.0 $ 356,000,000.0      
LIBOR [Member] | Minimum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                     1.125%                              
LIBOR [Member] | Maximum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                     2.00%                              
Base Rate [Member] | Minimum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                     0.125%                              
Base Rate [Member] | Maximum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                     1.00%                              
Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Prepayment of outstanding principal amount     $ 600,000,000.0                                              
Committed Credit Facilities [Member]                                                    
Debt Instrument [Line Items]                                                    
Line of credit facility, remaining borrowing capacity                                       2,900,000,000   2,900,000,000        
Public Bond Obligations [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                                       6,500,000,000   6,500,000,000 $ 4,900,000,000      
Senior Notes due June 2028 [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount     $ 500,000,000.0                                              
Debt instrument, interest rate     3.90%                                              
Debt instrument, maturity year     2028                                              
Senior Notes due 2032 [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount     $ 500,000,000.0                                              
Debt instrument, interest rate     4.20%                                              
Debt instrument, maturity year     2032                                              
Senior Notes due 2026 [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount               $ 750,000,000.0                                    
Debt instrument, interest rate               4.65%                                    
Debt instrument, maturity year               2026                                    
Senior Notes due 2026 [Member] | Tendered and Exchanged Notes [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                                       749,300,000   749,300,000        
Senior Notes due 2029 [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount               $ 750,000,000.0                                    
Debt instrument, interest rate               4.90%                                    
Debt instrument, maturity year               2029                                    
Senior Notes due 2029 [Member] | Tendered and Exchanged Notes [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                                       750,000,000.0   750,000,000.0        
Senior Notes due 2025 [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                       $ 600,000,000.0                            
Debt instrument, interest rate                       3.75%                            
Debt instrument, maturity year                       2025                            
Senior Notes due 2025 [Member] | Tendered and Exchanged Notes [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                                       600,000,000.0   600,000,000.0        
Senior Notes due 2028 [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                       $ 600,000,000.0                            
Debt instrument, interest rate                       4.00%                            
Debt instrument, maturity year                       2028                            
Senior Notes due 2028 [Member] | Tendered and Exchanged Notes [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                                       $ 590,000,000.0   $ 590,000,000.0        
Term Loan Facilities [Member]                                                    
Debt Instrument [Line Items]                                                    
Repayment of debt                                   $ 540,000,000.0                
Term Loan Facilities [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt, Weighted Average Interest Rate                                       3.30%   3.30% 3.70%   3.30%  
Commercial Paper [Member]                                                    
Debt Instrument [Line Items]                                                    
Repayment of debt                                   445,000,000.0                
Commercial Paper [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Long-term debt                                       $ 250,000,000.0   $ 250,000,000.0        
Debt, Weighted Average Interest Rate                                       2.39%   2.39%     2.39%  
Borrowings outstanding                                       $ 339,200,000   $ 339,200,000        
Aggregate Principal Amount of Short-term Unsecured Commercial Paper Program, Maximum             $ 1,000,000,000.0           $ 1,000,000,000.0           $ 1,000,000,000.0              
Debt Instrument, notice period for termination             30 days                                      
Commercial Paper [Member] | Unsecured Debt [Member] | Maximum [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, maturity period             397 days                       397 days              
Receivables Securitization Facility [Member]                                                    
Debt Instrument [Line Items]                                                    
Repayment of debt                                   100,000,000.0                
Receivables Securitization Facility [Member] | Secured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Prepayment of amortization payments                           $ 415,000,000.0                        
Receivables Securitization Facility [Member] | Secured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, maximum borrowing capacity, amount                                       592,100,000   592,100,000 $ 571,000,000.0      
Long-term debt                                       0   0 0      
Debt instrument, maturity date       Jul. 22, 2019                                            
Receivables backed financing, maximum borrowing amount       $ 700,000,000.0                                            
Loans and Leases Receivable, Collateral for Secured Borrowings                                       $ 959,300,000   $ 959,300,000 $ 887,000,000.0      
Debt instrument, amended maturity date       May 02, 2022                                            
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%   0.25% 0.25%   0.25%  
Receivables Securitization Facility [Member] | Secured Debt [Member] | LIBOR [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin       0.80%                                            
Variable rate basis       one month LIBOR                                            
Other Credit Facility [Member]                                                    
Debt Instrument [Line Items]                                                    
Repayment of debt                                   $ 104,700,000                
Senior Notes Due September 15, 2024 | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, interest rate                           3.00%                        
Long-term debt                           $ 500,000,000.0                        
Senior Notes Due September 15, 2027 [member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, interest rate                           3.375%                        
Long-term debt                           $ 500,000,000.0                        
Term Loan Facility [Member]                                                    
Debt Instrument [Line Items]                                                    
Prepayment of outstanding principal amount                   $ 540,000,000.0     485,000,000.0                          
Term Loan Facility [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Prepayment of amortization payments                           575,000,000.0   $ 200,000,000.0                    
Credit Facility, maximum borrowing capacity                                 $ 2,300,000,000                  
Debt Instrument, Term, in Years                                 5 years                  
Amount Drawn on Unsecured Term Loan                                 $ 1,200,000,000                  
Amount Drawn On Delayed Draw Term Loan                                                   $ 600,000,000.0
Senior Notes due 2024 [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                           $ 500,000,000.0                        
Debt instrument, interest rate                           3.00%                        
Debt instrument, maturity year                           2024                        
Senior Notes due 2024 [Member] | Tendered and Exchanged Notes [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                                       $ 490,000,000.0   $ 490,000,000.0        
Senior Notes due 2027 [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                           $ 500,000,000.0                        
Debt instrument, interest rate                           3.375%                        
Debt instrument, maturity year                           2027                        
Senior Notes due 2027 [Member] | Tendered and Exchanged Notes [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, face amount                                       491,000,000.0   491,000,000.0        
Five Year Term Loan                                                    
Debt Instrument [Line Items]                                                    
Long-term debt                                       300,000,000.0   $ 300,000,000.0        
Credit Facility, maximum borrowing capacity   $ 300,000,000.0                                                
Debt instrument, maturity period   5 years                                                
Credit facility, maturity date   Jun. 07, 2024                                                
Debt instrument, interest rate description                                           The applicable interest rate margin was initially 0.825% to 1.750% per annum for LIBOR rate loans and 0.000% to 0.750% per annum for alternate base rate loans, in each case depending on the Leverage Ratio (as defined in the credit agreement) or our corporate credit ratings, whichever yields a lower applicable interest rate margin, at such time.        
Five Year Term Loan | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Prepayment of outstanding principal amount               $ 262,500,000                       87,500,000            
Long-term debt                                       $ 1,396,900,000   $ 1,396,900,000        
Credit Facility, maximum borrowing capacity                     $ 1,750,000,000                              
Debt instrument, maturity period           5 years   5 years     5 years                 5 years            
Five Year Term Loan | LIBOR [Member] | Minimum [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin   0.825%                                                
Five Year Term Loan | LIBOR [Member] | Minimum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin           1.00%                                        
Five Year Term Loan | LIBOR [Member] | Maximum [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin   1.75%                                                
Five Year Term Loan | LIBOR [Member] | Maximum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin           1.95%                                        
Five Year Term Loan | Base Rate [Member] | Minimum [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin   0.00%                                                
Five Year Term Loan | Base Rate [Member] | Minimum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin           0.00%                                        
Five Year Term Loan | Base Rate [Member] | Maximum [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin   0.75%                                                
Five Year Term Loan | Base Rate [Member] | Maximum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin           0.95%                                        
Revolving Credit Facility [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Long-term debt                                       $ 0   0 $ 0      
Credit Facility, maximum borrowing capacity                                 $ 2,000,000,000.0                  
Credit facility, maturity date                             Jul. 01, 2020                      
Debt Instrument, Term, in Years                                 5 years                  
Committed Principal Amount Extended to July 1, 2022                             $ 1,900,000,000                      
Revolving Credit Facility [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Credit Facility, maximum borrowing capacity                                       2,000,000,000.0   2,000,000,000.0        
Revolving Credit Facility [Member] | Letter of Credit [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Capacity available for special purpose                                 $ 150,000,000                  
Revolving Credit Facility [Member] | Canadian Dollar Borrowing [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Capacity available for special purpose                                 400,000,000                  
Revolving Credit Facility [Member] | Future Mexican Peso Sub-Facility [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Credit Facility, maximum borrowing capacity                                 $ 200,000,000                  
Credit Facility [Member] | Unsecured Debt [Member] | LIBOR Based Borrowings [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                                 1.125%                  
Credit Facility [Member] | Unsecured Debt [Member] | Base Rate [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                                 0.125%                  
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member]                                                    
Debt Instrument [Line Items]                                                    
Facility commitment                                 0.125%                  
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | LIBOR Based Borrowings [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                                 1.00%                  
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | Base Rate [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                                 0.00%                  
Credit Facility [Member] | Unsecured Debt [Member] | Maximum [Member]                                                    
Debt Instrument [Line Items]                                                    
Facility commitment                                 0.25%                  
Credit Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | LIBOR Based Borrowings [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                                 1.50%                  
Credit Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | Base Rate [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin                                 0.50%                  
Farm Credit Facility [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Long-term debt                                       598,600,000   598,600,000 599,400,000      
Credit Facility, maximum borrowing capacity $ 600,000,000.0                               $ 600,000,000.0                  
Debt Instrument, Term, in Years 7 years                               7 years                  
Farm Credit Facility [Member] | Unsecured Debt [Member] | Maximum [Member]                                                    
Debt Instrument [Line Items]                                                    
Credit facility, amount of potential increase to the principal amount $ 300,000,000.0                                                  
Cooperatieve Rabobank U.A., New York Branch European Revolving Credit Facility [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Debt instrument, maturity period                 3 years                                  
Incremental line of credit | €                 € 100,000,000.0                                  
Cooperatieve Rabobank U.A., New York Branch European Revolving Credit Facility [Member] | Unsecured Debt [Member] | Foreign Exchange Contract [Member]                                                    
Debt Instrument [Line Items]                                                    
Derivative, Notional Amount                                       351,000,000.0   351,000,000.0        
Cooperatieve Rabobank U.A., New York Branch European Revolving Credit Facility [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Long-term debt                                       350,000,000.0   350,000,000.0 355,000,000.0      
Credit Facility, maximum borrowing capacity | €                 € 500,000,000.0                                  
Credit facility, maturity date                 Apr. 27, 2021                                  
Line of credit facility, maximum Euro denominated borrowing capacity | €                 € 500,000,000.0                                  
Current portion of long-term debt                                       $ 175,000,000.0   $ 175,000,000.0        
Wells Fargo Bank, NA Credit Facility [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Credit Facility, maximum borrowing capacity                         $ 450,000,000.0           $ 450,000,000.0              
Debt instrument, maturity period                                     364 days              
Debt, Weighted Average Interest Rate                                       3.17%   3.17%     3.17%  
Borrowings outstanding                                       $ 0   $ 0 $ 0      
Debt instrument, maturity date                         Oct. 23, 2020                          
364-Day Term Loan [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Repayment of debt               $ 300,000,000.0                                    
Credit Facility, maximum borrowing capacity                     $ 300,000,000.0                              
Debt instrument, maturity period               364 days     364 days                              
Three Year Term Loan [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Prepayment of outstanding principal amount               $ 926,500,000                         $ 700,000,000.0          
Credit Facility, maximum borrowing capacity                     $ 1,750,000,000                              
Debt instrument, maturity period           3 years   3 years     3 years                 3 years 3 years          
Three Year Term Loan [Member] | LIBOR [Member] | Minimum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin           1.00%                                        
Three Year Term Loan [Member] | LIBOR [Member] | Maximum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin           1.875%                                        
Three Year Term Loan [Member] | Base Rate [Member] | Minimum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin           0.00%                                        
Three Year Term Loan [Member] | Base Rate [Member] | Maximum [Member] | DDTL Credit Agreement [Member]                                                    
Debt Instrument [Line Items]                                                    
Applicable margin           0.875%                                        
Brazil Delayed Draw Credit Facilities [Member] | Unsecured Debt [Member]                                                    
Debt Instrument [Line Items]                                                    
Long-term debt | R$                                                 R$ 199,500,000  
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 initial drowdowns period         18 months                                          
Number of drawdowns under credit facility | Drawdown         10                                          
Amount of incremental drawdowns | R$         R$ 50,000,000.0                                          
Credit facility semiannual installments repayment beginning date         Apr. 10, 2021                                          
Credit facility basis spread on floating rate         1.50%                                          
Percentage of fee paid on unused credit facility         0.45%                                          
v3.19.3
Debt - Schedule of Aggregate Maturities of Debt (Details)
$ in Millions
Sep. 30, 2019
USD ($)
Long-term Debt, Excluding Capital Lease Obligations [Member]  
Debt Instrument [Line Items]  
Fiscal 2020 $ 550.8
Fiscal 2021 184.8
Fiscal 2022 755.0
Fiscal 2023 542.6
Fiscal 2024 1,951.7
Thereafter 5,729.2
Fair value of debt step-up, deferred financing costs and unamortized bond discounts 163.5
Total 9,877.6
Capital Lease Obligations [Member] | Secured Debt [Member]  
Debt Instrument [Line Items]  
Fiscal 2020 6.4
Fiscal 2021 4.8
Fiscal 2022 3.9
Fiscal 2023 2.0
Fiscal 2024 0.9
Thereafter 150.9
Fair value step-up 16.9
Total $ 185.8
v3.19.3
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors - Condensed Consolidating Statements of Income (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Condensed Income Statements Captions [Line Items]                      
Net sales                 $ 18,289.0 $ 16,285.1 $ 14,859.7
Cost of goods sold $ 3,572.9 $ 3,701.1 $ 3,720.4 $ 3,545.6 $ 3,304.6 $ 3,270.4 $ 3,227.6 $ 3,120.5 14,540.0 12,923.1 12,141.5
Selling, general and administrative, excluding intangible amortization                 1,715.2 1,546.6 1,457.2
Selling, general and administrative intangible amortization                 400.2 296.6 229.6
Loss (gain) on disposal of assets (3.9) 6.5   (43.8)         (41.2) 10.1 4.8
Multiemployer pension withdrawal (income) expense (4.6) (1.7)       4.2   180.0 (6.3) 184.2  
Land and Development impairments     13.0   2.6 1.7   27.6 13.0 31.9 46.7
Restructuring and other costs 66.6 17.9 34.8 54.4 40.3 17.1 31.7 16.3 173.7 105.4 196.7
Operating profit (loss)                 1,494.4 1,187.2 783.2
Interest expense, net                 (431.3) (293.8) (222.5)
(Loss) gain on extinguishment of debt (0.4) (3.2) 0.4 (1.9) (0.1) 0.9 0.1 (1.0) (5.1) (0.1) 1.8
Pension and other postretirement non-service (expense) income                 74.2 95.3 51.8
Other (expense) income, net                 2.4 12.7 11.5
Equity in income of unconsolidated entities                 10.1 33.5 39.0
Gain on sale of HH&B                     192.8
Income before income taxes                 1,144.7 1,034.8 857.6
Income tax (expense) benefit 89.3 77.6 47.2 62.7 95.4 84.5 18.8 (1,073.2) (276.8) 874.5 (159.0)
Consolidated net income 312.4 253.8 161.9 139.8 280.0 271.3 224.5 1,133.5 867.9 1,909.3 698.6
Less: Net (income) loss attributable to noncontrolling interests                 (5.0) (3.2) 9.6
Net income attributable to common stockholders $ 310.8 $ 252.6 $ 160.4 $ 139.1 $ 279.6 $ 268.2 $ 223.2 $ 1,135.1 862.9 1,906.1 708.2
Comprehensive income (loss) attributable to common stockholders                 489.0 1,668.1 877.3
Parent [Member]                      
Condensed Income Statements Captions [Line Items]                      
Interest expense, net                   (12.5)  
(Loss) gain on extinguishment of debt                   (0.2)  
Equity in income of consolidated entities                 862.9    
Income before income taxes                 862.9 (12.7)  
Income tax (expense) benefit                   3.1  
Consolidated net income                 862.9 (9.6)  
Net income attributable to common stockholders                 862.9 (9.6)  
Comprehensive income (loss) attributable to common stockholders                 489.0 (9.6)  
Issuer [Member]                      
Condensed Income Statements Captions [Line Items]                      
Selling, general and administrative, excluding intangible amortization                 (0.9) 1.5 0.8
Multiemployer pension withdrawal (income) expense                 (0.2) 6.5  
Restructuring and other costs                 7.6 8.7 1.3
Operating profit (loss)                 (6.5) (16.7) (2.1)
Interest expense, net                 (246.8) (76.9) (40.1)
Intercompany interest (expense) income, net                 (3.2) 28.1 18.5
(Loss) gain on extinguishment of debt                 (3.0) (1.4) (0.9)
Other (expense) income, net                 (5.1) 0.7 (1.0)
Equity in income of consolidated entities                 1,149.9 1,962.0 724.2
Income before income taxes                 885.3 1,895.8 698.6
Income tax (expense) benefit                 67.9 19.9 9.6
Consolidated net income                 953.2 1,915.7 708.2
Net income attributable to common stockholders                 953.2 1,915.7 708.2
Comprehensive income (loss) attributable to common stockholders                 577.7 1,677.7 877.3
Guarantor Subsidiaries [Member]                      
Condensed Income Statements Captions [Line Items]                      
Net sales                 2,543.8 2,593.0 2,485.6
Cost of goods sold                 2,026.0 2,004.2 2,289.0
Selling, general and administrative, excluding intangible amortization                 120.0 94.1 123.9
Selling, general and administrative intangible amortization                 104.4 104.2 104.2
Loss (gain) on disposal of assets                 0.1 0.2  
Multiemployer pension withdrawal (income) expense                 (0.3) 12.5  
Restructuring and other costs                 0.3 5.6 26.0
Operating profit (loss)                 293.3 372.2 (57.5)
Interest expense, net                 (163.4) (173.5) (172.5)
Intercompany interest (expense) income, net                 (115.3) (87.6) (53.1)
(Loss) gain on extinguishment of debt                 (1.9) 1.9 3.1
Pension and other postretirement non-service (expense) income                 (6.5) (6.9)  
Other (expense) income, net                 3.4 (22.5) (30.2)
Equity in income of unconsolidated entities                   7.5 12.7
Equity in income of consolidated entities                 729.2 1,343.8 643.7
Income before income taxes                 738.8 1,434.9 346.2
Income tax (expense) benefit                 7.2 131.8 120.5
Consolidated net income                 746.0 1,566.7 466.7
Net income attributable to common stockholders                 746.0 1,566.7 466.7
Comprehensive income (loss) attributable to common stockholders                 377.3 1,351.4 609.0
Non-Guarantor Subsidiaries [Member]                      
Condensed Income Statements Captions [Line Items]                      
Net sales                 18,364.4 16,345.4 15,208.5
Cost of goods sold                 15,114.2 13,572.2 12,686.9
Selling, general and administrative, excluding intangible amortization                 1,596.1 1,451.0 1,332.5
Selling, general and administrative intangible amortization                 295.8 192.4 125.4
Loss (gain) on disposal of assets                 (41.3) 9.9 4.8
Multiemployer pension withdrawal (income) expense                 (5.8) 165.2  
Land and Development impairments                 13.0 31.9 46.7
Restructuring and other costs                 165.8 91.1 169.4
Operating profit (loss)                 1,226.6 831.7 842.8
Interest expense, net                 (21.1) (30.9) (9.9)
Intercompany interest (expense) income, net                 99.5 59.5 34.6
(Loss) gain on extinguishment of debt                 (0.2) (0.4) (0.4)
Pension and other postretirement non-service (expense) income                 80.7 102.2 51.8
Other (expense) income, net                 4.1 34.5 42.7
Equity in income of unconsolidated entities                 10.1 26.0 26.3
Gain on sale of HH&B                     192.8
Income before income taxes                 1,399.7 1,022.6 1,180.7
Income tax (expense) benefit                 (351.9) 719.7 (289.1)
Consolidated net income                 1,047.8 1,742.3 891.6
Less: Net (income) loss attributable to noncontrolling interests                 (5.0) (3.2) 9.6
Net income attributable to common stockholders                 1,042.8 1,739.1 901.2
Comprehensive income (loss) attributable to common stockholders                 682.4 1,498.6 1,071.8
Eliminations [Member]                      
Condensed Income Statements Captions [Line Items]                      
Net sales                 (2,619.2) (2,653.3) (2,834.4)
Cost of goods sold                 (2,600.2) (2,653.3) (2,834.4)
Operating profit (loss)                 (19.0)    
Intercompany interest (expense) income, net                 19.0    
Equity in income of consolidated entities                 (2,742.0) (3,305.8) (1,367.9)
Income before income taxes                 (2,742.0) (3,305.8) (1,367.9)
Consolidated net income                 (2,742.0) (3,305.8) (1,367.9)
Net income attributable to common stockholders                 (2,742.0) (3,305.8) (1,367.9)
Comprehensive income (loss) attributable to common stockholders                 $ (1,637.4) $ (2,850.0) $ (1,680.8)
v3.19.3
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors - Condensed Consolidating Balance Sheets (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Current Assets:        
Cash and cash equivalents $ 151.6 $ 636.8    
Accounts receivable 2,193.2 2,010.7    
Inventories 2,107.5 1,829.6    
Other current assets 496.2 248.5    
Assets held for sale 25.8 59.5    
Total current assets 4,974.3 4,785.1    
Property, plant and equipment, net 11,189.5 9,082.5    
Goodwill 7,285.6 5,577.6 $ 5,528.3 $ 4,778.1
Intangibles, net 4,059.5 3,122.0 3,329.3  
Restricted assets held by special purpose entities 1,274.3 1,281.0    
Prepaid pension asset 224.7 420.0    
Other assets 1,148.8 1,092.3    
Total Assets 30,156.7 25,360.5 25,089.0  
Current liabilities:        
Current portion of debt 561.1 740.7    
Accounts payable 1,831.8 1,716.8    
Accrued compensation and benefits 470.4 399.3    
Other current liabilities 571.8 476.5    
Total current liabilities 3,435.1 3,333.3    
Long-term debt due after one year 9,502.3 5,674.5    
Pension liabilities, net of current portion 294.0 261.3    
Postretirement benefit liabilities, net of current portion 162.1 134.8    
Non-recourse liabilities held by special purpose entities 1,145.2 1,153.7    
Deferred income taxes 2,878.0 2,321.5    
Other long-term liabilities 1,053.9 994.8    
Redeemable noncontrolling interests 1.9 4.2    
Total stockholders’ equity 11,669.9 11,469.4 10,342.5  
Noncontrolling interests 14.3 13.0    
Total equity 11,684.2 11,482.4 $ 10,386.1  
Total Liabilities and Equity 30,156.7 25,360.5    
Parent [Member]        
Current Assets:        
Investments in consolidated subsidiaries 11,973.7      
Other assets   3.4    
Total Assets 11,973.7 3.4    
Current liabilities:        
Accrued compensation and benefits 0.2      
Intercompany payables 303.6 13.0    
Total current liabilities 303.8 13.0    
Total stockholders’ equity 11,669.9 (9.6)    
Total equity 11,669.9 (9.6)    
Total Liabilities and Equity 11,973.7 3.4    
Issuer [Member]        
Current Assets:        
Cash and cash equivalents   0.2    
Accounts receivable   0.1    
Other current assets 1.2 0.4    
Intercompany receivables 238.2 27.7    
Total current assets 239.4 28.4    
Intercompany notes receivable 155.0 884.2    
Investments in consolidated subsidiaries 18,460.4 13,260.3    
Other assets 67.8 12.4    
Total Assets 18,922.6 14,185.3    
Current liabilities:        
Current portion of debt 135.3      
Accounts payable 0.7 0.8    
Accrued compensation and benefits   0.2    
Other current liabilities 18.6 3.2    
Intercompany payables 10.5 506.6    
Total current liabilities 165.1 510.8    
Long-term debt due after one year 6,608.0 2,179.4    
Intercompany notes payable 636.3      
Other long-term liabilities 12.9 16.1    
Total stockholders’ equity 11,500.3 11,479.0    
Total equity 11,500.3 11,479.0    
Total Liabilities and Equity 18,922.6 14,185.3    
Guarantor Subsidiaries [Member]        
Current Assets:        
Cash and cash equivalents 17.8 490.8    
Accounts receivable 31.1 196.5    
Inventories 254.3 233.4    
Other current assets 11.8 17.2    
Intercompany receivables   269.8    
Total current assets 315.0 1,207.7    
Property, plant and equipment, net 18.9 21.3    
Goodwill 1,158.6 1,151.3    
Intangibles, net 1,485.0 1,589.4    
Intercompany notes receivable 156.9 33.1    
Investments in consolidated subsidiaries 20,039.9 15,066.3    
Other assets 185.3 172.8    
Total Assets 23,359.6 19,241.9    
Current liabilities:        
Current portion of debt 108.9 609.5    
Accounts payable 31.3 40.3    
Accrued compensation and benefits 14.6 10.7    
Other current liabilities 83.8 77.7    
Intercompany payables 1,052.9 570.4    
Total current liabilities 1,291.5 1,308.6    
Long-term debt due after one year 1,982.9 2,460.1    
Intercompany notes payable 2,390.5 2,865.4    
Pension liabilities, net of current portion 147.6 135.9    
Postretirement benefit liabilities, net of current portion 25.7 28.1    
Deferred income taxes 278.9 291.0    
Other long-term liabilities 131.2 106.2    
Total stockholders’ equity 17,111.3 12,046.6    
Total equity 17,111.3 12,046.6    
Total Liabilities and Equity 23,359.6 19,241.9    
Non-Guarantor Subsidiaries [Member]        
Current Assets:        
Cash and cash equivalents 133.8 145.8    
Accounts receivable 2,201.7 1,840.2    
Inventories 1,853.2 1,596.2    
Other current assets 483.2 230.9    
Intercompany receivables 1,340.5 792.8    
Assets held for sale 25.8 59.5    
Total current assets 6,038.2 4,665.4    
Property, plant and equipment, net 11,170.6 9,061.2    
Goodwill 6,127.0 4,426.3    
Intangibles, net 2,574.5 1,532.6    
Restricted assets held by special purpose entities 1,274.3 1,281.0    
Prepaid pension asset 224.7 420.0    
Intercompany notes receivable 3,026.8 2,865.4    
Other assets 971.8 910.8    
Total Assets 31,407.9 25,162.7    
Current liabilities:        
Current portion of debt 316.9 131.2    
Accounts payable 1,839.4 1,701.8    
Accrued compensation and benefits 455.6 388.4    
Other current liabilities 469.4 395.6    
Intercompany payables 211.7 0.3    
Total current liabilities 3,293.0 2,617.3    
Long-term debt due after one year 911.4 1,035.0    
Intercompany notes payable 311.9 917.3    
Pension liabilities, net of current portion 146.4 125.4    
Postretirement benefit liabilities, net of current portion 136.4 106.7    
Non-recourse liabilities held by special purpose entities 1,145.2 1,153.7    
Deferred income taxes 2,675.2 2,037.6    
Other long-term liabilities 909.8 872.5    
Redeemable noncontrolling interests 1.9 4.2    
Total stockholders’ equity 21,862.4 16,280.0    
Noncontrolling interests 14.3 13.0    
Total equity 21,876.7 16,293.0    
Total Liabilities and Equity 31,407.9 25,162.7    
Eliminations [Member]        
Current Assets:        
Accounts receivable (39.6) (26.1)    
Intercompany receivables (1,578.7) (1,090.3)    
Total current assets (1,618.3) (1,116.4)    
Intercompany notes receivable (3,338.7) (3,782.7)    
Investments in consolidated subsidiaries (50,474.0) (28,326.6)    
Other assets (76.1) (7.1)    
Total Assets (55,507.1) (33,232.8)    
Current liabilities:        
Accounts payable (39.6) (26.1)    
Intercompany payables (1,578.7) (1,090.3)    
Total current liabilities (1,618.3) (1,116.4)    
Intercompany notes payable (3,338.7) (3,782.7)    
Deferred income taxes (76.1) (7.1)    
Total stockholders’ equity (50,474.0) (28,326.6)    
Total equity (50,474.0) (28,326.6)    
Total Liabilities and Equity $ (55,507.1) $ (33,232.8)    
v3.19.3
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors - Condensed Consolidating Statements of Cash Flows (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Operating activities:      
Net cash provided by (used for) operating activities $ 2,310.2 $ 1,931.2 $ 1,463.8
Investing activities:      
Capital expenditures (1,369.1) (999.9) (778.6)
Cash paid for purchase of businesses, net of cash acquired (3,374.2) (239.9) (1,588.5)
Cash receipts on sold trade receivables   461.6 411.2
Investment in unconsolidated entities (11.2) (114.3) (2.5)
Proceeds from sale of HH&B     1,005.9
Proceeds from sale of property, plant and equipment 119.1 23.3 52.6
Proceeds from property, plant and equipment insurance settlement 25.5 7.9 3.5
Other 30.3 46.2 27.7
Net cash used for investing activities (4,579.6) (815.1) (868.7)
Financing activities:      
Proceeds from issuance of notes 2,498.2 1,197.3 998.4
Additions (repayments) to revolving credit facilities 37.2 (115.5) 421.8
Additions to debt 5,061.6 855.2 742.6
Repayments of debt (5,631.6) (2,032.9) (2,331.9)
Changes in commercial paper, net 339.2    
Other financing additions (repayments) 10.0 (24.2) 23.9
Issuances of common stock, net of related minimum tax withholdings 18.3 26.6 35.8
Purchases of common stock (88.6) (195.1) (93.0)
Cash dividends paid to stockholders (467.9) (440.9) (403.2)
Cash distributions paid to noncontrolling interests (4.3) (33.3) (47.0)
Other 8.1 7.7 (2.8)
Net cash provided by (used for) financing activities 1,780.2 (755.1) (655.4)
Effect of exchange rate changes on cash, cash equivalents and restricted cash 4.0 (28.2) (2.1)
(Decrease) increase in cash, cash equivalents and restricted cash (485.2) 332.8 (62.4)
Cash, cash equivalents and restricted cash at beginning of period 636.8 304.0 366.4
Cash, cash equivalents and restricted cash at end of period 151.6 636.8 304.0
Parent [Member]      
Operating activities:      
Net cash provided by (used for) operating activities 538.2 4.1  
Investing activities:      
Intercompany capital investment (563.0)    
Net cash used for investing activities (563.0)    
Financing activities:      
Repayments of debt   (0.1)  
Issuances of common stock, net of related minimum tax withholdings 18.3    
Purchases of common stock (88.6)    
Cash dividends paid to stockholders (467.9)    
Intercompany capital receipt 563.0    
Other   (4.0)  
Net cash provided by (used for) financing activities 24.8 (4.1)  
Issuer [Member]      
Operating activities:      
Net cash provided by (used for) operating activities (203.8) 563.4 928.6
Investing activities:      
Cash paid for purchase of businesses, net of cash acquired     (61.0)
Intercompany notes issued     (734.1)
Intercompany notes proceeds 9.3   5.0
Intercompany capital investment (563.0) (2.0) (200.0)
Net cash used for investing activities (553.7) (2.0) (990.1)
Financing activities:      
Proceeds from issuance of notes 2,498.2 1,197.3 998.4
Additions (repayments) to revolving credit facilities 46.0 (106.7) 421.8
Additions to debt 4,101.8 2.7 742.6
Repayments of debt (2,400.0) (1,025.2) (1,657.1)
Changes in commercial paper, net 339.2    
Issuances of common stock, net of related minimum tax withholdings   26.6 35.8
Purchases of common stock   (195.1) (93.0)
Cash dividends paid to stockholders   (440.9) (403.2)
Intercompany notes borrowing     3.5
Intercompany notes payments (3,800.0)   (3.5)
Other (27.9) (19.9) (3.2)
Net cash provided by (used for) financing activities 757.3 (561.2) 42.1
(Decrease) increase in cash, cash equivalents and restricted cash (0.2) 0.2 (19.4)
Cash, cash equivalents and restricted cash at beginning of period 0.2   19.4
Cash, cash equivalents and restricted cash at end of period   0.2  
Guarantor Subsidiaries [Member]      
Operating activities:      
Net cash provided by (used for) operating activities 442.1 375.8 344.2
Investing activities:      
Capital expenditures   (1.2) (1.4)
Cash paid for purchase of businesses, net of cash acquired     (118.1)
Proceeds from sale of property, plant and equipment     0.2
Intercompany notes issued (0.1) (1.4)  
Intercompany notes proceeds 6.7 4.5 2.4
Intercompany capital investment     (200.4)
Intercompany return of capital   82.6  
Other 30.2 18.6 8.3
Net cash used for investing activities 36.8 103.1 (309.0)
Financing activities:      
Repayments of debt (957.5) (22.5) (206.6)
Other financing additions (repayments)   (8.9) (26.9)
Intercompany notes borrowing 75.7   519.8
Intercompany notes payments (70.1)   (519.8)
Intercompany capital receipt     200.0
Net cash provided by (used for) financing activities (951.9) (31.4) (33.5)
(Decrease) increase in cash, cash equivalents and restricted cash (473.0) 447.5 1.7
Cash, cash equivalents and restricted cash at beginning of period 490.8 43.3 41.6
Cash, cash equivalents and restricted cash at end of period 17.8 490.8 43.3
Non-Guarantor Subsidiaries [Member]      
Operating activities:      
Net cash provided by (used for) operating activities 1,533.7 1,016.3 192.4
Investing activities:      
Capital expenditures (1,369.1) (998.7) (777.2)
Cash paid for purchase of businesses, net of cash acquired (3,374.2) (239.9) (1,409.4)
Cash receipts on sold trade receivables   461.6 411.2
Investment in unconsolidated entities (11.2) (114.3) (2.5)
Proceeds from sale of HH&B     1,005.9
Proceeds from sale of property, plant and equipment 119.1 23.3 52.4
Proceeds from property, plant and equipment insurance settlement 25.5 7.9 3.5
Intercompany notes issued (75.7)   (523.3)
Intercompany notes proceeds 3,870.1   523.3
Other 0.1 27.6 19.4
Net cash used for investing activities (815.4) (832.5) (696.7)
Financing activities:      
Additions (repayments) to revolving credit facilities (8.8) (8.8)  
Additions to debt 959.8 852.5  
Repayments of debt (2,274.1) (985.1) (468.2)
Other financing additions (repayments) 10.0 (15.3) 50.8
Cash distributions paid to noncontrolling interests (4.3) (33.3) (47.0)
Intercompany notes borrowing 0.1 1.4 734.1
Intercompany notes payments (16.0) (4.5) (7.4)
Intercompany capital receipt 563.0 2.0 200.4
Intercompany capital distribution   (82.6)  
Intercompany dividends   (28.4) (1.4)
Other 36.0 31.6 0.4
Net cash provided by (used for) financing activities (734.3) (270.5) 461.7
Effect of exchange rate changes on cash, cash equivalents and restricted cash 4.0 (28.2) (2.1)
(Decrease) increase in cash, cash equivalents and restricted cash (12.0) (114.9) (44.7)
Cash, cash equivalents and restricted cash at beginning of period 145.8 260.7 305.4
Cash, cash equivalents and restricted cash at end of period 133.8 145.8 260.7
Eliminations [Member]      
Operating activities:      
Net cash provided by (used for) operating activities   (28.4) (1.4)
Investing activities:      
Intercompany notes issued 75.8 1.4 1,257.4
Intercompany notes proceeds (3,886.1) (4.5) (530.7)
Intercompany capital investment 1,126.0 2.0 400.4
Intercompany return of capital   (82.6)  
Net cash used for investing activities (2,684.3) (83.7) 1,127.1
Financing activities:      
Intercompany notes borrowing (75.8) (1.4) (1,257.4)
Intercompany notes payments 3,886.1 4.5 530.7
Intercompany capital receipt (1,126.0) (2.0) (400.4)
Intercompany capital distribution   82.6  
Intercompany dividends   28.4 1.4
Net cash provided by (used for) financing activities $ 2,684.3 $ 112.1 $ (1,125.7)
v3.19.3
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors - Noncash Operating, Investing and Financing Activities (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Parent [Member]      
Operating activities:      
Intercompany receivables $ (140.9)    
Investing activities:      
Intercompany capital investment (10,396.2)    
Intercompany return of capital 606.7    
Financing activities:      
Intercompany capital distribution (563.0)    
Issuer [Member]      
Investing activities:      
Intercompany notes issued (3,800.0)    
Intercompany notes proceeds 4,519.8   $ 1,604.9
Intercompany capital investment (5,895.5) $ (755.3) (2,200.5)
Intercompany return of capital 1,479.6 1,356.3 1,083.6
Financing activities:      
Intercompany notes borrowing 4,436.3   69.0
Intercompany notes payments   (69.0)  
Intercompany capital receipt 10,396.2    
Intercompany capital distribution (606.7)    
Guarantor Subsidiaries [Member]      
Investing activities:      
Intercompany notes issued (4,667.2)    
Intercompany notes proceeds 4,536.8    
Intercompany capital investment (6,889.3) (335.3) (2,908.0)
Intercompany return of capital 1,032.7 766.0 1,556.2
Financing activities:      
Intercompany notes borrowing 2,541.5 392.1 1,604.9
Intercompany notes payments (3,022.0) (14.0) (1,604.9)
Intercompany capital receipt 5,413.7 736.9 1,728.4
Intercompany capital distribution (457.5) (1,356.3) (1,083.6)
Intercompany dividends paid (302.2)   (144.1)
Non-Guarantor Subsidiaries [Member]      
Operating activities:      
Intercompany payables 140.9    
Investing activities:      
Intercompany notes issued (10,777.8) (392.1) (1,673.9)
Intercompany notes proceeds 6,822.0 83.0  
Financing activities:      
Intercompany notes borrowing 12,267.2    
Intercompany notes payments (12,856.6)    
Intercompany capital receipt 7,371.1 353.7 3,380.1
Intercompany capital distribution (1,491.8) (766.0) (1,556.2)
Intercompany dividends paid (1,435.0) (285.9) (204.5)
Eliminations [Member]      
Operating activities:      
Intercompany receivables 140.9    
Intercompany payables (140.9)    
Investing activities:      
Intercompany notes issued 19,245.0 392.1 1,673.9
Intercompany notes proceeds (15,878.6) (83.0) (1,604.9)
Intercompany capital investment 23,181.0 1,090.6 5,108.5
Intercompany return of capital (3,119.0) (2,122.3) (2,639.8)
Financing activities:      
Intercompany notes borrowing (19,245.0) (392.1) (1,673.9)
Intercompany notes payments 15,878.6 83.0 1,604.9
Intercompany capital receipt (23,181.0) (1,090.6) (5,108.5)
Intercompany capital distribution 3,119.0 2,122.3 2,639.8
Intercompany dividends paid $ 1,737.2 $ 285.9 $ 348.6
v3.19.3
Operating Leases - Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases (Details)
$ in Millions
Sep. 30, 2019
USD ($)
Leases [Abstract]  
Fiscal 2020 $ 214.3
Fiscal 2021 180.1
Fiscal 2022 136.3
Fiscal 2023 108.3
Fiscal 2024 85.3
Thereafter 206.1
Total future minimum lease payments $ 930.4
v3.19.3
Operating Leases - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Leases [Abstract]      
Rental expense $ 346.7 $ 243.7 $ 210.5
v3.19.3
Special Purpose Entities (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Sep. 30, 2018
Dec. 06, 2013
Dec. 31, 2007
Debt Instrument [Line Items]        
Restricted assets held by special purpose entities $ 1,274.3 $ 1,281.0    
Non-recourse liabilities held by special purpose entities $ 1,145.2 $ 1,153.7    
Installment Note [Member]        
Debt Instrument [Line Items]        
Notes Receivable Interest Rate 5.207%      
MeadWestvaco [Member] | Timber Note [Member]        
Debt Instrument [Line Items]        
Restricted assets held by special purpose entities $ 369.1     $ 398.0
MeadWestvaco [Member] | Secured Financing Liability, Maturity in October 2027 [Member]        
Debt Instrument [Line Items]        
Non-recourse liabilities held by special purpose entities 324.5     $ 338.3
MeadWestvaco [Member] | Installment Note [Member]        
Debt Instrument [Line Items]        
Restricted assets held by special purpose entities 905.2   $ 860.0  
MeadWestvaco [Member] | Secured Financing Liability, Maturity in December 2023 [Member]        
Debt Instrument [Line Items]        
Non-recourse liabilities held by special purpose entities $ 820.7   $ 774.0  
v3.19.3
Related Party Transactions - Additional Information (Details) - Affiliated Entity [Member] - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Related Party Transaction [Line Items]      
Net sales to affiliated companies $ 368.4 $ 418.8 $ 423.6
Accounts receivable due from affiliated companies $ 23.0 $ 64.2  
v3.19.3
Commitments and Contingencies - Additional Information (Details)
R$ in Millions
 3 Months Ended 12 Months Ended
Dec. 07, 2018
USD ($)
Sep. 30, 2019
USD ($)
lawsuit
Sep. 30, 2019
USD ($)
lawsuit
Subsidiary
Sep. 30, 2019
BRL (R$)
Subsidiary
Sep. 30, 2018
USD ($)
Sep. 30, 2017
USD ($)
Commitments and Contingencies [Line Items]            
Accrual for Environmental Loss Contingencies   $ 10,800,000 $ 10,800,000      
Litigation cost reimbursement $ 100,000          
Number of Lawsuits the Company Has Been Named a Defendant in Asbestos-related Personal Injury Litigation | lawsuit   825 825      
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense     $ 9,700,000   $ 5,800,000 $ 7,400,000
Guarantor Obligations, Estimated Exposure, Undiscounted   $ 50,000,000 50,000,000      
Guarantor Obligations, Current Carrying Value   10,100,000 10,100,000      
Indirect tax claim - reduction of cost of goods sold   12,200,000        
Brazil Administrative Council of Tax Appeals [Member]            
Commitments and Contingencies [Line Items]            
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense     $ 163,000,000 R$ 678    
Tax claim and conversion description     The matter has proceeded through the CARF principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. On August 6, 2019, CARF published a decision finding us liable for underpayment of tax and interest with respect to the period 2009 to 2012. The matter has proceeded through the CARF principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. On August 6, 2019, CARF published a decision finding us liable for underpayment of tax and interest with respect to the period 2009 to 2012.    
Income tax settlement claim liability   0 $ 0      
Tax claim and conversion, underpayment of tax years description     2009 to 2012 2009 to 2012    
Tax claim and conversion, tax dispute related to tax years description     2003 to 2008 2003 to 2008    
Tax claim and conversion, tax penalties relating to tax years description     2009 to 2012 2009 to 2012    
Tax claim and conversion proceedings covering tax years description     2003 to 2008 and 2009 to 2012 2003 to 2008 and 2009 to 2012    
Brazil [Member]            
Commitments and Contingencies [Line Items]            
Number of subsidiaries | Subsidiary     2 2    
Other Long Term Liabilities [Member]            
Commitments and Contingencies [Line Items]            
Accrual for Environmental Loss Contingencies   5,600,000 $ 5,600,000      
Other Current Liabilities [Member]            
Commitments and Contingencies [Line Items]            
Accrual for Environmental Loss Contingencies   5,200,000 5,200,000      
Capital Addition Purchase Commitments [Member]            
Commitments and Contingencies [Line Items]            
Long-term Purchase Commitment, Estimated Amount   $ 623,000,000 $ 623,000,000      
v3.19.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance at beginning of period [1] $ (695.3) $ (457.3)  
Other comprehensive income (loss) before reclassifications [1] (392.3) (252.2)  
Amounts reclassified from accumulated other comprehensive (income) loss [1] 18.4 14.2  
Net current period other comprehensive income (loss) (373.9) [1] (238.0) [1] $ 169.1
Balance at end of period [1] (1,069.2) (695.3) (457.3)
Accumulated Net Gain (Loss) from Designated or Quality Cash Flow Hedges [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance at beginning of period (0.2) (0.7)  
Other comprehensive income (loss) before reclassifications 1.1 0.0  
Amounts reclassified from accumulated other comprehensive (income) loss (0.2) 0.5  
Net current period other comprehensive income (loss) 0.9 0.5  
Balance at end of period 0.7 (0.2) (0.7)
Accumulated Defined Benefit Plans Adjustment [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance at beginning of period (465.9) (462.5)  
Other comprehensive income (loss) before reclassifications (250.7) (18.6)  
Amounts reclassified from accumulated other comprehensive (income) loss 18.6 15.2  
Net current period other comprehensive income (loss) (232.1) (3.4)  
Balance at end of period (698.0) (465.9) (462.5)
Accumulated Translation Adjustment [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance at beginning of period (229.2) 5.2  
Other comprehensive income (loss) before reclassifications (142.7) (234.4)  
Amounts reclassified from accumulated other comprehensive (income) loss 0.0 0.0  
Net current period other comprehensive income (loss) (142.7) (234.4)  
Balance at end of period (371.9) (229.2) 5.2
Accumulated Net Investment Gain (Loss) [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance at beginning of period 0.0 0.7  
Other comprehensive income (loss) before reclassifications 0.0 0.8  
Amounts reclassified from accumulated other comprehensive (income) loss 0.0 (1.5)  
Net current period other comprehensive income (loss) 0.0 (0.7)  
Balance at end of period $ 0.0 $ 0.0 $ 0.7
[1] All amounts are net of tax and noncontrolling interest
v3.19.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income - Summary of Reclassification out of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Amortization of net actuarial loss, Pre-Tax Amount $ 23.3 $ 20.9 $ 56.4
Amortization of net actuarial loss, Tax (6.1) (5.9) (20.4)
Amortization and settlement recognition of net actuarial loss, included in pension cost 17.2 15.0 36.0
Amortization of prior service credits (costs), Pre-Tax Amount 2.4 0.3 (0.4)
Amortization of prior service credits (costs), Tax (0.6) (0.1) 0.2
Amortization of prior service credits (costs), Net of Tax 1.8 0.2 (0.2)
Available for sale security, before Tax   (1.5)  
Available for sale security, Tax   0.0  
Available for sale security, Net of Tax 0.0 (1.5) 0.0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax (0.3) 0.7 (0.8)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax 0.1 (0.2) 0.3
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax (0.2) 0.5 $ (0.5)
Parent [Member]      
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Amortization of net actuarial loss, Pre-Tax Amount [1],[2] (22.7) (20.9)  
Amortization of net actuarial loss, Tax [1],[2] 5.9 5.9  
Amortization and settlement recognition of net actuarial loss, included in pension cost [1],[2] (16.8) (15.0)  
Amortization of prior service credits (costs), Pre-Tax Amount [1],[2] (2.4) (0.3)  
Amortization of prior service credits (costs), Tax [1],[2] 0.6 0.1  
Amortization of prior service credits (costs), Net of Tax [1],[2] (1.8) (0.2)  
Defined Benefit Plans, before Tax [1] (25.1) (21.2)  
Defined Benefit Plans, Tax [1] 6.5 6.0  
Defined Benefit Plans, Net of Tax [1] (18.6) (15.2)  
Available for sale security, before Tax [1],[3]   1.5  
Available for sale security, Net of Tax [1],[3]   1.5  
Total Reclassifications From Other Comprehensive Income Before Tax [1] (24.8) (20.4)  
Total Reclassifications From Other Comprehensive Income Tax Portion [1] 6.4 6.2  
Total Reclassifications From Other Comprehensive Income Net of Tax [1] (18.4) (14.2)  
Parent [Member] | Interest Rate Contract [Member]      
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax [1],[4] 0.3    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax [1],[4] (0.1)    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax [1],[4] $ 0.2    
Parent [Member] | Foreign Exchange Contract [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]   (0.7)  
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax [1],[5]   0.2  
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax [1],[5]   $ (0.5)  
[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 5. Retirement Plans” for additional details.
[3] These accumulated other comprehensive income components are included in other income, net.
[4] These accumulated other comprehensive income components are included in interest expense, net.
[5] These accumulated other comprehensive income components are included in net sales.
v3.19.3
Accumulated Other Comprehensive Loss and Other Comprehensive Income - Schedule of Other Comprehensive (Loss) Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Other Comprehensive Income Loss [Abstract]      
Other Comprehensive Income (Loss), Foreign Currency Translation (Loss) Gain, before Tax $ (143.4) $ (234.4) $ 80.7
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale of HH&B, before Tax     26.8
Net deferred gain on cash flow hedges, Pre-Tax Amount 1.5    
Reclassification adjustment of net (gain) loss on cash flow hedges included in earnings, Pre-Tax Amount (0.3) 0.7 (0.8)
Net actuarial gain (loss) arising during period, Pre-Tax Amount (335.9) (29.0) 34.1
Amortization of net actuarial loss, Pre-Tax Amount 23.3 20.9 56.4
Prior service cost arising during the period, Pre-Tax Amount (3.9) (7.8) 1.0
Amortization of prior service credits (costs), Pre-Tax Amount 2.4 0.3 (0.4)
Unrealized gain on available for sale security, before tax   0.8 0.7
Reclassification adjustment of net gain on available for sale security included in earnings, Pre-Tax   (1.5)  
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Sale of HH&B, before Tax     4.2
Consolidated other comprehensive loss (456.3) (250.0) 202.7
Less: Other comprehensive (income) loss attributable to noncontrolling interests 1.5 0.0 (0.2)
Other comprehensive loss attributable to common stockholders (454.8) (250.0) 202.5
Foreign currency translation (loss) gain, Tax 0.0 0.0 0.0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale of HH&B, Tax     0.0
Net deferred gain on cash flow hedges, Tax (0.4)    
Reclassification adjustment of net loss on cash flow hedges included in earnings, Tax 0.1 (0.2) 0.3
Net actuarial gain (loss) arising during period, Tax 87.4 15.9 (11.9)
Amortization of net actuarial loss, Tax (6.1) (5.9) (20.4)
Other Comprehensive Income (Loss), Pension and Other Postretirement Plans, Net Prior Service Credit Arising During Period, Tax 0.6 2.3 (0.3)
Amortization of prior service cost (credit), Tax (0.6) (0.1) 0.2
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax   0.0 0.0
Reclassification adjustment of net gain on available for sale security included in earnings, Tax   0.0  
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Sale of HH&B, Tax     (1.3)
Consolidated other comprehensive loss 81.0 12.0 (33.4)
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Tax (0.1) 0.0 0.0
Other comprehensive loss attributable to common stockholders 80.9 12.0 (33.4)
Foreign currency translation (loss) gain, Net of Tax Amount (143.4) (234.4) 80.7
Sale of HH&B 0.0 0.0 26.8
Net deferred gain on cash flow hedges, Net of Tax Amount 1.1 0.0 0.0
Reclassification adjustment of net loss on cash flow hedges included in earnings, Net of Tax Amount (0.2) 0.5 (0.5)
Net actuarial (loss) gain arising during period (248.5) (13.1) 22.2
Amortization and settlement recognition of net actuarial loss, included in pension and postretirement cost 17.2 15.0 36.0
Prior service (cost) credit arising during period (3.3) (5.5) 0.7
Amortization and curtailment recognition of prior service (credit) cost, included in pension and postretirement cost 1.8 0.2 (0.2)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax   0.8 0.7
Reclassification adjustment of net gain on available for sale security included in earnings, Net of Tax 0.0 (1.5) 0.0
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Sale of HH&B, Net of Tax 0.0 0.0 2.9
Other comprehensive (loss) income, net of tax (375.3) (238.0) 169.3
Less: Other comprehensive income (loss) attributable to noncontrolling interests 1.4 0.0 (0.2)
Net current period other comprehensive income (loss) $ (373.9) [1] $ (238.0) [1] $ 169.1
[1] All amounts are net of tax and noncontrolling interest
v3.19.3
Stockholders' Equity - Additional Information (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Jul. 31, 2015
Equity [Abstract]        
Stock repurchase program, number of shares authorized to be repurchased       40.0
Authorized share repurchase as a percentage of common stock outstanding       15.00%
Treasury stock, shares, acquired 2.1 3.4 1.8  
Purchases of common stock $ 88.6 $ 195.1 $ 93.0  
Stock repurchase program, remaining number of shares authorized to be repurchased 19.1      
v3.19.3
Share-Based Compensation - Summary of Share-based Compensation Plans (Details)
 12 Months Ended
Sep. 30, 2019
shares
 [1]
Amended and Restated 2016 Incentive Stock Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares Available For Issuance 11,700,000
Shares Available For Future Grant 5,100,000
Shares To Be Issued If Performance Is Achieved At Maximum 2,300,000
Expect To Make New Awards Yes
2004 Incentive Stock Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares Available For Issuance 15,800,000 [2]
Shares Available For Future Grant 3,100,000 [2]
Shares To Be Issued If Performance Is Achieved At Maximum 0.0 [2]
Expect To Make New Awards No [2]
2005 Performance Incentive Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares Available For Issuance 12,800,000 [2]
Shares Available For Future Grant 9,000,000.0 [2]
Shares To Be Issued If Performance Is Achieved At Maximum 0.0 [2]
Expect To Make New Awards No [2]
RockTenn (SSCC) Equity Inventive Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares Available For Issuance 7,900,000 [3]
Shares Available For Future Grant 5,900,000 [3]
Shares To Be Issued If Performance Is Achieved At Maximum 0.0 [3]
Expect To Make New Awards No [3]
[1] As part of the Separation, equity-based incentive awards were generally adjusted to maintain the intrinsic value of awards immediately prior to the Separation. The number of unvested restricted stock awards and unexercised stock options and SARs at the time of the Separation were increased by an exchange factor of approximately 1.12. In addition, the exercise price of unexercised stock options and SARs at the time of the Separation was converted to decrease the exercise price by an exchange factor of approximately 1.12.
[2] In connection with the Combination, WestRock assumed all RockTenn and MWV equity incentive plans. We issued awards to certain key employees and our directors pursuant to our RockTenn 2004 Incentive Stock Plan, as amended, and our MWV 2005 Performance Incentive Plan, as amended. The awards were converted into WestRock awards using the conversion factor as described in the Business Combination Agreement.
[3] In connection with the Smurfit-Stone acquisition, we assumed the Smurfit-Stone equity incentive plan, which was renamed the Rock-Tenn Company (SSCC) Equity Incentive Plan. The awards were converted into shares of RockTenn common stock, options and restricted stock units, as applicable, using the conversion factor as described in the merger agreement.
v3.19.3
Share-Based Compensation - Summary of Share-based Compensation Plans (Parenthetical) (Details)
May 15, 2016
Stock Based Compensation [Abstract]  
Share-based Compensation Arrangement by Share-based Payment Award, Spin-off Adjustment, Conversion Factor 1.12
v3.19.3
Share-Based Compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Nov. 02, 2018
Jun. 06, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Allocated Share-based Compensation Expense     $ 64.2 $ 66.8 $ 60.9
Share-based Compensation Expense Included in the Gain on Sale of HH&B         2.9
Reduction of Share-based Compensation Expense Related to the Rescission of Shares Granted in Excess of Plan Limits         5.4
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense     16.3 19.4 22.5
Proceeds from Stock Options Exercised     $ 61.5 $ 44.4 $ 59.2
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     $ 0.0 $ 0.5 $ 0.4
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    
Stock options granted during period     2,665,462    
Aggregate intrinsic value of options exercised     $ 44.5 $ 67.4 $ 54.3
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized     $ 0.5    
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition     6 months    
KapStone [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Ratio of KapStone Shares to WestRock Shares 0.83%        
Fair value of share-based awards issued in business combinations $ 70.8        
Granted 2,665,462        
Weighted average grant date fair value, granted $ 20.99        
KapStone [Member] | Restricted Stock with Service Condition Assumed in Purchase Accounting [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted [1] 742,032        
MPS [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Fair value of share-based awards issued in business combinations   $ 1.9      
Weighted average grant date fair value, granted   $ 54.24      
Ratio of MPS Shares to WestRock Shares   33.00%      
MPS [Member] | Restricted Stock with Service Condition Assumed in Purchase Accounting [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted   119,373     119,373 [1]
[1] These shares vest over approximately one to three years.
v3.19.3
Share-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - Stock Options [Member] - KapStone [Member]
Nov. 02, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected term in years 3 years 1 month 6 days
Expected volatility 27.70%
Risk-free interest rate 3.00%
Dividend yield 4.10%
v3.19.3
Share-Based Compensation - Summary of Changes in Stock Options (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted 0 0 0
Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Outstanding 4,253,654    
Granted 2,665,462    
Exercised (2,403,217)    
Expired (84,560)    
Forfeited (35,162)    
Outstanding 4,396,177 4,253,654  
Exercisable at September 30, 2019 4,296,067    
Vested and expected to vest at September 30, 2019 4,394,409    
Weighted Average Exercise Price, Outstanding $ 33.75    
Weighted Average Exercise Price, Granted 22.06    
Weighted Average Exercise Price, Exercised 21.38    
Weighted Average Exercise Price, Expired 42.04    
Weighted Average Exercise Price, Forfeited 26.52    
Weighted Average Exercise Price, outstanding, end of period 33.32 $ 33.75  
Weighted Average Exercise Price, exercisable at end of period 33.48    
Weighted Average Exercise Price, Vested and expected to vest at September 30, 2019 $ 33.33    
Weighted Average Remaining Contractual Term (in years), Outstanding 3 years 8 months 12 days    
Weighted Average Remaining Contractual Term (in years), Exercisable at September 30, 2019 3 years 7 months 6 days    
Weighted Average Remaining Contractual Term (in years), Vested and expected to vest at September 30, 2019 3 years 8 months 12 days    
Aggregate Intrinsic Value, Outstanding $ 26.7    
Aggregate Intrinsic Value, Exercisable at September 30, 2019 25.7    
Aggregate Intrinsic Value,, Vested and expected to vest at September 30, 2019 $ 26.7    
v3.19.3
Share-Based Compensation - Summary of Changes in SARs (Details) - Stock Appreciation Rights (SARs) [Member]
$ / shares in Units, $ in Millions
 12 Months Ended
Sep. 30, 2019
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Outstanding | shares 36,986
Expired | shares (2,014)
Outstanding | shares 34,972
Exercisable at September 30, 2019 | shares 34,972
Weighted Average Exercise Price, Outstanding | $ / shares $ 27.36
Weighted Average Exercise Price, Expired | $ / shares 9.02
Weighted Average Exercise Price, outstanding, end of period | $ / shares 28.41
Weighted Average Exercise Price, Vested and expected to vest at September 30, 2019 | $ / shares $ 28.41
Weighted Average Remaining Contractual Term (in years), Outstanding 1 year 6 months
Weighted Average Remaining Contractual Term (in years), Exercisable at September 30, 2019 1 year 6 months
Aggregate Intrinsic Value, Outstanding | $ $ 0.3
Aggregate Intrinsic Value, Exercisable at September 30, 2019 | $ $ 0.3
v3.19.3
Share-Based Compensation - Restricted Stock - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
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, Non-Employee Directors [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
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]        
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period   3 years    
Percentage of Award Based on Level of Performance Attained, Maximum 200.00% 200.00%    
Percentage of Award Based on Level of Performance Attained, Minimum 0.00% 0.00%    
Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 80.5 $ 80.5    
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, 2017 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (in years)   2 years 10 months 24 days 2 years 10 months 24 days 2 years 10 months 24 days
Expected volatility   27.20% 29.70% 30.60%
Risk-free rate   2.40% 2.30% 1.40%
Stock Options [Roll Forward]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value   $ 42.64 $ 66.28 $ 64.41
Restricted Stock, Target Awards, 2016 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of Awarded Based on Performance Level Achieved   200.00%    
Restricted Stock, Target Awards, 2015 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of Awarded Based on Performance Level Achieved     103.70%  
Restricted Stock, Target Awards, 2014 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of Awarded Based on Performance Level Achieved       176.60%
v3.19.3
Share-Based Compensation - Summary of Changes in Unvested Restricted Stock (Details) - Restricted Stock [Member] - $ / shares
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares/Units, Unvested 3,224,174    
Shares/Units, Granted 3,673,445 1,116,111 1,605,113
Shares/Units, Vested (2,933,556) (697,717) (1,112,909)
Shares/Units, Forfeited (318,525)    
Shares/Units, Unvested 3,645,538 3,224,174  
Weighted Average Grant Date Fair Value, Unvested $ 51.01    
Weighted Average Grant Date Fair Value, Granted 38.71    
Weighted Average Grant Date Fair Value, Vested 34.51    
Weighted Average Grant Date Fair Value, Forfeited 50.43    
Weighted Average Grant Date Fair Value, Unvested $ 51.94 [1] $ 51.01  
[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 grants to be attained at levels less than target. However, it is possible that the performance attained may vary.
v3.19.3
Share-Based Compensation - Summary of Changes in Unvested Restricted Stock (Parenthetical) (Details)
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2019
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% 200.00%
Percentage of Award Based on Level of Performance Attained, Minimum 0.00% 0.00%
Restricted Stock [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Percentage of Performance Based Awards Reflected 100.00%  
v3.19.3
Share-Based Compensation - Summary of Restricted Stock Shares Granted (Details) - shares
 12 Months Ended
Nov. 02, 2018
Jun. 06, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
KapStone [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted 2,665,462        
Restricted Stock, Non-Employee Directors [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted [1]     39,792 23,285 26,521
Restricted Stock, Attainment of Performance Condition in Excess of Target          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted [2]     1,149,592 45,964 340,319
Restricted Stock Service Conditionand Cash Flowper Share Performance Conditionat Target          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted [3]     652,465 432,655 507,070
Restricted Stock, Service Condition and Relative Total Shareholder Return Market Condition at Target [Member] [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted [3]     407,300 259,695 301,980
Restricted Stock with Service Condition [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted [4]     682,264 354,512 309,850
Restricted Stock with Service Condition Assumed in Purchase Accounting [Member] | MPS [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted   119,373     119,373 [5]
Restricted Stock with Service Condition Assumed in Purchase Accounting [Member] | KapStone [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted [5] 742,032        
Restricted Stock [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted     3,673,445 1,116,111 1,605,113
[1] Non-employee director grants generally vest over a period of up to one year and are deemed issued on the grant date and have voting and dividend rights.
[2] Shares granted in the table above include shares subsequently issued for the level of performance attained in excess of target. Shares issued in fiscal 2019 for the fiscal 2016 Cash Flow Per Share were at 200% of target. Shares issued in fiscal 2018 for the fiscal 2015 Cash Flow Per Share were at 103.7% of target. Shares issued in fiscal 2017 for the fiscal 2014 Cash Flow Per Share were at 176.6% of target. Shares issued in fiscal 2017 also include shares accelerated for terminated employees primarily as a result of the Combination, which were achieved at between 146.5% and 200% of target.
[3] These employee grants vest over approximately three years and have adjustable ranges from 0 - 200% of target subject to the level of performance attained in the respective award agreement. The employee grants with a relative Total Shareholder Return condition were valued using a Monte Carlo simulation, the terms of which are outlined below.
[4] These shares vest over approximately three to four years.
[5] These shares vest over approximately one to three years.
v3.19.3
Share-Based Compensation - Summary of Restricted Stock Shares Granted (Parenthetical) (Details)
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
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, 2016 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of Awarded Based on Performance Level Achieved   200.00%    
Restricted Stock, Target Awards, 2015 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of Awarded Based on Performance Level Achieved     103.70%  
Restricted Stock, Target Awards, 2014 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of Awarded Based on Performance Level Achieved       176.60%
Restricted Stock, Target Awards [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    
Percentage of Award Based on Level of Performance Attained, Maximum 200.00% 200.00%    
Percentage of Award Based on Level of Performance Attained, Minimum 0.00% 0.00%    
Minimum [Member] | Restricted Stock Accelerated in Connection with the Combination [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of Awarded Based on Performance Level Achieved       146.50%
Minimum [Member] | Restricted Stock with Service Condition [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    
Minimum [Member] | Restricted Stock with Service Condition Assumed in Purchase Accounting [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period   1 year    
Maximum [Member] | Restricted Stock Accelerated in Connection with the Combination [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of Awarded Based on Performance Level Achieved       200.00%
Maximum [Member] | Restricted Stock with Service Condition [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period   4 years    
Maximum [Member] | Restricted Stock with Service Condition Assumed in Purchase Accounting [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    
v3.19.3
Share-Based Compensation - Summary of Restricted Stock Awards - Vested, Granted and Changes (Details) - Restricted Stock [Member] - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares of restricted stock vested 2,933,556 697,717 1,112,909
Aggregate fair value of restricted stock vested $ 115.2 $ 46.1 $ 59.5
v3.19.3
Share-Based Compensation - Employee Stock Purchase Plan - Additional Information (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Feb. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense $ 64.2 $ 66.8 $ 58.0  
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 0.2 0.2  
Share-based compensation expense $ 1.2 $ 1.6 $ 1.3  
Shares Available For Future Grant 2.0     2.5
v3.19.3
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Earnings Per Share [Abstract]                      
Net income attributable to common stockholders $ 310.8 $ 252.6 $ 160.4 $ 139.1 $ 279.6 $ 268.2 $ 223.2 $ 1,135.1 $ 862.9 $ 1,906.1 $ 708.2
Less: Distributed and undistributed income available to participating securities, Basic                 (0.1) (0.2) (0.1)
Distributed and undistributed income available to common stockholders, Basic                 862.8 1,905.9 708.1
Less: Distributed and undistributed income available to participating securities, Diluted                 (0.1) (0.2) (0.1)
Distributed and undistributed income available to common stockholders, Diluted                 $ 862.8 $ 1,905.9 $ 708.1
Basic weighted average shares outstanding                 256.6 255.5 252.2
Effect of dilutive stock options and non-participating securities                 2.5 4.3 3.5
Diluted weighted average shares outstanding                 259.1 259.8 255.7
Basic earnings per share attributable to common stockholders $ 1.21 $ 0.98 $ 0.63 $ 0.55 $ 1.10 $ 1.05 $ 0.87 $ 4.45 $ 3.36 $ 7.46 $ 2.81
Diluted earnings per share attributable to common stockholders $ 1.20 $ 0.98 $ 0.62 $ 0.54 $ 1.08 $ 1.03 $ 0.86 $ 4.38 $ 3.33 $ 7.34 $ 2.77
v3.19.3
Earnings per Share - Additional Information (Details) - shares
shares in Millions
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
May 27, 2011
Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 1.3 0.2 0.7  
Smurfit Stone [Member]        
Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Common Stock, Capital Shares Reserved For Future Issuance   0.0 0.2 1.4
v3.19.3
Financial Results by Quarter (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Quarterly Financial Data [Abstract]                      
Net sales $ 4,651.6 $ 4,690.0 $ 4,620.0 $ 4,327.4 $ 4,236.6 $ 4,137.5 $ 4,017.0 $ 3,894.0      
Cost of goods sold 3,572.9 3,701.1 3,720.4 3,545.6 3,304.6 3,270.4 3,227.6 3,120.5 $ 14,540.0 $ 12,923.1 $ 12,141.5
(Gain) loss on disposal of assets (3.9) 6.5   (43.8)         (41.2) 10.1 4.8
Multiemployer pension withdrawal (income) expense (4.6) (1.7)       4.2   180.0 (6.3) 184.2  
Land and Development impairments     13.0   2.6 1.7   27.6 13.0 31.9 46.7
Restructuring and other costs 66.6 17.9 34.8 54.4 40.3 17.1 31.7 16.3 173.7 105.4 196.7
(Loss) gain on extinguishment of debt (0.4) (3.2) 0.4 (1.9) (0.1) 0.9 0.1 (1.0) (5.1) (0.1) 1.8
Income tax benefit (expense) (89.3) (77.6) (47.2) (62.7) (95.4) (84.5) (18.8) 1,073.2 276.8 (874.5) 159.0
Consolidated net income 312.4 253.8 161.9 139.8 280.0 271.3 224.5 1,133.5 867.9 1,909.3 698.6
Net income attributable to common stockholders $ 310.8 $ 252.6 $ 160.4 $ 139.1 $ 279.6 $ 268.2 $ 223.2 $ 1,135.1 $ 862.9 $ 1,906.1 $ 708.2
Basic earnings per share attributable to common stockholders $ 1.21 $ 0.98 $ 0.63 $ 0.55 $ 1.10 $ 1.05 $ 0.87 $ 4.45 $ 3.36 $ 7.46 $ 2.81
Diluted earnings per share attributable to common stockholders $ 1.20 $ 0.98 $ 0.62 $ 0.54 $ 1.08 $ 1.03 $ 0.86 $ 4.38 $ 3.33 $ 7.34 $ 2.77
v3.19.3
Financial Results by Quarter (Unaudited) - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Quarterly Financial Data [Line Items]                    
Gain on sale of business                   $ 192.8
Basic Earnings Per Share, Estimated Increase (Decrease) Due to Specific Items Occurring During Quarter $ 0.19   $ (0.14)       $ 3.67      
Diluted Earnings Per Share, Estimated Increase (Decrease) Due to Specific Items Occurring During Quarter $ 0.18   $ (0.14)       $ 3.61      
Multiemployer pension withdrawals             $ 180.0 $ (6.3) $ 184.2  
Multiemployer Pension Withdrawal Net of Noncontrolling Interest             179.1      
Land and Development impairments   $ 13.0   $ 2.6 $ 1.7   27.6 $ 13.0 $ 31.9 $ 46.7
Land and Development Impairments Net of Noncontrolling Interest             25.6      
Provisional Estimate of Benefit (Expense) Impact on Remeasurement of Deferred Tax Balances in Connection with December 22, 2017 Income Tax Legislation           $ 36.3 $ 1,086.9      
Basic and Diluted Earnings Per Share, Estimated Increase (Decrease) Due to Specific Items Occurring During Quarter           $ 0.14        
Atlanta Beverage Facility [Member]                    
Quarterly Financial Data [Line Items]                    
Gain on sale of business     $ 48.5              
KapStone [Member]                    
Quarterly Financial Data [Line Items]                    
Inventory stepped-up in purchase accounting     24.7              
Hurricane Michael [Member]                    
Quarterly Financial Data [Line Items]                    
Direct expenses $ 6.6   39.8              
Insurance proceeds received 70.0   20.0              
Estimated lost of production and sales     $ 31.4              
Unusual or infrequent item, net income increase $ 63.4