Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Jan. 25, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | WRK | |
Entity Registrant Name | WestRock CO | |
Entity Central Index Key | 1,732,845 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 255,372,759 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 4,327.4 | $ 3,894 |
Cost of goods sold | 3,545.6 | 3,120.5 |
Selling, general and administrative, excluding intangible amortization | 400.9 | 380.8 |
Selling, general and administrative intangible amortization | 92.9 | 72.5 |
(Gain) loss on disposal of assets | (43.8) | 1.1 |
Multiemployer pension withdrawals | 180 | |
Land and Development impairments | 27.6 | |
Restructuring and other costs | 54.4 | 16.3 |
Operating profit (loss) | 277.4 | 95.2 |
Interest expense, net | (94.4) | (64.8) |
Loss on extinguishment of debt | (1.9) | (1) |
Pension and other postretirement non-service income | 17.3 | 24.6 |
Other (expense) income, net | (2.7) | 2.5 |
Equity in income of unconsolidated entities | 6.8 | 3.8 |
Income before income taxes | 202.5 | 60.3 |
Income tax (expense) benefit | (62.7) | 1,073.2 |
Consolidated net income | 139.8 | 1,133.5 |
Less: Net (income) loss attributable to noncontrolling interests | (0.7) | 1.6 |
Net income attributable to common stockholders | $ 139.1 | $ 1,135.1 |
Basic earnings per share attributable to common stockholders | $ 0.55 | $ 4.45 |
Diluted earnings per share attributable to common stockholders | $ 0.54 | $ 4.38 |
Basic weighted average shares outstanding | 254.8 | 255 |
Diluted weighted average shares outstanding | 259.5 | 259.2 |
Cash dividends paid per common share | $ 0.455 | $ 0.43 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Consolidated net income | $ 139.8 | $ 1,133.5 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation loss | (64.9) | (41.9) |
Derivatives: | ||
Deferred loss on cash flow hedges | 0 | (0.1) |
Reclassification adjustment of net loss on cash flow hedges included in earnings | 0 | 0.5 |
Unrealized gain on available for sale security | 0 | 0.8 |
Defined benefit pension and other postretirement benefit plans: | ||
Amortization and settlement recognition of net actuarial loss, included in pension cost | 4.9 | 3.3 |
Prior service cost arising during the period | 0 | (2.7) |
Amortization and settlement recognition of prior service cost, included in pension cost | 0.5 | 0 |
Other comprehensive loss, net of tax | (59.5) | (40.1) |
Comprehensive income | 80.3 | 1,093.4 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (0.7) | 1.4 |
Comprehensive income attributable to common stockholders | $ 79.6 | $ 1,094.8 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 260.7 | $ 636.8 | |
Accounts receivable (net of allowances of $47.9 and $49.7) | 2,315.5 | 2,010.7 | |
Inventories | 2,101.8 | 1,829.6 | |
Other current assets | 508.9 | 248.5 | |
Assets held for sale | 39.1 | 59.5 | |
Total current assets | 5,226 | 4,785.1 | |
Property, plant and equipment, net | 10,969.7 | 9,082.5 | |
Goodwill | 7,320.3 | 5,577.6 | |
Intangibles, net | 4,352 | 3,122 | |
Restricted assets held by special purpose entities | 1,279.4 | 1,281 | |
Prepaid pension asset | 428.4 | 420 | |
Other assets | 1,091.1 | 1,092.3 | |
Total Assets | 30,666.9 | 25,360.5 | |
Current liabilities: | |||
Current portion of debt | 1,092.8 | 740.7 | |
Accounts payable | 1,679.5 | 1,716.8 | |
Accrued compensation and benefits | 365.2 | 399.3 | |
Other current liabilities | 592.4 | 476.5 | |
Total current liabilities | 3,729.9 | 3,333.3 | |
Long-term debt due after one year | 9,728 | 5,674.5 | |
Pension liabilities, net of current portion | 253.3 | 261.3 | |
Postretirement benefit liabilities, net of current portion | 139 | 134.8 | |
Non-recourse liabilities held by special purpose entities | 1,151.6 | 1,153.7 | |
Deferred income taxes | 2,932.6 | 2,321.5 | |
Other long-term liabilities | 1,113.2 | 994.8 | |
Commitments and contingencies (Note 14) | |||
Redeemable noncontrolling interests | 3.8 | 4.2 | |
Equity: | |||
Preferred stock, $0.01 par value; 30.0 million shares authorized; no shares outstanding | 0 | 0 | |
Common Stock, $0.01 par value; 600.0 million shares authorized; 255.2 million and 253.5 million shares outstanding at December 31, 2018 and September 30, 2018, respectively | 2.6 | 2.5 | |
Capital in excess of par value | 10,720.6 | 10,588.9 | |
Retained earnings | 1,635.3 | 1,573.3 | |
Accumulated other comprehensive loss | [1] | (754.8) | (695.3) |
Total stockholders’ equity | 11,603.7 | 11,469.4 | |
Noncontrolling interests | 11.8 | 13 | |
Total equity | 11,615.5 | 11,482.4 | |
Total Liabilities and Equity | $ 30,666.9 | $ 25,360.5 | |
[1] | All amounts are net of tax and noncontrolling interests. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 47.9 | $ 49.7 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 600,000,000 | 600,000,000 |
Common Stock, Shares, Outstanding | 255,200,000 | 253,500,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | AOCI Attributable to Parent | Noncontrolling Interests [Member] | |||||
Beginning balance at Sep. 30, 2017 | 254,500,000 | ||||||||||
Issuance of common stock, net of stock received for minimum tax withholdings | [1] | 400,000 | |||||||||
Purchases of common stock | 0 | ||||||||||
Ending balance at Dec. 31, 2017 | 254,900,000 | ||||||||||
Beginning balance at Sep. 30, 2017 | $ 2.5 | $ 10,624.9 | $ 172.4 | $ (457.3) | $ 43.6 | [2] | |||||
Net income (loss) | $ 1.6 | (1.1) | [2] | ||||||||
Distributions and adjustments to noncontrolling interests | [2] | (2.3) | |||||||||
Net income attributable to common stockholders | 1,135.1 | ||||||||||
Dividends declared (per share - $0.455 and $0.43) | [3] | (110.7) | |||||||||
Compensation expense under share-based plans | 14.3 | ||||||||||
Issuance of common stock, net of stock received for minimum tax withholdings | [1] | 12.5 | |||||||||
Other comprehensive loss, net of tax | (40.3) | [4] | (40.3) | ||||||||
Ending balance at Dec. 31, 2017 | 11,393.6 | $ 2.5 | 10,651.7 | 1,196.8 | (497.6) | 40.2 | [2] | ||||
Total Stockholders’ equity at Dec. 31, 2017 | $ 11,353.4 | ||||||||||
Beginning balance at Sep. 30, 2018 | 253,500,000 | 253,500,000 | |||||||||
Shares issued under restricted stock plan | 300,000 | ||||||||||
Issuance of common stock, net of stock received for minimum tax withholdings | [1] | 2,400,000 | |||||||||
Purchases of common stock | (1,000,000) | (1,000,000) | |||||||||
Ending balance at Dec. 31, 2018 | 255,200,000 | 255,200,000 | |||||||||
Beginning balance at Sep. 30, 2018 | $ 11,482.4 | $ 2.5 | 10,588.9 | 1,573.3 | (695.3) | 13 | [2] | ||||
Net income (loss) | (0.7) | 0.3 | [2] | ||||||||
Contributions | [2] | 0.2 | |||||||||
Distributions and adjustments to noncontrolling interests | [2] | (1.7) | |||||||||
Adoption of revenue from contracts with customers standard | 43.5 | ||||||||||
Net income attributable to common stockholders | 139.1 | ||||||||||
Dividends declared (per share - $0.455 and $0.43) | [3] | (117.8) | |||||||||
Compensation expense under share-based plans | 17.9 | ||||||||||
Issuance of common stock, net of stock received for minimum tax withholdings | 0.1 | [1] | 84.8 | [1] | (0.4) | ||||||
Fair value of share-based awards issued in business combinations | 70.8 | ||||||||||
Purchases of common stock | (41.8) | (2.4) | |||||||||
Other comprehensive loss, net of tax | (59.5) | [4] | (59.5) | ||||||||
Ending balance at Dec. 31, 2018 | 11,615.5 | $ 2.6 | $ 10,720.6 | $ 1,635.3 | $ (754.8) | $ 11.8 | [2] | ||||
Total Stockholders’ equity at Dec. 31, 2018 | $ 11,603.7 | ||||||||||
[1] | Included in the issuance of common stock in the three months ended December 31, 2018 is the issuance of approximately 1.6 million shares of Common Stock (as hereinafter defined) valued at $70.1 million in connection with the KapStone Acquisition (as hereinafter defined). | ||||||||||
[2] | Excludes amounts related to contingently redeemable noncontrolling interests, which are separately classified outside of permanent equity in the Condensed Consolidated Balance Sheets. | ||||||||||
[3] | Includes cash dividends paid, dividend equivalent units on certain restricted stock awards and dividends declared but unpaid related to the shares reserved but unissued at the time of the acquisition for the resolution of Smurfit-Stone Container Corporation (“Smurfit-Stone”) bankruptcy claims. | ||||||||||
[4] | All amounts are net of tax and noncontrolling interests. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) shares in Millions, $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Cash dividends paid per share | $ / shares | $ 0.455 |
KapStone [Member] | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 1.6 |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ | $ 70.1 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | ||
Consolidated net income | $ 139.8 | $ 1,133.5 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 359.1 | 306.2 |
Cost of real estate sold | 11 | 7.6 |
Deferred income tax expense (benefit) | 14.3 | (1,234.6) |
Share-based compensation expense | 17.4 | 14.6 |
Pension and other postretirement funding (more) than expense (income) | (12.8) | (23.9) |
Multiemployer pension withdrawals | 180 | |
Land and Development impairments | 27.6 | |
Other impairment adjustments | 2.8 | 6.4 |
Gain on disposal of plant and equipment and other, net | (43.2) | |
Other | (18.3) | (23) |
Change in operating assets and liabilities, net of acquisitions and divestitures: | ||
Accounts receivable | 169.7 | (28.9) |
Inventories | (71.4) | (74) |
Other assets | (17.8) | 3.4 |
Accounts payable | (148.5) | (89.4) |
Income taxes | (11.5) | 118.2 |
Accrued liabilities and other | (87.5) | (78.3) |
Net cash provided by operating activities | 303.1 | 245.4 |
Investing activities: | ||
Capital expenditures | (322) | (214.1) |
Cash (paid) received related to business combinations, net of cash acquired | (3,342.9) | 3.4 |
Cash receipts on sold trade receivables | 116.6 | |
Investment in unconsolidated entities | (110.7) | |
Proceeds from sale of property, plant and equipment | 88 | 12.1 |
Proceeds from property, plant and equipment insurance settlement | 1.5 | |
Other | 4.1 | 0.6 |
Net cash used for investing activities | (3,572.8) | (190.6) |
Financing activities: | ||
Proceeds from issuance of notes | 1,498.5 | |
Additions to revolving credit facilities | 133.6 | 87.6 |
Additions to debt | 3,806.1 | 475.3 |
Repayments of debt | (2,847.9) | (1,050.6) |
Changes in commercial paper, net | 447.7 | 554.7 |
Other financing additions (repayments), net | 14.6 | (13.5) |
Issuances of common stock, net of related minimum tax withholdings | 12.9 | 11.4 |
Purchases of common stock | (44.2) | |
Cash dividends paid to stockholders | (116.1) | (109.6) |
Cash distributions paid to noncontrolling interests | (2.2) | (1.5) |
Other | (6.4) | 0.7 |
Net cash provided by (used for) financing activities | 2,896.6 | (45.5) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | (1) |
(Decrease) increase in cash, cash equivalents and restricted cash | (376.1) | 8.3 |
Cash, cash equivalents and restricted cash at beginning of period | 636.8 | 304 |
Cash, cash equivalents and restricted cash at end of period | 260.7 | 312.3 |
Supplemental disclosure of cash flow information: | ||
Income taxes, net of refunds | 55.8 | 41.8 |
Interest, net of amounts capitalized | $ 25 | $ 27.2 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Non-cash investing activities: | ||
Deferred purchase price of trade receivables sold | $ 110.8 | |
Fair value of assets acquired, including goodwill | $ 5,910.2 | |
Cash consideration for the purchase of businesses, net of cash acquired | (3,343.8) | |
Stock issued for the purchase of a business | (70.1) | |
Fair value of share-based awards issued in the purchase of a business | (70.8) | |
Deferred payments | 16.6 | |
Liabilities assumed | $ 2,442.1 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2018 | |
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 our accompanying interim financial statements. We derived the Condensed Consolidated Balance Sheet at September 30, 2018 from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018 (the “ Fiscal 2018 Form 10-K On October 1, 2018, we adopted Accounting Standards Update (“ ASU ASC Revenue from Contracts with Customers ASC 606 Note 2. Revenue Recognition We adopted ASU 2017-07, “ Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ” on October 1, 2018 on a retrospective basis. pon the adoption of this ASU, $24.6 million , which was previously reported in “Cost of goods sold” for $10.0 million and “S We adopted the provisions of ASU 2016-15 “ Classification of Certain Cash Receipts and Cash Payments We adopted the provisions of ASU 2016-18, “ Restricted Cash amounts shown on the condensed consolidated statements of cash flows. Due to the minimal amount of restricted cash on our condensed consolidated balance sheets, the impact was not material. We have condensed or omitted certain notes and other information from the interim financial statements presented in this report. Therefore, these interim financial statements should be read in conjunction with our Fiscal 2018 Form 10-K. The results for the three months ended December 31, 2018 are not necessarily indicative of results that may be expected for the full year. Significant Accounting Policies See “ Note 1. Description of Business and Summary of Significant Accounting Policies Recent Accounting Developments New Accounting Standards - Recently Adopted See “ Note 1. Description of Business and Summary of Significant Accounting Policies — New Accounting Standards - Recently Adopted New Accounting Standards - Recently Issued See “ Note 1. Description of Business and Summary of Significant Accounting Policies — New Accounting Standards - Recently Issued In October 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-18 “ Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606 Collaborative arrangements ASC 808 In October 2018, the FASB issued ASU 2018-17 “ Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities GAAP In August 2018, the FASB issued ASU 2018-15 “ Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-14 “ Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans In February 2018, the FASB issued ASU 2018-02, “ Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income U.S. Tax Act Income Statement – Reporting Comprehensive Income” In August 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In October 2018, the FASB issued ASU 2018-16, “Derivatives and Hedging: Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting ”, that adds the overnight index rate based on the Secured Overnight Financing Rate to the list of US benchmark interest rates in ASC 815 that are eligible to be hedged. In February 2016, the FASB issued ASU 2016-02 “ Leases”, Leases” Leases In December 2018, the FASB issued ASU 2018-20 “ Leases: Narrow-scope Improvements for Lessors ” to help lessors apply ASC 842, which allows lessors to make an accounting policy election not to evaluate sales taxes and other similar taxes collected from lessees, requires lessors to exclude from variable payments certain lessor costs paid directly by lessee to third parties on the lessor’s behalf and provides clarification on variable payments allocated to lease and non-lease components. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 2. Revenue Recognition We adopted ASC 606 and all related amendments on October 1, 2018 using the modified retrospective method. We recorded the transition adjustment to the opening balance of retained earnings to account for the cumulative effect of adopting ASC 606. Since we used the modified retrospective method, we have not restated comparative information, which continues to be reported under the accounting standard in effect for those periods. We manufacture certain customized products that (i) have no alternative use to us (since they are made to specific customer orders), and (ii) we believe that for certain customers we have a legally enforceable right to payment for performance completed to date on these products, including a reasonable profit. For manufactured products that meet these two criteria, we now recognize revenue “over time”. This results in (i) revenue recognition prior to the date of shipment or title transfer for these products and (ii) increases the contract asset (unbilled receivables) balance with a corresponding reduction in finished goods inventory on our balance sheet. Due to the recurring nature of our sales of these customized products, the impact of adopting ASC 606 is not expected to have a material impact on our condensed consolidated financial statements in future periods. The transition adjustment resulted in revenue acceleration of $183.7 million with a corresponding acceleration of cost of $133.4 million. Thus, the net increase to opening balance of retained earnings was $43.5 million (net of tax expense of $6.8 million) as of October 1, 2018 due to the cumulative impact of adopting the new revenue standard. The adoption of ASC 606 had the following impact on our condensed consolidated financial statements: Condensed Consolidated Statement of Income Three Months Ended December 31, 2018 (In millions) As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Net sales $ 4,327.4 $ 4,335.5 $ (8.1 ) Cost of goods sold $ 3,545.6 $ 3,554.6 $ (9.0 ) Income tax expense $ (62.7 ) $ (62.5 ) $ (0.2 ) Consolidated net income $ 139.8 $ 139.1 $ 0.7 Condensed Consolidated Balance Sheet December 31, 2018 (In millions) As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Inventories $ 2,101.8 $ 2,238.0 $ (136.2 ) Other current assets $ 508.9 $ 320.3 $ 188.6 Other current liabilities $ 592.4 $ 592.2 $ 0.2 Retained earnings $ 1,635.3 $ 1,591.1 $ 44.2 Condensed Consolidated Statement of Cash Flows Three Months Ended December 31, 2018 (In millions) As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Consolidated net income $ 139.8 $ 139.1 $ 0.7 Other assets $ (17.8 ) $ (25.9 ) $ 8.1 Inventories $ (71.4 ) $ (62.4 ) $ (9.0 ) Income taxes $ (11.5 ) $ (11.7 ) $ 0.2 Disaggregated Revenue ASC 606 requires that we disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table below disaggregates our revenue by geographical market and product type (segment). Three Months Ended December 31, 2018 (In millions) Corrugated Packaging Consumer Packaging Land and Development Intersegment Sales Total Primary Geographical Markets North America $ 2,606.5 $ 1,247.0 $ 13.9 $ (38.1 ) $ 3,829.3 South America 108.8 19.5 — — 128.3 Europe — 269.3 — — 269.3 Asia Pacific 18.5 83.0 — (1.0 ) 100.5 Total (1) $ 2,733.8 $ 1,618.8 $ 13.9 $ (39.1 ) $ 4,327.4 (1) Net sales are attributed to geographical markets based on the location of the seller. Revenue Contract Balances Contract assets are rights to consideration in exchange for goods that we have transferred to a customer when that right is conditional on something other than the passage of time. Contract assets are reduced when title and risk of loss passes to the customer. Contract liabilities represent obligations to transfer goods or services to a customer for which we have received consideration. Contract liabilities are reduced once control of the goods is transferred to the customer. The opening and closing balances of our contract assets and contract liabilities are as follows. Contract assets and contract liabilities are aggregated within Other current assets and Other current liabilities, respectively, on the condensed consolidated balance sheet. (In millions) Contract Assets (Short-Term) Contract Liabilities (Short-Term) Beginning balance - October 1, 2018 $ 183.7 $ 7.9 Impact of acquisition 13.0 — Ending balance - December 31, 2018 188.6 10.2 (Decrease) / increase $ (8.1 ) $ 2.3 Performance Obligations and Significant Judgments We primarily derive revenue from fixed consideration. Certain contracts may also include variable consideration, typically in the form of cash discounts and volume rebates. If a contract with a customer includes variable consideration, we estimate the expected cash discounts and other customer refunds based on historical experience. We concluded this method is consistent with the most likely amount method under ASC 606 and this method allows us to make the best estimate of the consideration we will be entitled to from customers. Contracts or purchase orders with customers could include a single type of product or multiple types/grades of products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contracts or purchase orders. Management has concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product. Practical Expedients and Exemptions As permitted by the standard, we elected to use certain practical expedients. We treat shipping and handling activities as fulfillment activities. We treat costs associated with obtaining new contracts as expenses when incurred if the amortization period of the asset we would recognize is one year or less. We do not record interest income when the difference in timing of control transfer and customer payment is one year or less. The election of these practical expedients results in accounting treatments that we believe are consistent with our historical accounting policies and, therefore, these elections and expedients do not have a material impact on comparability of our financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3. Acquisitions We account for acquisitions in accordance with ASC 805, “ Business Combinations Note 2. Mergers, Acquisitions and Investment KapStone Acquisition On November 2, 2018, pursuant to the Agreement and Plan of Merger (the “ Merger Agreement KapStone WestRock Merger KapStone Merger KapStone Acquisition Effective Time KapStone is a leading North American producer and distributor of containerboard, corrugated products and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft. KapStone also owns Victory Packaging, a packaging solutions distribution company with facilities in the U.S., Canada and Mexico. We have included the financial results of KapStone in our Corrugated Packaging segment since the date of the acquisition. Pursuant to the KapStone Acquisition, at the Effective Time (a) each issued and outstanding share of common stock, par value $0.01 per share, of WRKCo (“ WRKCo common stock Company common stock KapStone common stock $35.00 per share Cash Consideration 0.4981 Stock Consideration 25% Maximum Stock Amount The consideration for the KapStone Acquisition was $4.9 billion including debt assumed, a long-term financing obligation and an estimate of equity awards to be replaced with WestRock equity awards with identical terms. As a result, KapStone stockholders received in the aggregate approximately $3.3 billion in cash and WestRock common stock with a value of approximately $70.1 million, or approximately 0.6% of the issued and outstanding shares of WestRock common stock immediately following the Effective Time. Pursuant to the Merger Agreement, at the Effective Time, the Company assumed any outstanding awards granted under the equity-based incentive plans of WRKCo and KapStone (including the shares underlying such awards), the award agreements evidencing the grants of such awards and, in the case of the WRKCo equity-based incentive plans, the remaining shares available for issuance under the applicable plan, in each case subject to adjustments to such awards in the manner set forth in the Merger Agreement. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. We are in the process of analyzing the estimated values of all assets acquired and liabilities assumed including, among other things, finalizing third-party valuations of certain tangible and intangible assets as well as the fair value of certain contracts and the determination of certain tax balances; therefore, the allocation of the purchase price is preliminary and subject to material revision. Opening balance effective November 2, 2018 (in millions): Cash and cash equivalents $ 8.6 Current assets, excluding cash and cash equivalents 878.9 Property, plant and equipment, net 1,910.3 Goodwill 1,755.0 Intangible assets 1,336.1 Other long-term assets 27.9 Total assets acquired 5,916.8 Current portion of debt 33.3 Current liabilities 337.5 Long-term debt due after one year 1,333.4 Accrued pension and other long-term benefits 9.8 Deferred income taxes 609.7 Other long-term liabilities 118.4 Total liabilities assumed 2,442.1 Net assets acquired $ 3,474.7 The fair value assigned to goodwill is primarily attributable to buyer-specific synergies expected to arise after the acquisition (e.g., enhanced geographic reach of the combined organization, increased vertical integration and other synergistic opportunities), the assembled work force of KapStone as well as due to establishing deferred tax liabilities for the assets and liabilities acquired. The goodwill and intangibles resulting from the acquisition will not be amortizable for tax purposes. The following table summarizes the weighted average life and the allocation to intangible assets recognized in the KapStone Acquisition, excluding goodwill (in millions): Weighted Avg. Life Gross Carrying Amount Customer relationships 11.6 $ 1,270.0 Trademarks and tradenames 17.0 56.9 Favorable contracts 5.9 9.2 Total 11.8 $ 1,336.1 None of the intangibles has significant residual value. The intangibles are expected to be amortized over estimated useful lives ranging from one to 20 years based on the approximate pattern in which the economic benefits are consumed or straight-line if the pattern was not reliably determinable. |
Restructuring and Other Costs
Restructuring and Other Costs | 3 Months Ended |
Dec. 31, 2018 | |
Restructuring And Other Costs [Abstract] | |
Restructuring and Other Costs | Note 4. Summary of Restructuring and Other Initiatives We recorded pre-tax restructuring and other costs of $54.4 million for the three months ended December 31, 2018 and $16.3 million for the three months ended December 31, 2017. These amounts are not comparable since the timing and scope of the individual actions associated with a restructuring, acquisition, divestiture or integration can vary. We present our restructuring and other costs in more detail below. The following table summarizes our Restructuring and other costs (in millions): Three Months Ended December 31, 2018 2017 Restructuring $ 25.7 $ 4.4 Other 28.7 11.9 Restructuring and other costs $ 54.4 $ 16.3 Restructuring Our restructuring charges are primarily associated with plant closures and employee costs due to merger and acquisition-related workforce reductions. When we close a facility, if necessary, we recognize a write-down to reduce the carrying value of equipment or other property to their estimated fair value less cost to sell, and record charges for severance and other employee-related costs. Any subsequent change in fair value less cost to sell prior to disposition is recognized as identified; however, no gain is recognized in excess of the cumulative loss previously recorded unless the actual selling price exceeds the original carrying value when sold. At the time of each announced closure, we generally expect to record future period costs for equipment relocation, facility carrying costs, costs to terminate a lease or contract before the end of its term and employee-related costs. Although specific circumstances vary, our strategy has generally been to consolidate our sales and operations into large well-equipped plants that operate at high utilization rates and take advantage of available capacity created by operational excellence initiatives and/or further optimize our system following mergers and acquisitions or a changing business environment. Therefore, we have transferred a substantial portion of each closed plant’s assets and production to our other plants. We believe these actions have allowed us to more effectively manage our business. Three Months Ended December 31, 2018 2017 Cumulative Total Expected Corrugated Packaging Net property, plant and equipment costs $ 3.1 $ 0.6 $ 198.3 $ 198.3 Severance and other employee costs 6.6 1.1 43.5 43.7 Equipment and inventory relocation costs 0.4 1.5 6.3 7.2 Facility carrying costs 1.1 0.8 29.4 31.7 Other costs — (0.3 ) 12.8 13.2 Restructuring total $ 11.2 $ 3.7 $ 290.3 $ 294.1 Consumer Packaging Net property, plant and equipment costs $ — $ 1.0 $ 40.9 $ 40.9 Severance and other employee costs (0.1 ) (1.9 ) 40.6 40.8 Equipment and inventory relocation costs 0.3 0.4 7.4 7.6 Facility carrying costs (0.2 ) 0.4 2.4 2.8 Other costs 0.5 (0.3 ) 22.9 22.9 Restructuring total $ 0.5 $ (0.4 ) $ 114.2 $ 115.0 Land and Development Net property, plant and equipment costs $ — $ — $ 1.8 $ 1.8 Severance and other employee costs (0.1 ) 0.4 13.7 13.7 Other costs — — 3.0 3.0 Restructuring total $ (0.1 ) $ 0.4 $ 18.5 $ 18.5 Corporate Net property, plant and equipment costs $ — $ — $ 1.4 $ 1.4 Severance and other employee costs 14.2 0.2 114.8 114.8 Other costs (0.1 ) 0.5 15.4 15.4 Restructuring total $ 14.1 $ 0.7 $ 131.6 $ 131.6 Total Net property, plant and equipment costs $ 3.1 $ 1.6 $ 242.4 $ 242.4 Severance and other employee costs 20.6 (0.2 ) 212.6 213.0 Equipment and inventory relocation costs 0.7 1.9 13.7 14.8 Facility carrying costs 0.9 1.2 31.8 34.5 Other costs 0.4 (0.1 ) 54.1 54.5 Restructuring total $ 25.7 $ 4.4 $ 554.6 $ 559.2 “ Net property, plant and equipment costs Note 4 Other Costs Our other costs consist of acquisition, divestiture and integration costs. We incur costs when we acquire or divest businesses. Acquisition costs include costs associated with transactions, whether consummated or not, such as advisory, legal, accounting 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. Divestiture costs consist primarily of similar professional fees. We consider acquisition, divestiture and integration costs to be Corporate costs regardless of the segment or segments involved in the transaction. The following table presents our acquisition, divestiture and integration costs (in millions): Three Months Ended December 31, 2018 2017 Acquisition costs $ 24.0 $ 1.9 Divestiture costs 0.1 0.3 Integration costs 4.6 9.7 Other total $ 28.7 $ 11.9 The following table summarizes the changes in the restructuring accrual, which are primarily composed of lease commitments, accrued severance and other employee costs, and a reconciliation of the restructuring accrual charges to the line item “ Restructuring and other costs Three Months Ended December 31, 2018 2017 Accrual at beginning of fiscal year $ 31.6 $ 47.4 Additional accruals 16.6 2.0 Payments (9.8 ) (8.6 ) Adjustment to accruals (1.9 ) (3.7 ) Foreign currency rate changes 0.2 (0.3 ) Accrual at December 31 $ 36.7 $ 36.8 Reconciliation of accruals and charges to restructuring and other costs (in millions): Three Months Ended December 31, 2018 2017 Additional accruals and adjustments to accruals (see table above) $ 14.7 $ (1.7 ) Acquisition costs 24.0 1.9 Integration costs 4.6 9.7 Divestiture costs 0.1 0.3 Net property, plant and equipment 3.1 1.6 Severance and other employee costs 5.8 0.4 Equipment and inventory relocation costs 0.7 1.9 Facility carrying costs 0.9 1.2 Other costs 0.5 1.0 Total restructuring and other costs $ 54.4 $ 16.3 |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 31, 2018 | |
Retirement Plans [Abstract] | |
Retirement Plans | Note 5. Retirement Plans We have defined benefit pension plans and other postretirement benefit plans for certain U.S. and non-U.S. employees. Certain plans were frozen for salaried and non-union hourly employees at various times in the past, although some employees meeting certain criteria are still accruing benefits. In addition, we participate in several multiemployer pension plans (“ MEPP MEPPs Note 4. Retirement Plans In connection with the KapStone Acquisition, the KapStone Paper and Packaging Corporation Defined Benefit Retirement Plan assigned the role of plan sponsor to WestRock. On December 31, 2018, WestRock merged the KapStone Paper and Packaging Corporation Defined Benefit Retirement Plan into the WestRock Company Consolidated Pension Plan. Upon the merger, the terms and provisions of the legacy KapStone plan were incorporated into the WestRock Company Consolidated Pension Plan. MEPPs In the normal course of business, we evaluate our potential exposure to MEPPs, including with respect to potential withdrawal liabilities. During the three months ended December 31, 2017, we submitted formal notification to withdraw from the Pace Industry Union-Management Pension Fund (“ PIUMPF See “ Note 4. Retirement Plans — Multiemployer Plans The following table presents a summary of the components of net pension (income) cost (in millions): Three Months Ended December 31, 2018 2017 Service cost $ 10.9 $ 11.6 Interest cost 56.5 50.9 Expected return on plan assets (82.9 ) (82.1 ) Amortization of net actuarial loss 7.0 4.6 Amortization of prior service cost 1.3 1.1 Company defined benefit plan income (7.2 ) (13.9 ) Multiemployer pension withdrawals — 180.0 Multiemployer and other plans 0.2 0.8 Net pension (income) cost $ (7.0 ) $ 166.9 During the three months ended December 31, 2018, we made contributions to our qualified and supplemental defined benefit pension plans of $4.0 million, and for the three months ended December 31, 2017, we made contributions of $8.5 million. The other postretirement benefit plans provide certain health care and life insurance benefits for certain salaried and hourly employees who meet specified age and service requirements as defined by the plans. The following table presents a summary of the components of the net postretirement cost (in millions): Three Months Ended December 31, 2018 2017 Service cost $ 0.3 $ 0.4 Interest cost 1.9 2.0 Amortization of net actuarial gain (0.4 ) — Amortization of prior service credit (0.7 ) (1.1 ) Net postretirement cost $ 1.1 $ 1.3 During the three months ended December 31, 2018, we funded an aggregate of $2.7 million, and for the three months ended December 31, 2017, we funded an aggregate of $2.8 million to our other postretirement benefit plans. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6. Income Taxes The effective tax rate for the three months ended December 31, 2018 was an expense of 31.0%. The effective tax rate for the three months ended December 31, 2018 was higher than the statutory federal rate primarily due to (i) the inclusion of state taxes, (ii) income derived from certain foreign jurisdictions subject to higher tax rates, (iii) the exclusion of tax benefits related to losses recorded by certain foreign operations, (iv) the inclusion of global intangible low-taxed provision income (“ GILTI FDII The effective tax rate for the three months ended December 31, 2017 was a benefit of 1,779.8%. It was lower than the statutory federal rate primarily due to (i) the initial provisional amount related to the enactment of the Tax Act (as defined below) and (ii) the domestic production deduction, partially offset by (iii) the inclusion of state taxes and (iv) the exclusion of tax benefits related to losses recorded by certain foreign operations. In December 2017, the SEC staff issued Staff Accounting Bulletin (“ SAB Note 5. Income Taxes The following table sets forth the changes in the reserve for uncertain tax positions during the three months ended December 31, 2018: Balance at beginning of fiscal year $ 127.1 Additions related to purchase accounting (1) 1.0 Additions for tax positions taken in current year (2) 100.2 Additions for tax positions taken in prior fiscal years 1.0 Additions for currency translation adjustments 0.8 Reductions as a result of a lapse of the applicable statute of limitations (0.7 ) Balance at December 31, 2018 $ 229.4 (1) Adjustment in fiscal 2019 relates to the KapStone Acquisition. (2) Additions for tax positions taken in current fiscal year includes primarily positions taken related to foreign subsidiaries. Beginning in fiscal 2019, the Tax Act imposed a provision for GILTI that is a tax on certain foreign subsidiaries’ earnings. We have elected to treat GILTI taxes as a current period expense, if and when incurred. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 7. We report our financial results of operations in the following three reportable segments: Corrugated Packaging, which consists of our containerboard mill, corrugated packaging and distribution operations, as well as our merchandising displays and recycling procurement operations; Consumer Packaging, which consists of our consumer mills, folding carton, beverage and partition operations; and Land and Development, which sells real estate primarily in the Charleston, SC region. Effective in the first quarter of fiscal 2019, we aligned our financial results for all periods presented move our merchandising displays operations from our Consumer Packaging segment to our Corrugated Packaging segment and to allocate certain previously non-allocated costs and certain pension and other postretirement non-service income to our reportable segments. The following table shows selected operating data for our segments (in millions): Three Months Ended December 31, 2018 2017 Net sales (aggregate): Corrugated Packaging $ 2,733.8 $ 2,319.7 Consumer Packaging 1,618.8 1,601.3 Land and Development 13.9 11.4 Total $ 4,366.5 $ 3,932.4 Less net sales (intersegment): Corrugated Packaging $ 18.0 $ 19.4 Consumer Packaging 21.1 19.0 Total $ 39.1 $ 38.4 Net sales (unaffiliated customers): Corrugated Packaging $ 2,715.8 $ 2,300.3 Consumer Packaging 1,597.7 1,582.3 Land and Development 13.9 11.4 Total $ 4,327.4 $ 3,894.0 Segment income: Corrugated Packaging $ 246.8 $ 269.9 Consumer Packaging 76.9 94.2 Land and Development 0.7 (0.7 ) Segment income 324.4 363.4 Gain on sale of certain closed facilities 50.5 — Multiemployer pension withdrawals — (180.0 ) Land and Development impairments — (27.6 ) Restructuring and other costs (54.4 ) (16.3 ) Non-allocated expenses (19.0 ) (15.9 ) Interest expense, net (94.4 ) (64.8 ) Loss on extinguishment of debt (1.9 ) (1.0 ) Other (expense) income, net (2.7 ) 2.5 Income before income taxes $ 202.5 $ 60.3 The following table shows selected operating data for our segments (in millions): December 31, 2018 September 30, 2018 Identifiable assets: Corrugated Packaging $ 16,438.7 $ 11,069.6 Consumer Packaging 11,437.5 11,511.1 Land and Development 47.6 49.1 Assets held for sale 39.1 59.5 Corporate 2,704.0 2,671.2 Total $ 30,666.9 $ 25,360.5 The changes in the carrying amount of goodwill during the three months ended December 31, 2018 is as follows (in millions): Corrugated Packaging Consumer Packaging Total Balance as of September 30, 2018 Goodwill $ 1,966.8 $ 3,653.6 $ 5,620.4 Accumulated impairment losses (0.1 ) (42.7 ) (42.8 ) 1,966.7 3,610.9 5,577.6 Goodwill acquired 1,755.0 — 1,755.0 Purchase price allocation adjustments 0.9 — 0.9 Translation adjustments 2.8 (16.0 ) (13.2 ) Balance as of December 31, 2018 Goodwill 3,725.5 3,637.6 7,363.1 Accumulated impairment losses (0.1 ) (42.7 ) (42.8 ) $ 3,725.4 $ 3,594.9 $ 7,320.3 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2018 | |
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 by last-in first-out (“ LIFO FIFO December 31, 2018 September 30, 2018 Finished goods and work in process $ 921.0 $ 867.0 Raw materials 862.7 730.0 Spare parts and supplies 463.7 368.2 Inventories at FIFO cost 2,247.4 1,965.2 LIFO reserve (145.6 ) (135.6 ) Net inventories $ 2,101.8 $ 1,829.6 |
Assets Held For Sale
Assets Held For Sale | 3 Months Ended |
Dec. 31, 2018 | |
Assets Held For Sale [Abstract] | |
Assets Held for Sale | Note 9. Assets Held For Sale Due to our accelerated monetization strategy, our Land and Development portfolio has met the held for sale criteria and is reflected as assets held for sale. Assets held for sale at December 31, 2018 and September 30, 2018 of $39.1 million and $59.5 million, respectively, include $22.0 million and $33.5 million, respectively of Land and Development portfolio. The remainder is primarily related to closed facilities. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 10. Property, Plant and Equipment The components of property, plant and equipment were as follows (in millions): December 31, 2018 September 30, 2018 Property, plant and equipment at cost: Land and buildings $ 2,349.5 $ 2,078.9 Machinery and equipment 13,889.7 12,064.0 Forestlands and mineral rights 162.8 158.0 Transportation equipment 30.6 30.1 Leasehold improvements 99.2 88.9 16,531.8 14,419.9 Less: accumulated depreciation, depletion and amortization (5,562.1 ) (5,337.4 ) Property, plant and equipment, net $ 10,969.7 $ 9,082.5 |
Fair Value
Fair Value | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 11. Fair Value Assets and Liabilities Measured or Disclosed at Fair Value We estimate fair values in accordance with ASC 820, “Fair Value Measurement Note 12. Fair Value Note 13. Debt Note 4. Retirement Plans 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 cost and equity method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. During the three months ended December 31, 2018 and 2017, we did not have any significant nonfinancial assets or nonfinancial liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition other than in the first quarter of fiscal 2018 when we recorded a $27.6 million pre-tax non-cash impairment of certain mineral rights and real estate. The $23.6 million impairment of mineral rights was driven by the non-renewal of a lease and associated with declining oil and gas prices, and the other $4.0 million was recorded to write-down the carrying value of real estate projects where the projected sales proceeds were less than the carrying value. Accounts Receivable Sales Agreement We had an agreement (the “ Prior A/R Sales Agreement On September 25, 2018, we entered into an agreement for the purchasing and servicing of receivables (the “ A/R Sales Agreement Transfers and Servicing The following table presents a summary of the activity under the A/R Sales Agreement and the Prior A/R Sales Agreement for the three months ended December 31, 2018 and December 31, 2017 (in millions): Three Months Ended December 31, 2018 2017 Receivable from financial institution at beginning of fiscal year $ — $ 24.9 Receivables sold to the financial institution and derecognized 453.8 385.6 Receivables collected by financial institution (470.9 ) (369.2 ) Cash paid to (proceeds from) financial institution 17.1 (22.3 ) Receivable $ — $ 19.0 The October 1, 2018 adoption of ASU 2016-15 resulted in a change in classification of proceeds received for beneficial interests obtained for transferring trade receivables in securitization transactions as investing activities instead of operating activities in the statement of cash flows. Although this aspect of the ASU does not have a material effect on our consolidated financial statements on a prospective basis (from October 1, 2018) because the creation of beneficial interest was eliminated under the terms of our A/R Sales Agreement effective September 25, 2018, we have applied the provisions of this ASU retrospectively to prior years. As a result, cash provided by operating activities for the three months ended December 31, 2017 decreased by $116.6 million with a corresponding increase to cash provided by investing activities. Based on current rates and levels of receivables sold, the expense recorded in connection with the sale is currently approximately $4 million per quarter and is recorded in “other income, net”. The future amount may fluctuate based on the level of activity and other factors. Although the sales are made without recourse, we maintain continuing involvement with the sold receivables as we provide collections services related to the transferred assets. The associated servicing liability is not material given the high quality of the customers underlying the receivables and the anticipated short collection period. |
Debt
Debt | 3 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Debt | Note 12. Debt See “ Note 13. Debt The following is the carrying value of the individual components of our debt (in millions): December 31, 2018 September 30, 2018 Public bonds due fiscal 2019 to 2022 $ 1,467.8 $ 1,470.9 Public bonds due fiscal 2023 to 2028 3,278.4 2,534.4 Public bonds due fiscal 2029 to 2033 1,710.9 964.1 Public bonds due fiscal 2037 to 2047 179.2 178.5 Term loan facilities 2,906.0 599.4 Revolving credit and swing facilities 490.3 355.0 Receivables-backed financing facility — — Commercial paper 447.7 — Capital lease obligations 179.1 171.0 Supplier financing and commercial card programs 128.0 105.1 International and other debt 33.4 36.8 Total debt 10,820.8 6,415.2 Less: current portion of debt 1,092.8 740.7 Long-term debt due after one year $ 9,728.0 $ 5,674.5 A portion of the debt classified as long-term may be paid down earlier than scheduled at our discretion without penalty. Certain customary restrictive covenants govern the maximum availability under our credit facilities. We test and report our compliance with these covenants as required and were in compliance with all of our covenants at December 31, 2018. European Revolving Credit Facility On April 27, 2018, we entered into a €500.0 million revolving credit facility with an incremental €100.0 million accordion feature with Coöperatieve Rabobank U.A., New York Branch as the administrative agent for the syndicate of banks. This facility provides for a 3-year unsecured U.S. dollar, Euro and Sterling denominated borrowing of not more than €500.0 million and matures on April 27, 2021. At December 31, 2018, we had borrowed $460.0 million under this new facility and entered into foreign currency exchange contracts of $461.5 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. Receivables-Backed Financing Facility On July 22, 2016, we entered into a $700.0 million sixth amended and restated receivables sale agreement with certain originators (the “ Receivables Facility December 31 Commercial Paper Program On October 31, 2017, we established an unsecured commercial paper program, pursuant to which we may issue short-term, unsecured commercial paper notes in an aggregate principal amount at any time not to exceed $1.0 billion with up to 397-day maturities. On December 7, 2018, we terminated the commercial paper program and established a new unsecured commercial paper program with WRKCo as the issuer. Under the new program, we may issue short-term unsecured commercial paper notes in an aggregate principal amount at any time not to exceed $1.0 billion with up to 397-day maturities. The commercial paper program has no expiration date and can be terminated by either the agent or us with not less than 30 days’ notice. Our $2.0 billion unsecured revolving credit facility is intended to backstop the commercial paper program. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The net proceeds from issuances of notes under the program were used to repay amounts outstanding under the KapStone securitization facility assumed in the acquisition that we terminated, and have been, and are expected to continue to be, used for general corporate purposes. At December 31, 2018, there was $447.7 million outstanding and the average borrowing rate was 2.99%. As of December 31, 2018, Notes Issued On December 3, 2018, WRKCo issued $750.0 million aggregate principal amount of 4.65% senior notes due 2026 (the “ 2026 Notes 2029 Notes December 2018 Notes MWV RKT Delayed Draw Credit Facilities On March 7, 2018, we entered into a credit agreement to provide for $3.8 billion of senior unsecured term loans, consisting of a 364-day $300.0 million term loan, a 3-year $1.75 billion term loan and a 5-year $1.75 billion term loan (collectively, the “ Delayed Draw Credit Facilities On November 2, 2018, in connection with the closing of the KapStone Acquisition we drew upon the facility in full. The proceeds of the Delayed Draw Credit Facilities and other sources of cash were used to pay the consideration for the KapStone Acquisition, to repay certain existing indebtedness of KapStone and to pay fees and expenses incurred in connection with the KapStone Acquisition. The Delayed Draw Credit Facilities are senior unsecured obligations of , as borrower, and each of the Company, WestRock RKT Company and WestRock MWV, LLC, respectively, as guarantors. On December 3, 2018, in connection with the issuance of the Notes, we repaid the $300.0 million 364-day term loan, and prepaid $926.5 million of the 3-year term loan and $262.5 million of the 5-year term loan. At December 31, 2018, there was $822.6 million outstanding on the 3-year term loan and $1,484.0 million outstanding on the 5-year term loan. At our option, loans issued under the Delayed Draw Credit Facilities will bear interest at a floating rate based on either LIBOR or an alternate base rate, in each case plus an applicable interest rate margin. The applicable interest rate margin will be 1.125% to 2.000% per annum for LIBOR rate loans and 0.125% to 1.000% per annum for alternate base rate loans, in each case depending on the Leverage Ratio (as defined in the credit agreement) or our corporate credit ratings, whichever yields a lower applicable interest rate margin, at such time. Loans under the Delayed Draw Credit Facilities may be prepaid at any time without premium. We have recorded debt issuance costs of approximately $7.1 million, which are being amortized over the respective terms of the Delayed Draw Credit Facilities. As of December 31, 2018, the aggregate maturities of debt, excluding capital lease obligations, for the remainder of the current fiscal year and the succeeding four fiscal years and thereafter are as follows (in millions): Remaining fiscal 2019 $ 1,078.1 Fiscal 2020 474.6 Fiscal 2021 350.7 Fiscal 2022 2,249.5 Fiscal 2023 525.5 Thereafter 5,774.0 Fair value of debt step-up, deferred financing costs and unamortized bond discounts 189.3 Total $ 10,641.7 As of December 31, 2018, the aggregate maturities of capital lease obligations for the remainder of the current fiscal year and the succeeding four fiscal years and thereafter are as follows (in millions): Remaining fiscal 2019 $ 3.6 Fiscal 2020 4.3 Fiscal 2021 2.6 Fiscal 2022 2.3 Fiscal 2023 0.8 Thereafter 147.0 Fair value of debt step-up, deferred financing costs and unamortized bond discounts 18.5 Total $ 179.1 |
Selected Condensed Consolidatin
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors | 3 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors | Note 13. The $500.0 million aggregate principal amount of 3.0% Senior Notes due 2024 (the “ 2024 Notes 2025 Notes 2027 Notes 2028 Notes Notes Issuer Subsidiary Guarantors Parent In accordance with GAAP, we have retrospectively accounted for changes in our legal structure that constitute transfers of businesses between issuers, guarantors and non-guarantors at December 31, 2018. Because the Parent was formed on January 25, 2018, no activity is reflected in the Parent column of the condensed consolidating statements of income or the condensed consolidating statement of cash flows for the three month period ended December 31, 2017. In accordance with Rule 3-10 of Regulation S-X, the following tables present condensed consolidating financial data of the Parent, the Issuer, the Subsidiary Guarantors, the non-guarantor subsidiaries and eliminations. Such financial data include the related Condensed Consolidating Statements of Income for the three months ended December 31, 2018 and December 31, 2017, Condensed Consolidating Balance Sheets as of December 31, 2018 and September 30, 2018 and Condensed Consolidating Statements of Cash Flows for the three months ended December 31, 2018 and December 31, 2017. CONDENSED CONSOLIDATING STATEMENTS OF INCOME Three Months Ended December 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 623.3 $ 3,901.4 $ (197.3 ) $ 4,327.4 Cost of goods sold — — 500.4 3,242.5 (197.3 ) 3,545.6 Selling, general and administrative, excluding intangible amortization — 0.1 13.1 387.7 — 400.9 Selling, general and administrative intangible amortization — — 26.1 66.8 — 92.9 Gain on disposal of assets — — — (43.8 ) — (43.8 ) Restructuring and other costs — — 0.1 54.3 — 54.4 Operating (loss) profit — (0.1 ) 83.6 193.9 — 277.4 Interest (expense) income, net — (47.0 ) (49.9 ) 2.5 — (94.4 ) Intercompany interest income (expense), net — 3.0 (27.1 ) 24.1 — — Loss on extinguishment of debt — (1.8 ) — (0.1 ) — (1.9 ) Pension and other postretirement non- service (expense) income — — (1.7 ) 19.0 — 17.3 Other (expense) income, net — (0.6 ) 0.6 (2.7 ) — (2.7 ) Equity in income of unconsolidated entities — — — 6.8 — 6.8 Equity in income of consolidated entities 139.1 188.1 228.7 — (555.9 ) — Income before income taxes 139.1 141.6 234.2 243.5 (555.9 ) 202.5 Income tax benefit (expense) — 14.9 (1.8 ) (75.8 ) — (62.7 ) Consolidated net income 139.1 156.5 232.4 167.7 (555.9 ) 139.8 Less: Net income attributable to noncontrolling interests — — — (0.7 ) — (0.7 ) Net income attributable to common stockholders $ 139.1 $ 156.5 $ 232.4 $ 167.0 $ (555.9 ) $ 139.1 Comprehensive income attributable to common stockholders $ 79.6 $ 97.0 $ 173.2 $ 107.7 $ (377.9 ) $ 79.6 CONDENSED CONSOLIDATING STATEMENTS OF INCOME Three Months Ended December 31, 2017 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 608.0 $ 3,477.3 $ (191.3 ) $ 3,894.0 Cost of goods sold — — 445.4 2,866.4 (191.3 ) 3,120.5 Selling, general and administrative, excluding intangible amortization — — 24.4 356.4 — 380.8 Selling, general and administrative intangible amortization — — 26.0 46.5 — 72.5 Loss on disposal of assets — — — 1.1 — 1.1 Multiemployer pension withdrawal — 6.5 12.5 161.0 — 180.0 Land and Development impairments — — — 27.6 — 27.6 Restructuring and other costs — 0.8 1.1 14.4 — 16.3 Operating (loss) profit — (7.3 ) 98.6 3.9 — 95.2 Interest expense, net — (15.3 ) (44.2 ) (5.3 ) — (64.8 ) Intercompany interest income (expense), net — 5.6 (15.8 ) 10.2 — — Loss on extinguishment of debt — (0.9 ) — (0.1 ) — (1.0 ) Pension and other postretirement non- service (expense) income — — (0.1 ) 24.7 — 24.6 Other income, net — 0.4 1.7 0.4 — 2.5 Equity in income of unconsolidated entities — — 2.5 1.3 — 3.8 Equity in income of consolidated entities — 1,152.0 863.7 — (2,015.7 ) — Income before income taxes — 1,134.5 906.4 35.1 (2,015.7 ) 60.3 Income tax benefit — 0.6 124.5 948.1 — 1,073.2 Consolidated net income — 1,135.1 1,030.9 983.2 (2,015.7 ) 1,133.5 Less: Net loss attributable to noncontrolling interests — — — 1.6 — 1.6 Net income attributable to common stockholders $ — $ 1,135.1 $ 1,030.9 $ 984.8 $ (2,015.7 ) $ 1,135.1 Comprehensive income attributable to common stockholders $ — $ 1,094.8 $ 985.7 $ 944.8 $ (1,930.5 ) $ 1,094.8 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 50.4 $ 210.3 $ — $ 260.7 Accounts receivable — — 176.0 2,165.6 (26.1 ) 2,315.5 Inventories — — 240.1 1,861.7 — 2,101.8 Other current assets 0.2 — 11.1 497.6 — 508.9 Intercompany receivables — 39.6 598.2 104.5 (742.3 ) — Assets held for sale — — — 39.1 — 39.1 Total current assets 0.2 39.6 1,075.8 4,878.8 (768.4 ) 5,226.0 Property, plant and equipment, net — — 21.9 10,947.8 — 10,969.7 Goodwill — — 1,151.3 6,169.0 — 7,320.3 Intangibles, net — — 1,563.3 2,788.7 — 4,352.0 Restricted assets held by special purpose entities — — — 1,279.4 — 1,279.4 Prepaid pension asset — — — 428.4 — 428.4 Intercompany notes receivable — 155.0 32.5 2,941.1 (3,128.6 ) — Investments in consolidated subsidiaries 11,607.5 17,739.6 19,563.3 — (48,910.4 ) — Other assets — 13.8 163.2 922.9 (8.8 ) 1,091.1 Total Assets $ 11,607.7 $ 17,948.0 $ 23,571.3 $ 30,356.1 $ (52,816.2 ) $ 30,666.9 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 228.0 $ 607.2 $ 257.6 $ — $ 1,092.8 Accounts payable — 5.6 36.2 1,663.8 (26.1 ) 1,679.5 Accrued compensation and benefits 0.2 — 10.1 354.9 — 365.2 Other current liabilities — 32.3 129.9 430.2 — 592.4 Intercompany payables 3.8 381.3 357.2 — (742.3 ) — Total current liabilities 4.0 647.2 1,140.6 2,706.5 (768.4 ) 3,729.9 Long-term debt due after one year — 6,223.2 2,463.7 1,041.1 — 9,728.0 Intercompany notes payable — — 2,941.1 187.5 (3,128.6 ) — Pension liabilities, net of current portion — — 135.2 118.1 — 253.3 Postretirement benefit liabilities, net of current portion — — 28.1 110.9 — 139.0 Non-recourse liabilities held by special purpose entities — — — 1,151.6 — 1,151.6 Deferred income taxes — — 275.2 2,666.2 (8.8 ) 2,932.6 Other long-term liabilities — 15.8 130.3 967.1 — 1,113.2 Redeemable noncontrolling interests — — — 3.8 — 3.8 Total stockholders’ equity 11,603.7 11,061.8 16,457.1 21,391.5 (48,910.4 ) 11,603.7 Noncontrolling interests — — — 11.8 — 11.8 Total equity 11,603.7 11,061.8 16,457.1 21,403.3 (48,910.4 ) 11,615.5 Total Liabilities and Equity $ 11,607.7 $ 17,948.0 $ 23,571.3 $ 30,356.1 $ (52,816.2 ) $ 30,666.9 CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ — $ 0.2 $ 490.8 $ 145.8 $ — $ 636.8 Accounts receivable — 0.1 196.5 1,840.2 (26.1 ) 2,010.7 Inventories — — 233.4 1,596.2 — 1,829.6 Other current assets — 0.4 17.2 230.9 — 248.5 Intercompany receivables — 27.7 285.9 784.0 (1,097.6 ) — Assets held for sale — — — 59.5 — 59.5 Total current assets — 28.4 1,223.8 4,656.6 (1,123.7 ) 4,785.1 Property, plant and equipment, net — — 21.3 9,061.2 — 9,082.5 Goodwill — — 1,151.3 4,426.3 — 5,577.6 Intangibles, net — — 1,589.4 1,532.6 — 3,122.0 Restricted assets held by special purpose entities — — — 1,281.0 — 1,281.0 Prepaid pension asset — — — 420.0 — 420.0 Intercompany notes receivable — 884.2 33.1 2,865.4 (3,782.7 ) — Investments in consolidated subsidiaries — 13,162.8 14,840.2 — (28,003.0 ) — Other assets 3.4 12.4 172.8 910.8 (7.1 ) 1,092.3 Total Assets $ 3.4 $ 14,087.8 $ 19,031.9 $ 25,153.9 $ (32,916.5 ) $ 25,360.5 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ — $ 609.5 $ 131.2 $ — $ 740.7 Accounts payable — 0.8 40.3 1,701.8 (26.1 ) 1,716.8 Accrued compensation and benefits — 0.2 10.7 388.4 — 399.3 Other current liabilities — 3.2 77.7 395.6 — 476.5 Intercompany payables 13.3 408.8 675.5 — (1,097.6 ) — Total current liabilities 13.3 413.0 1,413.7 2,617.0 (1,123.7 ) 3,333.3 Long-term debt due after one year — 2,179.4 2,460.1 1,035.0 — 5,674.5 Intercompany notes payable — — 2,865.4 917.3 (3,782.7 ) — Pension liabilities, net of current portion — — 135.9 125.4 — 261.3 Postretirement benefit liabilities, net of current portion — — 28.1 106.7 — 134.8 Non-recourse liabilities held by special purpose entities — — — 1,153.7 — 1,153.7 Deferred income taxes — — 291.0 2,037.6 (7.1 ) 2,321.5 Other long-term liabilities — 16.1 106.2 872.5 — 994.8 Redeemable noncontrolling interests — — — 4.2 — 4.2 Total stockholders’ equity (9.9 ) 11,479.3 11,731.5 16,271.5 (28,003.0 ) 11,469.4 Noncontrolling interests — — — 13.0 — 13.0 Total equity (9.9 ) 11,479.3 11,731.5 16,284.5 (28,003.0 ) 11,482.4 Total Liabilities and Equity $ 3.4 $ 14,087.8 $ 19,031.9 $ 25,153.9 $ (32,916.5 ) $ 25,360.5 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Operating activities: Net cash provided by (used for) operating activities $ 147.4 $ 83.4 $ (519.0 ) $ 1,163.7 $ (572.4 ) $ 303.1 Investing activities: Capital expenditures — — (1.5 ) (320.5 ) — (322.0 ) Cash paid related to business combinations, net of cash acquired — — — (3,342.9 ) — (3,342.9 ) Proceeds from sale of property, plant and equipment — — — 88.0 — 88.0 Intercompany notes issued — — — (75.7 ) 75.7 — Intercompany notes proceeds — 9.3 0.6 3,800.0 (3,809.9 ) — Intercompany capital investment (563.0 ) (563.0 ) — — 1,126.0 — Other — — 3.8 0.3 — 4.1 Net cash (used for) provided by investing activities (563.0 ) (553.7 ) 2.9 149.2 (2,608.2 ) (3,572.8 ) Financing activities: Proceeds from issuance of notes — 1,498.5 — — — 1,498.5 Additions to revolving credit facilities — 30.7 — 102.9 — 133.6 Additions to debt — 3,800.8 — 5.3 — 3,806.1 Repayments of debt — (1,489.2 ) — (1,358.7 ) — (2,847.9 ) Changes in commercial paper, net — 447.7 — — — 447.7 Other financing additions — 0.7 — 13.9 — 14.6 Issuances of common stock, net of related minimum tax withholdings 12.9 — — — — 12.9 Purchases of common stock (44.2 ) — — — — (44.2 ) Cash dividends paid to stockholders (116.1 ) — — — — (116.1 ) Cash distributions paid to noncontrolling interests — — — (2.2 ) — (2.2 ) Intercompany notes borrowing — — 75.7 — (75.7 ) — Intercompany notes payments — (3,800.0 ) — (9.9 ) 3,809.9 — Intercompany capital receipt 563.0 — — 563.0 (1,126.0 ) — Intercompany dividends — — — (572.4 ) 572.4 — Other — (19.1 ) — 12.7 — (6.4 ) Net cash provided by (used for) financing activities 415.6 470.1 75.7 (1,245.4 ) 3,180.6 2,896.6 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — (3.0 ) — (3.0 ) (Decrease) increase in cash, cash equivalents and restricted cash — (0.2 ) (440.4 ) 64.5 — (376.1 ) Cash, cash equivalents and restricted cash at beginning of period — 0.2 490.8 145.8 — 636.8 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 50.4 $ 210.3 $ — $ 260.7 The Condensed Consolidating Statements of Cash Flows for the three months ended December 31, 2018, do not include non-cash transactions between Parent, Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries. From time to time, we may enter into non-cash transactions for simplicity of execution of intercompany transactions, which may include intercompany non-cash capitalizations, intercompany non-cash returns of capital, intercompany debt-to-equity conversions or other transactions of a similar nature. The table below summarizes these non-cash transactions. Three Months Ended December 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Investing activities: Intercompany notes issued $ — $ (3,800.0 ) $ (4,519.8 ) $ (8,057.5 ) $ 16,377.3 $ — Intercompany notes proceeds $ — $ 4,519.8 $ 4,519.8 $ 4,257.5 $ (13,297.1 ) $ — Intercompany capital investment $ (10,396.2 ) $ (5,434.8 ) $ (5,892.3 ) $ — $ 21,723.3 $ — Intercompany return of capital $ 563.0 $ 1,478.0 $ 915.0 $ — $ (2,956.0 ) $ — Financing activities: Intercompany notes borrowing $ — $ 3,800.0 $ 457.5 $ 12,119.8 $ (16,377.3 ) $ — Intercompany notes payments $ — $ — $ (457.5 ) $ (12,839.6 ) $ 13,297.1 $ — Intercompany capital receipt $ — $ 10,396.2 $ 4,977.3 $ 6,349.8 $ (21,723.3 ) $ — Intercompany capital distribution $ (563.0 ) $ (563.0 ) $ (457.5 ) $ (1,372.5 ) $ 2,956.0 $ — CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2017 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Operating activities: Net cash provided by (used for) operating activities $ — $ 110.0 $ (73.5 ) $ 248.8 $ (39.9 ) $ 245.4 Investing activities: Capital expenditures — — — (214.1 ) — (214.1 ) Cash received related to business combinations — — — 3.4 — 3.4 Cash receipts on sold trade receivables — — — 116.6 — 116.6 Investment in unconsolidated entities — — — (110.7 ) — (110.7 ) Proceeds from sale of property, plant and equipment — — — 12.1 — 12.1 Proceeds from property, plant and equipment insurance settlement — — — 1.5 — 1.5 Intercompany notes issued — — — — — — Intercompany notes proceeds — — 1.1 — (1.1 ) — Intercompany capital investment — — — — — — Intercompany return of capital — — 82.6 — (82.6 ) — Other — — 0.6 — — 0.6 Net cash provided by (used for) investing activities — — 84.3 (191.2 ) (83.7 ) (190.6 ) Financing activities: (Repayments) additions to revolving credit facilities — (80.9 ) — 168.5 — 87.6 Additions to debt — — — 475.3 — 475.3 Repayments of debt — (485.1 ) — (565.5 ) — (1,050.6 ) Changes in commercial paper, net — 554.7 — — — 554.7 Other financing repayments — — (5.8 ) (7.7 ) — (13.5 ) Issuances of common stock, net of related minimum tax withholdings — 11.4 — — — 11.4 Cash dividends paid to stockholders — (109.6 ) — — — (109.6 ) Cash distributions paid to noncontrolling interests — — — (1.5 ) — (1.5 ) Intercompany notes payments — — — (1.1 ) 1.1 — Intercompany capital distribution — — — (82.6 ) 82.6 — Intercompany dividends — — — (39.9 ) 39.9 — Other — — — 0.7 — 0.7 Net cash used for financing activities — (109.5 ) (5.8 ) (53.8 ) 123.6 (45.5 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (0.1 ) (0.9 ) — (1.0 ) Increase in cash, cash equivalents and restricted cash — 0.5 4.9 2.9 — 8.3 Cash, cash equivalents and restricted cash at beginning of period — — 43.3 260.7 — 304.0 Cash, cash equivalents and restricted cash at end of period $ — $ 0.5 $ 48.2 $ 263.6 $ — $ 312.3 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies Environmental We are subject to a broad range of foreign, federal, state and local environmental, health and safety laws and regulations, including those governing discharges to air, soil and water, the management, treatment and disposal of hazardous substances, solid waste and hazardous wastes, the investigation and remediation of contamination resulting from historical site operations and releases of hazardous substances, and the health and safety of employees. Our compliance initiatives related to these laws and regulations could result in significant costs, which could negatively impact our results of operations, financial condition and cash flows. Any failure to comply with environmental or health and safety laws and regulations, or any permits and authorizations required thereunder, could subject us to fines, corrective action or other sanctions. We have been named as a potentially responsible party (“ PRP CERCLA On January 26, 2009, Smurfit-Stone and certain of its subsidiaries filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. Smurfit-Stone’s Canadian subsidiaries also filed to reorganize in Canada. We believe that matters relating to previously identified third-party PRP sites and certain facilities formerly owned or operated by Smurfit-Stone have been satisfied by claims in the Smurfit-Stone bankruptcy proceedings. However, we may face additional liability for cleanup activity at sites that are not subject to the bankruptcy discharge, but are not currently identified. The final bankruptcy distributions were made in fiscal 2018. See “ Note 17. Commitments and Contingencies Litigation A lawsuit filed in the U.S. District Court of the Northern District of Illinois in 2010 alleges that certain named defendants violated the Sherman Act by conspiring to limit the supply and fix the prices of containerboard and products containing containerboard from February 15, 2004 through November 8, 2010 (the “ Antitrust Litigation 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, 2018, there were approximately 775 such lawsuits. We believe that we have substantial insurance coverage, subject to applicable deductibles and policy limits, with respect to asbestos claims. We have valid defenses to these asbestos-related personal injury claims and intend to continue to defend them vigorously. Should the volume of litigation grow substantially, it is possible that we could incur significant costs resolving these cases. We do not expect the resolution of pending asbestos litigation and proceedings to have a material adverse effect on our consolidated financial condition or liquidity. In any given period or periods, however, it is possible such proceedings or matters could have a material adverse effect on our results of operations, financial condition or cash flows. We are a defendant in a number of other lawsuits and claims arising out of the conduct of our business. While the ultimate results of such suits or other proceedings against us cannot be predicted with certainty, we believe the resolution of these other matters will not have a material adverse effect on our results of operations, financial condition or cash flows. Guarantees We make certain guarantees in the 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 the exposure for these matters could be approximately $50 million. As of December 31, 2018, we had recorded $11.8 million for the estimated fair value of these guarantees. We are unable to estimate our maximum exposure under operating leases because it is dependent on potential changes in the tax 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. |
Equity and Other Comprehensive
Equity and Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Equity and Other Comprehensive Income (Loss) | Note 15. Equity and Other Comprehensive Income (Loss) Equity Stock Repurchase Program In July 2015, our board of directors authorized a repurchase program of up to 40.0 million shares of our common stock, par value $0.01 per share (“ Common Stock The tables below summarize the changes in accumulated other comprehensive loss, net of tax, by component for the three months ended December 31, 2018 and December 31, 2017 (in millions): Cash Flow Hedges Defined Benefit Pension and Postretirement Plans Foreign Currency Items Total (1) Balance at September 30, 2018 $ (0.2 ) $ (465.9 ) $ (229.2 ) $ (695.3 ) Other comprehensive loss before reclassifications — — (64.9 ) (64.9 ) Amounts reclassified from accumulated other comprehensive loss — 5.4 — 5.4 Net current period other comprehensive income (loss) — 5.4 (64.9 ) (59.5 ) Balance at December 31, 2018 $ (0.2 ) $ (460.5 ) $ (294.1 ) $ (754.8 ) (1) Cash Flow Hedges Defined Benefit Pension and Postretirement Plans Foreign Currency Items Available for Sale Security Total (1) Balance at September 30, 2017 $ (0.7 ) $ (462.5 ) $ 5.2 $ 0.7 $ (457.3 ) Other comprehensive (loss) income before reclassifications (0.1 ) (2.7 ) (42.0 ) 0.8 (44.0 ) Amounts reclassified from accumulated other comprehensive loss 0.5 3.2 — — 3.7 Net current period other comprehensive income (loss) 0.4 0.5 (42.0 ) 0.8 (40.3 ) Balance at December 31, 2017 $ (0.3 ) $ (462.0 ) $ (36.8 ) $ 1.5 $ (497.6 ) (1) The net of tax amounts were determined using the jurisdictional statutory rates, and reflect effective tax rates averaging 25% to 27% for the three months ended December 31, 2018 and 28% to 29% for the three months ended December 31, 2017. Although we are impacted by a number of currencies, foreign currency translation losses recorded in accumulated other comprehensive loss for the three months ended December 31, 2018 were primarily due to losses in the Canadian dollar, Mexican Peso, British Pound and Euro, partially offset by changes in the Brazilian Real exchange rate, each against the U.S. dollar. Foreign currency translation gains recorded in accumulated other comprehensive loss for the three months ended December 31, 2017 were primarily due to losses in the Brazilian Real and Mexican peso, partially offset by changes in the Euro exchange rate, each against the U.S. dollar . The following table summarizes the reclassifications out of accumulated other comprehensive income by component (in millions): Three Months Ended Three Months Ended December 31, 2018 December 31, 2017 Pretax Tax Net of Tax Pretax Tax Net of Tax Amortization of defined benefit pension and postretirement items: (1) Actuarial losses (2) $ (6.6 ) $ 1.7 $ (4.9 ) $ (4.4 ) $ 1.2 $ (3.2 ) Prior service costs (2) (0.6 ) 0.1 (0.5 ) — — — Subtotal defined benefit plans (7.2 ) 1.8 (5.4 ) (4.4 ) 1.2 (3.2 ) Derivative Instruments: (1) Foreign currency cash flow hedges (3) — — — (0.7 ) 0.2 (0.5 ) Total reclassifications for the period $ (7.2 ) $ 1.8 $ (5.4 ) $ (5.1 ) $ 1.4 $ (3.7 ) (1) (2) Note 5. Retirement Plans (3) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 16. 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. Three Months Ended December 31, 2018 2017 Numerator: Net income attributable to common stockholders $ 139.1 $ 1,135.1 Less: Distributed and undistributed income available to participating securities — (0.2 ) Distributed and undistributed income available to common stockholders $ 139.1 $ 1,134.9 Denominator: Basic weighted average shares outstanding 254.8 255.0 Effect of dilutive stock options and non- participating securities 4.7 4.2 Diluted weighted average shares outstanding 259.5 259.2 Basic earnings per share attributable to common stockholders $ 0.55 $ 4.45 Diluted earnings per share attributable to common stockholders $ 0.54 $ 4.38 Approximately 0.9 million and 0.1 million of awards in the three months ended December 31, 2018 and December 31, 2017, respectively, were not included in computing diluted earnings per share because the effect would have been antidilutive. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our independent registered public accounting firm has not audited our accompanying interim financial statements. We derived the Condensed Consolidated Balance Sheet at September 30, 2018 from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018 (the “ Fiscal 2018 Form 10-K On October 1, 2018, we adopted Accounting Standards Update (“ ASU ASC Revenue from Contracts with Customers ASC 606 Note 2. Revenue Recognition We adopted ASU 2017-07, “ Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ” on October 1, 2018 on a retrospective basis. pon the adoption of this ASU, $24.6 million , which was previously reported in “Cost of goods sold” for $10.0 million and “S We adopted the provisions of ASU 2016-15 “ Classification of Certain Cash Receipts and Cash Payments We adopted the provisions of ASU 2016-18, “ Restricted Cash amounts shown on the condensed consolidated statements of cash flows. Due to the minimal amount of restricted cash on our condensed consolidated balance sheets, the impact was not material. We have condensed or omitted certain notes and other information from the interim financial statements presented in this report. Therefore, these interim financial statements should be read in conjunction with our Fiscal 2018 Form 10-K. The results for the three months ended December 31, 2018 are not necessarily indicative of results that may be expected for the full year. |
Significant Accounting Policies | Significant Accounting Policies See “ Note 1. Description of Business and Summary of Significant Accounting Policies |
New Accounting Standards - Recently Adopted | New Accounting Standards - Recently Adopted See “ Note 1. Description of Business and Summary of Significant Accounting Policies — New Accounting Standards - Recently Adopted |
New Accounting Standards - Recently Issued | New Accounting Standards - Recently Issued See “ Note 1. Description of Business and Summary of Significant Accounting Policies — New Accounting Standards - Recently Issued In October 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-18 “ Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606 Collaborative arrangements ASC 808 In October 2018, the FASB issued ASU 2018-17 “ Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities GAAP In August 2018, the FASB issued ASU 2018-15 “ Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-14 “ Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans In February 2018, the FASB issued ASU 2018-02, “ Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income U.S. Tax Act Income Statement – Reporting Comprehensive Income” In August 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In October 2018, the FASB issued ASU 2018-16, “Derivatives and Hedging: Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting ”, that adds the overnight index rate based on the Secured Overnight Financing Rate to the list of US benchmark interest rates in ASC 815 that are eligible to be hedged. In February 2016, the FASB issued ASU 2016-02 “ Leases”, Leases” Leases In December 2018, the FASB issued ASU 2018-20 “ Leases: Narrow-scope Improvements for Lessors ” to help lessors apply ASC 842, which allows lessors to make an accounting policy election not to evaluate sales taxes and other similar taxes collected from lessees, requires lessors to exclude from variable payments certain lessor costs paid directly by lessee to third parties on the lessor’s behalf and provides clarification on variable payments allocated to lease and non-lease components. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |
Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment) | The table below disaggregates our revenue by geographical market and product type (segment). Three Months Ended December 31, 2018 (In millions) Corrugated Packaging Consumer Packaging Land and Development Intersegment Sales Total Primary Geographical Markets North America $ 2,606.5 $ 1,247.0 $ 13.9 $ (38.1 ) $ 3,829.3 South America 108.8 19.5 — — 128.3 Europe — 269.3 — — 269.3 Asia Pacific 18.5 83.0 — (1.0 ) 100.5 Total (1) $ 2,733.8 $ 1,618.8 $ 13.9 $ (39.1 ) $ 4,327.4 (1) Net sales are attributed to geographical markets based on the location of the seller. |
Summary of Opening and Closing Balances of Contract Assets and Contract Liabilities | The opening and closing balances of our contract assets and contract liabilities are as follows. Contract assets and contract liabilities are aggregated within Other current assets and Other current liabilities, respectively, on the condensed consolidated balance sheet. (In millions) Contract Assets (Short-Term) Contract Liabilities (Short-Term) Beginning balance - October 1, 2018 $ 183.7 $ 7.9 Impact of acquisition 13.0 — Ending balance - December 31, 2018 188.6 10.2 (Decrease) / increase $ (8.1 ) $ 2.3 |
ASC 606 [Member] | |
Disaggregation Of Revenue [Line Items] | |
Summary of Effect of Adoption of ASC 606 Impact on Condensed Consolidated Financial Statements | The adoption of ASC 606 had the following impact on our condensed consolidated financial statements: Condensed Consolidated Statement of Income Three Months Ended December 31, 2018 (In millions) As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Net sales $ 4,327.4 $ 4,335.5 $ (8.1 ) Cost of goods sold $ 3,545.6 $ 3,554.6 $ (9.0 ) Income tax expense $ (62.7 ) $ (62.5 ) $ (0.2 ) Consolidated net income $ 139.8 $ 139.1 $ 0.7 Condensed Consolidated Balance Sheet December 31, 2018 (In millions) As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Inventories $ 2,101.8 $ 2,238.0 $ (136.2 ) Other current assets $ 508.9 $ 320.3 $ 188.6 Other current liabilities $ 592.4 $ 592.2 $ 0.2 Retained earnings $ 1,635.3 $ 1,591.1 $ 44.2 Condensed Consolidated Statement of Cash Flows Three Months Ended December 31, 2018 (In millions) As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Consolidated net income $ 139.8 $ 139.1 $ 0.7 Other assets $ (17.8 ) $ (25.9 ) $ 8.1 Inventories $ (71.4 ) $ (62.4 ) $ (9.0 ) Income taxes $ (11.5 ) $ (11.7 ) $ 0.2 |
Acquisitions (Tables)
Acquisitions (Tables) - KapStone Acquisition [Member] | 3 Months Ended |
Dec. 31, 2018 | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | Opening balance effective November 2, 2018 (in millions): Cash and cash equivalents $ 8.6 Current assets, excluding cash and cash equivalents 878.9 Property, plant and equipment, net 1,910.3 Goodwill 1,755.0 Intangible assets 1,336.1 Other long-term assets 27.9 Total assets acquired 5,916.8 Current portion of debt 33.3 Current liabilities 337.5 Long-term debt due after one year 1,333.4 Accrued pension and other long-term benefits 9.8 Deferred income taxes 609.7 Other long-term liabilities 118.4 Total liabilities assumed 2,442.1 Net assets acquired $ 3,474.7 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the weighted average life and the allocation to intangible assets recognized in the KapStone Acquisition, excluding goodwill (in millions): Weighted Avg. Life Gross Carrying Amount Customer relationships 11.6 $ 1,270.0 Trademarks and tradenames 17.0 56.9 Favorable contracts 5.9 9.2 Total 11.8 $ 1,336.1 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Restructuring $ 25.7 $ 4.4 Other 28.7 11.9 Restructuring and other costs $ 54.4 $ 16.3 |
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, 2018 and 2017, 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, 2018 2017 Cumulative Total Expected Corrugated Packaging Net property, plant and equipment costs $ 3.1 $ 0.6 $ 198.3 $ 198.3 Severance and other employee costs 6.6 1.1 43.5 43.7 Equipment and inventory relocation costs 0.4 1.5 6.3 7.2 Facility carrying costs 1.1 0.8 29.4 31.7 Other costs — (0.3 ) 12.8 13.2 Restructuring total $ 11.2 $ 3.7 $ 290.3 $ 294.1 Consumer Packaging Net property, plant and equipment costs $ — $ 1.0 $ 40.9 $ 40.9 Severance and other employee costs (0.1 ) (1.9 ) 40.6 40.8 Equipment and inventory relocation costs 0.3 0.4 7.4 7.6 Facility carrying costs (0.2 ) 0.4 2.4 2.8 Other costs 0.5 (0.3 ) 22.9 22.9 Restructuring total $ 0.5 $ (0.4 ) $ 114.2 $ 115.0 Land and Development Net property, plant and equipment costs $ — $ — $ 1.8 $ 1.8 Severance and other employee costs (0.1 ) 0.4 13.7 13.7 Other costs — — 3.0 3.0 Restructuring total $ (0.1 ) $ 0.4 $ 18.5 $ 18.5 Corporate Net property, plant and equipment costs $ — $ — $ 1.4 $ 1.4 Severance and other employee costs 14.2 0.2 114.8 114.8 Other costs (0.1 ) 0.5 15.4 15.4 Restructuring total $ 14.1 $ 0.7 $ 131.6 $ 131.6 Total Net property, plant and equipment costs $ 3.1 $ 1.6 $ 242.4 $ 242.4 Severance and other employee costs 20.6 (0.2 ) 212.6 213.0 Equipment and inventory relocation costs 0.7 1.9 13.7 14.8 Facility carrying costs 0.9 1.2 31.8 34.5 Other costs 0.4 (0.1 ) 54.1 54.5 Restructuring total $ 25.7 $ 4.4 $ 554.6 $ 559.2 |
Schedule of Acquisition, Divestiture and Integration Costs | The following table presents our acquisition, divestiture and integration costs (in millions): Three Months Ended December 31, 2018 2017 Acquisition costs $ 24.0 $ 1.9 Divestiture costs 0.1 0.3 Integration costs 4.6 9.7 Other total $ 28.7 $ 11.9 |
Schedule of Changes in Restructuring Accrual and Reconciliation of Accrual Charges | The following table summarizes the changes in the restructuring accrual, which are primarily composed of lease commitments, accrued severance and other employee costs, and a reconciliation of the restructuring accrual charges to the line item “ Restructuring and other costs Three Months Ended December 31, 2018 2017 Accrual at beginning of fiscal year $ 31.6 $ 47.4 Additional accruals 16.6 2.0 Payments (9.8 ) (8.6 ) Adjustment to accruals (1.9 ) (3.7 ) Foreign currency rate changes 0.2 (0.3 ) Accrual at December 31 $ 36.7 $ 36.8 Reconciliation of accruals and charges to restructuring and other costs (in millions): Three Months Ended December 31, 2018 2017 Additional accruals and adjustments to accruals (see table above) $ 14.7 $ (1.7 ) Acquisition costs 24.0 1.9 Integration costs 4.6 9.7 Divestiture costs 0.1 0.3 Net property, plant and equipment 3.1 1.6 Severance and other employee costs 5.8 0.4 Equipment and inventory relocation costs 0.7 1.9 Facility carrying costs 0.9 1.2 Other costs 0.5 1.0 Total restructuring and other costs $ 54.4 $ 16.3 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Retirement Plans [Abstract] | |
Summary of Components of Net Pension (Income) Cost and Summary of Components of Postretirement Benefit Cost | The following table presents a summary of the components of net pension (income) cost (in millions): Three Months Ended December 31, 2018 2017 Service cost $ 10.9 $ 11.6 Interest cost 56.5 50.9 Expected return on plan assets (82.9 ) (82.1 ) Amortization of net actuarial loss 7.0 4.6 Amortization of prior service cost 1.3 1.1 Company defined benefit plan income (7.2 ) (13.9 ) Multiemployer pension withdrawals — 180.0 Multiemployer and other plans 0.2 0.8 Net pension (income) cost $ (7.0 ) $ 166.9 Three Months Ended December 31, 2018 2017 Service cost $ 0.3 $ 0.4 Interest cost 1.9 2.0 Amortization of net actuarial gain (0.4 ) — Amortization of prior service credit (0.7 ) (1.1 ) Net postretirement cost $ 1.1 $ 1.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Changes in Reserve for Uncertain Tax Position | The following table sets forth the changes in the reserve for uncertain tax positions during the three months ended December 31, 2018: Balance at beginning of fiscal year $ 127.1 Additions related to purchase accounting (1) 1.0 Additions for tax positions taken in current year (2) 100.2 Additions for tax positions taken in prior fiscal years 1.0 Additions for currency translation adjustments 0.8 Reductions as a result of a lapse of the applicable statute of limitations (0.7 ) Balance at December 31, 2018 $ 229.4 (1) Adjustment in fiscal 2019 relates to the KapStone Acquisition. (2) Additions for tax positions taken in current fiscal year includes primarily positions taken related to foreign subsidiaries. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Certain Operating Data for Segments | The following table shows selected operating data for our segments (in millions): Three Months Ended December 31, 2018 2017 Net sales (aggregate): Corrugated Packaging $ 2,733.8 $ 2,319.7 Consumer Packaging 1,618.8 1,601.3 Land and Development 13.9 11.4 Total $ 4,366.5 $ 3,932.4 Less net sales (intersegment): Corrugated Packaging $ 18.0 $ 19.4 Consumer Packaging 21.1 19.0 Total $ 39.1 $ 38.4 Net sales (unaffiliated customers): Corrugated Packaging $ 2,715.8 $ 2,300.3 Consumer Packaging 1,597.7 1,582.3 Land and Development 13.9 11.4 Total $ 4,327.4 $ 3,894.0 Segment income: Corrugated Packaging $ 246.8 $ 269.9 Consumer Packaging 76.9 94.2 Land and Development 0.7 (0.7 ) Segment income 324.4 363.4 Gain on sale of certain closed facilities 50.5 — Multiemployer pension withdrawals — (180.0 ) Land and Development impairments — (27.6 ) Restructuring and other costs (54.4 ) (16.3 ) Non-allocated expenses (19.0 ) (15.9 ) Interest expense, net (94.4 ) (64.8 ) Loss on extinguishment of debt (1.9 ) (1.0 ) Other (expense) income, net (2.7 ) 2.5 Income before income taxes $ 202.5 $ 60.3 The following table shows selected operating data for our segments (in millions): December 31, 2018 September 30, 2018 Identifiable assets: Corrugated Packaging $ 16,438.7 $ 11,069.6 Consumer Packaging 11,437.5 11,511.1 Land and Development 47.6 49.1 Assets held for sale 39.1 59.5 Corporate 2,704.0 2,671.2 Total $ 30,666.9 $ 25,360.5 |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill during the three months ended December 31, 2018 is as follows (in millions): Corrugated Packaging Consumer Packaging Total Balance as of September 30, 2018 Goodwill $ 1,966.8 $ 3,653.6 $ 5,620.4 Accumulated impairment losses (0.1 ) (42.7 ) (42.8 ) 1,966.7 3,610.9 5,577.6 Goodwill acquired 1,755.0 — 1,755.0 Purchase price allocation adjustments 0.9 — 0.9 Translation adjustments 2.8 (16.0 ) (13.2 ) Balance as of December 31, 2018 Goodwill 3,725.5 3,637.6 7,363.1 Accumulated impairment losses (0.1 ) (42.7 ) (42.8 ) $ 3,725.4 $ 3,594.9 $ 7,320.3 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, 2018 September 30, 2018 Finished goods and work in process $ 921.0 $ 867.0 Raw materials 862.7 730.0 Spare parts and supplies 463.7 368.2 Inventories at FIFO cost 2,247.4 1,965.2 LIFO reserve (145.6 ) (135.6 ) Net inventories $ 2,101.8 $ 1,829.6 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 September 30, 2018 Property, plant and equipment at cost: Land and buildings $ 2,349.5 $ 2,078.9 Machinery and equipment 13,889.7 12,064.0 Forestlands and mineral rights 162.8 158.0 Transportation equipment 30.6 30.1 Leasehold improvements 99.2 88.9 16,531.8 14,419.9 Less: accumulated depreciation, depletion and amortization (5,562.1 ) (5,337.4 ) Property, plant and equipment, net $ 10,969.7 $ 9,082.5 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Activity Under A/R Sales Agreement | The following table presents a summary of the activity under the A/R Sales Agreement and the Prior A/R Sales Agreement for the three months ended December 31, 2018 and December 31, 2017 (in millions): Three Months Ended December 31, 2018 2017 Receivable from financial institution at beginning of fiscal year $ — $ 24.9 Receivables sold to the financial institution and derecognized 453.8 385.6 Receivables collected by financial institution (470.9 ) (369.2 ) Cash paid to (proceeds from) financial institution 17.1 (22.3 ) Receivable $ — $ 19.0 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Schedule of Carrying Value of Individual Components of Debt | The following is the carrying value of the individual components of our debt (in millions): December 31, 2018 September 30, 2018 Public bonds due fiscal 2019 to 2022 $ 1,467.8 $ 1,470.9 Public bonds due fiscal 2023 to 2028 3,278.4 2,534.4 Public bonds due fiscal 2029 to 2033 1,710.9 964.1 Public bonds due fiscal 2037 to 2047 179.2 178.5 Term loan facilities 2,906.0 599.4 Revolving credit and swing facilities 490.3 355.0 Receivables-backed financing facility — — Commercial paper 447.7 — Capital lease obligations 179.1 171.0 Supplier financing and commercial card programs 128.0 105.1 International and other debt 33.4 36.8 Total debt 10,820.8 6,415.2 Less: current portion of debt 1,092.8 740.7 Long-term debt due after one year $ 9,728.0 $ 5,674.5 |
Schedule of aggregate maturities of debt | As of December 31, 2018, the aggregate maturities of debt, excluding capital lease obligations, for the remainder of the current fiscal year and the succeeding four fiscal years and thereafter are as follows (in millions): Remaining fiscal 2019 $ 1,078.1 Fiscal 2020 474.6 Fiscal 2021 350.7 Fiscal 2022 2,249.5 Fiscal 2023 525.5 Thereafter 5,774.0 Fair value of debt step-up, deferred financing costs and unamortized bond discounts 189.3 Total $ 10,641.7 As of December 31, 2018, the aggregate maturities of capital lease obligations for the remainder of the current fiscal year and the succeeding four fiscal years and thereafter are as follows (in millions): Remaining fiscal 2019 $ 3.6 Fiscal 2020 4.3 Fiscal 2021 2.6 Fiscal 2022 2.3 Fiscal 2023 0.8 Thereafter 147.0 Fair value of debt step-up, deferred financing costs and unamortized bond discounts 18.5 Total $ 179.1 |
Selected Condensed Consolidat_2
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF INCOME Three Months Ended December 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 623.3 $ 3,901.4 $ (197.3 ) $ 4,327.4 Cost of goods sold — — 500.4 3,242.5 (197.3 ) 3,545.6 Selling, general and administrative, excluding intangible amortization — 0.1 13.1 387.7 — 400.9 Selling, general and administrative intangible amortization — — 26.1 66.8 — 92.9 Gain on disposal of assets — — — (43.8 ) — (43.8 ) Restructuring and other costs — — 0.1 54.3 — 54.4 Operating (loss) profit — (0.1 ) 83.6 193.9 — 277.4 Interest (expense) income, net — (47.0 ) (49.9 ) 2.5 — (94.4 ) Intercompany interest income (expense), net — 3.0 (27.1 ) 24.1 — — Loss on extinguishment of debt — (1.8 ) — (0.1 ) — (1.9 ) Pension and other postretirement non- service (expense) income — — (1.7 ) 19.0 — 17.3 Other (expense) income, net — (0.6 ) 0.6 (2.7 ) — (2.7 ) Equity in income of unconsolidated entities — — — 6.8 — 6.8 Equity in income of consolidated entities 139.1 188.1 228.7 — (555.9 ) — Income before income taxes 139.1 141.6 234.2 243.5 (555.9 ) 202.5 Income tax benefit (expense) — 14.9 (1.8 ) (75.8 ) — (62.7 ) Consolidated net income 139.1 156.5 232.4 167.7 (555.9 ) 139.8 Less: Net income attributable to noncontrolling interests — — — (0.7 ) — (0.7 ) Net income attributable to common stockholders $ 139.1 $ 156.5 $ 232.4 $ 167.0 $ (555.9 ) $ 139.1 Comprehensive income attributable to common stockholders $ 79.6 $ 97.0 $ 173.2 $ 107.7 $ (377.9 ) $ 79.6 CONDENSED CONSOLIDATING STATEMENTS OF INCOME Three Months Ended December 31, 2017 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 608.0 $ 3,477.3 $ (191.3 ) $ 3,894.0 Cost of goods sold — — 445.4 2,866.4 (191.3 ) 3,120.5 Selling, general and administrative, excluding intangible amortization — — 24.4 356.4 — 380.8 Selling, general and administrative intangible amortization — — 26.0 46.5 — 72.5 Loss on disposal of assets — — — 1.1 — 1.1 Multiemployer pension withdrawal — 6.5 12.5 161.0 — 180.0 Land and Development impairments — — — 27.6 — 27.6 Restructuring and other costs — 0.8 1.1 14.4 — 16.3 Operating (loss) profit — (7.3 ) 98.6 3.9 — 95.2 Interest expense, net — (15.3 ) (44.2 ) (5.3 ) — (64.8 ) Intercompany interest income (expense), net — 5.6 (15.8 ) 10.2 — — Loss on extinguishment of debt — (0.9 ) — (0.1 ) — (1.0 ) Pension and other postretirement non- service (expense) income — — (0.1 ) 24.7 — 24.6 Other income, net — 0.4 1.7 0.4 — 2.5 Equity in income of unconsolidated entities — — 2.5 1.3 — 3.8 Equity in income of consolidated entities — 1,152.0 863.7 — (2,015.7 ) — Income before income taxes — 1,134.5 906.4 35.1 (2,015.7 ) 60.3 Income tax benefit — 0.6 124.5 948.1 — 1,073.2 Consolidated net income — 1,135.1 1,030.9 983.2 (2,015.7 ) 1,133.5 Less: Net loss attributable to noncontrolling interests — — — 1.6 — 1.6 Net income attributable to common stockholders $ — $ 1,135.1 $ 1,030.9 $ 984.8 $ (2,015.7 ) $ 1,135.1 Comprehensive income attributable to common stockholders $ — $ 1,094.8 $ 985.7 $ 944.8 $ (1,930.5 ) $ 1,094.8 |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 50.4 $ 210.3 $ — $ 260.7 Accounts receivable — — 176.0 2,165.6 (26.1 ) 2,315.5 Inventories — — 240.1 1,861.7 — 2,101.8 Other current assets 0.2 — 11.1 497.6 — 508.9 Intercompany receivables — 39.6 598.2 104.5 (742.3 ) — Assets held for sale — — — 39.1 — 39.1 Total current assets 0.2 39.6 1,075.8 4,878.8 (768.4 ) 5,226.0 Property, plant and equipment, net — — 21.9 10,947.8 — 10,969.7 Goodwill — — 1,151.3 6,169.0 — 7,320.3 Intangibles, net — — 1,563.3 2,788.7 — 4,352.0 Restricted assets held by special purpose entities — — — 1,279.4 — 1,279.4 Prepaid pension asset — — — 428.4 — 428.4 Intercompany notes receivable — 155.0 32.5 2,941.1 (3,128.6 ) — Investments in consolidated subsidiaries 11,607.5 17,739.6 19,563.3 — (48,910.4 ) — Other assets — 13.8 163.2 922.9 (8.8 ) 1,091.1 Total Assets $ 11,607.7 $ 17,948.0 $ 23,571.3 $ 30,356.1 $ (52,816.2 ) $ 30,666.9 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 228.0 $ 607.2 $ 257.6 $ — $ 1,092.8 Accounts payable — 5.6 36.2 1,663.8 (26.1 ) 1,679.5 Accrued compensation and benefits 0.2 — 10.1 354.9 — 365.2 Other current liabilities — 32.3 129.9 430.2 — 592.4 Intercompany payables 3.8 381.3 357.2 — (742.3 ) — Total current liabilities 4.0 647.2 1,140.6 2,706.5 (768.4 ) 3,729.9 Long-term debt due after one year — 6,223.2 2,463.7 1,041.1 — 9,728.0 Intercompany notes payable — — 2,941.1 187.5 (3,128.6 ) — Pension liabilities, net of current portion — — 135.2 118.1 — 253.3 Postretirement benefit liabilities, net of current portion — — 28.1 110.9 — 139.0 Non-recourse liabilities held by special purpose entities — — — 1,151.6 — 1,151.6 Deferred income taxes — — 275.2 2,666.2 (8.8 ) 2,932.6 Other long-term liabilities — 15.8 130.3 967.1 — 1,113.2 Redeemable noncontrolling interests — — — 3.8 — 3.8 Total stockholders’ equity 11,603.7 11,061.8 16,457.1 21,391.5 (48,910.4 ) 11,603.7 Noncontrolling interests — — — 11.8 — 11.8 Total equity 11,603.7 11,061.8 16,457.1 21,403.3 (48,910.4 ) 11,615.5 Total Liabilities and Equity $ 11,607.7 $ 17,948.0 $ 23,571.3 $ 30,356.1 $ (52,816.2 ) $ 30,666.9 CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ — $ 0.2 $ 490.8 $ 145.8 $ — $ 636.8 Accounts receivable — 0.1 196.5 1,840.2 (26.1 ) 2,010.7 Inventories — — 233.4 1,596.2 — 1,829.6 Other current assets — 0.4 17.2 230.9 — 248.5 Intercompany receivables — 27.7 285.9 784.0 (1,097.6 ) — Assets held for sale — — — 59.5 — 59.5 Total current assets — 28.4 1,223.8 4,656.6 (1,123.7 ) 4,785.1 Property, plant and equipment, net — — 21.3 9,061.2 — 9,082.5 Goodwill — — 1,151.3 4,426.3 — 5,577.6 Intangibles, net — — 1,589.4 1,532.6 — 3,122.0 Restricted assets held by special purpose entities — — — 1,281.0 — 1,281.0 Prepaid pension asset — — — 420.0 — 420.0 Intercompany notes receivable — 884.2 33.1 2,865.4 (3,782.7 ) — Investments in consolidated subsidiaries — 13,162.8 14,840.2 — (28,003.0 ) — Other assets 3.4 12.4 172.8 910.8 (7.1 ) 1,092.3 Total Assets $ 3.4 $ 14,087.8 $ 19,031.9 $ 25,153.9 $ (32,916.5 ) $ 25,360.5 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ — $ 609.5 $ 131.2 $ — $ 740.7 Accounts payable — 0.8 40.3 1,701.8 (26.1 ) 1,716.8 Accrued compensation and benefits — 0.2 10.7 388.4 — 399.3 Other current liabilities — 3.2 77.7 395.6 — 476.5 Intercompany payables 13.3 408.8 675.5 — (1,097.6 ) — Total current liabilities 13.3 413.0 1,413.7 2,617.0 (1,123.7 ) 3,333.3 Long-term debt due after one year — 2,179.4 2,460.1 1,035.0 — 5,674.5 Intercompany notes payable — — 2,865.4 917.3 (3,782.7 ) — Pension liabilities, net of current portion — — 135.9 125.4 — 261.3 Postretirement benefit liabilities, net of current portion — — 28.1 106.7 — 134.8 Non-recourse liabilities held by special purpose entities — — — 1,153.7 — 1,153.7 Deferred income taxes — — 291.0 2,037.6 (7.1 ) 2,321.5 Other long-term liabilities — 16.1 106.2 872.5 — 994.8 Redeemable noncontrolling interests — — — 4.2 — 4.2 Total stockholders’ equity (9.9 ) 11,479.3 11,731.5 16,271.5 (28,003.0 ) 11,469.4 Noncontrolling interests — — — 13.0 — 13.0 Total equity (9.9 ) 11,479.3 11,731.5 16,284.5 (28,003.0 ) 11,482.4 Total Liabilities and Equity $ 3.4 $ 14,087.8 $ 19,031.9 $ 25,153.9 $ (32,916.5 ) $ 25,360.5 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Operating activities: Net cash provided by (used for) operating activities $ 147.4 $ 83.4 $ (519.0 ) $ 1,163.7 $ (572.4 ) $ 303.1 Investing activities: Capital expenditures — — (1.5 ) (320.5 ) — (322.0 ) Cash paid related to business combinations, net of cash acquired — — — (3,342.9 ) — (3,342.9 ) Proceeds from sale of property, plant and equipment — — — 88.0 — 88.0 Intercompany notes issued — — — (75.7 ) 75.7 — Intercompany notes proceeds — 9.3 0.6 3,800.0 (3,809.9 ) — Intercompany capital investment (563.0 ) (563.0 ) — — 1,126.0 — Other — — 3.8 0.3 — 4.1 Net cash (used for) provided by investing activities (563.0 ) (553.7 ) 2.9 149.2 (2,608.2 ) (3,572.8 ) Financing activities: Proceeds from issuance of notes — 1,498.5 — — — 1,498.5 Additions to revolving credit facilities — 30.7 — 102.9 — 133.6 Additions to debt — 3,800.8 — 5.3 — 3,806.1 Repayments of debt — (1,489.2 ) — (1,358.7 ) — (2,847.9 ) Changes in commercial paper, net — 447.7 — — — 447.7 Other financing additions — 0.7 — 13.9 — 14.6 Issuances of common stock, net of related minimum tax withholdings 12.9 — — — — 12.9 Purchases of common stock (44.2 ) — — — — (44.2 ) Cash dividends paid to stockholders (116.1 ) — — — — (116.1 ) Cash distributions paid to noncontrolling interests — — — (2.2 ) — (2.2 ) Intercompany notes borrowing — — 75.7 — (75.7 ) — Intercompany notes payments — (3,800.0 ) — (9.9 ) 3,809.9 — Intercompany capital receipt 563.0 — — 563.0 (1,126.0 ) — Intercompany dividends — — — (572.4 ) 572.4 — Other — (19.1 ) — 12.7 — (6.4 ) Net cash provided by (used for) financing activities 415.6 470.1 75.7 (1,245.4 ) 3,180.6 2,896.6 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — (3.0 ) — (3.0 ) (Decrease) increase in cash, cash equivalents and restricted cash — (0.2 ) (440.4 ) 64.5 — (376.1 ) Cash, cash equivalents and restricted cash at beginning of period — 0.2 490.8 145.8 — 636.8 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 50.4 $ 210.3 $ — $ 260.7 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2017 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Operating activities: Net cash provided by (used for) operating activities $ — $ 110.0 $ (73.5 ) $ 248.8 $ (39.9 ) $ 245.4 Investing activities: Capital expenditures — — — (214.1 ) — (214.1 ) Cash received related to business combinations — — — 3.4 — 3.4 Cash receipts on sold trade receivables — — — 116.6 — 116.6 Investment in unconsolidated entities — — — (110.7 ) — (110.7 ) Proceeds from sale of property, plant and equipment — — — 12.1 — 12.1 Proceeds from property, plant and equipment insurance settlement — — — 1.5 — 1.5 Intercompany notes issued — — — — — — Intercompany notes proceeds — — 1.1 — (1.1 ) — Intercompany capital investment — — — — — — Intercompany return of capital — — 82.6 — (82.6 ) — Other — — 0.6 — — 0.6 Net cash provided by (used for) investing activities — — 84.3 (191.2 ) (83.7 ) (190.6 ) Financing activities: (Repayments) additions to revolving credit facilities — (80.9 ) — 168.5 — 87.6 Additions to debt — — — 475.3 — 475.3 Repayments of debt — (485.1 ) — (565.5 ) — (1,050.6 ) Changes in commercial paper, net — 554.7 — — — 554.7 Other financing repayments — — (5.8 ) (7.7 ) — (13.5 ) Issuances of common stock, net of related minimum tax withholdings — 11.4 — — — 11.4 Cash dividends paid to stockholders — (109.6 ) — — — (109.6 ) Cash distributions paid to noncontrolling interests — — — (1.5 ) — (1.5 ) Intercompany notes payments — — — (1.1 ) 1.1 — Intercompany capital distribution — — — (82.6 ) 82.6 — Intercompany dividends — — — (39.9 ) 39.9 — Other — — — 0.7 — 0.7 Net cash used for financing activities — (109.5 ) (5.8 ) (53.8 ) 123.6 (45.5 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (0.1 ) (0.9 ) — (1.0 ) Increase in cash, cash equivalents and restricted cash — 0.5 4.9 2.9 — 8.3 Cash, cash equivalents and restricted cash at beginning of period — — 43.3 260.7 — 304.0 Cash, cash equivalents and restricted cash at end of period $ — $ 0.5 $ 48.2 $ 263.6 $ — $ 312.3 |
Summary of Non-Cash Transactions | The table below summarizes these non-cash transactions. Three Months Ended December 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Investing activities: Intercompany notes issued $ — $ (3,800.0 ) $ (4,519.8 ) $ (8,057.5 ) $ 16,377.3 $ — Intercompany notes proceeds $ — $ 4,519.8 $ 4,519.8 $ 4,257.5 $ (13,297.1 ) $ — Intercompany capital investment $ (10,396.2 ) $ (5,434.8 ) $ (5,892.3 ) $ — $ 21,723.3 $ — Intercompany return of capital $ 563.0 $ 1,478.0 $ 915.0 $ — $ (2,956.0 ) $ — Financing activities: Intercompany notes borrowing $ — $ 3,800.0 $ 457.5 $ 12,119.8 $ (16,377.3 ) $ — Intercompany notes payments $ — $ — $ (457.5 ) $ (12,839.6 ) $ 13,297.1 $ — Intercompany capital receipt $ — $ 10,396.2 $ 4,977.3 $ 6,349.8 $ (21,723.3 ) $ — Intercompany capital distribution $ (563.0 ) $ (563.0 ) $ (457.5 ) $ (1,372.5 ) $ 2,956.0 $ — |
Equity and Other Comprehensiv_2
Equity and Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 and December 31, 2017 (in millions): Cash Flow Hedges Defined Benefit Pension and Postretirement Plans Foreign Currency Items Total (1) Balance at September 30, 2018 $ (0.2 ) $ (465.9 ) $ (229.2 ) $ (695.3 ) Other comprehensive loss before reclassifications — — (64.9 ) (64.9 ) Amounts reclassified from accumulated other comprehensive loss — 5.4 — 5.4 Net current period other comprehensive income (loss) — 5.4 (64.9 ) (59.5 ) Balance at December 31, 2018 $ (0.2 ) $ (460.5 ) $ (294.1 ) $ (754.8 ) (1) Cash Flow Hedges Defined Benefit Pension and Postretirement Plans Foreign Currency Items Available for Sale Security Total (1) Balance at September 30, 2017 $ (0.7 ) $ (462.5 ) $ 5.2 $ 0.7 $ (457.3 ) Other comprehensive (loss) income before reclassifications (0.1 ) (2.7 ) (42.0 ) 0.8 (44.0 ) Amounts reclassified from accumulated other comprehensive loss 0.5 3.2 — — 3.7 Net current period other comprehensive income (loss) 0.4 0.5 (42.0 ) 0.8 (40.3 ) Balance at December 31, 2017 $ (0.3 ) $ (462.0 ) $ (36.8 ) $ 1.5 $ (497.6 ) (1) |
Summary of Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the reclassifications out of accumulated other comprehensive income by component (in millions): Three Months Ended Three Months Ended December 31, 2018 December 31, 2017 Pretax Tax Net of Tax Pretax Tax Net of Tax Amortization of defined benefit pension and postretirement items: (1) Actuarial losses (2) $ (6.6 ) $ 1.7 $ (4.9 ) $ (4.4 ) $ 1.2 $ (3.2 ) Prior service costs (2) (0.6 ) 0.1 (0.5 ) — — — Subtotal defined benefit plans (7.2 ) 1.8 (5.4 ) (4.4 ) 1.2 (3.2 ) Derivative Instruments: (1) Foreign currency cash flow hedges (3) — — — (0.7 ) 0.2 (0.5 ) Total reclassifications for the period $ (7.2 ) $ 1.8 $ (5.4 ) $ (5.1 ) $ 1.4 $ (3.7 ) (1) (2) Note 5. Retirement Plans (3) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Numerator: Net income attributable to common stockholders $ 139.1 $ 1,135.1 Less: Distributed and undistributed income available to participating securities — (0.2 ) Distributed and undistributed income available to common stockholders $ 139.1 $ 1,134.9 Denominator: Basic weighted average shares outstanding 254.8 255.0 Effect of dilutive stock options and non- participating securities 4.7 4.2 Diluted weighted average shares outstanding 259.5 259.2 Basic earnings per share attributable to common stockholders $ 0.55 $ 4.45 Diluted earnings per share attributable to common stockholders $ 0.54 $ 4.38 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Pension and other postretirement non-service income | $ 17.3 | $ 24.6 |
Cost of goods sold | 3,545.6 | 3,120.5 |
Selling, general and administrative, excluding intangible amortization | $ 400.9 | 380.8 |
Accounting Standards Update 2017-07 | Difference Between Guidance In Effect Before And After ASU201707 [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Pension and other postretirement non-service income | 24.6 | |
Cost of goods sold | 10 | |
Selling, general and administrative, excluding intangible amortization | 14.6 | |
ASU 2016-15 [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Decrease in cash provided by operating activities | 116.6 | |
Increase in cash provided by investing activities | $ 116.6 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | Oct. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 4,327.4 | $ 3,894 | ||
Cost of goods sold | 3,545.6 | 3,120.5 | ||
Retained earnings | 1,635.3 | $ 1,573.3 | ||
Income tax (expense) benefit | $ (62.7) | $ 1,073.2 | ||
Revenue performance obligation, practical expedient | true | |||
Revenue, performance obligation satisfied at point in time | one year or less | |||
Maximum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Capitalized contract cost, amortization period | 1 year | |||
Impact of Adoption Increase/(Decrease) [Member] | ASC 606 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 183.7 | $ (8.1) | ||
Cost of goods sold | 133.4 | (9) | ||
Retained earnings | 43.5 | 44.2 | ||
Income tax (expense) benefit | $ (6.8) | $ (0.2) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Effect of Adoption of ASC 606 Impact on Condensed Consolidated Statement of Income (Details) - USD ($) $ in Millions | Oct. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 4,327.4 | $ 3,894 | |
Cost of goods sold | 3,545.6 | 3,120.5 | |
Income tax (expense) benefit | (62.7) | 1,073.2 | |
Consolidated net income | 139.8 | $ 1,133.5 | |
ASC 606 [Member] | Balances Without Adoption of ASC 606 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 4,335.5 | ||
Cost of goods sold | 3,554.6 | ||
Income tax (expense) benefit | (62.5) | ||
Consolidated net income | 139.1 | ||
ASC 606 [Member] | Impact of Adoption Increase/(Decrease) [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 183.7 | (8.1) | |
Cost of goods sold | 133.4 | (9) | |
Income tax (expense) benefit | $ (6.8) | (0.2) | |
Consolidated net income | $ 0.7 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Effect of Adoption of ASC 606 Impact on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 |
Disaggregation Of Revenue [Line Items] | |||
Inventories | $ 2,101.8 | $ 1,829.6 | |
Other current assets | 508.9 | 248.5 | |
Other current liabilities | 592.4 | 476.5 | |
Retained earnings | 1,635.3 | $ 1,573.3 | |
ASC 606 [Member] | Balances Without Adoption of ASC 606 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Inventories | 2,238 | ||
Other current assets | 320.3 | ||
Other current liabilities | 592.2 | ||
Retained earnings | 1,591.1 | ||
ASC 606 [Member] | Impact of Adoption Increase/(Decrease) [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Inventories | (136.2) | ||
Other current assets | 188.6 | ||
Other current liabilities | 0.2 | ||
Retained earnings | $ 44.2 | $ 43.5 |
Revenue Recognition - Summary_3
Revenue Recognition - Summary of Effect of Adoption of ASC 606 Impact on Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Consolidated net income | $ 139.8 | $ 1,133.5 |
Other assets | (17.8) | 3.4 |
Inventories | (71.4) | (74) |
Income taxes | (11.5) | $ 118.2 |
ASC 606 [Member] | Balances Without Adoption of ASC 606 [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net income | 139.1 | |
Other assets | (25.9) | |
Inventories | (62.4) | |
Income taxes | (11.7) | |
ASC 606 [Member] | Impact of Adoption Increase/(Decrease) [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net income | 0.7 | |
Other assets | 8.1 | |
Inventories | (9) | |
Income taxes | $ 0.2 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 4,327.4 | $ 3,894 |
Corrugated Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 2,733.8 | |
Consumer Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 1,618.8 | |
Land and Development [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 13.9 | |
Intersegment Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | (39.1) | (38.4) |
Intersegment Sales [Member] | Corrugated Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | (18) | (19.4) |
Intersegment Sales [Member] | Consumer Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | (21.1) | $ (19) |
North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 3,829.3 | |
North America [Member] | Corrugated Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 2,606.5 | |
North America [Member] | Consumer Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 1,247 | |
North America [Member] | Land and Development [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 13.9 | |
North America [Member] | Intersegment Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | (38.1) | |
South America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 128.3 | |
South America [Member] | Corrugated Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 108.8 | |
South America [Member] | Consumer Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 19.5 | |
Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 269.3 | |
Europe [Member] | Consumer Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 269.3 | |
Asia Pacific [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 100.5 | |
Asia Pacific [Member] | Corrugated Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 18.5 | |
Asia Pacific [Member] | Consumer Packaging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 83 | |
Asia Pacific [Member] | Intersegment Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ (1) |
Revenue Recognition - Summary_4
Revenue Recognition - Summary of Opening and Closing Balances of Contract Assets and Contract Liabilities (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue Recognition [Line Items] | |
Short-Term Contract Assets, Beginning balance | $ 183.7 |
(Decrerase) / Increase in Short-Term Contract Assets, Impact of Acquisition | (8.1) |
Short-Term Contract Assets, Ending balance | 188.6 |
Short-Term Contract Liabilities, Beginning balance | 7.9 |
Short-Term Contract Liabilities, Ending balance | 10.2 |
(Decrease) / increase in Short-Term Contract Liabilities | 2.3 |
KapStone Acquisition [Member] | |
Revenue Recognition [Line Items] | |
(Decrerase) / Increase in Short-Term Contract Assets, Impact of Acquisition | $ 13 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 02, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2015 |
Business Acquisition [Line Items] | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Number of WRKCo Shares to WestRock Shares | 1 | |||
WRKCo Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||
KapStone Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Common Stock, Par or Stated Value Per Share | 0.0001 | |||
Business Acquisition, Share Price | $ 35 | |||
Ratio of KapStone Shares to WestRock Shares | 49.81% | |||
Maximum percentage of issued and outstanding KapStone Shares to elect WestRock stock consideration | 25.00% | |||
Estimated Enterprise Value of Acquisition | $ 4,900 | |||
Consideration paid in cash | $ 3,300 | |||
Business acquisition, number of shares issued | 1,600,000 | |||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 70.1 | |||
Business acquisition, percentage of equity interest on shares issued and outsanding | 0.60% | |||
Fair value of share-based awards issued in business combinations | $ 70.8 |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Nov. 02, 2018 | Sep. 30, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 7,320.3 | $ 5,577.6 | |
Total assets acquired | 5,910.2 | ||
Liabilities assumed | $ 2,442.1 | ||
KapStone Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 8.6 | ||
Current assets, excluding cash and cash equivalents | 878.9 | ||
Property, plant and equipment, net | 1,910.3 | ||
Goodwill | 1,755 | ||
Intangible assets | 1,336.1 | ||
Other long-term assets | 27.9 | ||
Total assets acquired | 5,916.8 | ||
Current portion of debt | 33.3 | ||
Current liabilities | 337.5 | ||
Long-term debt due after one year | 1,333.4 | ||
Accrued pension and other long-term benefits | 9.8 | ||
Deferred income taxes | 609.7 | ||
Other long-term liabilities | 118.4 | ||
Liabilities assumed | 2,442.1 | ||
Net assets acquired | $ 3,474.7 |
Acquisitions - Summary of Weigh
Acquisitions - Summary of Weighted Average Life and Allocation to Intangible Asset Recognized in KapStone Acquisition, Excluding Goodwill (Details) - KapStone Acquisition [Member] $ in Millions | Nov. 02, 2018USD ($) |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 11 years 9 months 18 days |
Gross Carrying Amount | $ 1,336.1 |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 11 years 7 months 6 days |
Gross Carrying Amount | $ 1,270 |
Trademarks and Tradenames [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 17 years |
Gross Carrying Amount | $ 56.9 |
Favorable Contracts [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 5 years 10 months 24 days |
Gross Carrying Amount | $ 9.2 |
Restructuring and Other Costs -
Restructuring and Other Costs - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | ||
Restructuring and other costs | $ 54.4 | $ 16.3 |
Restructuring and Other Costs_2
Restructuring and Other Costs - Schedule of Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | ||
Restructuring | $ 25.7 | $ 4.4 |
Other | 28.7 | 11.9 |
Restructuring and other costs | $ 54.4 | $ 16.3 |
Restructuring and Other Costs_3
Restructuring and Other Costs - Schedule of Restructuring Charges Related to Active Restructuring Initiatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | $ 25.7 | $ 4.4 |
Restructuring and Related Cost, Cost Incurred to Date | 554.6 | |
Restructuring and Related Cost, Expected Cost | 559.2 | |
Net Property, Plant and Equipment [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 3.1 | 1.6 |
Restructuring and Related Cost, Cost Incurred to Date | 242.4 | |
Restructuring and Related Cost, Expected Cost | 242.4 | |
Severance and Other Employee Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 20.6 | (0.2) |
Restructuring and Related Cost, Cost Incurred to Date | 212.6 | |
Restructuring and Related Cost, Expected Cost | 213 | |
Equipment and Inventory Relocation Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0.7 | 1.9 |
Restructuring and Related Cost, Cost Incurred to Date | 13.7 | |
Restructuring and Related Cost, Expected Cost | 14.8 | |
Facility Carrying Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0.9 | 1.2 |
Restructuring and Related Cost, Cost Incurred to Date | 31.8 | |
Restructuring and Related Cost, Expected Cost | 34.5 | |
Other Costs Related to Restructuring and Other Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0.4 | (0.1) |
Restructuring and Related Cost, Cost Incurred to Date | 54.1 | |
Restructuring and Related Cost, Expected Cost | 54.5 | |
Corporate, Non-Segment [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 14.1 | 0.7 |
Restructuring and Related Cost, Cost Incurred to Date | 131.6 | |
Restructuring and Related Cost, Expected Cost | 131.6 | |
Corporate, Non-Segment [Member] | Net Property, Plant and Equipment [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Cost Incurred to Date | 1.4 | |
Restructuring and Related Cost, Expected Cost | 1.4 | |
Corporate, Non-Segment [Member] | Severance and Other Employee Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 14.2 | 0.2 |
Restructuring and Related Cost, Cost Incurred to Date | 114.8 | |
Restructuring and Related Cost, Expected Cost | 114.8 | |
Corporate, Non-Segment [Member] | Other Costs Related to Restructuring and Other Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | (0.1) | 0.5 |
Restructuring and Related Cost, Cost Incurred to Date | 15.4 | |
Restructuring and Related Cost, Expected Cost | 15.4 | |
Corrugated Packaging [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 11.2 | 3.7 |
Restructuring and Related Cost, Cost Incurred to Date | 290.3 | |
Restructuring and Related Cost, Expected Cost | 294.1 | |
Corrugated Packaging [Member] | Net Property, Plant and Equipment [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 3.1 | 0.6 |
Restructuring and Related Cost, Cost Incurred to Date | 198.3 | |
Restructuring and Related Cost, Expected Cost | 198.3 | |
Corrugated Packaging [Member] | Severance and Other Employee Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 6.6 | 1.1 |
Restructuring and Related Cost, Cost Incurred to Date | 43.5 | |
Restructuring and Related Cost, Expected Cost | 43.7 | |
Corrugated Packaging [Member] | Equipment and Inventory Relocation Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0.4 | 1.5 |
Restructuring and Related Cost, Cost Incurred to Date | 6.3 | |
Restructuring and Related Cost, Expected Cost | 7.2 | |
Corrugated Packaging [Member] | Facility Carrying Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 1.1 | 0.8 |
Restructuring and Related Cost, Cost Incurred to Date | 29.4 | |
Restructuring and Related Cost, Expected Cost | 31.7 | |
Corrugated Packaging [Member] | Other Costs Related to Restructuring and Other Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | (0.3) | |
Restructuring and Related Cost, Cost Incurred to Date | 12.8 | |
Restructuring and Related Cost, Expected Cost | 13.2 | |
Consumer Packaging [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0.5 | (0.4) |
Restructuring and Related Cost, Cost Incurred to Date | 114.2 | |
Restructuring and Related Cost, Expected Cost | 115 | |
Consumer Packaging [Member] | Net Property, Plant and Equipment [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 1 | |
Restructuring and Related Cost, Cost Incurred to Date | 40.9 | |
Restructuring and Related Cost, Expected Cost | 40.9 | |
Consumer Packaging [Member] | Severance and Other Employee Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | (0.1) | (1.9) |
Restructuring and Related Cost, Cost Incurred to Date | 40.6 | |
Restructuring and Related Cost, Expected Cost | 40.8 | |
Consumer Packaging [Member] | Equipment and Inventory Relocation Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0.3 | 0.4 |
Restructuring and Related Cost, Cost Incurred to Date | 7.4 | |
Restructuring and Related Cost, Expected Cost | 7.6 | |
Consumer Packaging [Member] | Facility Carrying Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | (0.2) | 0.4 |
Restructuring and Related Cost, Cost Incurred to Date | 2.4 | |
Restructuring and Related Cost, Expected Cost | 2.8 | |
Consumer Packaging [Member] | Other Costs Related to Restructuring and Other Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0.5 | (0.3) |
Restructuring and Related Cost, Cost Incurred to Date | 22.9 | |
Restructuring and Related Cost, Expected Cost | 22.9 | |
Land and Development [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | (0.1) | 0.4 |
Restructuring and Related Cost, Cost Incurred to Date | 18.5 | |
Restructuring and Related Cost, Expected Cost | 18.5 | |
Land and Development [Member] | Net Property, Plant and Equipment [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Cost Incurred to Date | 1.8 | |
Restructuring and Related Cost, Expected Cost | 1.8 | |
Land and Development [Member] | Severance and Other Employee Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | (0.1) | $ 0.4 |
Restructuring and Related Cost, Cost Incurred to Date | 13.7 | |
Restructuring and Related Cost, Expected Cost | 13.7 | |
Land and Development [Member] | Other Costs Related to Restructuring and Other Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and Related Cost, Cost Incurred to Date | 3 | |
Restructuring and Related Cost, Expected Cost | $ 3 |
Restructuring and Other Costs_4
Restructuring and Other Costs - Schedule of Acquisition, Divestiture and Integration Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||
Acquisition costs | $ 24 | $ 1.9 |
Divestiture costs | 0.1 | 0.3 |
Integration costs | 4.6 | 9.7 |
Other total | 28.7 | 11.9 |
Other Segments [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Acquisition costs | 24 | 1.9 |
Divestiture costs | 0.1 | 0.3 |
Integration costs | 4.6 | 9.7 |
Other total | $ 28.7 | $ 11.9 |
Restructuring and Other Costs_5
Restructuring and Other Costs - Schedule of Changes in Restructuring Accrual Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring And Other Costs [Abstract] | ||
Accrual at beginning of fiscal year | $ 31.6 | $ 47.4 |
Additional accruals | 16.6 | 2 |
Payments | (9.8) | (8.6) |
Adjustment to accruals | (1.9) | (3.7) |
Foreign currency rate changes | 0.2 | (0.3) |
Accrual at December 31 | $ 36.7 | $ 36.8 |
Restructuring and Other Costs_6
Restructuring and Other Costs - Schedule of Reconciliation of Accruals and Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring And Other Costs [Abstract] | ||
Additional accruals and adjustments to accruals (see table above) | $ 14.7 | $ (1.7) |
Acquisition costs | 24 | 1.9 |
Integration costs | 4.6 | 9.7 |
Divestiture costs | 0.1 | 0.3 |
Net property, plant and equipment | 3.1 | 1.6 |
Severance and other employee costs | 5.8 | 0.4 |
Equipment and inventory relocation costs | 0.7 | 1.9 |
Facility carrying costs | 0.9 | 1.2 |
Other costs | 0.5 | 1 |
Restructuring and other costs | $ 54.4 | $ 16.3 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Multiemployer Plans, Withdrawal Obligation | $ 239.4 | $ 247.8 | ||
Periods of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal | 20 years | |||
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Contributions by employer to pension and supplemental retirement plans | 4 | $ 8.5 | ||
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 | $ 2.7 | 2.8 | ||
Pace Industry Union Management Pension Fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Multiemployer Plans, Withdrawal Obligation | $ 180 | |||
Central States, Southeast and Southwest Areas Pension Fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Multiemployer Plans, Withdrawal Obligation | $ 4.2 |
Retirement Plans - Summary of C
Retirement Plans - Summary of Components of Net Pension (Income) Cost and Summary of Components of Postretirement Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Multiemployer pension withdrawals | $ 180 | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 10.9 | 11.6 |
Interest cost | 56.5 | 50.9 |
Expected return on plan assets | (82.9) | (82.1) |
Amortization of net actuarial loss (gain) | 7 | 4.6 |
Amortization of prior service cost (credit) | 1.3 | 1.1 |
Company defined benefit plan income | (7.2) | (13.9) |
Multiemployer pension withdrawals | 180 | |
Multiemployer and other plans | 0.2 | 0.8 |
Net pension (income) cost | (7) | 166.9 |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.3 | 0.4 |
Interest cost | 1.9 | 2 |
Amortization of net actuarial loss (gain) | (0.4) | |
Amortization of prior service cost (credit) | (0.7) | (1.1) |
Net pension (income) cost | $ 1.1 | $ 1.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 31.00% | (1779.80%) |
Tax cuts and jobs act, accounting complete | true | |
Income tax expense from revaluation of deferred tax assets and liabilities | $ 0.4 | |
Additional income tax expense from transition tax provisional liability | $ 3.7 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Reserve for Uncertain Tax Position (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2018USD ($) | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of fiscal year | $ 127.1 | |
Additions related to purchase accounting | 1 | [1] |
Additions for tax positions taken in current year | 100.2 | [2] |
Additions for tax positions taken in prior fiscal years | 1 | |
Additions for currency translation adjustments | 0.8 | |
Reductions as a result of a lapse of the applicable statute of limitations | (0.7) | |
Balance at end of period | $ 229.4 | |
[1] | Adjustment in fiscal 2019 relates to the KapStone Acquisition. | |
[2] | Additions for tax positions taken in current fiscal year includes primarily positions taken related to foreign subsidiaries |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Certain O
Segment Information - Certain Operating Data for Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 4,327.4 | $ 3,894 | |
Multiemployer pension withdrawals | (180) | ||
Land and Development impairments | (27.6) | ||
Restructuring and other costs | (54.4) | (16.3) | |
Interest expense, net | (94.4) | (64.8) | |
Loss on extinguishment of debt | (1.9) | (1) | |
Other (expense) income, net | (2.7) | 2.5 | |
Income before income taxes | 202.5 | 60.3 | |
Identifiable assets | 30,666.9 | $ 25,360.5 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,366.5 | 3,932.4 | |
Segment income | 324.4 | 363.4 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (39.1) | (38.4) | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of certain closed facilities | 50.5 | ||
Multiemployer pension withdrawals | (180) | ||
Land and Development impairments | (27.6) | ||
Non-allocated expenses | (19) | (15.9) | |
Interest expense, net | (94.4) | (64.8) | |
Loss on extinguishment of debt | (1.9) | (1) | |
Other (expense) income, net | (2.7) | 2.5 | |
Corrugated Packaging [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,733.8 | ||
Identifiable assets | 16,438.7 | 11,069.6 | |
Corrugated Packaging [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,733.8 | 2,319.7 | |
Segment income | 246.8 | 269.9 | |
Corrugated Packaging [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (18) | (19.4) | |
Corrugated Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,715.8 | 2,300.3 | |
Consumer Packaging [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,618.8 | ||
Identifiable assets | 11,437.5 | 11,511.1 | |
Consumer Packaging [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,618.8 | 1,601.3 | |
Segment income | 76.9 | 94.2 | |
Consumer Packaging [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (21.1) | (19) | |
Consumer Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,597.7 | 1,582.3 | |
Land and Development [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 13.9 | ||
Identifiable assets | 47.6 | 49.1 | |
Land and Development [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 13.9 | 11.4 | |
Segment income | 0.7 | (0.7) | |
Land and Development [Member] | Unaffiliated Customers [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 13.9 | $ 11.4 | |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 39.1 | 59.5 | |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 2,704 | $ 2,671.2 |
Segment Information - Changes i
Segment Information - Changes in Carrying Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Gross beginning of period | $ 5,620.4 |
Accumulated impairment losses, beginning of period | (42.8) |
Goodwill, beginning of period | 5,577.6 |
Goodwill acquired | 1,755 |
Purchase price allocation adjustments | 0.9 |
Translation adjustments | (13.2) |
Goodwill, Gross end of period | 7,363.1 |
Accumulated impairment losses, end of period | (42.8) |
Goodwill, end of period | 7,320.3 |
Corrugated Packaging [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Gross beginning of period | 1,966.8 |
Accumulated impairment losses, beginning of period | (0.1) |
Goodwill, beginning of period | 1,966.7 |
Goodwill acquired | 1,755 |
Purchase price allocation adjustments | 0.9 |
Translation adjustments | 2.8 |
Goodwill, Gross end of period | 3,725.5 |
Accumulated impairment losses, end of period | (0.1) |
Goodwill, end of period | 3,725.4 |
Consumer Packaging [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Gross beginning of period | 3,653.6 |
Accumulated impairment losses, beginning of period | (42.7) |
Goodwill, beginning of period | 3,610.9 |
Translation adjustments | (16) |
Goodwill, Gross end of period | 3,637.6 |
Accumulated impairment losses, end of period | (42.7) |
Goodwill, end of period | $ 3,594.9 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Inventories [Abstract] | ||
Finished goods and work in process | $ 921 | $ 867 |
Raw materials | 862.7 | 730 |
Spare parts and supplies | 463.7 | 368.2 |
Inventories at FIFO cost | 2,247.4 | 1,965.2 |
LIFO reserve | (145.6) | (135.6) |
Net inventories | $ 2,101.8 | $ 1,829.6 |
Assets Held For Sale - Addition
Assets Held For Sale - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 39.1 | $ 59.5 |
Land and Development Portfolio Assets [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 22 | $ 33.5 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Property, plant and equipment at cost: | ||
Property, plant and equipment, at cost | $ 16,531.8 | $ 14,419.9 |
Less: accumulated depreciation, depletion and amortization | (5,562.1) | (5,337.4) |
Property, plant and equipment, net | 10,969.7 | 9,082.5 |
Land and Buildings [Member] | ||
Property, plant and equipment at cost: | ||
Property, plant and equipment, at cost | 2,349.5 | 2,078.9 |
Machinery and Equipment [Member] | ||
Property, plant and equipment at cost: | ||
Property, plant and equipment, at cost | 13,889.7 | 12,064 |
Forestlands and Mineral Rights [Member] | ||
Property, plant and equipment at cost: | ||
Property, plant and equipment, at cost | 162.8 | 158 |
Transportation Equipment [Member] | ||
Property, plant and equipment at cost: | ||
Property, plant and equipment, at cost | 30.6 | 30.1 |
Leasehold Improvements [Member] | ||
Property, plant and equipment at cost: | ||
Property, plant and equipment, at cost | $ 99.2 | $ 88.9 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 25, 2018 | Sep. 29, 2017 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Land and Development impairments | $ 27.6 | |||
Maximum eligible receivables that may be sold | $ 550 | $ 490 | ||
Estimated loss on sale of accounts receivable in a fiscal year | $ 4 | |||
ASU 2016-15 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Decrease in cash provided by operating activities | 116.6 | |||
Increase in cash provided by investing activities | 116.6 | |||
Real Estate [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Impairment of intangible assets, finite-lived | 4 | |||
Mineral Rights [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Impairment of intangible assets, finite-lived | $ 23.6 |
Fair Value - Summary of Activit
Fair Value - Summary of Activity Under A/R Sales Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Receivable from financial institution at beginning of fiscal year | $ 24.9 | |
Receivables sold to the financial institution and derecognized | $ 453.8 | 385.6 |
Receivables collected by financial institution | (470.9) | (369.2) |
Cash paid to (proceeds from) financial institution | $ 17.1 | (22.3) |
Receivable from financial institution at December 31 | $ 19 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Value of Individual Components of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 10,820.8 | $ 6,415.2 |
Less: current portion of debt | 1,092.8 | 740.7 |
Long-term debt due after one year | 9,728 | 5,674.5 |
Notes Due Fiscal 2019 to 2022 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 1,467.8 | 1,470.9 |
Notes Due Fiscal 2023 to 2028 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 3,278.4 | 2,534.4 |
Notes Due Fiscal 2029 to 2033 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 1,710.9 | 964.1 |
Notes Due Fiscal 2037 to 2047 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 179.2 | 178.5 |
Term Loan Facilities [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 2,906 | 599.4 |
Revolving Credit and Swing Facilities [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 490.3 | 355 |
Commercial Paper [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 447.7 | |
Capital Lease Obligations [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 179.1 | 171 |
Supplier Financing and Commercial Card Programs [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 128 | 105.1 |
International and Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 33.4 | $ 36.8 |
Debt - Additional Information (
Debt - Additional Information (Details) | Dec. 07, 2018USD ($) | Dec. 03, 2018USD ($) | Apr. 27, 2018EUR (€) | Mar. 07, 2018USD ($) | Jul. 22, 2016USD ($) | Oct. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||
Fair value of debt | $ 10,800,000,000 | $ 6,400,000,000 | |||||||
Repayment of debt | $ 2,847,900,000 | $ 1,050,600,000 | |||||||
DDTL Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, maximum borrowing capacity | $ 3,800,000,000 | ||||||||
Debt instrument, interest rate description | The applicable interest rate margin will be 1.125% to 2.000% per annum for LIBOR rate loans and 0.125% to 1.000% per annum for alternate base rate loans, in each case depending on the Leverage Ratio (as defined in the credit agreement) or our corporate credit ratings, whichever yields a lower applicable interest rate margin, at such time. | ||||||||
Debt issuance costs | $ 7,100,000 | ||||||||
Maximum [Member] | LIBOR [Member] | DDTL Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 2.00% | ||||||||
Maximum [Member] | Base Rate [Member] | DDTL Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 1.00% | ||||||||
Minimum [Member] | LIBOR [Member] | DDTL Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 1.125% | ||||||||
Minimum [Member] | Base Rate [Member] | DDTL Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 0.125% | ||||||||
Senior Notes due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, aggregate principal amount | $ 750,000,000 | ||||||||
Debt instrument, interest rate | 4.65% | ||||||||
Debt instrument, maturity year | 2,026 | ||||||||
Debt instrument, discount | $ 1,100,000 | ||||||||
Debt instrument, issuance costs | $ 6,000,000 | ||||||||
Debt instrument, effective interest rate | 4.80% | ||||||||
Senior Notes due 2029 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, aggregate principal amount | $ 750,000,000 | ||||||||
Debt instrument, interest rate | 4.90% | ||||||||
Debt instrument, maturity year | 2,029 | ||||||||
Debt instrument, discount | $ 400,000 | ||||||||
Debt instrument, issuance costs | $ 6,200,000 | ||||||||
Debt instrument, effective interest rate | 5.01% | ||||||||
364-Day Term Loan [Member] | DDTL Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, maximum borrowing capacity | $ 300,000,000 | ||||||||
Debt instrument, maturity period | 364 days | 364 days | |||||||
Repayment of debt | $ 300,000,000 | ||||||||
Three Year Term Loan [Member] | DDTL Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, maximum borrowing capacity | $ 1,750,000,000 | ||||||||
Debt instrument, maturity period | 3 years | 3 years | |||||||
Long-term Debt | 822,600,000 | ||||||||
Prepayment of outstanding principle amount | $ 926,500,000 | ||||||||
Five Year Term Loan | DDTL Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, maximum borrowing capacity | $ 1,750,000,000 | ||||||||
Debt instrument, maturity period | 5 years | 5 years | |||||||
Long-term Debt | 1,484,000,000 | ||||||||
Prepayment of outstanding principle amount | $ 262,500,000 | ||||||||
Unsecured Debt [Member] | Cooperatieve Rabobank U.A., New York Branch European Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, maximum borrowing capacity | € | € 500,000,000 | ||||||||
Line of credit facility, maximum Euro denominated borrowing capacity | € | € 500,000,000 | ||||||||
Credit facility, maturity date | Apr. 27, 2021 | ||||||||
Long-term Debt | 460,000,000 | ||||||||
Unsecured Debt [Member] | Commercial Paper [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | 250,000,000 | ||||||||
Aggregate Principal Amount of Short-term Unsecured Commercial Paper Program, Maximum | $ 1,000,000,000 | $ 1,000,000,000 | |||||||
Debt Instrument, notice period for termination | 30 days | ||||||||
Borrowings outstanding | $ 447,700,000 | ||||||||
Average borrowing rate | 2.99% | ||||||||
Unsecured Debt [Member] | Commercial Paper [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, maturity period | 397 days | 397 days | |||||||
Unsecured Debt [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, maximum borrowing capacity | $ 2,000,000,000 | ||||||||
Secured Debt [Member] | Receivables Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Receivables backed financing, maximum borrowing amount | $ 700,000,000 | ||||||||
Debt instrument, maturity date | Jul. 22, 2019 | ||||||||
Debt instrument, maximum borrowing capacity, amount | 564,300,000 | $ 571,000,000 | |||||||
Loans and Leases Receivable, Collateral for Secured Borrowings | 848,800,000 | ||||||||
Unsecured Debt [Member] | Cooperatieve Rabobank U.A., New York Branch European Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Incremental line of credit | € | € 100,000,000 | ||||||||
Debt instrument, maturity period | 3 years | ||||||||
Unsecured Debt [Member] | Cooperatieve Rabobank U.A., New York Branch European Revolving Credit Facility [Member] | Foreign Exchange Contracts [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of foreign exchange contracts | $ 461,500,000 |
Debt - Schedule of Aggregate Ma
Debt - Schedule of Aggregate Maturities of Debt (Details) $ in Millions | Dec. 31, 2018USD ($) |
Long-term Debt, Excluding Capital Lease Obligations [Member] | |
Debt Instrument [Line Items] | |
Remaining fiscal 2019 | $ 1,078.1 |
Fiscal 2,020 | 474.6 |
Fiscal 2,021 | 350.7 |
Fiscal 2,022 | 2,249.5 |
Fiscal 2,023 | 525.5 |
Thereafter | 5,774 |
Fair value of debt step-up, deferred financing costs and unamortized bond discounts | 189.3 |
Total | 10,641.7 |
Capital Lease Obligations [Member] | Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Remaining fiscal 2019 | 3.6 |
Fiscal 2,020 | 4.3 |
Fiscal 2,021 | 2.6 |
Fiscal 2,022 | 2.3 |
Fiscal 2,023 | 0.8 |
Thereafter | 147 |
Fair value of debt step-up, deferred financing costs and unamortized bond discounts | 18.5 |
Total | $ 179.1 |
Selected Condensed Consolidat_3
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors - Additional Information (Details) - USD ($) $ in Millions | Mar. 06, 2018 | Aug. 24, 2017 |
Senior Notes due 2024 [Member] | ||
Financial Statements Of Parent Guarantors And Non Guarantors [Line Items] | ||
Debt instrument, face amount | $ 500 | |
Debt instrument, interest rate | 3.00% | |
Senior Notes due 2025 [Member] | ||
Financial Statements Of Parent Guarantors And Non Guarantors [Line Items] | ||
Debt instrument, face amount | $ 600 | |
Debt instrument, interest rate | 3.75% | |
Senior Notes due 2027 [Member] | ||
Financial Statements Of Parent Guarantors And Non Guarantors [Line Items] | ||
Debt instrument, face amount | $ 500 | |
Debt instrument, interest rate | 3.375% | |
Senior Notes due 2028 [Member] | ||
Financial Statements Of Parent Guarantors And Non Guarantors [Line Items] | ||
Debt instrument, face amount | $ 600 | |
Debt instrument, interest rate | 4.00% |
Selected Condensed Consolidat_4
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors - Condensed Consolidating Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements Captions [Line Items] | ||
Net sales | $ 4,327.4 | $ 3,894 |
Cost of goods sold | 3,545.6 | 3,120.5 |
Selling, general and administrative, excluding intangible amortization | 400.9 | 380.8 |
Selling, general and administrative intangible amortization | 92.9 | 72.5 |
Multiemployer pension withdrawals | 180 | |
Land and Development impairments | 27.6 | |
(Gain) loss on disposal of assets | (43.8) | 1.1 |
Restructuring and other costs | 54.4 | 16.3 |
Operating profit (loss) | 277.4 | 95.2 |
Interest (expense) income, net | (94.4) | (64.8) |
Loss on extinguishment of debt | (1.9) | (1) |
Pension and other postretirement non- service (expense) income | 17.3 | 24.6 |
Other (expense) income, net | (2.7) | 2.5 |
Equity in income of unconsolidated entities | 6.8 | 3.8 |
Income before income taxes | 202.5 | 60.3 |
Income tax benefit (expense) | (62.7) | 1,073.2 |
Consolidated net income | 139.8 | 1,133.5 |
Less: Net (income) loss attributable to noncontrolling interests | (0.7) | 1.6 |
Net income attributable to common stockholders | 139.1 | 1,135.1 |
Comprehensive income attributable to common stockholders | 79.6 | 1,094.8 |
Parent [Member] | ||
Condensed Income Statements Captions [Line Items] | ||
Equity in income of consolidated entities | 139.1 | |
Income before income taxes | 139.1 | |
Consolidated net income | 139.1 | |
Net income attributable to common stockholders | 139.1 | |
Comprehensive income attributable to common stockholders | 79.6 | |
Issuer [Member] | ||
Condensed Income Statements Captions [Line Items] | ||
Selling, general and administrative, excluding intangible amortization | 0.1 | |
Multiemployer pension withdrawals | 6.5 | |
Restructuring and other costs | 0.8 | |
Operating profit (loss) | (0.1) | (7.3) |
Interest (expense) income, net | (47) | (15.3) |
Intercompany interest income (expense), net | 3 | 5.6 |
Loss on extinguishment of debt | (1.8) | (0.9) |
Other (expense) income, net | (0.6) | 0.4 |
Equity in income of consolidated entities | 188.1 | 1,152 |
Income before income taxes | 141.6 | 1,134.5 |
Income tax benefit (expense) | 14.9 | 0.6 |
Consolidated net income | 156.5 | 1,135.1 |
Net income attributable to common stockholders | 156.5 | 1,135.1 |
Comprehensive income attributable to common stockholders | 97 | 1,094.8 |
Guarantor Subsidiaries [Member] | ||
Condensed Income Statements Captions [Line Items] | ||
Net sales | 623.3 | 608 |
Cost of goods sold | 500.4 | 445.4 |
Selling, general and administrative, excluding intangible amortization | 13.1 | 24.4 |
Selling, general and administrative intangible amortization | 26.1 | 26 |
Multiemployer pension withdrawals | 12.5 | |
Restructuring and other costs | 0.1 | 1.1 |
Operating profit (loss) | 83.6 | 98.6 |
Interest (expense) income, net | (49.9) | (44.2) |
Intercompany interest income (expense), net | (27.1) | (15.8) |
Pension and other postretirement non- service (expense) income | (1.7) | (0.1) |
Other (expense) income, net | 0.6 | 1.7 |
Equity in income of unconsolidated entities | 2.5 | |
Equity in income of consolidated entities | 228.7 | 863.7 |
Income before income taxes | 234.2 | 906.4 |
Income tax benefit (expense) | (1.8) | 124.5 |
Consolidated net income | 232.4 | 1,030.9 |
Net income attributable to common stockholders | 232.4 | 1,030.9 |
Comprehensive income attributable to common stockholders | 173.2 | 985.7 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Income Statements Captions [Line Items] | ||
Net sales | 3,901.4 | 3,477.3 |
Cost of goods sold | 3,242.5 | 2,866.4 |
Selling, general and administrative, excluding intangible amortization | 387.7 | 356.4 |
Selling, general and administrative intangible amortization | 66.8 | 46.5 |
Multiemployer pension withdrawals | 161 | |
Land and Development impairments | 27.6 | |
(Gain) loss on disposal of assets | (43.8) | 1.1 |
Restructuring and other costs | 54.3 | 14.4 |
Operating profit (loss) | 193.9 | 3.9 |
Interest (expense) income, net | 2.5 | (5.3) |
Intercompany interest income (expense), net | 24.1 | 10.2 |
Loss on extinguishment of debt | (0.1) | (0.1) |
Pension and other postretirement non- service (expense) income | 19 | 24.7 |
Other (expense) income, net | (2.7) | 0.4 |
Equity in income of unconsolidated entities | 6.8 | 1.3 |
Income before income taxes | 243.5 | 35.1 |
Income tax benefit (expense) | (75.8) | 948.1 |
Consolidated net income | 167.7 | 983.2 |
Less: Net (income) loss attributable to noncontrolling interests | (0.7) | 1.6 |
Net income attributable to common stockholders | 167 | 984.8 |
Comprehensive income attributable to common stockholders | 107.7 | 944.8 |
Eliminations [Member] | ||
Condensed Income Statements Captions [Line Items] | ||
Net sales | (197.3) | (191.3) |
Cost of goods sold | (197.3) | (191.3) |
Equity in income of consolidated entities | (555.9) | (2,015.7) |
Income before income taxes | (555.9) | (2,015.7) |
Consolidated net income | (555.9) | (2,015.7) |
Net income attributable to common stockholders | (555.9) | (2,015.7) |
Comprehensive income attributable to common stockholders | $ (377.9) | $ (1,930.5) |
Selected Condensed Consolidat_5
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | |||
Cash and cash equivalents | $ 260.7 | $ 636.8 | |
Accounts receivable | 2,315.5 | 2,010.7 | |
Inventories | 2,101.8 | 1,829.6 | |
Other current assets | 508.9 | 248.5 | |
Assets held for sale | 39.1 | 59.5 | |
Total current assets | 5,226 | 4,785.1 | |
Property, plant and equipment, net | 10,969.7 | 9,082.5 | |
Goodwill | 7,320.3 | 5,577.6 | |
Intangibles, net | 4,352 | 3,122 | |
Restricted assets held by special purpose entities | 1,279.4 | 1,281 | |
Prepaid pension asset | 428.4 | 420 | |
Other assets | 1,091.1 | 1,092.3 | |
Total Assets | 30,666.9 | 25,360.5 | |
Current liabilities: | |||
Current portion of debt | 1,092.8 | 740.7 | |
Accounts payable | 1,679.5 | 1,716.8 | |
Accrued compensation and benefits | 365.2 | 399.3 | |
Other current liabilities | 592.4 | 476.5 | |
Total current liabilities | 3,729.9 | 3,333.3 | |
Long-term debt due after one year | 9,728 | 5,674.5 | |
Pension liabilities, net of current portion | 253.3 | 261.3 | |
Postretirement benefit liabilities, net of current portion | 139 | 134.8 | |
Non-recourse liabilities held by special purpose entities | 1,151.6 | 1,153.7 | |
Deferred income taxes | 2,932.6 | 2,321.5 | |
Other long-term liabilities | 1,113.2 | 994.8 | |
Redeemable noncontrolling interests | 3.8 | 4.2 | |
Total stockholders’ equity | 11,603.7 | 11,469.4 | $ 11,353.4 |
Noncontrolling interests | 11.8 | 13 | |
Total equity | 11,615.5 | 11,482.4 | $ 11,393.6 |
Total Liabilities and Equity | 30,666.9 | 25,360.5 | |
Parent [Member] | |||
Current Assets: | |||
Other current assets | 0.2 | ||
Total current assets | 0.2 | ||
Investments in consolidated subsidiaries | 11,607.5 | ||
Other assets | 3.4 | ||
Total Assets | 11,607.7 | 3.4 | |
Current liabilities: | |||
Accrued compensation and benefits | 0.2 | ||
Intercompany payables | 3.8 | 13.3 | |
Total current liabilities | 4 | 13.3 | |
Total stockholders’ equity | 11,603.7 | (9.9) | |
Total equity | 11,603.7 | (9.9) | |
Total Liabilities and Equity | 11,607.7 | 3.4 | |
Issuer [Member] | |||
Current Assets: | |||
Cash and cash equivalents | 0.2 | ||
Accounts receivable | 0.1 | ||
Other current assets | 0.4 | ||
Intercompany receivables | 39.6 | 27.7 | |
Total current assets | 39.6 | 28.4 | |
Intercompany notes receivable | 155 | 884.2 | |
Investments in consolidated subsidiaries | 17,739.6 | 13,162.8 | |
Other assets | 13.8 | 12.4 | |
Total Assets | 17,948 | 14,087.8 | |
Current liabilities: | |||
Current portion of debt | 228 | ||
Accounts payable | 5.6 | 0.8 | |
Accrued compensation and benefits | 0.2 | ||
Other current liabilities | 32.3 | 3.2 | |
Intercompany payables | 381.3 | 408.8 | |
Total current liabilities | 647.2 | 413 | |
Long-term debt due after one year | 6,223.2 | 2,179.4 | |
Other long-term liabilities | 15.8 | 16.1 | |
Total stockholders’ equity | 11,061.8 | 11,479.3 | |
Total equity | 11,061.8 | 11,479.3 | |
Total Liabilities and Equity | 17,948 | 14,087.8 | |
Guarantor Subsidiaries [Member] | |||
Current Assets: | |||
Cash and cash equivalents | 50.4 | 490.8 | |
Accounts receivable | 176 | 196.5 | |
Inventories | 240.1 | 233.4 | |
Other current assets | 11.1 | 17.2 | |
Intercompany receivables | 598.2 | 285.9 | |
Total current assets | 1,075.8 | 1,223.8 | |
Property, plant and equipment, net | 21.9 | 21.3 | |
Goodwill | 1,151.3 | 1,151.3 | |
Intangibles, net | 1,563.3 | 1,589.4 | |
Intercompany notes receivable | 32.5 | 33.1 | |
Investments in consolidated subsidiaries | 19,563.3 | 14,840.2 | |
Other assets | 163.2 | 172.8 | |
Total Assets | 23,571.3 | 19,031.9 | |
Current liabilities: | |||
Current portion of debt | 607.2 | 609.5 | |
Accounts payable | 36.2 | 40.3 | |
Accrued compensation and benefits | 10.1 | 10.7 | |
Other current liabilities | 129.9 | 77.7 | |
Intercompany payables | 357.2 | 675.5 | |
Total current liabilities | 1,140.6 | 1,413.7 | |
Long-term debt due after one year | 2,463.7 | 2,460.1 | |
Intercompany notes payable | 2,941.1 | 2,865.4 | |
Pension liabilities, net of current portion | 135.2 | 135.9 | |
Postretirement benefit liabilities, net of current portion | 28.1 | 28.1 | |
Deferred income taxes | 275.2 | 291 | |
Other long-term liabilities | 130.3 | 106.2 | |
Total stockholders’ equity | 16,457.1 | 11,731.5 | |
Total equity | 16,457.1 | 11,731.5 | |
Total Liabilities and Equity | 23,571.3 | 19,031.9 | |
Non-Guarantor Subsidiaries [Member] | |||
Current Assets: | |||
Cash and cash equivalents | 210.3 | 145.8 | |
Accounts receivable | 2,165.6 | 1,840.2 | |
Inventories | 1,861.7 | 1,596.2 | |
Other current assets | 497.6 | 230.9 | |
Intercompany receivables | 104.5 | 784 | |
Assets held for sale | 39.1 | 59.5 | |
Total current assets | 4,878.8 | 4,656.6 | |
Property, plant and equipment, net | 10,947.8 | 9,061.2 | |
Goodwill | 6,169 | 4,426.3 | |
Intangibles, net | 2,788.7 | 1,532.6 | |
Restricted assets held by special purpose entities | 1,279.4 | 1,281 | |
Prepaid pension asset | 428.4 | 420 | |
Intercompany notes receivable | 2,941.1 | 2,865.4 | |
Other assets | 922.9 | 910.8 | |
Total Assets | 30,356.1 | 25,153.9 | |
Current liabilities: | |||
Current portion of debt | 257.6 | 131.2 | |
Accounts payable | 1,663.8 | 1,701.8 | |
Accrued compensation and benefits | 354.9 | 388.4 | |
Other current liabilities | 430.2 | 395.6 | |
Total current liabilities | 2,706.5 | 2,617 | |
Long-term debt due after one year | 1,041.1 | 1,035 | |
Intercompany notes payable | 187.5 | 917.3 | |
Pension liabilities, net of current portion | 118.1 | 125.4 | |
Postretirement benefit liabilities, net of current portion | 110.9 | 106.7 | |
Non-recourse liabilities held by special purpose entities | 1,151.6 | 1,153.7 | |
Deferred income taxes | 2,666.2 | 2,037.6 | |
Other long-term liabilities | 967.1 | 872.5 | |
Redeemable noncontrolling interests | 3.8 | 4.2 | |
Total stockholders’ equity | 21,391.5 | 16,271.5 | |
Noncontrolling interests | 11.8 | 13 | |
Total equity | 21,403.3 | 16,284.5 | |
Total Liabilities and Equity | 30,356.1 | 25,153.9 | |
Eliminations [Member] | |||
Current Assets: | |||
Accounts receivable | (26.1) | (26.1) | |
Intercompany receivables | (742.3) | (1,097.6) | |
Total current assets | (768.4) | (1,123.7) | |
Intercompany notes receivable | (3,128.6) | (3,782.7) | |
Investments in consolidated subsidiaries | (48,910.4) | (28,003) | |
Other assets | (8.8) | (7.1) | |
Total Assets | (52,816.2) | (32,916.5) | |
Current liabilities: | |||
Accounts payable | (26.1) | (26.1) | |
Intercompany payables | (742.3) | (1,097.6) | |
Total current liabilities | (768.4) | (1,123.7) | |
Intercompany notes payable | (3,128.6) | (3,782.7) | |
Deferred income taxes | (8.8) | (7.1) | |
Total stockholders’ equity | (48,910.4) | (28,003) | |
Total equity | (48,910.4) | (28,003) | |
Total Liabilities and Equity | $ (52,816.2) | $ (32,916.5) |
Selected Condensed Consolidat_6
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | ||
Net cash provided by (used for) operating activities | $ 303.1 | $ 245.4 |
Investing activities: | ||
Capital expenditures | (322) | (214.1) |
Cash (paid) received related to business combinations, net of cash acquired | (3,342.9) | 3.4 |
Cash receipts on sold trade receivables | 116.6 | |
Proceeds from sale of property, plant and equipment | 88 | 12.1 |
Investment in unconsolidated entities | (110.7) | |
Proceeds from property, plant and equipment insurance settlement | 1.5 | |
Other | 4.1 | 0.6 |
Net cash used for investing activities | (3,572.8) | (190.6) |
Financing activities: | ||
Proceeds from issuance of notes | 1,498.5 | |
(Repayments) additions to revolving credit facilities | 133.6 | 87.6 |
Additions to debt | 3,806.1 | 475.3 |
Repayments of debt | (2,847.9) | (1,050.6) |
Changes in commercial paper, net | 447.7 | 554.7 |
Other financing additions (repayments), net | 14.6 | (13.5) |
Issuances of common stock, net of related minimum tax withholdings | 12.9 | 11.4 |
Purchases of common stock | (44.2) | |
Cash dividends paid to stockholders | (116.1) | (109.6) |
Cash distributions paid to noncontrolling interests | (2.2) | (1.5) |
Other | (6.4) | 0.7 |
Net cash provided by (used for) financing activities | 2,896.6 | (45.5) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | (1) |
(Decrease) increase in cash, cash equivalents and restricted cash | (376.1) | 8.3 |
Cash, cash equivalents and restricted cash at beginning of period | 636.8 | 304 |
Cash, cash equivalents and restricted cash at end of period | 260.7 | 312.3 |
Parent [Member] | ||
Operating activities: | ||
Net cash provided by (used for) operating activities | 147.4 | |
Investing activities: | ||
Intercompany capital investment | (563) | |
Net cash used for investing activities | (563) | |
Financing activities: | ||
Issuances of common stock, net of related minimum tax withholdings | 12.9 | |
Purchases of common stock | (44.2) | |
Cash dividends paid to stockholders | (116.1) | |
Intercompany capital receipt | 563 | |
Net cash provided by (used for) financing activities | 415.6 | |
Issuer [Member] | ||
Operating activities: | ||
Net cash provided by (used for) operating activities | 83.4 | 110 |
Investing activities: | ||
Intercompany notes proceeds | 9.3 | |
Intercompany capital investment | (563) | |
Net cash used for investing activities | (553.7) | |
Financing activities: | ||
Proceeds from issuance of notes | 1,498.5 | |
(Repayments) additions to revolving credit facilities | 30.7 | (80.9) |
Additions to debt | 3,800.8 | |
Repayments of debt | (1,489.2) | (485.1) |
Changes in commercial paper, net | 447.7 | 554.7 |
Other financing additions (repayments), net | 0.7 | |
Issuances of common stock, net of related minimum tax withholdings | 11.4 | |
Cash dividends paid to stockholders | (109.6) | |
Intercompany notes payments | (3,800) | |
Other | (19.1) | |
Net cash provided by (used for) financing activities | 470.1 | (109.5) |
(Decrease) increase in cash, cash equivalents and restricted cash | (0.2) | 0.5 |
Cash, cash equivalents and restricted cash at beginning of period | 0.2 | |
Cash, cash equivalents and restricted cash at end of period | 0.5 | |
Guarantor Subsidiaries [Member] | ||
Operating activities: | ||
Net cash provided by (used for) operating activities | (519) | (73.5) |
Investing activities: | ||
Capital expenditures | (1.5) | |
Intercompany notes proceeds | 0.6 | 1.1 |
Other | 3.8 | 0.6 |
Net cash used for investing activities | 2.9 | 84.3 |
Intercompany return of capital | 82.6 | |
Financing activities: | ||
Other financing additions (repayments), net | (5.8) | |
Intercompany notes borrowing | 75.7 | |
Net cash provided by (used for) financing activities | 75.7 | (5.8) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.1) | |
(Decrease) increase in cash, cash equivalents and restricted cash | (440.4) | 4.9 |
Cash, cash equivalents and restricted cash at beginning of period | 490.8 | 43.3 |
Cash, cash equivalents and restricted cash at end of period | 50.4 | 48.2 |
Non-Guarantor Subsidiaries [Member] | ||
Operating activities: | ||
Net cash provided by (used for) operating activities | 1,163.7 | 248.8 |
Investing activities: | ||
Capital expenditures | (320.5) | (214.1) |
Cash (paid) received related to business combinations, net of cash acquired | (3,342.9) | 3.4 |
Cash receipts on sold trade receivables | 116.6 | |
Proceeds from sale of property, plant and equipment | 88 | 12.1 |
Intercompany notes issued | (75.7) | |
Intercompany notes proceeds | 3,800 | |
Investment in unconsolidated entities | (110.7) | |
Proceeds from property, plant and equipment insurance settlement | 1.5 | |
Other | 0.3 | |
Net cash used for investing activities | 149.2 | (191.2) |
Financing activities: | ||
(Repayments) additions to revolving credit facilities | 102.9 | 168.5 |
Additions to debt | 5.3 | 475.3 |
Repayments of debt | (1,358.7) | (565.5) |
Other financing additions (repayments), net | 13.9 | (7.7) |
Cash distributions paid to noncontrolling interests | (2.2) | (1.5) |
Intercompany notes payments | (9.9) | (1.1) |
Intercompany capital receipt | 563 | |
Intercompany dividends | (572.4) | (39.9) |
Other | 12.7 | 0.7 |
Net cash provided by (used for) financing activities | (1,245.4) | (53.8) |
Intercompany capital distribution | (82.6) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | (0.9) |
(Decrease) increase in cash, cash equivalents and restricted cash | 64.5 | 2.9 |
Cash, cash equivalents and restricted cash at beginning of period | 145.8 | 260.7 |
Cash, cash equivalents and restricted cash at end of period | 210.3 | 263.6 |
Eliminations [Member] | ||
Operating activities: | ||
Net cash provided by (used for) operating activities | (572.4) | (39.9) |
Investing activities: | ||
Intercompany notes issued | 75.7 | |
Intercompany notes proceeds | (3,809.9) | (1.1) |
Intercompany capital investment | 1,126 | |
Net cash used for investing activities | (2,608.2) | (83.7) |
Intercompany return of capital | (82.6) | |
Financing activities: | ||
Intercompany notes borrowing | (75.7) | |
Intercompany notes payments | 3,809.9 | 1.1 |
Intercompany capital receipt | (1,126) | |
Intercompany dividends | 572.4 | 39.9 |
Net cash provided by (used for) financing activities | $ 3,180.6 | 123.6 |
Intercompany capital distribution | $ 82.6 |
Selected Condensed Consolidat_7
Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors - Noncash Investing and Financing Activities (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Parent [Member] | |
Investing activities: | |
Intercompany capital investment | $ (10,396.2) |
Intercompany return of capital | 563 |
Financing activities: | |
Intercompany capital distribution | (563) |
Issuer [Member] | |
Investing activities: | |
Intercompany notes issued | (3,800) |
Intercompany notes proceeds | 4,519.8 |
Intercompany capital investment | (5,434.8) |
Intercompany return of capital | 1,478 |
Financing activities: | |
Intercompany notes borrowing | 3,800 |
Intercompany capital receipt | 10,396.2 |
Intercompany capital distribution | (563) |
Guarantor Subsidiaries [Member] | |
Investing activities: | |
Intercompany notes issued | (4,519.8) |
Intercompany notes proceeds | 4,519.8 |
Intercompany capital investment | (5,892.3) |
Intercompany return of capital | 915 |
Financing activities: | |
Intercompany notes borrowing | 457.5 |
Intercompany notes payments | (457.5) |
Intercompany capital receipt | 4,977.3 |
Intercompany capital distribution | (457.5) |
Non-Guarantor Subsidiaries [Member] | |
Investing activities: | |
Intercompany notes issued | (8,057.5) |
Intercompany notes proceeds | 4,257.5 |
Financing activities: | |
Intercompany notes borrowing | 12,119.8 |
Intercompany notes payments | (12,839.6) |
Intercompany capital receipt | 6,349.8 |
Intercompany capital distribution | (1,372.5) |
Eliminations [Member] | |
Investing activities: | |
Intercompany notes issued | 16,377.3 |
Intercompany notes proceeds | (13,297.1) |
Intercompany capital investment | 21,723.3 |
Intercompany return of capital | (2,956) |
Financing activities: | |
Intercompany notes borrowing | (16,377.3) |
Intercompany notes payments | 13,297.1 |
Intercompany capital receipt | (21,723.3) |
Intercompany capital distribution | $ 2,956 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Dec. 07, 2018USD ($) | Dec. 31, 2018USD ($)lawsuit |
Commitments and Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 11.2 | |
Litigation cost reimbursement | $ 0.1 | |
Number of Lawsuits the Company Has Been Named a Defendant in Asbestos-related Personal Injury Litigation | lawsuit | 775 | |
Guarantor Obligations, Estimated Exposure, Undiscounted | $ 50 | |
Guarantor Obligations, Current Carrying Value | 11.8 | |
Other Long Term Liabilities [Member] | ||
Commitments and Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | 7.1 | |
Other Current Liabilities [Member] | ||
Commitments and Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 4.1 |
Equity and Other Comprehensiv_3
Equity and Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Nov. 02, 2018 | Sep. 30, 2018 | Jul. 01, 2015 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Stock repurchase program, number of shares authorized to be repurchased | 40,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 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 | 20,300,000 | ||||
Treasury stock, shares, acquired | 1,000,000 | 0 | |||
Purchases of common stock | $ 44.2 | ||||
Minimum [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Effective Tax Rate, Net of Tax Components of Other Comprehensive Income | 25.00% | 28.00% | |||
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% | 29.00% |
Equity and Other Comprehensiv_4
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, 2018 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | [1] | $ (695.3) | $ (457.3) |
Other comprehensive (loss) income before reclassifications | [1] | (64.9) | (44) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 5.4 | 3.7 |
Net current period other comprehensive income (loss) | [1] | (59.5) | (40.3) |
Balance at end of period | [1] | (754.8) | (497.6) |
Accumulated Net Gain (Loss) from Designated or Quality Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | [1] | (0.2) | (0.7) |
Other comprehensive (loss) income before reclassifications | [1] | 0 | (0.1) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | 0.5 |
Net current period other comprehensive income (loss) | [1] | 0 | 0.4 |
Balance at end of period | [1] | (0.2) | (0.3) |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | [1] | (465.9) | (462.5) |
Other comprehensive (loss) income before reclassifications | [1] | 0 | (2.7) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 5.4 | 3.2 |
Net current period other comprehensive income (loss) | [1] | 5.4 | 0.5 |
Balance at end of period | [1] | (460.5) | (462) |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | [1] | (229.2) | 5.2 |
Other comprehensive (loss) income before reclassifications | [1] | (64.9) | (42) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | 0 |
Net current period other comprehensive income (loss) | [1] | (64.9) | (42) |
Balance at end of period | [1] | $ (294.1) | (36.8) |
Accumulated Net Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | [1] | 0.7 | |
Other comprehensive (loss) income before reclassifications | [1] | 0.8 | |
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | |
Net current period other comprehensive income (loss) | [1] | 0.8 | |
Balance at end of period | [1] | $ 1.5 | |
[1] | All amounts are net of tax and noncontrolling interests. |
Equity and Other Comprehensiv_5
Equity and Other Comprehensive Income (Loss) - Summary of Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization and settlement recognition of net actuarial loss, included in pension cost | $ 4.9 | $ 3.3 | |
Amortization of prior service (cost) credit, Net of Tax | 0.5 | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 0.5 | |
Parent [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of net actuarial loss, Pre-Tax Amount | [1],[2] | (6.6) | (4.4) |
Amortization of net actuarial loss, Tax | [1],[2] | 1.7 | 1.2 |
Amortization and settlement recognition of net actuarial loss, included in pension cost | [1],[2] | (4.9) | (3.2) |
Amortization of prior service (cost) credit, Pre-Tax Amount | [1],[2] | (0.6) | 0 |
Amortization of prior service (cost) credit, Tax | [1],[2] | 0.1 | 0 |
Amortization of prior service (cost) credit, Net of Tax | [1],[2] | (0.5) | 0 |
Defined Benefit Plans, before Tax | [1] | (7.2) | (4.4) |
Defined Benefit Plans, Tax | [1] | 1.8 | 1.2 |
Defined Benefit Plans, Net of Tax | [1] | (5.4) | (3.2) |
Total Reclassifications From Other Comprehensive Income Before Tax | [1] | (7.2) | (5.1) |
Total Reclassifications From Other Comprehensive Income Tax Portion | [1] | 1.8 | 1.4 |
Total Reclassifications From Other Comprehensive Income Net Of Tax | [1] | (5.4) | (3.7) |
Parent [Member] | Foreign Exchange Contract [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [1],[3] | 0 | (0.7) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | [1],[3] | 0 | 0.2 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | [1],[3] | $ 0 | $ (0.5) |
[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 5. Retirement Plans” for additional details. | ||
[3] | Included in net sales. |
Earnings Per Share - Schedule o
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, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income attributable to common stockholders | $ 139.1 | $ 1,135.1 |
Less: Distributed and undistributed income available to participating securities, Basic | 0 | (0.2) |
Net income attributable to common stockholders, basic | 139.1 | 1,134.9 |
Less: Distributed and undistributed income available to participating securities, Diluted | 0 | (0.2) |
Net income attributable to common stockholders, diluted | $ 139.1 | $ 1,134.9 |
Basic weighted average shares outstanding | 254.8 | 255 |
Effect of dilutive stock options and non- participating securities | 4.7 | 4.2 |
Diluted weighted average shares outstanding | 259.5 | 259.2 |
Basic earnings per share attributable to common stockholders | $ 0.55 | $ 4.45 |
Diluted earnings per share attributable to common stockholders | $ 0.54 | $ 4.38 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.9 | 0.1 |