Equity and Other Comprehensive Income (Loss)

9 Months Ended

Jun. 30, 2022

Equity [Abstract]

Equity and Other Comprehensive Income (Loss)

Note 14. Equity and Other Comprehensive Income (Loss)

Equity

Stock Repurchase Program

In July 2015, our board of directors authorized a repurchase program of up to 40.0 million shares of our Common Stock, representing approximately 15% of our outstanding common stock, par value $0.01 per share (“Common Stock”) as of July 1, 2015. 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 represents an additional authorization of approximately 10% of our outstanding Common Stock. The shares of Common Stock may be repurchased over an indefinite period of time at the discretion of management. Pursuant to the programs, in the nine months ended June 30, 2022, we repurchased approximately 12.6 million shares of our Common Stock for an aggregate cost of $597.5 million. The amount reflected as purchased in the condensed consolidated statements of cash flows varies due to the timing of share settlement. In the nine months ended June 30, 2021, we repurchased no shares of Common Stock. As of June 30, 2022, we had approximately 29.0 million shares of Common Stock available for repurchase under the program.

Accumulated Other Comprehensive Loss

The tables below summarize the changes in accumulated other comprehensive loss, net of tax, by component for the nine months ended June 30, 2022 and June 30, 2021 (in millions):

	Deferred (Loss) Income on Cash Flow Hedges			Defined Benefit Pension and Postretirement Plans			Foreign Currency Items			Total (1)
Balance at September 30, 2021	$	(0.2	)	$	(536.5	)	$	(462.4	)	$	(999.1	)
Other comprehensive (loss) income before    reclassifications		(23.5	)		0.1			(81.7	)		(105.1	)
Amounts reclassified from accumulated other    comprehensive loss		—			8.8			—			8.8
Net current period other comprehensive (loss) income		(23.5	)		8.9			(81.7	)		(96.3	)
Balance at June 30, 2022	$	(23.7	)	$	(527.6	)	$	(544.1	)	$	(1,095.4	)

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

	Deferred (Loss) Income on Cash Flow Hedges			Defined Benefit Pension and Postretirement Plans			Foreign Currency Items			Total (1)
Balance at September 30, 2020	$	(5.6	)	$	(727.7	)	$	(586.6	)	$	(1,319.9	)
Other comprehensive (loss) income before    reclassifications		(0.1	)		—			253.0			252.9
Amounts reclassified from accumulated other    comprehensive loss		4.4			21.8			—			26.2
Net current period other comprehensive income		4.3			21.8			253.0			279.1
Balance at June 30, 2021	$	(1.3	)	$	(705.9	)	$	(333.6	)	$	(1,040.8	)

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

The net of tax amounts were determined using the jurisdictional statutory rates, and reflect effective tax rates averaging 24% to 25% for the nine months ended June 30, 2022 and 23% to 24% for the nine months ended June 30, 2021. Although we are impacted by the exchange rates of a number of currencies, foreign currency translation adjustments recorded in accumulated other comprehensive loss for the nine months ended June 30, 2022 were primarily due to losses in the British Pound, Japanese Yen and Canadian dollar partially offset by gains in the Brazilian Real, each against the U.S. dollar. Foreign currency translation adjustments recorded in accumulated other comprehensive loss for the nine months ended June 30, 2021 were primarily due to gains in the Brazilian Real, Canadian dollar, Mexican Peso and British Pound, each against the U.S. dollar.

In the third quarter of fiscal 2022, we entered into various natural gas commodity derivatives that were designated 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 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. At June 30, 2022, the notional amount of our natural gas commodity derivatives was 14.4 million MMBtu, which is scheduled to be settled over the next twelve months. At June 30, 2022, we were in a liability position of $31.3 million recorded in Other current liabilities on our condensed consolidated balance sheet. 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. We have the right of offset and disclose our positions net by counterparty.

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

	Three Months Ended								Three Months Ended
	June 30, 2022								June 30, 2021
	Pre-tax			Tax		Net of Tax			Pre-tax			Tax		Net of Tax
Amortization of defined benefit pension and    postretirement items: (1)
Actuarial losses (2)	$	(2.5	)	$	0.6	$	(1.9	)	$	(9.3	)	$	2.1	$	(7.2	)
Prior service costs (2)		(2.0	)		0.5		(1.5	)		(1.6	)		0.3		(1.3	)
Subtotal defined benefit plans		(4.5	)		1.1		(3.4	)		(10.9	)		2.4		(8.5	)
Derivative Instruments: (1)
Interest rate swap hedge loss (3)		—			—		—			(2.1	)		0.6		(1.5	)
Total reclassifications for the period	$	(4.5	)	$	1.1	$	(3.4	)	$	(13.0	)	$	3.0	$	(10.0	)

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

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

(3)These accumulated other comprehensive loss components are included in Interest expense, net.

	Nine Months Ended								Nine Months Ended
	June 30, 2022								June 30, 2021
	Pre-tax			Tax		Net of Tax			Pre-tax			Tax		Net of Tax
Amortization of defined benefit pension and    postretirement items: (1)
Actuarial losses (2)	$	(6.0	)	$	1.5	$	(4.5	)	$	(24.1	)	$	5.7	$	(18.4	)
Prior service costs (2)		(5.8	)		1.5		(4.3	)		(4.4	)		1.0		(3.4	)
Subtotal defined benefit plans		(11.8	)		3.0		(8.8	)		(28.5	)		6.7		(21.8	)
Derivative Instruments: (1)
Interest rate swap hedge loss (3)		—			—		—			(6.0	)		1.6		(4.4	)
Total reclassifications for the period	$	(11.8	)	$	3.0	$	(8.8	)	$	(34.5	)	$	8.3	$	(26.2	)

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

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

(3)These accumulated other comprehensive loss components are included in Interest expense, net.