Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Nov. 04, 2022 | Mar. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | WESTROCK COMPANY | ||
Entity Central Index Key | 0001732845 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Entity Incorporation, State or Country Code | DE | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 12,163 | ||
Entity Common Stock, Shares Outstanding | 254,463,987 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Trading Symbol | WRK | ||
Entity File Number | 001-38736 | ||
Entity Tax Identification Number | 37-1880617 | ||
Entity Address, Address Line One | 1000 Abernathy Road NE | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30328 | ||
City Area Code | 770 | ||
Local Phone Number | 448-2193 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for the Annual Meeting of Stockholders to be held on January 27, 2023 ar e incorporated by reference in Part III. | ||
Auditor Firm ID | 42 | ||
Auditor Location | Atlanta, Georgia | ||
Auditor Name | Ernst & Young LLP |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 21,256.5 | $ 18,746.1 | $ 17,578.8 |
Cost of goods sold | 17,235.8 | 15,315.8 | 14,381.6 |
Gross profit | 4,020.7 | 3,430.3 | 3,197.2 |
Selling, general and administrative excluding intangible amortization | 1,932.6 | 1,759.3 | 1,624.4 |
Selling, general and administrative intangible amortization | 350.4 | 357.1 | 400.5 |
(Gain) loss on disposal of assets | (16.9) | 4.1 | (16.3) |
Multiemployer pension withdrawal expense (income) | 0.2 | (2.9) | (1.1) |
Mineral rights impairment | 26 | ||
Restructuring and other costs | 401.6 | 31.5 | 112.7 |
Goodwill impairment | 1,333.2 | ||
Operating profit (loss) | 1,326.8 | 1,281.2 | (256.2) |
Interest expense, net | (318.8) | (372.3) | (393.5) |
Loss on extinguishment of debt | (8.5) | (9.7) | (1.5) |
Pension and other postretirement non-service income | 157.4 | 134.9 | 103.3 |
Other (expense) income, net | (11) | 10.9 | 9.5 |
Equity in income of unconsolidated entities | 72.9 | 40.9 | 15.8 |
Income (loss) before income taxes | 1,218.8 | 1,085.9 | (522.6) |
Income tax expense | (269.6) | (243.4) | (163.5) |
Consolidated net income (loss) | 949.2 | 842.5 | (686.1) |
Less: Net income attributable to noncontrolling interests | (4.6) | (4.2) | (4.8) |
Net income (loss) attributable to common stockholders | $ 944.6 | $ 838.3 | $ (690.9) |
Basic earnings (loss) per share attributable to common stockholders | $ 3.64 | $ 3.16 | $ (2.67) |
Diluted earnings (loss) per share attributable to common stockholders | $ 3.61 | $ 3.13 | $ (2.67) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income (loss) | $ 949.2 | $ 842.5 | $ (686.1) |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation (loss) gain | (241.5) | 124.3 | (215) |
Derivatives: | |||
Deferred loss on cash flow hedges | (10.3) | (0.1) | (10) |
Reclassification adjustment of net loss on cash flow hedges included in earnings | 1.4 | 5.5 | 3.6 |
Defined benefit pension and other postretirement benefit plans: | |||
Net actuarial (loss) gain arising during period | (216.3) | 165.6 | 24.2 |
Amortization and settlement recognition of net actuarial loss, included in pension and postretirement cost | 6.4 | 25.5 | 35.4 |
Prior service cost arising during period | (0.2) | (4.2) | (19.6) |
Amortization and curtailment recognition of prior service cost, included in pension and postretirement cost | 6.1 | 4.5 | 3.8 |
Other comprehensive (loss) income, net of tax | (454.4) | 321.1 | (177.6) |
Comprehensive income (loss) | 494.8 | 1,163.6 | (863.7) |
Less: Comprehensive income attributable to noncontrolling interests | (5.4) | (4.5) | (4.5) |
Comprehensive income (loss) attributable to common stockholders | $ 489.4 | $ 1,159.1 | $ (868.2) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 260.2 | $ 290.9 | |
Accounts receivable (net of allowances of $66.3 and $68.1) | 2,683.9 | 2,586.9 | |
Inventories | 2,317.1 | 2,173.3 | |
Other current assets | 689.8 | 597.6 | |
Assets held for sale | 34.4 | 10.9 | |
Total current assets | 5,985.4 | 5,659.6 | |
Property, plant and equipment, net | 10,081.4 | 10,570.1 | |
Goodwill | 5,895.2 | 5,959.2 | |
Intangibles, net | 2,920.6 | 3,318.8 | |
Restricted assets held by special purpose entities | 1,253 | 1,260.5 | |
Prepaid pension asset | 440.3 | 674.3 | |
Other assets | 1,829.6 | 1,811.8 | |
Total assets | 28,405.5 | 29,254.3 | |
Current liabilities: | |||
Current portion of debt | 212.2 | 168.8 | |
Accounts payable | 2,252.1 | 2,123.7 | |
Accrued compensation and benefits | 627.9 | 656.8 | |
Other current liabilities | 810.6 | 694.8 | |
Total current liabilities | 3,902.8 | 3,644.1 | |
Long-term debt due after one year | 7,575 | 8,025.3 | |
Pension liabilities, net of current portion | 189.4 | 254.7 | |
Postretirement benefit liabilities, net of current portion | 105.4 | 133.7 | |
Non-recourse liabilities held by special purpose entities | 1,117.8 | 1,127.3 | |
Deferred income taxes | 2,761.9 | 2,944.4 | |
Other long-term liabilities | 1,328 | 1,433.1 | |
Commitments and contingencies (Note 17) | |||
Redeemable noncontrolling interests | 5.5 | 1.7 | |
Equity: | |||
Preferred stock, $0.01 par value; 30.0 million shares authorized; no shares outstanding | 0 | 0 | |
Common stock, $0.01 par value; 600.0 million shares authorized; 254.4 million and 265.0 million shares outstanding at September 30, 2022 and September 30, 2021, respectively | 2.5 | 2.7 | |
Capital in excess of par value | 10,639.4 | 11,058.8 | |
Retained earnings | 2,214.4 | 1,607.9 | |
Accumulated other comprehensive loss | [1] | (1,454.3) | (999.1) |
Total Stockholders equity | 11,402 | 11,670.3 | |
Noncontrolling interests | 17.7 | 19.7 | |
Total equity | 11,419.7 | 11,690 | |
Total liabilities and equity | $ 28,405.5 | $ 29,254.3 | |
[1] All amounts are net of tax and noncontrolling interest. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 66.3 | $ 68.1 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 600,000,000 | 600,000,000 |
Common Stock, Shares, Outstanding | 254,400,000 | 265,000,000 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Retained Earnings [Member] Adoption of Accounting Standards [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interests [Member] | ||||||
Beginning balance at Sep. 30, 2019 | 257,800,000 | ||||||||||||
Beginning balance at Sep. 30, 2019 | $ 2.6 | $ 10,739.4 | $ 1,997.1 | $ (1,069.2) | $ 14.3 | [1] | |||||||
Issuance of common stock, net of stock received for tax withholdings | 2,600,000 | ||||||||||||
Issuance of common stock, net of stock received for tax withholdings | 46.6 | ||||||||||||
Compensation expense under share-based plans | 130.3 | ||||||||||||
Adoption of accounting standards | [2] | $ 73.5 | |||||||||||
Net income (loss) attributable to common stockholders | (690.9) | ||||||||||||
Dividends declared (per share - $1.00, $0.88 and $1.33) | [3] | (348.1) | |||||||||||
Purchases of common stock | 0 | ||||||||||||
Adoption of ASU 2018-12 reclassification of stranded tax effects resulting from Tax Reform | (73.4) | ||||||||||||
Other comprehensive (loss) income, net of tax | $ (177.3) | (177.3) | |||||||||||
Net (loss) income | (4.8) | 2.7 | [1] | ||||||||||
Distributions and adjustments to noncontrolling interests | [1] | (0.1) | |||||||||||
Ending balance at Sep. 30, 2020 | 260,400,000 | ||||||||||||
Ending balance at Sep. 30, 2020 | 10,647.5 | $ 2.6 | 10,916.3 | 1,031.6 | (1,319.9) | 16.9 | [1] | ||||||
Total Stockholders’ equity at Sep. 30, 2020 | $ 10,630.6 | ||||||||||||
Issuance of common stock, net of stock received for tax withholdings | 7,100,000 | ||||||||||||
Issuance of common stock, net of stock received for tax withholdings | $ 0.1 | 158.8 | (0.5) | ||||||||||
Compensation expense under share-based plans | 88.5 | ||||||||||||
Adoption of accounting standards | [2] | $ (3.8) | |||||||||||
Net income (loss) attributable to common stockholders | 838.3 | ||||||||||||
Dividends declared (per share - $1.00, $0.88 and $1.33) | [3] | (236.3) | |||||||||||
Purchases of common stock | (2,500,000) | (2,500,000) | [4] | ||||||||||
Purchases of common stock | $ (125.1) | (103.7) | [4] | (21.4) | [4] | ||||||||
Other | (1.1) | ||||||||||||
Other comprehensive (loss) income, net of tax | 320.8 | [5] | 320.8 | ||||||||||
Net (loss) income | $ (4.2) | 1.7 | [1] | ||||||||||
Distributions and adjustments to noncontrolling interests | [1] | 1.1 | |||||||||||
Ending balance at Sep. 30, 2021 | 265,000,000 | 265,000,000 | |||||||||||
Ending balance at Sep. 30, 2021 | $ 11,690 | $ 2.7 | 11,058.8 | 1,607.9 | (999.1) | 19.7 | [1] | ||||||
Total Stockholders’ equity at Sep. 30, 2021 | $ 11,670.3 | ||||||||||||
Issuance of common stock, net of stock received for tax withholdings | 2,000,000 | ||||||||||||
Issuance of common stock, net of stock received for tax withholdings | 11.9 | (2.1) | |||||||||||
Compensation expense under share-based plans | 93.4 | ||||||||||||
Net income (loss) attributable to common stockholders | 944.6 | ||||||||||||
Dividends declared (per share - $1.00, $0.88 and $1.33) | [3] | (263) | |||||||||||
Purchases of common stock | (12,600,000) | (12,600,000) | [4] | ||||||||||
Purchases of common stock | $ (597.5) | $ (0.2) | [4] | (524.3) | [4] | (73) | [4] | ||||||
Other | (0.4) | ||||||||||||
Other comprehensive (loss) income, net of tax | (455.2) | [5] | (455.2) | ||||||||||
Net (loss) income | $ (4.6) | (1.5) | [1] | ||||||||||
Distributions and adjustments to noncontrolling interests | [1] | (0.5) | |||||||||||
Ending balance at Sep. 30, 2022 | 254,400,000 | 254,400,000 | |||||||||||
Ending balance at Sep. 30, 2022 | $ 11,419.7 | $ 2.5 | $ 10,639.4 | $ 2,214.4 | $ (1,454.3) | $ 17.7 | [1] | ||||||
Total Stockholders’ equity at Sep. 30, 2022 | $ 11,402 | ||||||||||||
[1] Excludes amounts related to contingently redeemable noncontrolling interests, which are separately classified outside of permanent equity in the consolidated balance sheets. For fiscal 2021, the amount relates to the adoption of ASU 2016-13, “ Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments ”. For fiscal 2020, the amount primarily relates to the adoption of ASU 2018-02, “ Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ”. Includes cash dividends paid and dividend equivalent units on certain restricted stock units and restricted stock. In fiscal 2022, we repurchased approximately 12.6 million shares of our Common Stock for an aggregate cost of $ 597.5 million. In fiscal 2021, we repurchased approximately 2.5 million shares of our Common Stock for an aggregate cost of $ 125.1 million (a portion of which settled after September 30, 2021). All amounts are net of tax and noncontrolling interest. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash dividends paid per share | $ 1 | $ 0.88 | $ 1.33 |
Purchases of common stock | 12,600,000 | 2,500,000 | 0 |
Aggregate cost for purchase of common stock | $ 597.5 | $ 125.1 | |
Common Stock [Member] | |||
Purchases of common stock | 12,600,000 | 2,500,000 | |
Aggregate cost for purchase of common stock | $ 597.5 | $ 125.1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | |||
Consolidated net income (loss) | $ 949.2 | $ 842.5 | $ (686.1) |
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 1,488.6 | 1,460 | 1,487 |
Cost of real estate sold | 16.1 | ||
Deferred income tax (benefit) expense | (98.2) | (38.3) | 43 |
Share-based compensation expense | 93.3 | 88.6 | 130.3 |
401(k) match and company contribution in common stock | 2.5 | 136.1 | 20.8 |
Pension and other postretirement funding more than expense (income) | (135.6) | (111.5) | (80.1) |
Cash surrender value increase in excess of premiums paid | (2) | (49.4) | (25.2) |
Equity in income of unconsolidated entities | (72.9) | (40.9) | (15.8) |
Gain on sale of sawmill | (16.5) | ||
Gain on sale of investment | (16) | ||
Goodwill impairment | 1,333.2 | ||
Other impairment adjustments | 325.5 | 34.6 | 25.8 |
Mineral rights impairment | 26 | ||
(Gain) loss on disposal of plant, equipment and other, net | (17.5) | 3.7 | (13.2) |
Other | (2.5) | 11.7 | 0.6 |
Change in operating assets and liabilities, net of acquisitions and divestitures: | |||
Accounts receivable | (161.5) | (428.9) | 30.5 |
Inventories | (310.4) | (200) | 21.8 |
Other assets | 79.1 | (379.6) | (202.4) |
Accounts payable | 79.5 | 430.3 | (86.4) |
Income taxes | 16.9 | 0.7 | (27.6) |
Accrued liabilities and other | (239.6) | 552.8 | 98.4 |
Net cash provided by operating activities | 2,020.4 | 2,279.9 | 2,070.7 |
Investing activities: | |||
Capital expenditures | (862.6) | (815.5) | (978.1) |
Cash paid for purchase of businesses, net of cash acquired | (7) | ||
Proceeds from corporate owned life insurance | 60.8 | 44.9 | 16.9 |
Proceeds from sale of sawmill | 58.5 | ||
Proceeds from sale of investment | 29.5 | ||
Proceeds from sale of property, plant and equipment | 28.2 | 6.3 | 35 |
Proceeds from property, plant and equipment insurance settlement | 1.7 | 3.2 | 6.5 |
Other | 2.9 | (2.9) | (1.8) |
Net cash used for investing activities | (776) | (676) | (921.5) |
Financing activities: | |||
Proceeds from issuance of notes | 598.6 | ||
Additions to revolving credit facilities | 377.4 | 435 | 428 |
Repayments of revolving credit facilities | (373.3) | (415) | (528.2) |
Additions to debt | 503.2 | 259.9 | 696.4 |
Repayments of debt | (991.5) | (1,544.3) | (1,449.2) |
Changes in commercial paper, net | (339.2) | ||
Other debt additions (repayments), net | 31.5 | 23.1 | (80.3) |
Issuances of common stock, net of related tax withholdings | 5 | 18.2 | 22.2 |
Purchases of common stock | (600) | (122.4) | |
Cash dividends paid to stockholders | (259.5) | (233.8) | (344.5) |
Other | 25.9 | (1.1) | (24.9) |
Net cash used for financing activities | (1,281.3) | (1,580.4) | (1,021.1) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 6.2 | 16.3 | (28.6) |
(Decrease) increase in cash, cash equivalents and restricted cash | (30.7) | 39.8 | 99.5 |
Cash, cash equivalents and restricted cash at beginning of period | 290.9 | 251.1 | 151.6 |
Cash, cash equivalents and restricted cash at end of period | $ 260.2 | $ 290.9 | $ 251.1 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2022 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1. Description of Business and Su mmary of Significant Accounting Policies Description of Business Unless the context otherwise requires, “ we ” , “ us ” , “ our ” , “ WestRock ” and “the Company ” refer to the business of WestRock Company, its wholly-owned subsidiaries and its partially-owned consolidated subsidiaries. WestRock is a multinational provider of sustainable fiber-based paper and packaging solutions. We partner with our customers to provide differentiated, sustainable paper and packaging solutions that help our customers win in the marketplace. Our team members support customers around the world from our operating and business locations in North America, South America, Europe, Asia and Australia. Basis of Presentation and Principles of Consolidation The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. Actual results may differ from these estimates. The consolidated financial statements include the accounts of WestRock and our partially owned subsidiaries for which we have a controlling financial interest, including variable interest entities for which we are the primary beneficiary. Equity investments in which we exercise significant influence but do not control and are not the primary beneficiary are accounted for using the equity method. Investments without a readily determinable value in which we are not able to exercise significant influence over the investee are accounted under the measurement alternative (i.e., cost less impairment, adjusted for any qualifying observable price changes). Our investments accounted for under the equity method or the measurement alternative method are not material either individually or in the aggregate. We have eliminated all significant intercompany accounts and transactions. See “ Note 7. Segment Information ” for our equity method investments. Reclassifications and Adjustments Effective October 1, 2021, we reorganized our segment reporting to four reportable segments: Corrugated Packaging, Consumer Packaging, Global Paper and Distribution. Prior period amounts have been recast throughout the Notes to Consolidated Financial Statements, as applicable, to conform to the new segment structure. These changes did not impact our consolidated financial statements. See “ Note 7 Segment Information ” for additional information. Certain amounts in prior periods have been reclassified to conform with the current year presentation. COVID Pandemic The global impact of the COVID has affected our operational and financial performance to varying degrees. The extent of the effects of future public health crises, including a resurgence of COVID, or related containment measures and government responses are highly uncertain and cannot be predicted. Our net sales, primarily in the last half of fiscal 2020, were negatively impacted by COVID, and we have experienced and are currently experiencing higher supply chain costs and tight labor markets in part due to the impacts of COVID. Ransomware Incident As previously disclosed, on January 23, 2021 we detected a ransomware incident impacting certain of our systems. Promptly upon our detection of this incident, we initiated response and containment protocols and our security teams, supplemented by leading cyber defense firms, worked to remediate this incident. These actions included taking preventative measures, including shutting down certain systems out of an abundance of caution, as well as taking steps to supplement existing security monitoring, scanning and protective measures. We notified law enforcement and contacted our customers to apprise them of the situation. We undertook extensive efforts to identify, contain and recover from this incident quickly and securely. Our teams worked to maintain our business operations and minimize the impact on our customers and team members. In our Form 10-Q for the second quarter of fiscal 2021, we announced that all systems were back in service. All of our mills and converting locations began producing and shipping paper and packaging at pre-ransomware levels in March 2021 or earlier. Our mill system production was approximately 115,000 tons lower than planned for the quarter ended March 31, 2021 as a result of this incident. While shipments from some of our facilities initially lagged behind production levels, this gap closed as systems were restored during the second quarter of fiscal 2021. In locations where technology issues were identified, we used alternative methods, in many cases manual methods, to process and ship orders. We systematically brought our information systems back online in a controlled, phased approach. We estimated the pre-tax income impact of the lost sales and operational disruption of this incident on our operations in the second quarter of fiscal 2021 was approximately $ 50 million, as well as approximately $ 20 million of ransomware recovery costs, primarily professional fees. In addition, we incurred approximately $ 9 million of ransomware recovery costs in the third quarter of fiscal 2021. In the fourth quarter of fiscal 2021, we recorded a $ 15 million credit for preliminary recoveries – approximately $ 10 million as a reduction of SG&A excluding intangible amortization and approximately $ 5 million as a reduction of Cost of goods sold. I n fiscal 2022, we recorded a $ 57.2 million credit for ransomware insurance recoveries. We recorded $ 50.6 million of business interruption recoveries as a reduction of Cost of goods sold and $ 6.6 million of direct cost recoveries as a reduction of SG&A excluding intangible amortization. We present ransomware recoveries received as Net cash provided by operating activities in our consolidated statements of cash flows. While we expect to reco ver substantially all of the remaining ransomware losses from cyber and business interruption insurance from various carriers in future periods, the recovery process proceeds from carrier to carrier up the coverage layers after the preceding layer is resolved, which lends itself to a lengthy process. Additionally, discussions and/or disputes over the extent of insurance coverage for claims are not uncommon and generally take time to be resolved. In order to contain and remediate the cybersecurity incident, we engaged a leading cybersecurity defense firm to complete a forensics investigation and performed short-term mitigation actions in the latter half of 2021. Mitigations performed included the execution of a company-wide password reset and the deployment of security tooling across all our servers and workstations. Additionally, to address longer term security objectives, we developed a multi-year security and resiliency roadmap, aimed to strengthen the company’s ability to detect, respond, and recover from security incidents. This roadmap included initiatives to bolster our information security posture across the enterprise, and to deploy technology and process improvements to allow for faster and more effective incident response and recovery. More specifically, key areas of focus for the resiliency roadmap included: strengthening security monitoring controls, improving security at our operating locations, automating identity and access management, expanding third-party security, modernizing the network and file and print infrastructure, and updating backup capabilities. In fiscal 2022, we realized incremental progress against our resiliency objectives. We improved our mean-time-to-resolve security incidents, deployed endpoint detection and response technology across all of our workstation and server population, transitioned all of our local drives to cloud-based storage, and progressed against key goals to modernize the security and infrastructure of our operating locations. In fiscal 2023, we expect to continue our resiliency roadmap efforts. Quarterly progress, as well as key risks and issues, are reported to the Audit Committee for oversight and monitoring. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates, and the differences could be material. We base our estimates on the current information available, our experiences and various other assumptions believed to be reasonable under the circumstances. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, and in some cases, actuarial techniques. The global impact of the COVID pandemic may also affect our accounting estimates, which may materially change from period to period due to changing market factors. We regularly evaluate these significant factors and make adjustments where facts and circumstances dictate. Revenue Recognition We generally recognize revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods, which coincide with the transfer of control of our goods to the customer. Additionally, we manufacture certain customized products that have no alternative use to us (since they are made to specific customer specifications), and we believe that for certain customers we have a legally enforceable right to payment for performance completed to date on these products, including a reasonable profit. For products that meet these two criteria, we recognize revenue “over time”. This results in revenue recognition prior to the date of shipment or title transfer for these products and results in the recognition of a contract asset (unbilled receivables) with a corresponding reduction in finished goods inventory on our balance sheet. We net provisions for discounts, returns, allowances, customer rebates and other adjustments against our gross sales. Such adjustments are based on historical experience which is consistent with the most likely method as provided in ASC 606 “ Revenue from Contracts with Customers ” (“ ASC 606 ”). As permitted by ASC 606, we have elected to treat costs associated with obtaining new contracts as expenses when incurred if the amortization period of the asset we would recognize is one year or less. We do not record interest income when the difference in timing of control transfer and customer payment is one year or less. We also account for sales and other taxes that are imposed on and concurrent with individual revenue-producing transactions between a customer and us on a net basis which excludes the taxes from our net sales. Shipping and Handling Costs We classify shipping and handling costs, such as freight to our customers’ destinations, as a component of cost of goods sold. When shipping and handling costs are included in the sales price charged for our products, they are recognized in net sales since we treat shipping and handling as fulfilment activities. Cash Equivalents We consider all highly liquid investments that mature three months or less from the date of purchase to be cash equivalents. The carrying amounts of our cash and cash equivalents approximate fair market values. We place our cash and cash equivalents primarily with large credit worthy banks, which limits the amount of our credit exposure. Accounts Receivable and Allowances We derive our accounts receivable from revenue earned from customers located primarily in North America, South America, Europe, Asia and Australia. Given our diverse customer base, we have limited exposure to credit loss from any particular customer or industry segment, and hence we generally do not require collateral. We perform an evaluation of lifetime expected credit losses inherent in our accounts receivable at each balance sheet date. Such an evaluation includes consideration of historical loss experience, trends in customer payment frequency, present economic conditions, and judgment about the future financial health of our customers and industry sector. The average of our receivables collection is within 30 to 60 days . We are a party to accounts receivable sales agreements to sell to third-party financial institutions all of the short-term receivables generated from certain customer trade accounts. See “ Note 12. Fair Value — Accounts Receivable Sales Agreements ”. We state accounts receivable at the amount owed by the customer, net of an allowance for estimated credit impairment losses, returns and allowances, cash discounts and other adjustments. We do not discount accounts receivable because we generally collect accounts receivable over a relatively short time. We charge off receivables when they are determined to be no longer collectible. We recorded bad debt expense of $ 4.6 million and $ 19.9 million in fiscal 2022 and 2020, respectively, and a credit of $ 9.4 million in fiscal 2021. The following table represents a summary of the changes in the reserve for allowance for doubtful accounts, returns and allowances and cash discounts for fiscal 2022, 2021 and 2020 (in millions): 2022 2021 2020 Balance at beginning of fiscal year $ 68.1 $ 66.3 $ 53.2 Reduction in sales and charges to costs and expenses 261.9 236.5 270.8 Deductions ( 263.7 ) ( 234.7 ) ( 257.7 ) Balance at end of fiscal year $ 66.3 $ 68.1 $ 66.3 Inventories We value our U.S. inventories at the lower of cost or market, with cost for the majority of our U.S. inventories determined on the last-in first-out (“ LIFO ”) basis. We value all other inventories at the lower of cost and net realizable value, with cost determined using methods that approximate cost computed on a first-in first-out inventory valuation method (“ FIFO ”) basis. These other inventories are primarily foreign inventories, distribution business inventories, spare parts inventories and certain inventoried supplies and aggregate to approximately 35 % and 36 % of FIFO cost of all inventory at September 30, 2022 and 2021, respectively. See “ Note 9. Inventories ” for additional information. Prior to the application of the LIFO method, our U.S. operating divisions use a variety of methods to estimate the FIFO cost of their finished goods inventories. Such methods include standard costs, or average costs computed by dividing the actual cost of goods manufactured by the tons produced and multiplying this amount by the tons of inventory on hand. Lastly, certain operations calculate a ratio, on a plant-by-plant basis, the numerator of which is the cost of goods sold and the denominator is net sales. This ratio is applied to the estimated sales value of the finished goods inventory. Variances and other unusual items are analyzed to determine whether it is appropriate to include those items in the value of inventory. Examples of variances and unusual items that are considered to be current period charges include, but are not limited to, production levels, freight, handling costs, and wasted materials (spoilage) that are determined to be abnormal. Costs include raw materials and supplies, direct labor, indirect labor related to the manufacturing process and depreciation and other factory overheads. Our inventoried spare parts are measured at average cost. Leased Assets We adopted the provisions of ASC 842, “Leases” on October 1, 2019 using the modified retrospective approach and, as a result, did not restate prior periods. We elected the package of three practical expedients permitted within the standard pursuant to which we did not reassess initial direct costs, lease classification or whether our contracts contain or are leases. We lease various real estate, including certain operating facilities, warehouses, office space and land. We also lease material handling equipment, vehicles and certain other equipment. We record our operating lease ROU assets and liabilities at the commencement date of the lease based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. While some leases provide for variable payments, they are not included in the ROU assets and liabilities because they are not based on an index or rate. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles and leases within supply agreements primarily relate to usage, repairs, and maintenance. As the implicit rate is not readily determinable for our leases, we apply a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a monthly basis for measurement of new lease liabilities. We have made an accounting policy election to not recognize an ROU asset and liability for leases with a term of 12 months or less unless the lease includes an option to renew or purchase the underlying asset that we are reasonably certain to exercise. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. See “ Note 14. Leases ” for additional information. Property, Plant and Equipment We record property, plant and equipment at cost less accumulated depreciation. Cost includes major expenditures for improvements and replacements that extend useful lives, increase capacity, increase revenues or reduce costs, while normal maintenance and repairs are expensed as incurred. For financial reporting purposes, we provide depreciation and amortization primarily on a straight-line method generally over the estimated useful lives of the assets as follows: Buildings and building improvements 15 - 40 years Machinery and equipment 3 - 25 years Transportation equipment 3 - 8 years Generally, our machinery and equipment have estimated useful lives between 3 and 25 years ; however, select portions of machinery and equipment primarily at our mills have estimated useful lives up to 44 years. Greater than 90 % of the cost of our mill assets have useful lives of 25 years or less. Leasehold improvements are depreciated over the shorter of the asset life or the lease term, generally between 3 and 10 years . Goodwill and Long-Lived Assets In accordance with ASC 350, we review the carrying value of our goodwill annually at the beginning of the fourth quarter of each fiscal year, or more often if events or changes in circumstances indicate that the carrying amount may exceed fair value. We test goodwill for impairment at the reporting unit level, which is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. However, two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. The amount of goodwill acquired in a business combination that is assigned to one or more reporting units as of the acquisition date is the excess of the purchase price of the acquired businesses (or portion thereof) included in the reporting unit, over the fair value assigned to the individual assets acquired or liabilities assumed from a market participant perspective. Goodwill is assigned to the reporting unit(s) expected to benefit from the synergies of the combination even though other assets or liabilities of the acquired entity may not be assigned to that reporting unit. We determine recoverability by comparing the estimated fair value of the reporting unit to which the goodwill applies to the carrying value, including goodwill, of that reporting unit. We determine the fair value of each reporting unit using the discounted cash flow method or, as appropriate, a combination of the discounted cash flow method and the guideline public company method. ASC 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is “more likely than not” that the fair value of a reporting unit exceeds its carrying amount. We generally do not attempt a qualitative assessment and move directly to the quantitative test. As part of the quantitative test, we utilize the present value of expected cash flows or, as appropriate, a combination of the present value of expected cash flows and the guideline public company method to determine the estimated fair value of our reporting units. This present value model requires management to estimate future cash flows, the timing of these cash flows, and a discount rate (based on a weighted average cost of capital), which represents the time value of money and the inherent risk and uncertainty of the future cash flows. Factors that management must estimate when performing this step in the process include, among other items, sales volume, prices, inflation, discount rates, exchange rates, tax rates, anticipated synergies and productivity improvements resulting from past acquisitions, capital expenditures and continuous improvement projects. The assumptions we use to estimate future cash flows are consistent with the assumptions that the reporting units use for internal planning purposes, which we believe would be generally consistent with that of a market participant. Under the guideline public company method, we estimate the fair value of the reporting unit based on published EBITDA multiples of comparable public companies with similar operations and economic characteristics. The fair values determined by the discounted cash flow and guideline public company methods are weighted to arrive at the concluded fair value of the reporting unit. However, in instances where comparisons to our peers is less meaningful, no weight is placed on the guideline public company method to arrive at the concluded fair value of the reporting unit. If we determine that the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If we determine that the carrying amount of the reporting unit exceeds its estimated fair value, we measure the goodwill impairment charge based on the excess of a reporting unit’s carrying amount over its fair value as required under ASU 2017-04 “ Simplifying the Test for Goodwill Impairment ”, which we early adopted starting with our fiscal 2020 annual goodwill impairment test on July 1, 2020. During the fourth quarter of fiscal 2022, we completed our annual goodwill impairment testing. We considered factors such as, but not limited to, our expectations for the short-term and long-term impacts of COVID, macroeconomic conditions, industry and market considerations, and financial performance, including planned revenue, earnings and capital investments of each reporting unit. The discount rate used for each reporting unit ranged from 9.5 % to 13.0 % . We used perpetual growth rates ranging from 0.0 % to 1.0 %. All reporting units that have goodwill were noted to have a fair value that exceeded their carrying values by more than 15 % each. If we had concluded that it was appropriate to increase the discount rate we used by 100 basis points, the fair value of each of our reporting units would have continued to exceed its car rying value. No reporting unit failed the annual impairment test; however, the fair value of the Corrugated Packaging reporting unit only exceeded its carrying value by 15 % at July 1, 2022. In our fiscal 2022 annual goodwill impairment analysis, projected future cash flows for the Corrugated Packaging reporting unit were discounted at 10.0 %. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.9 %, in order for the estimated fair value of the reporting unit to fall below its carrying value. At September 30, 2022, the Corrugated Packaging, Consumer Packaging, Global Paper and Distribution reporting units had $ 2,802.8 million, $ 1,588.4 million, $ 1,366.5 million and $ 137.5 million of goodwill, respectively, which remained recoverable at the current year-end. Subsequent to our annual test, we monitored industry economic trends until the end of our fiscal year and determined no additional testing for goodwill impairment was warranted. We have not made any material changes to our impairment loss assessment methodology during the past three fiscal years. Currently, we do not believe there is a reasonable likelihood that there will be a material change in future assumptions or estimates we use to calculate impairment losses. However, we cannot predict or control market factors, including the impact of macroeconomic conditions, and there are certain risks inherent to our operations, as described in Item 1A. “ Risk Factors ” . If actual results are not consistent with our assumptions and estimates, we may be exposed to additional impairment losses that could be material. We follow the provisions included in ASC 360, “Property, Plant, and Equipment” in determining whether the carrying value of any of our long-lived assets, including ROU assets and amortizable intangibles other than goodwill, is impaired. The ASC 360 test is a three-step test for assets that are “held and used” as that term is defined by ASC 360. We determine whether indicators of impairment are present. We review long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of the long-lived asset might not be recoverable. If we determine that indicators of impairment are present, we determine whether the estimated undiscounted cash flows for the potentially impaired assets are less than the carrying value. This requires management to estimate future cash flows through operations over the remaining useful life of the asset and its ultimate disposition. The assumptions we use to estimate future cash flows are consistent with the assumptions we use for internal planning purposes, updated to reflect current expectations. If our estimated undiscounted cash flows do not exceed the carrying value, we estimate the fair value of the asset and record an impairment charge if the carrying value is greater than the fair value of the asset. We estimate fair value using discounted cash flows, observable prices for similar assets, or other valuation techniques. We record assets classified as “held for sale” at the lower of their carrying value or estimated fair value less anticipated costs to sell. Our long-lived assets, including intangible assets remain recoverable. Included in our long-lived assets are certain identifiable intangible assets. These intangible assets are amortized based on the approximate pattern in which the economic benefits are consumed or straight-line if the pattern was not reliably determinable. Estimated useful lives range from 1 to 40 years and have a weighted average life of approximately 15.7 years. Our judgments regarding the existence of impairment indicators are based on legal factors, market conditions and operational performance. Future events could cause us to conclude that impairment indicators exist and that assets associated with a particular operation are impaired. Evaluating impairment also requires us to estimate future operating results and cash flows, which also require judgment by management. Any resulting impairment loss could have a material adverse impact on our financial condition and results of operations. Cloud Computing Arrangements We utilize cloud computing arrangements such as hosting arrangements which are service contracts, whereby we gain remote access to use software hosted by the vendor or another third party on an as-needed basis for a period of time in exchange for a subscription fee. Subscription fees are usually prepaid and recorded in operating expense over the related subscription period. Implementation costs for cloud computing arrangements are capitalized within Other current assets or Other assets if certain criteria are met and consist of internal and external costs directly attributable to developing and configuring cloud computing software for its intended use. Amortization of capitalized implementation costs is recorded as operating expense on a straight-line basis over the term of the cloud computing arrangement, which is the non-cancellable period of the agreement, together with periods covered by renewal options which we are reasonably certain to exercise. The unamortized implementation costs related to our cloud computing arrangements were $ 4.1 million and $ 1.1 million at September 30, 2022 and 2021, respectively. Restructuring and Other Costs Our restructuring and other costs include primarily items such as restructuring portions of our operations, acquisition costs, integration costs and divestiture costs. We have restructured portions of our operations from time to time, have current restructuring initiatives taking place, and it is likely that we will engage in future restructuring activities. When we close a facility, if necessary, we recognize a write-down to reduce the carrying value of related property, plant and equipment and lease ROU assets to their fair value and record charges for severance and other employee-related costs. We reduce the carrying value of the assets classified as held for sale to their estimated fair value less cost to sell. Any subsequent change in fair value less cost to sell prior to disposition is recognized as it is identified; however, no gain is recognized in excess of the cumulative loss previously recorded unless the actual selling price exceeds the original carrying value upon its ultimate sale. For facility closures, we also generally expect to record costs for equipment relocation, facility carrying costs and costs to terminate a lease or contract before the end of its term. Although specific circumstances vary, our strategy has generally been to consolidate our sales and operations into large well-equipped facilities that operate at high utilization rates and take advantage of available capacity created by operational excellence initiatives and/or further optimize our system following mergers and acquisitions or a changing business environment. Therefore, we generally transfer a substantial portion of each closed facility's production to our other facilities. We believe these actions have allowed us to more effectively manage our business. Identifying and calculating the cost to exit operations requires certain assumptions to be made, the most significant of which are anticipated future liabilities, including severance costs, contractual obligations, and the adjustments of property, plant and equipment and lease ROU assets to their fair value. We believe our estimates are reasonable, considering our knowledge of the industries we operate in, previous experience in exiting activities and valuations we may obtain from independent third parties. Although our estimates have been reasonably accurate in the past, significant judgment is required, and these estimates and assumptions may change as additional information becomes available and facts or circumstances change. See “ Note 4. Restructuring and Other Costs ” for additional information, including a description of the type of costs incurred. Business Combinations From time to time, we may enter into business combinations. In accordance with ASC 805, “ Business Combinations ”, we generally recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition. We measure goodwill as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition date fair values of the identifiable assets acquired an |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 2. Revenue Recognition Disaggregated Revenue ASC 606 requires that we disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The tables below disaggregate our revenue by geographical market and product type (segment). Net sales are attributed to geographical markets based on our selling location. As discussed above, effective October 1, 2021, we reorganized our segment reporting to four reportable segments and have recast prior period disclosures to conform to the new segment structure and modified the geographical markets presented. In fiscal 2020, we completed our real estate monetization and ceased reporting the results of the Land and Development segment as a separate segment. Therefore, we did no t have any Land and Development sales in fiscal 2022 or 2021. The following tables summarize our disaggregated revenue by primary geographical markets for fiscal 2022, 2021 and 2020 (in millions): Year Ended September 30, 2022 Corrugated Packaging Consumer Packaging Global Paper Distribution Intersegment Sales Total U.S. $ 8,264.7 $ 2,870.9 $ 5,344.8 $ 1,238.3 $ ( 357.2 ) $ 17,361.5 Canada 578.8 510.0 227.7 16.1 ( 7.5 ) 1,325.1 Latin America 456.4 194.4 230.7 164.5 ( 0.4 ) 1,045.6 EMEA 7.7 1,079.9 63.2 — ( 0.3 ) 1,150.5 Asia Pacific — 310.0 63.8 — — 373.8 Total $ 9,307.6 $ 4,965.2 $ 5,930.2 $ 1,418.9 $ ( 365.4 ) $ 21,256.5 Year Ended September 30, 2021 Corrugated Packaging Consumer Packaging Global Paper Distribution Intersegment Sales Total U.S. $ 7,518.8 $ 2,463.7 $ 4,547.7 $ 1,105.9 $ ( 318.9 ) $ 15,317.2 Canada 519.3 473.0 205.2 19.7 ( 6.8 ) 1,210.4 Latin America 357.3 159.1 100.1 129.2 ( 0.3 ) 745.4 EMEA 5.1 1,038.2 62.7 — — 1,106.0 Asia Pacific — 299.9 67.3 — ( 0.1 ) 367.1 Total $ 8,400.5 $ 4,433.9 $ 4,983.0 $ 1,254.8 $ ( 326.1 ) $ 18,746.1 Year Ended September 30, 2020 Corrugated Packaging Consumer Packaging Global Paper Distribution Land and Development Intersegment Sales Total U.S. $ 7,054.6 $ 2,416.5 $ 4,300.4 $ 987.1 $ 18.9 $ ( 268.6 ) $ 14,508.9 Canada 452.6 436.0 222.3 17.3 — ( 3.5 ) 1,124.7 Latin America 275.1 120.3 118.0 98.0 — ( 0.3 ) 611.1 EMEA 7.9 939.6 66.5 — — — 1,014.0 Asia Pacific — 278.0 42.4 — — ( 0.3 ) 320.1 Total $ 7,790.2 $ 4,190.4 $ 4,749.6 $ 1,102.4 $ 18.9 $ ( 272.7 ) $ 17,578.8 Revenue Contract Balances Contract assets are rights to consideration in exchange for goods that we have transferred to a customer when that right is conditional on something other than the passage of time. Contract assets are reduced when the control of the goods passes to the customer. Contract liabilities represent obligations to transfer goods or services to a customer for which we have received consideration. Contract liabilities are reduced once control of the goods is transferred to the customer. The opening and closing balances of our contract assets and contract liabilities are as follows. Contract assets and contract liabilities are reported within Other current assets and Other current liabilities, respectively, on the consolidated balance sheets (in millions). Contract Assets Contract Liabilities Beginning balance - October 1, 2021 $ 199.1 $ 12.8 Ending balance - September 30, 2022 244.0 13.9 Increase $ 44.9 $ 1.1 Performance Obligations and Significant Judgments We primarily derive revenue from fixed consideration. Certain contracts may also include variable consideration, typically in the form of cash discounts and volume rebates. If a contract with a customer includes variable consideration, we estimate the expected cash discounts and other customer refunds based on historical experience. We concluded this method is consistent with the most likely amount method under ASC 606 and allows us to make the best estimate of the consideration we will be entitled to from customers. Contracts or purchase orders with customers could include a single type of product or multiple types and grades of products. Regardless, the contract price with the customer is agreed to at the individual product level outlined in the customer contracts or purchase orders. Management has concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product. |
Acquisitions and Investments
Acquisitions and Investments | 12 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Investments | Note 3. Acquisiti ons and Investments We account for acquisitions in accordance with ASC 805, “Business Combinations”. The estimated fair values of all assets acquired and liabilities assumed in acquisitions are provisional and may be revised as a result of additional information obtained during the measurement period of up to one year from the acquisition date. There have been no significant acquisitions in the last three fiscal years. Grupo Gondi Acquisition On July 27, 2022, we announced our entry into an agreement to acquire the remaining 67.7 % interest in Grupo Gondi for $ 970 million, plus the assumption of debt, representing an estimated implied enterprise value of $ 1.763 billion. Grupo Gondi is a leading integrated producer of corrugated and consumer packaging that operates four paper mills, nine corrugated packaging plants and six high graphic plants throughout Mexico, producing sustainable packaging for a wide range of end markets in the region. This tuck-in acquisition will provide us with further geographic and end market diversification as well as position us to continue to grow in the attractive Latin American market. The acquisition, which is subject to a number of customary closing conditions, including approval by regulatory authorities in Mexico, is expected to close by the end of this calendar year, after which we will consolidate Grupo Gondi into our financial statements. |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Sep. 30, 2022 | |
Restructuring And Other Costs [Abstract] | |
Restructuring and Other Costs | Note 4. Restructur ing and Other Costs Summary of Restructuring and Other Initiatives We recorded pre-tax restructuring and other costs of $ 401.6 million, $ 31.5 million and $ 112.7 million for fiscal 2022, 2021 and 2020 , respectively. Of these costs, $ 325.5 million, $ 12.6 million and $ 29.8 million were non-cash for fiscal 2022, 2021 and 2020, respectively. These amounts are not comparable since the timing and scope of the individual actions associated with each restructuring, acquisition, integration or divestiture vary. We present our restructuring and other costs in more detail below. The following table summarizes our Restructuring and other costs for fiscal 2022, 2021 and 2020 (in millions): 2022 2021 2020 Restructuring $ 392.1 $ 28.5 $ 93.7 Other 9.5 3.0 19.0 Restructuring and Other Costs $ 401.6 $ 31.5 $ 112.7 Restructuring Our restructuring charges are primarily associated with restructuring portions of our operations (i.e., partial or complete plant closures). A partial plant closure may consist of shutting down a machine and/or a workforce reduction. We have incurred various reduction in workforce actions, plant closure activities, impairment costs and certain lease terminations from time to time. We are committed to improving our return on invested capital as well as maximizing the performance of our assets. In fiscal 2022, we recorded various impairments and other charges associated with our decision to permanently cease operations at our Panama City, FL mill and to permanently close the corrugated medium manufacturing operations at the St. Paul, MN mill, as reflected in the table below in the Global Paper segment. Both operations were expected to require significant capital investment to maintain and improve going forward, and the production of fluff pulp (at Panama City) was not a priority in our strategy to focus on higher value markets. Closing these operations allows us to redirect significant capital that would have been required to keep them competitive in the future to improve other key assets. We expect to record future restructuring charges, primarily associated with future carrying costs. The Panama City, FL mill had produced containerboard, primarily heavyweight kraft and fluff pulp, with a combined annual capacity of 645,000 tons of which approximately two-thirds was shipped to external customers. Select grades of containerboard previously produced at the mill are expected t o be manufactured at other WestRock facilities. The corrugated medium manufacturing operations at St. Paul, MN had annual capacity of 200,000 tons of which approximately two-fifths was shipped to external customers. In fiscal 2021, our restructuring charges included an impairment of assets and a gain on lease termination associated with our Richmond, VA regional office (in Corporate). In fiscal 2020, our restructuring charges included those associated with the announced shutdown of a bleached paperboard machine at our Evadale, TX mill, employee costs due to merger and acquisition-related workforce reductions and a voluntary retirement program. Due to market factors in fiscal 2021, we decided to delay the machine shutdown at our Evadale, TX mill, and in fiscal 2022, we decided to cancel our plans to shut down the machine and reversed certain employee and other accrued restructuring charges. The machine is capable of swinging between selected grades (e.g., linerboard, bleached paperboard and pulp), and we intend to utilize the machine to produce selected grades based on demand. While restructuring costs are not charged to our segments and, therefore, do not reduce each segment's Adjusted EBITDA, we highlight the segment to which the charges relate. As discussed in “ Note 1. Description of Business and Summary of Significant Accounting Policies — Reclassifications and Adjustments ”, effective October 1, 2021, we reorganized our segment reporting to four reportable segments and have recast the prior year disclosure. Since we do not allocate restructuring costs to our segments, charges incurred in the Global Paper segment will represent all charges associated with our vertically integrated mills and recycling operations. These operations manufacture for the benefit of each reportable segment that ultimately sells the associated paper and packaging products to our external customers. Prior to the completion of our Land and Development monetization program in fiscal 2020, we had an additional reportable segment which previously sold real estate, primarily in the Charleston, SC region. The following table presents a summary of restructuring charges related to active restructuring initiatives that we incurred during the last three fiscal years, the cumulative recorded amount since we started the initiatives, and our estimate of the total we expect to incur (in millions): 2022 2021 2020 Cumulative Total Corrugated Packaging PP&E and related costs $ 0.3 $ 2.6 $ 0.4 $ 3.9 $ 3.9 Severance and other employee costs 0.5 4.7 7.5 29.2 29.2 Other restructuring costs 2.6 2.9 5.2 12.8 19.2 Restructuring total $ 3.4 $ 10.2 $ 13.1 $ 45.9 $ 52.3 Consumer Packaging PP&E and related costs $ — $ 0.5 $ 1.0 $ 3.3 $ 3.3 Severance and other employee costs 6.2 9.7 19.4 36.5 36.5 Other restructuring costs 2.7 3.1 4.1 13.1 13.1 Restructuring total $ 8.9 $ 13.3 $ 24.5 $ 52.9 $ 52.9 Global Paper PP&E and related costs $ 349.3 $ 0.2 $ 24.3 $ 400.6 $ 400.6 Severance and other employee costs 11.2 — 1.4 17.8 20.0 Other restructuring costs 8.0 0.1 5.5 28.9 115.0 Restructuring total $ 368.5 $ 0.3 $ 31.2 $ 447.3 $ 535.6 Distribution Severance and other employee costs $ — $ — $ 0.2 $ 0.2 $ 0.2 Other restructuring costs 1.0 — — 1.0 1.0 Restructuring total $ 1.0 $ — $ 0.2 $ 1.2 $ 1.2 Land and Development Severance and other employee costs $ — $ — $ — $ 0.1 $ 0.1 Other restructuring costs — — 2.0 2.0 2.0 Restructuring total $ — $ — $ 2.0 $ 2.1 $ 2.1 Corporate PP&E and related costs $ 2.0 $ 8.8 $ — $ 10.8 $ 10.8 Severance and other employee costs 3.0 0.9 21.1 62.5 62.5 Other restructuring costs 5.3 ( 5.0 ) 1.6 4.5 4.5 Restructuring total $ 10.3 $ 4.7 $ 22.7 $ 77.8 $ 77.8 Total PP&E and related costs $ 351.6 $ 12.1 $ 25.7 $ 418.6 $ 418.6 Severance and other employee costs 20.9 15.3 49.6 146.3 148.5 Other restructuring costs 19.6 1.1 18.4 62.3 154.8 Restructuring total $ 392.1 $ 28.5 $ 93.7 $ 627.2 $ 721.9 We have defined “PP&E and related costs ” as used in this Note 4 primarily as property, plant and equipment write-downs, subsequent adjustments to fair value for assets classified as held for sale, subsequent (gains) or losses on sales of property, plant and equipment, related parts and supplies on such assets, and deferred major maintenance costs, if any. We define " Other restructuring costs " as facility carrying costs, equipment and inventory relocation costs, lease or other contract termination costs, and other items. Other Costs Our other costs consist of acquisition, integration and divestiture costs. We incur costs when we acquire or divest businesses. Acquisition costs include costs associated with transactions, whether consummated or not, such as advisory, legal, accounting, valuation and other professional or consulting fees, as well as potential litigation costs associated with those activities. We incur integration costs pre- and post-acquisition that reflect work performed to facilitate merger and acquisition integration, such as work associated with information systems and other projects including spending to support future acquisitions, and primarily consist of professional services and labor. Divestiture costs consist primarily of similar professional fees. We consider acquisition, integration and divestiture costs to be corporate costs regardless of the segment or segments involved in the transaction. The following table presents acquisition, integration and divestiture costs that we incurred during the last three fiscal years (in millions): 2022 2021 2020 Acquisition costs $ 4.4 $ 0.5 $ 0.2 Integration costs 0.7 1.7 18.7 Divestiture costs 4.4 0.8 0.1 Other total $ 9.5 $ 3.0 $ 19.0 The following table summarizes the changes in the restructuring accrual, which is primarily composed of accrued severance and other employee costs, and a reconciliation of the restructuring accrual charges to the line item “ Restructuring and other costs ” on our consolidated statements of operations for the last three fiscal years (in millions): 2022 2021 2020 Accrual at beginning of fiscal year $ 13.4 $ 17.2 $ 32.3 Additional accruals 33.4 17.4 51.3 Payments ( 15.9 ) ( 17.2 ) ( 56.6 ) Adjustment to accruals ( 5.6 ) ( 2.1 ) ( 6.2 ) Foreign currency rate changes and other ( 0.1 ) ( 1.9 ) ( 3.6 ) Accrual at end of fiscal year $ 25.2 $ 13.4 $ 17.2 Reconciliation of accruals and charges to restructuring and other costs (in millions): 2022 2021 2020 Additional accruals and adjustments to accruals $ 27.8 $ 15.3 $ 45.1 PP&E and related costs 351.6 12.1 25.7 Severance and other employee costs 0.5 0.3 1.6 Acquisition costs 4.4 0.5 0.2 Integration costs 0.7 1.7 18.7 Divestiture costs 4.4 0.8 0.1 Other restructuring costs 12.2 0.8 21.3 Total restructuring and other costs, net $ 401.6 $ 31.5 $ 112.7 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Plans [Abstract] | |
Retirement Plans | Note 5. Ret irement Plans We have defined benefit pension plans and other postretirement benefit plans for certain U.S. and non-U.S. employees. We use a September 30 measurement date for our plans. Certain plans were frozen for salaried and non-union hourly employees at various times in the past, and nearly all of our remaining salaried and non-union hourly employees accruing benefits ceased accruing benefits as of December 31, 2020. In addition, we participate in several MEPPs that provide retirement benefits to certain union employees in accordance with various CBAs. We also have supplemental executive retirement plans and other non-qualified defined benefit pension plans that provide unfunded supplemental retirement benefits to certain of our current and former executives. The supplemental executive retirement plans provide for incremental pension benefits in excess of those offered in the plan. The other postretirement benefit plans provide certain health care and life insurance benefits for certain salaried and hourly employees who meet specified age and service requirements as defined by the plans. The benefits under our defined benefit pension plans are based on either compensation or a combination of years of service and negotiated benefit levels, depending upon the plan. We allocate our pension assets to several investment management firms across a variety of investment styles. Our defined benefit Investment Committee meets at least four times a year with our investment advisors to review each management firm’s performance and monitors its compliance with its stated goals, our investment policy and applicable regulatory requirements in the U.S., Canada, and other jurisdictions. Investment returns vary. We believe that, by investing in a variety of asset classes and utilizing multiple investment management firms, we can create a portfolio that yields adequate returns with reduced volatility. Our qualified U.S. plans employ a liability matching strategy augmented with Treasury futures to materially hedge against interest rate risk. After consultation with our actuary and investment advisors, we adopted the target allocations in the table below for our pension plans in an effort to produce the desired performance. These target allocations are guidelines, not limitations, and occasionally plan fiduciaries will approve allocations above or below target ranges or modify the allocations. Our target asset allocations by asset category at September 30 were as follows: Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Equity investments 18 % 23 % 19 % 21 % Fixed income investments 73 % 73 % 73 % 74 % Short-term investments 1 % 1 % 1 % 1 % Other investments 8 % 3 % 7 % 4 % Total 100 % 100 % 100 % 100 % Our asset allocations by asset category at September 30 were as follows: Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Equity investments 18 % 21 % 21 % 21 % Fixed income investments 70 % 73 % 71 % 72 % Short-term investments 4 % 2 % 3 % 2 % Other investments 8 % 4 % 5 % 5 % Total 100 % 100 % 100 % 100 % We manage our retirement plans in accordance with the provisions of the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations thereunder as well as applicable legislation in Canada and other foreign countries. Our investment policy objectives include maximizing long-term returns at acceptable risk levels, diversifying among asset classes, as applicable, and among investment managers, as well as establishing certain risk parameters within asset classes. We have allocated our investments within the equity and fixed income asset classes to sub-asset classes designed to meet these objectives. In addition, our other investments support multi-strategy objectives. In developing our weighted average expected rate of return on plan assets, we consulted with our investment advisors and evaluated criteria based on historical returns by asset class and long-term return expectations by asset class. We expect to contribute approximately $ 21 million to our U.S. and non-U.S. pension plans in fiscal 2023. However, it is possible that our assumptions or legislation may change, actual market performance may vary or we may decide to contribute a different amount. Therefore, the amount we contribute may vary materially. The expense for MEPPs for collective bargaining employees generally equals the contributions for these plans, excluding estimated accruals for withdrawal liabilities or adjustments to those accruals. The weighted average assumptions used to measure the benefit plan obligations at September 30, were: Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Discount rate 5.63 % 5.12 % 2.99 % 2.63 % Interest crediting rate 3.08 % N/A 3.48 % N/A Rate of compensation increase 2.50 % 2.97 % 2.50 % 2.65 % At September 30, 2022, the discount rate for the U.S. pension plans was determined based on the yield on a theoretical portfolio of high-grade corporate bonds, and the discount rate for the non-U.S. plans was determined based on a yield curve developed by our actuary. The theoretical portfolio of high-grade corporate bonds used to select the September 30, 2022 discount rate for the U.S. pension plans includes bonds generally rated Aa- or better with at least $ 100 million outstanding par value and bonds that are non-callable (unless the bonds possess a “make whole” feature). The theoretical portfolio of bonds has cash flows that generally match our expected benefit payments in future years. Our assumption regarding the future rate of compensation increases is reviewed periodically and is based on both our internal planning projections and recent history of actual compensation increases. We typically review our expected long-term rate of return on plan assets periodically through an asset allocation study with either our actuary or investment advisor. In fiscal 2023, our expected rate of return used to determine net periodic benefit cost is 6.5 % for our U.S. plans and 5.1 % for our non-U.S. plans. Our expected rates of return in fiscal 2023 are based on an analysis of our long-term expected rate of return and our current asset allocation. In December 2019, the USW ratified a new master agreement that applies to substantially all of our U.S. facilities represented by the USW. The agreement has a four-year term and covers a number of specific items, including wages, medical coverage and certain other benefit programs, substance abuse testing, and safety. Individual facilities will continue to have local agreements for subjects not covered by the master agreement and those agreements will continue to have staggered terms. The master agreement permits us to apply its terms to USW employees who work at facilities we acquire during the term of the agreement. The following table shows the changes in benefit obligation, plan assets and funded status for the years ended September 30 (in millions): Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Change in projected benefit obligation: Benefit obligation at beginning of fiscal year $ 5,239.1 $ 1,438.5 $ 5,264.5 $ 1,471.5 Service cost 40.8 7.0 42.5 8.6 Interest cost 152.1 36.1 154.6 32.7 Amendments 0.3 — 5.0 0.6 Actuarial (gain) loss ( 1,317.1 ) ( 340.1 ) 20.7 ( 66.1 ) Plan participant contributions — 1.7 — 1.9 Benefits paid ( 246.9 ) ( 77.6 ) ( 248.2 ) ( 78.0 ) Curtailments — 0.2 — — Settlements ( 1.8 ) ( 2.4 ) — ( 1.4 ) Foreign currency rate changes — ( 128.1 ) — 68.7 Benefit obligation at end of fiscal year $ 3,866.5 $ 935.3 $ 5,239.1 $ 1,438.5 Change in plan assets: Fair value of plan assets at beginning of fiscal year $ 5,627.0 $ 1,455.7 $ 5,369.7 $ 1,418.0 Actual (loss) gain on plan assets ( 1,281.4 ) ( 322.1 ) 491.9 38.7 Employer contributions 13.0 8.2 13.6 9.6 Plan participant contributions — 1.7 — 1.9 Benefits paid ( 246.9 ) ( 77.6 ) ( 248.2 ) ( 78.0 ) Settlements ( 1.8 ) ( 2.5 ) — ( 1.4 ) Foreign currency rate changes — ( 133.7 ) — 66.9 Fair value of plan assets at end of fiscal year $ 4,109.9 $ 929.7 $ 5,627.0 $ 1,455.7 Funded (unfunded) status $ 243.4 $ ( 5.6 ) $ 387.9 $ 17.2 Amounts recognized in the Consolidated Balance Sheets: Prepaid pension asset $ 379.1 $ 61.2 $ 566.8 $ 107.5 Other current liabilities ( 11.7 ) ( 1.4 ) ( 13.5 ) ( 1.0 ) Pension liabilities, net of current portion ( 124.0 ) ( 65.4 ) ( 165.4 ) ( 89.3 ) Over (under) funded status at end of fiscal year $ 243.4 $ ( 5.6 ) $ 387.9 $ 17.2 The actuarial (gain) loss in benefit obligation for the U.S. Plans and Non-U.S. Plans is generally driven by a change in discount rates and to a lesser degree the rate of compensation change in the Non-U.S. Plans. Certain U.S. plans have benefit obligations in excess of plan assets. These plans, which consist primarily of non-qualified plans, have aggregate projected benefit obligations of $ 164.5 million, aggregate accumulated benefit obligations of $ 164.5 million, and aggregate fair value of plan assets of $ 28.8 million at September 30, 2022. Our qualified U.S. plans were in a net overfunded position at September 30, 2022. The accumulated benefit obligation of U.S. and non-U.S. pension plans was $ 4,779.1 million and $ 6,627.1 million at September 30, 2022 and 2021, respectively. The pre-tax amounts in accumulated other comprehensive loss at September 30 not yet recognized as components of net periodic pension cost, including noncontrolling interest, consist of (in millions): Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Net actuarial loss $ 849.8 $ 155.6 $ 573.1 $ 125.9 Prior service cost 34.6 1.8 42.4 2.6 Total accumulated other comprehensive loss $ 884.4 $ 157.4 $ 615.5 $ 128.5 The pre-tax amounts recognized in other comprehensive loss (income), including noncontrolling interest, are as follows at September 30 (in millions): Pension Plans 2022 2021 2020 Net actuarial loss (gain) arising during period $ 315.3 $ ( 208.0 ) $ ( 26.2 ) Amortization and settlement recognition of net actuarial loss ( 8.9 ) ( 34.5 ) ( 48.2 ) Prior service cost arising during period 0.2 5.6 25.0 Amortization of prior service cost ( 8.9 ) ( 8.4 ) ( 7.8 ) Net other comprehensive loss (income) recognized $ 297.7 $ ( 245.3 ) $ ( 57.2 ) The net periodic pension income recognized in the consolidated statements of operations is comprised of the following for fiscal years ended (in millions): Pension Plans 2022 2021 2020 Service cost $ 47.8 $ 51.1 $ 52.6 Interest cost 188.2 187.3 198.6 Expected return on plan assets ( 368.6 ) ( 368.1 ) ( 362.3 ) Amortization of net actuarial loss 8.8 34.2 46.8 Amortization of prior service cost 8.4 8.4 7.5 Curtailment loss 0.5 — 0.4 Settlement loss 0.1 0.4 1.4 Company defined benefit plan income ( 114.8 ) ( 86.7 ) ( 55.0 ) Multiemployer and other plans 1.5 1.6 2.0 Net pension income $ ( 113.3 ) $ ( 85.1 ) $ ( 53.0 ) The Multiemployer and other plans line in the table above excludes the estimated withdrawal liabilities recorded. See “ Note 5. Retirement Plans — Multiemployer Plans ” for additional information. The consolidated statements of operations line item “Pension and other postretirement non-service income” is equal to the non-service elements of our “Company defined benefit plan income” and our “Net postretirement cost” outlined in this note. Weighted-average assumptions used in the calculation of benefit plan expense for fiscal years ended: Pension Plans 2022 2021 2020 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 2.99 % 2.63 % 3.01 % 2.16 % 3.35 % 2.42 % Interest crediting rate 3.48 % N/A 3.47 % N/A 4.22 % N/A Rate of compensation increase 2.50 % 2.65 % 2.50 % 2.68 % 3.00 % 2.65 % Expected long-term rate of return on 5.75 % 3.81 % 6.00 % 3.73 % 6.25 % 4.26 % For our U.S. pension and postretirement plans, we considered the mortality tables and improvement scales published by the Society of Actuaries and evaluated our specific mortality experience to establish mortality assumptions. Based on our experience and in consultation with our actuaries, for fiscal 2022, 2021 and 2020 we utilized the base Pri-2012 mortality tables with specific gender and job classification increases applied for fiscal 2022 ranging from 7 % to 14 %, fiscal 2021 ranging from 6 % to 13 % and for fiscal 2020 ranging from 5 % to 12 %. For our Canadian pension and postretirement plans, we utilized the 2014 Private Sector Canadian Pensioners Mortality Table adjusted to reflect industry and our mortality experience for fiscal 2022, 2021 and 2020. As of September 30, 2022, these adjustment factors were updated to reflect the most recent mortality experience. Our projected estimated benefit payments (unaudited), which reflect expected future service, as appropriate, are as follows (in millions): Pension Plans U.S. Plans Non-U.S. Plans Fiscal 2023 $ 275.9 $ 90.9 Fiscal 2024 $ 279.9 $ 68.8 Fiscal 2025 $ 287.0 $ 68.7 Fiscal 2026 $ 290.0 $ 68.3 Fiscal 2027 $ 281.8 $ 68.2 Fiscal Years 2028 – 2032 $ 1,436.1 $ 338.0 The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2022 (in millions): Total Quoted Prices Significant Equity securities: U.S. equities (1) $ 150.7 $ 150.7 $ — Non-U.S. equities (1) 85.9 85.9 — Fixed income securities: U.S. government securities (2) 164.3 — 164.3 Non-U.S. government securities (3) 74.5 — 74.5 U.S. corporate bonds (3) 2,173.7 95.4 2,078.3 Non-U.S. corporate bonds (3) 545.0 — 545.0 Other fixed income (4) 223.1 — 223.1 Short-term investments (5) 181.9 181.9 — Benefit plan assets measured in the fair value hierarchy $ 3,599.1 $ 513.9 $ 3,085.2 Assets measured at NAV (6) 1,440.5 Total benefit plan assets $ 5,039.6 The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2021 (in millions): Total Quoted Prices Significant Equity securities: U.S. equities (1) $ 275.1 $ 275.1 $ — Non-U.S. equities (1) 9.4 9.4 — Fixed income securities: U.S. government securities (2) 292.4 — 292.4 Non-U.S. government securities (3) 113.2 — 113.2 U.S. corporate bonds (3) 2,987.8 137.6 2,850.2 Non-U.S. corporate bonds (3) 511.1 — 511.1 Other fixed income (4) 435.5 — 435.5 Short-term investments (5) 195.5 195.5 — Benefit plan assets measured in the fair value hierarchy $ 4,820.0 $ 617.6 $ 4,202.4 Assets measured at NAV (6) 2,262.7 Total benefit plan assets $ 7,082.7 (1) Equity securities are comprised of the following investment types: (i) common stock, (ii) preferred stock, and (iii) equity exchange traded funds. Level 1 investments in common and preferred stocks and exchange traded funds are valued using quoted market prices multiplied by the number of shares owned. (2) U.S. government securities include treasury and agency debt. These investments are valued using broker quotes in an active market. (3) The level 1 non-U.S. government securities investment is an exchange cleared swap valued using quoted market prices. The level 1 U.S. corporate bonds category is primarily comprised of U.S. dollar denominated investment grade securities and valued using quoted market prices. Level 2 investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data. (4) Other fixed income is comprised of municipal and asset-backed securities. Investments are valued utilizing a market approach that includes various valuation techniques and sources, such as broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads and/or other applicable reference data. (5) Short-term investments are valued at $ 1.00 /unit, which approximates fair value. Amounts are generally invested in interest-bearing accounts. (6) Investments that are measured at net asset value (“ NAV ”) (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The following table summarizes assets measured at fair value based on NAV per share as a practical expedient as of September 30, 2022 and 2021 (in millions): Fair value Redemption Redemption Unfunded September 30, 2022 Hedge funds (1) $ 26.4 Monthly Up to 30 days $ — Commingled funds, private equity, private real (2) 1,031.9 Monthly Up to 60 days 199.7 Fixed income and fixed income related (3) 382.2 Monthly Up to 10 days — $ 1,440.5 $ 199.7 September 30, 2021 Hedge funds (1) $ 38.9 Monthly Up to 30 days $ — Commingled funds, private equity, private real (2) 1,498.2 Monthly Up to 60 days 171.7 Fixed income and fixed income related (3) 725.6 Monthly Up to 10 days — $ 2,262.7 $ 171.7 (1) Hedge fund investments are primarily made through shares of limited partnerships or similar structures. Hedge funds are typically valued monthly by third-party administrators that have been appointed by the funds’ general partners. (2) Commingled fund investments are valued at the NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques. (3) Fixed income and fixed income related instruments consist of commingled debt funds, which are valued at their NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques. We maintain holdings in certain private equity partnerships and private real estate investments for which a liquid secondary market does not exist. The private equity partnerships are commingled investments. Valuation techniques, such as discounted cash flow and market based comparable analyses, are used to determine fair value of the private equity investments. Unobservable inputs used for the discounted cash flow technique include projected future cash flows and the discount rate used to calculate present value. Unobservable inputs used for the market-based comparisons technique include earnings before interest, taxes, depreciation and amortization multiples in other comparable third-party transactions, price to earnings ratios, liquidity, current operating results, as well as input from general partners and other pertinent information. Private equity investments have been valued using NAV as a practical expedient. Private real estate investments are commingled investments. Valuation techniques, such as discounted cash flow and market based comparable analyses, are used to determine fair value of the private equity investments. Unobservable inputs used for the discounted cash flow technique include projected future cash flows and the discount rate used to calculate present value. Unobservable inputs used for the market-based comparison technique include a combination of third-party appraisals, replacement cost, and comparable market prices. Private real estate investments have been valued using NAV as a practical expedient. Equity-related investments are hedged equity investments in a commingled fund that consist primarily of equity indexed investments which are hedged by options and also hold collateral in the form of short-term treasury securities. Equity related investments have been valued using NAV as a practical expedient. Postretirement Plans The postretirement benefit plans provide certain health care and life insurance benefits for certain salaried and hourly employees who meet specified age and service requirements as defined by the plans. The weighted average assumptions used to measure the benefit plan obligations at September 30 were: Postretirement plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Discount rate 5.57 % 7.56 % 2.98 % 6.45 % The following table shows the changes in benefit obligation, plan assets and funded status for the fiscal years ended September 30 (in millions): Postretirement Plans 2022 2021 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Change in projected benefit obligation: Benefit obligation at beginning of fiscal year $ 86.4 $ 58.3 $ 93.6 $ 62.5 Service cost 0.6 0.4 0.6 0.6 Interest cost 2.6 3.8 2.8 3.1 Actuarial gain ( 16.3 ) ( 9.8 ) ( 6.1 ) ( 8.1 ) Benefits paid ( 4.8 ) ( 2.8 ) ( 4.5 ) ( 2.8 ) Foreign currency rate changes — ( 1.6 ) — 3.0 Benefit obligation at end of fiscal year $ 68.5 $ 48.3 $ 86.4 $ 58.3 Change in plan assets: Fair value of plan assets at beginning of fiscal year $ — $ — $ — $ — Employer contributions 4.8 2.8 4.5 2.8 Benefits paid ( 4.8 ) ( 2.8 ) ( 4.5 ) ( 2.8 ) Fair value of plan assets at end of fiscal year $ — $ — $ — $ — Underfunded Status $ ( 68.5 ) $ ( 48.3 ) $ ( 86.4 ) $ ( 58.3 ) Amounts recognized in the Consolidated Balance Sheets: Other current liabilities $ ( 8.7 ) $ ( 2.7 ) $ ( 8.2 ) $ ( 2.8 ) Postretirement benefit liabilities, net of current portion ( 59.8 ) ( 45.6 ) ( 78.2 ) ( 55.5 ) Underfunded status at end of fiscal year $ ( 68.5 ) $ ( 48.3 ) $ ( 86.4 ) $ ( 58.3 ) The pre-tax amounts in accumulated other comprehensive loss at September 30 not yet recognized as components of net periodic postretirement cost, including noncontrolling interest, consist of (in millions): Postretirement Plans 2022 2021 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Net actuarial (gain) loss $ ( 32.2 ) $ ( 4.8 ) $ ( 16.1 ) $ 4.8 Prior service (credit) cost ( 2.3 ) 1.0 ( 3.2 ) 1.1 Total accumulated other comprehensive (income) loss $ ( 34.5 ) $ ( 3.8 ) $ ( 19.3 ) $ 5.9 The pre-tax amounts recognized in other comprehensive loss (income), including noncontrolling interest, are as follows at September 30 (in millions): Postretirement Plans 2022 2021 2020 Net actuarial gain arising during period $ ( 26.2 ) $ ( 14.2 ) $ ( 8.4 ) Amortization and settlement recognition of net actuarial 0.5 0.6 ( 0.1 ) Prior service cost arising during period — — 1.9 Amortization or curtailment recognition of prior service credit 0.7 2.4 2.7 Net other comprehensive income recognized $ ( 25.0 ) $ ( 11.2 ) $ ( 3.9 ) The net periodic postretirement cost recognized in the consolidated statements of operations is comprised of the following for fiscal years ended (in millions): Postretirement Plans 2022 2021 2020 Service cost $ 1.0 $ 1.2 $ 1.3 Interest cost 6.4 5.9 6.9 Amortization of net actuarial (gain) loss ( 0.5 ) ( 0.6 ) 0.1 Amortization of prior service credit ( 0.7 ) ( 2.4 ) ( 2.7 ) Net postretirement cost $ 6.2 $ 4.1 $ 5.6 The assumed health care cost trend rates used in measuring the accumulated postretirement benefit obligation (“ APBO ”) are as follows at September 30, 2022: U.S. Plans Health care cost trend rate assumed for next year 4.90 % Rate to which the cost trend rate is assumed to decline (the ultimate 4.00 % Year the rate reaches the ultimate trend rate 2047 Non-U.S. Plans Health care cost trend rate assumed for next year 5.68 % Rate to which the cost trend rate is assumed to decline (the ultimate 5.68 % Year the rate reaches the ultimate trend rate 2022 Weighted-average assumptions used in the calculation of benefit plan expense for fiscal years ended: Postretirement Plans 2022 2021 2020 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 2.98 % 6.45 % 3.00 % 4.84 % 3.34 % 5.64 % Rate of compensation increase N/A N/A N/A N/A N/A N/A Our projected estimated benefit payments (unaudited), which reflect expected future service, as appropriate, are as follows (in millions): Postretirement Plans U.S. Plans Non-U.S. Plans Fiscal 2023 $ 8.7 $ 2.7 Fiscal 2024 $ 7.5 $ 2.8 Fiscal 2025 $ 6.9 $ 2.9 Fiscal 2026 $ 6.5 $ 3.0 Fiscal 2027 $ 6.1 $ 3.1 Fiscal Years 2028 – 2032 $ 26.6 $ 17.6 Multiemployer Plans We participate in several MEPPs that provide retirement benefits to certain union employees in accordance with various CBAs. The risks of participating in MEPPs are different from the risks of participating in single-employer pension plans. These risks include (i) assets contributed to a MEPP by one employer are used to provide benefits to employees of all participating employers, (ii) if a participating employer withdraws from a MEPP, the unfunded obligations of the MEPP allocable to such withdrawing employer may be borne by the remaining participating employers, and (iii) if we withdraw from a MEPP, we may be required to pay that plan an amount based on our allocable share of the unfunded vested benefits of the plan, referred to as a withdrawal liability, as well as a share of the MEPP’s accumulated funding deficiency. Contributions to MEPPs are established by the applicable CBAs; however, our required contributions may increase based on the funded status of a MEPP and legal requirements, such as those set forth in the Pension Act, which requires substantially underfunded MEPPs to implement a FIP or a RP to improve their funded status. Contributions to MEPPs are individually and in the aggregate not material. In the normal course of business, we evaluate our potential exposure to MEPPs, including with respect to potential withdrawal liabilities. In fiscal 2018, we submitted formal notification to withdraw from PIUMPF and Central States, and recorded estimated withdrawal liabilities for each. The PIUMPF estimated withdrawal liability assumed both a payment for withdrawal liability and for our proportionate share of PIUMPF’s accumulated funding deficiency. The estimated withdrawal liability excludes the potential impact of a future mass withdrawal of other employers from PIUMPF, which was not considered probable or reasonably estimable and was discounted at a credit adjusted risk free rate. Subsequently, we continued to refine the estimate of the withdrawal liability, the impact of which was not significant. It is reasonably possible that we may incur withdrawal liabilities with respect to certain other MEPPs in connection with such withdrawals. Our estimate of any such withdrawal liability, both individually and in the aggregate, is not material for the remaining plans in which we participate. In September 2019, we received a demand from PIUMPF asserting that we owe $ 170.3 million on an undiscounted basis (approximately $ 0.7 million per month for the next 20 years) with respect to our withdrawal liability. The initial demand did not address any assertion of liability for PIUMPF’s accumulated funding deficiency. In October 2019, we received two additional demand letters from PIUMPF related to a subsidiary of ours asserting that we owe $ 2.3 million on an undiscounted basis to be paid over 20 years with respect to the subsidiary’s withdrawal liability and $ 2.0 million for its accumulated funding deficiency. We received an updated demand letter decreasing the accumulated funding deficiency demand from $ 2.0 million to $ 1.3 million in April 2020. In February 2020, we received a demand letter from PIUMPF asserting that we owe $ 51.2 million for our pro-rata share of PIUMPF’s accumulated funding deficiency, including interest. We dispute the PIUMPF accumulated funding deficiency demands. We began making monthly payments (approximately $ 0.7 million per month for 20 years) for these withdrawal liabilities in fiscal 2020, excluding the accumulated funding deficiency demands. In July 2021, PIUMPF filed suit against us in the U.S. District Court for the Northern District of Georgia claiming the right to recover our pro rata share of the pension fund’s accumulated funding deficiency, along with interest, liquidated damages and attorney’s fees. We believe we are adequately reserved for this matter. At September 30, 2022 and September 30, 2021 , we had withdrawal liabilities recorded of $ 214.7 million and $ 247.1 million, respectively including liabilities associated with PIUMPF’s accumulated funding deficiency demands. The decrease in withdrawal liabilities in fiscal 2022 as compared to the end of fiscal 2021 was primarily due to an increase in interest rates. With respect to certain other MEPPs, in the event we withdraw from one or more of the MEPPs in the future, it is reasonably possible that we may incur withdrawal liabilities in connection with such withdrawals. Our estimate of any such withdrawal liabilities, both individually and in the aggregate, are not material for the remaining plans in which we participate. Approximately 55 % of our hourly employees are covered by CBAs in the U.S. and Canada, of which approximately 32 % are covered by CBAs that expire within one year and another 27 % are covered by CBAs that have expired. Defined Contribution Plans We have 401(k) and other defined contribution plans that cover certain of our U.S., Canadian and other non-U.S. salaried union and nonunion hourly employees, generally subject to an initial waiting period. The 401(k) and other defined contribution plans permit participants to make contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue Code, or the taxing authority in the jurisdiction in which they operate. Due primarily to acquisitions, CBAs, and other non-U.S. defined contribution programs, we have plans with varied terms. At September 30, 2022 , our contributions may be up to 7.5 % for U.S. salaried and non-union hourly employees, consisting of a match of up to 5 % and an automatic employer contribution of 2.5 %. Certain other employees who receive accruals under a defined benefit pension plan, as well as certain employees covered by CBAs and non-U.S. defined contribution programs generally receive up to a 3.0 % to 4.0 % contribution to their 401(k) plan or defined contribution plan. During fiscal 2022, 2021 and 2020 , we recorded expense of $ 169.5 million, $ 164.7 million and $ 150.1 million, respectively, related to employer contributions to the 401(k) plans and other defined contribution plans, including the automatic employer contribution. In connection with the WestRock Pandemic Action Plan, we funded our matching contributions to the WestRock Company 401(k) Retirement Savings Plan in Common Stock effective July 1, 2020 and ending September 30, 2021 (final period funded in October 2021) . Supplemental Retirement Plans We have Supplemental Plans that are nonqualified deferred compensation plans. We intend to provide participants with an opportunity to supplement their retirement income through deferral of current compensation. Amounts deferred and payable under the Supplemental Plans are our unsecured obligations and rank equally with our other unsecured and unsubordinated indebtedness outstanding. Participants’ accounts are credited with investment gains and losses under the Supplemental Plans in accordance with the participant’s investment election or elections (or default election or elections) as in effect from time to time. At September 30, 2022 , the Supplemental Plans had assets totaling $ 140.9 million that are recorded at market value, and liabilities of $ 138.7 million. The investment alternatives available under the Supplemental Plans are generally similar to investment alternatives available under 401(k) plans. The amount of expense we recorded for the current fiscal year and the preceding two fiscal years was not significant. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6. Inco me Taxes The components of income (loss) before income taxes are as follows (in millions): Year Ended September 30, 2022 2021 2020 United States $ 860.4 $ 822.4 $ ( 440.7 ) Foreign 358.4 263.5 ( 81.9 ) Income (loss) before income taxes $ 1,218.8 $ 1,085.9 $ ( 522.6 ) Income tax expense consists of the following components (in millions): Year Ended September 30, 2022 2021 2020 Current income taxes: Federal $ 205.2 $ 171.2 $ 31.6 State 44.9 27.2 23.5 Foreign 116.1 78.4 66.8 Total current expense 366.2 276.8 121.9 Deferred income taxes: Federal ( 67.3 ) ( 39.0 ) 42.4 State ( 16.2 ) ( 10.2 ) 6.2 Foreign ( 13.1 ) 15.8 ( 7.0 ) Total deferred (benefit) expense ( 96.6 ) ( 33.4 ) 41.6 Total income tax expense $ 269.6 $ 243.4 $ 163.5 During fiscal 2022, 2021 and 2020 , cash paid for income taxes, net of refunds, was $ 335.2 million, $ 271.9 million and $ 147.2 million, respectively. The differences between the statutory federal income tax rate and our effective income tax rate are as follows: Year Ended September 30, 2022 2021 2020 (1) Statutory federal tax rate 21.0 % 21.0 % 21.0 % Foreign rate differential 2.1 0.9 ( 1.1 ) Adjustment and resolution of federal, state and foreign tax ( 0.4 ) 0.1 2.7 State taxes, net of federal benefit 1.6 2.0 ( 0.3 ) Excess tax benefit related to stock compensation 0.1 0.2 ( 0.5 ) Research and development and other tax credits, net of ( 1.2 ) ( 0.5 ) 3.7 (Loss) income attributable to noncontrolling interest ( 0.1 ) 0.1 0.1 Change in valuation allowance 0.7 2.8 ( 4.1 ) Goodwill impairment — — ( 51.2 ) Nontaxable increased cash surrender value — ( 1.1 ) 1.3 Withholding taxes 0.5 0.2 ( 0.7 ) Foreign derived intangible income ( 1.0 ) ( 1.2 ) 1.3 Deferred rate change ( 0.6 ) ( 1.0 ) ( 1.8 ) Brazilian net worth deduction ( 1.1 ) ( 0.7 ) 1.7 Other, net 0.5 ( 0.4 ) ( 3.4 ) Effective tax rate 22.1 % 22.4 % ( 31.3 )% (1) The negative tax rate for fiscal year 2020 is the result of applying total income tax expense to the loss before income taxes. The signs within the table are consequently the opposite compared to fiscal 2022 and 2021. The tax effects of temporary differences that give rise to deferred income tax assets and liabilities consist of the following (in millions): September 30, 2022 2021 Deferred income tax assets: Accruals and allowances $ — $ 6.7 Employee related accruals and allowances 107.6 119.0 State net operating loss carryforwards, net of federal benefit 43.6 57.5 State credit carryforwards, net of federal benefit 89.7 84.9 Federal and foreign net operating loss carryforwards 165.8 193.6 Restricted stock and options 26.7 30.2 Lease liabilities 177.4 177.1 Other 44.6 42.1 Total 655.4 711.1 Deferred income tax liabilities: Accruals and allowances 9.0 — Property, plant and equipment 1,669.5 1,805.2 Deductible intangibles and goodwill 724.1 796.6 Inventory reserves 261.4 243.5 Deferred gain 272.8 272.8 Basis difference in joint ventures 35.9 32.9 Pension 2.7 36.3 Right-of-use assets 166.1 164.9 Total 3,141.5 3,352.2 Valuation allowances 248.8 277.5 Net deferred income tax liability $ 2,734.9 $ 2,918.6 Deferred taxes are recorded as follows in the consolidated balance sheets (in millions): September 30, 2022 2021 Long-term deferred tax asset (1) $ 27.0 $ 25.8 Long-term deferred tax liability 2,761.9 2,944.4 Net deferred income tax liability $ 2,734.9 $ 2,918.6 (1) The long-term deferred tax asset is presented in Other assets on the consolidated balance sheets. At September 30, 2022 and 2021 , we had gross U.S. federal net operating losses of approximately $ 1.2 million and $ 2.7 million, respectively. These loss carryforwards expire in fiscal 2031 . At September 30, 2022 and 2021 , we had gross state and local net operating losses, of approximately $ 969 million and $ 1,190 million, respectively. These loss carryforwards generally expire between fiscal 2023 and 2041 . The tax effected values of these net operating losses are $ 43.6 million and $ 57.5 million at September 30, 2022 and 2021 , respectively, exclusive of valuation allowances of $ 17.7 million and $ 20.4 million at September 30, 2022 and 2021, respectively. At September 30, 2022 and 2021 , gross net operating losses for foreign reporting purposes of approximately $ 667.2 million and $ 779.1 million, respectively, were available for carryforward. A majority of these loss carryforwards generally expire between fiscal 2023 and 2041 , while a portion have an indefinite carryforward. The tax effected values of these net operating losses are $ 165.5 million and $ 193.0 million at September 30, 2022 and 2021 , respectively, exclusive of valuation allowances of $ 143.8 million and $ 177.6 million at September 30, 2022 and 2021, respectively. At September 30, 2022 and 2021 , we had state tax credit carryforwards of $ 89.7 million and $ 84.9 million, respectively. These state tax credit carryforwards generally expire within 5 to 10 years; however, certain state credits can be carried forward indefinitely. Valuation allowances of $ 81.1 million and $ 76.3 million at September 30, 2022 and 2021, respectively, have been provided on these assets. These valuation allowances have been recorded due to uncertainty regarding our ability to generate sufficient taxable income in the appropriate taxing jurisdiction. The following table represents a summary of the valuation allowances against deferred tax assets for fiscal 2022, 2021 and 2020 (in millions): 2022 2021 2020 Balance at beginning of fiscal year $ 277.5 $ 257.5 $ 218.0 Increases 12.3 22.2 46.2 Reductions ( 41.0 ) ( 2.2 ) ( 6.7 ) Balance at end of fiscal year $ 248.8 $ 277.5 $ 257.5 Consistent with prior years, we consider a portion of our earnings from certain foreign subsidiaries as subject to repatriation and we provide for taxes accordingly. However, we consider the unremitted earnings and all other outside basis differences from all other foreign subsidiaries to be indefinitely reinvested. Accordingly, we have not provided for any taxes that would be due. As of September 30, 2022 , we estimate our outside basis difference in foreign subsidiaries that are considered indefinitely reinvested to be approximately $ 1.2 billion. The components of the outside basis difference are comprised of acquisition accounting adjustments, undistributed earnings, and equity components. In the event of a distribution in the form of dividends or dispositions of the subsidiaries, we may be subject to incremental U.S. income taxes, subject to an adjustment for foreign tax credits, and withholding taxes or income taxes payable to the foreign jurisdictions. As of September 30, 2022, the determination of the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis differences is not practicable. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions): 2022 2021 2020 Balance at beginning of fiscal year $ 199.5 $ 206.7 $ 224.3 Additions for tax positions taken in current year (1) 1.8 2.7 5.0 Additions for tax positions taken in prior fiscal years 27.6 10.8 11.7 Reductions for tax positions taken in prior fiscal years (1) — — ( 16.7 ) Reductions due to settlement ( 0.8 ) — — (Reductions) additions for currency translation adjustments ( 1.1 ) 1.5 ( 8.8 ) Reductions as a result of a lapse of the applicable statute of ( 31.5 ) ( 22.2 ) ( 8.8 ) Balance at end of fiscal year $ 195.5 $ 199.5 $ 206.7 (1) R eductions taken in fiscal 2020 include primarily positions taken related to foreign subsidiaries. As of September 30, 2022 and 2021 , the total amount of unrecognized tax benefits was approximately $ 195.5 million and $ 199.5 million, respectively, exclusive of interest and penalties. Of these balances, as of September 30, 2022 and 2021 , if we were to prevail on all unrecognized tax benefits recorded, approximately $ 188.1 million and $ 188.7 million, respectively, would benefit the effective tax rate. We regularly evaluate, assess and adjust the related liabilities in light of changing facts and circumstances, which could cause the effective tax rate to fluctuate from period to period. Resolution of the uncertain tax positions could have a material adverse effect on our cash flows or materially benefit our results of operations in future periods depending upon their ultimate resolution. See “ Note 17. Commitments and Contingencie s — Brazil Tax Liability ”. As of September 30, 2022 and 2021 , we had liabilities of $ 85.0 million and $ 79.7 million, respectively, related to estimated interest and penalties for unrecognized tax benefits. Our results of operations for fiscal 2022, 2021 and 2020 include expense of $ 3.8 million, $ 4.4 million and $ 6.6 million, respectively, net of indirect benefits, related to estimated interest and penalties with respect to the liability for unrecognized tax benefits. As of September 30, 2022 , it is reasonably possible that our unrecognized tax benefits will decrease by up to $ 30.1 million in the next 12 months due to expiration of various statutes of limitations and settlement of issues. We file federal, state and local income tax returns in the U.S. and various foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal income tax examinations by tax authorities for years prior to fiscal 2018 and state and local income tax examinations by tax authorities for years prior to fiscal 2011. We are no longer subject to non-U.S. income tax examinations by tax authorities for years prior to fiscal 2009, except for Brazil for which we are not subject to tax examinations for years prior to 2006. While we believe our tax positions are appropriate, they are subject to audit or other modifications and there can be no assurance that any modifications will not materially and adversely affect our results of operations, financial condition or cash flows. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 7. Segmen t Information Effective October 1, 2021, we reorganized our reportable segments due to changes in our organizational structure and how our CODM makes key operating decisions, allocates resources and assesses the performance of our business. We believe the new segments provide greater visibility into the vertical integration between our mills and converting operations as well as the value of a diversified portfolio of assets, and helps us highlight the performance of our portfolio. Our reportable segments now are: • Corrugated Packaging, which consists of our integrated corrugated converting operations and generates its revenues primarily from the sale of corrugated containers and other corrugated products; • Consumer Packaging, which consists of our integrated consumer converting operations and generates its revenues primarily from the sale of consumer packaging products such as folding cartons and interior partitions; • Global Paper, which consists of our commercial paper operations and generates its revenues primarily from the sale of containerboard and paperboard to external customers; and • Distribution, which consists of our distribution and display assembly operations and generates its revenues primarily from the distribution of packaging products and assembly of display products. We determined our operating segments based on the products and services we offer. Our operating segments are consistent with our internal management structure, and we do not aggregate operating segments. We report the benefit of vertical integration with our mills in each reportable segment that ultimately sells the associated paper and packaging products to our external customers. We account for intersegment sales at prices that approximate market prices. Effective October 1, 2021, Adjusted EBITDA is our measure of segment profitability in accordance with ASC 280, “Segment Reporting” because it is used by our CODM to make decisions regarding allocation of resources and to assess segment performance. Certain items are not allocated to our operating segments and, thus, the information that our CODM uses to make operating decisions and assess performance does not reflect such amounts. These items can be found in the selected operating data table below after Adjusted EBITDA. Management believes excluding these items is useful in the evaluation of operating performance from period to period because they are not representative of our ongoing operations or are items our CODM does not consider part of our reportable segments. We have recast prior periods presented to conform with the new segment structure. These changes did not impact our consolidated financial statements. In connection with the reorganization of our reportable segments, we changed the amount of previously non-allocated expenses. Prior to the reorganization, the Company had two reportable segments: Corrugated Packaging and Consumer Packaging. Prior to the completion of our monetization program in fiscal 2020, we had a third reportable segment, Land and Development, which previously sold real estate, primarily in the Charleston, SC region. Some of our operations are located in locations such as Canada, Latin America, EMEA and Asia Pacific. The table below reflects financial data of our foreign operations for each of the past three fiscal years, some of which were transacted in U.S. dollars (in millions): Years Ended September 30, 2022 2021 2020 Net sales (unaffiliated customers): U.S. $ 17,361.5 $ 15,317.2 $ 14,508.9 Canada 1,325.1 1,210.4 1,124.7 Latin America 1,045.6 745.4 611.1 EMEA 1,150.5 1,106.0 1,014.0 Asia Pacific 373.8 367.1 320.1 Total $ 21,256.5 $ 18,746.1 $ 17,578.8 Years Ended September 30, 2022 2021 2020 Long-lived assets: U.S. $ 9,278.2 $ 9,654.6 $ 9,962.5 Canada 391.4 413.0 382.1 Latin America 719.0 725.8 639.9 EMEA 320.4 364.9 362.8 Asia Pacific 72.0 87.8 90.2 Total $ 10,781.0 $ 11,246.1 $ 11,437.5 The accounting policies of the reportable segments are the same as those described in “ Note 1. Description of Business and Summary of Significant Accounting Policies ”. We account for intersegment sales at prices that approximate market prices. For segment reporting purposes, we include our equity in income of unconsolidated entities in Adjusted EBITDA, as well the related investments in segment identifiable assets. These amounts are included in the segment tables that follow. The following tables show selected financial data for our segments (in millions): Years Ended September 30, 2022 2021 2020 Net sales (aggregate): Corrugated Packaging $ 9,307.6 $ 8,400.5 $ 7,790.2 Consumer Packaging 4,965.2 4,433.9 4,190.4 Global Paper 5,930.2 4,983.0 4,749.6 Distribution 1,418.9 1,254.8 1,102.4 Land and Development — — 18.9 Total $ 21,621.9 $ 19,072.2 $ 17,851.5 Less net sales (intersegment): Corrugated Packaging $ 328.0 $ 305.3 $ 250.0 Consumer Packaging 27.8 20.3 20.2 Distribution 9.6 0.5 2.5 Total $ 365.4 $ 326.1 $ 272.7 Net sales (unaffiliated customers): Corrugated Packaging $ 8,979.6 $ 8,095.2 $ 7,540.2 Consumer Packaging 4,937.4 4,413.6 4,170.2 Global Paper 5,930.2 4,983.0 4,749.6 Distribution 1,409.3 1,254.3 1,099.9 Land and Development — — 18.9 Total $ 21,256.5 $ 18,746.1 $ 17,578.8 Adjusted EBITDA: Corrugated Packaging $ 1,386.7 $ 1,394.0 $ 1,474.2 Consumer Packaging 829.2 720.8 660.7 Global Paper 1,246.4 883.7 701.9 Distribution 79.7 68.8 48.7 Total 3,542.0 3,067.3 2,885.5 Depreciation, depletion and amortization ( 1,488.6 ) ( 1,460.0 ) ( 1,487.0 ) Gain on sale of certain closed facilities 18.6 0.9 15.6 Multiemployer pension withdrawal (expense) income ( 0.2 ) 2.9 1.1 Mineral rights impairment ( 26.0 ) — — Restructuring and other costs ( 401.6 ) ( 31.5 ) ( 112.7 ) Goodwill impairment — — ( 1,333.2 ) Non-allocated expenses ( 82.6 ) ( 68.1 ) ( 73.3 ) Interest expense, net ( 318.8 ) ( 372.3 ) ( 393.5 ) Loss on extinguishment of debt ( 8.5 ) ( 9.7 ) ( 1.5 ) Other (expense) income, net ( 11.0 ) 10.9 9.5 Other adjustments ( 4.5 ) ( 54.5 ) ( 33.1 ) Income (loss) before income taxes $ 1,218.8 $ 1,085.9 $ ( 522.6 ) Years Ended September 30, 2022 2021 2020 Depreciation, depletion and amortization: Corrugated Packaging $ 683.0 $ 674.5 $ 674.8 Consumer Packaging 349.5 352.2 345.4 Global Paper 425.1 405.9 439.1 Distribution 27.3 23.6 23.5 Corporate 3.7 3.8 4.2 Total $ 1,488.6 $ 1,460.0 $ 1,487.0 Other adjustments: Corrugated Packaging $ ( 4.8 ) $ 13.3 $ 6.3 Consumer Packaging 7.7 11.7 16.3 Global Paper ( 0.6 ) 3.3 11.9 Distribution — 0.6 — Land and Development — — ( 1.4 ) Corporate 2.2 25.6 — Total $ 4.5 $ 54.5 $ 33.1 Equity in income (loss) of unconsolidated entities: Corrugated Packaging $ 70.3 $ 36.7 $ 12.6 Consumer Packaging 3.4 4.0 2.8 Global Paper ( 0.8 ) 0.2 0.4 Total $ 72.9 $ 40.9 $ 15.8 In fiscal 2020, we received the remaining $ 32.3 million of insurance proceeds related to the extensive damage sustained at our containerboard and pulp mill located in Panama City, FL in October 2018 due to Hurricane Michael. The insurance proceeds were recorded as a reduction of cost of goods sold - $ 20.0 million in o ur Corrugated Packaging segment and $ 12.3 million in our Global Paper segment. The insurance proceeds received consisted of $ 11.7 million of business interruption recoveries and $ 20.6 million for direct costs and property damage. Our consolidated statements of cash flow for fiscal 2020 included $ 30.9 million in net cash provided by operating activities and $ 1.4 million of cash proceeds included in net cash used for investing activities related to Hurricane Michael. In addition, we had other minor amounts for various claims that were recorded as a reduction of cost of goods sold across our segments. The following table shows selected financial data for our segments (in millions): Years Ended September 30, 2022 2021 2020 Assets: Corrugated Packaging $ 11,382.5 $ 11,557.6 $ 11,623.4 Consumer Packaging 6,704.5 6,757.3 6,535.8 Global Paper 7,039.2 7,527.6 7,549.5 Distribution 863.0 800.1 718.9 Assets held for sale 34.4 10.9 7.0 Corporate 2,381.9 2,600.8 2,345.1 Total $ 28,405.5 $ 29,254.3 $ 28,779.7 Intangibles, net: Corrugated Packaging $ 648.4 $ 765.9 $ 889.1 Consumer Packaging 1,523.5 1,719.2 1,857.6 Global Paper 612.6 677.7 744.6 Distribution 136.1 156.0 175.9 Total $ 2,920.6 $ 3,318.8 $ 3,667.2 Capital expenditures: Corrugated Packaging $ 370.4 $ 331.4 $ 389.9 Consumer Packaging 202.1 192.7 140.2 Global Paper 238.6 259.4 417.8 Distribution 6.1 1.3 0.3 Corporate 45.4 30.7 29.9 Total $ 862.6 $ 815.5 $ 978.1 Equity method investments: Corrugated Packaging $ 479.3 $ 434.4 $ 414.2 Consumer Packaging 0.5 17.7 13.7 Global Paper 0.5 0.8 1.3 Corporate 0.1 0.4 0.4 Total $ 480.4 $ 453.3 $ 429.6 The Corrugated Packaging segment’s equity method investments primarily relate to our Grupo Gondi investment. Equity method investments are included in the consolidated balance sheets in Other assets. The investment in Grupo Gondi exceeded our proportionate share of the underlying equity in net assets by approximately $ 101.8 mill ion and $ 105.7 m illion in fiscal 2022 and 2021, respectively. Approximately $ 35.2 mil lion and $ 40.2 million remains amortizable to expense in Equity in income of unconsolidated entities over the estimated life of the underlying assets ranging from 10 to 15 years beginning with our investment in fiscal 2016. The Gondi investment is denominated in Mexican Pesos. See “ Note 3. Acquisitions and Investments ” for our announcement to acquire the remaining interest in Grupo Gondi. Effective October 1, 2021, in connection with our segment reorganization and in accordance with ASC 350, we determined our new reporting units to be the same as our operating segments: Corrugated Packaging, Consumer Packaging, Global Paper and Distribution. We performed an interim quantitative goodwill impairment test for our new reporting units using procedures consistent with those described for our annual goodwill impairment testing. Each of our reporting units had a fair value that exceeded its carrying value by more than 10 %. If we had concluded that it was appropriate to increase the discount rate we used by 100 basis points, the fair value of each of our reporting units would have continued to exceed its carrying value. The changes in the carrying amount of goodwill for the fiscal years ended September 30, 2022, 2021 and 2020 are as follows (in millions): Legacy Reportable Segments New Reportable Segments Corrugated Consumer Corrugated Consumer Global Paper Distribution Total Balance as of Sep. 30, 2019 Goodwill $ 3,695.1 $ 3,633.3 $ — $ — $ — $ — $ 7,328.4 Accumulated impairment ( 0.1 ) ( 42.7 ) — — — — ( 42.8 ) 3,695.0 3,590.6 — — — — 7,285.6 Goodwill impairment — ( 1,333.2 ) — — — — ( 1,333.2 ) Goodwill disposed of — ( 0.3 ) — — — — ( 0.3 ) Purchase price allocation 14.3 ( 0.6 ) — — — — 13.7 Translation adjustments ( 35.8 ) 32.2 — — — — ( 3.6 ) Balance as of Sep. 30, 2020 Goodwill 3,673.6 3,664.6 — — — — 7,338.2 Accumulated impairment ( 0.1 ) ( 1,375.9 ) — — — — ( 1,376.0 ) 3,673.5 2,288.7 — — — — 5,962.2 Goodwill disposed of ( 16.4 ) — — — — — ( 16.4 ) Translation adjustments 6.2 7.2 — — — — 13.4 Balance as of Sep. 30, 2021 Goodwill 3,663.4 3,671.8 — — — — 7,335.2 Accumulated impairment ( 0.1 ) ( 1,375.9 ) — — — — ( 1,376.0 ) 3,663.3 2,295.9 — — — — 5,959.2 Segment recasting (1) ( 3,663.3 ) ( 2,295.9 ) 2,834.8 1,603.3 1,382.0 139.1 — Goodwill acquired — — 3.2 — — — 3.2 Translation adjustments — — ( 35.2 ) ( 14.9 ) ( 15.5 ) ( 1.6 ) ( 67.2 ) Balance as of Sep. 30, 2022 Goodwill $ — $ — $ 2,802.8 $ 1,588.4 $ 1,366.5 $ 137.5 $ 5,895.2 (1) Represents the reallocation of goodwill as a result of our October 1, 2021 segment change. During the fourth quarter of fiscal 2022 , we completed our annual goodwill impairment testing. Each of our reporting units had fair values that exceeded their respective carrying values by more than 15 %. See “ Note 1. Description of Business and Summary of Significant Accounting Policies — Goodwill and Long-Lived Assets ” for a discussion of our fiscal 2022 impairment test. In fiscal 2020, we recorded a $ 1,333.2 million pre-tax non-cash goodwill impairment in our legacy Consumer Packaging reportable segment. The impairment was primarily the result of expected lower volumes and cash flows related to certain external bleached paperboard end markets, including commercial print, tobacco and plate and cup stock markets. We had experienced significant declines in demand for those products that we believed were more systemic and our view of related growth and earnings opportunities had been diminished. |
Interest
Interest | 12 Months Ended |
Sep. 30, 2022 | |
Interest Income (Expense), Net [Abstract] | |
Interest | Note 8. Intere st The components of interest expense, net is as follows (in millions): Years Ended September 30, 2022 2021 2020 Interest expense $ ( 375.6 ) $ ( 418.9 ) $ ( 465.5 ) Interest income 56.8 46.6 72.0 Interest expense, net $ ( 318.8 ) $ ( 372.3 ) $ ( 393.5 ) Cash paid for interest, net of amounts capitalized, of $ 363.9 million, $ 384.7 million and $ 423.4 million were made during fiscal 2022, 2021 and 2020, respectively. During fiscal 2022, 2021 and 2020 , we capitalized interest of $ 11.1 million, $ 14.0 million and $ 24.6 million, respectively. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 9. I nventories Inventories are as follows (in millions): September 30, 2022 2021 Finished goods and work in process $ 1,102.4 $ 972.7 Raw materials 1,135.9 888.1 Supplies and spare parts 529.6 536.4 Inventories at FIFO cost 2,767.9 2,397.2 LIFO reserve ( 450.8 ) ( 223.9 ) Net inventories $ 2,317.1 $ 2,173.3 It is impracticable to segregate the LIFO reserve between raw materials, finished goods and work in process. In fiscal 2022, 2021 and 2020, we reduced inventory quantities in some of our LIFO pools. These reductions result in liquidations of LIFO inventory quantities generally carried at lower costs prevailing in prior years as compared with the cost of the purchases in the respective fiscal years, the effect of which typically decreases cost of goods sold. Alternatively, higher costs prevailing in prior years increases costs of goods sold. The impact of the liquidations in fiscal 2022, 2021 and 2020 was not significant. In fiscal 2022, we experienced higher inventory costs primarily due to inflation, the effect of which increased cost of goods sold and our LIFO reserve by $ 226.9 million. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 10. Property, Plant and Equipment Property, plant and equipment consists of the following (in millions): September 30, 2022 2021 Property, plant and equipment at cost: Land and buildings $ 2,646.4 $ 2,626.0 Machinery and equipment 16,592.5 15,853.1 Forestlands and mineral rights (1) 95.7 120.0 Transportation equipment 24.2 26.1 Leasehold improvements 103.4 93.9 19,462.2 18,719.1 Less: accumulated depreciation, depletion and amortization ( 9,380.8 ) ( 8,149.0 ) Property, plant and equipment, net $ 10,081.4 $ 10,570.1 (1) In fiscal 2022, we recorded a $ 26.0 million pre-tax non-cash impairment of certain mineral rights. With the impairment, we have no remaining mineral rights. Depreciation expense for fiscal 2022, 2021 and 2020 was $ 1,108.1 million, $ 1,069.7 million and $ 1,054.9 million, respectively. Accrued additions to property, plant and equipment at September 30, 2022, 2021 and 2020 were $ 223.2 million, $ 108.5 million and $ 85.0 million, respectively. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Sep. 30, 2022 | |
Other Intangible Assets [Abstract] | |
Other Intangible Assets | Note 11. Other Intangible Assets The gross carrying amount and accumulated amortization relating to intangible assets, excluding goodwill, are as follows and reflect the removal of fully amortized intangible assets in the period fully amortized (in millions, except weighted avg. life): September 30, 2022 2021 Weighted Gross Carrying Accumulated Gross Carrying Accumulated Customer relationships 15.6 $ 4,888.5 $ ( 2,038.1 ) $ 4,963.0 $ ( 1,724.3 ) Trademarks and tradenames 22.5 80.7 ( 26.2 ) 80.4 ( 20.9 ) Technology and patents 11.8 24.4 ( 12.9 ) 23.5 ( 9.4 ) License costs 15.8 0.3 ( 0.1 ) 16.2 ( 15.1 ) Non-compete agreements 2.0 1.9 ( 1.1 ) 1.9 ( 0.2 ) Other 29.5 3.5 ( 0.3 ) 4.0 ( 0.3 ) Total 15.7 $ 4,999.3 $ ( 2,078.7 ) $ 5,089.0 $ ( 1,770.2 ) Estimated intangible asset amortization expense for the succeeding five fiscal years is as follows (in millions): Fiscal 2023 $ 340.2 Fiscal 2024 $ 318.8 Fiscal 2025 $ 304.1 Fiscal 2026 $ 296.7 Fiscal 2027 $ 292.9 Intangible amortization expense was $ 351.1 million, $ 360.6 million and $ 405.4 million during fiscal 2022, 2021 and 2020 , respectively. We had other intangible amortization expense, primarily for packaging equipment leased to customers of $ 29.4 million, $ 29.7 million and $ 26.7 million during fiscal 2022, 2021 and 2020 , respectively. |
Fair Value
Fair Value | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 12. Fair Value Assets and Liabilities Measured or Disclosed at Fair Value We disclose the fair value of our long-term debt in “ Note 13. Debt ” and the fair value of our pension and postretirement assets and liabilities in “ Note 5. Retirement Plans ”. We have, or from time to time may have, financial instruments recognized at fair value including Supplemental Plans, interest rate derivatives, commodity derivatives or other similar classes of assets or liabilities, the fair value of which are not significant. See “ Note 1 — Description of Business and Summary of Significant Accounting Policies — Fair Value of Financial Instruments and Nonfinancial Assets and Liabilities ” for additional information. Fiscal 2021 reflects a charge of $ 22.5 million associated with not exercising an option to purchase an additional equity interest in Grupo Gondi that was recorded in Other (expense) income, net. Financial Instruments Not Recognized at Fair Value Financial instruments not recognized at fair value on a recurring or nonrecurring basis include cash and cash equivalents, accounts receivable, certain other current assets, short-term debt, accounts payable, certain other current liabilities and long-term debt. With the exception of long-term debt, the carrying amounts of these financial instruments approximate their fair values due to their short maturities. Fair Value of Nonfinancial Assets and Nonfinancial Liabilities As discussed in “ Note 1. Description of Business and Summary of Significant Accounting Policies ”, we measure certain nonfinancial assets and nonfinancial liabilities at fair value on a nonrecurring basis. See “ Note 7. Segment Information ” for a discussion of a $ 1,333.2 million pre-tax non-cash goodwill impairment of our legacy Consumer Packaging reportable segment recorded in fiscal 2020. See “ Note 4. Restructuring and Other Costs ” for impairments associated with restructuring activities labeled as "PP&E and related costs". In fiscal 2022, we recorded impairments associated with the closure of our Panama City, FL mill and the permanent closure of the corrugated medium manufacturing operations at the St. Paul, MN mill, and the impairment of a paper machine at our Evadale, TX mill in fiscal 2020. Fair value of the remaining Panama City, FL land, building and improvements was determined based on a third party appraisal. During fiscal 2022, 2021 and 2020, we did not have any significant non-goodwill or non-restructuring nonfinancial assets or nonfinancial liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition other than the $ 26.0 m illion pre-tax non-cash impairment of certain mineral rights in fiscal 2022 that was driven by a lack of new leasing or development activity on our properties for an extended period of time, including pipeline delays. With the impairment, we have no remaining mineral rights. Accounts Receivable Sales Agreements We are a party to an accounts receivable sales agreement to sell to a third-party financial institution all of the short-term receivables generated from certain customer trade accounts. On September 16, 2022, we amended the then-existing $ 700.0 million facility to extend the maturity to September 15, 2023 (the “ A/R Sales Agreement ”) and addressed the transition from LIBOR to the Secure Overnight Funding Rate (" SOFR "). The terms of the A/R Sales Agreement limit the balance of receivables sold to the amount available to fund such receivables sold, thereby eliminating the receivable for proceeds from the financial institution at any transfer date. Transfers under the A/R Sales Agreement meet the requirements to be accounted for as sales in accordance with guidance in ASC 860. We also have a similar facility that was amended on December 2, 2021 to increase the $ 88.5 million purchase limit to $ 110.0 million, establish the transition from LIBOR to SOFR at a future date and revise certain fees. The facility remains uncommitted and has a one-year term ending December 4, 2022. We expect to renew this facility prior to its maturity. The customers from these facilities are not included in the Receivables Securitization Facility that is discussed in “ Note 13. Debt ”. The following table represents a summary of these accounts receivable sales agreements for fiscal 2022 and 2021 (in millions): 2022 2021 Receivable from financial institutions at beginning of fiscal year $ — $ — Receivables sold to the financial institutions and derecognized ( 2,954.8 ) ( 2,732.2 ) Receivables collected by financial institutions 2,896.0 2,655.6 Cash proceeds from financial institutions 58.8 76.6 Receivable from financial institutions at September 30, $ — $ — Receivables sold under these accounts receivable sales agreements as of the respective balance sheet dates were approximately $ 724.7 million and $ 665.9 million as of September 30, 2022 and September 30, 2021, respectively. Cash proceeds related to the receivables sold are included in Net cash provided by operating activities in the consolidated statements of cash flow in the accounts receivable line item. While the expense recorded in connection with the sale of receivables may vary based on current rates and levels of receivables sold, the expense recorded in connection with the sale of receivables was $ 20.4 million, $ 11.1 million and $ 12.7 million in fiscal 2022, 2021 and 2020, respectively, and is recorded in Other (expense) income, net in the consolidated statements of operations. Although the sales are made without recourse, we maintain continuing involvement with the sold receivables as we provide collections services related to the transferred assets. The associated servicing liability is not material given the high credit quality of the customers underlying the receivables and the anticipated short collection period. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2022 | |
Debt [Abstract] | |
Debt | Note 1 3. Debt The public bonds issued by WRKCo, RKT and MWV are guaranteed by WestRock and have cross-guarantees between the three companies. The public bonds are unsecured, unsubordinated obligations that rank equally in right of payment with all of our existing and future unsecured, unsubordinated obligations. The bonds are effectively subordinated to any of our existing and future secured debt to the extent of the value of the assets securing such debt and to the obligations of our non-debtor/guarantor subsidiaries. The industrial development bonds associated with the finance lease obligations of MWV are guaranteed by the Company and certain of its subsidiaries. At September 30, 2022, all of our debt was unsecured with the exception of our Receivables Securitization Facility (as defined below) and finance lease obligations. As noted below, we have been addressing the LIBOR transition in our applicable debt facilities and have completed the transition on all of our significant facilities. We expect to complete the last facility prior to the June 30, 2023 deadline when the remaining rates cease publication. See below for additional information regarding changes to certain facilities. The following were individual components of debt (in millions, except percentages): September 30, 2022 September 30, 2021 Carrying Weighted Avg Carrying Weighted Avg Public bonds due fiscal 2023 to 2028 $ 3,433.4 4.0 % $ 3,778.2 4.0 % Public bonds due fiscal 2029 to 2033 2,753.3 4.5 % 2,766.5 4.5 % Public bonds due fiscal 2037 to 2047 177.8 6.2 % 178.2 6.2 % Revolving credit and swing facilities 286.3 1.9 % 270.0 1.1 % Term loan facilities 598.2 3.1 % 598.9 3.0 % International and other debt 127.6 12.8 % 225.1 4.8 % Finance lease obligations 287.5 4.2 % 264.1 4.1 % Vendor financing and commercial card 123.1 N/A 113.1 N/A Total debt 7,787.2 4.2 % 8,194.1 4.0 % Less: current portion of debt 212.2 168.8 Long-term debt due after one year $ 7,575.0 $ 8,025.3 On March 22, 2022, we redeemed $ 350 million aggregate principal amount of our 4.00 % senior notes due March 2023 primarily using borrowings under our Receivables Securitization Facility (as hereinafter defined) and recorded an $ 8.2 million loss on extinguishment of debt. On Sept ember 10, 2021, we redeemed $ 400 million aggregate principal amount of our 4.900 % senior notes due March 2022 using cash and cash equivalents and recorded a $ 8.6 million loss on extinguishment of debt. A portion of the debt classified as long-term may be paid down earlier than scheduled at our discretion without penalty. Our credit facilities contain certain restrictive covenants, including a covenant to satisfy a debt to capitalization ratio. We test and report our compliance with all of these covenants as required by these facilities and were in compliance with them at September 30, 2022. The carrying value of our debt includes the fair value step-up of debt acquired in mergers and acquisitions, and the weighted average interest rate includes the fair value step up. At September 30, 2022 , excluding the step-up, the weighted average interest rate on total debt was 4.5 %. At September 30, 2022 , the unamortized fair market value step-up was $ 175.1 million, which will be amortized over a weighted average remaining life of 9.8 years. At September 30, 2022 , we had $ 57.1 million of outstanding letters of credit not drawn upon. At September 30, 2022, we had approximately $ 3.7 billion of availability under long-term committed credit facilities and cash and cash equivalents, excluding the $ 1.0 billion Delayed Draw Term Loan that we plan to use to acquire the remaining 67.7 % interest in Grupo Gondi. This liquidity may be used to provide for ongoing working capital needs and for other general corporate purposes including acquisitions, dividends and stock repurchases. The estimated fair value of our debt was approximately $ 7.3 billion and $ 9.0 billion as of September 30, 2022 and September 30, 2021, respectively. The fair value of our long-term debt is categorized as level 2 within the fair value hierarchy and is primarily either based on quoted prices for those or similar instruments, or approximate their carrying amount, as the variable interest rates reprice frequently at observable current market rates. During fiscal 2022, 2021 and 2020 , amortization of debt issuance costs charged to interest expense were $ 7.3 million, $ 8.3 million and $ 8.2 million, respectively. Public Bonds / Notes Issued At September 30, 2022 and September 30, 2021 , the face value of our public bond obligations outstanding were $ 6.2 billion and $ 6.6 billion, respectively. In June 2020, WRKCo issued $ 600.0 million aggregate principal amount of its 3.00 % Senior Notes due 2033 (the “ June 2033 Notes ”) in a registered offering pursuant to the Company’s automatic shelf registration statement on Form S-3 under the Securities Act of 1933, as amended, (the “ Securities Act ”). The June 2033 Notes are the unsecured unsubordinated obligations of WRKCo, ranking equally with all of WRKCo’s other existing and future unsecured, unsubordinated obligations. The June 2033 Notes will be effectively subordinated to any of WRKCo’s existing and future secured obligations to the extent of the value of the assets securing such obligations and to the obligations of the non-debtor/guarantor subsidiaries of WRKCo. T he Guarantor Subsidiaries guaranteed WRKCo’s obligations under the June 2033 Notes. We may redeem the June 2033 Notes, in whole or in part, at any time at specified redemption prices, plus accrued and unpaid interest, if any. The proceeds from the issuance of the June 2033 Notes were primarily used to repay the $ 100.0 million principal amount of MWV’s 9.75 % notes due June 2020 and reduce outstanding indebtedness under our then existing receivables securitization facility and revolving credit facility. Revolving Credit Facilities Revolving Credit Facility On July 7, 2022, we terminated our then-existing $ 2.3 billion unsecured revolving credit facility entered into on July 1, 2015 and as subsequently amended as well as the commitments thereunder (the “ Prior Revolving Credit Facility ”). At September 30, 2021, there were no amounts outstanding under the Prior Revolving Credit Facility. On the same date, we entered into a credit agreement (the " Revolving Credit Agreement ") that included a five-year senior unsecured revolving credit facility in an aggregate amount of $ 2.3 billion, consisting of a $ 1.8 billion U.S. revolving facility and a $ 500 million multicurrency revolving facility (collectively, the “ Revolving Credit Facility ”) with Wells Fargo Bank, National Association, as administrative agent and multicurrency agent. The Revolving Credit Facility is guaranteed by WestRock Company and certain of its subsidiaries as set forth in the credit agreement. At September 30, 2022, there w ere no amounts o utstanding under the facility. Loans under the Revolving Credit Facility may be drawn in U.S. dollars, Canadian dollars, Euro and Pounds Sterling. At our option, l oans under the Revolving Credit Facility will bear interest at (a) in the case of loans denominated in U.S. dollars, either Term SOFR or an alternate base rate, (b) in the case of loans denominated in Canadian dollars, one of CDOR, the U.S. Base Rate or the Canadian Prime Rate, (c) in the case of loans denominated in Euro, EURIBOR and (d) in the case of loans denominated in Pounds Sterling, SONIA, in each case plus an applicable interest rate margin that will fluctuate between 0.875 % per annum and 1.500 % per annum (for Term SOFR loans, CDOR loans, EURIBOR loans and SONIA loans) or between 0.000 % per annum and 0.500 % per annum (for alternate base rate loans, U.S. Base Rate loans and Canadian Prime Rate loans), based upon the Company’s corporate credit ratings or the Leverage Ratio (as each of these terms is defined in the Revolving Credit Agreement) whichever yields a lower applicable interest rate margin at such time. Term SOFR loans will be subject to a credit spread adjustment equal to 0.100 % per annum. In addition, unused revolving commitments under the Revolving Credit Facility will accrue a commitment fee that will fluctuate between 0.080 % per annum and 0.225 % per annum, based upon the Company’s corporate credit ratings or the Leverage Ratio (whichever yields a lower applicable commitment fee rate) at such time. European Revolving Credit Facilities On July 7, 2022, we terminated our then-existing three-year unsecured € 600.0 million European revolving credit facility with Coöperatieve Rabobank U.A., New York Branch, as administrative agent, entered into on February 26, 2021 and as subsequently amended as well as the commitments thereunder. At September 30, 2021 , we had borrowed $ 270.0 million under the then-existing facility. On the same date, we entered into a credit agreement (the " European Revolving Credit Agreement ") with Coöperatieve Rabobank U.A., New York Branch, as administrative agent. The European Revolving Credit Agreement provides for a three-year senior unsecured revolving credit facility in an aggregate amount of € 700.0 million and includes an incremental € 100.0 million accordion feature (the “ European Revolving Credit Facility ”). The European Revolving Credit Facility is guaranteed by WestRock Company and certain of its subsidiaries as set forth in the credit agreement. At September 30, 2022, we had borrowed $ 265.0 million under the facility. Loans under the European Revolving Credit Facility may be drawn in U.S. dollars, Euro and Pounds Sterling. At our option, loans under the European Revolving Credit Facility will bear interest at (a) in the case of loans denominated in U.S. dollars, either Term SOFR or an alternate base rate, (b) in the case of loans denominated in Euro, EURIBOR and (c) in the case of loans denominated in Pounds Sterling, SONIA, in each case plus an applicable interest rate margin that will fluctuate between 0.875 % per annum and 1.625 % per annum (for Term SOFR loans, EURIBOR loans and SONIA loans) or between 0.000 % per annum and 0.625 % per annum (for alternate base rate loans), based upon the Company’s corporate credit ratings at such time. Term SOFR loans will be subject to a credit spread adjustment equal to 0.100 % per annum. In addition, unused revolving commitments under the European Revolving Credit Facility will accrue a commitment fee that will fluctuate between 0.100 % per annum and 0.275 % per annum, based upon the Company’s corporate credit ratings at such time. Loans under the European Revolving Credit Facility may be prepaid at any time without premium. Term Loan Facilities Farm Loan Credit Facilities On September 27, 2019, we entered into a credit agreement (and as subsequently amended) with CoBank ACB, as administrative agent, that replaced our then-existing facility. The facility provided for a seven-year senior unsec ured term loan in an aggregate principal amount of $ 600 million (the “ Prior Farm Loan Credit Facility ”). The carrying value of this facility at September 30, 2021 was $ 598.9 million. On July 7, 2022, we entered into an amended and restated credit agreement that amends and restates the Prior Farm Loan Credit Agreement (the “ Farm Credit Facility Agreement ”) with CoBank, ACB, as administrative agent. The Farm Credit Facility Agreement provides for a seven-year senior unsecured term loan facility in an aggregate principal amount of $ 600 million (the “ Farm Credit Facility ”). At any time, we have the ability to request an increase in the principal amount by up to $ 400 million by written notice. The Farm Credit Facility is guaranteed by WestRock Company and certain of its subsidiaries as set forth in the credit agreement. The carrying value of this facility at September 30, 2022 was $ 598.2 million. At our option, loans issued under the Farm Credit Facility will bear interest at either Term SOFR or an alternate bas e rate, in each case plus an applicable interest rate margin that will fluctuate between 1.650 % per annum and 2.275 % per annum (for Term SOFR loans) or between 0.650 % per annum and 1.275 % per annum (for alternate base rate loans), based upon the Company’s corporate credit ratings or the Leverage Ratio (as each of these terms is defined in the Farm Credit Facility Agreement) whichever yields a lower applicable interest rate margin at such time. In addition, Term SOFR loans will be subject to a credit spread adjustment equal to 0.100 % per annum. Delayed Draw Term Facility On August 18, 2022, we amended the Revolving Credit Agreement (the " Amended Credit Agreement ") to add an unsecured delayed draw term loan facility with an aggregate principal amount of up to $ 1.0 billion (the " Delayed Draw Term Facility ") that may be drawn in a single draw through May 31, 2023. Proceeds drawn under the Delayed Draw Term Facility are planned to be used to acquire the remaining 67.7 % interest in Grupo Gondi . The Delayed Draw Term Facility is guaranteed by WestRock Company and certain of its subsidiaries as set forth in the Amended Credit Agreement. At September 30, 2022, there were no amounts out standing under the facility. At our option, a loan under the Delayed Draw Term Facility will bear interest at either Term SOFR or an alternate base rate, in each case plus an applicable interest rate margin that will fluctuate between 0.875 % per annum and 1.500 % per annum for a Term SOFR loan or between 0.000 % per annum and 0.500 % per annum for an alternate base rate loan based upon the Company’s corporate credit ratings or the Leverage Ratio (as defined in the Amended Credit Agreement), whichever yields a lower applicable interest rate margin, at such time. A Term SOFR loan will be subject to a credit spread adjustment equal to 0.100 % per annum. Any loan under the Delayed Draw Term Facility may be prepaid at any time without premium, and it may not be reborrowed. Other Term Loans At September 30, 2020, there was $ 648.9 million outstanding on the five-year unsecured term loan we entered into with Wells Fargo, as administrative agent, on March 7, 2018. During the first quarter of fiscal 2021, we paid off the term loan primarily using cash on hand. On June 7, 2019, we entered into a $ 300.0 million credit agreement providing for a five-year unsecured term loan with Bank of America, N.A., as administrative agent. The facility was scheduled to mature on June 7, 2024 . In fiscal 2021, we repaid the $ 300.0 million outstanding at September 30, 2020 using cash and cash equivalents which resulted in the facility being terminated. Receivables Securitization Facility On March 12, 2021, we amended our existing $ 700.0 million receivables securitization agreement (the “ Receivables Securitization Facility ”), extended the maturity to March 11, 2024 and established the transition to SOFR at a future date from a blend of the market rate for asset-backed commercial paper and the one-month LIBOR rate plus a credit spread, and revised certain fees. The current borrowing rate consists of a blend of the market rate for asset-backed commercial paper and the one-month LIBOR rate plus a credit spread of 0.90 %. The commitment fee w as 0.35 % and 0.35 % as of September 30, 2022 and September 30, 2021, respectively. At September 30, 2022 and September 30, 2021 , maximum available borrowings, excluding amounts outstanding under the Receivables Securitization Facility, were $ 700.0 mil lion and $ 690.3 million, respectively. The carrying amount of accounts receivable collateralizing the maximum available borrowings at September 30, 2022 and September 30, 2021 were approximatel y $ 1,390.5 million and $ 1,318.4 million, respectively. We have continuing involvement with the underlying receivables as we provide credit and collections services pursuant to the Receivables Securitization Facility. At September 30, 2022 and September 30, 2021 there were no amounts outstanding under this facility. Borrowing availability under this facility is based on the eligible underlying accounts receivable and compliance with certain covenants. The agreement governing the Receivables Securitization Facility contains restrictions, including, among others, on the creation of certain liens on the underlying collateral. We test and report our compliance with these covenants monthly; we were in compliance with all of these covenants at September 30, 2022 . The Receivables Securitization Facility includes certain restrictions on what constitutes eligible receivables under the facility and allows for the exclusion of eligible receivables of specific obligors each calendar year subject to the following restrictions: (i) the aggregate of excluded receivables may not exceed 7.5 % of eligible receivables under the Receivables Securitization Facility and (ii) the excluded receivables of each obligor may not exceed 2.5 % of the aggregate outstanding balance. Commercial Paper Program On December 7, 2018, we established an unsecured commercial paper program with WRKCo as the issuer. Under the program, we may issue short-term unsecured commercial paper notes in an aggregate principal amount at any time not to exceed $ 1.0 billion with up to 397-day maturities. The program has no expiration date and can be terminated by either the agent or us with not less than 30 days’ notice. Our Revolving Credit Facility is (and, prior to July 7, 2022, the Prior Revolving Credit Facility was) intended to backstop the commercial paper program. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. At September 30, 2022 and 2021, there was no am ount outstanding. International and Other Debt Brazil Export Credit Note On January 18, 2021, we entered into a credit agreement to provide for R$ 500.0 million of a senior unsecured term loan of WestRock Celulose, Papel E Embalagens Ltda. (a subsidiary of the Company), as borrower, and the Company, as guarantor. The outstanding amount of the principal will be repaid in equal, semiannual installments beginning on January 19, 2023 until the facility matures on January 19, 2026 . The proceeds borrowed are to be used to support the production of goods or acquisition of inputs that are essential or ancillary to export activities. Loans issued under the facility will bear interest at a floating rate based on Brazil’s Certificate of Interbank Deposit rate plus a spread of 2.50 %. At September 30, 2022 and 2021, there w as R$ 500.0 million ($ 92.7 million) outstanding and R$ 500.0 million ($ 92.3 million) outstanding, respectively. Brazil Delayed Draw Credit Facilities On April 10, 2019, we entered into a credit agreement to provide for R$ 750.0 million of senior unsecured term loans with an incremental R$ 250.0 million accordion feature to be repaid in equal, semiannual installments beginning on April 10, 2021 until maturity on April 10, 2024 (the “ Brazil Delayed Draw Credit Facilities ”). The proceeds of the Brazil Delayed Draw Credit Facilities were used to support the production of goods or acquisition of inputs essential or ancillary to export activities. On September 16, 2022, we repaid the facility in full, which resulted in the facility being terminated. The Brazil Delayed Draw Credit Facilities were senior unsecured obligations of Rigesa Celulose, Papel E Embalagens Ltda. (a subsidiary of the Company), as borrower, and the Company, as guarantor. Loans issued under the Brazil Delayed Draw Credit Facilities bore interest at a floating rate based on Brazil’s Certificate of Interbank Deposit rate plus a spread of 1.50 %. At September 30, 2021, the carrying value of the facility was R$ 639.2 million ($ 118.0 million). Aggregate Maturities of Debt As of September 30, 2022 , the aggregate maturities of debt, excluding finance lease obligations, for the succeeding five fiscal years and thereafter are as follows (in millions): Fiscal 2023 $ 178.6 Fiscal 2024 529.0 Fiscal 2025 893.8 Fiscal 2026 765.1 Fiscal 2027 501.1 Thereafter 4,498.5 Fair value of debt step-up, deferred financing costs and unamortized 133.6 Total $ 7,499.7 See “ Note 14. Leases ” of the Notes to Consolidated Financial Statements for the aggregate maturities of finance lease obligations for the succeeding five fiscal years and thereafter. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 14 . Leases Components of Lease Costs The following table presents certain information related to the lease costs for finance and operating leases (in millions): Years Ended September 30, 2022 2021 2020 Operating lease costs $ 218.1 $ 211.0 $ 201.2 Variable and short-term lease costs 122.8 104.6 105.5 Sublease income ( 6.1 ) ( 8.9 ) ( 6.7 ) Finance lease cost: Amortization of lease assets 15.1 9.6 10.5 Interest on lease liabilities 7.9 7.2 7.9 Total lease cost, net $ 357.8 $ 323.5 $ 318.4 Supplemental Balance Sheet Information Related to Leases The table below presents the lease-related assets and liabilities recorded on the balance sheet (in millions): September 30, Consolidated Balance Sheet Caption 2022 2021 Operating leases: Operating lease right-of-use asset Other assets $ 699.6 $ 676.0 Current operating lease liabilities Other current liabilities $ 191.9 $ 177.9 Noncurrent operating lease liabilities Other long-term liabilities 551.1 537.9 Total operating lease liabilities $ 743.0 $ 715.8 Finance leases: Property, plant and equipment $ 177.4 $ 143.2 Accumulated depreciation ( 37.3 ) ( 28.3 ) Property, plant and equipment, net $ 140.1 $ 114.9 Current finance lease liabilities Current portion of debt $ 14.5 $ 8.7 Noncurrent finance lease liabilities Long-term debt due after one year 273.0 255.4 Total finance lease liabilities $ 287.5 $ 264.1 Our finance lease portfolio includes certain assets that are either fully depreciated or transferred for which the lease arrangement requires a one-time principal repayment on the maturity date of the lease obligation. Lease Term and Discount Rate September 30, 2022 2021 Weighted average remaining lease term: Operating leases 5.0 years 5.4 years Finance leases 7.3 years 8.3 years Weighted average discount rate: Operating leases 2.7 % 2.4 % Finance leases 4.2 % 4.1 % Supplemental Cash Flow Information Related to Leases The table below presents supplemental cash flow information related to leases (in millions): Years Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 214.8 $ 227.0 Operating cash flows related to finance leases $ 8.8 $ 8.3 Financing cash flows related to finance leases $ 14.8 $ 9.1 ROU assets obtained in exchange for lease liabilities: Operating leases $ 184.6 $ 160.9 Maturity of Lease Liabilities The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet (in millions): September 30, 2022 Operating Leases Finance Leases Total Fiscal 2023 $ 208.9 $ 21.7 $ 230.6 Fiscal 2024 174.8 20.9 195.7 Fiscal 2025 134.3 19.7 154.0 Fiscal 2026 101.2 16.8 118.0 Fiscal 2027 72.4 95.8 168.2 Thereafter 109.3 186.3 295.6 Total lease payments 800.9 361.2 1,162.1 Less: Interest (1) ( 57.9 ) ( 73.7 ) ( 131.6 ) Present value of future lease payments $ 743.0 $ 287.5 $ 1,030.5 (1) Calculated using the interest rate for each lease. |
Special Purpose Entities
Special Purpose Entities | 12 Months Ended |
Sep. 30, 2022 | |
Special Purpose Entities [Abstract] | |
Special Purpose Entities | Note 15. Special Purpose Entities Pursuant to a sale of certain large-tract forestlands in 2007, a special purpose entity MWV Timber Notes Holding, LLC (“ MWV TN ”) received, and WestRock assumed upon the strategic combination of Rock-Tenn Company and MeadWestvaco Corporation’s respective businesses (the “ Combination ”), an installment note receivable in the amount of $ 398.0 million (“ Timber Note ”). The Timber Note does not require any principal payments until its maturity in October 2027 and bears interest at a rate approximating LIBOR. In addition, the Timber Note is supported by a bank-issued irrevocable letter of credit obtained by the buyer of the forestlands. The Timber Note is not subject to prepayment in whole or in part prior to maturity. The bank’s credit rating as of October 2022 was investment grade. We expect to complete the LIBOR transition for this installment note by the June 30, 2023 deadline when the rates cease publication. Using the Timber Note as collateral, MWV TN received $ 338.3 million in proceeds under a secured financing agreement with a bank. Under the terms of the agreement, the liability from this transaction is non-recourse to the Company and is payable from the Timber Note proceeds upon its maturity in October 2027. As a result, the Timber Note is not available to satisfy any obligations of WestRock. MWV TN can elect to prepay at any time the liability in whole or in part, however, given that the Timber Note is not prepayable, MWV TN expects to only repay the liability at maturity from the Timber Note proceeds. The Timber Note and the secured financing liability were fair valued on the opening balance sheet in connection with the Combination. As of September 30, 2022 , the Timber Note was $ 379.4 million and is included within Restricted assets held by special purpose entities on the consolidated balance sheets and the secured financing liability was $ 329.5 million and is included within Non-recourse liabilities held by special purpose entities on the consolidated balance sheets. Pursuant to the sale of MWV’s remaining U.S. forestlands, which occurred on December 6, 2013, another special purpose entity MWV Timber Notes Holding Company II, LLC (“ MWV TN II ”) received, and WestRock assumed upon the Combination, an installment note receivable in the amount of $ 860.0 million (the “ Installment Note ”). The Installment Note does not require any principal payments until its maturity in December 2023 and bears interest at a fixed rate of 5.207 %. However, at any time during a 180-day period following receipt by the borrower of notice from us that we intend to withhold our consent to any amendment or waiver of this Installment Note that was requested by the borrower and approved by any eligible assignees, the borrower may prepay the Installment Note in whole but not in part for cash at 100% of the principal, plus accrued but unpaid interest, breakage, or other similar amount if any. As of September 30, 2022, no event had occurred that would allow for the prepayment of the Installment Note. We monitor the credit quality of the borrower and receive quarterly compliance certificates. The borrower’s credit rating as of October 2022 was investment grade. Using the Installment Note as collateral, MWV TN II received $ 774.0 million in proceeds under a secured financing agreement with a bank. Under the terms of the agreement, the liability from this transaction is non-recourse to WestRock and is payable from the Installment Note proceeds upon its maturity in December 2023. As a result, the Installment Note is not available to satisfy any obligations of WestRock. MWV TN II can elect to prepay, at any time, the liability in whole or in part, with sufficient notice, but would avail itself of this provision only in the event the Installment Note was prepaid in whole or in part. The secured financing agreement however requires a mandatory repayment, up to the amount of cash received, if the Installment Note is prepaid in whole or in part. The Installment Note and the secured financing liability were fair valued on the opening balance sheet in connection with the Combination. As of September 30, 2022 , the Installment Note was $ 873.6 million and is included within Restricted assets held by special purpose entities on the consolidated balance sheets and the secured financing liability was $ 788.3 million and is included within Non-recourse liabilities held by special purpose entities on the consolidated balance sheets. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16. Related Party Transactions We sell products to affiliated companies. Net sales to the affiliated companies for the fiscal years ended September 30, 2022, 2021 and 2020 were approximately $ 238.5 million, $ 237.7 million and $ 311.5 million, respectively. Accounts receivable due from the affiliated companies at September 30, 2022 and 2021 was $ 27.2 million and $ 33.5 million, respectively, and was included in Accounts receivable on our consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | Note 17. Commitmen ts and Contingencies Capital Additions Estimated costs for future purchases of fixed assets that we are obligated to purchase as of September 30, 2022 total approximately $ 371 million. Environmental Environmental compliance requirements are a significant factor affecting our business. Our manufacturing processes involve discharges to water, air emissions, water intake and waste handling and disposal activities. These processes are subject to numerous federal, state, local and international environmental laws and regulations, as well as the requirements of environmental permits and similar authorizations issued by various governmental authorities. Complex and lengthy processes may be required to obtain and renew approvals, permits, and licenses for new, existing or modified facilities. Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency response procedures. Our integrated chemical pulping mills in the U.S. and Brazil are subject to numerous and more complex environmental programs and regulations, but all of WestRock’s manufacturing facilities have environmental compliance obligations. We have incurred, and expect that we will continue to incur, significant capital, operating and other expenditures complying with applicable environmental laws and regulations including, for example, projects to replace and/or upgrade our air pollution control devices, wastewater treatment systems, and other environmental infrastructure. Changes in these laws, as well as litigation relating to these laws, could result in more stringent or additional environmental compliance obligations for the Company that may require additional capital investments or increase our operating costs. We are involved in various administrative and other proceedings relating to environmental matters that arise in the normal course of business, and we may become involved in similar matters in the future. Although the ultimate outcome of these proceedings cannot be predicted and we cannot at this time estimate any reasonably possible losses based on available information, we do not believe that the currently expected outcome of any environmental proceedings and claims that are pending or threatened against us will have a material adverse effect on our results of operations, financial condition or cash flows. We face potential liability under federal, state, local and international laws as a result of releases, or threatened releases, of hazardous substances into the environment from various sites owned and operated by third parties at which Company-generated wastes have allegedly been deposited. Generators of hazardous substances sent to off-site disposal locations at which environmental contamination exists, as well as the owners of those sites and certain other classes of persons, are liable for response costs for the investigation and remediation of such sites under Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (“ CERCLA ”) and analogous laws. While joint and several liability is authorized under CERCLA, liability is typically shared with other potentially responsible parties (“ PRPs ”) and costs are commonly allocated according to relative amounts of waste deposited and other factors. In addition, certain of our current or former locations are being investigated or remediated under various environmental laws, including CERCLA. Based on information known to us and assumptions, we do not believe that the costs of these investigation and remediation projects will have a material adverse effect on our results of operations, financial condition or cash flows. However, the discovery of contamination or the imposition of additional obligations, including natural resources damages at these or other sites in the future, could impact our results of operations, financial condition or cash flows. We believe that we can assert claims for indemnification pursuant to existing rights we have under certain purchase and other agreements in connection with certain remediation sites. In addition, we believe that we have insurance coverage, subject to applicable deductibles or retentions, policy limits and other conditions, for certain environmental matters. However, there can be no assurance that we will be successful with respect to any claim regarding these insurance or indemnification rights or that, if we are successful, any amounts paid pursuant to the insurance or indemnification rights will be sufficient to cover all our costs and expenses. We also cannot predict whether we will be required to perform remediation projects at other locations, and it is possible that our remediation requirements and costs could increase materially in the future and exceed current reserves. In addition, we cannot currently determine the impact that future changes in cleanup standards or federal, state or other environmental laws, regulations or enforcement practices will have on our results of operations, financial condition or cash flows. As of September 30, 2022 , we had $ 7.4 million reserved for environmental liabilities on an undiscounted basis, of which $ 1.5 million is included in Other long-term liabilities and $ 5.9 million is included in Other current liabilities on the consolidated balance sheets, including amounts accrued in connection with environmental obligations relating to manufacturing facilities that we have closed. We believe the liability for these matters was adequately reserved at September 30, 2022. Climate Change Climate change presents risks and uncertainties for us. With respect to physical risks, our physical assets and infrastructure, including our manufacturing operations, have been, and may be in future periods impacted by weather-related events such as hurricanes and floods, potentially resulting in items such as physical damage to our facilities and lost production. Unpredictable weather patterns also may result in supply chain disruptions and increased material costs, such as through impacts to virgin fiber supplies and prices, which may fluctuate during prolonged periods of heavy rain or drought or during tree disease or insect epidemics that may be caused by variations in climate conditions. On the other hand, changes in climate also could result in more accommodating weather patterns for greater periods of time in certain areas, which may create favorable fiber market conditions. We incorporate a review of meteorological forecast data into our fiber procurement decisions and strategies. To the extent that severe weather-related risks materialize, and we are unprepared for them, we may incur unexpected costs, which could have a material effect on our results of operations, cash flows and financial condition, and the trading price of our Common Stock may be adversely impacted. Responses to climate change may result in regulatory risks as new laws and regulations aimed at reducing GHG emissions come into effect. These rules and regulations could take the form of cap-and-trade, carbon taxes, or GHG reductions mandates for utilities that could increase the cost of purchased electricity. New climate rules and regulations also may result in higher fossil fuel prices or fuel efficiency standards that could increase transportation costs. Certain jurisdictions in which we have manufacturing facilities or other investments have already taken actions to address climate change. In addition to these national efforts, some U.S. states in which we have manufacturing operations, including Washington, New York and Virginia, are taking measures to reduce GHG emissions, such as requiring GHG emissions reporting or developing regional cap-and-trade programs. Several of our international facilities are located in countries that have already adopted GHG emissions trading programs. Other countries in which we conduct business, including China, European Union member states and India, have set GHG reduction targets in accordance with the agreement among over 170 countries that established the Paris Agreement, which became effective in November 2016 and which the United States formally rejoined in February 2021. We have systems in place for tracking the GHG emissions from our energy-intensive facilities, and we monitor developments in climate related laws, regulations and policies to assess the potential impact of such developments on our results of operations, financial condition, cash flows and disclosure obligations. Compliance with climate programs may require future expenditures to meet GHG emission reduction obligations in future years. These obligations may include carbon taxes, the requirement to purchase GHG credits, or the need to acquire carbon offsets. Also, we may be required to make capital and other investments to displace traditional fossil fuels, such as fuel oil and coal, with lower carbon alternatives, such as biomass and natural gas. Brazil Tax Liability We are challenging claims by the Brazil Federal Revenue Department that we underpaid tax, penalties and interest associated with a claim that a subsidiary of MeadWestvaco Corporation (the predecessor of WestRock MWV, LLC) had reduced its tax liability related to the goodwill generated by the 2002 merger of two of its Brazilian subsidiaries. The matter has proceeded through the Brazil Administrative Council of Tax Appeals (“ CARF ”) principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. The tax and interest claim relating to tax years 2009 to 2012 was finalized and is now the subject of an annulment action we filed in the Brazil federal court. CARF notified us of its final decision regarding the tax, penalties and interest claims relating to tax years 2003 to 2008 in June 2020. We have filed an annulment action in Brazil federal court with respect to that decision as well. The dispute related to penalties for tax years 2009 to 2012 remains before CARF. We assert that we have no liability in these matters. The total amount in dispute before CARF and in the annulment actions relating to the claimed tax deficiency was R$ 732 million ($ 136 million) a s of September 30, 2022, including various penalties and interest. The U.S. dollar equivalent has fluctuated significantly due to changes in exchange rates. The amount of our uncertain tax position reserve for this matter, which excludes certain penalties, is included in the unrecognized tax benefits table. See “ Note 6. Income Taxes ”. Resolution of the uncertain tax positions could have a material adverse effect on our cash flows and results of operations or materially benefit our results of operations in future periods depending upon their ultimate resolution. Other Litigation During fiscal 2018, we submitted formal notification to withdraw from the PIUMPF and recorded a liability associated with the withdrawal. Subsequently, in fiscal 2019 and 2020, we received demand letters from PIUMPF, including a demand for withdrawal liabilities and for our proportionate share of PIUMPF’s accumulated funding deficiency, and we refined our liability, the impact of which was not significant. We began making monthly payments for the PIUMPF withdrawal liabilities in fiscal 2020, excluding the accumulated funding deficiency demands. We dispute the PIUMPF accumulated funding deficiency demands. In February 2020, we received a demand letter from PIUMPF asserting that we owe $ 51.2 million for our pro-rata share of PIUMPF’s accumulated funding deficiency, including interest. Similarly, in April 2020, we received an updated demand letter related to a subsidiary of ours asserting that we owe $ 1.3 million of additional accumulated funding deficiency, including interest. In July 2021, the PIUMPF filed suit against us in the U.S. District Court for the Northern District of Georgia claiming the right to recover our pro rata share of the pension fund’s accumulated funding deficiency, along with interest, liquidated damages and attorney’s fees. We believe we are adequately reserved for this matter. See “ Note 5. Retirement Plans — Multiemployer Plans ” of the Notes to Consolidated Financial Statements for more information regarding our withdrawal liabilities. We have been named a defendant in asbestos-related personal injury litigation. To date, the costs resulting from the litigation, including settlement costs, have not been significant. As of September 30, 2022 , there were approximately 2,075 such lawsuits. We believe that we have substantial insurance coverage, subject to applicable deductibles and policy limits, with respect to asbestos claims. We also have valid defenses to these asbestos-related personal injury claims and intend to continue to defend them vigorously. Should the volume of litigation grow substantially, it is possible that we could incur significant costs resolving these cases. We do not expect the resolution of pending asbestos litigation and proceedings to have a material adverse effect on our results of operations, financial condition or cash flows. In any given period or periods, however, it is possible such proceedings or matters could have an adverse effect on our results of operations, financial condition or cash flows. At September 30, 2022 , we had $ 12.9 million reserved for these matters. We are a defendant in a number of other lawsuits and claims arising out of the conduct of our business. While the ultimate results of such suits or other proceedings against us cannot be predicted, we believe the resolution of these other matters will not have a material adverse effect on our results of operations, financial condition or cash flows. Indirect Tax Claim In March 2017, the Supreme Court of Brazil issued a decision concluding that certain state value added tax should not be included in the calculation of federal gross receipts taxes. Subsequently, in fiscal 2019 and 2020, the Supreme Court of Brazil rendered favorable decisions on eight of our cases granting us the right to recover certain state value added tax. The tax authorities in Brazil filed a Motion of Clarification with the Supreme Court of Brazil. Based on our evaluation and the opinion of our tax and legal advisors, we believe the decision reduced our gross receipts tax in Brazil prospectively and retrospectively, and will allow us to recover tax amounts collected by the government. Due to the volume of invoices being reviewed (January 2002 to September 2019), we recorded the estimated recoveries across several periods beginning in the fourth quarter of fiscal 2019 as we reviewed the documents and the amount became estimable. In May 2021, the Supreme Court of Brazil judged the Motion of Clarification and concluded on the gross methodology, w hich was consistent with our evaluation and that of our tax and legal advisors. In fiscal 2021, we recorded a receivable for our expected recovery and interest that consisted primarily of a $ 0.6 million reduction of Cost of goods sold and $ 0.3 million reduction of Interest expense, net. In fiscal 2020, we recorded a $ 51.9 million receivable for our expected recovery and interest that consisted primarily of a $ 32.1 million reduction of Cost of goods sold and $ 20.5 million reduction of Interest expense, net. We are monitoring the status of our remaining cases, and subject to the resolution in the courts, we may record additional amounts in future periods. Guarantees We make certain guarantees in the normal course of conducting our operations, for compliance with certain laws and regulations, or in connection with certain business dispositions. The guarantees include items such as funding of net losses in proportion to our ownership share of certain joint ventures, debt guarantees related to certain unconsolidated entities acquired in acquisitions, indemnifications of lessors in certain facilities and equipment operating leases for items such as additional taxes being assessed due to a change in tax law and certain other agreements. We estimate our exposure to these matters to be less than $ 50 million. As of September 30, 2022 and 2021 , we had recorded $ 0.8 million and $ 2.3 million, respectively, for the estimated fair value of these guarantees. We are unable to estimate our maximum exposure under operating leases because it is dependent on potential changes in the tax laws; however, we believe our exposure related to guarantees would not have a material impact on our results of operations, financial condition or cash flows. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 30, 2022 | |
Other Comprehensive Income Loss [Abstract] | |
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) | Note 18. Accumulated Other Comprehen sive Loss and Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive loss by component for the fiscal years ended September 30, 2022 and 2021 (in millions): Deferred Defined Benefit Foreign Total (1) Balance at September 30, 2020 $ ( 5.6 ) $ ( 727.7 ) $ ( 586.6 ) $ ( 1,319.9 ) Other comprehensive (loss) income before ( 0.1 ) 161.7 124.2 285.8 Amounts reclassified from accumulated 5.5 29.5 — 35.0 Net current period other comprehensive 5.4 191.2 124.2 320.8 Balance at September 30, 2021 $ ( 0.2 ) $ ( 536.5 ) $ ( 462.4 ) $ ( 999.1 ) Other comprehensive loss before ( 10.3 ) ( 217.1 ) ( 241.2 ) ( 468.6 ) Amounts reclassified from accumulated 1.4 12.0 — 13.4 Net current period other comprehensive loss ( 8.9 ) ( 205.1 ) ( 241.2 ) ( 455.2 ) Balance at September 30, 2022 $ ( 9.1 ) $ ( 741.6 ) $ ( 703.6 ) $ ( 1,454.3 ) (1) All amounts are net of tax and noncontrolling interest. The net of tax amounts were determined using the jurisdictional statutory rates, and reflect effective tax rates averaging 25 % to 26 %, 25 % to 26 % and 28 % to 29 % for fiscal 2022, 2021 and 2020, respectively. Although we are impacted by the exchange rates of a number of currencies to varying degrees by period, our foreign currency translation adjustments recorded in accumulated other comprehensive loss primarily relate to the Brazilian Real, British Pound, Canadian dollar, Mexican Peso, Polish Zloty, Chinese Yuan and Japanese Yen each against the U.S. dollar. In fiscal 2022, we entered into various natural gas commodity derivatives to hedge the pricing risk associated with our forecasted natural gas purchases. We have designated these derivatives as cash flow hedges for accounting purposes. Therefore, the entire change in fair value of the financial derivative instrument is reported as a component of other comprehensive loss and reclassified into earnings in the same line item associated with the forecasted transaction, and in the same period or periods during which the forecasted transaction affects earnings. Fair value measurements for our natural gas commodity derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as commodity future prices. At September 30, 2022 , the notional amount of our natural gas commodity derivatives was 18.3 million MMBtu, which are scheduled to be settled approximately over the next year. Our natural gas hedging positions are entered in layers over multiple months and up to 12 months in advance to achieve a targeted hedging volume of up to 80% of our anticipated NYMEX-based natural gas purc hases (which make up roughly half of the total natural gas purchases for our North American mills). At September 30, 2022, we were in a liability position of $ 12.0 m illion recorded in Other current liabilities on our consolidated balance sheet. We have the right of offset and disclose our positions net by counterparty. At September 30, 2022, we have offset $ 2.3 million of asset positions with liability positions by counterparty. In fiscal 2022, we recorded $ 1.8 million of net realized losses in Cost of goods sold related to our natural gas commodity derivatives. The following table summarizes the reclassifications out of accumulated other comprehensive loss by component for the fiscal years ended September 30, 2022 and 2021 (in millions): Years Ended September 30, 2022 2021 Pre-Tax Tax Net of Tax Pre-Tax Tax Net of Tax Amortization of defined benefit pension and (1) Actuarial losses (2) $ ( 7.8 ) $ 1.9 $ ( 5.9 ) $ ( 33.3 ) $ 8.3 $ ( 25.0 ) Prior service costs (2) ( 8.2 ) 2.1 ( 6.1 ) ( 6.0 ) 1.5 ( 4.5 ) Subtotal defined benefit plans ( 16.0 ) 4.0 ( 12.0 ) ( 39.3 ) 9.8 ( 29.5 ) Derivative Instruments: (1) Interest rate swap hedge loss (3) — — — ( 7.4 ) 1.9 ( 5.5 ) Natural gas commodity hedge loss (4) ( 1.8 ) 0.4 ( 1.4 ) — — — Subtotal derivative instruments ( 1.8 ) 0.4 ( 1.4 ) ( 7.4 ) 1.9 ( 5.5 ) Total reclassifications for the period $ ( 17.8 ) $ 4.4 $ ( 13.4 ) $ ( 46.7 ) $ 11.7 $ ( 35.0 ) (1) Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See “ Note 5. Retirement Plans ” for additional information. (3) These accumulated other comprehensive income components are included in Interest expense, net. (4) These accumulated other comprehensive income components are included in Cost of goods sold. A summary of the components of other comprehensive income (loss), including noncontrolling interest, for the years ended September 30, 2022, 2021 and 2020, is as follows (in millions): Fiscal 2022 Pre-Tax Tax Net of Tax Foreign currency translation loss $ ( 241.5 ) $ — $ ( 241.5 ) Deferred loss on cash flow hedges ( 13.8 ) 3.5 ( 10.3 ) Reclassification adjustment of net loss on cash flow hedges 1.8 ( 0.4 ) 1.4 Net actuarial loss arising during period ( 289.1 ) 72.8 ( 216.3 ) Amortization and settlement recognition of net actuarial loss 8.4 ( 2.0 ) 6.4 Prior service cost arising during the period ( 0.2 ) — ( 0.2 ) Amortization of prior service cost 8.2 ( 2.1 ) 6.1 Consolidated other comprehensive loss ( 526.2 ) 71.8 ( 454.4 ) Less: Other comprehensive income attributable to noncontrolling ( 1.1 ) 0.3 ( 0.8 ) Other comprehensive loss attributable to common $ ( 527.3 ) $ 72.1 $ ( 455.2 ) Fiscal 2021 Pre-Tax Tax Net of Tax Foreign currency translation gain $ 124.3 $ — $ 124.3 Deferred loss on cash flow hedges ( 0.1 ) — ( 0.1 ) Reclassification adjustment of net loss on cash flow hedges 7.4 ( 1.9 ) 5.5 Net actuarial gain arising during period 222.2 ( 56.6 ) 165.6 Amortization and settlement recognition of net actuarial loss 33.9 ( 8.4 ) 25.5 Prior service cost arising during the period ( 5.6 ) 1.4 ( 4.2 ) Amortization of prior service cost 6.0 ( 1.5 ) 4.5 Consolidated other comprehensive income 388.1 ( 67.0 ) 321.1 Less: Other comprehensive income attributable to noncontrolling ( 0.3 ) — ( 0.3 ) Other comprehensive income attributable to common $ 387.8 $ ( 67.0 ) $ 320.8 Fiscal 2020 Pre-Tax Tax Net of Tax Foreign currency translation loss $ ( 215.0 ) $ — $ ( 215.0 ) Deferred loss on cash flow hedges ( 13.3 ) 3.3 ( 10.0 ) Reclassification adjustment of net loss on cash flow hedges 4.9 ( 1.3 ) 3.6 Net actuarial gain arising during period 34.6 ( 10.4 ) 24.2 Amortization and settlement recognition of net actuarial loss 48.3 ( 12.9 ) 35.4 Prior service cost arising during the period ( 26.9 ) 7.3 ( 19.6 ) Amortization of prior service cost 5.1 ( 1.3 ) 3.8 Consolidated other comprehensive loss ( 162.3 ) ( 15.3 ) ( 177.6 ) Less: Other comprehensive loss attributable to noncontrolling 0.3 — 0.3 Other comprehensive loss attributable to common $ ( 162.0 ) $ ( 15.3 ) $ ( 177.3 ) |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note 19. Stock holders’ Equity Capitalization Our capital stock consists solely of Common Stock. Holders of our Common Stock are entitled to one vote per share. Our amended and restated certificate of incorporation also authorizes preferred stock, of which no shares have been issued. The terms and provisions of such shares will be determined by our board of directors upon any issuance of such shares in accordance with our certificate of incorporation. Stock Repurchase Plan In July 2015, our board of directors authorized a repurchase program of up to 40.0 million shares of our Common Stock, representing approximately 15 % of our outstanding Common Stock as of July 1, 2015. On May 4, 2022, our board of directors authorized a new repurchase program of up to 25.0 million shares of our Common Stock, plus any unutilized shares left from the July 2015 authorization. The 25.0 million shares represent an additional authorization of approximately 10 % of our outstanding Common Stock. The shares of our Common Stock may be repurchased over an indefinite period of time at the discretion of management. In fiscal 2022, we repurchased approximate ly 12.6 million shares of our Common Stock for an aggregate cost of $ 597.5 m illion. In fiscal 2021, we repurchased approximately 2.5 million shares of our Common Stock for an aggregate cost of $ 125.1 million. In fiscal 2020, we repurchased no shares of our Common Stock. The amount reflected as purchased in the consolidated statements of cash flows varies due to the timing of share settlement. As of September 30, 2022, we had approximatel y 29.0 million s hares of Common Stock available for repurchase under the program. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Sep. 30, 2022 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | Note 20. Share-B ased Compensation Share-based Compensation Plans At our Annual Meeting of Stockholders held on January 29, 2021, our stockholders approved the WestRock Company 2020 Incentive Stock Plan. The 2020 Incentive Stock Plan, as amended, allows for the granting of 4.95 million shares of options, restricted stock, restricted stock units and SARs to employees and our non-employee directors. As of September 30, 2022, there were 3.1 million shares available to be granted under this plan, assuming the performance stock units previously granted vest at maximum. At our Annual Meeting of Stockholders held on February 2, 2016, our stockholders approved the WestRock Company 2016 Incentive Stock Plan. The 2016 Incentive Stock Plan was amended and restated on February 2, 2018 (the “ Amended and Restated 2016 Incentive Stock Plan ”). The Amended and Restated 2016 Incentive Stock Plan allows for the granting of 11.7 million shares of options, restricted stock, restricted stock units and SARs to employees and our non-employee directors. As of September 30, 2022, there were 0.9 million shares available to be granted under this plan, assuming the performance stock units previously granted vest at maximum. In addition, there were 12.4 million shares available for grant under prior plans approved by stockholders and plans assumed upon mergers and acquisitions; we do not expect to make any new awards under those plans. Our results of operations for the fiscal years ended September 30, 2022, 2021 and 2020 include share-based compensation expense of $ 93.3 million, $ 88.6 million and $ 130.3 million, respectively. The higher amount in fiscal 2020 was due to restricted stock units granted in fiscal 2020 to satisfy certain annual bonus incentives in connection with the WestRock Pandemic Action Plan. The total income tax benefit in the results of operations in connection with share-based compensation was $ 23.3 million, $ 22.3 million and $ 33.2 million, for the fiscal years ended September 30, 2022, 2021 and 2020, respectively. Cash received from share-based payment arrangements for the fiscal years ended September 30, 2022, 2021 and 2020 was $ 28.9 million, $ 57.5 million and $ 32.4 million, respectively. Stock Options and Stock Appreciation Rights We did no t grant any stock options or SARs in fiscal 2022, 2021 and 2020 . Outstanding stock options granted under our plans generally have an exercise price equal to the closing market price on the date of the grant, generally vested in three years , in either one tranche or in approximately one-third increments, and have 10 -year contractual terms. However, a portion of our grants are subject to earlier expense recognition due to retirement eligibility rules. Presently, other than circumstances such as death, disability and retirement, grants will include a provision requiring both a change of control and termination of employment to accelerate vesting. When options are granted, we estimate the fair value of stock options granted using a Black-Scholes option pricing model. We use historical data to estimate option exercises and employee terminations in determining the expected term in years for stock options. Expected volatility is calculated based on the historical volatility of our stock. The risk-free interest rate is based on U.S. Treasury securities in effect at the date of the grant of the stock options. The dividend yield is estimated based on our historic annual dividend payments and current expectations for the future. The table below summarizes the changes in all stock options during the fiscal year ended September 30, 2022: Stock Weighted Weighted Aggregate Outstanding at September 30, 2021 1,845,672 $ 38.79 Exercised ( 567,648 ) 31.44 Expired ( 195,099 ) 52.27 Outstanding at September 30, 2022 1,082,925 $ 40.22 1.8 $ 1.3 Exercisable at September 30, 2022 1,082,925 $ 40.22 1.8 $ 1.3 The aggregate intrinsic value of options exercised during the years ended September 30, 2022, 2021 and 2020 was $ 8.6 million, $ 29.1 million and $ 11.8 million, respectively. As of September 30, 2022 , there was no remaining unrecognized compensation cost related to unvested stock options. As part of the Combination, we issued SARs to replace outstanding MWV SARs. The SARs were valued using the Black-Scholes option pricing model. We measured compensation expense related to the SAR awards at the end of each period. We do not expect to issue additional SARs. The aggregate intrinsic value of SARs exercised during the years ended September 30, 2022, 2021 and 2020 was $ 0.1 million, $ 0.2 million and $ 0.2 million, respectively. T here were no SARs outstanding at September 30, 2022. Restricted Stock and Restricted Stock Units In fiscal 2022, we granted restricted stock units to non-employee directors and certain of our employees. These grants represent the right to receive one share of Common Stock upon satisfaction of specified conditions. The vesting provisions for our employee awards may vary from grant to grant; however, vesting generally is contingent upon meeting various service and/or performance or market goals including, but not limited to, achievement of various financial targets such as, with respect to fiscal 2022, Cash Flow Per Share, Return on Invested Capital and relative Total Shareholder Return (each as defined in the award documents). Subject to the level of performance attained, the target award for our grants with a performance or market condition generally may increase up to 200 % of target or decrease to zero depending upon the terms of the individual grant. The employee grants generally vest in three years . Presently, other than circumstances such as death, disability and retirement, the grants generally include a provision requiring both a change of control and termination of employment to accelerate vesting. The grantee is entitled to receive dividend equivalent units but will generally forfeit the restricted stock unit award and the dividend equivalents if the employee separates from us during the vesting period or if the predetermined goals are not accomplished. Our non-employee director awards generally vest over a period of up to one year and carry a service condition. Prior to fiscal 2022, our non-employee directors received their equity awards in the form of restricted stock, which carried dividend and voting rights prior to vesting. As mentioned above, in fiscal 2020 in connection with the WestRock Pandemic Action Plan, we issued restricted stock units to employees to satisfy certain annual bonus incentives. Those awards vested in October 2020 at 105 % of target. The table below summarizes the changes in restricted stock units and restricted stock during the fiscal year ended September 30, 2022: Units/Shares Weighted Outstanding at September 30, 2021 (1) 4,977,459 $ 42.02 Granted 2,365,554 45.24 Vested and released ( 1,512,550 ) 41.07 Forfeited ( 929,834 ) 42.77 Outstanding at September 30, 2022 (1) 4,900,629 $ 43.73 (1) Target awards granted with a performance condition, net of subsequent forfeitures, may be increased up to 200 % of the target or decreased to zero , subject to the level of performance attained. The awards are reflected in the table at the target award amount of 100 %. Based on current facts and assumptions, we are forecasting the performance of the aggregate outstanding grants to be attained at levels that would result in the issuance of approximately 0.8 million additional shares. However, actual performance may vary. There was approximately $ 102.5 million of unrecognized compensation cost related to all unvested restricted units/shares as of September 30, 2022 to be recognized over a weighted average remaining vesting period of 1.5 years. The following table represents a summary of restricted stock units and restricted stock granted in fiscal 2022, 2021 and 2020 with terms defined in the applicable grant letters (in units/shares). 2022 2021 2020 Granted to non-employee directors 37,771 42,482 49,236 Granted to employees: Granted for attainment of a performance condition at (1) 263,918 — — Granted with a service condition and a Cash Flow Per (2) 464,485 798,490 869,065 Granted with a service condition and a Return on (2) 394,655 — — Granted with a service condition and a relative Total (2) 45,470 127,050 152,595 Granted with a service condition (3) 1,159,255 1,009,387 889,030 Granted for annual bonus (4) — 126,984 2,486,249 Total grants 2,365,554 2,104,393 4,446,175 (1) Grants in the table above include shares subsequently issued for the level of performance attained in excess of target. Shares issued in fiscal 2022 for the fiscal 2019 Cash Flow Per Share were at 151.3 % of target. Shares issued in fiscal 2021 for the fiscal 2018 Cash Flow Per Share were at 89.3 % of target, therefore, the remainder of the grant was forfeited. Shares issued in fiscal 2020 for the fiscal 2017 Cash Flow Per Share were at 98.8 % of target, therefore, the remainder of the grant was forfeited. (2) These employee grants vest over approximately three years and have adjustable ranges from 0 - 200 % of target subject to the level of performance attained in the respective award agreement. The employee grants with a relative Total Shareholder Return condition were valued using a Monte Carlo simulation, the terms of which are outlined below. (3) These grants vest over approximately three to four years . (4) Reflects shares issued in fiscal 2021 for the fiscal 2020 restricted stock units granted for the annual bonus were at 105 % of target. The employee grants with a relative Total Shareholder Return market condition in fiscal 2022 were valued using a Monte Carlo simulation at $ 60.83 per unit. The significant assumptions used in valuing these grants included: an expected term of 3.0 years, an expected volatility of 46.7 % and a risk-free interest rate of 1.5 %. The employee grants with a relative Total Shareholder Return market condition in fiscal 2021 were valued using a Monte Carlo simulation at $ 53.69 per unit. The significant assumptions used in valuing these grants included: an expected term of 3.0 years, an expected volatility of 46.2 % and a risk-free interest rate of 0.2 %. In addition, we had a subsequent grant for an individual valued using a Monte Carlo simulation at $ 70.80 per unit, using an expected term of 2.9 years, an expected volatility of 47.0 % and a risk free rate of 0.3 %. The employee grants with a relative Total Shareholder Return market condition in fiscal 2020 were valued using a Monte Carlo simulation at $ 45.14 per unit. The significant assumptions used in valuing these grants included: an expected term of 3.0 years, an expected volatility of 27.5 % and a risk-free interest rate of 1.3 %. Expense is recognized on restricted stock units and restricted stock on a straight-line basis over the explicit service period or for performance-based grants over the explicit service period when we estimate that it is probable the performance conditions will be satisfied. Expense recognized on grants with a performance condition that affects how many units are ultimately awarded is based on the number of units expected to be awarded. The following table represents a summary of restricted stock units and restricted stock vested and released as well as the corresponding aggregate fair value in fiscal 2022, 2021 and 2020 (in millions, except units/shares): 2022 2021 2020 Vested and released 1,512,550 3,194,223 766,431 Aggregate fair value $ 68.7 $ 125.1 $ 29.6 Employee Stock Purchase Plan At our Annual Meeting of Stockholders held on February 2, 2016, our stockholders approved the WestRock Company Employee Stock Purchase Plan (“ ESPP ”). Under the ESPP, shares of Common Stock are reserved for purchase by our qualifying employees. The ESPP allowed for the purchase of a total of approximately 2.5 million shares of Common Stock. During fiscal 2022, 2021 and 2020, employees purchased approximately 0.3 million, 0.3 million and 0.4 million shares, respectively, under the ESPP. We recognized $ 1.8 million, $ 1.9 million and $ 2.1 million of expense for fiscal 2022, 2021 and 2020 , respectively, related to the 15 % discount on the purchase price allowed to employees. As of September 30, 2022 , approximately 1.0 million shares of Common Stock remained available for purchase under the ESPP. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 21. Earn ings Per Share The restricted stock grants to non-employee directors prior to fiscal 2022 were considered participating securities as they received non-forfeitable rights to dividends at the same rate as our Common Stock. As participating securities, we included these instruments in the earnings allocation in computing earnings per share under the two-class method described in ASC 260, “ Earnings per Share ”. Beginning in fiscal 2022, restricted stock units granted to non-employee directors are not considered participating securities as the rights to dividends accrued during the vesting period are forfeitable. The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in millions, except per share data): September 30, 2022 2021 2020 Numerator: Net income (loss) attributable to common stockholders $ 944.6 $ 838.3 $ ( 690.9 ) Less: Distributed and undistributed income available to ( 0.1 ) ( 0.2 ) ( 0.1 ) Distributed and undistributed income (loss) available to $ 944.5 $ 838.1 $ ( 691.0 ) Denominator: Basic weighted average shares outstanding 259.5 265.2 259.2 Effect of dilutive stock options and non-participating securities 2.0 2.3 — Diluted weighted average shares outstanding 261.5 267.5 259.2 Basic earnings (loss) per share attributable to common $ 3.64 $ 3.16 $ ( 2.67 ) Diluted earnings (loss) per share attributable to common $ 3.61 $ 3.13 $ ( 2.67 ) An aggregate of 0.5 million, 0.5 million and 4.2 million shares underlying options, restricted stock units and restricted stock in fiscal 2022, 2021 and 2020 , respectively, were not included in computing diluted earnings per share because the effect would have been antidilutive. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22. Sub sequent Events In November 2022, we announced our entry into a definitive agreement to wholly divest our interior partitions converting operations (our ownership interest in RTS Packaging, LLC) and to sell our Chattanooga, TN uncoated recycled paperboard mill to our joint venture partner for $ 330 million, subject to a working capital adjustment. The transaction is expected to close in the first half of 2023 , subject to the satisfaction of customary closing conditions, including regulatory approval. In November 2022, we also announced our entry into a definitive agreement to sell our Eaton, IN, and Aurora, IL, uncoated recycled paperboard mills for $ 50 million, subject to a working capital adjustment. The transaction is expected to close in late 2022 or early 2023 . These divestitures align with our commitment to optimize our portfolio and focus our strategy on key end markets. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. Actual results may differ from these estimates. The consolidated financial statements include the accounts of WestRock and our partially owned subsidiaries for which we have a controlling financial interest, including variable interest entities for which we are the primary beneficiary. Equity investments in which we exercise significant influence but do not control and are not the primary beneficiary are accounted for using the equity method. Investments without a readily determinable value in which we are not able to exercise significant influence over the investee are accounted under the measurement alternative (i.e., cost less impairment, adjusted for any qualifying observable price changes). Our investments accounted for under the equity method or the measurement alternative method are not material either individually or in the aggregate. We have eliminated all significant intercompany accounts and transactions. See “ Note 7. Segment Information ” for our equity method investments. |
Reclassifications and Adjustments | Reclassifications and Adjustments Effective October 1, 2021, we reorganized our segment reporting to four reportable segments: Corrugated Packaging, Consumer Packaging, Global Paper and Distribution. Prior period amounts have been recast throughout the Notes to Consolidated Financial Statements, as applicable, to conform to the new segment structure. These changes did not impact our consolidated financial statements. See “ Note 7 Segment Information ” for additional information. Certain amounts in prior periods have been reclassified to conform with the current year presentation. |
COVID Pandemic | COVID Pandemic The global impact of the COVID has affected our operational and financial performance to varying degrees. The extent of the effects of future public health crises, including a resurgence of COVID, or related containment measures and government responses are highly uncertain and cannot be predicted. Our net sales, primarily in the last half of fiscal 2020, were negatively impacted by COVID, and we have experienced and are currently experiencing higher supply chain costs and tight labor markets in part due to the impacts of COVID. |
Ransomware Incident | Ransomware Incident As previously disclosed, on January 23, 2021 we detected a ransomware incident impacting certain of our systems. Promptly upon our detection of this incident, we initiated response and containment protocols and our security teams, supplemented by leading cyber defense firms, worked to remediate this incident. These actions included taking preventative measures, including shutting down certain systems out of an abundance of caution, as well as taking steps to supplement existing security monitoring, scanning and protective measures. We notified law enforcement and contacted our customers to apprise them of the situation. We undertook extensive efforts to identify, contain and recover from this incident quickly and securely. Our teams worked to maintain our business operations and minimize the impact on our customers and team members. In our Form 10-Q for the second quarter of fiscal 2021, we announced that all systems were back in service. All of our mills and converting locations began producing and shipping paper and packaging at pre-ransomware levels in March 2021 or earlier. Our mill system production was approximately 115,000 tons lower than planned for the quarter ended March 31, 2021 as a result of this incident. While shipments from some of our facilities initially lagged behind production levels, this gap closed as systems were restored during the second quarter of fiscal 2021. In locations where technology issues were identified, we used alternative methods, in many cases manual methods, to process and ship orders. We systematically brought our information systems back online in a controlled, phased approach. We estimated the pre-tax income impact of the lost sales and operational disruption of this incident on our operations in the second quarter of fiscal 2021 was approximately $ 50 million, as well as approximately $ 20 million of ransomware recovery costs, primarily professional fees. In addition, we incurred approximately $ 9 million of ransomware recovery costs in the third quarter of fiscal 2021. In the fourth quarter of fiscal 2021, we recorded a $ 15 million credit for preliminary recoveries – approximately $ 10 million as a reduction of SG&A excluding intangible amortization and approximately $ 5 million as a reduction of Cost of goods sold. I n fiscal 2022, we recorded a $ 57.2 million credit for ransomware insurance recoveries. We recorded $ 50.6 million of business interruption recoveries as a reduction of Cost of goods sold and $ 6.6 million of direct cost recoveries as a reduction of SG&A excluding intangible amortization. We present ransomware recoveries received as Net cash provided by operating activities in our consolidated statements of cash flows. While we expect to reco ver substantially all of the remaining ransomware losses from cyber and business interruption insurance from various carriers in future periods, the recovery process proceeds from carrier to carrier up the coverage layers after the preceding layer is resolved, which lends itself to a lengthy process. Additionally, discussions and/or disputes over the extent of insurance coverage for claims are not uncommon and generally take time to be resolved. In order to contain and remediate the cybersecurity incident, we engaged a leading cybersecurity defense firm to complete a forensics investigation and performed short-term mitigation actions in the latter half of 2021. Mitigations performed included the execution of a company-wide password reset and the deployment of security tooling across all our servers and workstations. Additionally, to address longer term security objectives, we developed a multi-year security and resiliency roadmap, aimed to strengthen the company’s ability to detect, respond, and recover from security incidents. This roadmap included initiatives to bolster our information security posture across the enterprise, and to deploy technology and process improvements to allow for faster and more effective incident response and recovery. More specifically, key areas of focus for the resiliency roadmap included: strengthening security monitoring controls, improving security at our operating locations, automating identity and access management, expanding third-party security, modernizing the network and file and print infrastructure, and updating backup capabilities. In fiscal 2022, we realized incremental progress against our resiliency objectives. We improved our mean-time-to-resolve security incidents, deployed endpoint detection and response technology across all of our workstation and server population, transitioned all of our local drives to cloud-based storage, and progressed against key goals to modernize the security and infrastructure of our operating locations. In fiscal 2023, we expect to continue our resiliency roadmap efforts. Quarterly progress, as well as key risks and issues, are reported to the Audit Committee for oversight and monitoring. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates, and the differences could be material. We base our estimates on the current information available, our experiences and various other assumptions believed to be reasonable under the circumstances. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, and in some cases, actuarial techniques. The global impact of the COVID pandemic may also affect our accounting estimates, which may materially change from period to period due to changing market factors. We regularly evaluate these significant factors and make adjustments where facts and circumstances dictate. |
Revenue Recognition | Revenue Recognition We generally recognize revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods, which coincide with the transfer of control of our goods to the customer. Additionally, we manufacture certain customized products that have no alternative use to us (since they are made to specific customer specifications), and we believe that for certain customers we have a legally enforceable right to payment for performance completed to date on these products, including a reasonable profit. For products that meet these two criteria, we recognize revenue “over time”. This results in revenue recognition prior to the date of shipment or title transfer for these products and results in the recognition of a contract asset (unbilled receivables) with a corresponding reduction in finished goods inventory on our balance sheet. We net provisions for discounts, returns, allowances, customer rebates and other adjustments against our gross sales. Such adjustments are based on historical experience which is consistent with the most likely method as provided in ASC 606 “ Revenue from Contracts with Customers ” (“ ASC 606 ”). As permitted by ASC 606, we have elected to treat costs associated with obtaining new contracts as expenses when incurred if the amortization period of the asset we would recognize is one year or less. We do not record interest income when the difference in timing of control transfer and customer payment is one year or less. We also account for sales and other taxes that are imposed on and concurrent with individual revenue-producing transactions between a customer and us on a net basis which excludes the taxes from our net sales. |
Shipping and Handling Cost | Shipping and Handling Costs We classify shipping and handling costs, such as freight to our customers’ destinations, as a component of cost of goods sold. When shipping and handling costs are included in the sales price charged for our products, they are recognized in net sales since we treat shipping and handling as fulfilment activities. |
Cash Equivalents | Cash Equivalents We consider all highly liquid investments that mature three months or less from the date of purchase to be cash equivalents. The carrying amounts of our cash and cash equivalents approximate fair market values. We place our cash and cash equivalents primarily with large credit worthy banks, which limits the amount of our credit exposure. |
Accounts Receivables and Allownanes | Accounts Receivable and Allowances We derive our accounts receivable from revenue earned from customers located primarily in North America, South America, Europe, Asia and Australia. Given our diverse customer base, we have limited exposure to credit loss from any particular customer or industry segment, and hence we generally do not require collateral. We perform an evaluation of lifetime expected credit losses inherent in our accounts receivable at each balance sheet date. Such an evaluation includes consideration of historical loss experience, trends in customer payment frequency, present economic conditions, and judgment about the future financial health of our customers and industry sector. The average of our receivables collection is within 30 to 60 days . We are a party to accounts receivable sales agreements to sell to third-party financial institutions all of the short-term receivables generated from certain customer trade accounts. See “ Note 12. Fair Value — Accounts Receivable Sales Agreements ”. We state accounts receivable at the amount owed by the customer, net of an allowance for estimated credit impairment losses, returns and allowances, cash discounts and other adjustments. We do not discount accounts receivable because we generally collect accounts receivable over a relatively short time. We charge off receivables when they are determined to be no longer collectible. We recorded bad debt expense of $ 4.6 million and $ 19.9 million in fiscal 2022 and 2020, respectively, and a credit of $ 9.4 million in fiscal 2021. The following table represents a summary of the changes in the reserve for allowance for doubtful accounts, returns and allowances and cash discounts for fiscal 2022, 2021 and 2020 (in millions): 2022 2021 2020 Balance at beginning of fiscal year $ 68.1 $ 66.3 $ 53.2 Reduction in sales and charges to costs and expenses 261.9 236.5 270.8 Deductions ( 263.7 ) ( 234.7 ) ( 257.7 ) Balance at end of fiscal year $ 66.3 $ 68.1 $ 66.3 |
Inventories | Inventories We value our U.S. inventories at the lower of cost or market, with cost for the majority of our U.S. inventories determined on the last-in first-out (“ LIFO ”) basis. We value all other inventories at the lower of cost and net realizable value, with cost determined using methods that approximate cost computed on a first-in first-out inventory valuation method (“ FIFO ”) basis. These other inventories are primarily foreign inventories, distribution business inventories, spare parts inventories and certain inventoried supplies and aggregate to approximately 35 % and 36 % of FIFO cost of all inventory at September 30, 2022 and 2021, respectively. See “ Note 9. Inventories ” for additional information. Prior to the application of the LIFO method, our U.S. operating divisions use a variety of methods to estimate the FIFO cost of their finished goods inventories. Such methods include standard costs, or average costs computed by dividing the actual cost of goods manufactured by the tons produced and multiplying this amount by the tons of inventory on hand. Lastly, certain operations calculate a ratio, on a plant-by-plant basis, the numerator of which is the cost of goods sold and the denominator is net sales. This ratio is applied to the estimated sales value of the finished goods inventory. Variances and other unusual items are analyzed to determine whether it is appropriate to include those items in the value of inventory. Examples of variances and unusual items that are considered to be current period charges include, but are not limited to, production levels, freight, handling costs, and wasted materials (spoilage) that are determined to be abnormal. Costs include raw materials and supplies, direct labor, indirect labor related to the manufacturing process and depreciation and other factory overheads. Our inventoried spare parts are measured at average cost. |
Leased Assets | Leased Assets We adopted the provisions of ASC 842, “Leases” on October 1, 2019 using the modified retrospective approach and, as a result, did not restate prior periods. We elected the package of three practical expedients permitted within the standard pursuant to which we did not reassess initial direct costs, lease classification or whether our contracts contain or are leases. We lease various real estate, including certain operating facilities, warehouses, office space and land. We also lease material handling equipment, vehicles and certain other equipment. We record our operating lease ROU assets and liabilities at the commencement date of the lease based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. While some leases provide for variable payments, they are not included in the ROU assets and liabilities because they are not based on an index or rate. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles and leases within supply agreements primarily relate to usage, repairs, and maintenance. As the implicit rate is not readily determinable for our leases, we apply a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a monthly basis for measurement of new lease liabilities. We have made an accounting policy election to not recognize an ROU asset and liability for leases with a term of 12 months or less unless the lease includes an option to renew or purchase the underlying asset that we are reasonably certain to exercise. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. See “ Note 14. Leases ” for additional information. |
Property, Plant and Equipment | Property, Plant and Equipment We record property, plant and equipment at cost less accumulated depreciation. Cost includes major expenditures for improvements and replacements that extend useful lives, increase capacity, increase revenues or reduce costs, while normal maintenance and repairs are expensed as incurred. For financial reporting purposes, we provide depreciation and amortization primarily on a straight-line method generally over the estimated useful lives of the assets as follows: Buildings and building improvements 15 - 40 years Machinery and equipment 3 - 25 years Transportation equipment 3 - 8 years Generally, our machinery and equipment have estimated useful lives between 3 and 25 years ; however, select portions of machinery and equipment primarily at our mills have estimated useful lives up to 44 years. Greater than 90 % of the cost of our mill assets have useful lives of 25 years or less. Leasehold improvements are depreciated over the shorter of the asset life or the lease term, generally between 3 and 10 years . |
Goodwill and Long-Lived Assets | Goodwill and Long-Lived Assets In accordance with ASC 350, we review the carrying value of our goodwill annually at the beginning of the fourth quarter of each fiscal year, or more often if events or changes in circumstances indicate that the carrying amount may exceed fair value. We test goodwill for impairment at the reporting unit level, which is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. However, two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. The amount of goodwill acquired in a business combination that is assigned to one or more reporting units as of the acquisition date is the excess of the purchase price of the acquired businesses (or portion thereof) included in the reporting unit, over the fair value assigned to the individual assets acquired or liabilities assumed from a market participant perspective. Goodwill is assigned to the reporting unit(s) expected to benefit from the synergies of the combination even though other assets or liabilities of the acquired entity may not be assigned to that reporting unit. We determine recoverability by comparing the estimated fair value of the reporting unit to which the goodwill applies to the carrying value, including goodwill, of that reporting unit. We determine the fair value of each reporting unit using the discounted cash flow method or, as appropriate, a combination of the discounted cash flow method and the guideline public company method. ASC 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is “more likely than not” that the fair value of a reporting unit exceeds its carrying amount. We generally do not attempt a qualitative assessment and move directly to the quantitative test. As part of the quantitative test, we utilize the present value of expected cash flows or, as appropriate, a combination of the present value of expected cash flows and the guideline public company method to determine the estimated fair value of our reporting units. This present value model requires management to estimate future cash flows, the timing of these cash flows, and a discount rate (based on a weighted average cost of capital), which represents the time value of money and the inherent risk and uncertainty of the future cash flows. Factors that management must estimate when performing this step in the process include, among other items, sales volume, prices, inflation, discount rates, exchange rates, tax rates, anticipated synergies and productivity improvements resulting from past acquisitions, capital expenditures and continuous improvement projects. The assumptions we use to estimate future cash flows are consistent with the assumptions that the reporting units use for internal planning purposes, which we believe would be generally consistent with that of a market participant. Under the guideline public company method, we estimate the fair value of the reporting unit based on published EBITDA multiples of comparable public companies with similar operations and economic characteristics. The fair values determined by the discounted cash flow and guideline public company methods are weighted to arrive at the concluded fair value of the reporting unit. However, in instances where comparisons to our peers is less meaningful, no weight is placed on the guideline public company method to arrive at the concluded fair value of the reporting unit. If we determine that the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If we determine that the carrying amount of the reporting unit exceeds its estimated fair value, we measure the goodwill impairment charge based on the excess of a reporting unit’s carrying amount over its fair value as required under ASU 2017-04 “ Simplifying the Test for Goodwill Impairment ”, which we early adopted starting with our fiscal 2020 annual goodwill impairment test on July 1, 2020. During the fourth quarter of fiscal 2022, we completed our annual goodwill impairment testing. We considered factors such as, but not limited to, our expectations for the short-term and long-term impacts of COVID, macroeconomic conditions, industry and market considerations, and financial performance, including planned revenue, earnings and capital investments of each reporting unit. The discount rate used for each reporting unit ranged from 9.5 % to 13.0 % . We used perpetual growth rates ranging from 0.0 % to 1.0 %. All reporting units that have goodwill were noted to have a fair value that exceeded their carrying values by more than 15 % each. If we had concluded that it was appropriate to increase the discount rate we used by 100 basis points, the fair value of each of our reporting units would have continued to exceed its car rying value. No reporting unit failed the annual impairment test; however, the fair value of the Corrugated Packaging reporting unit only exceeded its carrying value by 15 % at July 1, 2022. In our fiscal 2022 annual goodwill impairment analysis, projected future cash flows for the Corrugated Packaging reporting unit were discounted at 10.0 %. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rate would have to be increased to 11.9 %, in order for the estimated fair value of the reporting unit to fall below its carrying value. At September 30, 2022, the Corrugated Packaging, Consumer Packaging, Global Paper and Distribution reporting units had $ 2,802.8 million, $ 1,588.4 million, $ 1,366.5 million and $ 137.5 million of goodwill, respectively, which remained recoverable at the current year-end. Subsequent to our annual test, we monitored industry economic trends until the end of our fiscal year and determined no additional testing for goodwill impairment was warranted. We have not made any material changes to our impairment loss assessment methodology during the past three fiscal years. Currently, we do not believe there is a reasonable likelihood that there will be a material change in future assumptions or estimates we use to calculate impairment losses. However, we cannot predict or control market factors, including the impact of macroeconomic conditions, and there are certain risks inherent to our operations, as described in Item 1A. “ Risk Factors ” . If actual results are not consistent with our assumptions and estimates, we may be exposed to additional impairment losses that could be material. We follow the provisions included in ASC 360, “Property, Plant, and Equipment” in determining whether the carrying value of any of our long-lived assets, including ROU assets and amortizable intangibles other than goodwill, is impaired. The ASC 360 test is a three-step test for assets that are “held and used” as that term is defined by ASC 360. We determine whether indicators of impairment are present. We review long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of the long-lived asset might not be recoverable. If we determine that indicators of impairment are present, we determine whether the estimated undiscounted cash flows for the potentially impaired assets are less than the carrying value. This requires management to estimate future cash flows through operations over the remaining useful life of the asset and its ultimate disposition. The assumptions we use to estimate future cash flows are consistent with the assumptions we use for internal planning purposes, updated to reflect current expectations. If our estimated undiscounted cash flows do not exceed the carrying value, we estimate the fair value of the asset and record an impairment charge if the carrying value is greater than the fair value of the asset. We estimate fair value using discounted cash flows, observable prices for similar assets, or other valuation techniques. We record assets classified as “held for sale” at the lower of their carrying value or estimated fair value less anticipated costs to sell. Our long-lived assets, including intangible assets remain recoverable. Included in our long-lived assets are certain identifiable intangible assets. These intangible assets are amortized based on the approximate pattern in which the economic benefits are consumed or straight-line if the pattern was not reliably determinable. Estimated useful lives range from 1 to 40 years and have a weighted average life of approximately 15.7 years. Our judgments regarding the existence of impairment indicators are based on legal factors, market conditions and operational performance. Future events could cause us to conclude that impairment indicators exist and that assets associated with a particular operation are impaired. Evaluating impairment also requires us to estimate future operating results and cash flows, which also require judgment by management. Any resulting impairment loss could have a material adverse impact on our financial condition and results of operations. |
Cloud Computing Arrangements | Cloud Computing Arrangements We utilize cloud computing arrangements such as hosting arrangements which are service contracts, whereby we gain remote access to use software hosted by the vendor or another third party on an as-needed basis for a period of time in exchange for a subscription fee. Subscription fees are usually prepaid and recorded in operating expense over the related subscription period. Implementation costs for cloud computing arrangements are capitalized within Other current assets or Other assets if certain criteria are met and consist of internal and external costs directly attributable to developing and configuring cloud computing software for its intended use. Amortization of capitalized implementation costs is recorded as operating expense on a straight-line basis over the term of the cloud computing arrangement, which is the non-cancellable period of the agreement, together with periods covered by renewal options which we are reasonably certain to exercise. The unamortized implementation costs related to our cloud computing arrangements were $ 4.1 million and $ 1.1 million at September 30, 2022 and 2021, respectively. |
Restructuring and Other Costs | Restructuring and Other Costs Our restructuring and other costs include primarily items such as restructuring portions of our operations, acquisition costs, integration costs and divestiture costs. We have restructured portions of our operations from time to time, have current restructuring initiatives taking place, and it is likely that we will engage in future restructuring activities. When we close a facility, if necessary, we recognize a write-down to reduce the carrying value of related property, plant and equipment and lease ROU assets to their fair value and record charges for severance and other employee-related costs. We reduce the carrying value of the assets classified as held for sale to their estimated fair value less cost to sell. Any subsequent change in fair value less cost to sell prior to disposition is recognized as it is identified; however, no gain is recognized in excess of the cumulative loss previously recorded unless the actual selling price exceeds the original carrying value upon its ultimate sale. For facility closures, we also generally expect to record costs for equipment relocation, facility carrying costs and costs to terminate a lease or contract before the end of its term. Although specific circumstances vary, our strategy has generally been to consolidate our sales and operations into large well-equipped facilities that operate at high utilization rates and take advantage of available capacity created by operational excellence initiatives and/or further optimize our system following mergers and acquisitions or a changing business environment. Therefore, we generally transfer a substantial portion of each closed facility's production to our other facilities. We believe these actions have allowed us to more effectively manage our business. Identifying and calculating the cost to exit operations requires certain assumptions to be made, the most significant of which are anticipated future liabilities, including severance costs, contractual obligations, and the adjustments of property, plant and equipment and lease ROU assets to their fair value. We believe our estimates are reasonable, considering our knowledge of the industries we operate in, previous experience in exiting activities and valuations we may obtain from independent third parties. Although our estimates have been reasonably accurate in the past, significant judgment is required, and these estimates and assumptions may change as additional information becomes available and facts or circumstances change. See “ Note 4. Restructuring and Other Costs ” for additional information, including a description of the type of costs incurred. |
Business Combinations | Business Combinations From time to time, we may enter into business combinations. In accordance with ASC 805, “ Business Combinations ”, we generally recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition. We measure goodwill as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires us to make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities including those related to debt, pensions and other postretirement plans, uncertain tax positions, contingent consideration and contingencies. Significant estimates and assumptions include subjective and/or complex judgments regarding items such as discount rates, customer attrition rates, economic lives and other factors, including estimating future cash flows that we expect to generate from the acquired assets. The acquisition method of accounting also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required to adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on our financial condition and results of operations. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, we could record future impairment charges. In addition, we have estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If our estimates of the economic lives change, depreciation or amortization expenses could be increased or decreased, or the acquired asset could be impaired. |
Fair Value of Financial Instruments and Nonfinancial Assets and Liabilities | Fair Value of Financial Instruments and Nonfinancial Assets and Liabilities We estimate fair values in accordance with ASC 820 “Fair Value Measurement”. ASC 820 provides a framework for measuring fair value and expands disclosures required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and a hierarchy prioritizing the inputs to valuation techniques. ASC 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Additionally, ASC 820 defines levels within the hierarchy based on the availability of quoted prices for identical items in active markets, similar items in active or inactive markets and valuation techniques using observable and unobservable inputs. We incorporate credit valuation adjustments to reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in our fair value measurements. Financial instruments not recognized at fair value on a recurring or nonrecurring basis include cash and cash equivalents, accounts receivables, certain other current assets, short-term debt, accounts payable, certain other current liabilities and long-term debt. With the exception of long-term debt, the carrying amounts of these financial instruments approximate their fair values due to their short maturities. The fair values of our long-term debt are estimated using quoted market prices or are based on the discounted value of future cash flows. We disclose the fair value of long-term debt in “ Note 13. Debt ” and our pension and postretirement assets and liabilities in “ Note 5. Retirement Plans ” . We have, or from time to time may have, financial instruments recognized at fair value including supplemental retirement savings plans (“ Supplemental Plans ”) that are nonqualified deferred compensation plans pursuant to which assets are invested primarily in mutual funds, interest rate derivatives, commodity derivatives or other similar class of assets or liabilities, the fair value of which are not significant. We measure the fair value of our mutual fund investments based on quoted prices in active markets, and our derivative contracts, if any, based on discounted cash flows. We measure certain nonfinancial assets and nonfinancial liabilities at fair value on a nonrecurring basis. These assets and liabilities include equity method investments when they are deemed to be other-than-temporarily impaired, investments for which the fair value measurement alternative is elected, assets acquired and liabilities assumed when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a merger or an acquisition or in a nonmonetary exchange, property, plant and equipment, ROU assets related to operating leases, goodwill and other intangible assets that are written down to fair value when they are held for sale or determined to be impaired. See “ Note 4. Restructuring and Other Costs ” for impairments associated with restructuring activities. Given the nature of nonfinancial assets and liabilities, evaluating their fair value from the perspective of a market participant is inherently complex. Assumptions and estimates about future values can be affected by a variety of internal and external factors. Changes in these factors may require us to revise our estimates and could result in future impairment charges for goodwill and acquired intangible assets, or retroactively adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with business combinations. These adjustments could have a material impact on our financial condition and results of operations. We discuss fair values in more detail in “ Note 12. Fair Value ”. |
Derivatives | Derivatives We are exposed to interest rate risk, commodity price risk and foreign currency exchange risk. To manage these risks, from time to time and to varying degrees, we may enter into a variety of financial derivative transactions and certain physical commodity transactions that are determined to be derivatives. Interest rate swaps may be entered into to manage the interest rate risk associated with a portion of our outstanding debt. Interest rate swaps are either designated for accounting purposes as cash flow hedges of forecasted floating interest payments on variable rate debt or fair value hedges of fixed rate debt, or we may elect not to treat them as accounting hedges. Swaps or forward contracts on certain commodities may be entered into to manage the price risk associated with forecasted purchases or sales of those commodities. In addition, certain commodity financial derivative contracts and physical commodity contracts that are determined to be derivatives may not be designated as accounting hedges because either they do not meet the criteria for treatment as accounting hedges under ASC 815, “ Derivatives and Hedging ”, or we elect not to treat them as accounting hedges under ASC 815. Generally, we elect the normal purchase, normal sale scope exception for physical commodity contracts that are determined to be derivatives. We may also enter into forward contracts to manage our exposure to fluctuations in foreign currency rates with respect to transactions denominated in foreign currencies. These also can either be designated for accounting purposes as cash flow hedges or not so designated. Derivative financial instruments are not used for trading or other speculative purposes. Outstanding financial derivative instruments expose us to credit loss in the event of nonperformance by the counterparties to the derivative agreements. Our credit exposure related to these financial instruments is represented by the fair value of contracts reported as assets. We manage our exposure to counterparty credit risk through minimum credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We may enter into financial derivative contracts that may contain credit-risk-related contingent features which could result in a counterparty requesting immediate payment or demanding immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. For financial derivative instruments that are designated as a cash flow hedge for accounting purposes, the entire change in fair value of the financial derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction, and in the same period or periods during which the forecasted transaction affects earnings. For financial derivative instruments that are not designated as accounting hedges, the entire change in fair value of the financial instrument is reported immediately in current period earnings. We have at times entered into interest rate swap agreements that effectively modified our exposure to interest rate risk by converting a portion of our interest payments on floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. These agreements typically involved the receipt of floating rate amounts in exchange for fixed interest rate payments over the life of the agreements without an exchange of the underlying principal amount. At September 30, 2022 , the notional amount of foreign currency exchange contract derivative was 8.0 billion Mexican pesos ($ 389.9 million), with the fair value of $ 3.4 million presented within Other current assets. At September 30, 2021, the notional amount of foreign currency exchange contract derivative was $ 270.2 million. The fair value of this derivative instrument was not significant as of September 30, 2021. We did not designate our foreign currency exchange contract derivatives as accounting hedges. At September 30, 2022 , the notional amount of natural gas commodity derivatives was 18.3 million MMBtu, which are designated as cash flow hedges. The fair value of these derivatives was $ 12.0 million, which is presented within Other current liabilities. No natural gas commodity derivatives were outstanding at September 30, 2021. See “ Note 18. Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) ” for additional information regarding our foreign currency and natural gas commodity derivatives. |
Health Insurance | Health Insurance We are self-insured for the majority of our group health insurance costs. However, we seek to limit our health insurance costs by entering into certain stop loss insurance coverage. Due to mergers, acquisitions and other factors, we may have plans that do not include stop loss insurance. We calculate our group health insurance reserve on an undiscounted basis based on estimated reserve rates. We utilize claims lag data provided by our claims administrators to compute the required estimated reserve rate. We calculate our average monthly claims paid using the actual monthly payments during the trailing 12-month period. At that time, we also calculate our required reserve using the reserve rates discussed above. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our group health insurance costs. |
Workers Compensation | Workers’ Compensation We purchase large risk deductible workers’ compensation policies for the majority of our workers’ compensation liabilities that are subject to various deductibles to limit our exposure. We calculate our workers’ compensation reserves on an undiscounted basis based on estimated actuarially calculated development factors. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our workers' compensation costs. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amount and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. All deferred tax assets and liabilities are classified as noncurrent in our consolidated balance sheet . We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial operations and their associated valuation allowances, if any. In the event we were to determine that we would be able to realize or not realize our deferred income tax assets in the future in their net recorded amount, we would make an adjustment to the valuation allowance, which would reduce or increase the provision for income taxes, respectively. Certain provisions of ASC 740, “Income Taxes ” provide that a tax benefit from an uncertain tax position may be recognized when it is “more likely than not” that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. We use significant judgment in (i) determining whether a tax position, based solely on its technical merits, is “more likely than not” to be sustained upon examination and (ii) measuring the tax benefit as the largest amount of benefit that is “more likely than not” to be realized upon ultimate settlement. We do not record any benefit for the tax positions where we do not meet the “more likely than not” initial recognition threshold. Income tax positions must meet a “more likely than not” recognition threshold at the effective date to be recognized. We recognize interest and penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of operations. Resolution of the uncertain tax positions could have a material adverse effect on our cash flows or materially benefit our results of operations in future periods depending upon their ultimate resolution. On December 22, 2017, the U.S. enacted comprehensive tax legislation, commonly referred to as the Tax Act. As part of the enacted Tax Act, Global Intangible Low Taxed Income (“GILTI”) provisions were introduced that would impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. We have elected to treat any potential GILTI inclusions as a period cost during the year incurred. On August 16, 2022, the Inflation Reduction Act was signed into law, with tax provisions primarily focused on implementing a 15% minimum tax on global adjusted financial statement income and a 1% excise tax on share repurchases. While we are still evaluating the impact that the Inflation Reduction Act will have on our financial results, we do not believe the impact will be material. |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits We account for pension and other postretirement benefits in accordance with ASC 715, “ Compensation – Retirement Benefits ”. Accordingly, we recognize the funded status of our pension plans as assets or liabilities in our consolidated balance sheets. The funded status is the difference between our projected benefit obligations and fair value of plan assets. The determination of our obligation and expense for pension and other postretirement benefits is dependent on our selection of certain assumptions used by actuaries in calculating such amounts. We describe these assumptions in “ Note 5. Retirement Plans ”, which include, among others, the discount rate, expected long-term rates of return on plan assets and rates of increase in compensation levels. We defer actual results that differ from our assumptions, i.e., actuarial gains and losses, and amortize the difference over future periods. Therefore, these differences generally affect our recognized expense and funding requirements in future periods. Actuarial gains and losses occur when actual experience differs from the estimates used to determine the components of net periodic pension cost and when certain assumptions used to determine the fair value of the plan assets or projected benefit obligation are updated, such as but not limited to, changes in the discount rate, plan amendments, differences between actual and expected returns on plan assets, mortality assumptions and plan remeasurement. The amount of unrecognized actuarial gains and losses recognized in the current year’s operations is based on amortizing the unrecognized gains or losses for each plan that exceed the larger of 10% of the projected benefit obligation or the fair value of plan assets, also known as “the corridor”. The amount of unrecognized gain or loss that exceeds the corridor is amortized over the average future service of the plan participants or the average life expectancy of inactive plan participants for plans where all or almost all of the plan participants are inactive. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our pension and other postretirement benefit obligations and our future expense. |
Share-based Compensation | Share-Based Compensation We recognize expense for share-based compensation plans based on the estimated fair value of the related awards in accordance with ASC 718, “ Compensation – Stock Compensation ”. Pursuant to our incentive stock plans, we can grant options, restricted stock, restricted stock units and stock appreciation rights (“ SAR ” or “ SARs ”) to employees and our non-employee directors. The grants generally vest over a period of up to three years depending on the nature of the award, except for non-employee director grants, which typically vest over a period of up to one year . The majority of our awards are restricted stock units granted to employees and generally contain performance or market conditions that must be met in conjunction with a service requirement for the shares to vest, others contain only a service requirement. We charge compensation expense under the plan to earnings over each award’s individual vesting period. Forfeitures are estimated based on historical experience. In fiscal 2020, in connection with our WestRock Pandemic Action Plan we issued restricted stock units to the majority of our employees to replace their annual cash bonus. See “ Note 20. Share-Based Compensation ” for additional information. |
Asset Retirement Obligations | Asset Retirement Obligations We account for asset retirement obligations in accordance with ASC 410, “ Asset Retirement and Environmental Obligations ”. A liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists and the liability can be reasonably estimated. The liability is accreted over time and the asset is depreciated over the remaining life of the related asset. Upon settlement of the liability, we recognize a gain or loss for any difference between the settlement amount and the liability recorded. Asset retirement obligations with indeterminate settlement dates are not recorded until such time that a reasonable estimate may be made. Our asset retirement obligations consist primarily of landfill closure and post-closure costs at certain of our mills. At September 30, 2022 , we had recorded liabilities of $ 96.0 million, $ 79.6 million in Other long-term liabilities and $ 16.4 million in Other current liabilities. At September 30, 2021 , we had recorded $ 73.6 million, $ 73.1 million in Other long-term liabilities and the balance in Other current liabilities. |
Repair and Maintenance Costs | Repair and Maintenance Costs We expense routine repair and maintenance costs as we incur them. We defer certain expenses we incur during planned major maintenance activities and recognize the expenses ratably over the shorter of the estimated interval until the next major maintenance activity or the life of the deferred item. This maintenance is generally performed every 12 to 24 months and has a significant impact on our results of operations in the period performed primarily due to lost production during the maintenance period. Planned major maintenance costs deferred at September 30, 2022 and 2021 were $ 121.8 million and $ 110.7 million, respectively. The assets are recorded as Other assets on the consolidated balance sheets. |
Foreign Currency | Foreign Currency We translate the assets and liabilities of our foreign operations from their functional currency into U.S. dollars at the rate of exchange in effect as of the balance sheet date. We reflect the resulting translation adjustments in equity. We translate the revenues and expenses of our foreign operations at a daily average rate prevailing for each month during the fiscal year. We include gains or losses from foreign currency transactions, such as those resulting from the settlement of foreign receivables or payables, in the consolidated statements of operations. We recorded a loss on foreign currency transactions of $ 5.0 million and $ 0.7 million in fiscal 2022 and 2021, respectively, and a gain on foreign currency transactions of $ 6.6 million i n fiscal 2020. |
Environmental Costs Remediation Costs | Environmental Remediation Costs We accrue for losses associated with our environmental remediation obligations when it is probable that we have incurred a liability and the amount of the loss can be reasonably estimated. We generally recognize accruals for estimated losses from our environmental remediation obligations no later than completion of a remedial feasibility study and clear indication of remedial options. We adjust such accruals as further information develops or circumstances change. We recognize recoveries of our environmental remediation costs from other parties as assets when we deem their receipt probable. See “ Note 17. Commitments and Contingencies — Environmental. ” |
New Accounting Standards - Recently Adopted and Pending to be Adopted | New Accounting Standards — Adopted in fiscal 2022 In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ”. This ASU removes certain exceptions from recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also reduces complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022 for us) and interim periods within those fiscal years. We adopted the provisions of ASU 2019-12 beginning October 1, 2021 . The adoption of this ASU did not have a material impact on our consolidated financial statements. In July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments ”. This ASU requires lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses at lease commencement if they were classified as sales-type or direct financing leases. For lessors that had adopted ASC 842, " Leases " as of July 19, 2021, when the amendments were issued, the amendments can be applied either retrospectively or prospectively and are effective for annual periods beginning after December 15, 2021 (fiscal 2023 for us) and interim periods within those annual periods. Early adoption is permitted. We early adopted this ASU using the prospective transition approach beginning October 1, 2021 . The adoption of this ASU did not have a material impact on our consolidated financial statements. New Accounting Standards — Pending to be Adopted in Fiscal 2023 In November 2021, the FASB issued ASU 2021-10, “ Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance ”. This ASU aims to increase the transparency of government assistance through the annual disclosure of the types of assistance, an entity’s accounting for the assistance and the effect of the assistance on an entity’s financial statements. This ASU is effective for annual periods beginning after December 15, 2021 (fiscal 2023 for us), with early adoption permitted. The adoption of this ASU is not expected to have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ”. This ASU provides temporary optional expedients and exceptions for applying GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. In January 2021, the FASB issued ASU 2021-01, which adds implementation guidance to clarify certain optional expedients in Topic 848. The ASUs can be adopted after their respective issuance dates through December 31, 2022. We are in process of reviewing and updating our contracts to a new reference rate. We have been addressing the LIBOR transition in our applicable debt facilities and have completed the transition on all of our significant facilities. See “ Note 13. Debt ” for additional information on our recent credit facility changes. We expect to adopt the provisions of this optional guidance in fiscal 2023. The adoption of this ASU is not expected to have a material impact on our consolidated financial statements. |
New Accounting Standards - Recently Issued | New Accounting Standards — Recently Issued In September 2022, the FASB issued ASU 2022-04, “ Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations ”. This ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), except for the amendment on roll forward information which is effective for fiscal years beginning after December 15, 2023 (fiscal 2025 for us). We are evaluating the impact of this ASU. In June 2022, the FASB issued ASU 2022-03, “ Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ”. This ASU clarifies that contractual sale restrictions should not be considered in measuring the fair value of equity securities. This ASU is effective for fiscal years beginning after December 15, 2023 (fiscal 2025 for us), including interim periods therein, with early adoption permitted. We are evaluating the impact of this ASU. In March 2022, the FASB issued ASU 2022-01, “ Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method ”. This ASU expands and clarifies the portfolio layer method for fair value hedges of interest rate risk. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), including interim periods therein, with early adoption permitted. We are evaluating the impact of this ASU. In October 2021, the FASB issued ASU 2021-08, “ Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” . This ASU requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. This ASU is intended to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for us), including interim periods therein, with early adoption permitted. We are evaluating the impact of this ASU. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | The following table represents a summary of the changes in the reserve for allowance for doubtful accounts, returns and allowances and cash discounts for fiscal 2022, 2021 and 2020 (in millions): 2022 2021 2020 Balance at beginning of fiscal year $ 68.1 $ 66.3 $ 53.2 Reduction in sales and charges to costs and expenses 261.9 236.5 270.8 Deductions ( 263.7 ) ( 234.7 ) ( 257.7 ) Balance at end of fiscal year $ 66.3 $ 68.1 $ 66.3 |
Property, Plant and Equipment, Estimated Useful Lives | For financial reporting purposes, we provide depreciation and amortization primarily on a straight-line method generally over the estimated useful lives of the assets as follows: Buildings and building improvements 15 - 40 years Machinery and equipment 3 - 25 years Transportation equipment 3 - 8 years |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment) | The following tables summarize our disaggregated revenue by primary geographical markets for fiscal 2022, 2021 and 2020 (in millions): Year Ended September 30, 2022 Corrugated Packaging Consumer Packaging Global Paper Distribution Intersegment Sales Total U.S. $ 8,264.7 $ 2,870.9 $ 5,344.8 $ 1,238.3 $ ( 357.2 ) $ 17,361.5 Canada 578.8 510.0 227.7 16.1 ( 7.5 ) 1,325.1 Latin America 456.4 194.4 230.7 164.5 ( 0.4 ) 1,045.6 EMEA 7.7 1,079.9 63.2 — ( 0.3 ) 1,150.5 Asia Pacific — 310.0 63.8 — — 373.8 Total $ 9,307.6 $ 4,965.2 $ 5,930.2 $ 1,418.9 $ ( 365.4 ) $ 21,256.5 Year Ended September 30, 2021 Corrugated Packaging Consumer Packaging Global Paper Distribution Intersegment Sales Total U.S. $ 7,518.8 $ 2,463.7 $ 4,547.7 $ 1,105.9 $ ( 318.9 ) $ 15,317.2 Canada 519.3 473.0 205.2 19.7 ( 6.8 ) 1,210.4 Latin America 357.3 159.1 100.1 129.2 ( 0.3 ) 745.4 EMEA 5.1 1,038.2 62.7 — — 1,106.0 Asia Pacific — 299.9 67.3 — ( 0.1 ) 367.1 Total $ 8,400.5 $ 4,433.9 $ 4,983.0 $ 1,254.8 $ ( 326.1 ) $ 18,746.1 Year Ended September 30, 2020 Corrugated Packaging Consumer Packaging Global Paper Distribution Land and Development Intersegment Sales Total U.S. $ 7,054.6 $ 2,416.5 $ 4,300.4 $ 987.1 $ 18.9 $ ( 268.6 ) $ 14,508.9 Canada 452.6 436.0 222.3 17.3 — ( 3.5 ) 1,124.7 Latin America 275.1 120.3 118.0 98.0 — ( 0.3 ) 611.1 EMEA 7.9 939.6 66.5 — — — 1,014.0 Asia Pacific — 278.0 42.4 — — ( 0.3 ) 320.1 Total $ 7,790.2 $ 4,190.4 $ 4,749.6 $ 1,102.4 $ 18.9 $ ( 272.7 ) $ 17,578.8 |
Summary of Opening and Closing Balances of Contract Assets and Contract Liabilities | The opening and closing balances of our contract assets and contract liabilities are as follows. Contract assets and contract liabilities are reported within Other current assets and Other current liabilities, respectively, on the consolidated balance sheets (in millions). Contract Assets Contract Liabilities Beginning balance - October 1, 2021 $ 199.1 $ 12.8 Ending balance - September 30, 2022 244.0 13.9 Increase $ 44.9 $ 1.1 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Restructuring And Other Costs [Abstract] | |
Schedule of Restructuring and Other Costs | The following table summarizes our Restructuring and other costs for fiscal 2022, 2021 and 2020 (in millions): 2022 2021 2020 Restructuring $ 392.1 $ 28.5 $ 93.7 Other 9.5 3.0 19.0 Restructuring and Other Costs $ 401.6 $ 31.5 $ 112.7 |
Schedule of Restructuring Charges Related to Active Restructuring Initiatives | The following table presents a summary of restructuring charges related to active restructuring initiatives that we incurred during the last three fiscal years, the cumulative recorded amount since we started the initiatives, and our estimate of the total we expect to incur (in millions): 2022 2021 2020 Cumulative Total Corrugated Packaging PP&E and related costs $ 0.3 $ 2.6 $ 0.4 $ 3.9 $ 3.9 Severance and other employee costs 0.5 4.7 7.5 29.2 29.2 Other restructuring costs 2.6 2.9 5.2 12.8 19.2 Restructuring total $ 3.4 $ 10.2 $ 13.1 $ 45.9 $ 52.3 Consumer Packaging PP&E and related costs $ — $ 0.5 $ 1.0 $ 3.3 $ 3.3 Severance and other employee costs 6.2 9.7 19.4 36.5 36.5 Other restructuring costs 2.7 3.1 4.1 13.1 13.1 Restructuring total $ 8.9 $ 13.3 $ 24.5 $ 52.9 $ 52.9 Global Paper PP&E and related costs $ 349.3 $ 0.2 $ 24.3 $ 400.6 $ 400.6 Severance and other employee costs 11.2 — 1.4 17.8 20.0 Other restructuring costs 8.0 0.1 5.5 28.9 115.0 Restructuring total $ 368.5 $ 0.3 $ 31.2 $ 447.3 $ 535.6 Distribution Severance and other employee costs $ — $ — $ 0.2 $ 0.2 $ 0.2 Other restructuring costs 1.0 — — 1.0 1.0 Restructuring total $ 1.0 $ — $ 0.2 $ 1.2 $ 1.2 Land and Development Severance and other employee costs $ — $ — $ — $ 0.1 $ 0.1 Other restructuring costs — — 2.0 2.0 2.0 Restructuring total $ — $ — $ 2.0 $ 2.1 $ 2.1 Corporate PP&E and related costs $ 2.0 $ 8.8 $ — $ 10.8 $ 10.8 Severance and other employee costs 3.0 0.9 21.1 62.5 62.5 Other restructuring costs 5.3 ( 5.0 ) 1.6 4.5 4.5 Restructuring total $ 10.3 $ 4.7 $ 22.7 $ 77.8 $ 77.8 Total PP&E and related costs $ 351.6 $ 12.1 $ 25.7 $ 418.6 $ 418.6 Severance and other employee costs 20.9 15.3 49.6 146.3 148.5 Other restructuring costs 19.6 1.1 18.4 62.3 154.8 Restructuring total $ 392.1 $ 28.5 $ 93.7 $ 627.2 $ 721.9 |
Schedule of Acquisition, Integration and Divestiture Costs | The following table presents acquisition, integration and divestiture costs that we incurred during the last three fiscal years (in millions): 2022 2021 2020 Acquisition costs $ 4.4 $ 0.5 $ 0.2 Integration costs 0.7 1.7 18.7 Divestiture costs 4.4 0.8 0.1 Other total $ 9.5 $ 3.0 $ 19.0 |
Schedule of Changes in Restructuring Accrual and Reconciliation of Accrual Charges | The following table summarizes the changes in the restructuring accrual, which is primarily composed of accrued severance and other employee costs, and a reconciliation of the restructuring accrual charges to the line item “ Restructuring and other costs ” on our consolidated statements of operations for the last three fiscal years (in millions): 2022 2021 2020 Accrual at beginning of fiscal year $ 13.4 $ 17.2 $ 32.3 Additional accruals 33.4 17.4 51.3 Payments ( 15.9 ) ( 17.2 ) ( 56.6 ) Adjustment to accruals ( 5.6 ) ( 2.1 ) ( 6.2 ) Foreign currency rate changes and other ( 0.1 ) ( 1.9 ) ( 3.6 ) Accrual at end of fiscal year $ 25.2 $ 13.4 $ 17.2 Reconciliation of accruals and charges to restructuring and other costs (in millions): 2022 2021 2020 Additional accruals and adjustments to accruals $ 27.8 $ 15.3 $ 45.1 PP&E and related costs 351.6 12.1 25.7 Severance and other employee costs 0.5 0.3 1.6 Acquisition costs 4.4 0.5 0.2 Integration costs 0.7 1.7 18.7 Divestiture costs 4.4 0.8 0.1 Other restructuring costs 12.2 0.8 21.3 Total restructuring and other costs, net $ 401.6 $ 31.5 $ 112.7 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Plans [Abstract] | |
Schedule of Allocation of Plan Assets | Our target asset allocations by asset category at September 30 were as follows: Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Equity investments 18 % 23 % 19 % 21 % Fixed income investments 73 % 73 % 73 % 74 % Short-term investments 1 % 1 % 1 % 1 % Other investments 8 % 3 % 7 % 4 % Total 100 % 100 % 100 % 100 % Our asset allocations by asset category at September 30 were as follows: Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Equity investments 18 % 21 % 21 % 21 % Fixed income investments 70 % 73 % 71 % 72 % Short-term investments 4 % 2 % 3 % 2 % Other investments 8 % 4 % 5 % 5 % Total 100 % 100 % 100 % 100 % |
Schedule of Weighted-Average Assumptions Used | The weighted average assumptions used to measure the benefit plan obligations at September 30, were: Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Discount rate 5.63 % 5.12 % 2.99 % 2.63 % Interest crediting rate 3.08 % N/A 3.48 % N/A Rate of compensation increase 2.50 % 2.97 % 2.50 % 2.65 % Weighted-average assumptions used in the calculation of benefit plan expense for fiscal years ended: Pension Plans 2022 2021 2020 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 2.99 % 2.63 % 3.01 % 2.16 % 3.35 % 2.42 % Interest crediting rate 3.48 % N/A 3.47 % N/A 4.22 % N/A Rate of compensation increase 2.50 % 2.65 % 2.50 % 2.68 % 3.00 % 2.65 % Expected long-term rate of return on 5.75 % 3.81 % 6.00 % 3.73 % 6.25 % 4.26 % The weighted average assumptions used to measure the benefit plan obligations at September 30 were: Postretirement plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Discount rate 5.57 % 7.56 % 2.98 % 6.45 % Weighted-average assumptions used in the calculation of benefit plan expense for fiscal years ended: Postretirement Plans 2022 2021 2020 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 2.98 % 6.45 % 3.00 % 4.84 % 3.34 % 5.64 % Rate of compensation increase N/A N/A N/A N/A N/A N/A |
Schedule of Changes in Benefit Obligations | The following table shows the changes in benefit obligation, plan assets and funded status for the years ended September 30 (in millions): Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Change in projected benefit obligation: Benefit obligation at beginning of fiscal year $ 5,239.1 $ 1,438.5 $ 5,264.5 $ 1,471.5 Service cost 40.8 7.0 42.5 8.6 Interest cost 152.1 36.1 154.6 32.7 Amendments 0.3 — 5.0 0.6 Actuarial (gain) loss ( 1,317.1 ) ( 340.1 ) 20.7 ( 66.1 ) Plan participant contributions — 1.7 — 1.9 Benefits paid ( 246.9 ) ( 77.6 ) ( 248.2 ) ( 78.0 ) Curtailments — 0.2 — — Settlements ( 1.8 ) ( 2.4 ) — ( 1.4 ) Foreign currency rate changes — ( 128.1 ) — 68.7 Benefit obligation at end of fiscal year $ 3,866.5 $ 935.3 $ 5,239.1 $ 1,438.5 Change in plan assets: Fair value of plan assets at beginning of fiscal year $ 5,627.0 $ 1,455.7 $ 5,369.7 $ 1,418.0 Actual (loss) gain on plan assets ( 1,281.4 ) ( 322.1 ) 491.9 38.7 Employer contributions 13.0 8.2 13.6 9.6 Plan participant contributions — 1.7 — 1.9 Benefits paid ( 246.9 ) ( 77.6 ) ( 248.2 ) ( 78.0 ) Settlements ( 1.8 ) ( 2.5 ) — ( 1.4 ) Foreign currency rate changes — ( 133.7 ) — 66.9 Fair value of plan assets at end of fiscal year $ 4,109.9 $ 929.7 $ 5,627.0 $ 1,455.7 Funded (unfunded) status $ 243.4 $ ( 5.6 ) $ 387.9 $ 17.2 Amounts recognized in the Consolidated Balance Sheets: Prepaid pension asset $ 379.1 $ 61.2 $ 566.8 $ 107.5 Other current liabilities ( 11.7 ) ( 1.4 ) ( 13.5 ) ( 1.0 ) Pension liabilities, net of current portion ( 124.0 ) ( 65.4 ) ( 165.4 ) ( 89.3 ) Over (under) funded status at end of fiscal year $ 243.4 $ ( 5.6 ) $ 387.9 $ 17.2 The following table shows the changes in benefit obligation, plan assets and funded status for the fiscal years ended September 30 (in millions): Postretirement Plans 2022 2021 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Change in projected benefit obligation: Benefit obligation at beginning of fiscal year $ 86.4 $ 58.3 $ 93.6 $ 62.5 Service cost 0.6 0.4 0.6 0.6 Interest cost 2.6 3.8 2.8 3.1 Actuarial gain ( 16.3 ) ( 9.8 ) ( 6.1 ) ( 8.1 ) Benefits paid ( 4.8 ) ( 2.8 ) ( 4.5 ) ( 2.8 ) Foreign currency rate changes — ( 1.6 ) — 3.0 Benefit obligation at end of fiscal year $ 68.5 $ 48.3 $ 86.4 $ 58.3 Change in plan assets: Fair value of plan assets at beginning of fiscal year $ — $ — $ — $ — Employer contributions 4.8 2.8 4.5 2.8 Benefits paid ( 4.8 ) ( 2.8 ) ( 4.5 ) ( 2.8 ) Fair value of plan assets at end of fiscal year $ — $ — $ — $ — Underfunded Status $ ( 68.5 ) $ ( 48.3 ) $ ( 86.4 ) $ ( 58.3 ) Amounts recognized in the Consolidated Balance Sheets: Other current liabilities $ ( 8.7 ) $ ( 2.7 ) $ ( 8.2 ) $ ( 2.8 ) Postretirement benefit liabilities, net of current portion ( 59.8 ) ( 45.6 ) ( 78.2 ) ( 55.5 ) Underfunded status at end of fiscal year $ ( 68.5 ) $ ( 48.3 ) $ ( 86.4 ) $ ( 58.3 ) |
Schedule of Accumulated and Projected Benefit Obligations | The pre-tax amounts in accumulated other comprehensive loss at September 30 not yet recognized as components of net periodic pension cost, including noncontrolling interest, consist of (in millions): Pension Plans 2022 2021 U.S. Plans Non-U.S. U.S. Plans Non-U.S. Net actuarial loss $ 849.8 $ 155.6 $ 573.1 $ 125.9 Prior service cost 34.6 1.8 42.4 2.6 Total accumulated other comprehensive loss $ 884.4 $ 157.4 $ 615.5 $ 128.5 The pre-tax amounts in accumulated other comprehensive loss at September 30 not yet recognized as components of net periodic postretirement cost, including noncontrolling interest, consist of (in millions): Postretirement Plans 2022 2021 U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Net actuarial (gain) loss $ ( 32.2 ) $ ( 4.8 ) $ ( 16.1 ) $ 4.8 Prior service (credit) cost ( 2.3 ) 1.0 ( 3.2 ) 1.1 Total accumulated other comprehensive (income) loss $ ( 34.5 ) $ ( 3.8 ) $ ( 19.3 ) $ 5.9 |
Schedule of Amounts Recognized in Other Comprehensive Loss (Income) | The pre-tax amounts recognized in other comprehensive loss (income), including noncontrolling interest, are as follows at September 30 (in millions): Pension Plans 2022 2021 2020 Net actuarial loss (gain) arising during period $ 315.3 $ ( 208.0 ) $ ( 26.2 ) Amortization and settlement recognition of net actuarial loss ( 8.9 ) ( 34.5 ) ( 48.2 ) Prior service cost arising during period 0.2 5.6 25.0 Amortization of prior service cost ( 8.9 ) ( 8.4 ) ( 7.8 ) Net other comprehensive loss (income) recognized $ 297.7 $ ( 245.3 ) $ ( 57.2 ) The pre-tax amounts recognized in other comprehensive loss (income), including noncontrolling interest, are as follows at September 30 (in millions): Postretirement Plans 2022 2021 2020 Net actuarial gain arising during period $ ( 26.2 ) $ ( 14.2 ) $ ( 8.4 ) Amortization and settlement recognition of net actuarial 0.5 0.6 ( 0.1 ) Prior service cost arising during period — — 1.9 Amortization or curtailment recognition of prior service credit 0.7 2.4 2.7 Net other comprehensive income recognized $ ( 25.0 ) $ ( 11.2 ) $ ( 3.9 ) |
Summary of Components of Net Pension Income and Summary of Components of Postretirement Benefit Cost | The net periodic pension income recognized in the consolidated statements of operations is comprised of the following for fiscal years ended (in millions): Pension Plans 2022 2021 2020 Service cost $ 47.8 $ 51.1 $ 52.6 Interest cost 188.2 187.3 198.6 Expected return on plan assets ( 368.6 ) ( 368.1 ) ( 362.3 ) Amortization of net actuarial loss 8.8 34.2 46.8 Amortization of prior service cost 8.4 8.4 7.5 Curtailment loss 0.5 — 0.4 Settlement loss 0.1 0.4 1.4 Company defined benefit plan income ( 114.8 ) ( 86.7 ) ( 55.0 ) Multiemployer and other plans 1.5 1.6 2.0 Net pension income $ ( 113.3 ) $ ( 85.1 ) $ ( 53.0 ) The net periodic postretirement cost recognized in the consolidated statements of operations is comprised of the following for fiscal years ended (in millions): Postretirement Plans 2022 2021 2020 Service cost $ 1.0 $ 1.2 $ 1.3 Interest cost 6.4 5.9 6.9 Amortization of net actuarial (gain) loss ( 0.5 ) ( 0.6 ) 0.1 Amortization of prior service credit ( 0.7 ) ( 2.4 ) ( 2.7 ) Net postretirement cost $ 6.2 $ 4.1 $ 5.6 |
Schedule of Estimated Benefit Payments | Our projected estimated benefit payments (unaudited), which reflect expected future service, as appropriate, are as follows (in millions): Pension Plans U.S. Plans Non-U.S. Plans Fiscal 2023 $ 275.9 $ 90.9 Fiscal 2024 $ 279.9 $ 68.8 Fiscal 2025 $ 287.0 $ 68.7 Fiscal 2026 $ 290.0 $ 68.3 Fiscal 2027 $ 281.8 $ 68.2 Fiscal Years 2028 – 2032 $ 1,436.1 $ 338.0 Our projected estimated benefit payments (unaudited), which reflect expected future service, as appropriate, are as follows (in millions): Postretirement Plans U.S. Plans Non-U.S. Plans Fiscal 2023 $ 8.7 $ 2.7 Fiscal 2024 $ 7.5 $ 2.8 Fiscal 2025 $ 6.9 $ 2.9 Fiscal 2026 $ 6.5 $ 3.0 Fiscal 2027 $ 6.1 $ 3.1 Fiscal Years 2028 – 2032 $ 26.6 $ 17.6 |
Summary of Pension Plan Assets Measured at Fair Value on Recurring Basis | The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2022 (in millions): Total Quoted Prices Significant Equity securities: U.S. equities (1) $ 150.7 $ 150.7 $ — Non-U.S. equities (1) 85.9 85.9 — Fixed income securities: U.S. government securities (2) 164.3 — 164.3 Non-U.S. government securities (3) 74.5 — 74.5 U.S. corporate bonds (3) 2,173.7 95.4 2,078.3 Non-U.S. corporate bonds (3) 545.0 — 545.0 Other fixed income (4) 223.1 — 223.1 Short-term investments (5) 181.9 181.9 — Benefit plan assets measured in the fair value hierarchy $ 3,599.1 $ 513.9 $ 3,085.2 Assets measured at NAV (6) 1,440.5 Total benefit plan assets $ 5,039.6 The following table summarizes our pension plan assets measured at fair value on a recurring basis (at least annually) as of September 30, 2021 (in millions): Total Quoted Prices Significant Equity securities: U.S. equities (1) $ 275.1 $ 275.1 $ — Non-U.S. equities (1) 9.4 9.4 — Fixed income securities: U.S. government securities (2) 292.4 — 292.4 Non-U.S. government securities (3) 113.2 — 113.2 U.S. corporate bonds (3) 2,987.8 137.6 2,850.2 Non-U.S. corporate bonds (3) 511.1 — 511.1 Other fixed income (4) 435.5 — 435.5 Short-term investments (5) 195.5 195.5 — Benefit plan assets measured in the fair value hierarchy $ 4,820.0 $ 617.6 $ 4,202.4 Assets measured at NAV (6) 2,262.7 Total benefit plan assets $ 7,082.7 (1) Equity securities are comprised of the following investment types: (i) common stock, (ii) preferred stock, and (iii) equity exchange traded funds. Level 1 investments in common and preferred stocks and exchange traded funds are valued using quoted market prices multiplied by the number of shares owned. (2) U.S. government securities include treasury and agency debt. These investments are valued using broker quotes in an active market. (3) The level 1 non-U.S. government securities investment is an exchange cleared swap valued using quoted market prices. The level 1 U.S. corporate bonds category is primarily comprised of U.S. dollar denominated investment grade securities and valued using quoted market prices. Level 2 investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data. (4) Other fixed income is comprised of municipal and asset-backed securities. Investments are valued utilizing a market approach that includes various valuation techniques and sources, such as broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads and/or other applicable reference data. (5) Short-term investments are valued at $ 1.00 /unit, which approximates fair value. Amounts are generally invested in interest-bearing accounts. (6) Investments that are measured at net asset value (“ NAV ”) (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. |
Summary of Assets Measured at Fair Value Based on NAV Per Share | The following table summarizes assets measured at fair value based on NAV per share as a practical expedient as of September 30, 2022 and 2021 (in millions): Fair value Redemption Redemption Unfunded September 30, 2022 Hedge funds (1) $ 26.4 Monthly Up to 30 days $ — Commingled funds, private equity, private real (2) 1,031.9 Monthly Up to 60 days 199.7 Fixed income and fixed income related (3) 382.2 Monthly Up to 10 days — $ 1,440.5 $ 199.7 September 30, 2021 Hedge funds (1) $ 38.9 Monthly Up to 30 days $ — Commingled funds, private equity, private real (2) 1,498.2 Monthly Up to 60 days 171.7 Fixed income and fixed income related (3) 725.6 Monthly Up to 10 days — $ 2,262.7 $ 171.7 (1) Hedge fund investments are primarily made through shares of limited partnerships or similar structures. Hedge funds are typically valued monthly by third-party administrators that have been appointed by the funds’ general partners. (2) Commingled fund investments are valued at the NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques. (3) Fixed income and fixed income related instruments consist of commingled debt funds, which are valued at their NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques. |
Schedule of Health Care Cost Trend Rates | The assumed health care cost trend rates used in measuring the accumulated postretirement benefit obligation (“ APBO ”) are as follows at September 30, 2022: U.S. Plans Health care cost trend rate assumed for next year 4.90 % Rate to which the cost trend rate is assumed to decline (the ultimate 4.00 % Year the rate reaches the ultimate trend rate 2047 Non-U.S. Plans Health care cost trend rate assumed for next year 5.68 % Rate to which the cost trend rate is assumed to decline (the ultimate 5.68 % Year the rate reaches the ultimate trend rate 2022 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | The components of income (loss) before income taxes are as follows (in millions): Year Ended September 30, 2022 2021 2020 United States $ 860.4 $ 822.4 $ ( 440.7 ) Foreign 358.4 263.5 ( 81.9 ) Income (loss) before income taxes $ 1,218.8 $ 1,085.9 $ ( 522.6 ) |
Schedule of Components of Income Tax Expense | Income tax expense consists of the following components (in millions): Year Ended September 30, 2022 2021 2020 Current income taxes: Federal $ 205.2 $ 171.2 $ 31.6 State 44.9 27.2 23.5 Foreign 116.1 78.4 66.8 Total current expense 366.2 276.8 121.9 Deferred income taxes: Federal ( 67.3 ) ( 39.0 ) 42.4 State ( 16.2 ) ( 10.2 ) 6.2 Foreign ( 13.1 ) 15.8 ( 7.0 ) Total deferred (benefit) expense ( 96.6 ) ( 33.4 ) 41.6 Total income tax expense $ 269.6 $ 243.4 $ 163.5 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between the statutory federal income tax rate and our effective income tax rate are as follows: Year Ended September 30, 2022 2021 2020 (1) Statutory federal tax rate 21.0 % 21.0 % 21.0 % Foreign rate differential 2.1 0.9 ( 1.1 ) Adjustment and resolution of federal, state and foreign tax ( 0.4 ) 0.1 2.7 State taxes, net of federal benefit 1.6 2.0 ( 0.3 ) Excess tax benefit related to stock compensation 0.1 0.2 ( 0.5 ) Research and development and other tax credits, net of ( 1.2 ) ( 0.5 ) 3.7 (Loss) income attributable to noncontrolling interest ( 0.1 ) 0.1 0.1 Change in valuation allowance 0.7 2.8 ( 4.1 ) Goodwill impairment — — ( 51.2 ) Nontaxable increased cash surrender value — ( 1.1 ) 1.3 Withholding taxes 0.5 0.2 ( 0.7 ) Foreign derived intangible income ( 1.0 ) ( 1.2 ) 1.3 Deferred rate change ( 0.6 ) ( 1.0 ) ( 1.8 ) Brazilian net worth deduction ( 1.1 ) ( 0.7 ) 1.7 Other, net 0.5 ( 0.4 ) ( 3.4 ) Effective tax rate 22.1 % 22.4 % ( 31.3 )% (1) The negative tax rate for fiscal year 2020 is the result of applying total income tax expense to the loss before income taxes. The signs within the table are consequently the opposite compared to fiscal 2022 and 2021. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to deferred income tax assets and liabilities consist of the following (in millions): September 30, 2022 2021 Deferred income tax assets: Accruals and allowances $ — $ 6.7 Employee related accruals and allowances 107.6 119.0 State net operating loss carryforwards, net of federal benefit 43.6 57.5 State credit carryforwards, net of federal benefit 89.7 84.9 Federal and foreign net operating loss carryforwards 165.8 193.6 Restricted stock and options 26.7 30.2 Lease liabilities 177.4 177.1 Other 44.6 42.1 Total 655.4 711.1 Deferred income tax liabilities: Accruals and allowances 9.0 — Property, plant and equipment 1,669.5 1,805.2 Deductible intangibles and goodwill 724.1 796.6 Inventory reserves 261.4 243.5 Deferred gain 272.8 272.8 Basis difference in joint ventures 35.9 32.9 Pension 2.7 36.3 Right-of-use assets 166.1 164.9 Total 3,141.5 3,352.2 Valuation allowances 248.8 277.5 Net deferred income tax liability $ 2,734.9 $ 2,918.6 |
Location Of Deferred Taxes In Balance Sheet | Deferred taxes are recorded as follows in the consolidated balance sheets (in millions): September 30, 2022 2021 Long-term deferred tax asset (1) $ 27.0 $ 25.8 Long-term deferred tax liability 2,761.9 2,944.4 Net deferred income tax liability $ 2,734.9 $ 2,918.6 (1) The long-term deferred tax asset is presented in Other assets on the consolidated balance sheets. |
Summary of Valuation Allowance | The following table represents a summary of the valuation allowances against deferred tax assets for fiscal 2022, 2021 and 2020 (in millions): 2022 2021 2020 Balance at beginning of fiscal year $ 277.5 $ 257.5 $ 218.0 Increases 12.3 22.2 46.2 Reductions ( 41.0 ) ( 2.2 ) ( 6.7 ) Balance at end of fiscal year $ 248.8 $ 277.5 $ 257.5 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions): 2022 2021 2020 Balance at beginning of fiscal year $ 199.5 $ 206.7 $ 224.3 Additions for tax positions taken in current year (1) 1.8 2.7 5.0 Additions for tax positions taken in prior fiscal years 27.6 10.8 11.7 Reductions for tax positions taken in prior fiscal years (1) — — ( 16.7 ) Reductions due to settlement ( 0.8 ) — — (Reductions) additions for currency translation adjustments ( 1.1 ) 1.5 ( 8.8 ) Reductions as a result of a lapse of the applicable statute of ( 31.5 ) ( 22.2 ) ( 8.8 ) Balance at end of fiscal year $ 195.5 $ 199.5 $ 206.7 (1) R eductions taken in fiscal 2020 include primarily positions taken related to foreign subsidiaries. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers, Segment Income and Long-Lived Assets, by Geographical Areas | Some of our operations are located in locations such as Canada, Latin America, EMEA and Asia Pacific. The table below reflects financial data of our foreign operations for each of the past three fiscal years, some of which were transacted in U.S. dollars (in millions): Years Ended September 30, 2022 2021 2020 Net sales (unaffiliated customers): U.S. $ 17,361.5 $ 15,317.2 $ 14,508.9 Canada 1,325.1 1,210.4 1,124.7 Latin America 1,045.6 745.4 611.1 EMEA 1,150.5 1,106.0 1,014.0 Asia Pacific 373.8 367.1 320.1 Total $ 21,256.5 $ 18,746.1 $ 17,578.8 Years Ended September 30, 2022 2021 2020 Long-lived assets: U.S. $ 9,278.2 $ 9,654.6 $ 9,962.5 Canada 391.4 413.0 382.1 Latin America 719.0 725.8 639.9 EMEA 320.4 364.9 362.8 Asia Pacific 72.0 87.8 90.2 Total $ 10,781.0 $ 11,246.1 $ 11,437.5 |
Certain Financial Data for Segments | The following tables show selected financial data for our segments (in millions): Years Ended September 30, 2022 2021 2020 Net sales (aggregate): Corrugated Packaging $ 9,307.6 $ 8,400.5 $ 7,790.2 Consumer Packaging 4,965.2 4,433.9 4,190.4 Global Paper 5,930.2 4,983.0 4,749.6 Distribution 1,418.9 1,254.8 1,102.4 Land and Development — — 18.9 Total $ 21,621.9 $ 19,072.2 $ 17,851.5 Less net sales (intersegment): Corrugated Packaging $ 328.0 $ 305.3 $ 250.0 Consumer Packaging 27.8 20.3 20.2 Distribution 9.6 0.5 2.5 Total $ 365.4 $ 326.1 $ 272.7 Net sales (unaffiliated customers): Corrugated Packaging $ 8,979.6 $ 8,095.2 $ 7,540.2 Consumer Packaging 4,937.4 4,413.6 4,170.2 Global Paper 5,930.2 4,983.0 4,749.6 Distribution 1,409.3 1,254.3 1,099.9 Land and Development — — 18.9 Total $ 21,256.5 $ 18,746.1 $ 17,578.8 Adjusted EBITDA: Corrugated Packaging $ 1,386.7 $ 1,394.0 $ 1,474.2 Consumer Packaging 829.2 720.8 660.7 Global Paper 1,246.4 883.7 701.9 Distribution 79.7 68.8 48.7 Total 3,542.0 3,067.3 2,885.5 Depreciation, depletion and amortization ( 1,488.6 ) ( 1,460.0 ) ( 1,487.0 ) Gain on sale of certain closed facilities 18.6 0.9 15.6 Multiemployer pension withdrawal (expense) income ( 0.2 ) 2.9 1.1 Mineral rights impairment ( 26.0 ) — — Restructuring and other costs ( 401.6 ) ( 31.5 ) ( 112.7 ) Goodwill impairment — — ( 1,333.2 ) Non-allocated expenses ( 82.6 ) ( 68.1 ) ( 73.3 ) Interest expense, net ( 318.8 ) ( 372.3 ) ( 393.5 ) Loss on extinguishment of debt ( 8.5 ) ( 9.7 ) ( 1.5 ) Other (expense) income, net ( 11.0 ) 10.9 9.5 Other adjustments ( 4.5 ) ( 54.5 ) ( 33.1 ) Income (loss) before income taxes $ 1,218.8 $ 1,085.9 $ ( 522.6 ) Years Ended September 30, 2022 2021 2020 Depreciation, depletion and amortization: Corrugated Packaging $ 683.0 $ 674.5 $ 674.8 Consumer Packaging 349.5 352.2 345.4 Global Paper 425.1 405.9 439.1 Distribution 27.3 23.6 23.5 Corporate 3.7 3.8 4.2 Total $ 1,488.6 $ 1,460.0 $ 1,487.0 Other adjustments: Corrugated Packaging $ ( 4.8 ) $ 13.3 $ 6.3 Consumer Packaging 7.7 11.7 16.3 Global Paper ( 0.6 ) 3.3 11.9 Distribution — 0.6 — Land and Development — — ( 1.4 ) Corporate 2.2 25.6 — Total $ 4.5 $ 54.5 $ 33.1 Equity in income (loss) of unconsolidated entities: Corrugated Packaging $ 70.3 $ 36.7 $ 12.6 Consumer Packaging 3.4 4.0 2.8 Global Paper ( 0.8 ) 0.2 0.4 Total $ 72.9 $ 40.9 $ 15.8 The following table shows selected financial data for our segments (in millions): Years Ended September 30, 2022 2021 2020 Assets: Corrugated Packaging $ 11,382.5 $ 11,557.6 $ 11,623.4 Consumer Packaging 6,704.5 6,757.3 6,535.8 Global Paper 7,039.2 7,527.6 7,549.5 Distribution 863.0 800.1 718.9 Assets held for sale 34.4 10.9 7.0 Corporate 2,381.9 2,600.8 2,345.1 Total $ 28,405.5 $ 29,254.3 $ 28,779.7 Intangibles, net: Corrugated Packaging $ 648.4 $ 765.9 $ 889.1 Consumer Packaging 1,523.5 1,719.2 1,857.6 Global Paper 612.6 677.7 744.6 Distribution 136.1 156.0 175.9 Total $ 2,920.6 $ 3,318.8 $ 3,667.2 Capital expenditures: Corrugated Packaging $ 370.4 $ 331.4 $ 389.9 Consumer Packaging 202.1 192.7 140.2 Global Paper 238.6 259.4 417.8 Distribution 6.1 1.3 0.3 Corporate 45.4 30.7 29.9 Total $ 862.6 $ 815.5 $ 978.1 Equity method investments: Corrugated Packaging $ 479.3 $ 434.4 $ 414.2 Consumer Packaging 0.5 17.7 13.7 Global Paper 0.5 0.8 1.3 Corporate 0.1 0.4 0.4 Total $ 480.4 $ 453.3 $ 429.6 |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the fiscal years ended September 30, 2022, 2021 and 2020 are as follows (in millions): Legacy Reportable Segments New Reportable Segments Corrugated Consumer Corrugated Consumer Global Paper Distribution Total Balance as of Sep. 30, 2019 Goodwill $ 3,695.1 $ 3,633.3 $ — $ — $ — $ — $ 7,328.4 Accumulated impairment ( 0.1 ) ( 42.7 ) — — — — ( 42.8 ) 3,695.0 3,590.6 — — — — 7,285.6 Goodwill impairment — ( 1,333.2 ) — — — — ( 1,333.2 ) Goodwill disposed of — ( 0.3 ) — — — — ( 0.3 ) Purchase price allocation 14.3 ( 0.6 ) — — — — 13.7 Translation adjustments ( 35.8 ) 32.2 — — — — ( 3.6 ) Balance as of Sep. 30, 2020 Goodwill 3,673.6 3,664.6 — — — — 7,338.2 Accumulated impairment ( 0.1 ) ( 1,375.9 ) — — — — ( 1,376.0 ) 3,673.5 2,288.7 — — — — 5,962.2 Goodwill disposed of ( 16.4 ) — — — — — ( 16.4 ) Translation adjustments 6.2 7.2 — — — — 13.4 Balance as of Sep. 30, 2021 Goodwill 3,663.4 3,671.8 — — — — 7,335.2 Accumulated impairment ( 0.1 ) ( 1,375.9 ) — — — — ( 1,376.0 ) 3,663.3 2,295.9 — — — — 5,959.2 Segment recasting (1) ( 3,663.3 ) ( 2,295.9 ) 2,834.8 1,603.3 1,382.0 139.1 — Goodwill acquired — — 3.2 — — — 3.2 Translation adjustments — — ( 35.2 ) ( 14.9 ) ( 15.5 ) ( 1.6 ) ( 67.2 ) Balance as of Sep. 30, 2022 Goodwill $ — $ — $ 2,802.8 $ 1,588.4 $ 1,366.5 $ 137.5 $ 5,895.2 (1) Represents the reallocation of goodwill as a result of our October 1, 2021 segment change. |
Interest (Tables)
Interest (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Interest Income (Expense), Net [Abstract] | |
Summary of Components of Interest Expense, Net | The components of interest expense, net is as follows (in millions): Years Ended September 30, 2022 2021 2020 Interest expense $ ( 375.6 ) $ ( 418.9 ) $ ( 465.5 ) Interest income 56.8 46.6 72.0 Interest expense, net $ ( 318.8 ) $ ( 372.3 ) $ ( 393.5 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are as follows (in millions): September 30, 2022 2021 Finished goods and work in process $ 1,102.4 $ 972.7 Raw materials 1,135.9 888.1 Supplies and spare parts 529.6 536.4 Inventories at FIFO cost 2,767.9 2,397.2 LIFO reserve ( 450.8 ) ( 223.9 ) Net inventories $ 2,317.1 $ 2,173.3 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of the following (in millions): September 30, 2022 2021 Property, plant and equipment at cost: Land and buildings $ 2,646.4 $ 2,626.0 Machinery and equipment 16,592.5 15,853.1 Forestlands and mineral rights (1) 95.7 120.0 Transportation equipment 24.2 26.1 Leasehold improvements 103.4 93.9 19,462.2 18,719.1 Less: accumulated depreciation, depletion and amortization ( 9,380.8 ) ( 8,149.0 ) Property, plant and equipment, net $ 10,081.4 $ 10,570.1 In fiscal 2022, we recorded a $ 26.0 million pre-tax non-cash impairment of certain mineral rights. With the impairment, we have no remaining mineral rights. |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Other Intangible Assets [Abstract] | |
Schedule of Gross Carrying Amount and Accumulated Amortization Relating to Intangible Assets, Excluding Goodwill | The gross carrying amount and accumulated amortization relating to intangible assets, excluding goodwill, are as follows and reflect the removal of fully amortized intangible assets in the period fully amortized (in millions, except weighted avg. life): September 30, 2022 2021 Weighted Gross Carrying Accumulated Gross Carrying Accumulated Customer relationships 15.6 $ 4,888.5 $ ( 2,038.1 ) $ 4,963.0 $ ( 1,724.3 ) Trademarks and tradenames 22.5 80.7 ( 26.2 ) 80.4 ( 20.9 ) Technology and patents 11.8 24.4 ( 12.9 ) 23.5 ( 9.4 ) License costs 15.8 0.3 ( 0.1 ) 16.2 ( 15.1 ) Non-compete agreements 2.0 1.9 ( 1.1 ) 1.9 ( 0.2 ) Other 29.5 3.5 ( 0.3 ) 4.0 ( 0.3 ) Total 15.7 $ 4,999.3 $ ( 2,078.7 ) $ 5,089.0 $ ( 1,770.2 ) |
Estimated Intangible Asset Amortization Expense | Estimated intangible asset amortization expense for the succeeding five fiscal years is as follows (in millions): Fiscal 2023 $ 340.2 Fiscal 2024 $ 318.8 Fiscal 2025 $ 304.1 Fiscal 2026 $ 296.7 Fiscal 2027 $ 292.9 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Accounts Receivable Sales Agreements | The following table represents a summary of these accounts receivable sales agreements for fiscal 2022 and 2021 (in millions): 2022 2021 Receivable from financial institutions at beginning of fiscal year $ — $ — Receivables sold to the financial institutions and derecognized ( 2,954.8 ) ( 2,732.2 ) Receivables collected by financial institutions 2,896.0 2,655.6 Cash proceeds from financial institutions 58.8 76.6 Receivable from financial institutions at September 30, $ — $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt [Abstract] | |
Schedule of Carrying Value and Weighted Average Interest Rate of Individual Components of Debt | The following were individual components of debt (in millions, except percentages): September 30, 2022 September 30, 2021 Carrying Weighted Avg Carrying Weighted Avg Public bonds due fiscal 2023 to 2028 $ 3,433.4 4.0 % $ 3,778.2 4.0 % Public bonds due fiscal 2029 to 2033 2,753.3 4.5 % 2,766.5 4.5 % Public bonds due fiscal 2037 to 2047 177.8 6.2 % 178.2 6.2 % Revolving credit and swing facilities 286.3 1.9 % 270.0 1.1 % Term loan facilities 598.2 3.1 % 598.9 3.0 % International and other debt 127.6 12.8 % 225.1 4.8 % Finance lease obligations 287.5 4.2 % 264.1 4.1 % Vendor financing and commercial card 123.1 N/A 113.1 N/A Total debt 7,787.2 4.2 % 8,194.1 4.0 % Less: current portion of debt 212.2 168.8 Long-term debt due after one year $ 7,575.0 $ 8,025.3 |
Schedule of Aggregate Maturities of Debt | As of September 30, 2022 , the aggregate maturities of debt, excluding finance lease obligations, for the succeeding five fiscal years and thereafter are as follows (in millions): Fiscal 2023 $ 178.6 Fiscal 2024 529.0 Fiscal 2025 893.8 Fiscal 2026 765.1 Fiscal 2027 501.1 Thereafter 4,498.5 Fair value of debt step-up, deferred financing costs and unamortized 133.6 Total $ 7,499.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Costs | Components of Lease Costs The following table presents certain information related to the lease costs for finance and operating leases (in millions): Years Ended September 30, 2022 2021 2020 Operating lease costs $ 218.1 $ 211.0 $ 201.2 Variable and short-term lease costs 122.8 104.6 105.5 Sublease income ( 6.1 ) ( 8.9 ) ( 6.7 ) Finance lease cost: Amortization of lease assets 15.1 9.6 10.5 Interest on lease liabilities 7.9 7.2 7.9 Total lease cost, net $ 357.8 $ 323.5 $ 318.4 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental Balance Sheet Information Related to Leases The table below presents the lease-related assets and liabilities recorded on the balance sheet (in millions): September 30, Consolidated Balance Sheet Caption 2022 2021 Operating leases: Operating lease right-of-use asset Other assets $ 699.6 $ 676.0 Current operating lease liabilities Other current liabilities $ 191.9 $ 177.9 Noncurrent operating lease liabilities Other long-term liabilities 551.1 537.9 Total operating lease liabilities $ 743.0 $ 715.8 Finance leases: Property, plant and equipment $ 177.4 $ 143.2 Accumulated depreciation ( 37.3 ) ( 28.3 ) Property, plant and equipment, net $ 140.1 $ 114.9 Current finance lease liabilities Current portion of debt $ 14.5 $ 8.7 Noncurrent finance lease liabilities Long-term debt due after one year 273.0 255.4 Total finance lease liabilities $ 287.5 $ 264.1 |
Summary of Lease Term and Discount Rate | Lease Term and Discount Rate September 30, 2022 2021 Weighted average remaining lease term: Operating leases 5.0 years 5.4 years Finance leases 7.3 years 8.3 years Weighted average discount rate: Operating leases 2.7 % 2.4 % Finance leases 4.2 % 4.1 % |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental Cash Flow Information Related to Leases The table below presents supplemental cash flow information related to leases (in millions): Years Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 214.8 $ 227.0 Operating cash flows related to finance leases $ 8.8 $ 8.3 Financing cash flows related to finance leases $ 14.8 $ 9.1 ROU assets obtained in exchange for lease liabilities: Operating leases $ 184.6 $ 160.9 |
Summary of Maturity of Lease Liabilities | Maturity of Lease Liabilities The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet (in millions): September 30, 2022 Operating Leases Finance Leases Total Fiscal 2023 $ 208.9 $ 21.7 $ 230.6 Fiscal 2024 174.8 20.9 195.7 Fiscal 2025 134.3 19.7 154.0 Fiscal 2026 101.2 16.8 118.0 Fiscal 2027 72.4 95.8 168.2 Thereafter 109.3 186.3 295.6 Total lease payments 800.9 361.2 1,162.1 Less: Interest (1) ( 57.9 ) ( 73.7 ) ( 131.6 ) Present value of future lease payments $ 743.0 $ 287.5 $ 1,030.5 (1) Calculated using the interest rate for each lease. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Other Comprehensive Income Loss [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax | The following table summarizes the changes in accumulated other comprehensive loss by component for the fiscal years ended September 30, 2022 and 2021 (in millions): Deferred Defined Benefit Foreign Total (1) Balance at September 30, 2020 $ ( 5.6 ) $ ( 727.7 ) $ ( 586.6 ) $ ( 1,319.9 ) Other comprehensive (loss) income before ( 0.1 ) 161.7 124.2 285.8 Amounts reclassified from accumulated 5.5 29.5 — 35.0 Net current period other comprehensive 5.4 191.2 124.2 320.8 Balance at September 30, 2021 $ ( 0.2 ) $ ( 536.5 ) $ ( 462.4 ) $ ( 999.1 ) Other comprehensive loss before ( 10.3 ) ( 217.1 ) ( 241.2 ) ( 468.6 ) Amounts reclassified from accumulated 1.4 12.0 — 13.4 Net current period other comprehensive loss ( 8.9 ) ( 205.1 ) ( 241.2 ) ( 455.2 ) Balance at September 30, 2022 $ ( 9.1 ) $ ( 741.6 ) $ ( 703.6 ) $ ( 1,454.3 ) (1) All amounts are net of tax and noncontrolling interest. |
Summary of Reclassification out of Accumulated Other Comprehensive Loss | The following table summarizes the reclassifications out of accumulated other comprehensive loss by component for the fiscal years ended September 30, 2022 and 2021 (in millions): Years Ended September 30, 2022 2021 Pre-Tax Tax Net of Tax Pre-Tax Tax Net of Tax Amortization of defined benefit pension and (1) Actuarial losses (2) $ ( 7.8 ) $ 1.9 $ ( 5.9 ) $ ( 33.3 ) $ 8.3 $ ( 25.0 ) Prior service costs (2) ( 8.2 ) 2.1 ( 6.1 ) ( 6.0 ) 1.5 ( 4.5 ) Subtotal defined benefit plans ( 16.0 ) 4.0 ( 12.0 ) ( 39.3 ) 9.8 ( 29.5 ) Derivative Instruments: (1) Interest rate swap hedge loss (3) — — — ( 7.4 ) 1.9 ( 5.5 ) Natural gas commodity hedge loss (4) ( 1.8 ) 0.4 ( 1.4 ) — — — Subtotal derivative instruments ( 1.8 ) 0.4 ( 1.4 ) ( 7.4 ) 1.9 ( 5.5 ) Total reclassifications for the period $ ( 17.8 ) $ 4.4 $ ( 13.4 ) $ ( 46.7 ) $ 11.7 $ ( 35.0 ) (1) Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See “ Note 5. Retirement Plans ” for additional information. (3) These accumulated other comprehensive income components are included in Interest expense, net. (4) These accumulated other comprehensive income components are included in Cost of goods sold. |
Schedule of Other Comprehensive Income (Loss) | A summary of the components of other comprehensive income (loss), including noncontrolling interest, for the years ended September 30, 2022, 2021 and 2020, is as follows (in millions): Fiscal 2022 Pre-Tax Tax Net of Tax Foreign currency translation loss $ ( 241.5 ) $ — $ ( 241.5 ) Deferred loss on cash flow hedges ( 13.8 ) 3.5 ( 10.3 ) Reclassification adjustment of net loss on cash flow hedges 1.8 ( 0.4 ) 1.4 Net actuarial loss arising during period ( 289.1 ) 72.8 ( 216.3 ) Amortization and settlement recognition of net actuarial loss 8.4 ( 2.0 ) 6.4 Prior service cost arising during the period ( 0.2 ) — ( 0.2 ) Amortization of prior service cost 8.2 ( 2.1 ) 6.1 Consolidated other comprehensive loss ( 526.2 ) 71.8 ( 454.4 ) Less: Other comprehensive income attributable to noncontrolling ( 1.1 ) 0.3 ( 0.8 ) Other comprehensive loss attributable to common $ ( 527.3 ) $ 72.1 $ ( 455.2 ) Fiscal 2021 Pre-Tax Tax Net of Tax Foreign currency translation gain $ 124.3 $ — $ 124.3 Deferred loss on cash flow hedges ( 0.1 ) — ( 0.1 ) Reclassification adjustment of net loss on cash flow hedges 7.4 ( 1.9 ) 5.5 Net actuarial gain arising during period 222.2 ( 56.6 ) 165.6 Amortization and settlement recognition of net actuarial loss 33.9 ( 8.4 ) 25.5 Prior service cost arising during the period ( 5.6 ) 1.4 ( 4.2 ) Amortization of prior service cost 6.0 ( 1.5 ) 4.5 Consolidated other comprehensive income 388.1 ( 67.0 ) 321.1 Less: Other comprehensive income attributable to noncontrolling ( 0.3 ) — ( 0.3 ) Other comprehensive income attributable to common $ 387.8 $ ( 67.0 ) $ 320.8 Fiscal 2020 Pre-Tax Tax Net of Tax Foreign currency translation loss $ ( 215.0 ) $ — $ ( 215.0 ) Deferred loss on cash flow hedges ( 13.3 ) 3.3 ( 10.0 ) Reclassification adjustment of net loss on cash flow hedges 4.9 ( 1.3 ) 3.6 Net actuarial gain arising during period 34.6 ( 10.4 ) 24.2 Amortization and settlement recognition of net actuarial loss 48.3 ( 12.9 ) 35.4 Prior service cost arising during the period ( 26.9 ) 7.3 ( 19.6 ) Amortization of prior service cost 5.1 ( 1.3 ) 3.8 Consolidated other comprehensive loss ( 162.3 ) ( 15.3 ) ( 177.6 ) Less: Other comprehensive loss attributable to noncontrolling 0.3 — 0.3 Other comprehensive loss attributable to common $ ( 162.0 ) $ ( 15.3 ) $ ( 177.3 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Stock Based Compensation [Abstract] | |
Summary of Changes in Stock Options | The table below summarizes the changes in all stock options during the fiscal year ended September 30, 2022: Stock Weighted Weighted Aggregate Outstanding at September 30, 2021 1,845,672 $ 38.79 Exercised ( 567,648 ) 31.44 Expired ( 195,099 ) 52.27 Outstanding at September 30, 2022 1,082,925 $ 40.22 1.8 $ 1.3 Exercisable at September 30, 2022 1,082,925 $ 40.22 1.8 $ 1.3 |
Summary of Restricted Stock Awards - Vested and Released, Granted and Changes | The table below summarizes the changes in restricted stock units and restricted stock during the fiscal year ended September 30, 2022: Units/Shares Weighted Outstanding at September 30, 2021 (1) 4,977,459 $ 42.02 Granted 2,365,554 45.24 Vested and released ( 1,512,550 ) 41.07 Forfeited ( 929,834 ) 42.77 Outstanding at September 30, 2022 (1) 4,900,629 $ 43.73 (1) Target awards granted with a performance condition, net of subsequent forfeitures, may be increased up to 200 % of the target or decreased to zero , subject to the level of performance attained. The awards are reflected in the table at the target award amount of 100 %. Based on current facts and assumptions, we are forecasting the performance of the aggregate outstanding grants to be attained at levels that would result in the issuance of approximately 0.8 million additional shares. However, actual performance may vary. The following table represents a summary of restricted stock units and restricted stock granted in fiscal 2022, 2021 and 2020 with terms defined in the applicable grant letters (in units/shares). 2022 2021 2020 Granted to non-employee directors 37,771 42,482 49,236 Granted to employees: Granted for attainment of a performance condition at (1) 263,918 — — Granted with a service condition and a Cash Flow Per (2) 464,485 798,490 869,065 Granted with a service condition and a Return on (2) 394,655 — — Granted with a service condition and a relative Total (2) 45,470 127,050 152,595 Granted with a service condition (3) 1,159,255 1,009,387 889,030 Granted for annual bonus (4) — 126,984 2,486,249 Total grants 2,365,554 2,104,393 4,446,175 (1) Grants in the table above include shares subsequently issued for the level of performance attained in excess of target. Shares issued in fiscal 2022 for the fiscal 2019 Cash Flow Per Share were at 151.3 % of target. Shares issued in fiscal 2021 for the fiscal 2018 Cash Flow Per Share were at 89.3 % of target, therefore, the remainder of the grant was forfeited. Shares issued in fiscal 2020 for the fiscal 2017 Cash Flow Per Share were at 98.8 % of target, therefore, the remainder of the grant was forfeited. (2) These employee grants vest over approximately three years and have adjustable ranges from 0 - 200 % of target subject to the level of performance attained in the respective award agreement. The employee grants with a relative Total Shareholder Return condition were valued using a Monte Carlo simulation, the terms of which are outlined below. (3) These grants vest over approximately three to four years . (4) Reflects shares issued in fiscal 2021 for the fiscal 2020 restricted stock units granted for the annual bonus were at 105 % of target. The following table represents a summary of restricted stock units and restricted stock vested and released as well as the corresponding aggregate fair value in fiscal 2022, 2021 and 2020 (in millions, except units/shares): 2022 2021 2020 Vested and released 1,512,550 3,194,223 766,431 Aggregate fair value $ 68.7 $ 125.1 $ 29.6 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share under the two-class method (in millions, except per share data): September 30, 2022 2021 2020 Numerator: Net income (loss) attributable to common stockholders $ 944.6 $ 838.3 $ ( 690.9 ) Less: Distributed and undistributed income available to ( 0.1 ) ( 0.2 ) ( 0.1 ) Distributed and undistributed income (loss) available to $ 944.5 $ 838.1 $ ( 691.0 ) Denominator: Basic weighted average shares outstanding 259.5 265.2 259.2 Effect of dilutive stock options and non-participating securities 2.0 2.3 — Diluted weighted average shares outstanding 261.5 267.5 259.2 Basic earnings (loss) per share attributable to common $ 3.64 $ 3.16 $ ( 2.67 ) Diluted earnings (loss) per share attributable to common $ 3.61 $ 3.13 $ ( 2.67 ) |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) T | Sep. 30, 2022 USD ($) MMBTU Segment | Sep. 30, 2021 USD ($) MMBTU Segment | Sep. 30, 2020 USD ($) | Sep. 30, 2022 MXN ($) | Jul. 01, 2022 | Sep. 30, 2019 USD ($) | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Lost production from ransomware incident to date | T | 115,000 | |||||||||
Insurance recoveries | $ 57,200,000 | |||||||||
Number of reportable segments | Segment | 4 | 2 | ||||||||
Pre-tax impact of lost sales and operational disruption | $ 50,000,000 | |||||||||
Ransomware recovery costs | $ 9,000,000 | $ 20,000,000 | ||||||||
Ransomware preliminary recoveries | $ 15,000,000 | |||||||||
Reduction of SG&A expenses excluding intangible amortization. | 10,000,000 | |||||||||
Direct cost recoveries as reduction of Selling , general and administrative expenses excluding intangible amortization | $ 6,600,000 | |||||||||
Reduction of cost of goods sold | $ 5,000,000 | |||||||||
Business interruption recoveries as reduction of Cost of goods sold. | 50,600,000 | |||||||||
Bad debt expense (credit) | $ 4,600,000 | $ (9,400,000) | $ 19,900,000 | |||||||
Percentage of FIFO Inventory | 35% | 36% | 35% | 36% | 35% | |||||
Percentage of our mill assets as measured at cost with a life of 25 years or less | 90% | |||||||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | 15% | 15% | |||||||
Goodwill | $ 5,895,200,000 | $ 5,959,200,000 | $ 5,895,200,000 | $ 5,959,200,000 | 5,962,200,000 | $ 7,285,600,000 | ||||
Finite-Lived Intangible Assets, Useful Life | 15 years 8 months 12 days | |||||||||
Unamortized implementation costs | 4,100,000 | 1,100,000 | $ 4,100,000 | 1,100,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Asset Retirement Obligation | 96,000,000 | 73,600,000 | $ 96,000,000 | 73,600,000 | ||||||
Asset Retirement Obligation, Current | 16,400,000 | 16,400,000 | ||||||||
Asset Retirement Obligations, Noncurrent | 79,600,000 | 73,100,000 | 79,600,000 | 73,100,000 | ||||||
Deferred maintenance costs | 121,800,000 | 110,700,000 | 121,800,000 | 110,700,000 | ||||||
Foreign Currency Transaction Gain (Loss), after Tax | $ (5,000,000) | (700,000) | $ 6,600,000 | |||||||
Restricted Stock, Non-Employee Directors [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||||||
Foreign Currency Exchange Contract Derivatives [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Derivative, Notional Amount | 389,900,000 | $ 270,200,000 | $ 389,900,000 | $ 270,200,000 | $ 8,000,000,000 | |||||
Derivative other assets current | $ 3,400,000 | $ 3,400,000 | ||||||||
Cash Flow Hedging [Member] | Natural Gas Commodity Hedge [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Notional amount of natural gas derivatives | MMBTU | 18,300,000 | 0 | ||||||||
Accounting Standards Update 2019-12 [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | true | |||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Oct. 01, 2021 | Oct. 01, 2021 | Oct. 01, 2021 | |||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | true | true | |||||||
Accounting Standards Update 2021-05 [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Oct. 01, 2021 | Oct. 01, 2021 | Oct. 01, 2021 | |||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | true | true | |||||||
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false] | true | true | true | |||||||
Other Current Liabilities [Member] | Natural Gas Commodity Hedge [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Derivative fair value | $ 12,000,000 | $ 12,000,000 | ||||||||
Corrugated Packaging [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Reporting unit, discount rate | 10% | |||||||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | 15% | 15% | 15% | ||||||
Increase in discount rate for the estimated fair value of reporting unit to fall below its carrying value | 11.90% | |||||||||
Goodwill | $ 2,802,800,000 | $ 2,802,800,000 | ||||||||
Consumer Packaging [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | 15% | 15% | |||||||
Goodwill | $ 1,588,400,000 | $ 1,588,400,000 | ||||||||
Global Paper [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | 15% | 15% | |||||||
Goodwill | $ 1,366,500,000 | $ 1,366,500,000 | ||||||||
Distribution [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | 15% | 15% | |||||||
Goodwill | $ 137,500,000 | $ 137,500,000 | ||||||||
Minimum [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Accounts Receivable, Approximate Range Receivables Due, Days | 30 days | |||||||||
Reporting unit, discount rate | 9.50% | |||||||||
Reporting unit, growth rate | 0% | |||||||||
Finite-Lived Intangible Assets, Useful Life | 1 year | |||||||||
Minimum [Member] | Machinery and Equipment [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||||
Minimum [Member] | Leasehold Improvements [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||||
Maximum [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Accounts Receivable, Approximate Range Receivables Due, Days | 60 days | |||||||||
Reporting unit, discount rate | 13% | |||||||||
Reporting unit, growth rate | 1% | |||||||||
Finite-Lived Intangible Assets, Useful Life | 40 years | |||||||||
Maximum [Member] | Machinery and Equipment [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 25 years | |||||||||
Maximum [Member] | Machinery and Equipment, Mills [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 44 years | |||||||||
Maximum [Member] | Cost of Our Mill Machinery and Equipment with a Life of 25 Years or Less | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 25 years | |||||||||
Maximum [Member] | Leasehold Improvements [Member] | ||||||||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 10 years |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Schedule of Valuation and Qualifying Accounts Disclosure (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of fiscal year | $ 68.1 | $ 66.3 | $ 53.2 |
Reduction in sales and charges to costs and expenses | 261.9 | 236.5 | 270.8 |
Deductions | (263.7) | (234.7) | (257.7) |
Balance at end of fiscal year | $ 66.3 | $ 68.1 | $ 66.3 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Property, Plant and Equipment, Estimated Useful Lives (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Transportation Equipment [Member] | Minimum [Member] | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Transportation Equipment [Member] | Maximum [Member] | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 8 years |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 12 Months Ended | |
Sep. 30, 2022 USD ($) Segment | Sep. 30, 2021 USD ($) Segment | |
Disaggregation of Revenue [Abstract] | ||
Land and development sales | $ | $ 0 | $ 0 |
Number of reportable segments | Segment | 4 | 2 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregates Revenue by Geographical Market and Product Type (Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 21,256.5 | $ 18,746.1 | $ 17,578.8 |
Corrugated Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 9,307.6 | 8,400.5 | 7,790.2 |
Consumer Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 4,965.2 | 4,433.9 | 4,190.4 |
Land and Development [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 18.9 | ||
Global Paper [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 5,930.2 | 4,983 | 4,749.6 |
Distribution Segment [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,418.9 | 1,254.8 | 1,102.4 |
Intersegment Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | (365.4) | (326.1) | (272.7) |
Intersegment Sales [Member] | Corrugated Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | (328) | (305.3) | (250) |
Intersegment Sales [Member] | Consumer Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | (27.8) | (20.3) | (20.2) |
Intersegment Sales [Member] | Distribution Segment [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | (9.6) | (0.5) | (2.5) |
United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 17,361.5 | 15,317.2 | 14,508.9 |
United States [Member] | Corrugated Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 8,264.7 | 7,518.8 | 7,054.6 |
United States [Member] | Consumer Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 2,870.9 | 2,463.7 | 2,416.5 |
United States [Member] | Land and Development [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 18.9 | ||
United States [Member] | Global Paper [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 5,344.8 | 4,547.7 | 4,300.4 |
United States [Member] | Distribution Segment [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,238.3 | 1,105.9 | 987.1 |
United States [Member] | Intersegment Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | (357.2) | (318.9) | (268.6) |
Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,325.1 | 1,210.4 | 1,124.7 |
Canada [Member] | Corrugated Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 578.8 | 519.3 | 452.6 |
Canada [Member] | Consumer Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 510 | 473 | 436 |
Canada [Member] | Global Paper [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 227.7 | 205.2 | 222.3 |
Canada [Member] | Distribution Segment [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 16.1 | 19.7 | 17.3 |
Canada [Member] | Intersegment Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | (7.5) | (6.8) | (3.5) |
Latin America [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,045.6 | 745.4 | 611.1 |
Latin America [Member] | Corrugated Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 456.4 | 357.3 | 275.1 |
Latin America [Member] | Consumer Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 194.4 | 159.1 | 120.3 |
Latin America [Member] | Global Paper [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 230.7 | 100.1 | 118 |
Latin America [Member] | Distribution Segment [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 164.5 | 129.2 | 98 |
Latin America [Member] | Intersegment Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | (0.4) | (0.3) | (0.3) |
EMEA [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,150.5 | 1,106 | 1,014 |
EMEA [Member] | Corrugated Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 7.7 | 5.1 | 7.9 |
EMEA [Member] | Consumer Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,079.9 | 1,038.2 | 939.6 |
EMEA [Member] | Global Paper [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 63.2 | 62.7 | 66.5 |
EMEA [Member] | Intersegment Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | (0.3) | ||
Asia Pacific [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 373.8 | 367.1 | 320.1 |
Asia Pacific [Member] | Consumer Packaging [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 310 | 299.9 | 278 |
Asia Pacific [Member] | Global Paper [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 63.8 | 67.3 | 42.4 |
Asia Pacific [Member] | Intersegment Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ (0.1) | $ (0.3) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Opening and Closing Balances of Contract Assets and Contract Liabilities (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Disaggregation of Revenue [Abstract] | |
Short-Term Contract Assets, Beginning balance | $ 199.1 |
(Decrease) / Increase in Short-Term Contract Assets | 44.9 |
Short-Term Contract Assets, Ending balance | 244 |
Short-Term Contract Liabilities, Beginning balance | 12.8 |
(Decrease) / increase in Short-Term Contract Liabilities | 1.1 |
Short-Term Contract Liabilities, Ending balance | $ 13.9 |
Acquisitions and Investments -
Acquisitions and Investments - Additional Information (Details) - Grupo Gondi [Member] $ in Millions | Jul. 27, 2022 USD ($) GraphicPlants CorrugatedPackagingPlants PaperMills |
Business Acquisition [Line Items] | |
Percentage of remaining interest acquired | 67.70% |
Purchase consideration to be transferred | $ 970 |
Estimated implied enterprise value | $ 1,763 |
Mexico [Member] | |
Business Acquisition [Line Items] | |
Number of paper mills | PaperMills | 4 |
Number of corrugated packaging plants | CorrugatedPackagingPlants | 9 |
Number of high graphic plants | GraphicPlants | 6 |
Restructuring and Other Costs -
Restructuring and Other Costs - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 USD ($) Segment T | Sep. 30, 2021 USD ($) Segment | Sep. 30, 2020 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other costs | $ | $ 401.6 | $ 31.5 | $ 112.7 |
Restructuring and other costs, noncash | $ | $ 325.5 | $ 12.6 | $ 29.8 |
Number of reportable segments | Segment | 4 | 2 | |
Panama City Mill [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Annual capacity of production | T | 645,000 | ||
Corrugated Medium Manufacturing Operations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Annual capacity of production | T | 200,000 |
Restructuring and Other Costs_2
Restructuring and Other Costs - Schedule of Restructuring and Other Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring | $ 392.1 | $ 28.5 | $ 93.7 |
Other | 9.5 | 3 | 19 |
Restructuring and Other Costs | $ 401.6 | $ 31.5 | $ 112.7 |
Restructuring and Other Costs_3
Restructuring and Other Costs - Schedule of Restructuring Charges Related to Active Restructuring Initiatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 392.1 | $ 28.5 | $ 93.7 |
Restructuring and Related Cost, Cost Incurred to Date | 627.2 | ||
Restructuring and Related Cost, Expected Cost | 721.9 | ||
PP&E and Related Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 351.6 | 12.1 | 25.7 |
Restructuring and Related Cost, Cost Incurred to Date | 418.6 | ||
Restructuring and Related Cost, Expected Cost | 418.6 | ||
Severance and Other Employee Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 20.9 | 15.3 | 49.6 |
Restructuring and Related Cost, Cost Incurred to Date | 146.3 | ||
Restructuring and Related Cost, Expected Cost | 148.5 | ||
Other Restructuring Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 19.6 | 1.1 | 18.4 |
Restructuring and Related Cost, Cost Incurred to Date | 62.3 | ||
Restructuring and Related Cost, Expected Cost | 154.8 | ||
Corporate, Non-Segment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 10.3 | 4.7 | 22.7 |
Restructuring and Related Cost, Cost Incurred to Date | 77.8 | ||
Restructuring and Related Cost, Expected Cost | 77.8 | ||
Corporate, Non-Segment [Member] | PP&E and Related Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 2 | 8.8 | |
Restructuring and Related Cost, Cost Incurred to Date | 10.8 | ||
Restructuring and Related Cost, Expected Cost | 10.8 | ||
Corporate, Non-Segment [Member] | Severance and Other Employee Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 3 | 0.9 | 21.1 |
Restructuring and Related Cost, Cost Incurred to Date | 62.5 | ||
Restructuring and Related Cost, Expected Cost | 62.5 | ||
Corporate, Non-Segment [Member] | Other Restructuring Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 5.3 | (5) | 1.6 |
Restructuring and Related Cost, Cost Incurred to Date | 4.5 | ||
Restructuring and Related Cost, Expected Cost | 4.5 | ||
Corrugated Packaging [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 3.4 | 10.2 | 13.1 |
Restructuring and Related Cost, Cost Incurred to Date | 45.9 | ||
Restructuring and Related Cost, Expected Cost | 52.3 | ||
Corrugated Packaging [Member] | PP&E and Related Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 0.3 | 2.6 | 0.4 |
Restructuring and Related Cost, Cost Incurred to Date | 3.9 | ||
Restructuring and Related Cost, Expected Cost | 3.9 | ||
Corrugated Packaging [Member] | Severance and Other Employee Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 0.5 | 4.7 | 7.5 |
Restructuring and Related Cost, Cost Incurred to Date | 29.2 | ||
Restructuring and Related Cost, Expected Cost | 29.2 | ||
Corrugated Packaging [Member] | Other Restructuring Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 2.6 | 2.9 | 5.2 |
Restructuring and Related Cost, Cost Incurred to Date | 12.8 | ||
Restructuring and Related Cost, Expected Cost | 19.2 | ||
Consumer Packaging [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 8.9 | 13.3 | 24.5 |
Restructuring and Related Cost, Cost Incurred to Date | 52.9 | ||
Restructuring and Related Cost, Expected Cost | 52.9 | ||
Consumer Packaging [Member] | PP&E and Related Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 0.5 | 1 | |
Restructuring and Related Cost, Cost Incurred to Date | 3.3 | ||
Restructuring and Related Cost, Expected Cost | 3.3 | ||
Consumer Packaging [Member] | Severance and Other Employee Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 6.2 | 9.7 | 19.4 |
Restructuring and Related Cost, Cost Incurred to Date | 36.5 | ||
Restructuring and Related Cost, Expected Cost | 36.5 | ||
Consumer Packaging [Member] | Other Restructuring Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 2.7 | 3.1 | 4.1 |
Restructuring and Related Cost, Cost Incurred to Date | 13.1 | ||
Restructuring and Related Cost, Expected Cost | 13.1 | ||
Global Paper [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 368.5 | 0.3 | 31.2 |
Restructuring and Related Cost, Cost Incurred to Date | 447.3 | ||
Restructuring and Related Cost, Expected Cost | 535.6 | ||
Global Paper [Member] | PP&E and Related Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 349.3 | 0.2 | 24.3 |
Restructuring and Related Cost, Cost Incurred to Date | 400.6 | ||
Restructuring and Related Cost, Expected Cost | 400.6 | ||
Global Paper [Member] | Severance and Other Employee Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 11.2 | 1.4 | |
Restructuring and Related Cost, Cost Incurred to Date | 17.8 | ||
Restructuring and Related Cost, Expected Cost | 20 | ||
Global Paper [Member] | Other Restructuring Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 8 | $ 0.1 | 5.5 |
Restructuring and Related Cost, Cost Incurred to Date | 28.9 | ||
Restructuring and Related Cost, Expected Cost | 115 | ||
Distribution [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 1 | 0.2 | |
Restructuring and Related Cost, Cost Incurred to Date | 1.2 | ||
Restructuring and Related Cost, Expected Cost | 1.2 | ||
Distribution [Member] | Severance and Other Employee Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 0.2 | ||
Restructuring and Related Cost, Cost Incurred to Date | 0.2 | ||
Restructuring and Related Cost, Expected Cost | 0.2 | ||
Distribution [Member] | Other Restructuring Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 1 | ||
Restructuring and Related Cost, Cost Incurred to Date | 1 | ||
Restructuring and Related Cost, Expected Cost | 1 | ||
Land and Development [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 2 | ||
Restructuring and Related Cost, Cost Incurred to Date | 2.1 | ||
Restructuring and Related Cost, Expected Cost | 2.1 | ||
Land and Development [Member] | Severance and Other Employee Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 0.1 | ||
Restructuring and Related Cost, Expected Cost | 0.1 | ||
Land and Development [Member] | Other Restructuring Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 2 | ||
Restructuring and Related Cost, Cost Incurred to Date | 2 | ||
Restructuring and Related Cost, Expected Cost | $ 2 |
Restructuring and Other Costs_4
Restructuring and Other Costs - Schedule of Acquisition, Divestiture and Integration Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||
Acquisition costs | $ 4.4 | $ 0.5 | $ 0.2 |
Integration costs | 0.7 | 1.7 | 18.7 |
Divestiture costs | 4.4 | 0.8 | 0.1 |
Other total | 9.5 | 3 | 19 |
Other Segments [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Acquisition costs | 4.4 | 0.5 | 0.2 |
Integration costs | 0.7 | 1.7 | 18.7 |
Divestiture costs | 4.4 | 0.8 | 0.1 |
Other total | $ 9.5 | $ 3 | $ 19 |
Restructuring and Other Costs_5
Restructuring and Other Costs - Schedule of Changes in Restructuring Accrual Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring And Other Costs [Abstract] | |||
Accrual at beginning of fiscal year | $ 13.4 | $ 17.2 | $ 32.3 |
Additional accruals | 33.4 | 17.4 | 51.3 |
Payments | (15.9) | (17.2) | (56.6) |
Adjustment to accruals | (5.6) | (2.1) | (6.2) |
Foreign currency rate changes and other | (0.1) | (1.9) | (3.6) |
Accrual at end of fiscal year | $ 25.2 | $ 13.4 | $ 17.2 |
Restructuring and Other Costs_6
Restructuring and Other Costs - Schedule of Reconciliation of Accruals and Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring And Other Costs [Abstract] | |||
Additional accruals and adjustments to accruals (see table above) | $ 27.8 | $ 15.3 | $ 45.1 |
PP&E and related costs | 351.6 | 12.1 | 25.7 |
Severance and other employee costs | 0.5 | 0.3 | 1.6 |
Acquisition costs | 4.4 | 0.5 | 0.2 |
Integration costs | 0.7 | 1.7 | 18.7 |
Divestiture costs | 4.4 | 0.8 | 0.1 |
Other restructuring costs | 12.2 | 0.8 | 21.3 |
Restructuring and Other Costs | $ 401.6 | $ 31.5 | $ 112.7 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Allocation of Plan Assets - (Details) - Pension Plan [Member] | Sep. 30, 2022 | Sep. 30, 2021 |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 100% | 100% |
Defined Benefit Plan, Actual Plan Asset Allocations | 100% | 100% |
Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 100% | 100% |
Defined Benefit Plan, Actual Plan Asset Allocations | 100% | 100% |
Equity Securities [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 18% | 19% |
Defined Benefit Plan, Actual Plan Asset Allocations | 18% | 21% |
Equity Securities [Member] | Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 23% | 21% |
Defined Benefit Plan, Actual Plan Asset Allocations | 21% | 21% |
Fixed Income Investments [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 73% | 73% |
Defined Benefit Plan, Actual Plan Asset Allocations | 70% | 71% |
Fixed Income Investments [Member] | Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 73% | 74% |
Defined Benefit Plan, Actual Plan Asset Allocations | 73% | 72% |
Short-term Investments [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 1% | 1% |
Defined Benefit Plan, Actual Plan Asset Allocations | 4% | 3% |
Short-term Investments [Member] | Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 1% | 1% |
Defined Benefit Plan, Actual Plan Asset Allocations | 2% | 2% |
Other Investments [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 8% | 7% |
Defined Benefit Plan, Actual Plan Asset Allocations | 8% | 5% |
Other Investments [Member] | Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage of Assets | 3% | 4% |
Defined Benefit Plan, Actual Plan Asset Allocations | 4% | 5% |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2019 USD ($) Letter | Sep. 30, 2019 USD ($) | Sep. 30, 2023 | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | Apr. 30, 2020 USD ($) | Feb. 29, 2020 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Assumptions Used, Minimum Outstanding Par Value of Bonds Used to Determine Future Discount Rate | $ 100 | ||||||||
Defined benefit plan, accumulated benefit obligation | 4,779.1 | $ 6,627.1 | |||||||
Multiemployer Plans, Withdrawal Obligation | $ 214.7 | 247.1 | |||||||
Percentage of Employees Covered by Collective Bargaining Agreements | 55% | ||||||||
Percentage of Employees Working Under Expired Collective Bargaining Agreement | 27% | ||||||||
Percentage of Employees Covered By Collective Bargaining Agreements Expiring in One Year | 32% | ||||||||
Defined Contribution Plan Employer Contribution on Basic Salary, Maximum, High End of Range | 7.50% | ||||||||
Defined Contribution Plan Employer Contribution on Basic Salary, Automatic Matching Contribution | 2.50% | ||||||||
Defined Contribution Plan Employer Contribution on Basic Salary, Employees Covered under a CBA, Maximum, Low End of Range | 3% | ||||||||
Defined Contribution Plan Employer Contribution on Basic Salary, Employees Covered under a CBA, Maximum, High End of Range | 4% | ||||||||
Defined Contribution Plan, Cost | $ 169.5 | $ 164.7 | $ 150.1 | ||||||
Pace Industry Union Management Pension Fund [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Multiemployer Plans, Withdrawal Obligation | $ 170.3 | $ 170.3 | |||||||
Withdrawal obligation, per month | $ 0.7 | $ 0.7 | |||||||
Periods of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal | 20 years | 20 years | |||||||
Withdrawal obligation accumulated funding deficiency | $ 51.2 | ||||||||
Subsidiary [Member] | Pace Industry Union Management Pension Fund [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Multiemployer Plans, Withdrawal Obligation | $ 2.3 | ||||||||
Periods of Payments Used to Calculate Withdrawal Liability in Connection with PIUMPF Withdrawal | 20 years | ||||||||
Number of additional demand letters | Letter | 2 | ||||||||
Withdrawal obligation accumulated funding deficiency | $ 2 | $ 1.3 | |||||||
Minimum [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Adjustment to Pri-2012 mortality tables with specific gender and job classification | 7% | 6% | 5% | ||||||
Maximum [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Adjustment to Pri-2012 mortality tables with specific gender and job classification | 14% | 13% | 12% | ||||||
Defined Contribution Plan Employer Contribution on Basic Salary, Matching Contribution | 5% | ||||||||
Pension Plan [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 21 | ||||||||
Pension Plan [Member] | United States [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.75% | 6% | 6.25% | ||||||
Pension Plan [Member] | United States [Member] | Non-Qualified Plans [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined benefit plan, plan with benefit obligation in excess of plan assets, benefit obligation | $ 164.5 | ||||||||
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation | 164.5 | ||||||||
Defined benefit plan, plan with benefit obligation in excess of plan assets, fair value of plan assets | $ 28.8 | ||||||||
Pension Plan [Member] | United States [Member] | Scenario Forecast [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.50% | ||||||||
Pension Plan [Member] | Foreign Plan [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.81% | 3.73% | 4.26% | ||||||
Pension Plan [Member] | Foreign Plan [Member] | Scenario Forecast [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.10% | ||||||||
Other Pension, Postretirement and Supplemental Plans [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Pension and other postretirement plans, assets | $ 140.9 | ||||||||
Pension and other postretirement plans, liabilities | $ 138.7 |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Weighted-Average Assumptions Used to Measure Benefit Plan Obligations (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Pension Plan [Member] | United States [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.63% | 2.99% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Interest crediting rate | 3.08% | 3.48% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.50% | 2.50% |
Pension Plan [Member] | Foreign Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.12% | 2.63% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.97% | 2.65% |
Other Postretirement Benefits Plan [Member] | United States [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.57% | 2.98% |
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 7.56% | 6.45% |
Retirement Plans - Schedule o_3
Retirement Plans - Schedule of Changes in Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Prepaid pension asset | $ 440.3 | $ 674.3 | |
Pension liabilities, net of current portion | (189.4) | (254.7) | |
Postretirement benefit liabilities, net of current portion | (105.4) | (133.7) | |
Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | 47.8 | 51.1 | $ 52.6 |
Interest cost | 188.2 | 187.3 | 198.6 |
Pension Plan [Member] | United States [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of fiscal year | 5,239.1 | 5,264.5 | |
Service cost | 40.8 | 42.5 | |
Interest cost | 152.1 | 154.6 | |
Amendments | 0.3 | 5 | |
Actuarial loss (gain) | (1,317.1) | 20.7 | |
Plan participant contributions | 0 | 0 | |
Benefits paid | (246.9) | (248.2) | |
Curtailments | 0 | 0 | |
Settlements | (1.8) | 0 | |
Foreign currency rate changes | 0 | 0 | |
Benefit obligation at end of fiscal year | 3,866.5 | 5,239.1 | 5,264.5 |
Fair value of plan assets at beginning of fiscal year | 5,627 | 5,369.7 | |
Actual (loss) gain on plan assets | (1,281.4) | 491.9 | |
Employer contributions | 13 | 13.6 | |
Plan participant contributions | 0 | 0 | |
Benefits paid | (246.9) | (248.2) | |
Settlements | (1.8) | 0 | |
Foreign currency rate changes | 0 | 0 | |
Fair value of plan assets at end of fiscal year | 4,109.9 | 5,627 | 5,369.7 |
Funded (unfunded) status | 243.4 | 387.9 | |
Prepaid pension asset | 379.1 | 566.8 | |
Other current liabilities | (11.7) | (13.5) | |
Pension liabilities, net of current portion | (124) | (165.4) | |
Over (under) funded status at end of fiscal year | 243.4 | 387.9 | |
Pension Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of fiscal year | 1,438.5 | 1,471.5 | |
Service cost | 7 | 8.6 | |
Interest cost | 36.1 | 32.7 | |
Amendments | 0 | 0.6 | |
Actuarial loss (gain) | (340.1) | (66.1) | |
Plan participant contributions | 1.7 | 1.9 | |
Benefits paid | (77.6) | (78) | |
Curtailments | 0.2 | 0 | |
Settlements | (2.4) | (1.4) | |
Foreign currency rate changes | (128.1) | 68.7 | |
Benefit obligation at end of fiscal year | 935.3 | 1,438.5 | 1,471.5 |
Fair value of plan assets at beginning of fiscal year | 1,455.7 | 1,418 | |
Actual (loss) gain on plan assets | (322.1) | 38.7 | |
Employer contributions | 8.2 | 9.6 | |
Plan participant contributions | 1.7 | 1.9 | |
Benefits paid | (77.6) | (78) | |
Settlements | (2.5) | (1.4) | |
Foreign currency rate changes | (133.7) | 66.9 | |
Fair value of plan assets at end of fiscal year | 929.7 | 1,455.7 | 1,418 |
Funded (unfunded) status | (5.6) | 17.2 | |
Prepaid pension asset | 61.2 | 107.5 | |
Other current liabilities | (1.4) | (1) | |
Pension liabilities, net of current portion | (65.4) | (89.3) | |
Over (under) funded status at end of fiscal year | (5.6) | 17.2 | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | 1 | 1.2 | 1.3 |
Interest cost | 6.4 | 5.9 | 6.9 |
Other Postretirement Benefits Plan [Member] | United States [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of fiscal year | 86.4 | 93.6 | |
Service cost | 0.6 | 0.6 | |
Interest cost | 2.6 | 2.8 | |
Actuarial loss (gain) | (16.3) | (6.1) | |
Benefits paid | (4.8) | (4.5) | |
Foreign currency rate changes | 0 | 0 | |
Benefit obligation at end of fiscal year | 68.5 | 86.4 | 93.6 |
Fair value of plan assets at beginning of fiscal year | 0 | 0 | |
Employer contributions | 4.8 | 4.5 | |
Benefits paid | (4.8) | (4.5) | |
Fair value of plan assets at end of fiscal year | 0 | 0 | 0 |
Funded (unfunded) status | (68.5) | (86.4) | |
Other current liabilities | (8.7) | (8.2) | |
Postretirement benefit liabilities, net of current portion | (59.8) | (78.2) | |
Over (under) funded status at end of fiscal year | (68.5) | (86.4) | |
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of fiscal year | 58.3 | 62.5 | |
Service cost | 0.4 | 0.6 | |
Interest cost | 3.8 | 3.1 | |
Actuarial loss (gain) | (9.8) | (8.1) | |
Benefits paid | (2.8) | (2.8) | |
Foreign currency rate changes | (1.6) | 3 | |
Benefit obligation at end of fiscal year | 48.3 | 58.3 | 62.5 |
Fair value of plan assets at beginning of fiscal year | 0 | 0 | |
Employer contributions | 2.8 | 2.8 | |
Benefits paid | (2.8) | (2.8) | |
Fair value of plan assets at end of fiscal year | 0 | 0 | $ 0 |
Funded (unfunded) status | (48.3) | (58.3) | |
Other current liabilities | (2.7) | (2.8) | |
Postretirement benefit liabilities, net of current portion | (45.6) | (55.5) | |
Over (under) funded status at end of fiscal year | $ (48.3) | $ (58.3) |
Retirement Plans - Schedule o_4
Retirement Plans - Schedule of Amounts in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Pension Plan [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | $ 849.8 | $ 573.1 |
Prior service (credit) cost | 34.6 | 42.4 |
Total accumulated other comprehensive (income) loss | 884.4 | 615.5 |
Pension Plan [Member] | Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | 155.6 | 125.9 |
Prior service (credit) cost | 1.8 | 2.6 |
Total accumulated other comprehensive (income) loss | 157.4 | 128.5 |
Other Postretirement Benefits Plan [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | (32.2) | (16.1) |
Prior service (credit) cost | (2.3) | (3.2) |
Total accumulated other comprehensive (income) loss | (34.5) | (19.3) |
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | (4.8) | 4.8 |
Prior service (credit) cost | 1 | 1.1 |
Total accumulated other comprehensive (income) loss | $ (3.8) | $ 5.9 |
Retirement Plans - Schedule o_5
Retirement Plans - Schedule of Amounts Recognized in Other Comprehensive Loss (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) arising during period | $ 289.1 | $ (222.2) | $ (34.6) |
Amortization and settlement recognition of net actuarial (loss) gain | (8.4) | (33.9) | (48.3) |
Prior service cost (credit) arising during period | 0.2 | 5.6 | 26.9 |
Amortization of prior service (cost) credit | (8.2) | (6) | (5.1) |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) arising during period | 315.3 | (208) | (26.2) |
Amortization and settlement recognition of net actuarial (loss) gain | (8.9) | (34.5) | (48.2) |
Prior service cost (credit) arising during period | 0.2 | 5.6 | 25 |
Amortization of prior service (cost) credit | (8.9) | (8.4) | (7.8) |
Net other comprehensive loss (income) recognized | 297.7 | (245.3) | (57.2) |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) arising during period | (26.2) | (14.2) | (8.4) |
Amortization and settlement recognition of net actuarial (loss) gain | 0.5 | 0.6 | (0.1) |
Prior service cost (credit) arising during period | 1.9 | ||
Amortization of prior service (cost) credit | 0.7 | 2.4 | 2.7 |
Net other comprehensive loss (income) recognized | $ (25) | $ (11.2) | $ (3.9) |
Retirement Plans - Summary of C
Retirement Plans - Summary of Components of Net Pension Income and Summary of Components of Postretirement Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 47.8 | $ 51.1 | $ 52.6 |
Interest cost | 188.2 | 187.3 | 198.6 |
Expected return on plan assets | $ (368.6) | $ (368.1) | $ (362.3) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component |
Amortization of net actuarial loss (gain) | $ 8.8 | $ 34.2 | $ 46.8 |
Amortization of prior service cost (credit) | $ 8.4 | $ 8.4 | $ 7.5 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component |
Curtailment loss | $ 0.5 | $ 0 | $ 0.4 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component |
Settlement loss (gain) | $ 0.1 | $ 0.4 | $ 1.4 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component |
Company defined benefit plan income | $ (114.8) | $ (86.7) | $ (55) |
Multiemployer and other plans | 1.5 | 1.6 | 2 |
Net retirement (income) cost | (113.3) | (85.1) | (53) |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1.2 | 1.3 |
Interest cost | 6.4 | 5.9 | 6.9 |
Amortization of net actuarial loss (gain) | (0.5) | (0.6) | 0.1 |
Amortization of prior service cost (credit) | (0.7) | (2.4) | (2.7) |
Net retirement (income) cost | $ 6.2 | $ 4.1 | $ 5.6 |
Retirement Plans - Schedule o_6
Retirement Plans - Schedule of Weighted-Average Assumptions Used in Calculation of Benefit Plan Expense (Details) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Plan [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 2.99% | 3.01% | 3.35% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Interest crediting rate | 3.48% | 3.47% | 4.22% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Cost, Rate of Compensation Increase | 2.50% | 2.50% | 3% |
Expected long-term rate of return on plan assets | 5.75% | 6% | 6.25% |
Pension Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 2.63% | 2.16% | 2.42% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Cost, Rate of Compensation Increase | 2.65% | 2.68% | 2.65% |
Expected long-term rate of return on plan assets | 3.81% | 3.73% | 4.26% |
Other Postretirement Benefits Plan [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 2.98% | 3% | 3.34% |
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 6.45% | 4.84% | 5.64% |
Retirement Plans - Schedule o_7
Retirement Plans - Schedule of Estimated Benefit Payments (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Pension Plan [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2023 | $ 275.9 |
Fiscal 2024 | 279.9 |
Fiscal 2025 | 287 |
Fiscal 2026 | 290 |
Fiscal 2027 | 281.8 |
Fiscal Years 2028 - 2032 | 1,436.1 |
Pension Plan [Member] | Foreign Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2023 | 90.9 |
Fiscal 2024 | 68.8 |
Fiscal 2025 | 68.7 |
Fiscal 2026 | 68.3 |
Fiscal 2027 | 68.2 |
Fiscal Years 2028 - 2032 | 338 |
Other Postretirement Benefits Plan [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2023 | 8.7 |
Fiscal 2024 | 7.5 |
Fiscal 2025 | 6.9 |
Fiscal 2026 | 6.5 |
Fiscal 2027 | 6.1 |
Fiscal Years 2028 - 2032 | 26.6 |
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2023 | 2.7 |
Fiscal 2024 | 2.8 |
Fiscal 2025 | 2.9 |
Fiscal 2026 | 3 |
Fiscal 2027 | 3.1 |
Fiscal Years 2028 - 2032 | $ 17.6 |
Retirement Plans - Summary of P
Retirement Plans - Summary of Pension Plan Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at NAV | $ 1,440.5 | $ 2,262.7 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5,039.6 | 7,082.7 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value Investments | 3,599.1 | 4,820 | |
Assets measured at NAV | [1] | 1,440.5 | 2,262.7 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value Investments | 513.9 | 617.6 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value Investments | 3,085.2 | 4,202.4 | |
Fair Value, Measurements, Recurring [Member] | US Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 150.7 | 275.1 |
Fair Value, Measurements, Recurring [Member] | US Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 150.7 | 275.1 |
Fair Value, Measurements, Recurring [Member] | Non US Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 85.9 | 9.4 |
Fair Value, Measurements, Recurring [Member] | Non US Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 85.9 | 9.4 |
Fair Value, Measurements, Recurring [Member] | Non-US government securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 74.5 | 113.2 |
Fair Value, Measurements, Recurring [Member] | Non-US government securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 74.5 | 113.2 |
Fair Value, Measurements, Recurring [Member] | US Corporate Bonds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 2,173.7 | 2,987.8 |
Fair Value, Measurements, Recurring [Member] | US Corporate Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 95.4 | 137.6 |
Fair Value, Measurements, Recurring [Member] | US Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 2,078.3 | 2,850.2 |
Fair Value, Measurements, Recurring [Member] | Non-US corporate bonds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 545 | 511.1 |
Fair Value, Measurements, Recurring [Member] | Non-US corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 545 | 511.1 |
Fair Value, Measurements, Recurring [Member] | Other Fixed Income Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 223.1 | 435.5 |
Fair Value, Measurements, Recurring [Member] | Other Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 223.1 | 435.5 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [5] | 181.9 | 195.5 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [5] | 181.9 | 195.5 |
Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [6] | 164.3 | 292.4 |
Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | [6] | $ 164.3 | $ 292.4 |
[1] Investments that are measured at net asset value (“ NAV ”) (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. Equity securities are comprised of the following investment types: (i) common stock, (ii) preferred stock, and (iii) equity exchange traded funds. Level 1 investments in common and preferred stocks and exchange traded funds are valued using quoted market prices multiplied by the number of shares owned. The level 1 non-U.S. government securities investment is an exchange cleared swap valued using quoted market prices. The level 1 U.S. corporate bonds category is primarily comprised of U.S. dollar denominated investment grade securities and valued using quoted market prices. Level 2 investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data. Other fixed income is comprised of municipal and asset-backed securities. Investments are valued utilizing a market approach that includes various valuation techniques and sources, such as broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads and/or other applicable reference data. Short-term investments are valued at $ 1.00 /unit, which approximates fair value. Amounts are generally invested in interest-bearing accounts. U.S. government securities include treasury and agency debt. These investments are valued using broker quotes in an active market. |
Retirement Plans - Summary of_2
Retirement Plans - Summary of Pension Plan Assets Measured at Fair Value on Recurring Basis (Parenthetical) (Details) - $ / Unit | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Plans [Abstract] | ||
Short-term investments per units | 1 | 1 |
Retirement Plans - Summary of A
Retirement Plans - Summary of Assets Measured at Fair Value Based on NAV Per Share (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plans, Fair Value of Plan Assets | $ 1,440.5 | $ 2,262.7 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 199.7 | 171.7 | |
Hedge Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plans, Fair Value of Plan Assets | [1] | $ 26.4 | $ 38.9 |
Hedge Funds [Member] | Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | [1] | 30 days | 30 days |
Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plans, Fair Value of Plan Assets | [2] | $ 1,031.9 | $ 1,498.2 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | [2] | $ 199.7 | $ 171.7 |
Equity Securities [Member] | Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | [2] | 60 days | 60 days |
Fixed Income Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plans, Fair Value of Plan Assets | [3] | $ 382.2 | $ 725.6 |
Fixed Income Securities [Member] | Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | [3] | 10 days | 10 days |
[1] Hedge fund investments are primarily made through shares of limited partnerships or similar structures. Hedge funds are typically valued monthly by third-party administrators that have been appointed by the funds’ general partners. Commingled fund investments are valued at the NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques. Fixed income and fixed income related instruments consist of commingled debt funds, which are valued at their NAV per share multiplied by the number of shares held. The determination of NAV for the commingled funds includes market pricing of the underlying assets as well as broker quotes and other valuation techniques. |
Retirement Plans - Schedule o_8
Retirement Plans - Schedule of Health Care Cost Trend Rates (Details) - Other Postretirement Benefits Plan [Member] | 12 Months Ended |
Sep. 30, 2022 | |
United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Health care cost trend rate assumed for next year | 4.90% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4% |
Year the rate reaches the ultimate trend rate | 2047 |
Foreign Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Health care cost trend rate assumed for next year | 5.68% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.68% |
Year the rate reaches the ultimate trend rate | 2022 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
United States | $ 860.4 | $ 822.4 | $ (440.7) |
Foreign | 358.4 | 263.5 | (81.9) |
Income (loss) before income taxes | 1,218.8 | 1,085.9 | (522.6) |
Deferred income taxes: | |||
Total deferred (benefit) expense | (98.2) | (38.3) | 43 |
Total income tax expense | 269.6 | 243.4 | 163.5 |
Continuing Operations [Member] | |||
Current income taxes: | |||
Federal | 205.2 | 171.2 | 31.6 |
State | 44.9 | 27.2 | 23.5 |
Foreign | 116.1 | 78.4 | 66.8 |
Total current expense | 366.2 | 276.8 | 121.9 |
Deferred income taxes: | |||
Federal | (67.3) | (39) | 42.4 |
State | (16.2) | (10.2) | 6.2 |
Foreign | (13.1) | 15.8 | (7) |
Total deferred (benefit) expense | (96.6) | (33.4) | 41.6 |
Total income tax expense | $ 269.6 | $ 243.4 | $ 163.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes [Line Items] | ||||
Income taxes, cash paid net | $ 335.2 | $ 271.9 | $ 147.2 | |
Deferred income tax liabilities: | ||||
Operating Loss Carryforwards | $ 1.2 | 2.7 | ||
Operating loss carryforward expiration | Sep. 30, 2031 | |||
Deferred income tax assets: | ||||
Federal and foreign net operating loss carryforwards | $ 165.8 | 193.6 | ||
Undistributed Foreign Earnings | 1,200 | |||
Balance at end of fiscal year | 195.5 | 199.5 | 206.7 | $ 224.3 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 188.1 | 188.7 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 85 | 79.7 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 3.8 | 4.4 | $ 6.6 | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 30.1 | |||
State and Local Jurisdiction [Member] | ||||
Deferred income tax liabilities: | ||||
Operating Loss Carryforwards | 969 | 1,190 | ||
Operating Loss Carryforwards, Valuation Allowance | 17.7 | 20.4 | ||
Deferred income tax assets: | ||||
State net operating loss carryforwards | 43.6 | 57.5 | ||
Tax Credit Carryforward, Deferred Tax Asset | 89.7 | 84.9 | ||
Tax credit carryforward, valuation allowance | 81.1 | 76.3 | ||
Foreign Country [Member] | ||||
Deferred income tax liabilities: | ||||
Operating Loss Carryforwards | 667.2 | 779.1 | ||
Operating Loss Carryforwards, Valuation Allowance | 143.8 | 177.6 | ||
Deferred income tax assets: | ||||
Federal and foreign net operating loss carryforwards | $ 165.5 | $ 193 | ||
Minimum [Member] | State and Local Jurisdiction [Member] | ||||
Deferred income tax liabilities: | ||||
Operating loss carryforward expiration | Sep. 30, 2023 | |||
Tax Credit Carryforward, Years to Expiration | 5 years | |||
Minimum [Member] | Foreign Country [Member] | ||||
Deferred income tax liabilities: | ||||
Operating loss carryforward expiration | Sep. 30, 2023 | |||
Maximum [Member] | State and Local Jurisdiction [Member] | ||||
Deferred income tax liabilities: | ||||
Operating loss carryforward expiration | Sep. 30, 2041 | |||
Tax Credit Carryforward, Years to Expiration | 10 years | |||
Maximum [Member] | Foreign Country [Member] | ||||
Deferred income tax liabilities: | ||||
Operating loss carryforward expiration | Sep. 30, 2041 |
Income Taxes Effective Tax Rate
Income Taxes Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Income Taxes [Abstract] | |||||
Statutory federal tax rate | 21% | 21% | 21% | [1] | |
Foreign rate differential | 2.10% | 0.90% | (1.10%) | [1] | |
Adjustment and resolution of federal, state and foreign tax uncertainties | (0.40%) | 0.10% | 2.70% | [1] | |
State taxes, net of federal benefit | 1.60% | 2% | (0.30%) | [1] | |
Excess tax benefit related to stock compensation | 0.10% | 0.20% | (0.50%) | [1] | |
Research and development and other tax credits, net of reserves | (1.20%) | (0.50%) | 3.70% | [1] | |
(Loss) income attributable to noncontrolling interest | (0.10%) | 0.10% | 0.10% | [1] | |
Change in valuation allowance | 0.70% | 2.80% | (4.10%) | [1] | |
Goodwill impairment | [1] | (51.20%) | |||
Nontaxable increased cash surrender value | (1.10%) | 1.30% | [1] | ||
Withholding taxes | 0.50% | 0.20% | (0.70%) | [1] | |
Foreign derived intangible income | (1.00%) | (1.20%) | 1.30% | [1] | |
Deferred rate change | (0.60%) | (1.00%) | (1.80%) | [1] | |
Brazilian net worth deduction | (1.10%) | (0.70%) | 1.70% | [1] | |
Other, net | 0.50% | (0.40%) | (3.40%) | [1] | |
Effective tax rate | 22.10% | 22.40% | (31.30%) | [1] | |
[1] The negative tax rate for fiscal year 2020 is the result of applying total income tax expense to the loss before income taxes. The signs within the table are consequently the opposite compared to fiscal 2022 and 2021. |
Income Taxes Deferred Taxes (De
Income Taxes Deferred Taxes (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | |
Deferred income tax assets: | |||
Accruals and allowances | $ 6.7 | ||
Employee related accruals and allowances | $ 107.6 | 119 | |
State net operating loss carryforwards, net of federal benefit | 43.6 | 57.5 | |
State credit carryforwards, net of federal benefit | 89.7 | 84.9 | |
Federal and foreign net operating loss carryforwards | 165.8 | 193.6 | |
Restricted stock and options | 26.7 | 30.2 | |
Lease liabilities | 177.4 | 177.1 | |
Other | 44.6 | 42.1 | |
Deferred Tax Assets, Gross | 655.4 | 711.1 | |
Deferred income tax liabilities: | |||
Accruals and allowances | 9 | ||
Property, plant and equipment | 1,669.5 | 1,805.2 | |
Deductible intangibles and goodwill | 724.1 | 796.6 | |
Inventory reserves | 261.4 | 243.5 | |
Deferred gain | 272.8 | 272.8 | |
Basis difference in joint ventures | 35.9 | 32.9 | |
Pension | 2.7 | 36.3 | |
Right-of-use assets | 166.1 | 164.9 | |
Deferred Tax Liabilities, Gross | 3,141.5 | 3,352.2 | |
Valuation allowances | 248.8 | 277.5 | |
Net deferred income tax liability | 2,734.9 | 2,918.6 | |
Long-term deferred tax asset | [1] | 27 | 25.8 |
Long-term deferred tax liability | 2,761.9 | 2,944.4 | |
Net deferred income tax liability | $ 2,734.9 | $ 2,918.6 | |
[1] The long-term deferred tax asset is presented in Other assets on the consolidated balance sheets. |
Income Taxes Valuation Allowanc
Income Taxes Valuation Allowance Against Deferred Tax Assets (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Deferred Tax Asset Valuation Allowance [Roll Forward] | |||
Balance at beginning of fiscal year | $ 277.5 | $ 257.5 | $ 218 |
Increases | 12.3 | 22.2 | 46.2 |
Reductions | (41) | (2.2) | (6.7) |
Balance at end of fiscal year | $ 248.8 | $ 277.5 | $ 257.5 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at beginning of fiscal year | $ 199.5 | $ 206.7 | $ 224.3 | |
Additions for tax positions taken in current year | [1] | 1.8 | 2.7 | 5 |
Additions for tax positions taken in prior fiscal years | 27.6 | 10.8 | 11.7 | |
Reductions for tax positions taken in prior fiscal years | [1] | (16.7) | ||
Reductions due to settlement | (0.8) | |||
(Reductions) additions for currency translation adjustments | (1.1) | 1.5 | (8.8) | |
Reductions as a result of a lapse of the applicable statute of limitations | (31.5) | (22.2) | (8.8) | |
Balance at end of fiscal year | $ 195.5 | $ 199.5 | $ 206.7 | |
[1] R eductions taken in fiscal 2020 include primarily positions taken related to foreign subsidiaries. |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Oct. 01, 2021 | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) Segment | Sep. 30, 2021 USD ($) Segment | Sep. 30, 2020 USD ($) | Jul. 01, 2022 | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | Segment | 4 | 2 | ||||
Reduction of cost of goods sold | $ 5 | |||||
Insurance proceeds received, net cash used for investing activities | $ 1.7 | $ 3.2 | $ 6.5 | |||
Goodwill impairment loss | 1,333.2 | |||||
Increase in discount rate to estimate fair value of reporting unit | 1% | |||||
Reporting unit, percentage of fair value in excess of carrying value | 10% | |||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | |||||
Consumer Packaging [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | |||||
Corrugated Packaging [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | 15% | ||||
Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | |||||
Global Paper [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Reporting unit, percentage of fair value in excess of carrying value | 15% | |||||
Hurricane Michael [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Insurance proceeds related to extensive damage | 32.3 | |||||
Corrugated Packaging [Member] | Grupo Gondi Investment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 105.7 | $ 101.8 | 105.7 | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Amortizable Portion | $ 40.2 | $ 35.2 | $ 40.2 | |||
Corrugated Packaging [Member] | Grupo Gondi Investment [Member] | Minimum [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Lives of Underlying Assets | 10 years | |||||
Corrugated Packaging [Member] | Grupo Gondi Investment [Member] | Maximum [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Lives of Underlying Assets | 15 years | |||||
Corrugated Packaging [Member] | Hurricane Michael [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Insurance proceeds from business interruption recoveries | $ 11.7 | |||||
Gain on Business Interruption Insurance Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | |||||
Insurance proceeds for direct costs and property damage | $ 20.6 | |||||
Insurance proceeds received, net cash provided by operating activities | 30.9 | |||||
Insurance proceeds received, net cash used for investing activities | 1.4 | |||||
Corrugated Packaging [Member] | Hurricane Michael [Member] | Cost of Goods Sold [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Reduction of cost of goods sold | 20 | |||||
Global Paper Segment [Member] | Hurricane Michael [Member] | Cost of Goods Sold [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Reduction of cost of goods sold | 12.3 | |||||
Consumer Packaging [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill impairment loss | $ 1,333.2 |
Segment Information - Schedule
Segment Information - Schedule of Revenue from External Customers, Segment Income and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 21,256.5 | $ 18,746.1 | $ 17,578.8 |
Long-Lived Assets | 10,781 | 11,246.1 | 11,437.5 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 17,361.5 | 15,317.2 | 14,508.9 |
Long-Lived Assets | 9,278.2 | 9,654.6 | 9,962.5 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,325.1 | 1,210.4 | 1,124.7 |
Long-Lived Assets | 391.4 | 413 | 382.1 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,045.6 | 745.4 | 611.1 |
Long-Lived Assets | 719 | 725.8 | 639.9 |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,150.5 | 1,106 | 1,014 |
Long-Lived Assets | 320.4 | 364.9 | 362.8 |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 373.8 | 367.1 | 320.1 |
Long-Lived Assets | $ 72 | $ 87.8 | $ 90.2 |
Segment Information - Certain F
Segment Information - Certain Financial Data for Segments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 21,256.5 | $ 18,746.1 | $ 17,578.8 | |
Depreciation, depletion and amortization | (1,488.6) | (1,460) | (1,487) | |
Gain on sale of certain closed facilities | 18.6 | 0.9 | 15.6 | |
Multiemployer pension withdrawal (expense) income | (0.2) | 2.9 | 1.1 | |
Mineral rights impairment | (26) | |||
Restructuring and other costs | (401.6) | (31.5) | (112.7) | |
Goodwill impairment | (1,333.2) | |||
Non-allocated expenses | (82.6) | (68.1) | (73.3) | |
Interest expense, net | (318.8) | (372.3) | (393.5) | |
Loss on extinguishment of debt | (8.5) | (9.7) | (1.5) | |
Other (expense) income, net | (11) | 10.9 | 9.5 | |
Other adjustments | (4.5) | (54.5) | (33.1) | |
Income (loss) before income taxes | 1,218.8 | 1,085.9 | (522.6) | |
Depreciation, depletion and amortization | 1,488.6 | 1,460 | 1,487 | |
Other adjustments | 4.5 | 54.5 | 33.1 | |
Equity in income (loss) of unconsolidated entities | 72.9 | 40.9 | 15.8 | |
Assets | 28,405.5 | 29,254.3 | 28,779.7 | |
Goodwill | 5,895.2 | 5,959.2 | 5,962.2 | $ 7,285.6 |
Intangibles, net | 2,920.6 | 3,318.8 | 3,667.2 | |
Capital expenditures | 862.6 | 815.5 | 978.1 | |
Equity method investments | 480.4 | 453.3 | 429.6 | |
Assets Held for Sale [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 34.4 | 10.9 | 7 | |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 21,621.9 | 19,072.2 | 17,851.5 | |
Adjusted EBITDA | 3,542 | 3,067.3 | 2,885.5 | |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (365.4) | (326.1) | (272.7) | |
Corrugated Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 9,307.6 | 8,400.5 | 7,790.2 | |
Depreciation, depletion and amortization | 683 | 674.5 | 674.8 | |
Other adjustments | (4.8) | 13.3 | 6.3 | |
Equity in income (loss) of unconsolidated entities | 70.3 | 36.7 | 12.6 | |
Assets | 11,382.5 | 11,557.6 | 11,623.4 | |
Intangibles, net | 648.4 | 765.9 | 889.1 | |
Capital expenditures | 370.4 | 331.4 | 389.9 | |
Equity method investments | 479.3 | 434.4 | 414.2 | |
Corrugated Packaging [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 9,307.6 | 8,400.5 | 7,790.2 | |
Adjusted EBITDA | 1,386.7 | 1,394 | 1,474.2 | |
Corrugated Packaging [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (328) | (305.3) | (250) | |
Corrugated Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 8,979.6 | 8,095.2 | 7,540.2 | |
Consumer Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,965.2 | 4,433.9 | 4,190.4 | |
Goodwill impairment | (1,333.2) | |||
Depreciation, depletion and amortization | 349.5 | 352.2 | 345.4 | |
Other adjustments | 7.7 | 11.7 | 16.3 | |
Equity in income (loss) of unconsolidated entities | 3.4 | 4 | 2.8 | |
Assets | 6,704.5 | 6,757.3 | 6,535.8 | |
Intangibles, net | 1,523.5 | 1,719.2 | 1,857.6 | |
Capital expenditures | 202.1 | 192.7 | 140.2 | |
Equity method investments | 0.5 | 17.7 | 13.7 | |
Consumer Packaging [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,965.2 | 4,433.9 | 4,190.4 | |
Adjusted EBITDA | 829.2 | 720.8 | 660.7 | |
Consumer Packaging [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (27.8) | (20.3) | (20.2) | |
Consumer Packaging [Member] | Unaffiliated Customers [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,937.4 | 4,413.6 | 4,170.2 | |
Global Paper [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,930.2 | 4,983 | 4,749.6 | |
Depreciation, depletion and amortization | 425.1 | 405.9 | 439.1 | |
Other adjustments | (0.6) | 3.3 | 11.9 | |
Equity in income (loss) of unconsolidated entities | (0.8) | 0.2 | 0.4 | |
Assets | 7,039.2 | 7,527.6 | 7,549.5 | |
Intangibles, net | 612.6 | 677.7 | 744.6 | |
Capital expenditures | 238.6 | 259.4 | 417.8 | |
Equity method investments | 0.5 | 0.8 | 1.3 | |
Global Paper [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,930.2 | 4,983 | 4,749.6 | |
Adjusted EBITDA | 1,246.4 | 883.7 | 701.9 | |
Global Paper [Member] | Unaffiliated Customers [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,930.2 | 4,983 | 4,749.6 | |
Distribution [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,418.9 | 1,254.8 | 1,102.4 | |
Depreciation, depletion and amortization | 27.3 | 23.6 | 23.5 | |
Other adjustments | 0.6 | |||
Assets | 863 | 800.1 | 718.9 | |
Intangibles, net | 136.1 | 156 | 175.9 | |
Capital expenditures | 6.1 | 1.3 | 0.3 | |
Distribution [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,418.9 | 1,254.8 | 1,102.4 | |
Adjusted EBITDA | 79.7 | 68.8 | 48.7 | |
Distribution [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (9.6) | (0.5) | (2.5) | |
Distribution [Member] | Unaffiliated Customers [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,409.3 | 1,254.3 | 1,099.9 | |
Land and Development [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 18.9 | |||
Other adjustments | (1.4) | |||
Land and Development [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 18.9 | |||
Land and Development [Member] | Unaffiliated Customers [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 18.9 | |||
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion and amortization | 3.7 | 3.8 | 4.2 | |
Other adjustments | 2.2 | 25.6 | ||
Assets | 2,381.9 | 2,600.8 | 2,345.1 | |
Capital expenditures | 45.4 | 30.7 | 29.9 | |
Equity method investments | 0.1 | 0.4 | 0.4 | |
Legacy Reportable Corrugated Packaging Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 3,663.3 | 3,673.5 | 3,695 | |
Legacy Reportable Consumer Packaging Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment | (1,333.2) | |||
Goodwill | $ 2,295.9 | $ 2,288.7 | $ 3,590.6 | |
New Reportable Corrugated Packaging Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 2,802.8 | |||
New Reportable Consumer Packaging Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 1,588.4 | |||
New Reportable Global Paper Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 1,366.5 | |||
New Reportable Distribution Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 137.5 |
Segment Information - Changes i
Segment Information - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill, Gross beginning of fiscal year | $ 7,335.2 | $ 7,338.2 | $ 7,328.4 |
Accumulated impairment losses, beginning of period | (1,376) | (1,376) | (42.8) |
Goodwill, beginning of fiscal year | 5,959.2 | 5,962.2 | 7,285.6 |
Goodwill acquired | 3.2 | ||
Goodwill impairment | (1,333.2) | ||
Goodwill disposed of | (16.4) | (0.3) | |
Purchase price allocation adjustments | 13.7 | ||
Translation adjustments | (67.2) | 13.4 | (3.6) |
Goodwill, Gross end of fiscal year | 7,335.2 | 7,338.2 | |
Accumulated impairment losses, end of period | (1,376) | (1,376) | |
Goodwill, end of fiscal year | 5,895.2 | 5,959.2 | 5,962.2 |
Legacy Reportable Corrugated Packaging Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross beginning of fiscal year | 3,663.4 | 3,673.6 | 3,695.1 |
Accumulated impairment losses, beginning of period | (0.1) | (0.1) | (0.1) |
Goodwill, beginning of fiscal year | 3,663.3 | 3,673.5 | 3,695 |
Goodwill disposed of | (16.4) | ||
Purchase price allocation adjustments | 14.3 | ||
Segment recasting | (3,663.3) | ||
Translation adjustments | 6.2 | (35.8) | |
Goodwill, Gross end of fiscal year | 3,663.4 | 3,673.6 | |
Accumulated impairment losses, end of period | (0.1) | (0.1) | |
Goodwill, end of fiscal year | 3,663.3 | 3,673.5 | |
Legacy Reportable Consumer Packaging Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross beginning of fiscal year | 3,671.8 | 3,664.6 | 3,633.3 |
Accumulated impairment losses, beginning of period | (1,375.9) | (1,375.9) | (42.7) |
Goodwill, beginning of fiscal year | 2,295.9 | 2,288.7 | 3,590.6 |
Goodwill impairment | (1,333.2) | ||
Goodwill disposed of | (0.3) | ||
Purchase price allocation adjustments | (0.6) | ||
Segment recasting | (2,295.9) | ||
Translation adjustments | 7.2 | 32.2 | |
Goodwill, Gross end of fiscal year | 3,671.8 | 3,664.6 | |
Accumulated impairment losses, end of period | (1,375.9) | (1,375.9) | |
Goodwill, end of fiscal year | $ 2,295.9 | $ 2,288.7 | |
New Reportable Corrugated Packaging Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill acquired | 3.2 | ||
Segment recasting | 2,834.8 | ||
Translation adjustments | (35.2) | ||
Goodwill, end of fiscal year | 2,802.8 | ||
New Reportable Consumer Packaging Segment [Member] | |||
Goodwill [Roll Forward] | |||
Segment recasting | 1,603.3 | ||
Translation adjustments | (14.9) | ||
Goodwill, end of fiscal year | 1,588.4 | ||
New Reportable Global Paper Segment [Member] | |||
Goodwill [Roll Forward] | |||
Segment recasting | 1,382 | ||
Translation adjustments | (15.5) | ||
Goodwill, end of fiscal year | 1,366.5 | ||
New Reportable Distribution Segment [Member] | |||
Goodwill [Roll Forward] | |||
Segment recasting | 139.1 | ||
Translation adjustments | (1.6) | ||
Goodwill, end of fiscal year | $ 137.5 |
Interest - Summary of Component
Interest - Summary of Components of Interest Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest Income (Expense), Net [Abstract] | |||
Interest expense | $ (375.6) | $ (418.9) | $ (465.5) |
Interest income | 56.8 | 46.6 | 72 |
Interest expense, net | $ (318.8) | $ (372.3) | $ (393.5) |
Interest - Additional Informati
Interest - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest Income (Expense), Net [Abstract] | |||
Interest, net of amounts capitalized | $ 363.9 | $ 384.7 | $ 423.4 |
Interest costs, capitalized during period | $ 11.1 | $ 14 | $ 24.6 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Inventories [Abstract] | ||
Finished goods and work in process | $ 1,102.4 | $ 972.7 |
Raw materials | 1,135.9 | 888.1 |
Supplies and spare parts | 529.6 | 536.4 |
Inventories at FIFO cost | 2,767.9 | 2,397.2 |
LIFO reserve | (450.8) | (223.9) |
Net inventories | $ 2,317.1 | $ 2,173.3 |
Inventories - Additional Inform
Inventories - Additional Information (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Inventories [Abstract] | |
Increase in cost of goods sold and LIFO reserve due to inflation | $ 226.9 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, plant and equipment at cost: | |||
Property, plant and equipment, at cost | $ 19,462.2 | $ 18,719.1 | |
Less: accumulated depreciation, depletion and amortization | (9,380.8) | (8,149) | |
Property, plant and equipment, net | 10,081.4 | 10,570.1 | |
Land and Buildings [Member] | |||
Property, plant and equipment at cost: | |||
Property, plant and equipment, at cost | 2,646.4 | 2,626 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment at cost: | |||
Property, plant and equipment, at cost | 16,592.5 | 15,853.1 | |
Forestlands and Mineral Rights [Member] | |||
Property, plant and equipment at cost: | |||
Property, plant and equipment, at cost | [1] | 95.7 | 120 |
Transportation Equipment [Member] | |||
Property, plant and equipment at cost: | |||
Property, plant and equipment, at cost | 24.2 | 26.1 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment at cost: | |||
Property, plant and equipment, at cost | $ 103.4 | $ 93.9 | |
[1] In fiscal 2022, we recorded a $ 26.0 million pre-tax non-cash impairment of certain mineral rights. With the impairment, we have no remaining mineral rights. |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Parenthetical) (Details) | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |
Pre-tax non-cash impairment | $ 26,000,000 |
Mineral rights | 0 |
Mineral Rights [Member] | |
Property, Plant and Equipment [Line Items] | |
Pre-tax non-cash impairment | $ 26,000,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 1,108.1 | $ 1,069.7 | $ 1,054.9 |
Accrued additions to property, plant and equipment (in accounts payable) | $ 223.2 | $ 108.5 | $ 85 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Gross Carrying Amount and Accumulated Amortization Relating to Intangible Assets, Excluding Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Weighted Avg. Life (in years) | 15 years 8 months 12 days | |
Gross Carrying Amount | $ 4,999.3 | $ 5,089 |
Accumulated Amortization | $ (2,078.7) | (1,770.2) |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Avg. Life (in years) | 15 years 7 months 6 days | |
Gross Carrying Amount | $ 4,888.5 | 4,963 |
Accumulated Amortization | $ (2,038.1) | (1,724.3) |
Trademarks and Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Avg. Life (in years) | 22 years 6 months | |
Gross Carrying Amount | $ 80.7 | 80.4 |
Accumulated Amortization | $ (26.2) | (20.9) |
Technology and Patents [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Avg. Life (in years) | 11 years 9 months 18 days | |
Gross Carrying Amount | $ 24.4 | 23.5 |
Accumulated Amortization | $ (12.9) | (9.4) |
Licensing Costs [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Avg. Life (in years) | 15 years 9 months 18 days | |
Gross Carrying Amount | $ 0.3 | 16.2 |
Accumulated Amortization | $ (0.1) | (15.1) |
Noncompete Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Avg. Life (in years) | 2 years | |
Gross Carrying Amount | $ 1.9 | 1.9 |
Accumulated Amortization | $ (1.1) | (0.2) |
Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Avg. Life (in years) | 29 years 6 months | |
Gross Carrying Amount | $ 3.5 | 4 |
Accumulated Amortization | $ (0.3) | $ (0.3) |
Other Intangible Assets - Estim
Other Intangible Assets - Estimated Intangible Asset Amortization Expense (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Other Intangible Assets [Abstract] | |
Fiscal 2023 | $ 340.2 |
Fiscal 2024 | 318.8 |
Fiscal 2025 | 304.1 |
Fiscal 2026 | 296.7 |
Fiscal 2027 | $ 292.9 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Intangible Assets [Abstract] | |||
Intangible Assets Amortization Expense | $ 351.1 | $ 360.6 | $ 405.4 |
Other Intangible Assets Amortization Expense | $ 29.4 | $ 29.7 | $ 26.7 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) | 12 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 16, 2022 | Dec. 02, 2021 | Dec. 01, 2021 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Maximum eligible receivables that may be sold | $ 700,000,000 | $ 110,000,000 | $ 88,500,000 | |||
Receivables sold under accounts receivable sales agreement | $ 724,700,000 | $ 665,900,000 | ||||
Estimated loss on sale of accounts receivable in a fiscal year | 20,400,000 | 11,100,000 | $ 12,700,000 | |||
Goodwill impairment loss | 1,333,200,000 | |||||
Pre-tax non-cash impairment | 26,000,000 | |||||
Mineral rights | 0 | |||||
Mineral Rights [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Pre-tax non-cash impairment | $ 26,000,000 | |||||
Consumer Packaging [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Goodwill impairment loss | $ 1,333,200,000 | |||||
Grupo Gondi Investment [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Charge on not exercising option to purchase additional equity interest in joint venture | $ 22,500,000 |
Fair Value - Summary of Account
Fair Value - Summary of Accounts Receivable Sales Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | ||
Receivables sold to the financial institutions and derecognized | $ (2,954.8) | $ (2,732.2) |
Receivables collected by financial institutions | 2,896 | 2,655.6 |
Cash proceeds from financial institutions | $ 58.8 | $ 76.6 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Value and Weighted Average Interest Rate of Individual Components of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 7,787.2 | $ 8,194.1 |
Less: current portion of debt | 212.2 | 168.8 |
Long-term debt due after one year | $ 7,575 | $ 8,025.3 |
Debt, Weighted Average Interest Rate | 4.20% | 4% |
Notes Due Fiscal 2023 to 2028 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3,433.4 | $ 3,778.2 |
Debt, Weighted Average Interest Rate | 4% | 4% |
Notes Due Fiscal 2029 to 2033 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,753.3 | $ 2,766.5 |
Debt, Weighted Average Interest Rate | 4.50% | 4.50% |
Notes Due Fiscal 2037 to 2047 [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 177.8 | $ 178.2 |
Debt, Weighted Average Interest Rate | 6.20% | 6.20% |
Term Loan Facilities [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 598.2 | $ 598.9 |
Debt, Weighted Average Interest Rate | 3.10% | 3% |
Revolving Credit and Swing Facilities [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 286.3 | $ 270 |
Debt, Weighted Average Interest Rate | 1.90% | 1.10% |
Finance Lease Obligations [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 287.5 | $ 264.1 |
Debt, Weighted Average Interest Rate | 4.20% | 4.10% |
Vendor Financing and Commercial Card Programs [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 123.1 | $ 113.1 |
International and Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 127.6 | $ 225.1 |
Debt, Weighted Average Interest Rate | 12.80% | 4.80% |
Debt - Additional Information (
Debt - Additional Information (Details) € in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
Aug. 18, 2022 USD ($) | Jul. 07, 2022 USD ($) | Jul. 07, 2022 EUR (€) | Mar. 22, 2022 USD ($) | Sep. 10, 2021 USD ($) | Mar. 12, 2021 USD ($) | Feb. 26, 2021 | Jan. 18, 2021 BRL (R$) | Sep. 27, 2019 USD ($) | Jun. 07, 2019 USD ($) | Apr. 10, 2019 BRL (R$) | Dec. 07, 2018 USD ($) | Mar. 07, 2018 | Jun. 30, 2020 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2022 MXN ($) | Sep. 30, 2022 BRL (R$) | Jul. 27, 2022 | Jul. 07, 2022 EUR (€) | Jun. 30, 2022 USD ($) | Sep. 30, 2021 BRL (R$) | |
Debt Instrument [Line Items] | |||||||||||||||||||||||
Loss on extinguishment of debt | $ (8,500,000) | $ (9,700,000) | $ (1,500,000) | ||||||||||||||||||||
Weighted average interest rate excluding fair value step-up | 4.50% | 4.50% | 4.50% | ||||||||||||||||||||
Unamortized fair market value step-up | $ 175,100,000 | ||||||||||||||||||||||
Unamortized fair market value step-up, weighted average remaining life | 9 years 9 months 18 days | ||||||||||||||||||||||
Letters of credit outstanding, amount | $ 57,100,000 | ||||||||||||||||||||||
Fair value of debt | 7,300,000,000 | 9,000,000,000 | |||||||||||||||||||||
Amortization of debt issuance costs | $ 7,300,000 | $ 8,300,000 | 8,200,000 | ||||||||||||||||||||
Debt, Weighted Average Interest Rate | 4.20% | 4% | 4.20% | 4.20% | 4% | ||||||||||||||||||
Grupo Gondi [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Percentage of remaining interest acquired | 67.70% | ||||||||||||||||||||||
Foreign Exchange Contract [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Amount of foreign exchange contracts | $ 389,900,000 | $ 270,200,000 | $ 8,000,000,000 | ||||||||||||||||||||
Senior Unsecured Debt [Member] | U.S. Revolving Facility [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | $ 1,800,000,000 | ||||||||||||||||||||||
Senior Unsecured Debt [Member] | Multicurrency Revolving Facility [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | 500,000,000 | ||||||||||||||||||||||
4.00% Senior Notes Due March 2023 [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Redemption amount of long term debt | $ 350,000,000 | ||||||||||||||||||||||
Debt instrument, interest rate | 4% | ||||||||||||||||||||||
Debt instrument maturity period in Month and year | 2023-03 | ||||||||||||||||||||||
Loss on extinguishment of debt | $ (8,200,000) | ||||||||||||||||||||||
4.900% Senior Notes Due March 2022 [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Redemption amount of long term debt | $ 400,000,000 | ||||||||||||||||||||||
Debt instrument, interest rate | 4.90% | ||||||||||||||||||||||
Debt instrument maturity period in Month and year | 2022-03 | ||||||||||||||||||||||
Loss on extinguishment of debt | $ (8,600,000) | ||||||||||||||||||||||
Long-Term Committed Credit Facilities [Member] | Cash and Cash Equivalents [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Line of credit facility, remaining borrowing capacity and cash and cash equivalents | 3,700,000,000 | ||||||||||||||||||||||
Public Bond Obligations [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, aggregate principal amount | 6,200,000,000 | 6,600,000,000 | |||||||||||||||||||||
Senior Notes due June 2033 [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, interest rate | 3% | ||||||||||||||||||||||
Debt instrument, aggregate principal amount | $ 600,000,000 | ||||||||||||||||||||||
Debt instrument, maturity year | 2033 | ||||||||||||||||||||||
Notes due June 2020 [Member] | Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, interest rate | 9.75% | ||||||||||||||||||||||
Prepayment of outstanding principal amount | $ 100,000,000 | ||||||||||||||||||||||
Revolving Credit Facility [Member] | Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Termination of credit facility | 2,300,000,000 | ||||||||||||||||||||||
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | $ 2,300,000,000 | ||||||||||||||||||||||
Debt instrument, term, in years | 5 years | 5 years | |||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | SOFR Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit spread adjustment | 0.10% | 0.10% | |||||||||||||||||||||
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Percentage of fee paid on unused credit facility | 0.225% | 0.225% | |||||||||||||||||||||
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | SONIA Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 1.50% | 1.50% | |||||||||||||||||||||
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | Canadian Prime Rate Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0.50% | 0.50% | |||||||||||||||||||||
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Percentage of fee paid on unused credit facility | 0.08% | 0.08% | |||||||||||||||||||||
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | SONIA Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0.875% | 0.875% | |||||||||||||||||||||
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | Canadian Prime Rate Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0% | 0% | |||||||||||||||||||||
Prior Revolving Credit Facility [Member] | Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Cooperatieve Rabobank U.A., New York Branch European Revolving Credit Facility [Member] | Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Termination of credit facility | € | € 600 | ||||||||||||||||||||||
Long-term debt | 270,000,000 | ||||||||||||||||||||||
Debt instrument, maturity period | 3 years | ||||||||||||||||||||||
Receivables Securitization Facility [Member] | Secured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, maximum borrowing capacity, amount | 700,000,000 | 690,300,000 | |||||||||||||||||||||
Long-term debt | $ 0 | $ 0 | |||||||||||||||||||||
Receivables backed financing, maximum borrowing amount | $ 700,000,000 | ||||||||||||||||||||||
Debt instrument, amended maturity date | Mar. 11, 2024 | ||||||||||||||||||||||
Restriction on Exclusion of Eligible Receivables of Specific Obligors, Aggregate Maximum Percentage | 7.50% | ||||||||||||||||||||||
Restriction on Exclusion of Eligible Receivables of Specific Obligors, Obligor Maximum Percentage of Aggregate Balance | 2.50% | ||||||||||||||||||||||
Asset Securitization Facility Commitment Fee Percentage | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | ||||||||||||||||||
Receivables Securitization Facility [Member] | Secured Debt [Member] | LIBOR [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0.90% | ||||||||||||||||||||||
Variable rate basis | one-month LIBOR | ||||||||||||||||||||||
Receivables Securitization Facility [Member] | Collateralizing [Member] | Secured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Carrying amount of accounts receivable collateralizing maximum available borrowings | $ 1,390,500,000 | $ 1,318,400,000 | |||||||||||||||||||||
Commercial Paper | Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate Principal Amount of Short-term Unsecured Commercial Paper Program, Maximum | $ 1,000,000,000 | ||||||||||||||||||||||
Debt Instrument, notice period for termination | 30 days | ||||||||||||||||||||||
Borrowings outstanding | 0 | 0 | |||||||||||||||||||||
Commercial Paper | Unsecured Debt [Member] | Maximum [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, maturity period | 397 days | ||||||||||||||||||||||
Wells Fargo Bank NA Credit Facility [Member] | Terminated Unsecured Term Loan Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt | $ 648,900,000 | ||||||||||||||||||||||
Debt instrument, maturity period | 5 years | ||||||||||||||||||||||
Bank of America Five Year Term Loan [Member] | Terminated Unsecured Term Loan Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | 300,000,000 | ||||||||||||||||||||||
Bank of America Five Year Term Loan [Member] | Unsecured [Member] | Terminated Unsecured Term Loan Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | $ 300,000,000 | ||||||||||||||||||||||
Credit facility, maturity date | Jun. 07, 2024 | ||||||||||||||||||||||
Debt instrument, maturity period | 5 years | ||||||||||||||||||||||
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | € | € 700 | ||||||||||||||||||||||
Long-term debt | 265,000,000 | ||||||||||||||||||||||
Incremental line of credit | € | € 100 | ||||||||||||||||||||||
Debt instrument, maturity period | 3 years | 3 years | |||||||||||||||||||||
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | SOFR Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit spread adjustment | 0.10% | 0.10% | |||||||||||||||||||||
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Percentage of fee paid on unused credit facility | 0.275% | 0.275% | |||||||||||||||||||||
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | SONIA Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 1.625% | 1.625% | |||||||||||||||||||||
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | Base Rate [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0.625% | 0.625% | |||||||||||||||||||||
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Percentage of fee paid on unused credit facility | 0.10% | 0.10% | |||||||||||||||||||||
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | SONIA Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0.875% | 0.875% | |||||||||||||||||||||
European Revolving Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | Base Rate [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0% | 0% | |||||||||||||||||||||
Prior Farm Loan Credit Facility [Member] | Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | $ 600,000,000 | ||||||||||||||||||||||
Debt instrument, term, in years | 7 years | ||||||||||||||||||||||
Long-term debt | 598,900,000 | ||||||||||||||||||||||
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | $ 600,000,000 | ||||||||||||||||||||||
Debt instrument, term, in years | 7 years | 7 years | |||||||||||||||||||||
Long-term debt | 598,200,000 | ||||||||||||||||||||||
Credit facility, amount of potential increase to the principal amount | $ 400,000,000 | ||||||||||||||||||||||
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | SOFR Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit spread adjustment | 0.10% | 0.10% | |||||||||||||||||||||
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | SOFR Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 2.275% | 2.275% | |||||||||||||||||||||
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | Maximum [Member] | Base Rate [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 1.275% | 1.275% | |||||||||||||||||||||
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | SOFR Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 1.65% | 1.65% | |||||||||||||||||||||
Farm Credit Facility [Member] | Senior Unsecured Debt [Member] | Minimum [Member] | Base Rate [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0.65% | 0.65% | |||||||||||||||||||||
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | Grupo Gondi [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Percentage of remaining interest acquired | 67.70% | ||||||||||||||||||||||
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | SOFR Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit spread adjustment | 0.10% | ||||||||||||||||||||||
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | SOFR Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 1.50% | ||||||||||||||||||||||
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | Base Rate [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0.50% | ||||||||||||||||||||||
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | SOFR Loans [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0.875% | ||||||||||||||||||||||
Delayed Draw Term Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | Base Rate [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Applicable margin | 0% | ||||||||||||||||||||||
Brazil Export Credit Note [Member] | Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | R$ | R$ 500000000.0 | ||||||||||||||||||||||
Credit facility, maturity date | Jan. 19, 2026 | ||||||||||||||||||||||
Long-term debt | $ 92,700,000 | 92,300,000 | R$ 500000000.0 | R$ 500000000.0 | |||||||||||||||||||
Credit facility semiannual installments repayment beginning date | Jan. 19, 2023 | ||||||||||||||||||||||
Credit facility basis spread on floating rate | 2.50% | ||||||||||||||||||||||
Brazil Delayed Draw Credit Facilities [Member] | Unsecured Debt [Member] | Terminated [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Credit Facility, maximum borrowing capacity | R$ | R$ 750000000.0 | ||||||||||||||||||||||
Credit facility, maturity date | Apr. 10, 2024 | ||||||||||||||||||||||
Long-term debt | $ 118,000,000 | R$ 639200000 | |||||||||||||||||||||
Incremental line of credit | R$ | R$ 250000000.0 | ||||||||||||||||||||||
Credit facility semiannual installments repayment beginning date | Apr. 10, 2021 | ||||||||||||||||||||||
Credit facility basis spread on floating rate | 1.50% |
Debt - Schedule of Aggregate Ma
Debt - Schedule of Aggregate Maturities of Debt (Details) - Long-term Debt, Excluding Finance Lease Obligations [Member] $ in Millions | Sep. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
Fiscal 2023 | $ 178.6 |
Fiscal 2024 | 529 |
Fiscal 2025 | 893.8 |
Fiscal 2026 | 765.1 |
Fiscal 2027 | 501.1 |
Thereafter | 4,498.5 |
Fair value of debt step-up, deferred financing costs and unamortized bond discounts | 133.6 |
Total | $ 7,499.7 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lease, Cost [Abstract] | |||
Operating lease costs | $ 218.1 | $ 211 | $ 201.2 |
Variable and short-term lease costs | 122.8 | 104.6 | 105.5 |
Sublease income | (6.1) | (8.9) | (6.7) |
Finance lease cost: | |||
Amortization of lease assets | 15.1 | 9.6 | 10.5 |
Interest on lease liabilities | 7.9 | 7.2 | 7.9 |
Total lease cost, net | $ 357.8 | $ 323.5 | $ 318.4 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Supplementary Information Balance Sheets [Abstract] | ||
Operating lease right-of-use asset | $ 699.6 | $ 676 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Current operating lease liabilities | $ 191.9 | $ 177.9 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Noncurrent operating lease liabilities | $ 551.1 | $ 537.9 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Total operating lease liabilities | $ 743 | $ 715.8 |
Property, plant and equipment | 177.4 | 143.2 |
Accumulated depreciation | (37.3) | (28.3) |
Property, plant and equipment, net | 140.1 | 114.9 |
Current finance lease liabilities | $ 14.5 | $ 8.7 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of debt | Current portion of debt |
Noncurrent finance lease liabilities | $ 273 | $ 255.4 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt due after one year | Long-term debt due after one year |
Total finance lease liabilities | $ 287.5 | $ 264.1 |
Leases - Summary of Lease Term
Leases - Summary of Lease Term and Discount Rate (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Weighted average remaining lease term: | ||
Operating leases | 5 years | 5 years 4 months 24 days |
Finance leases | 7 years 3 months 18 days | 8 years 3 months 18 days |
Weighted average discount rate: | ||
Operating leases | 2.70% | 2.40% |
Finance leases | 4.20% | 4.10% |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows related to operating leases | $ 214.8 | $ 227 |
Operating cash flows related to finance leases | 8.8 | 8.3 |
Financing cash flows related to finance leases | 14.8 | 9.1 |
ROU assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 184.6 | $ 160.9 |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Lease Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | |
Maturity Of Lease Liabilities [Abstract] | |||
Operating Leases, Fiscal 2023 | $ 208.9 | ||
Operating Leases, Fiscal 2024 | 174.8 | ||
Operating Leases, Fiscal 2025 | 134.3 | ||
Operating Leases, Fiscal 2026 | 101.2 | ||
Operating Leases, Fiscal 2027 | 72.4 | ||
Operating Leases, Thereafter | 109.3 | ||
Operating Leases, Total lease payments | 800.9 | ||
Operating Leases, Less: Interest | [1] | (57.9) | |
Operating Leases, Present value of future lease payments | 743 | $ 715.8 | |
Finance Leases, Fiscal 2023 | 21.7 | ||
Finance Leases, Fiscal 2024 | 20.9 | ||
Finance Leases, Fiscal 2025 | 19.7 | ||
Finance Leases, Fiscal 2026 | 16.8 | ||
Finance Leases, Fiscal 2027 | 95.8 | ||
Finance Leases, Thereafter | 186.3 | ||
Finance Leases, Total lease payments | 361.2 | ||
Finance Leases, Less: Interest | [1] | (73.7) | |
Finance Leases, Present value of future lease payments | 287.5 | $ 264.1 | |
Fiscal 2023 | 230.6 | ||
Fiscal 2024 | 195.7 | ||
Fiscal 2025 | 154 | ||
Fiscal 2026 | 118 | ||
Fiscal 2027 | 168.2 | ||
Thereafter | 295.6 | ||
Total lease payments | 1,162.1 | ||
Less: Interest | [1] | (131.6) | |
Present value of future lease payments | $ 1,030.5 | ||
[1] Calculated using the interest rate for each lease. |
Special Purpose Entities - Addi
Special Purpose Entities - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 06, 2013 | Dec. 31, 2007 |
Debt Instrument [Line Items] | ||||
Restricted assets held by special purpose entities | $ 1,253 | $ 1,260.5 | ||
Non-recourse liabilities held by special purpose entities | $ 1,117.8 | $ 1,127.3 | ||
Installment Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes Receivable Interest Rate | 5.207% | |||
MeadWestvaco [Member] | Timber Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Restricted assets held by special purpose entities | $ 379.4 | $ 398 | ||
MeadWestvaco [Member] | Secured Financing Liability, Maturity in October 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Non-recourse liabilities held by special purpose entities | 329.5 | $ 338.3 | ||
MeadWestvaco [Member] | Installment Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Restricted assets held by special purpose entities | 873.6 | $ 860 | ||
MeadWestvaco [Member] | Secured Financing Liability, Maturity in December 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Non-recourse liabilities held by special purpose entities | $ 788.3 | $ 774 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Affiliated Entity [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | |||
Net sales to affiliated companies | $ 238.5 | $ 237.7 | $ 311.5 |
Accounts receivable due from affiliated companies | $ 27.2 | $ 33.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) R$ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) Lawsuit Country Subsidiary | Sep. 30, 2022 BRL (R$) Subsidiary | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Apr. 30, 2020 USD ($) | Feb. 29, 2020 USD ($) | Oct. 31, 2019 USD ($) | |
Commitments and Contingencies [Line Items] | ||||||||
Accrual for Environmental Loss Contingencies | $ 7,400,000 | |||||||
Number of countries | Country | 170 | |||||||
Guarantor Obligations, Current Carrying Value | $ 2,300,000 | $ 800,000 | $ 2,300,000 | |||||
Reduction of cost of goods sold | $ 5,000,000 | |||||||
Brazil Administrative Council of Tax Appeals [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Claimed tax deficiency including penalties and interest | $ 136,000,000 | R$ 732 | ||||||
Tax claim and conversion description | The matter has proceeded through the Brazil Administrative Council of Tax Appeals (“CARF”) principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. | The matter has proceeded through the Brazil Administrative Council of Tax Appeals (“CARF”) principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. | ||||||
Income tax settlement claim liability | $ 0 | |||||||
Tax claim and conversion, tax penalties relating to tax years description | 2009 to 2012 | 2009 to 2012 | ||||||
Brazil Indirect Tax Claim [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Indirect tax claim - receivable for expected recovery and interest | $ 51,900,000 | |||||||
Reduction of cost of goods sold | 600,000 | 32,100,000 | ||||||
Indirect tax claim - reduction of interest expense, net | $ 300,000 | $ 20,500,000 | ||||||
Brazil [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Number of subsidiaries | Subsidiary | 2 | 2 | ||||||
Asbestos Litigation [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Number of Lawsuits the Company Has Been Named a Defendant in Asbestos-related Personal Injury Litigation | Lawsuit | 2,075 | |||||||
Amount reserved for litigation | $ 12,900,000 | |||||||
Pace Industry Union Management Pension Fund [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Withdrawal obligation accumulated funding deficiency | $ 51,200,000 | |||||||
Pace Industry Union Management Pension Fund [Member] | Subsidiary [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Withdrawal obligation accumulated funding deficiency | $ 1,300,000 | $ 2,000,000 | ||||||
Maximum [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Guarantor Obligations, Estimated Exposure, Undiscounted | 50,000,000 | |||||||
Other Long Term Liabilities [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Accrual for Environmental Loss Contingencies | 1,500,000 | |||||||
Other Current Liabilities [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Accrual for Environmental Loss Contingencies | 5,900,000 | |||||||
Capital Addition Purchase Commitments [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Long-term Purchase Commitment, Estimated Amount | $ 371,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Statutory tax rate | 21% | 21% | 21% | [1] |
Derivative liabilities current, fair value | $ 12 | |||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | |||
Derivative asset offset with liability positions by counterparty | $ 2.3 | |||
Jurisdictional Statutory Rates [Member] | Maximum [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Statutory tax rate | 26% | 26% | 29% | |
Jurisdictional Statutory Rates [Member] | Minimum [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Statutory tax rate | 25% | 25% | 28% | |
Natural Gas [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 18.3 | |||
Net Realized losses in cost of good sold | $ 1.8 | |||
Natural Gas [Member] | Maximum [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Derivative hedging volume period | 12 months | |||
[1] The negative tax rate for fiscal year 2020 is the result of applying total income tax expense to the loss before income taxes. The signs within the table are consequently the opposite compared to fiscal 2022 and 2021. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | [1] | $ (999.1) | $ (1,319.9) | |||
Other comprehensive (loss) income before reclassifications | [1] | (468.6) | 285.8 | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | 13.4 | 35 | |||
Net current period other comprehensive (loss) income | (455.2) | [1] | 320.8 | [1] | $ (177.3) | |
Balance at end of period | [1] | (1,454.3) | (999.1) | (1,319.9) | ||
Accumulated Net Gain (Loss) from Designated or Quality Cash Flow Hedges [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | (0.2) | (5.6) | ||||
Other comprehensive (loss) income before reclassifications | (10.3) | (0.1) | ||||
Amounts reclassified from accumulated other comprehensive loss | 1.4 | 5.5 | ||||
Net current period other comprehensive (loss) income | (8.9) | 5.4 | ||||
Balance at end of period | (9.1) | (0.2) | (5.6) | |||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | (536.5) | (727.7) | ||||
Other comprehensive (loss) income before reclassifications | (217.1) | 161.7 | ||||
Amounts reclassified from accumulated other comprehensive loss | 12 | 29.5 | ||||
Net current period other comprehensive (loss) income | (205.1) | 191.2 | ||||
Balance at end of period | (741.6) | (536.5) | (727.7) | |||
Accumulated Translation Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance at beginning of period | (462.4) | (586.6) | ||||
Other comprehensive (loss) income before reclassifications | (241.2) | 124.2 | ||||
Net current period other comprehensive (loss) income | (241.2) | 124.2 | ||||
Balance at end of period | $ (703.6) | $ (462.4) | $ (586.6) | |||
[1] All amounts are net of tax and noncontrolling interest. |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) - Summary of Reclassification out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net actuarial loss, Pre-Tax Amount | $ 8.4 | $ 33.9 | $ 48.3 | |
Amortization of net actuarial loss, Tax | 2 | 8.4 | 12.9 | |
Amortization and settlement recognition of net actuarial loss, included in pension cost | 6.4 | 25.5 | 35.4 | |
Amortization of prior service credits (costs), Pre-Tax Amount | 8.2 | 6 | 5.1 | |
Amortization of prior service credits (costs), Tax | (2.1) | (1.5) | (1.3) | |
Amortization of prior service credits (costs), Net of Tax | 6.1 | 4.5 | 3.8 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 1.8 | 7.4 | 4.9 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (0.4) | (1.9) | (1.3) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 1.4 | 5.5 | $ 3.6 | |
Parent [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net actuarial loss, Pre-Tax Amount | [1],[2] | (7.8) | (33.3) | |
Amortization of net actuarial loss, Tax | [1],[2] | 1.9 | 8.3 | |
Amortization and settlement recognition of net actuarial loss, included in pension cost | [1],[2] | (5.9) | (25) | |
Amortization of prior service credits (costs), Pre-Tax Amount | [1],[2] | (8.2) | (6) | |
Amortization of prior service credits (costs), Tax | [1],[2] | 2.1 | 1.5 | |
Amortization of prior service credits (costs), Net of Tax | [1],[2] | (6.1) | (4.5) | |
Defined Benefit Plans, before Tax | [1] | (16) | (39.3) | |
Defined Benefit Plans, Tax | [1] | 4 | 9.8 | |
Defined Benefit Plans, Net of Tax | [1] | (12) | (29.5) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [1] | (1.8) | (7.4) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | [1] | 0.4 | 1.9 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | [1] | (1.4) | (5.5) | |
Total Reclassifications From Other Comprehensive Income Before Tax | [1] | (17.8) | (46.7) | |
Total Reclassifications From Other Comprehensive Income Tax Portion | [1] | 4.4 | 11.7 | |
Total Reclassifications From Other Comprehensive Income Net of Tax | [1] | (13.4) | (35) | |
Parent [Member] | Interest Rate Contract [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [1],[3] | (7.4) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | [1],[3] | 1.9 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | [1],[3] | $ (5.5) | ||
Parent [Member] | Natural Gas Commodity Hedge [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [1],[4] | (1.8) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | [1],[4] | 0.4 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | [1],[4] | $ (1.4) | ||
[1] Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded. These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See “ Note 5. Retirement Plans ” for additional information. These accumulated other comprehensive income components are included in Interest expense, net. These accumulated other comprehensive income components are included in Cost of goods sold. |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Other Comprehensive Income Loss [Abstract] | |||||
Foreign currency translation (loss) gain, Pre-Tax Amount | $ (241.5) | $ 124.3 | $ (215) | ||
Deferred loss on cash flow hedges, Pre-Tax Amount | (13.8) | (0.1) | (13.3) | ||
Reclassification adjustment of net loss on cash flow hedges included in earnings, Pre-Tax Amount | 1.8 | 7.4 | 4.9 | ||
Net actuarial (loss) gain arising during period, Pre-Tax Amount | (289.1) | 222.2 | 34.6 | ||
Amortization and settlement recognition of net actuarial loss, Pre-Tax Amount | 8.4 | 33.9 | 48.3 | ||
Prior service cost arising during the period, Pre-Tax Amount | (0.2) | (5.6) | (26.9) | ||
Amortization of prior service cost, Pre-Tax Amount | 8.2 | 6 | 5.1 | ||
Consolidated other comprehensive (loss) income, Pre-Tax Amount | (526.2) | 388.1 | (162.3) | ||
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Pre-Tax Amount | (1.1) | (0.3) | 0.3 | ||
Other comprehensive (loss) income attributable to common stockholders, Pre-Tax Amount | (527.3) | 387.8 | (162) | ||
Foreign currency translation (loss) gain, Tax | 0 | 0 | 0 | ||
Deferred loss on cash flow hedges, Tax | 3.5 | 0 | 3.3 | ||
Reclassification adjustment of net loss on cash flow hedges included in earnings, Tax | (0.4) | (1.9) | (1.3) | ||
Net actuarial (loss) gain arising during period, Tax | 72.8 | (56.6) | (10.4) | ||
Amortization and settlement recognition of net actuarial loss, Tax | (2) | (8.4) | (12.9) | ||
Prior service cost arising during the period, Tax | 0 | 1.4 | 7.3 | ||
Amortization of prior service cost, Tax | (2.1) | (1.5) | (1.3) | ||
Consolidated other comprehensive (loss) income, Tax | 71.8 | (67) | (15.3) | ||
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Tax | 0.3 | 0 | 0 | ||
Other comprehensive (loss) income attributable to common stockholders, Tax | 72.1 | (67) | (15.3) | ||
Foreign currency translation (loss) gain, Net of Tax Amount | (241.5) | 124.3 | (215) | ||
Deferred loss on cash flow hedges, Net of Tax Amount | (10.3) | (0.1) | (10) | ||
Reclassification adjustment of net loss on cash flow hedges included in earnings | 1.4 | 5.5 | 3.6 | ||
Net actuarial (loss) gain arising during period, Net of Tax Amount | (216.3) | 165.6 | 24.2 | ||
Amortization and settlement recognition of net actuarial loss, included in pension cost | 6.4 | 25.5 | 35.4 | ||
Prior service cost arising during period | (0.2) | (4.2) | (19.6) | ||
Amortization of prior service cost, Net of Tax Amount | 6.1 | 4.5 | 3.8 | ||
Other comprehensive (loss) income, net of tax | (454.4) | 321.1 | (177.6) | ||
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Net of Tax Amount | (0.8) | (0.3) | 0.3 | ||
Net current period other comprehensive (loss) income | $ (455.2) | [1] | $ 320.8 | [1] | $ (177.3) |
[1] All amounts are net of tax and noncontrolling interest. |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | May 04, 2022 | Jul. 31, 2015 | |
Equity [Abstract] | |||||
Stock repurchase program, number of shares authorized to be repurchased | 25,000,000 | 40,000,000 | |||
Authorized share repurchase as a percentage of common stock outstanding | 10% | 15% | |||
Treasury stock, shares, acquired | 12,600,000 | 2,500,000 | 0 | ||
Purchases of common stock | $ 597.5 | $ 125.1 | |||
Stock repurchase program, remaining number of shares authorized to be repurchased | 29,000,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Jan. 29, 2021 | Feb. 02, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 93,300,000 | $ 88,600,000 | $ 130,300,000 | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 23,300,000 | 22,300,000 | 33,200,000 | ||
Proceeds from Stock Options Exercised | $ 28,900,000 | $ 57,500,000 | $ 32,400,000 | ||
Granted | 2,365,554 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Stock options granted during period | 0 | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Stock Appreciation Rights, Outstanding | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Stock Appreciation Rights, Exercises in Period, Intrinsic Value | $ 100,000 | $ 200,000 | $ 200,000 | ||
2020 Incentive Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 3,100,000 | 4,950,000 | |||
Amended and Restated 2016 Incentive Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 900,000 | ||||
Shares available for Issuance | 11,700,000 | ||||
Prior Plans Assumed in Mergers and Acquisitions [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 12,400,000 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Contractual Term, Maximum | 10 years | ||||
Aggregate intrinsic value of options exercised | $ 8,600,000 | $ 29,100,000 | $ 11,800,000 | ||
Employee Service Share-based Compensation, Unvested Awards, Compensation Cost Not yet Recognized | $ 0 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Changes in Stock Options (Details) - Stock Options [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding | shares | 1,845,672 |
Exercised | shares | (567,648) |
Expired | shares | (195,099) |
Outstanding | shares | 1,082,925 |
Exercisable at September 30, 2022 | shares | 1,082,925 |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 38.79 |
Weighted Average Exercise Price, Exercised | $ / shares | 31.44 |
Weighted Average Exercise Price, Expired | $ / shares | 52.27 |
Weighted Average Exercise Price, outstanding, end of period | $ / shares | 40.22 |
Weighted Average Exercise Price, exercisable at end of period | $ / shares | $ 40.22 |
Weighted Average Remaining Contractual Term (in years), Outstanding | 1 year 9 months 18 days |
Weighted Average Remaining Contractual Term (in years), Exercisable at September 30, 2022 | 1 year 9 months 18 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 1.3 |
Aggregate Intrinsic Value, Exercisable at September 30, 2022 | $ | $ 1.3 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock and Restricted Stock Units - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | 2,365,554 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Restricted Stock, Non-Employee Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | 37,771 | 42,482 | 49,236 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Restricted Stock, Target Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Percentage of Award Based on Level of Performance Attained, Maximum | 200% | ||||
Percentage of Award Based on Level of Performance Attained, Minimum | 0% | ||||
Restricted Stock For Annual Bonus [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | [1] | 126,984 | 2,486,249 | ||
Percentage of awards vested | 105% | ||||
Percentage of Awarded Based on Performance Level Achieved | 105% | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | 2,365,554 | 2,104,393 | 4,446,175 | ||
Employee Service Share-based Compensation, Unvested Awards, Compensation Cost Not yet Recognized | $ 102.5 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | ||||
Restricted Stock, Total Shareholder Return Grant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 3 years | 3 years | 3 years | ||
Expected volatility | 46.70% | 46.20% | 27.50% | ||
Risk-free rate | 1.50% | 0.20% | 1.30% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 60.83 | $ 53.69 | $ 45.14 | ||
Restricted Stock, Subsequent Grant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 2 years 10 months 24 days | ||||
Expected volatility | 47% | ||||
Risk-free rate | 0.30% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 70.80 | ||||
Restricted Stock, Target Awards, 2017 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of Awarded Based on Performance Level Achieved | 98.80% | ||||
Restricted Stock, Target Awards, 2018 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of Awarded Based on Performance Level Achieved | 89.30% | ||||
[1] Reflects shares issued in fiscal 2021 for the fiscal 2020 restricted stock units granted for the annual bonus were at 105 % of target. |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Changes in Restricted Stock (Details) - $ / shares | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares/Units, Granted | 2,365,554 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares/Units, Outstanding | [1] | 4,977,459 | ||
Shares/Units, Granted | 2,365,554 | 2,104,393 | 4,446,175 | |
Shares/Units, Vested and released | (1,512,550) | (3,194,223) | (766,431) | |
Shares/Units, Forfeited | (929,834) | |||
Shares/Units, Outstanding | [1] | 4,900,629 | 4,977,459 | |
Weighted Average Grant Date Fair Value, Outstanding | [1] | $ 42.02 | ||
Weighted Average Grant Date Fair Value, Granted | 45.24 | |||
Weighted Average Grant Date Fair Value, Vested and released | 41.07 | |||
Weighted Average Grant Date Fair Value, Forfeited | 42.77 | |||
Weighted Average Grant Date Fair Value, Outstanding | [1] | $ 43.73 | $ 42.02 | |
[1] Target awards granted with a performance condition, net of subsequent forfeitures, may be increased up to 200 % of the target or decreased to zero , subject to the level of performance attained. The awards are reflected in the table at the target award amount of 100 %. Based on current facts and assumptions, we are forecasting the performance of the aggregate outstanding grants to be attained at levels that would result in the issuance of approximately 0.8 million additional shares. However, actual performance may vary. |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Changes in Restricted Stock (Parenthetical) (Details) shares in Millions | 12 Months Ended |
Sep. 30, 2022 shares | |
Restricted Stock, Target Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Award Based on Level of Performance Attained, Maximum | 200% |
Percentage of Award Based on Level of Performance Attained, Minimum | 0% |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Performance Based Awards Reflected | 100% |
Issuance of additional shares estimated upon performance of aggregate outstanding grants to be attained at levels | 0.8 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Restricted Stock Shares Granted (Details) - shares | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 2,365,554 | |||
Restricted Stock, Non-Employee Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 37,771 | 42,482 | 49,236 | |
Restricted Stock, Attainment of Performance Condition in Excess of Target | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | [1] | 263,918 | ||
Restricted Stock Service Condition and Cash Flow per Share Performance Condition at Target [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | [2] | 464,485 | 798,490 | 869,065 |
Restricted Stock Service Condition And A Return On Invested Capital Performance Condition at Target [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | [2] | 394,655 | ||
Restricted Stock, Service Condition and Relative Total Shareholder Return Market Condition at Target [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | [2] | 45,470 | 127,050 | 152,595 |
Restricted Stock with Service Condition [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | [3] | 1,159,255 | 1,009,387 | 889,030 |
Restricted Stock For Annual Bonus [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | [4] | 126,984 | 2,486,249 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 2,365,554 | 2,104,393 | 4,446,175 | |
[1] Grants in the table above include shares subsequently issued for the level of performance attained in excess of target. Shares issued in fiscal 2022 for the fiscal 2019 Cash Flow Per Share were at 151.3 % of target. Shares issued in fiscal 2021 for the fiscal 2018 Cash Flow Per Share were at 89.3 % of target, therefore, the remainder of the grant was forfeited. Shares issued in fiscal 2020 for the fiscal 2017 Cash Flow Per Share were at 98.8 % of target, therefore, the remainder of the grant was forfeited. These employee grants vest over approximately three years and have adjustable ranges from 0 - 200 % of target subject to the level of performance attained in the respective award agreement. The employee grants with a relative Total Shareholder Return condition were valued using a Monte Carlo simulation, the terms of which are outlined below. These grants vest over approximately three to four years . Reflects shares issued in fiscal 2021 for the fiscal 2020 restricted stock units granted for the annual bonus were at 105 % of target. |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of Restricted Stock Shares Granted (Parenthetical) (Details) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Restricted Stock, Target Awards, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Awarded Based on Performance Level Achieved | 98.80% | ||
Restricted Stock, Target Awards, 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Awarded Based on Performance Level Achieved | 89.30% | ||
Restricted Stock, Target Awards, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Awarded Based on Performance Level Achieved | 151.30% | ||
Restricted Stock, Target Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Percentage of Award Based on Level of Performance Attained, Maximum | 200% | ||
Percentage of Award Based on Level of Performance Attained, Minimum | 0% | ||
Restricted Stock with Service Condition [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Restricted Stock with Service Condition [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Restricted Stock For Annual Bonus [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Awarded Based on Performance Level Achieved | 105% |
Share-Based Compensation - Su_6
Share-Based Compensation - Summary of Restricted Stock Awards - Vested and Released, Granted and Changes (Details) - Restricted Stock [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested and released | 1,512,550 | 3,194,223 | 766,431 |
Aggregate fair value | $ 68.7 | $ 125.1 | $ 29.6 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Feb. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 93.3 | $ 88.6 | $ 130.3 | |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15% | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.3 | 0.3 | 0.4 | |
Share-based compensation expense | $ 1.8 | $ 1.9 | $ 2.1 | |
Shares Available For Future Grant | 1 | 2.5 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to common stockholders | $ 944.6 | $ 838.3 | $ (690.9) |
Less: Distributed and undistributed income available to participating securities, Basic | (0.1) | (0.2) | (0.1) |
Distributed and undistributed income (loss) available to common stockholders, Basic | 944.5 | 838.1 | (691) |
Less: Distributed and undistributed income available to participating securities, Diluted | (0.1) | (0.2) | (0.1) |
Distributed and undistributed (loss) income available to common stockholders, Diluted | $ 944.5 | $ 838.1 | $ (691) |
Basic weighted average shares outstanding | 259.5 | 265.2 | 259.2 |
Effect of dilutive stock options and non-participating securities | 2 | 2.3 | |
Diluted weighted average shares outstanding | 261.5 | 267.5 | 259.2 |
Basic earnings (loss) per share attributable to common stockholders | $ 3.64 | $ 3.16 | $ (2.67) |
Diluted earnings (loss) per share attributable to common stockholders | $ 3.61 | $ 3.13 | $ (2.67) |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.5 | 0.5 | 4.2 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - RTS Packaging, LLC [Member] - Scenario Forecast [Member] $ in Millions | 1 Months Ended |
Nov. 30, 2022 USD ($) | |
Chattanooga, TN [Member] | |
Subsequent Event [Line Items] | |
Sale of interior partitions converting operations and Chattanooga mill subject to working capital adjustment | $ 330 |
Transaction expected to close in first half subject to satisfaction of customary | 2023 |
Eaton, IN, and Aurora, IL [Member] | |
Subsequent Event [Line Items] | |
Sale of uncoated recycled paperboard mills subject to working capital adjustment | $ 50 |
Transaction expected to close in early subject to satisfaction of customary | 2023 |
Transaction expected to close in late subject to satisfaction of customary | 2022 |