Pursuant to the sale of certain forestlands in 2007 and 2013, special purpose entities (“SPEs”) received and WestRock assumed upon the strategic combination of Rock-Tenn Company and MeadWestvaco Corporation's respective businesses, certain installment notes receivable (“Timber Notes”), and using these installment notes as collateral, the special purpose entities received proceeds under secured financing agreements (“Non-recourse Liabilities”). See “Note 17. Special Purpose Entities” of the Notes to Consolidated Financial Statements section in the Fiscal 2023 Form 10-K for additional information.

The restricted assets and non-recourse liabilities held by special purpose entities are included in the consolidated balance sheets in the following (in millions):


	December 31, 2023		September 30, 2023
Other current assets	$	—	$	862.1
Other noncurrent assets	$	383.5	$	382.7

Other current liabilities	$	—	$	776.7
Other noncurrent liabilities	$	330.7	$	330.2

The decrease in Other current assets and Other current liabilities subsequent to September 30, 2023 reflects the collection of an installment note receivable of $860 million and payment of a secured financing liability of $774 million in December 2023. This resulted in a receipt of $88.1 million, net of interest and other items, from the related special purpose entity to the Company.

The carrying value of the remaining restricted asset and non-recourse liability as of December 31, 2023 approximates fair value due to their floating rates. As of September 30, 2023, the aggregate fair value of the Timber Notes and Non-recourse Liabilities was $1,257.2 million and $1,112.4 million, respectively. Fair values of the Timber Notes and Non-recourse Liabilities are classified as level 2 within the fair value hierarchy.

The restricted assets and non-recourse liabilities have the following activity (in millions):


	Three Months Ended
	December 31,
	2023		2022
Interest income on Timber Notes (1)	$	12.3	$	13.1
Interest expense on Timber Loans (1)	$	10.6	$	11.7
Cash receipts on Timber Notes (2)	$	32.2	$	24.9
Cash payments on Timber Loans (2)	$	28.6	$	23.4

(1)

Presented in Interest expense, net on the accompanying Consolidated Statements of Operations.

(2)

Included as part of operating cash flows on the accompanying Consolidated Statements of Cash Flows.