WESTROCK CO, 10-Q filed on 2/8/2022
Quarterly Report
v3.22.0.1
Document and Entity Information - shares
 3 Months Ended
Dec. 31, 2021
Jan. 21, 2022
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Dec. 31, 2021  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
Trading Symbol WRK  
Entity Registrant Name WestRock Company  
Entity Central Index Key 0001732845  
Current Fiscal Year End Date --09-30  
Entity Filer Category Large Accelerated Filer  
Entity Shell Company false  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   263,214,392
Entity Current Reporting Status Yes  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Entity File Number 001-38736  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 37-1880617  
Entity Interactive Data Current Yes  
Security Exchange Name NYSE  
Entity Address, Address Line One 1000 Abernathy Road NE  
Entity Address, City or Town Atlanta  
Entity Address, State or Province GA  
Entity Address, Postal Zip Code 30328  
City Area Code 770  
Local Phone Number 448-2193  
Document Quarterly Report true  
Document Transition Report false  
v3.22.0.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]    
Net sales $ 4,952.2 $ 4,401.5
Cost of goods sold 4,155.6 3,648.6
Gross profit 796.6 752.9
Selling, general and administrative, excluding intangible amortization 452.9 417.8
Selling, general and administrative intangible amortization 88.0 91.9
(Gain) loss on disposal of assets (13.9) 2.5
Multiemployer pension withdrawal income (3.3)  
Restructuring and other costs 2.3 7.7
Operating profit 270.6 233.0
Interest expense, net (86.7) (93.8)
Loss on extinguishment of debt   (1.1)
Pension and other postretirement non-service income 39.9 34.9
Other income, net 0.2 20.8
Equity in income of unconsolidated entities 18.4 9.0
Income before income taxes 242.4 202.8
Income tax expense (58.6) (50.3)
Consolidated net income 183.8 152.5
Less: Net income attributable to noncontrolling interests (1.5) (0.5)
Net income attributable to common stockholders $ 182.3 $ 152.0
Basic earnings per share attributable to common stockholders $ 0.69 $ 0.58
Diluted earnings per share attributable to common stockholders $ 0.68 $ 0.57
Basic weighted average shares outstanding 264.6 262.7
Diluted weighted average shares outstanding 266.9 264.8
v3.22.0.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]    
Consolidated net income $ 183.8 $ 152.5
Other comprehensive (loss) income, net of tax:    
Foreign currency translation (loss) gain (16.3) 196.9
Derivatives:    
Deferred loss on cash flow hedges   (0.1)
Reclassification adjustment of net loss on cash flow hedges included in earnings   1.5
Defined benefit pension and other postretirement benefit plans:    
Amortization and settlement recognition of net actuarial loss, included in pension cost 1.3 5.6
Amortization and settlement recognition of prior service cost, included in pension cost 1.4 1.1
Other comprehensive (loss) income, net of tax (13.6) 205.0
Comprehensive income 170.2 357.5
Less: Comprehensive income attributable to noncontrolling interests (1.5) (0.9)
Comprehensive income attributable to common stockholders $ 168.7 $ 356.6
v3.22.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2021
Sep. 30, 2021
Current assets:    
Cash and cash equivalents $ 291.3 $ 290.9
Accounts receivable (net of allowances of $67.3 and $68.1) 2,525.5 2,586.9
Inventories 2,241.3 2,173.3
Other current assets 505.6 597.6
Assets held for sale 4.2 10.9
Total current assets 5,567.9 5,659.6
Property, plant and equipment, net 10,482.1 10,570.1
Goodwill 5,955.4 5,959.2
Intangibles, net 3,236.8 3,318.8
Restricted assets held by special purpose entities 1,258.6 1,260.5
Prepaid pension asset 707.2 674.3
Other assets 1,874.5 1,811.8
Total Assets 29,082.5 29,254.3
Current liabilities:    
Current portion of debt 236.8 168.8
Accounts payable 2,135.2 2,123.7
Accrued compensation and benefits 457.3 656.8
Other current liabilities 726.2 694.8
Total current liabilities 3,555.5 3,644.1
Long-term debt due after one year 7,996.4 8,025.3
Pension liabilities, net of current portion 249.5 254.7
Postretirement benefit liabilities, net of current portion 133.6 133.7
Non-recourse liabilities held by special purpose entities 1,125.0 1,127.3
Deferred income taxes 2,929.9 2,944.4
Other long-term liabilities 1,372.8 1,433.1
Commitments and contingencies (Note 13)
Redeemable noncontrolling interests 2.5 1.7
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; 263.2 million and 265.0 million shares outstanding at December 31, 2021 and September 30, 2021, respectively 2.6 2.7
Capital in excess of par value 10,996.1 11,058.8
Retained earnings 1,711.2 1,607.9
Accumulated other comprehensive loss [1] (1,012.7) (999.1)
Total stockholders’ equity 11,697.2 11,670.3
Noncontrolling interests 20.1 19.7
Total equity 11,717.3 11,690.0
Total Liabilities and Equity $ 29,082.5 $ 29,254.3
[1] All amounts are net of tax and noncontrolling interests.
v3.22.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2021
Sep. 30, 2021
Statement of Financial Position [Abstract]    
Allowance for Doubtful Accounts Receivable, Current $ 67.3 $ 68.1
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 263,200,000 265,000,000.0
v3.22.0.1
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
$ in Millions
Total
Common Stock [Member]
Capital in Excess of Par Value [Member]
Retained Earnings [Member]
Retained Earnings [Member]
Adoption of Accounting Standards [Member]
Accumulated Other Comprehensive Loss [Member]
Noncontrolling Interests [Member]
 [1]
Beginning balance at Sep. 30, 2020   260,400,000          
Beginning balance at Sep. 30, 2020   $ 2.6 $ 10,916.3 $ 1,031.6   $ (1,319.9) $ 16.9
Adoption of accounting standards [2]         $ (3.8)    
Compensation expense under share-based plans     19.9        
Net income attributable to common stockholders       152.0      
Dividends declared (per share - $0.25 and $0.20) [3]       (53.5)      
Issuance of common stock, net of stock received for tax withholdings   2,900,000          
Issuance of common stock, net of stock received for tax withholdings     13.2        
Purchases of common stock 0            
Other comprehensive (loss) income, net of tax $ 204.6 [4]         204.6  
Net income 0.5           0.2
Total Stockholders' equity at Dec. 31, 2020 10,963.0            
Ending balance at Dec. 31, 2020   263,300,000          
Ending balance at Dec. 31, 2020 $ 10,980.1 $ 2.6 10,949.4 1,126.3   (1,115.3) 17.1
Beginning balance at Sep. 30, 2021 265,000,000.0 265,000,000.0          
Beginning balance at Sep. 30, 2021 $ 11,690.0 $ 2.7 11,058.8 1,607.9   (999.1) 19.7
Compensation expense under share-based plans     15.2        
Net income attributable to common stockholders       182.3      
Dividends declared (per share - $0.25 and $0.20) [3]       (67.6)      
Issuance of common stock, net of stock received for tax withholdings   300,000          
Issuance of common stock, net of stock received for tax withholdings     8.7 (0.2)      
Purchases of common stock (2,100,000) (2,100,000)          
Purchases of common stock $ (97.5) $ (0.1) (86.2) (11.2)      
Other     (0.4)        
Other comprehensive (loss) income, net of tax (13.6) [4]         (13.6)  
Net income 1.5           0.4
Total Stockholders' equity at Dec. 31, 2021 $ 11,697.2            
Ending balance at Dec. 31, 2021 263,200,000 263,200,000          
Ending balance at Dec. 31, 2021 $ 11,717.3 $ 2.6 $ 10,996.1 $ 1,711.2   $ (1,012.7) $ 20.1
[1] Excludes amounts related to contingently redeemable noncontrolling interests, which are separately classified outside of permanent equity on the Condensed Consolidated Balance Sheets.
[2] For fiscal 2021, the amount relates to the adoption of ASU 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments”.
[3] Includes cash dividends paid and dividend equivalent units on certain restricted stock awards.
[4] All amounts are net of tax and noncontrolling interests.
v3.22.0.1
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]    
Cash dividends paid per share $ 0.25 $ 0.20
v3.22.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Operating activities:    
Consolidated net income $ 183.8 $ 152.5
Adjustments to reconcile consolidated net income to net cash provided by operating activities:    
Depreciation, depletion and amortization 366.5 364.5
Deferred income tax benefit (14.0) (19.6)
Share-based compensation expense 15.2 20.0
401(k) match and company contribution in common stock 2.5 24.9
Pension and other postretirement funding more than expense (income) (32.4) (28.0)
Cash surrender value increase in excess of premiums paid (16.6) (21.2)
Gain on sale of investment   (14.7)
Other impairment adjustments 0.9  
(Gain) loss on disposal of plant and equipment and other, net (13.9) 2.6
Other, net (13.4) (10.3)
Change in operating assets and liabilities, net of acquisitions and divestitures:    
Accounts receivable 60.4 150.2
Inventories (117.5) (44.3)
Other assets (45.9) (19.3)
Accounts payable 5.4 (5.4)
Income taxes 62.0 50.6
Accrued liabilities and other (190.2) 116.9
Net cash provided by operating activities 252.8 719.4
Investing activities:    
Capital expenditures (173.1) (170.7)
Cash paid for purchase of businesses, net of cash received (7.0)  
Proceeds from corporate owned life insurance 2.0 5.5
Proceeds from sale of investment   23.3
Proceeds from sale of property, plant and equipment 22.4 2.0
Proceeds from property, plant and equipment insurance settlement 1.7  
Other, net (0.8) (0.5)
Net cash used for investing activities (154.8) (140.4)
Financing activities:    
Additions to revolving credit facilities   180.0
Repayments of revolving credit facilities   (10.0)
Additions to debt 31.3 10.8
Repayments of debt (52.2) (704.5)
Other debt additions, net 69.0 21.6
Issuances of common stock, net of related tax withholdings 6.2 (12.4)
Purchases of common stock (100.1)  
Cash dividends paid to stockholders (66.3) (52.6)
Other, net 7.8 (17.0)
Net cash used for financing activities (104.3) (584.1)
Effect of exchange rate changes on cash, cash equivalents and restricted cash 6.7 7.8
Increase in cash, cash equivalents and restricted cash 0.4 2.7
Cash, cash equivalents and restricted cash at beginning of period 290.9 251.1
Cash, cash equivalents and restricted cash at end of period $ 291.3 $ 253.8
v3.22.0.1
Basis of Presentation and Significant Accounting Policies
 3 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Basis of Presentation and Significant Accounting Policies

Note 1. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

 

Our independent registered public accounting firm has not audited the accompanying interim financial statements. We derived the condensed consolidated balance sheet at September 30, 2021 from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021 (the “Fiscal 2021 Form 10-K”). In the opinion of management, all normal recurring adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included for the interim periods reported.

 

We have condensed or omitted certain notes and other information from the interim financial statements presented in this report. Therefore, these interim financial statements should be read in conjunction with the Fiscal 2021 Form 10-K. The results for the three months ended December 31, 2021 are not necessarily indicative of results that may be expected for the full year.

Reclassifications and Adjustments

Effective October 1, 2021, we reorganized our segment reporting to four reportable segments: Corrugated Packaging, Consumer Packaging, Paper and Distribution. Prior period amounts have been recast throughout the Notes to Condensed Consolidated Financial Statements, as applicable, to conform to the new segment structure. These changes did not impact our consolidated financial statements. See “Note 6. Segment Information” for additional information.

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

 

COVID-19 Pandemic

 

The global impact of the COVID-19 pandemic ("COVID") continues to evolve and our first priority has been and continues to be the health and safety of our teammates. We have taken, and continue to take, actions to protect the health and safety of our teammates during COVID and we have incurred and continue to incur costs for safety, cleaning and other items related to COVID. The pandemic has affected our operational and financial performance to varying degrees and the extent of its effect on our operational and financial performance will continue to depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration, scope and severity of the pandemic (including due to new or continuing variants such as Omicron and Delta), the actions taken to contain or mitigate its impact (including the distribution and effectiveness of vaccines and vaccine boosters), and the direct and indirect economic effects of the pandemic and related containment measures and government responses, among others. Our net sales have been negatively impacted by COVID, to varying degrees, primarily in the last half of fiscal 2020, and we have experienced and are currently experiencing higher supply chain costs and tight labor markets in part due to the impacts of COVID. The Company’s assessment of the future magnitude and duration of COVID, as well as other factors, may change and could result in changes in our accounting estimates and assumptions used to prepare our financial statements in conformity with generally accepted accounting principles in the U.S. ("GAAP").

Ransomware Incident

 

As previously disclosed, on January 23, 2021 we detected a ransomware incident impacting certain of our systems. Promptly upon our detection of this incident, we initiated response and containment protocols and our security teams, supplemented by leading cyber defense firms, worked to remediate this incident. We undertook extensive efforts to identify, contain and recover from this incident quickly and securely. Our teams worked to maintain our business operations and minimize the impact on our customers and teammates. In our second quarter of fiscal 2021 Form 10‐Q, we announced that all systems are back in service. All of our mills and converting locations began producing and shipping paper and packaging at pre-ransomware levels in March 2021 or earlier.

As previously disclosed, we estimate the pre-tax income impact of the lost sales and operational disruption of this incident on our operations in the second quarter of fiscal 2021 was approximately $50 million, as well as approximately $20 million of ransomware recovery costs, primarily professional fees. In addition, we incurred approximately $9 million of ransomware recovery costs in the third quarter of fiscal 2021. In the fourth quarter of fiscal 2021, we recorded a $15 million credit for preliminary recoveries – approximately $10 million as a reduction of SG&A excluding intangible amortization and approximately $5 million as a reduction of cost of goods sold. In the first quarter of fiscal 2022, we received an additional business interruption recovery of $5 million related to the ransomware incident, which we recorded as a reduction of Cost of goods sold and presented in net cash provided by operating activities on our condensed consolidated statements of cash flows. We expect to recover substantially all of the remaining ransomware losses from cyber and business interruption insurance from various carriers in future periods. Disputes over the extent of insurance coverage for claims are not uncommon, and there will be a time lag between the initial incurrence of costs and the receipt of any insurance proceeds.

See “Note 1. Description of Business and Summary of Significant Accounting Policies — Ransomware Incident” of the Notes to Consolidated Financial Statements section in the Fiscal 2021 Form 10-K for additional information.

 

Significant Accounting Policies

 

See “Note 1. Description of Business and Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements section in the Fiscal 2021 Form 10-K for a summary of our significant accounting policies.

 

Recent Accounting Developments

 

New Accounting Standards — Recently Adopted

 

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. This ASU removes certain exceptions from recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also reduces complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022 for us) and interim periods within those fiscal years. We adopted the provisions of ASU 2019-12 beginning October 1, 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements.

In July 2021, the FASB issued ASU 2021-05, “Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments”. This ASU requires lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses at lease commencement if they were classified as sales-type or direct financing leases. For lessors that had adopted Accounting Standards Codification (“ASC”) 842, "Leases" as of July 19, 2021, when the amendments were issued, the amendments can be applied either retrospectively or prospectively and are effective for annual periods beginning after December 15, 2021 (fiscal 2023 for us) and interim periods within those annual periods. Early adoption is permitted. We early adopted this ASU using the prospective transition approach beginning October 1, 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements.

 

New Accounting Standards — Recently Issued

 

In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance”. This ASU aims to increase the transparency of government assistance through the annual disclosure of the types of assistance, an entity’s accounting for the assistance and the effect of the assistance on an entity’s financial statements. This ASU is effective for annual periods beginning after December 15, 2021 (fiscal 2023 for us), with early adoption permitted. We are evaluating the impact of this ASU.

 

In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. This ASU requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606 “Revenue from Contracts with Customers” (“ASC 606”). This ASU is intended to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), including interim periods therein, with early adoption permitted. We are evaluating the impact of this ASU.

 

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. This ASU provides temporary optional expedients and exceptions for applying GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. In January 2021, the FASB issued ASU 2021-01, which adds implementation guidance to clarify certain optional expedients in Topic 848. The ASUs can be adopted after their respective issuance dates through December 31, 2022. We are currently evaluating our contracts and the impact of optional expedients provided by these ASUs. 
v3.22.0.1
Revenue Recognition
 3 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 2. Revenue Recognition

 

Disaggregated Revenue

 

ASC 606 requires that we disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The tables below disaggregate our revenue by geographical market and product type (segment). Net sales are attributed to geographical markets based on our selling location. As discussed above, effective October 1, 2021, we reorganized our segment reporting to four reportable segments and have recast the prior year disclosure to conform to the new segment structure and modify the geographical markets presented.

 

 

 

Three Months Ended December 31, 2021

 

(In millions)

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Geographical Markets

 

U.S.

 

$

1,969.0

 

 

$

648.3

 

 

$

1,213.1

 

 

$

284.6

 

 

$

(82.4

)

 

$

4,032.6

 

Canada

 

 

140.4

 

 

 

114.3

 

 

 

57.9

 

 

 

3.5

 

 

 

(1.3

)

 

 

314.8

 

Latin America

 

 

107.6

 

 

 

45.5

 

 

 

48.3

 

 

 

36.7

 

 

 

(0.1

)

 

 

238.0

 

EMEA (1)

 

 

3.0

 

 

 

252.1

 

 

 

15.9

 

 

 

—

 

 

 

(0.1

)

 

 

270.9

 

Asia Pacific

 

 

—

 

 

 

78.5

 

 

 

17.4

 

 

 

—

 

 

 

—

 

 

 

95.9

 

Total

 

$

2,220.0

 

 

$

1,138.7

 

 

$

1,352.6

 

 

$

324.8

 

 

$

(83.9

)

 

$

4,952.2

 

 

(1)
Europe, Middle East and Africa ("EMEA")

 

 

 

Three Months Ended December 31, 2020

 

(In millions)

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Geographical Markets

 

U.S.

 

$

1,823.7

 

 

$

606.6

 

 

$

1,008.4

 

 

$

269.0

 

 

$

(73.9

)

 

$

3,633.8

 

Canada

 

 

124.6

 

 

 

113.4

 

 

 

43.4

 

 

 

3.6

 

 

 

(1.2

)

 

 

283.8

 

Latin America

 

 

70.3

 

 

 

39.9

 

 

 

10.5

 

 

 

31.2

 

 

 

—

 

 

 

151.9

 

EMEA

 

 

0.9

 

 

 

233.0

 

 

 

16.2

 

 

 

—

 

 

 

—

 

 

 

250.1

 

Asia Pacific

 

 

—

 

 

 

69.6

 

 

 

12.4

 

 

 

—

 

 

 

(0.1

)

 

 

81.9

 

Total

 

$

2,019.5

 

 

$

1,062.5

 

 

$

1,090.9

 

 

$

303.8

 

 

$

(75.2

)

 

$

4,401.5

 

 

 

Revenue Contract Balances

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

The opening and closing balances of our contract assets and contract liabilities are as follows. Contract assets and contract liabilities are reported within Other current assets and Other current liabilities, respectively, on the condensed consolidated balance sheet.

 

(In millions)

 

Contract Assets
(Short-Term)

 

 

Contract Liabilities
(Short-Term)

 

 

 

 

 

 

 

 

Beginning balance - October 1, 2021

 

$

199.1

 

 

$

12.8

 

Ending balance - December 31, 2021

 

 

213.5

 

 

 

16.4

 

Increase

 

$

14.4

 

 

$

3.6

 
v3.22.0.1
Restructuring and Other Costs
 3 Months Ended
Dec. 31, 2021
Restructuring And Other Costs [Abstract]  
Restructuring and Other Costs

Note 3. Restructuring and Other Costs

Summary of Restructuring and Other Initiatives

We recorded pre-tax restructuring and other costs of $2.3 million for the three months ended December 31, 2021 and $7.7 million for the three months ended December 31, 2020. These amounts are not comparable since the timing and scope of the individual actions associated with each restructuring, acquisition, integration or divestiture can vary. We present our restructuring and other costs in more detail below.

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Restructuring

 

$

2.1

 

 

$

6.6

 

Other

 

 

0.2

 

 

 

1.1

 

Restructuring and other costs

 

$

2.3

 

 

$

7.7

 

 

Restructuring

Our restructuring charges are primarily associated with restructuring portions of our operations (i.e., partial or complete plant closures). A partial plant closure may consist of shutting down a machine and/or a workforce reduction. We generally incur various reduction in workforce actions, plant closure activities, impairment costs and certain lease terminations in each fiscal year.

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

Although specific circumstances vary, our strategy has generally been to consolidate our sales and operations into large well-equipped 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.

While restructuring costs are not charged to our segments and, therefore, do not reduce each segment's Adjusted EBITDA (as hereinafter defined), we highlight the segment to which the charges relate. As discussed above, effective October 1, 2021, we reorganized our segment reporting to four reportable segments and have recast the prior year disclosure. Since we do not allocate restructuring costs to our segments, charges incurred in the Paper segment will represent all charges associated with our recycling operations and vertically integrated mills. These operations manufacture for the benefit of each reportable segment that ultimately sells the associated paper and packaging products to our external customers. The following table presents a summary of restructuring charges related to active restructuring initiatives that we incurred during the three months ended December 31, 2021 and 2020, the cumulative recorded amount since we started the initiatives and our estimate of the total we expect to incur (in millions):

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

Cumulative

 

 

Total
Expected

 

Corrugated Packaging

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

—

 

 

$

—

 

 

$

3.6

 

 

$

3.6

 

Severance and other employee costs

 

 

(0.4

)

 

 

(0.7

)

 

 

28.3

 

 

 

28.7

 

Other restructuring costs

 

 

0.3

 

 

 

0.9

 

 

 

10.5

 

 

 

12.6

 

Restructuring total

 

$

(0.1

)

 

$

0.2

 

 

$

42.4

 

 

$

44.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Packaging

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

—

 

 

$

0.2

 

 

$

3.3

 

 

$

3.3

 

Severance and other employee costs

 

 

1.8

 

 

 

3.5

 

 

 

32.0

 

 

 

32.0

 

Other restructuring costs

 

 

—

 

 

 

1.0

 

 

 

10.5

 

 

 

10.5

 

Restructuring total

 

$

1.8

 

 

$

4.7

 

 

$

45.8

 

 

$

45.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

0.9

 

 

$

—

 

 

$

9.7

 

 

$

9.7

 

Severance and other employee costs

 

 

—

 

 

 

1.6

 

 

 

59.5

 

 

 

59.5

 

Other restructuring costs

 

 

(0.5

)

 

 

0.1

 

 

 

(1.3

)

 

 

(1.3

)

Restructuring total

 

$

0.4

 

 

$

1.7

 

 

$

67.9

 

 

$

67.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (1)

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

0.9

 

 

$

0.2

 

 

$

16.6

 

 

$

16.6

 

Severance and other employee costs

 

 

1.4

 

 

 

4.4

 

 

 

119.8

 

 

 

120.2

 

Other restructuring costs

 

 

(0.2

)

 

 

2.0

 

 

 

19.7

 

 

 

21.8

 

Restructuring total

 

$

2.1

 

 

$

6.6

 

 

$

156.1

 

 

$

158.6

 

 

(1)
The Cumulative and Total Expected columns each exclude approximately $81 million for aggregate Paper segment, Land and Development segment and Distribution segment restructuring charges that were incurred in prior periods since the table includes no current year or prior year period activity for those segments.

We have defined “Net property, plant and equipment costs” as used in this Note 3 primarily as property, plant and equipment write-downs, subsequent adjustments to fair value for assets classified as held for sale,

subsequent (gains) or losses on sales of property, plant and equipment and related parts and supplies on such assets, if any. We also define "Other restructuring costs" as facility carrying costs, equipment and inventory relocation costs, lease termination costs and other items.

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. 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 and integration costs (in millions):

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Acquisition costs

 

$

0.2

 

 

$

0.2

 

Integration costs

 

 

—

 

 

 

0.9

 

Other total

 

$

0.2

 

 

$

1.1

 

 

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Accrual at beginning of fiscal year

 

$

13.4

 

 

$

17.2

 

Additional accruals

 

 

1.8

 

 

 

5.4

 

Payments

 

 

(1.9

)

 

 

(7.0

)

Adjustment to accruals

 

 

(0.4

)

 

 

(1.1

)

Foreign currency rate changes and other

 

 

(0.2

)

 

 

0.1

 

Accrual at December 31

 

$

12.7

 

 

$

14.6

 

 

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Additional accruals and adjustments to accruals
   (see table above)

 

$

1.4

 

 

$

4.3

 

Acquisition costs

 

 

0.2

 

 

 

0.2

 

Integration costs

 

 

—

 

 

 

0.9

 

Net property, plant and equipment costs

 

 

0.9

 

 

 

0.2

 

Severance and other employee costs

 

 

—

 

 

 

0.1

 

Other restructuring costs

 

 

(0.2

)

 

 

2.0

 

Total restructuring and other costs

 

$

2.3

 

 

$

7.7

 
v3.22.0.1
Retirement Plans
 3 Months Ended
Dec. 31, 2021
Retirement Plans [Abstract]  
Retirement Plans

Note 4. 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, and nearly all of our remaining salaried and non-union hourly employees accruing benefits ceased accruing benefits

as of December 31, 2020. In addition, we participate in several multiemployer pension plans (“MEPP” or “MEPPs”) that provide retirement benefits to certain union employees in accordance with various collective bargaining agreements and have participated in other MEPPs in the past. We also have supplemental executive retirement plans and other non-qualified defined benefit pension plans that provide unfunded supplemental retirement benefits to certain of our current and former executives.

MEPPs

 

In the normal course of business, we evaluate our potential exposure to MEPPs, including with respect to potential withdrawal liabilities. In fiscal 2018, we submitted formal notification to withdraw from the Pace Industry Union-Management Pension Fund (“PIUMPF”) and the Central States, Southeast and Southwest Areas Pension Plan (“Central States”), and recorded estimated withdrawal liabilities for each. The PIUMPF estimated withdrawal liability assumed both a payment for withdrawal liability and for our proportionate share of PIUMPF’s accumulated funding deficiency. The estimated withdrawal liability excludes the potential impact of a future mass withdrawal of other employers from PIUMPF, which was not considered probable or reasonably estimable and was discounted at a credit adjusted risk free rate. Subsequently, we continued to refine the estimate of the withdrawal liability, the impact of which was not significant. 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 initial 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 of ours 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 received an updated demand letter decreasing the accumulated funding deficiency demand from $2.0 million to $1.3 million in April 2020. In February 2020, we received a demand letter from PIUMPF asserting that we owe $51.2 million for our pro-rata share of PIUMPF’s accumulated funding deficiency, including interest. We dispute the PIUMPF accumulated funding deficiency demands. We began making monthly payments (approximately $0.7 million per month for 20 years) for these withdrawal liabilities in fiscal 2020, excluding the accumulated funding deficiency demands.

 

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

 

At December 31, 2021 and September 30, 2021, we had recorded withdrawal liabilities of $248.1 million and $247.1 million, respectively, including liabilities associated with PIUMPF's accumulated funding deficiency demands.

 

See “Note 5. Retirement Plans” and “Note 5. Retirement Plans — Multiemployer Plans” of the Notes to Consolidated Financial Statements section in the Fiscal 2021 Form 10-K for more information regarding our involvement with retirement plans and involvement with MEPPs.

Pension and Postretirement Income / Expense

The following table presents a summary of the components of net pension income (in millions):

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Service cost

 

$

12.5

 

 

$

13.5

 

Interest cost

 

 

47.4

 

 

 

46.4

 

Expected return on plan assets

 

 

(92.5

)

 

 

(91.7

)

Amortization of net actuarial loss

 

 

2.2

 

 

 

7.9

 

Amortization of prior service cost

 

 

2.1

 

 

 

2.0

 

Company defined benefit plan income

 

 

(28.3

)

 

 

(21.9

)

Multiemployer and other plans

 

 

0.3

 

 

 

0.4

 

Net pension income

 

$

(28.0

)

 

$

(21.5

)

 

The non-service elements of our pension and postretirement costs set forth in this Note 4. Retirement Plans are reflected in the condensed consolidated statements of income line item “Pension and other postretirement non-service income”. The service cost components are reflected in “Cost of goods sold” and “Selling, general and administrative, excluding intangible amortization” line items.

 

We maintain other postretirement benefit plans that provide certain health care and life insurance benefits for certain salaried and hourly employees who meet specified age and service requirements as defined by the plans. The following table presents a summary of the components of the net postretirement cost (in millions):

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Service cost

 

$

0.3

 

 

$

0.3

 

Interest cost

 

 

1.5

 

 

 

1.4

 

Amortization of net actuarial gain

 

 

(0.4

)

 

 

(0.3

)

Amortization of prior service credit

 

 

(0.2

)

 

 

(0.6

)

Net postretirement cost

 

$

1.2

 

 

$

0.8

 

 

Employer Contributions

 

During the three months ended December 31, 2021 and 2020, we made contributions to our qualified and supplemental defined benefit pension plans of $4.1 million and $5.6 million, respectively. During the three months ended December 31, 2021 and 2020, we made contributions of $1.2 million and $1.3 million, respectively, to our other postretirement benefit plans.
v3.22.0.1
Income Taxes
 3 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

Note 5. Income Taxes

 

The effective tax rate for the three months ended December 31, 2021 and December 31, 2020 was 24.2% and 24.8%, respectively. The effective tax rate for both periods was impacted by (i) the inclusion of state taxes, (ii) income derived from certain foreign jurisdictions subject to higher tax rates and (iii) the exclusion of tax benefits related to losses recorded by certain foreign operations, partially offset by research and development tax credits.

 

During the three months ended December 31, 2021 and December 31, 2020, cash paid for income taxes, net of refunds, were $9.9 million and $18.8 million, respectively.
v3.22.0.1
Segment Information
 3 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information

Note 6. Segment Information

 

Effective October 1, 2021, we reorganized our reportable segments due to recent changes in our organizational structure and how our chief operating decision maker (“CODM”) makes key operating decisions, allocates resources and assesses the performance of our business going forward. We believe the new segments will provide greater

visibility into the vertical integration between our mills and converting operations as well as the value of a diversified portfolio of assets, and help us highlight the performance of our portfolio. Prior to the reorganization, the Company had two reportable segments: Corrugated Packaging and Consumer Packaging. Our new reportable segments are:

 

•
Corrugated Packaging, which consists of our integrated corrugated converting operations and generates its revenues primarily from the sale of corrugated containers and other corrugated products;
•
Consumer Packaging, which consists of our integrated consumer converting operations and generates its revenues primarily from the sale of consumer packaging products such as folding cartons and interior partitions;
•
Paper, which consists of our commercial paper operations and generates its revenues primarily from the sale of containerboard and paperboard to external customers; and
•
Distribution, which consists of our distribution and display assembly operations and generates its revenues primarily from the distribution of packaging products and assembly of display products.

 

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

 

Effective October 1, 2021, Adjusted EBITDA is our measure of segment profitability in accordance with ASC 280, “Segment Reporting” because it is used by our CODM to make decisions regarding allocation of resources and to assess segment performance. Certain items are not allocated to our operating segments and, thus, the information that our CODM uses to make operating decisions and assess performance does not reflect such amounts. Adjusted EBITDA is defined as pretax earnings of a reportable segment before depreciation and amortization, and excludes the following items our CODM does not consider part of our segment performance: gain on sale of certain closed facilities, multiemployer pension withdrawal income, restructuring and other costs, non-allocated expenses, interest expense, net, loss on extinguishment of debt, other income, net, and other adjustments - each as outlined in the table below ("Adjusted EBITDA"). Management believes these items are useful to exclude in the evaluation of operating performance from period to period because they are not representative of our ongoing operations or are items our CODM does not consider part of our reportable segments. We have recast prior periods presented to conform with the new segment structure. These changes did not impact our consolidated financial statements. In connection with the reorganization of our reportable segments, we changed the amount of previously non-allocated expenses.

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Net sales (aggregate):

 

 

 

 

 

 

Corrugated Packaging

 

$

2,220.0

 

 

$

2,019.5

 

Consumer Packaging

 

 

1,138.7

 

 

 

1,062.5

 

Paper

 

 

1,352.6

 

 

 

1,090.9

 

Distribution

 

 

324.8

 

 

 

303.8

 

Total

 

$

5,036.1

 

 

$

4,476.7

 

Less net sales (intersegment):

 

 

 

 

 

 

Corrugated Packaging

 

$

74.2

 

 

$

71.1

 

Consumer Packaging

 

 

6.0

 

 

 

3.9

 

Distribution

 

 

3.7

 

 

 

0.2

 

Total

 

$

83.9

 

 

$

75.2

 

Net sales (unaffiliated customers):

 

 

 

 

 

 

Corrugated Packaging

 

$

2,145.8

 

 

$

1,948.4

 

Consumer Packaging

 

 

1,132.7

 

 

 

1,058.6

 

Paper

 

 

1,352.6

 

 

 

1,090.9

 

Distribution

 

 

321.1

 

 

 

303.6

 

Total

 

$

4,952.2

 

 

$

4,401.5

 

Adjusted EBITDA:

 

 

 

 

 

 

Corrugated Packaging

 

$

288.9

 

 

$

347.6

 

Consumer Packaging

 

 

169.3

 

 

 

175.3

 

Paper

 

 

232.4

 

 

 

151.7

 

Distribution

 

 

6.5

 

 

 

16.4

 

Total

 

 

697.1

 

 

 

691.0

 

Depreciation, depletion and amortization

 

 

(366.5

)

 

 

(364.5

)

Gain on sale of certain closed facilities

 

 

14.4

 

 

 

0.9

 

Multiemployer pension withdrawal income

 

 

3.3

 

 

 

—

 

Restructuring and other costs

 

 

(2.3

)

 

 

(7.7

)

Non-allocated expenses

 

 

(16.8

)

 

 

(21.2

)

Interest expense, net

 

 

(86.7

)

 

 

(93.8

)

Loss on extinguishment of debt

 

 

—

 

 

 

(1.1

)

Other income, net

 

 

0.2

 

 

 

20.8

 

Other adjustments

 

 

(0.3

)

 

 

(21.6

)

Income before income taxes

 

$

242.4

 

 

$

202.8

 

 

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

Corrugated Packaging

 

$

167.0

 

 

$

175.6

 

Consumer Packaging

 

 

86.3

 

 

 

85.8

 

Paper

 

 

106.2

 

 

 

96.5

 

Distribution

 

 

5.8

 

 

 

5.8

 

Corporate

 

 

1.2

 

 

 

0.8

 

Total

 

$

366.5

 

 

$

364.5

 

 

 

 

 

 

 

 

Other adjustments:

 

 

 

 

 

 

Corrugated Packaging

 

$

—

 

 

$

9.5

 

Consumer Packaging

 

 

0.2

 

 

 

8.9

 

Paper

 

 

0.1

 

 

 

1.8

 

Distribution

 

 

—

 

 

 

0.6

 

Corporate

 

 

—

 

 

 

0.8

 

Total

 

$

0.3

 

 

$

21.6

 

 

As we report the benefit of vertical integration with our mills in each reportable segment that ultimately sells the associated paper and packaging products to our external customers, we correspondingly allocate the assets and capital expenditures of our mill system across our reportable segments. The following tables reflect such allocation.

 

 

 

December 31,
2021

 

 

September 30,
2021

 

Assets:

 

 

 

 

 

 

Corrugated Packaging

 

$

11,536.3

 

 

$

11,526.0

 

Consumer Packaging

 

 

6,755.0

 

 

 

6,750.5

 

Paper

 

 

7,509.5

 

 

 

7,525.7

 

Distribution

 

 

754.0

 

 

 

796.2

 

Assets held for sale

 

 

4.2

 

 

 

10.9

 

Corporate

 

 

2,523.5

 

 

 

2,645.0

 

Total

 

$

29,082.5

 

 

$

29,254.3

 

 

 

 

 

 

 

 

Intangibles, net:

 

 

 

 

 

 

Corrugated Packaging

 

$

736.4

 

 

$

765.9

 

Consumer Packaging

 

 

1,688.0

 

 

 

1,719.2

 

Paper

 

 

661.4

 

 

 

677.7

 

Distribution

 

 

151.0

 

 

 

156.0

 

Total

 

$

3,236.8

 

 

$

3,318.8

 

 

 

 

 

 

 

 

Equity method investments:

 

 

 

 

 

 

Corrugated Packaging

 

$

447.5

 

 

$

434.4

 

Consumer Packaging

 

 

0.4

 

 

 

17.7

 

Paper

 

 

0.8

 

 

 

0.8

 

Corporate

 

 

0.4

 

 

 

0.4

 

Total

 

$

449.1

 

 

$

453.3

 

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Capital expenditures:

 

 

 

 

 

 

Corrugated Packaging

 

$

75.7

 

 

$

69.2

 

Consumer Packaging

 

 

37.3

 

 

 

43.4

 

Paper

 

 

51.5

 

 

 

51.6

 

Distribution

 

 

0.8

 

 

 

0.1

 

Corporate

 

 

7.8

 

 

 

6.4

 

Total

 

$

173.1

 

 

$

170.7

 

 

 

The changes in the carrying amount of goodwill during the three months ended December 31, 2021 are as follows (in millions):

 

 

 

Legacy Reportable Segments

 

 

New Reportable Segments

 

 

 

 

 

 

Corrugated
Packaging

 

 

Consumer
Packaging

 

 

Corrugated
Packaging

 

 

Consumer
Packaging

 

 

Paper

 

 

Distribution

 

 

Total

 

Balance as of Sep. 30, 2021

 

$

3,663.3

 

 

$

2,295.9

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,959.2

 

Segment recasting (1)

 

 

(3,663.3

)

 

 

(2,295.9

)

 

 

2,834.8

 

 

 

1,603.3

 

 

 

1,382.0

 

 

 

139.1

 

 

 

—

 

Goodwill acquired

 

 

—

 

 

 

—

 

 

 

3.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.2

 

Translation adjustments

 

 

—

 

 

 

—

 

 

 

(6.6

)

 

 

1.3

 

 

 

(1.6

)

 

 

(0.1

)

 

 

(7.0

)

Balance as of Dec. 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

—

 

 

$

—

 

 

$

2,831.4

 

 

$

1,604.6

 

 

$

1,380.4

 

 

$

139.0

 

 

$

5,955.4

 

 

(1)
Represents reallocation of goodwill as a result of changes in segments on October 1, 2021.

 

In accordance with ASC 350, “Intangibles – goodwill and other”, we determined our new reporting units to be the same as our operating segments: Corrugated Packaging, Consumer Packaging, Paper and Distribution. As of October 1, 2021, we performed an interim quantitative goodwill impairment test for our new reporting units using a combination of both guideline public company and discounted cash flow valuation methods. In performing the impairment test, we considered factors such as, but not limited to, our expectations for the short-term and long-term impacts of COVID, macroeconomic conditions, industry and market considerations, and financial performance, including forecasted revenue, earnings and capital expenditures of each reporting unit. The discount rate used for each reporting unit ranged from 8.0% to 11.5%. We used perpetual growth rates in the reporting units ranging from 0.0% to 1.0%. All reporting units have a fair value that exceeded their carrying values by more than 10%. 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, the fair value of each of our reporting units would have continued to exceed its carrying value.
v3.22.0.1
Interest Expense, Net
 3 Months Ended
Dec. 31, 2021
Interest Income (Expense), Net [Abstract]  
Interest Expense, Net

Note 7. Interest Expense, Net

 

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Interest expense

 

$

(98.3

)

 

$

(105.5

)

Interest income

 

 

11.6

 

 

 

11.7

 

Interest expense, net

 

$

(86.7

)

 

$

(93.8

)

 

Cash paid for interest, net of amounts capitalized, of $56.8 million and $58.9 million were made during the three months ended December 31, 2021 and December 31, 2020, respectively.
v3.22.0.1
Inventories
 3 Months Ended
Dec. 31, 2021
Inventory Disclosure [Abstract]  
Inventories

Note 8. Inventories

We value substantially all of our U.S. inventories at the lower of cost or market, with cost determined on a 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 (“FIFO”) basis. These other inventories represent primarily foreign inventories, distribution business inventories, spare parts inventories and certain inventoried supplies.

The components of inventories were as follows (in millions):

 

 

 

December 31,
2021

 

 

September 30,
2021

 

Finished goods and work in process

 

$

1,042.2

 

 

$

972.7

 

Raw materials

 

 

982.1

 

 

 

888.1

 

Spare parts and supplies

 

 

506.4

 

 

 

536.4

 

Inventories at FIFO cost

 

 

2,530.7

 

 

 

2,397.2

 

LIFO reserve

 

 

(289.4

)

 

 

(223.9

)

Net inventories

 

$

2,241.3

 

 

$

2,173.3

 
v3.22.0.1
Property, Plant and Equipment
 3 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Note 9. Property, Plant and Equipment

The components of property, plant and equipment were as follows (in millions):

 

 

 

December 31,
2021

 

 

September 30,
2021

 

Property, plant and equipment at cost:

 

 

 

 

 

 

Land and buildings

 

$

2,638.0

 

 

$

2,626.0

 

Machinery and equipment

 

 

16,003.0

 

 

 

15,853.1

 

Forestlands and mineral rights

 

 

118.3

 

 

 

120.0

 

Transportation equipment

 

 

25.8

 

 

 

26.1

 

Leasehold improvements

 

 

94.2

 

 

 

93.9

 

 

 

 

18,879.3

 

 

 

18,719.1

 

Less: accumulated depreciation, depletion and
   amortization

 

 

(8,397.2

)

 

 

(8,149.0

)

Property, plant and equipment, net

 

$

10,482.1

 

 

$

10,570.1

 

 

Non-cash additions to property, plant and equipment at December 31, 2021 and September 30, 2021 were $101.9 million and $108.5 million, respectively.
v3.22.0.1
Fair Value
 3 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value

Note 10. Fair Value

Assets and Liabilities Measured or Disclosed at Fair Value

We estimate fair values in accordance with ASC 820, “Fair Value Measurement”. See “Note 12. Fair Value” of the Notes to Consolidated Financial Statements section of the Fiscal 2021 Form 10-K for more information. We disclose the fair value of our long-term debt in “Note 11. Debt”. We disclose the fair value of our pension and postretirement assets and liabilities in “Note 5. Retirement Plans” of the Notes to Consolidated Financial Statements section of the Fiscal 2021 Form 10-K.

Financial Instruments Not Recognized at Fair Value

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

Fair Value of Nonfinancial Assets and Nonfinancial Liabilities

We measure certain nonfinancial assets and nonfinancial liabilities at fair value on a nonrecurring basis. These assets and liabilities include equity method investments when they are deemed to be other-than-temporarily

impaired, investments for which the fair value measurement alternative is elected, assets acquired and liabilities assumed when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a merger or an acquisition or in a nonmonetary exchange, property, plant and equipment, ROU assets related to operating leases, goodwill and other and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. See “Note 3. Restructuring and Other Costs” for impairments associated with restructuring activities presented as “net property, plant and equipment costs”. During the three months ended December 31, 2021 and 2020, we did not have any significant non-restructuring nonfinancial assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition.

Accounts Receivable Sales Agreements

We are a party to an accounts receivable sales agreement to sell to a third party financial institution all of the short-term receivables generated from certain customer trade accounts. The terms of the agreement limit the balance of receivables sold to the amount available to fund such receivables sold, thereby eliminating the receivable for proceeds from the financial institution at any transfer date. On August 31, 2021, we amended the then existing $700.0 million facility to extend the maturity to September 16, 2022. Transfers under the agreement meet the requirements to be accounted for as sales in accordance with guidance in ASC 860, “Transfers and Servicing” ("ASC 860").

We also have a similar facility that was amended on December 2, 2021 to increase the $88.5 million purchase limit to $110.0 million, establish the transition from LIBOR to the Secure Overnight Funding Rate ("SOFR") at a future date and revise certain fees. The facility remains uncommitted and has a one-year term ending December 4, 2022.

The customers from these facilities are not included in the Receivables Securitization Facility that is discussed in “Note 11. Debt”.

The following table presents a summary of these accounts receivable sales agreements for the three months ended December 31, 2021 and December 31, 2020 (in millions):

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Receivable from financial institutions at beginning of fiscal year

 

$

—

 

 

$

—

 

Receivables sold to the financial institutions and derecognized

 

 

(721.8

)

 

 

(680.7

)

Receivables collected by financial institutions

 

 

699.2

 

 

 

644.5

 

Cash proceeds from financial institutions

 

 

22.6

 

 

 

36.2

 

Receivable from financial institutions at December 31

 

$

—

 

 

$

—

 

 

Receivables sold under these accounts receivable sales agreements as of the respective balance sheet dates were approximately $688.6 million and $665.9 million as of December 31, 2021 and September 30, 2021, respectively.

 

Cash proceeds related to the receivables sold are included in Net cash provided by operating activities in the condensed consolidated statements of cash flows in the accounts receivable line item. While the expense recorded in connection with the sale of receivables may vary based on current rates and levels of receivables sold, the expense recorded in connection with the sale of receivables was $2.2 million for the three months ended December 31, 2021, and $3.0 million for the three months ended December 31, 2020, and is recorded in “Other income, net” in the condensed consolidated statements of income. 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.
v3.22.0.1
Debt
 3 Months Ended
Dec. 31, 2021
Debt [Abstract]  
Debt

Note 11. Debt

See “Note 13. Debt” of the Notes to Consolidated Financial Statements section in the Fiscal 2021 Form 10-K for additional information on our debt and interest rates on that debt. As noted below, we have been addressing the LIBOR transition in our debt facilities and expect to complete the transition prior to the June 30, 2023 deadline when the remaining rates cease publication, likely by the end of the current calendar year.

The following table shows the carrying value of the individual components of our debt (in millions):

 

 

 

December 31, 2021

 

 

September 30, 2021

 

Public bonds due fiscal 2023 to 2028

 

$

3,779.4

 

 

$

3,778.2

 

Public bonds due fiscal 2029 to 2033

 

 

2,763.3

 

 

 

2,766.5

 

Public bonds due fiscal 2037 to 2047

 

 

178.1

 

 

 

178.2

 

Term loan facilities

 

 

599.0

 

 

 

598.9

 

Revolving credit and swing facilities

 

 

336.1

 

 

 

270.0

 

Finance lease obligations

 

 

261.5

 

 

 

264.1

 

Vendor financing and commercial card
   programs

 

 

115.8

 

 

 

113.1

 

International and other debt

 

 

200.0

 

 

 

225.1

 

Total debt

 

 

8,233.2

 

 

 

8,194.1

 

Less: current portion of debt

 

 

236.8

 

 

 

168.8

 

Long-term debt due after one year

 

$

7,996.4

 

 

$

8,025.3

 

 

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 December 31, 2021.

 

The estimated fair value of our debt was approximately $9.0 billion as of December 31, 2021 and $9.0 billion at September 30, 2021. 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.

Revolving Credit Facility

On November 21, 2019, we amended our $2.0 billion unsecured revolving credit facility entered into on July 1, 2015 to, among other things, increase the committed principal to $2.3 billion, increase the maximum permitted Debt to Capitalization Ratio (as defined in the credit agreement) to 0.65:1.00 and extend its maturity date to November 21, 2024 (the “Revolving Credit Facility”). On December 7, 2021, we entered into an agreement to restrict us to U.S. and Canadian denominated borrowings and letters of credit under this facility. The agreement allows for the deferral of the LIBOR transition at this time and does not impact the overall availability of the facility. We intend to address the LIBOR transition at a later date. At December 31, 2021 and September 30, 2021, there were no amounts outstanding under the facility.

Term Loans

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, that replaced our then-existing facility. The Farm Loan Credit Agreement provides for a seven-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 Loan Credit Facility is guaranteed by the Company, WRKCo Inc. and WestRock RKT, LLC (“RKT”) and WestRock MWV, LLC (“MWV”, and together with RKT, the Company and WRKCo Inc. the “Guarantor Subsidiaries”). The carrying value of this facility at December 31, 2021 and September 30, 2021 was $599.0 million and $598.9 million, respectively.

Receivables Securitization Facility

 

On March 12, 2021, we amended our existing $700.0 million receivables securitization agreement (the “Receivables Securitization Facility”), extended the maturity to March 11, 2024 and established the transition to the SOFR at a future date from a blend of the market rate for asset-backed commercial paper and the one-month LIBOR rate plus a credit spread, and revised certain fees. At December 31, 2021 and September 30, 2021, maximum available borrowings, excluding amounts outstanding under the Receivables Securitization Facility, were $642.5 million and $690.3 million, respectively. The carrying amount of accounts receivable collateralizing the maximum available borrowings at December 31, 2021 and September 30, 2021 were approximately $1,240.2 million and $1,318.4 million, respectively. We have continuing involvement with the underlying receivables as we provide credit and collections services pursuant to the Receivables Securitization Facility. At December 31, 2021 and September 30, 2021, there were no amounts outstanding under this facility.

 

European Revolving Credit Facility

 

On December 1, 2021, we amended our existing European revolving credit facility with Coöperatieve Rabobank U.A., New York Branch, as administrative agent entered into on February 26, 2021. We maintained the facility at €600.0 million as well as the incremental €100.0 million accordion feature. The amendment addressed the LIBOR transition for the British Pound that will now be indexed with the Sterling Secured Overnight rate ("SONIA"). This facility provides for a three-year unsecured U.S. dollar, Euro and British Pound denominated borrowing of not more than €600.0 million maturing on February 26, 2024. At December 31, 2021, we had borrowed $270.0 million under this facility and entered into foreign currency exchange contracts of $270.2 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 condensed consolidated statements of income. At September 30, 2021, we had borrowed $270.0 million under this facility.

v3.22.0.1
Leases
 3 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases

Note 12. Leases

 

We lease various real estate, including certain operating facilities, warehouses, office space and land. We also lease material handling equipment, vehicles and certain other equipment. Our total lease cost, net was $70.3 million and $80.9 million during the three months ended December 31, 2021 and 2020, respectively. We obtained $24.8 million and $67.5 million of ROU assets in exchange for lease liabilities during the three months ended December 31, 2021 and 2020, respectively.

 

Supplemental Balance Sheet Information Related to Leases

 

The table below presents supplemental balance sheet information related to leases (in millions):

 

 

 

Condensed Consolidated Balance
 Sheet Caption

 

December 31,
2021

 

 

September 30,
2021

 

Operating leases:

 

 

 

 

 

 

 

 

Operating lease right-of-use asset

 

Other assets

 

$

666.1

 

 

$

676.0

 

 

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

Other current liabilities

 

$

179.6

 

 

$

177.9

 

Operating lease liabilities

 

Other long-term liabilities

 

 

526.7

 

 

 

537.9

 

Total operating lease liabilities

 

 

 

$

706.3

 

 

$

715.8

 

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

$

143.1

 

 

$

143.2

 

Accumulated depreciation

 

 

 

 

(30.3

)

 

 

(28.3

)

Property, plant and equipment,
   net

 

 

 

$

112.8

 

 

$

114.9

 

 

 

 

 

 

 

 

 

 

Current finance lease liabilities

 

Current portion of debt

 

$

8.6

 

 

$

8.7

 

Noncurrent finance lease liabilities

 

Long-term debt due after one year

 

 

252.9

 

 

 

255.4

 

Total finance lease liabilities

 

 

 

$

261.5

 

 

$

264.1

 

 

Our finance lease portfolio includes certain assets that are either fully depreciated or transferred for which the lease arrangement requires a one-time principal repayment on the maturity date of the lease obligation.
v3.22.0.1
Commitments and Contingencies
 3 Months Ended
Dec. 31, 2021
Commitments And Contingencies [Abstract]  
Commitments and Contingencies

Note 13. Commitments and Contingencies

Health and Safety

Our business involves the use of heavy equipment, machinery and chemicals and requires the performance of activities that create safety exposures. The health and safety of our teammates is our most important responsibility, and we have established safety policies, programs, procedures and training for our manufacturing operations. We are subject to a broad range of foreign, federal, state and local laws and regulations relating to occupational health and safety, and our safety program includes measures required for compliance. In addition, our program includes the ongoing identification and elimination of workplace exposures that can lead to injuries and sharing of health and safety best practices, including processes to create resilient, error tolerant safety systems. Failure to comply with applicable health and safety laws and regulations could subject us to fines, corrective actions or other sanctions.

Certain governmental authorities in locations where we do business have established asbestos standards for the workplace. Although we do not use asbestos in manufacturing our products, asbestos containing material (“ACM”) is present in some of the facilities we lease or own. For those facilities where ACM is present and ACM is subject to regulation, we have established procedures for properly managing it.

We have incurred, and will continue to incur, capital expenditures to meet our health and safety compliance requirements, as well as to continually improve our safety systems. We do not believe that future compliance with occupational health and safety laws and regulations will have a material adverse effect on our results of operations, financial condition or cash flows.

Environmental

We are subject to numerous international, federal, state, local and other environmental laws and regulations, including those governing discharges to air, soil and water; the management, treatment and disposal of hazardous substances, solid waste and hazardous wastes; the investigation and remediation of contamination resulting from historical site operations; and requirements relating to the use of chemicals in packaging. We are also subject to the requirements of environmental permits and similar authorizations issued by various governmental authorities. Complex and lengthy processes may be required to obtain and renew approvals, permits, and licenses for new,

existing or modified facilities. Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency response procedures. Our compliance initiatives related to these laws and regulations could result in significant costs, which could negatively impact our results of operations, financial condition and cash flows. Failure to comply with environmental laws and regulations, or any permits and authorizations required thereunder, could subject us to fines or other sanctions, corrective action requirements and litigation.

We have been named as a potentially responsible party (“PRP”) in environmental remediation actions under various federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”). Many of these proceedings involve the cleanup of hazardous substances at sites that received waste from many different sources. While joint and several liability is authorized under CERCLA and analogous state laws, liability for CERCLA cleanups is typically shared with other PRPs, and costs are commonly allocated according to relative amounts of waste deposited and other factors. We believe we have insurance and contractual indemnification rights that may allow us to recover certain defense and other costs at some CERCLA sites. There are other remediation costs typically associated with the cleanup of hazardous substances at our current, closed or formerly-owned facilities, and recorded as liabilities in our balance sheet. Remediation costs are recorded in our financial statements when they become probable and reasonably estimable.

See “Note 17. Commitments and Contingencies” of the Notes to Consolidated Financial Statements section in the Fiscal 2021 Form 10-K for information related to environmental matters.

As of December 31, 2021, we had $4.7 million reserved for environmental liabilities on an undiscounted basis, of which $1.6 million is included in other long-term liabilities and $3.1 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 December 31, 2021.

Litigation

 

During fiscal 2018, we submitted formal notification to withdraw from the PIUMPF and recorded a liability associated with the withdrawal. Subsequently, in fiscal 2019 and 2020, we received demand letters from PIUMPF, including a demand for withdrawal liabilities and for our proportionate share of PIUMPF's accumulated funding deficiency, and we refined our liability, the impact of which was not significant. We began making monthly payments for the PIUMPF withdrawal liabilities in fiscal 2020, excluding the accumulated funding deficiency demands. We dispute the PIUMPF accumulated funding deficiency demands. In February 2020, we received a demand letter from PIUMPF asserting that we owe $51.2 million for our pro-rata share of PIUMPF’s accumulated funding deficiency, including interest. Similarly, in April 2020, we received an updated demand letter related to a subsidiary of ours asserting that we owe $1.3 million of additional accumulated funding deficiency, including interest. In July 2021, the PIUMPF filed suit against us in the U.S. District Court for the Northern District of Georgia claiming the right to recover our pro rata share of the pension fund’s accumulated funding deficiency. We believe we are adequately reserved for this matter. See “Note 4. Retirement Plans — MEPPs” of the Notes to Condensed Consolidated Financial Statements for more information regarding our withdrawal liabilities.

We have been named a defendant in asbestos-related personal injury litigation. To date, the costs resulting from the litigation, including settlement costs, have not been significant. As of December 31, 2021, there were approximately 1,750 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. At December 31, 2021, we had $15.1 million reserved for these matters.

We are a defendant in a number of other lawsuits and claims arising out of the conduct of our business. While the ultimate results of such suits or other proceedings against us cannot be predicted 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

 

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

 

We assert that we have no liability in these matters. The total amount in dispute before CARF and in the annulment actions relating to the claimed tax deficiency was R$706 million ($127 million) as of December 31, 2021, including various penalties and interest. The U.S. dollar equivalent has fluctuated significantly due to changes in exchange rates. The amount of our uncertain tax position reserve for this matter, that excludes certain penalties, is included in the unrecognized tax benefits table in our Fiscal 2021 Form 10-K, see “Note 6. Income Taxes” of the Notes to Consolidated Financial Statements. Resolution of the uncertain tax positions could have a material adverse effect on our cash flows and results of operations or materially benefit our results of operations in future periods depending upon their ultimate resolution.

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 to be less than $50 million. As of December 31, 2021, we had recorded $2.3 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.
v3.22.0.1
Equity and Other Comprehensive Income (Loss)
 3 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Equity and Other Comprehensive Income (Loss)

Note 14. Equity and Other Comprehensive Income (Loss)

Equity

Stock Repurchase Program

In July 2015, our board of directors authorized a repurchase program of up to 40.0 million shares of our Common Stock, representing approximately 15% of our outstanding common stock, par value $0.01 per share (“Common Stock”) as of July 1, 2015. The shares of Common Stock may be repurchased over an indefinite period of time at the discretion of management. Pursuant to the program, in the three months ended December 31, 2021, we repurchased approximately 2.1 million shares of our Common Stock for an aggregate cost of $97.5 million. The amount reflected as purchased in the condensed consolidated statements of cash flows also includes shares purchased in fiscal 2021 that settled in fiscal 2022. In the three months ended December 31, 2020, we repurchased no shares of Common Stock. As of December 31, 2021, we had approximately 14.6 million shares of Common Stock available for repurchase under the program.

Accumulated Other Comprehensive Loss

The tables below summarize the changes in accumulated other comprehensive loss, net of tax, by component for the three months ended December 31, 2021 and December 31, 2020 (in millions):

 

 

 

Deferred (Loss) Income on Cash
Flow Hedges

 

 

Defined Benefit
Pension and
Postretirement
Plans

 

 

Foreign
Currency
Items

 

 

Total (1)

 

Balance at September 30, 2021

 

$

(0.2

)

 

$

(536.5

)

 

$

(462.4

)

 

$

(999.1

)

Other comprehensive loss before
   reclassifications

 

 

—

 

 

 

—

 

 

 

(16.2

)

 

 

(16.2

)

Amounts reclassified from accumulated other
   comprehensive loss

 

 

—

 

 

 

2.6

 

 

 

—

 

 

 

2.6

 

Net current period other comprehensive income (loss)

 

 

—

 

 

 

2.6

 

 

 

(16.2

)

 

 

(13.6

)

Balance at December 31, 2021

 

$

(0.2

)

 

$

(533.9

)

 

$

(478.6

)

 

$

(1,012.7

)

 

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

 

 

 

Deferred (Loss) Income on Cash
Flow Hedges

 

 

Defined Benefit
Pension and
Postretirement
Plans

 

 

Foreign
Currency
Items

 

 

Total (1)

 

Balance at September 30, 2020

 

$

(5.6

)

 

$

(727.7

)

 

$

(586.6

)

 

$

(1,319.9

)

Other comprehensive (loss) income before
   reclassifications

 

 

(0.1

)

 

 

—

 

 

 

196.6

 

 

 

196.5

 

Amounts reclassified from accumulated other
   comprehensive loss

 

 

1.5

 

 

 

6.6

 

 

 

—

 

 

 

8.1

 

Net current period other comprehensive income

 

 

1.4

 

 

 

6.6

 

 

 

196.6

 

 

 

204.6

 

Balance at December 31, 2020

 

$

(4.2

)

 

$

(721.1

)

 

$

(390.0

)

 

$

(1,115.3

)

 

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

The net of tax amounts were determined using the jurisdictional statutory rates, and reflect effective tax rates averaging 26% to 27% for the three months ended December 31, 2021 and 25% to 26% for the three months ended December 31, 2020. Although we are impacted by the exchange rates of a number of currencies, foreign currency translation adjustments recorded in accumulated other comprehensive loss for the three months ended December 31, 2021 were primarily due to losses in the Brazilian Real partially offset by gains in the British Pound and Chinese Yuan, each against the U.S. dollar. Foreign currency translation adjustments recorded in accumulated other comprehensive loss for the three months ended December 31, 2020 were primarily due to gains in the Brazilian Real, Mexican Peso, Canadian dollar and British Pound, each against the U.S. dollar.

 

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

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Pretax

 

 

Tax

 

 

Net of Tax

 

 

Pretax

 

 

Tax

 

 

Net of Tax

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Actuarial losses (2)

 

$

(1.6

)

 

$

0.4

 

 

$

(1.2

)

 

$

(7.4

)

 

$

1.9

 

 

$

(5.5

)

   Prior service costs (2)

 

 

(1.9

)

 

 

0.5

 

 

 

(1.4

)

 

 

(1.5

)

 

 

0.4

 

 

 

(1.1

)

Subtotal defined benefit plans

 

 

(3.5

)

 

 

0.9

 

 

 

(2.6

)

 

 

(8.9

)

 

 

2.3

 

 

 

(6.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Interest rate swap hedge loss (3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.0

)

 

 

0.5

 

 

 

(1.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total reclassifications for the period

 

$

(3.5

)

 

$

0.9

 

 

$

(2.6

)

 

$

(10.9

)

 

$

2.8

 

 

$

(8.1

)

 

 

(1) Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded.

(2) Included in the computation of net periodic pension cost. See “Note 4. Retirement Plans” for additional details.

(3) These accumulated other comprehensive income components are included in Interest expense, net.
v3.22.0.1
Earnings Per Share
 3 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Share

Note 15. 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):

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Numerator:

 

 

 

 

 

 

Net income attributable to common stockholders

 

$

182.3

 

 

$

152.0

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

264.6

 

 

 

262.7

 

Effect of dilutive stock options and non-
   participating securities

 

 

2.3

 

 

 

2.1

 

Diluted weighted average shares outstanding

 

 

266.9

 

 

 

264.8

 

 

 

 

 

 

 

 

Basic earnings per share attributable to common
   stockholders

 

$

0.69

 

 

$

0.58

 

Diluted earnings per share attributable to common
   stockholders

 

$

0.68

 

 

$

0.57

 

 

During the three months ended December 31, 2021 and December 31, 2020 in the table above, the amount of distributed and undistributed income available to participating securities was de minimis and did not impact net income attributable to common stockholders.

 

Approximately 0.4 million and 0.6 million awards in the three months ended December 31, 2021 and 2020, respectively, were not included in computing diluted earnings per share because the effect would have been antidilutive.

v3.22.0.1
Basis of Presentation and Significant Accounting Policies (Policies)
 3 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

Our independent registered public accounting firm has not audited the accompanying interim financial statements. We derived the condensed consolidated balance sheet at September 30, 2021 from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021 (the “Fiscal 2021 Form 10-K”). In the opinion of management, all normal recurring adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included for the interim periods reported.

 

We have condensed or omitted certain notes and other information from the interim financial statements presented in this report. Therefore, these interim financial statements should be read in conjunction with the Fiscal 2021 Form 10-K. The results for the three months ended December 31, 2021 are not necessarily indicative of results that may be expected for the full year.

Reclassifications and Adjustments

Reclassifications and Adjustments

Effective October 1, 2021, we reorganized our segment reporting to four reportable segments: Corrugated Packaging, Consumer Packaging, Paper and Distribution. Prior period amounts have been recast throughout the Notes to Condensed Consolidated Financial Statements, as applicable, to conform to the new segment structure. These changes did not impact our consolidated financial statements. See “Note 6. Segment Information” for additional information.

Certain other amounts in prior periods have been reclassified to conform with the current year presentation.
COVID-19 Pandemic

COVID-19 Pandemic

 

The global impact of the COVID-19 pandemic ("COVID") continues to evolve and our first priority has been and continues to be the health and safety of our teammates. We have taken, and continue to take, actions to protect the health and safety of our teammates during COVID and we have incurred and continue to incur costs for safety, cleaning and other items related to COVID. The pandemic has affected our operational and financial performance to varying degrees and the extent of its effect on our operational and financial performance will continue to depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration, scope and severity of the pandemic (including due to new or continuing variants such as Omicron and Delta), the actions taken to contain or mitigate its impact (including the distribution and effectiveness of vaccines and vaccine boosters), and the direct and indirect economic effects of the pandemic and related containment measures and government responses, among others. Our net sales have been negatively impacted by COVID, to varying degrees, primarily in the last half of fiscal 2020, and we have experienced and are currently experiencing higher supply chain costs and tight labor markets in part due to the impacts of COVID. The Company’s assessment of the future magnitude and duration of COVID, as well as other factors, may change and could result in changes in our accounting estimates and assumptions used to prepare our financial statements in conformity with generally accepted accounting principles in the U.S. ("GAAP").
Ransomware Incident

Ransomware Incident

 

As previously disclosed, on January 23, 2021 we detected a ransomware incident impacting certain of our systems. Promptly upon our detection of this incident, we initiated response and containment protocols and our security teams, supplemented by leading cyber defense firms, worked to remediate this incident. We undertook extensive efforts to identify, contain and recover from this incident quickly and securely. Our teams worked to maintain our business operations and minimize the impact on our customers and teammates. In our second quarter of fiscal 2021 Form 10‐Q, we announced that all systems are back in service. All of our mills and converting locations began producing and shipping paper and packaging at pre-ransomware levels in March 2021 or earlier.

As previously disclosed, we estimate the pre-tax income impact of the lost sales and operational disruption of this incident on our operations in the second quarter of fiscal 2021 was approximately $50 million, as well as approximately $20 million of ransomware recovery costs, primarily professional fees. In addition, we incurred approximately $9 million of ransomware recovery costs in the third quarter of fiscal 2021. In the fourth quarter of fiscal 2021, we recorded a $15 million credit for preliminary recoveries – approximately $10 million as a reduction of SG&A excluding intangible amortization and approximately $5 million as a reduction of cost of goods sold. In the first quarter of fiscal 2022, we received an additional business interruption recovery of $5 million related to the ransomware incident, which we recorded as a reduction of Cost of goods sold and presented in net cash provided by operating activities on our condensed consolidated statements of cash flows. We expect to recover substantially all of the remaining ransomware losses from cyber and business interruption insurance from various carriers in future periods. Disputes over the extent of insurance coverage for claims are not uncommon, and there will be a time lag between the initial incurrence of costs and the receipt of any insurance proceeds.

See “Note 1. Description of Business and Summary of Significant Accounting Policies — Ransomware Incident” of the Notes to Consolidated Financial Statements section in the Fiscal 2021 Form 10-K for additional information.
Significant Accounting Policies

Significant Accounting Policies

 

See “Note 1. Description of Business and Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements section in the Fiscal 2021 Form 10-K for a summary of our significant accounting policies.

New Accounting Standards - Recently Adopted

New Accounting Standards — Recently Adopted

 

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. This ASU removes certain exceptions from recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also reduces complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022 for us) and interim periods within those fiscal years. We adopted the provisions of ASU 2019-12 beginning October 1, 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements.

In July 2021, the FASB issued ASU 2021-05, “Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments”. This ASU requires lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses at lease commencement if they were classified as sales-type or direct financing leases. For lessors that had adopted Accounting Standards Codification (“ASC”) 842, "Leases" as of July 19, 2021, when the amendments were issued, the amendments can be applied either retrospectively or prospectively and are effective for annual periods beginning after December 15, 2021 (fiscal 2023 for us) and interim periods within those annual periods. Early adoption is permitted. We early adopted this ASU using the prospective transition approach beginning October 1, 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements.
New Accounting Standards - Recently Issued

New Accounting Standards — Recently Issued

 

In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance”. This ASU aims to increase the transparency of government assistance through the annual disclosure of the types of assistance, an entity’s accounting for the assistance and the effect of the assistance on an entity’s financial statements. This ASU is effective for annual periods beginning after December 15, 2021 (fiscal 2023 for us), with early adoption permitted. We are evaluating the impact of this ASU.

 

In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. This ASU requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606 “Revenue from Contracts with Customers” (“ASC 606”). This ASU is intended to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), including interim periods therein, with early adoption permitted. We are evaluating the impact of this ASU.

 

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. This ASU provides temporary optional expedients and exceptions for applying GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. In January 2021, the FASB issued ASU 2021-01, which adds implementation guidance to clarify certain optional expedients in Topic 848. The ASUs can be adopted after their respective issuance dates through December 31, 2022. We are currently evaluating our contracts and the impact of optional expedients provided by these ASUs. 
v3.22.0.1
Revenue Recognition (Tables)
 3 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment) The tables below disaggregate our revenue by geographical market and product type (segment).

 

 

 

Three Months Ended December 31, 2021

 

(In millions)

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Geographical Markets

 

U.S.

 

$

1,969.0

 

 

$

648.3

 

 

$

1,213.1

 

 

$

284.6

 

 

$

(82.4

)

 

$

4,032.6

 

Canada

 

 

140.4

 

 

 

114.3

 

 

 

57.9

 

 

 

3.5

 

 

 

(1.3

)

 

 

314.8

 

Latin America

 

 

107.6

 

 

 

45.5

 

 

 

48.3

 

 

 

36.7

 

 

 

(0.1

)

 

 

238.0

 

EMEA (1)

 

 

3.0

 

 

 

252.1

 

 

 

15.9

 

 

 

—

 

 

 

(0.1

)

 

 

270.9

 

Asia Pacific

 

 

—

 

 

 

78.5

 

 

 

17.4

 

 

 

—

 

 

 

—

 

 

 

95.9

 

Total

 

$

2,220.0

 

 

$

1,138.7

 

 

$

1,352.6

 

 

$

324.8

 

 

$

(83.9

)

 

$

4,952.2

 

 

(1)
Europe, Middle East and Africa ("EMEA")

 

 

 

Three Months Ended December 31, 2020

 

(In millions)

 

Corrugated Packaging

 

 

Consumer Packaging

 

 

Paper

 

 

Distribution

 

 

Intersegment Sales

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Geographical Markets

 

U.S.

 

$

1,823.7

 

 

$

606.6

 

 

$

1,008.4

 

 

$

269.0

 

 

$

(73.9

)

 

$

3,633.8

 

Canada

 

 

124.6

 

 

 

113.4

 

 

 

43.4

 

 

 

3.6

 

 

 

(1.2

)

 

 

283.8

 

Latin America

 

 

70.3

 

 

 

39.9

 

 

 

10.5

 

 

 

31.2

 

 

 

—

 

 

 

151.9

 

EMEA

 

 

0.9

 

 

 

233.0

 

 

 

16.2

 

 

 

—

 

 

 

—

 

 

 

250.1

 

Asia Pacific

 

 

—

 

 

 

69.6

 

 

 

12.4

 

 

 

—

 

 

 

(0.1

)

 

 

81.9

 

Total

 

$

2,019.5

 

 

$

1,062.5

 

 

$

1,090.9

 

 

$

303.8

 

 

$

(75.2

)

 

$

4,401.5

 

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

The opening and closing balances of our contract assets and contract liabilities are as follows. Contract assets and contract liabilities are reported within Other current assets and Other current liabilities, respectively, on the condensed consolidated balance sheet.

 

(In millions)

 

Contract Assets
(Short-Term)

 

 

Contract Liabilities
(Short-Term)

 

 

 

 

 

 

 

 

Beginning balance - October 1, 2021

 

$

199.1

 

 

$

12.8

 

Ending balance - December 31, 2021

 

 

213.5

 

 

 

16.4

 

Increase

 

$

14.4

 

 

$

3.6

 
v3.22.0.1
Restructuring and Other Costs (Tables)
 3 Months Ended
Dec. 31, 2021
Restructuring And Other Costs [Abstract]  
Schedule of Restructuring and Other Costs

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Restructuring

 

$

2.1

 

 

$

6.6

 

Other

 

 

0.2

 

 

 

1.1

 

Restructuring and other costs

 

$

2.3

 

 

$

7.7

 
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 three months ended December 31, 2021 and 2020, the cumulative recorded amount since we started the initiatives and our estimate of the total we expect to incur (in millions):

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

Cumulative

 

 

Total
Expected

 

Corrugated Packaging

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

—

 

 

$

—

 

 

$

3.6

 

 

$

3.6

 

Severance and other employee costs

 

 

(0.4

)

 

 

(0.7

)

 

 

28.3

 

 

 

28.7

 

Other restructuring costs

 

 

0.3

 

 

 

0.9

 

 

 

10.5

 

 

 

12.6

 

Restructuring total

 

$

(0.1

)

 

$

0.2

 

 

$

42.4

 

 

$

44.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Packaging

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

—

 

 

$

0.2

 

 

$

3.3

 

 

$

3.3

 

Severance and other employee costs

 

 

1.8

 

 

 

3.5

 

 

 

32.0

 

 

 

32.0

 

Other restructuring costs

 

 

—

 

 

 

1.0

 

 

 

10.5

 

 

 

10.5

 

Restructuring total

 

$

1.8

 

 

$

4.7

 

 

$

45.8

 

 

$

45.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

0.9

 

 

$

—

 

 

$

9.7

 

 

$

9.7

 

Severance and other employee costs

 

 

—

 

 

 

1.6

 

 

 

59.5

 

 

 

59.5

 

Other restructuring costs

 

 

(0.5

)

 

 

0.1

 

 

 

(1.3

)

 

 

(1.3

)

Restructuring total

 

$

0.4

 

 

$

1.7

 

 

$

67.9

 

 

$

67.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (1)

 

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment costs

 

$

0.9

 

 

$

0.2

 

 

$

16.6

 

 

$

16.6

 

Severance and other employee costs

 

 

1.4

 

 

 

4.4

 

 

 

119.8

 

 

 

120.2

 

Other restructuring costs

 

 

(0.2

)

 

 

2.0

 

 

 

19.7

 

 

 

21.8

 

Restructuring total

 

$

2.1

 

 

$

6.6

 

 

$

156.1

 

 

$

158.6

 

 

(1)
The Cumulative and Total Expected columns each exclude approximately $81 million for aggregate Paper segment, Land and Development segment and Distribution segment restructuring charges that were incurred in prior periods since the table includes no current year or prior year period activity for those segments.
Schedule of Acquisition and Integration Costs

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Acquisition costs

 

$

0.2

 

 

$

0.2

 

Integration costs

 

 

—

 

 

 

0.9

 

Other total

 

$

0.2

 

 

$

1.1

 
Schedule of Changes in Restructuring Accrual and Reconciliation of Accrual Charges

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Accrual at beginning of fiscal year

 

$

13.4

 

 

$

17.2

 

Additional accruals

 

 

1.8

 

 

 

5.4

 

Payments

 

 

(1.9

)

 

 

(7.0

)

Adjustment to accruals

 

 

(0.4

)

 

 

(1.1

)

Foreign currency rate changes and other

 

 

(0.2

)

 

 

0.1

 

Accrual at December 31

 

$

12.7

 

 

$

14.6

 

 

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Additional accruals and adjustments to accruals
   (see table above)

 

$

1.4

 

 

$

4.3

 

Acquisition costs

 

 

0.2

 

 

 

0.2

 

Integration costs

 

 

—

 

 

 

0.9

 

Net property, plant and equipment costs

 

 

0.9

 

 

 

0.2

 

Severance and other employee costs

 

 

—

 

 

 

0.1

 

Other restructuring costs

 

 

(0.2

)

 

 

2.0

 

Total restructuring and other costs

 

$

2.3

 

 

$

7.7

 
v3.22.0.1
Retirement Plans (Tables)
 3 Months Ended
Dec. 31, 2021
Retirement Plans [Abstract]  
Summary of Components of Net Pension Income and Summary of Components of Postretirement Benefit Cost

Pension and Postretirement Income / Expense

The following table presents a summary of the components of net pension income (in millions):

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Service cost

 

$

12.5

 

 

$

13.5

 

Interest cost

 

 

47.4

 

 

 

46.4

 

Expected return on plan assets

 

 

(92.5

)

 

 

(91.7

)

Amortization of net actuarial loss

 

 

2.2

 

 

 

7.9

 

Amortization of prior service cost

 

 

2.1

 

 

 

2.0

 

Company defined benefit plan income

 

 

(28.3

)

 

 

(21.9

)

Multiemployer and other plans

 

 

0.3

 

 

 

0.4

 

Net pension income

 

$

(28.0

)

 

$

(21.5

)
The following table presents a summary of the components of the net postretirement cost (in millions):

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Service cost

 

$

0.3

 

 

$

0.3

 

Interest cost

 

 

1.5

 

 

 

1.4

 

Amortization of net actuarial gain

 

 

(0.4

)

 

 

(0.3

)

Amortization of prior service credit

 

 

(0.2

)

 

 

(0.6

)

Net postretirement cost

 

$

1.2

 

 

$

0.8

 
v3.22.0.1
Segment Information (Tables)
 3 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Certain Operating Data for Segments

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Net sales (aggregate):

 

 

 

 

 

 

Corrugated Packaging

 

$

2,220.0

 

 

$

2,019.5

 

Consumer Packaging

 

 

1,138.7

 

 

 

1,062.5

 

Paper

 

 

1,352.6

 

 

 

1,090.9

 

Distribution

 

 

324.8

 

 

 

303.8

 

Total

 

$

5,036.1

 

 

$

4,476.7

 

Less net sales (intersegment):

 

 

 

 

 

 

Corrugated Packaging

 

$

74.2

 

 

$

71.1

 

Consumer Packaging

 

 

6.0

 

 

 

3.9

 

Distribution

 

 

3.7

 

 

 

0.2

 

Total

 

$

83.9

 

 

$

75.2

 

Net sales (unaffiliated customers):

 

 

 

 

 

 

Corrugated Packaging

 

$

2,145.8

 

 

$

1,948.4

 

Consumer Packaging

 

 

1,132.7

 

 

 

1,058.6

 

Paper

 

 

1,352.6

 

 

 

1,090.9

 

Distribution

 

 

321.1

 

 

 

303.6

 

Total

 

$

4,952.2

 

 

$

4,401.5

 

Adjusted EBITDA:

 

 

 

 

 

 

Corrugated Packaging

 

$

288.9

 

 

$

347.6

 

Consumer Packaging

 

 

169.3

 

 

 

175.3

 

Paper

 

 

232.4

 

 

 

151.7

 

Distribution

 

 

6.5

 

 

 

16.4

 

Total

 

 

697.1

 

 

 

691.0

 

Depreciation, depletion and amortization

 

 

(366.5

)

 

 

(364.5

)

Gain on sale of certain closed facilities

 

 

14.4

 

 

 

0.9

 

Multiemployer pension withdrawal income

 

 

3.3

 

 

 

—

 

Restructuring and other costs

 

 

(2.3

)

 

 

(7.7

)

Non-allocated expenses

 

 

(16.8

)

 

 

(21.2

)

Interest expense, net

 

 

(86.7

)

 

 

(93.8

)

Loss on extinguishment of debt

 

 

—

 

 

 

(1.1

)

Other income, net

 

 

0.2

 

 

 

20.8

 

Other adjustments

 

 

(0.3

)

 

 

(21.6

)

Income before income taxes

 

$

242.4

 

 

$

202.8

 

 

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

Corrugated Packaging

 

$

167.0

 

 

$

175.6

 

Consumer Packaging

 

 

86.3

 

 

 

85.8

 

Paper

 

 

106.2

 

 

 

96.5

 

Distribution

 

 

5.8

 

 

 

5.8

 

Corporate

 

 

1.2

 

 

 

0.8

 

Total

 

$

366.5

 

 

$

364.5

 

 

 

 

 

 

 

 

Other adjustments:

 

 

 

 

 

 

Corrugated Packaging

 

$

—

 

 

$

9.5

 

Consumer Packaging

 

 

0.2

 

 

 

8.9

 

Paper

 

 

0.1

 

 

 

1.8

 

Distribution

 

 

—

 

 

 

0.6

 

Corporate

 

 

—

 

 

 

0.8

 

Total

 

$

0.3

 

 

$

21.6

 

 

As we report the benefit of vertical integration with our mills in each reportable segment that ultimately sells the associated paper and packaging products to our external customers, we correspondingly allocate the assets and capital expenditures of our mill system across our reportable segments. The following tables reflect such allocation.

 

 

 

December 31,
2021

 

 

September 30,
2021

 

Assets:

 

 

 

 

 

 

Corrugated Packaging

 

$

11,536.3

 

 

$

11,526.0

 

Consumer Packaging

 

 

6,755.0

 

 

 

6,750.5

 

Paper

 

 

7,509.5

 

 

 

7,525.7

 

Distribution

 

 

754.0

 

 

 

796.2

 

Assets held for sale

 

 

4.2

 

 

 

10.9

 

Corporate

 

 

2,523.5

 

 

 

2,645.0

 

Total

 

$

29,082.5

 

 

$

29,254.3

 

 

 

 

 

 

 

 

Intangibles, net:

 

 

 

 

 

 

Corrugated Packaging

 

$

736.4

 

 

$

765.9

 

Consumer Packaging

 

 

1,688.0

 

 

 

1,719.2

 

Paper

 

 

661.4

 

 

 

677.7

 

Distribution

 

 

151.0

 

 

 

156.0

 

Total

 

$

3,236.8

 

 

$

3,318.8

 

 

 

 

 

 

 

 

Equity method investments:

 

 

 

 

 

 

Corrugated Packaging

 

$

447.5

 

 

$

434.4

 

Consumer Packaging

 

 

0.4

 

 

 

17.7

 

Paper

 

 

0.8

 

 

 

0.8

 

Corporate

 

 

0.4

 

 

 

0.4

 

Total

 

$

449.1

 

 

$

453.3

 

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Capital expenditures:

 

 

 

 

 

 

Corrugated Packaging

 

$

75.7

 

 

$

69.2

 

Consumer Packaging

 

 

37.3

 

 

 

43.4

 

Paper

 

 

51.5

 

 

 

51.6

 

Distribution

 

 

0.8

 

 

 

0.1

 

Corporate

 

 

7.8

 

 

 

6.4

 

Total

 

$

173.1

 

 

$

170.7

 
Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill during the three months ended December 31, 2021 are as follows (in millions):

 

 

 

Legacy Reportable Segments

 

 

New Reportable Segments

 

 

 

 

 

 

Corrugated
Packaging

 

 

Consumer
Packaging

 

 

Corrugated
Packaging

 

 

Consumer
Packaging

 

 

Paper

 

 

Distribution

 

 

Total

 

Balance as of Sep. 30, 2021

 

$

3,663.3

 

 

$

2,295.9

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,959.2

 

Segment recasting (1)

 

 

(3,663.3

)

 

 

(2,295.9

)

 

 

2,834.8

 

 

 

1,603.3

 

 

 

1,382.0

 

 

 

139.1

 

 

 

—

 

Goodwill acquired

 

 

—

 

 

 

—

 

 

 

3.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.2

 

Translation adjustments

 

 

—

 

 

 

—

 

 

 

(6.6

)

 

 

1.3

 

 

 

(1.6

)

 

 

(0.1

)

 

 

(7.0

)

Balance as of Dec. 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

—

 

 

$

—

 

 

$

2,831.4

 

 

$

1,604.6

 

 

$

1,380.4

 

 

$

139.0

 

 

$

5,955.4

 

 

(1)
Represents reallocation of goodwill as a result of changes in segments on October 1, 2021.

 
v3.22.0.1
Interest Expense, Net (Tables)
 3 Months Ended
Dec. 31, 2021
Interest Income (Expense), Net [Abstract]  
Summary of Components of Interest Expense, Net

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

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Interest expense

 

$

(98.3

)

 

$

(105.5

)

Interest income

 

 

11.6

 

 

 

11.7

 

Interest expense, net

 

$

(86.7

)

 

$

(93.8

)
v3.22.0.1
Inventories (Tables)
 3 Months Ended
Dec. 31, 2021
Inventory Disclosure [Abstract]  
Schedule of Inventories

The components of inventories were as follows (in millions):

 

 

 

December 31,
2021

 

 

September 30,
2021

 

Finished goods and work in process

 

$

1,042.2

 

 

$

972.7

 

Raw materials

 

 

982.1

 

 

 

888.1

 

Spare parts and supplies

 

 

506.4

 

 

 

536.4

 

Inventories at FIFO cost

 

 

2,530.7

 

 

 

2,397.2

 

LIFO reserve

 

 

(289.4

)

 

 

(223.9

)

Net inventories

 

$

2,241.3

 

 

$

2,173.3

 
v3.22.0.1
Property, Plant and Equipment (Tables)
 3 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment

The components of property, plant and equipment were as follows (in millions):

 

 

 

December 31,
2021

 

 

September 30,
2021

 

Property, plant and equipment at cost:

 

 

 

 

 

 

Land and buildings

 

$

2,638.0

 

 

$

2,626.0

 

Machinery and equipment

 

 

16,003.0

 

 

 

15,853.1

 

Forestlands and mineral rights

 

 

118.3

 

 

 

120.0

 

Transportation equipment

 

 

25.8

 

 

 

26.1

 

Leasehold improvements

 

 

94.2

 

 

 

93.9

 

 

 

 

18,879.3

 

 

 

18,719.1

 

Less: accumulated depreciation, depletion and
   amortization

 

 

(8,397.2

)

 

 

(8,149.0

)

Property, plant and equipment, net

 

$

10,482.1

 

 

$

10,570.1

 
v3.22.0.1
Fair Value (Tables)
 3 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Summary of Accounts Receivable Sales Agreement

The following table presents a summary of these accounts receivable sales agreements for the three months ended December 31, 2021 and December 31, 2020 (in millions):

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Receivable from financial institutions at beginning of fiscal year

 

$

—

 

 

$

—

 

Receivables sold to the financial institutions and derecognized

 

 

(721.8

)

 

 

(680.7

)

Receivables collected by financial institutions

 

 

699.2

 

 

 

644.5

 

Cash proceeds from financial institutions

 

 

22.6

 

 

 

36.2

 

Receivable from financial institutions at December 31

 

$

—

 

 

$

—

 
v3.22.0.1
Debt (Tables)
 3 Months Ended
Dec. 31, 2021
Debt [Abstract]  
Schedule of Carrying Value of Individual Components of Debt

The following table shows the carrying value of the individual components of our debt (in millions):

 

 

 

December 31, 2021

 

 

September 30, 2021

 

Public bonds due fiscal 2023 to 2028

 

$

3,779.4

 

 

$

3,778.2

 

Public bonds due fiscal 2029 to 2033

 

 

2,763.3

 

 

 

2,766.5

 

Public bonds due fiscal 2037 to 2047

 

 

178.1

 

 

 

178.2

 

Term loan facilities

 

 

599.0

 

 

 

598.9

 

Revolving credit and swing facilities

 

 

336.1

 

 

 

270.0

 

Finance lease obligations

 

 

261.5

 

 

 

264.1

 

Vendor financing and commercial card
   programs

 

 

115.8

 

 

 

113.1

 

International and other debt

 

 

200.0

 

 

 

225.1

 

Total debt

 

 

8,233.2

 

 

 

8,194.1

 

Less: current portion of debt

 

 

236.8

 

 

 

168.8

 

Long-term debt due after one year

 

$

7,996.4

 

 

$

8,025.3

 
v3.22.0.1
Leases (Tables)
 3 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Summary of Supplemental Balance Sheet Information Related to Leases

Supplemental Balance Sheet Information Related to Leases

 

The table below presents supplemental balance sheet information related to leases (in millions):

 

 

 

Condensed Consolidated Balance
 Sheet Caption

 

December 31,
2021

 

 

September 30,
2021

 

Operating leases:

 

 

 

 

 

 

 

 

Operating lease right-of-use asset

 

Other assets

 

$

666.1

 

 

$

676.0

 

 

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

Other current liabilities

 

$

179.6

 

 

$

177.9

 

Operating lease liabilities

 

Other long-term liabilities

 

 

526.7

 

 

 

537.9

 

Total operating lease liabilities

 

 

 

$

706.3

 

 

$

715.8

 

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

$

143.1

 

 

$

143.2

 

Accumulated depreciation

 

 

 

 

(30.3

)

 

 

(28.3

)

Property, plant and equipment,
   net

 

 

 

$

112.8

 

 

$

114.9

 

 

 

 

 

 

 

 

 

 

Current finance lease liabilities

 

Current portion of debt

 

$

8.6

 

 

$

8.7

 

Noncurrent finance lease liabilities

 

Long-term debt due after one year

 

 

252.9

 

 

 

255.4

 

Total finance lease liabilities

 

 

 

$

261.5

 

 

$

264.1

 
v3.22.0.1
Equity and Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax

The tables below summarize the changes in accumulated other comprehensive loss, net of tax, by component for the three months ended December 31, 2021 and December 31, 2020 (in millions):

 

 

 

Deferred (Loss) Income on Cash
Flow Hedges

 

 

Defined Benefit
Pension and
Postretirement
Plans

 

 

Foreign
Currency
Items

 

 

Total (1)

 

Balance at September 30, 2021

 

$

(0.2

)

 

$

(536.5

)

 

$

(462.4

)

 

$

(999.1

)

Other comprehensive loss before
   reclassifications

 

 

—

 

 

 

—

 

 

 

(16.2

)

 

 

(16.2

)

Amounts reclassified from accumulated other
   comprehensive loss

 

 

—

 

 

 

2.6

 

 

 

—

 

 

 

2.6

 

Net current period other comprehensive income (loss)

 

 

—

 

 

 

2.6

 

 

 

(16.2

)

 

 

(13.6

)

Balance at December 31, 2021

 

$

(0.2

)

 

$

(533.9

)

 

$

(478.6

)

 

$

(1,012.7

)

 

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

 

 

 

Deferred (Loss) Income on Cash
Flow Hedges

 

 

Defined Benefit
Pension and
Postretirement
Plans

 

 

Foreign
Currency
Items

 

 

Total (1)

 

Balance at September 30, 2020

 

$

(5.6

)

 

$

(727.7

)

 

$

(586.6

)

 

$

(1,319.9

)

Other comprehensive (loss) income before
   reclassifications

 

 

(0.1

)

 

 

—

 

 

 

196.6

 

 

 

196.5

 

Amounts reclassified from accumulated other
   comprehensive loss

 

 

1.5

 

 

 

6.6

 

 

 

—

 

 

 

8.1

 

Net current period other comprehensive income

 

 

1.4

 

 

 

6.6

 

 

 

196.6

 

 

 

204.6

 

Balance at December 31, 2020

 

$

(4.2

)

 

$

(721.1

)

 

$

(390.0

)

 

$

(1,115.3

)

 

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

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

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Pretax

 

 

Tax

 

 

Net of Tax

 

 

Pretax

 

 

Tax

 

 

Net of Tax

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Actuarial losses (2)

 

$

(1.6

)

 

$

0.4

 

 

$

(1.2

)

 

$

(7.4

)

 

$

1.9

 

 

$

(5.5

)

   Prior service costs (2)

 

 

(1.9

)

 

 

0.5

 

 

 

(1.4

)

 

 

(1.5

)

 

 

0.4

 

 

 

(1.1

)

Subtotal defined benefit plans

 

 

(3.5

)

 

 

0.9

 

 

 

(2.6

)

 

 

(8.9

)

 

 

2.3

 

 

 

(6.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Interest rate swap hedge loss (3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.0

)

 

 

0.5

 

 

 

(1.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total reclassifications for the period

 

$

(3.5

)

 

$

0.9

 

 

$

(2.6

)

 

$

(10.9

)

 

$

2.8

 

 

$

(8.1

)

 

 

(1) Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded.

(2) Included in the computation of net periodic pension cost. See “Note 4. Retirement Plans” for additional details.

(3) These accumulated other comprehensive income components are included in Interest expense, net.
v3.22.0.1
Earnings Per Share (Tables)
 3 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in millions, except per share data):

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Numerator:

 

 

 

 

 

 

Net income attributable to common stockholders

 

$

182.3

 

 

$

152.0

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

264.6

 

 

 

262.7

 

Effect of dilutive stock options and non-
   participating securities

 

 

2.3

 

 

 

2.1

 

Diluted weighted average shares outstanding

 

 

266.9

 

 

 

264.8

 

 

 

 

 

 

 

 

Basic earnings per share attributable to common
   stockholders

 

$

0.69

 

 

$

0.58

 

Diluted earnings per share attributable to common
   stockholders

 

$

0.68

 

 

$

0.57

 
v3.22.0.1
Basis of Presentation and Significant Accounting Policies - Additional Information (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
Segment
Sep. 30, 2021
USD ($)
Jun. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Sep. 30, 2021
Segment
Basis of Presentation and Significant Accounting Policies [Line Items]          
Number of reportable segments | Segment 4       2
Pre-tax impact of lost sales and operational disruption       $ 50  
Ransomware recovery costs     $ 9 $ 20  
Ransomware preliminary recoveries   $ 15      
Reduction of SG&A expenses excluding intangible amortization   10      
Reduction of cost of goods sold $ 5 $ 5      
ASU 2019-12 Member]          
Basis of Presentation and Significant Accounting Policies [Line Items]          
Change in accounting principle, accounting standards update, adopted true        
Change in accounting principle, accounting standards update, adoption date Oct. 01, 2021        
Change in accounting principle, accounting standards update, immaterial effect true        
ASU 2021-05 [Member]          
Basis of Presentation and Significant Accounting Policies [Line Items]          
Change in accounting principle, accounting standards update, early adoption true        
Change in accounting principle, accounting standards update, adoption date Oct. 01, 2021        
Change in accounting principle, accounting standards update, immaterial effect true        
v3.22.0.1
Revenue Recognition - Additional Information (Details) - Segment
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Disaggregation Of Revenue [Line Items]    
Number of reportable segments 4 2
v3.22.0.1
Revenue Recognition - Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment) (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Disaggregation Of Revenue [Line Items]    
Net sales $ 4,952.2 $ 4,401.5
Corrugated Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 2,220.0 2,019.5
Consumer Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 1,138.7 1,062.5
Paper [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 1,352.6 1,090.9
Distribution [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 324.8 303.8
Intersegment Sales [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales (83.9) (75.2)
Intersegment Sales [Member] | Corrugated Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales (74.2) (71.1)
Intersegment Sales [Member] | Consumer Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales (6.0) (3.9)
Intersegment Sales [Member] | Distribution [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales (3.7) (0.2)
U.S. [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 4,032.6 3,633.8
U.S. [Member] | Corrugated Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 1,969.0 1,823.7
U.S. [Member] | Consumer Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 648.3 606.6
U.S. [Member] | Paper [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 1,213.1 1,008.4
U.S. [Member] | Distribution [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 284.6 269.0
U.S. [Member] | Intersegment Sales [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales (82.4) (73.9)
Canada [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 314.8 283.8
Canada [Member] | Corrugated Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 140.4 124.6
Canada [Member] | Consumer Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 114.3 113.4
Canada [Member] | Paper [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 57.9 43.4
Canada [Member] | Distribution [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 3.5 3.6
Canada [Member] | Intersegment Sales [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales (1.3) (1.2)
Latin America [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 238.0 151.9
Latin America [Member] | Corrugated Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 107.6 70.3
Latin America [Member] | Consumer Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 45.5 39.9
Latin America [Member] | Paper [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 48.3 10.5
Latin America [Member] | Distribution [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 36.7 31.2
Latin America [Member] | Intersegment Sales [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales (0.1)  
EMEA [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 270.9 [1] 250.1
EMEA [Member] | Corrugated Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 3.0 [1] 0.9
EMEA [Member] | Consumer Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 252.1 [1] 233.0
EMEA [Member] | Paper [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 15.9 [1] 16.2
EMEA [Member] | Intersegment Sales [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales [1] (0.1)  
Asia Pacific [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 95.9 81.9
Asia Pacific [Member] | Consumer Packaging [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales 78.5 69.6
Asia Pacific [Member] | Paper [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales $ 17.4 12.4
Asia Pacific [Member] | Intersegment Sales [Member]    
Disaggregation Of Revenue [Line Items]    
Net sales   $ (0.1)
[1] Europe, Middle East and Africa ("EMEA")
v3.22.0.1
Revenue Recognition - Summary of Opening and Closing Balances of Contract Assets and Contract Liabilities (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2021
USD ($)
Disaggregation of Revenue [Abstract]  
Short-Term Contract Assets, Beginning balance $ 199.1
Increase in Short-Term Contract Assets 14.4
Short-Term Contract Assets, Ending balance 213.5
Short-Term Contract Liabilities, Beginning balance 12.8
Increase in Short-Term Contract Liabilities 3.6
Short-Term Contract Liabilities, Ending balance $ 16.4
v3.22.0.1
Restructuring and Other Costs - Additional Information (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
Segment
Dec. 31, 2020
USD ($)
Sep. 30, 2021
Segment
Restructuring and Related Activities [Abstract]      
Number of reportable segments | Segment 4   2
Restructuring and other costs | $ $ 2.3 $ 7.7  
v3.22.0.1
Restructuring and Other Costs - Schedule of Restructuring and Other Costs (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Restructuring and Related Activities [Abstract]    
Restructuring [1] $ 2.1 $ 6.6
Other 0.2 1.1
Restructuring and other costs $ 2.3 $ 7.7
[1] The Cumulative and Total Expected columns each exclude approximately $81 million for aggregate Paper segment, Land and Development segment and Distribution segment restructuring charges that were incurred in prior periods since the table includes no current year or prior year period activity for those segments.
v3.22.0.1
Restructuring and Other Costs - Schedule of Restructuring Charges Related to Active Restructuring Initiatives (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost [1] $ 2.1 $ 6.6
Restructuring and Related Cost, Cost Incurred to Date [1] 156.1  
Restructuring and Related Cost, Expected Cost [1] 158.6  
Net Property, Plant and Equipment [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost [1] 0.9 0.2
Restructuring and Related Cost, Cost Incurred to Date [1] 16.6  
Restructuring and Related Cost, Expected Cost [1] 16.6  
Severance and Other Employee Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost [1] 1.4 4.4
Restructuring and Related Cost, Cost Incurred to Date [1] 119.8  
Restructuring and Related Cost, Expected Cost [1] 120.2  
Other Restructuring Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost [1] (0.2) 2.0
Restructuring and Related Cost, Cost Incurred to Date [1] 19.7  
Restructuring and Related Cost, Expected Cost [1] 21.8  
Corporate, Non-Segment [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost 0.4 1.7
Restructuring and Related Cost, Cost Incurred to Date 67.9  
Restructuring and Related Cost, Expected Cost 67.9  
Corporate, Non-Segment [Member] | Net Property, Plant and Equipment [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost 0.9  
Restructuring and Related Cost, Cost Incurred to Date 9.7  
Restructuring and Related Cost, Expected Cost 9.7  
Corporate, Non-Segment [Member] | Severance and Other Employee Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost   1.6
Restructuring and Related Cost, Cost Incurred to Date 59.5  
Restructuring and Related Cost, Expected Cost 59.5  
Corporate, Non-Segment [Member] | Other Restructuring Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost (0.5) 0.1
Restructuring and Related Cost, Cost Incurred to Date (1.3)  
Restructuring and Related Cost, Expected Cost (1.3)  
Corrugated Packaging [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost (0.1) 0.2
Restructuring and Related Cost, Cost Incurred to Date 42.4  
Restructuring and Related Cost, Expected Cost 44.9  
Corrugated Packaging [Member] | Net Property, Plant and Equipment [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Cost Incurred to Date 3.6  
Restructuring and Related Cost, Expected Cost 3.6  
Corrugated Packaging [Member] | Severance and Other Employee Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost (0.4) (0.7)
Restructuring and Related Cost, Cost Incurred to Date 28.3  
Restructuring and Related Cost, Expected Cost 28.7  
Corrugated Packaging [Member] | Other Restructuring Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost 0.3 0.9
Restructuring and Related Cost, Cost Incurred to Date 10.5  
Restructuring and Related Cost, Expected Cost 12.6  
Consumer Packaging [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost 1.8 4.7
Restructuring and Related Cost, Cost Incurred to Date 45.8  
Restructuring and Related Cost, Expected Cost 45.8  
Consumer Packaging [Member] | Net Property, Plant and Equipment [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost   0.2
Restructuring and Related Cost, Cost Incurred to Date 3.3  
Restructuring and Related Cost, Expected Cost 3.3  
Consumer Packaging [Member] | Severance and Other Employee Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost 1.8 3.5
Restructuring and Related Cost, Cost Incurred to Date 32.0  
Restructuring and Related Cost, Expected Cost 32.0  
Consumer Packaging [Member] | Other Restructuring Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost   $ 1.0
Restructuring and Related Cost, Cost Incurred to Date 10.5  
Restructuring and Related Cost, Expected Cost $ 10.5  
[1] The Cumulative and Total Expected columns each exclude approximately $81 million for aggregate Paper segment, Land and Development segment and Distribution segment restructuring charges that were incurred in prior periods since the table includes no current year or prior year period activity for those segments.
v3.22.0.1
Restructuring and Other Costs - Schedule of Restructuring Charges Related to Active Restructuring Initiatives (Parenthetical) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Restructuring Cost and Reserve [Line Items]  
Restructuring and Related Cost, Cost Incurred to Date $ 156.1 [1]
Restructuring and Related Cost, Expected Cost 158.6 [1]
Paper, Land and Development, Distribution [Member]  
Restructuring Cost and Reserve [Line Items]  
Restructuring and Related Cost, Cost Incurred to Date 81.0
Restructuring and Related Cost, Expected Cost $ 81.0
[1] The Cumulative and Total Expected columns each exclude approximately $81 million for aggregate Paper segment, Land and Development segment and Distribution segment restructuring charges that were incurred in prior periods since the table includes no current year or prior year period activity for those segments.
v3.22.0.1
Restructuring and Other Costs - Schedule of Acquisition and Integration Costs (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Restructuring Cost And Reserve [Line Items]    
Acquisition costs $ 0.2 $ 0.2
Integration costs   0.9
Other total 0.2 1.1
Other Segments [Member]    
Restructuring Cost And Reserve [Line Items]    
Acquisition costs 0.2 0.2
Integration costs   0.9
Other total $ 0.2 $ 1.1
v3.22.0.1
Restructuring and Other Costs - Schedule of Changes in Restructuring Accrual Charges (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Restructuring And Other Costs [Abstract]    
Accrual at beginning of fiscal year $ 13.4 $ 17.2
Additional accruals 1.8 5.4
Payments (1.9) (7.0)
Adjustment to accruals (0.4) (1.1)
Foreign currency rate changes and other (0.2) 0.1
Accrual at December 31 $ 12.7 $ 14.6
v3.22.0.1
Restructuring and Other Costs - Schedule of Reconciliation of Accruals and Charges (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Restructuring And Other Costs [Abstract]    
Additional accruals and adjustments to accruals (see table above) $ 1.4 $ 4.3
Acquisition costs 0.2 0.2
Integration costs   0.9
Net property, plant and equipment costs 0.9 0.2
Severance and other employee costs   0.1
Other restructuring costs (0.2) 2.0
Restructuring and other costs $ 2.3 $ 7.7
v3.22.0.1
Retirement Plans - Additional Information (Details)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Oct. 31, 2019
USD ($)
Letter
Sep. 30, 2019
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2021
USD ($)
Apr. 30, 2020
USD ($)
Feb. 29, 2020
USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]                
Multiemployer Plans, Withdrawal Obligation     $ 248.1     $ 247.1    
Pace Industry Union Management Pension Fund [Member]                
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]                
Withdrawal obligation, per month   $ 0.7     $ 0.7      
Periods of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal   20 years     20 years      
Withdrawal obligation accumulated funding deficiency               $ 51.2
Multiemployer Plans, Withdrawal Obligation   $ 170.3     $ 170.3      
Pace Industry Union Management Pension Fund [Member] | Subsidiary [Member]                
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]                
Periods of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal 20 years              
Withdrawal obligation accumulated funding deficiency $ 2.0           $ 1.3  
Multiemployer Plans, Withdrawal Obligation $ 2.3              
Number of additional demand letters | Letter 2              
Pension Plan [Member]                
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]                
Contributions by employer to pension and supplemental retirement plans     4.1 $ 5.6        
Other Postretirement Benefits Plan [Member]                
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]                
Contributions by employer to pension and supplemental retirement plans     $ 1.2 $ 1.3        
v3.22.0.1
Retirement Plans - Summary of Components of Net Pension Income and Summary of Components of Postretirement Benefit Cost (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Pension Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Service cost $ 12.5 $ 13.5
Interest cost 47.4 46.4
Expected return on plan assets (92.5) (91.7)
Amortization of net actuarial loss (gain) 2.2 7.9
Amortization of prior service cost (credit) 2.1 2.0
Company defined benefit plan income (28.3) (21.9)
Multiemployer and other plans 0.3 0.4
Net pension (income) cost (28.0) (21.5)
Other Postretirement Benefits Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 0.3 0.3
Interest cost 1.5 1.4
Amortization of net actuarial loss (gain) (0.4) (0.3)
Amortization of prior service cost (credit) (0.2) (0.6)
Net pension (income) cost $ 1.2 $ 0.8
v3.22.0.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]    
Effective tax rates 24.20% 24.80%
Income taxes, cash paid net $ 9.9 $ 18.8
v3.22.0.1
Segment Information - Certain Operating Data for Segments (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Sep. 30, 2021
Segment Reporting Information [Line Items]      
Net sales $ 4,952.2 $ 4,401.5  
Adjusted EBITDA 697.1 691.0  
Depreciation, depletion and amortization (366.5) (364.5)  
Gain on sale of certain closed facilities 14.4 0.9  
Multiemployer pension withdrawal income 3.3    
Restructuring and other costs (2.3) (7.7)  
Interest expense, net (86.7) (93.8)  
Loss on extinguishment of debt   (1.1)  
Other income, net 0.2 20.8  
Other adjustments (0.3) (21.6)  
Income before income taxes 242.4 202.8  
Depreciation, depletion and amortization 366.5 364.5  
Other adjustments 0.3 21.6  
Assets 29,082.5   $ 29,254.3
Intangibles, net 3,236.8   3,318.8
Equity method investments 449.1   453.3
Capital expenditures 173.1 170.7  
Assets Held for Sale [Member]      
Segment Reporting Information [Line Items]      
Assets 4.2   10.9
Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 5,036.1 4,476.7  
Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net sales (83.9) (75.2)  
Corporate, Non-Segment [Member]      
Segment Reporting Information [Line Items]      
Non-allocated expenses (16.8) (21.2)  
Interest expense, net (86.7) (93.8)  
Corrugated Packaging [Member]      
Segment Reporting Information [Line Items]      
Net sales 2,220.0 2,019.5  
Depreciation, depletion and amortization 167.0 175.6  
Other adjustments   9.5  
Assets 11,536.3   11,526.0
Intangibles, net 736.4   765.9
Equity method investments 447.5   434.4
Capital expenditures 75.7 69.2  
Corrugated Packaging [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 2,220.0 2,019.5  
Adjusted EBITDA 288.9 347.6  
Corrugated Packaging [Member] | Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net sales (74.2) (71.1)  
Corrugated Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 2,145.8 1,948.4  
Consumer Packaging [Member]      
Segment Reporting Information [Line Items]      
Net sales 1,138.7 1,062.5  
Depreciation, depletion and amortization 86.3 85.8  
Other adjustments 0.2 8.9  
Assets 6,755.0   6,750.5
Intangibles, net 1,688.0   1,719.2
Equity method investments 0.4   17.7
Capital expenditures 37.3 43.4  
Consumer Packaging [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 1,138.7 1,062.5  
Adjusted EBITDA 169.3 175.3  
Consumer Packaging [Member] | Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net sales (6.0) (3.9)  
Consumer Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 1,132.7 1,058.6  
Paper [Member]      
Segment Reporting Information [Line Items]      
Net sales 1,352.6 1,090.9  
Depreciation, depletion and amortization 106.2 96.5  
Other adjustments 0.1 1.8  
Assets 7,509.5   7,525.7
Intangibles, net 661.4   677.7
Equity method investments 0.8   0.8
Capital expenditures 51.5 51.6  
Paper [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 1,352.6 1,090.9  
Adjusted EBITDA 232.4 151.7  
Paper [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 1,352.6 1,090.9  
Distribution [Member]      
Segment Reporting Information [Line Items]      
Net sales 324.8 303.8  
Depreciation, depletion and amortization 5.8 5.8  
Other adjustments   0.6  
Assets 754.0   796.2
Intangibles, net 151.0   156.0
Capital expenditures 0.8 0.1  
Distribution [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 324.8 303.8  
Adjusted EBITDA 6.5 16.4  
Distribution [Member] | Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net sales (3.7) (0.2)  
Distribution [Member] | Unaffiliated Customers [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Net sales 321.1 303.6  
Corporate Segment [Member]      
Segment Reporting Information [Line Items]      
Depreciation, depletion and amortization 1.2 0.8  
Other adjustments   0.8  
Assets 2,523.5   2,645.0
Equity method investments 0.4   $ 0.4
Capital expenditures $ 7.8 $ 6.4  
v3.22.0.1
Segment Information - Changes in Carrying Amount of Goodwill (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2021
USD ($)
Goodwill [Line Items]  
Balance at beginning of period $ 5,959.2
Goodwill acquired 3.2
Translation adjustments (7.0)
Balance at end of period 5,955.4
Legacy Reportable Corrugated Packaging Segment [Member]  
Goodwill [Line Items]  
Balance at beginning of period 3,663.3
Segment recasting (3,663.3) [1]
Legacy Reportable Consumer Packaging Segment [Member]  
Goodwill [Line Items]  
Balance at beginning of period 2,295.9
Segment recasting (2,295.9) [1]
New Reportable Corrugated Packaging Segment [Member]  
Goodwill [Line Items]  
Segment recasting 2,834.8 [1]
Goodwill acquired 3.2
Translation adjustments (6.6)
Balance at end of period 2,831.4
New Reportable Consumer Packaging Segment [Member]  
Goodwill [Line Items]  
Segment recasting 1,603.3 [1]
Translation adjustments 1.3
Balance at end of period 1,604.6
New Reportable Paper Segment [Member]  
Goodwill [Line Items]  
Segment recasting 1,382.0 [1]
Translation adjustments (1.6)
Balance at end of period 1,380.4
New Reportable Distribution Segment [Member]  
Goodwill [Line Items]  
Segment recasting 139.1 [1]
Translation adjustments (0.1)
Balance at end of period $ 139.0
[1] Represents reallocation of goodwill as a result of changes in segments on October 1, 2021.
v3.22.0.1
Segment Information - Additional Information (Details) - Segment
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Segment Reporting Information [Line Items]    
Number of reportable segments 4 2
Reporting unit, percentage of fair value in excess of carrying value 10.00%  
Increase in discount rate to estimate fair value of reporting unit 1.00%  
Minimum [Member]    
Segment Reporting Information [Line Items]    
Reporting unit, discount rate 8.00%  
Reporting unit, growth rate 0.00%  
Maximum [Member]    
Segment Reporting Information [Line Items]    
Reporting unit, discount rate 11.50%  
Reporting unit, growth rate 1.00%  
v3.22.0.1
Interest Expense, Net - Summary of Components of Interest Expense, Net (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Interest Income (Expense), Net [Abstract]    
Interest expense $ (98.3) $ (105.5)
Interest income 11.6 11.7
Interest expense, net $ (86.7) $ (93.8)
v3.22.0.1
Interest Expense, Net - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Interest Income (Expense), Net [Abstract]    
Interest, net of amounts capitalized $ 56.8 $ 58.9
v3.22.0.1
Inventories - Schedule of Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Sep. 30, 2021
Inventories [Abstract]    
Finished goods and work in process $ 1,042.2 $ 972.7
Raw materials 982.1 888.1
Spare parts and supplies 506.4 536.4
Inventories at FIFO cost 2,530.7 2,397.2
LIFO reserve (289.4) (223.9)
Net inventories $ 2,241.3 $ 2,173.3
v3.22.0.1
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Sep. 30, 2021
Property, plant and equipment at cost:    
Property, plant and equipment, at cost $ 18,879.3 $ 18,719.1
Less: accumulated depreciation, depletion and amortization (8,397.2) (8,149.0)
Property, plant and equipment, net 10,482.1 10,570.1
Land and Buildings [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 2,638.0 2,626.0
Machinery and Equipment [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 16,003.0 15,853.1
Forestlands and Mineral Rights [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 118.3 120.0
Transportation Equipment [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost 25.8 26.1
Leasehold Improvements [Member]    
Property, plant and equipment at cost:    
Property, plant and equipment, at cost $ 94.2 $ 93.9
v3.22.0.1
Property, Plant and Equipment - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Sep. 30, 2021
Property, Plant and Equipment [Abstract]    
Non-cash additions to property, plant and equipment (in accounts payable) $ 101.9 $ 108.5
v3.22.0.1
Fair Value - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 02, 2021
Dec. 01, 2021
Sep. 30, 2021
Aug. 31, 2021
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]            
Maximum eligible receivables that may be sold     $ 110.0 $ 88.5   $ 700.0
Receivables sold under accounts receivable sales agreement $ 688.6       $ 665.9  
Estimated loss on sale of accounts receivable by quarter $ 2.2 $ 3.0        
v3.22.0.1
Fair Value - Summary of Accounts Receivable Sales Agreement (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Fair Value Disclosures [Abstract]    
Receivables sold to the financial institutions and derecognized $ (721.8) $ (680.7)
Receivables collected by financial institutions 699.2 644.5
Cash proceeds from financial institutions $ 22.6 $ 36.2
v3.22.0.1
Debt - Schedule of Carrying Value of Individual Components of Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Sep. 30, 2021
Debt Instrument [Line Items]    
Total debt $ 8,233.2 $ 8,194.1
Less: current portion of debt 236.8 168.8
Long-term debt due after one year 7,996.4 8,025.3
Notes Due Fiscal 2023 to 2028 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt 3,779.4 3,778.2
Notes Due Fiscal 2029 to 2033 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt 2,763.3 2,766.5
Notes Due Fiscal 2037 to 2047 [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt 178.1 178.2
Term Loan Facilities [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt 599.0 598.9
Revolving Credit and Swing Facilities [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt 336.1 270.0
Finance Lease Obligations [Member] | Secured Debt [Member]    
Debt Instrument [Line Items]    
Total debt 261.5 264.1
Vendor Financing and Commercial Card Programs [Member] | Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt 115.8 113.1
International and Other Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 200.0 $ 225.1
v3.22.0.1
Debt - Additional Information (Details)
Mar. 12, 2021
USD ($)
Feb. 26, 2021
EUR (€)
Nov. 21, 2019
USD ($)
Sep. 27, 2019
USD ($)
Dec. 31, 2021
USD ($)
Dec. 01, 2021
EUR (€)
Sep. 30, 2021
USD ($)
Jul. 01, 2015
USD ($)
Debt Instrument [Line Items]                
Fair value of debt         $ 9,000,000,000.0   $ 9,000,000,000.0  
Revolving Credit Facility [Member] | Unsecured Debt [Member]                
Debt Instrument [Line Items]                
Credit Facility, maximum borrowing capacity     $ 2,300,000,000         $ 2,000,000,000.0
Credit facility, maturity date     Nov. 21, 2024          
Long-term debt         0   0  
Farm Credit Facility [Member] | Unsecured Debt [Member]                
Debt Instrument [Line Items]                
Credit Facility, maximum borrowing capacity       $ 600,000,000.0        
Long-term debt         599,000,000.0   598,900,000  
Debt Instrument, Term, in Years       7 years        
Receivables Securitization Facility [Member] | Secured Debt [Member]                
Debt Instrument [Line Items]                
Long-term debt         0   0  
Receivables backed financing, maximum borrowing amount $ 700,000,000.0              
Debt instrument, amended maturity date Mar. 11, 2024              
Debt instrument, maximum borrowing capacity, amount         642,500,000   690,300,000  
Loans and Leases Receivable, Collateral for Secured Borrowings         1,240,200,000   1,318,400,000  
Receivables Securitization Facility [Member] | Secured Debt [Member] | LIBOR [Member]                
Debt Instrument [Line Items]                
Variable rate basis one-month LIBOR              
Cooperatieve Rabobank U.A., New York Branch European Revolving Credit Facility [Member] | Unsecured Debt [Member]                
Debt Instrument [Line Items]                
Credit Facility, maximum borrowing capacity | €           € 600,000,000.0    
Credit facility, maturity date   Feb. 26, 2024            
Long-term debt         270,000,000.0   $ 270,000,000.0  
Debt instrument, maturity period   3 years            
Incremental line of credit | €           € 100,000,000.0    
Line of credit facility, maximum Euro denominated borrowing capacity | €   € 600,000,000.0            
Cooperatieve Rabobank U.A., New York Branch European Revolving Credit Facility [Member] | Unsecured Debt [Member] | Foreign Exchange Contract [Member]                
Debt Instrument [Line Items]                
Amount of foreign exchange contracts         $ 270,200,000      
Maximum [Member] | Revolving Credit Facility [Member] | Unsecured Debt [Member]                
Debt Instrument [Line Items]                
Credit facility, maximum permitted debt to capitalization ratio     0.65          
Maximum [Member] | Farm Credit Facility [Member] | Unsecured Debt [Member]                
Debt Instrument [Line Items]                
Credit facility, amount of potential increase to the principal amount       $ 300,000,000.0        
v3.22.0.1
Leases - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Total lease cost, net $ 70.3 $ 80.9
ROU asset obtained in exchange for operating lease liability $ 24.8 $ 67.5
v3.22.0.1
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Sep. 30, 2021
Supplementary Information Balance Sheets [Abstract]    
Operating lease right-of-use asset $ 666.1 $ 676.0
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Other assets Other assets
Current operating lease liabilities $ 179.6 $ 177.9
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Other current liabilities Other current liabilities
Operating lease liabilities $ 526.7 $ 537.9
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other long-term liabilities Other long-term liabilities
Total operating lease liabilities $ 706.3 $ 715.8
Property, plant and equipment 143.1 143.2
Accumulated depreciation (30.3) (28.3)
Property, plant and equipment, net 112.8 114.9
Current finance lease liabilities $ 8.6 $ 8.7
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] Current portion of debt Current portion of debt
Noncurrent finance lease liabilities $ 252.9 $ 255.4
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Long-term debt due after one year Long-term debt due after one year
Total finance lease liabilities $ 261.5 $ 264.1
v3.22.0.1
Commitments and Contingencies - Additional Information (Details)
R$ in Millions
 3 Months Ended
Dec. 31, 2021
USD ($)
Lawsuit
Subsidiary
Dec. 31, 2021
BRL (R$)
Subsidiary
Apr. 30, 2020
USD ($)
Feb. 29, 2020
USD ($)
Oct. 31, 2019
USD ($)
Commitments and Contingencies [Line Items]          
Accrual for Environmental Loss Contingencies $ 4,700,000        
Guarantor Obligations, Current Carrying Value 2,300,000        
Maximum [Member]          
Commitments and Contingencies [Line Items]          
Guarantor Obligations, Estimated Exposure, Undiscounted 50,000,000        
Brazil Administrative Council of Tax Appeals [Member]          
Commitments and Contingencies [Line Items]          
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense $ 127,000,000 R$ 706      
Tax claim and conversion description The matter has proceeded through the Brazil Administrative Council of Tax Appeals (“CARF”) principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. The matter has proceeded through the Brazil Administrative Council of Tax Appeals (“CARF”) principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012.      
Income tax settlement claim liability $ 0        
Tax claim and conversion, tax 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      
Pace Industry Union Management Pension Fund [Member]          
Commitments and Contingencies [Line Items]          
Withdrawal obligation accumulated funding deficiency       $ 51,200,000  
Pace Industry Union Management Pension Fund [Member] | Subsidiary [Member]          
Commitments and Contingencies [Line Items]          
Withdrawal obligation accumulated funding deficiency     $ 1,300,000   $ 2,000,000.0
Asbestos Litigation [Member]          
Commitments and Contingencies [Line Items]          
Number of Lawsuits the Company Has Been Named a Defendant in Asbestos-related Personal Injury Litigation | Lawsuit 1,750        
Amount reserved for litigation $ 15,100,000        
Other Long Term Liabilities [Member]          
Commitments and Contingencies [Line Items]          
Accrual for Environmental Loss Contingencies 1,600,000        
Other Current Liabilities [Member]          
Commitments and Contingencies [Line Items]          
Accrual for Environmental Loss Contingencies $ 3,100,000        
v3.22.0.1
Equity and Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Sep. 30, 2021
Jul. 31, 2015
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]        
Stock repurchase program, number of shares authorized to be repurchased       40,000,000.0
Common Stock, Par or Stated Value Per Share $ 0.01   $ 0.01 $ 0.01
Authorized share repurchase as a percentage of common stock outstanding       15.00%
Stock repurchase program, remaining number of shares authorized to be repurchased 14,600,000      
Treasury stock, shares, acquired 2,100,000 0    
Purchases of common stock $ 97.5      
Minimum [Member]        
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]        
Effective Tax Rate, Net of Tax Components of Other Comprehensive Income 26.00% 25.00%    
Maximum [Member]        
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]        
Effective Tax Rate, Net of Tax Components of Other Comprehensive Income 27.00% 26.00%    
v3.22.0.1
Equity and Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Balance at beginning of period [1] $ (999.1) $ (1,319.9)
Other comprehensive (loss) income before reclassifications [1] (16.2) 196.5
Amounts reclassified from accumulated other comprehensive loss [1] 2.6 8.1
Net current period other comprehensive (loss) income [1] (13.6) 204.6
Balance at end of period [1] (1,012.7) (1,115.3)
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) (5.6)
Other comprehensive (loss) income before reclassifications   (0.1)
Amounts reclassified from accumulated other comprehensive loss   1.5
Net current period other comprehensive (loss) income   1.4
Balance at end of period (0.2) (4.2)
Accumulated Defined Benefit Plans Adjustment [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Balance at beginning of period (536.5) (727.7)
Amounts reclassified from accumulated other comprehensive loss 2.6 6.6
Net current period other comprehensive (loss) income 2.6 6.6
Balance at end of period (533.9) (721.1)
Accumulated Translation Adjustment [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Balance at beginning of period (462.4) (586.6)
Other comprehensive (loss) income before reclassifications (16.2) 196.6
Net current period other comprehensive (loss) income (16.2) 196.6
Balance at end of period $ (478.6) $ (390.0)
[1] All amounts are net of tax and noncontrolling interests.
v3.22.0.1
Equity and Other Comprehensive Income (Loss) - Summary of Reclassification out of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]    
Amortization of net actuarial loss, Net of Tax $ 1.3 $ 5.6
Amortization of prior service costs, Net of Tax 1.4 1.1
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax   1.5
Parent [Member]    
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]    
Amortization of net actuarial loss, Pre-Tax Amount [1],[2] (1.6) (7.4)
Amortization of net actuarial loss, Tax [1],[2] 0.4 1.9
Amortization of net actuarial loss, Net of Tax [1],[2] (1.2) (5.5)
Amortization of prior service costs, Pre-Tax Amount [1],[2] (1.9) (1.5)
Amortization of prior service costs, Tax [1],[2] 0.5 0.4
Amortization of prior service costs, Net of Tax [1],[2] (1.4) (1.1)
Defined Benefit Plans, before Tax [1] (3.5) (8.9)
Defined Benefit Plans, Tax [1] 0.9 2.3
Defined Benefit Plans, Net of Tax [1] (2.6) (6.6)
Total Reclassifications From Other Comprehensive Income Before Tax [1] (3.5) (10.9)
Total Reclassifications From Other Comprehensive Income Tax Portion [1] 0.9 2.8
Total Reclassifications From Other Comprehensive Income Net of Tax [1] $ (2.6) (8.1)
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],[3]   (2.0)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax [1],[3]   0.5
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax [1],[3]   $ (1.5)
[1] Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded.
[2] Included in the computation of net periodic pension cost. See “Note 4. Retirement Plans” for additional details.
[3] These accumulated other comprehensive income components are included in Interest expense, net.
v3.22.0.1
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share [Abstract]    
Net income attributable to common stockholders $ 182.3 $ 152.0
Basic weighted average shares outstanding 264.6 262.7
Effect of dilutive stock options and non- participating securities 2.3 2.1
Diluted weighted average shares outstanding 266.9 264.8
Basic earnings per share attributable to common stockholders $ 0.69 $ 0.58
Diluted earnings per share attributable to common stockholders $ 0.68 $ 0.57
v3.22.0.1
Earnings Per Share - Additional Information (Details) - shares
shares in Millions
 3 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share [Abstract]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 0.4 0.6