10-Q 1 wrk-10q_20190331.htm 10-Q wrk-10q_20190331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2019

or

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from               to             

Commission File Number 001-38736

WestRock Company

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

 

37-1880617

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

1000 Abernathy Road NE, Atlanta, Georgia

 

30328

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (770) 448-2193

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report.)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

Non-accelerated filer

 

 

Smaller reporting company

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

WRK

New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

 

Class

 

Outstanding as of April 19, 2019

Common Stock, $0.01 par value

 

257,042,757

 


WESTROCK COMPANY

INDEX

 

 

 

 

Page

PART I

FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (Unaudited)

 

 

 

 

 

Condensed Consolidated Statements of Income for the three and six months ended March 31, 2019 and 2018

3

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended March 31, 2019 and 2018

4

 

 

 

 

Condensed Consolidated Balance Sheets at March 31, 2019 and September 30, 2018

5

 

 

 

 

Condensed Consolidated Statements of Equity for the three and six months ended March 31, 2019 and 2018

6

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2019 and 2018

8

 

 

 

 

Notes to Condensed Consolidated Financial Statements

10

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

46

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

65

 

 

 

Item 4.

Controls and Procedures

65

 

 

 

PART II

OTHER INFORMATION

66

 

 

 

Item 1.

Legal Proceedings

66

 

 

 

Item 1A.

Risk Factors

66

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

66

 

 

 

Item 6.

Exhibits

66

 

 

 

 

Index to Exhibits

67

 

 

2


PART I: FINANCIAL INFORMATION

Item 1.

FINANCIAL STATEMENTS (UNAUDITED)

WESTROCK COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

(In millions, except per share data)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

4,620.0

 

 

$

4,017.0

 

 

$

8,947.4

 

 

$

7,911.0

 

Cost of goods sold

 

 

3,720.4

 

 

 

3,227.6

 

 

 

7,266.0

 

 

 

6,348.1

 

Selling, general and administrative, excluding

   intangible amortization

 

 

444.1

 

 

 

395.8

 

 

 

845.0

 

 

 

776.6

 

Selling, general and administrative intangible

   amortization

 

 

102.4

 

 

 

75.2

 

 

 

195.3

 

 

 

147.7

 

Loss (gain) on disposal of assets

 

 

 

 

 

2.8

 

 

 

(43.8

)

 

 

3.9

 

Multiemployer pension withdrawals

 

 

 

 

 

 

 

 

 

 

 

180.0

 

Land and Development impairments

 

 

13.0

 

 

 

 

 

 

13.0

 

 

 

27.6

 

Restructuring and other costs

 

 

34.8

 

 

 

31.7

 

 

 

89.2

 

 

 

48.0

 

Operating profit

 

 

305.3

 

 

 

283.9

 

 

 

582.7

 

 

 

379.1

 

Interest expense, net

 

 

(111.8

)

 

 

(78.3

)

 

 

(206.2

)

 

 

(143.1

)

Gain (loss) on extinguishment of debt

 

 

0.4

 

 

 

0.1

 

 

 

(1.5

)

 

 

(0.9

)

Pension and other postretirement non-service income

 

 

18.7

 

 

 

24.6

 

 

 

36.0

 

 

 

49.2

 

Other (expense) income, net

 

 

(3.3

)

 

 

1.1

 

 

 

(6.0

)

 

 

3.6

 

Equity in (loss) income of unconsolidated entities

 

 

(0.2

)

 

 

11.9

 

 

 

6.6

 

 

 

15.7

 

Income before income taxes

 

 

209.1

 

 

 

243.3

 

 

 

411.6

 

 

 

303.6

 

Income tax (expense) benefit

 

 

(47.2

)

 

 

(18.8

)

 

 

(109.9

)

 

 

1,054.4

 

Consolidated net income

 

 

161.9

 

 

 

224.5

 

 

 

301.7

 

 

 

1,358.0

 

Less: Net (income) loss attributable to noncontrolling

   interests

 

 

(1.5

)

 

 

(1.3

)

 

 

(2.2

)

 

 

0.3

 

Net income attributable to common stockholders

 

$

160.4

 

 

$

223.2

 

 

$

299.5

 

 

$

1,358.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to common

   stockholders

 

$

0.63

 

 

$

0.87

 

 

$

1.17

 

 

$

5.32

 

Diluted earnings per share attributable to common

   stockholders

 

$

0.62

 

 

$

0.86

 

 

$

1.15

 

 

$

5.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

256.6

 

 

 

256.1

 

 

 

255.7

 

 

 

255.5

 

Diluted weighted average shares outstanding

 

 

259.4

 

 

 

260.3

 

 

 

259.4

 

 

 

259.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends paid per common share

 

$

0.455

 

 

$

0.43

 

 

$

0.91

 

 

$

0.86

 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

3


WESTROCK COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

(In millions)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

161.9

 

 

$

224.5

 

 

$

301.7

 

 

$

1,358.0

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

 

25.2

 

 

 

54.2

 

 

 

(39.7

)

 

 

12.3

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred gain on cash flow hedges

 

 

 

 

 

0.1

 

 

 

 

 

 

 

Reclassification adjustment of net loss on

  cash flow hedges included in earnings

 

 

 

 

 

 

 

 

 

 

 

0.5

 

Unrealized gain on available for sale security

 

 

 

 

 

 

 

 

 

 

 

0.8

 

Reclassification adjustment of gain on available for

   sale security included in earnings

 

 

 

 

 

(1.5

)

 

 

 

 

 

(1.5

)

Defined benefit pension and other postretirement

   benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization and settlement recognition of net

   actuarial loss, included in pension cost

 

 

3.2

 

 

 

3.3

 

 

 

8.1

 

 

 

6.6

 

Prior service cost arising during the period

 

 

 

 

 

 

 

 

 

 

 

(2.7

)

Amortization and settlement recognition of prior

   service cost, included in pension cost

 

 

0.4

 

 

 

 

 

 

0.9

 

 

 

 

Other comprehensive income (loss), net of tax

 

 

28.8

 

 

 

56.1

 

 

 

(30.7

)

 

 

16.0

 

Comprehensive income

 

 

190.7

 

 

 

280.6

 

 

 

271.0

 

 

 

1,374.0

 

Less: Comprehensive income attributable to

   noncontrolling interests

 

 

(1.0

)

 

 

(1.5

)

 

 

(1.7

)

 

 

(0.1

)

Comprehensive income attributable to common

   stockholders

 

$

189.7

 

 

$

279.1

 

 

$

269.3

 

 

$

1,373.9

 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

4


WESTROCK COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(In millions, except per share data)

 

March 31,

2019

 

 

September 30,

2018

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

154.2

 

 

$

636.8

 

Accounts receivable (net of allowances of $46.9 and $49.7)

 

 

2,367.0

 

 

 

2,010.7

 

Inventories

 

 

2,096.9

 

 

 

1,829.6

 

Other current assets

 

 

562.4

 

 

 

248.5

 

Assets held for sale

 

 

33.5

 

 

 

59.5

 

Total current assets

 

 

5,214.0

 

 

 

4,785.1

 

Property, plant and equipment, net

 

 

11,029.4

 

 

 

9,082.5

 

Goodwill

 

 

7,300.9

 

 

 

5,577.6

 

Intangibles, net

 

 

4,277.9

 

 

 

3,122.0

 

Restricted assets held by special purpose entities

 

 

1,277.7

 

 

 

1,281.0

 

Prepaid pension asset

 

 

447.7

 

 

 

420.0

 

Other assets

 

 

1,145.4

 

 

 

1,092.3

 

Total Assets

 

$

30,693.0

 

 

$

25,360.5

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of debt

 

$

1,422.4

 

 

$

740.7

 

Accounts payable

 

 

1,702.0

 

 

 

1,716.8

 

Accrued compensation and benefits

 

 

380.6

 

 

 

399.3

 

Other current liabilities

 

 

541.6

 

 

 

476.5

 

Total current liabilities

 

 

4,046.6

 

 

 

3,333.3

 

Long-term debt due after one year

 

 

9,373.1

 

 

 

5,674.5

 

Pension liabilities, net of current portion

 

 

251.0

 

 

 

261.3

 

Postretirement benefit liabilities, net of current portion

 

 

141.5

 

 

 

134.8

 

Non-recourse liabilities held by special purpose entities

 

 

1,149.5

 

 

 

1,153.7

 

Deferred income taxes

 

 

2,955.2

 

 

 

2,321.5

 

Other long-term liabilities

 

 

1,119.3

 

 

 

994.8

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 

3.2

 

 

 

4.2

 

Equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value; 30.0 million shares authorized; no

   shares outstanding

 

 

 

 

 

 

Common Stock, $0.01 par value; 600.0 million shares authorized;

   256.9 million and 253.5 million shares outstanding at March 31,

   2019 and September 30, 2018, respectively

 

 

2.6

 

 

 

2.5

 

Capital in excess of par value

 

 

10,692.5

 

 

 

10,588.9

 

Retained earnings

 

 

1,671.2

 

 

 

1,573.3

 

Accumulated other comprehensive loss

 

 

(725.5

)

 

 

(695.3

)

Total stockholders’ equity

 

 

11,640.8

 

 

 

11,469.4

 

Noncontrolling interests

 

 

12.8

 

 

 

13.0

 

Total equity

 

 

11,653.6

 

 

 

11,482.4

 

Total Liabilities and Equity

 

$

30,693.0

 

 

$

25,360.5

 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

5


WESTROCK COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

(In millions, except per share data)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

Number of Shares of Common Stock Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

255.2

 

 

 

254.9

 

 

 

253.5

 

 

 

254.5

 

Shares issued under restricted stock plan

 

 

2.7

 

 

 

0.7

 

 

 

3.0

 

 

 

0.7

 

Issuance of common stock, net of stock received for

   minimum tax withholdings (1)

 

 

0.1

 

 

 

0.8

 

 

 

2.5

 

 

 

1.2

 

Purchases of common stock

 

 

(1.1

)

 

 

 

 

 

(2.1

)

 

 

 

Balance at end of period

 

 

256.9

 

 

 

256.4

 

 

 

256.9

 

 

 

256.4

 

Common Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

2.6

 

 

$

2.5

 

 

$

2.5

 

 

$

2.5

 

Issuance of common stock, net of stock received for

   minimum tax withholdings (1)

 

 

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

Purchases of common stock

 

 

 

 

 

 

 

 

 

 

 

 

Balance at end of period

 

 

2.6

 

 

 

2.6

 

 

 

2.6

 

 

 

2.6

 

Capital in Excess of Par Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

10,720.6

 

 

 

10,651.7

 

 

 

10,588.9

 

 

 

10,624.9

 

Compensation expense under share-based plans

 

 

18.2

 

 

 

19.4

 

 

 

36.1

 

 

 

33.7

 

Issuance of common stock, net of stock received for

   minimum tax withholdings (1)

 

 

(1.9

)

 

 

13.5

 

 

 

82.9

 

 

 

26.0

 

Fair value of share-based awards issued in business

   combinations

 

 

 

 

 

 

 

 

70.8

 

 

 

 

Purchases of common stock

 

 

(44.4

)

 

 

 

 

 

(86.2

)

 

 

 

Balance at end of period

 

 

10,692.5

 

 

 

10,684.6

 

 

 

10,692.5

 

 

 

10,684.6

 

Retained Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

1,635.3

 

 

 

1,196.8

 

 

 

1,573.3

 

 

 

172.4

 

Adoption of revenue from contracts with customers

   standard

 

 

 

 

 

 

 

 

43.5

 

 

 

 

Net income attributable to common stockholders

 

 

160.4

 

 

 

223.2

 

 

 

299.5

 

 

 

1,358.3

 

Dividends declared (per share - $0.455, $0.43, $0.91 and

   $0.86) (2)

 

 

(124.5

)

 

 

(111.2

)

 

 

(242.3

)

 

 

(221.9

)

Issuance of common stock, net of stock received for

   minimum tax withholdings

 

 

 

 

 

(6.4

)

 

 

(0.4

)

 

 

(6.4

)

Purchases of common stock

 

 

 

 

 

 

 

 

(2.4

)

 

 

 

Balance at end of period

 

 

1,671.2

 

 

 

1,302.4

 

 

 

1,671.2

 

 

 

1,302.4

 

Accumulated Other Comprehensive Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

(754.8

)

 

 

(497.6

)

 

 

(695.3

)

 

 

(457.3

)

Other comprehensive income (loss), net of tax

 

 

29.3

 

 

 

55.9

 

 

 

(30.2

)

 

 

15.6

 

Balance at end of period

 

 

(725.5

)

 

 

(441.7

)

 

 

(725.5

)

 

 

(441.7

)

Total Stockholders’ equity

 

 

11,640.8

 

 

 

11,547.9

 

 

 

11,640.8

 

 

 

11,547.9

 

Noncontrolling Interests: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

11.8

 

 

 

40.2

 

 

 

13.0

 

 

 

43.6

 

Net income

 

 

1.1

 

 

 

1.1

 

 

 

1.4

 

 

 

 

Contributions

 

 

 

 

 

 

 

 

0.2

 

 

 

 

Distributions and adjustments to noncontrolling interests

 

 

(0.1

)

 

 

(7.0

)

 

 

(1.8

)

 

 

(9.3

)

Balance at end of period

 

 

12.8

 

 

 

34.3

 

 

 

12.8

 

 

 

34.3

 

Total equity

 

$

11,653.6

 

 

$

11,582.2

 

 

$

11,653.6

 

 

$

11,582.2

 

 

 

(1)

Included in the issuance of common stock in the six months ended March 31, 2019 is the issuance of approximately 1.6 million shares of Common Stock (as hereinafter defined) valued at $70.1 million in connection with the KapStone Acquisition (as hereinafter defined).

 

6


 

(2)

Includes cash dividends paid, dividend equivalent units on certain restricted stock awards and dividends declared but unpaid related to the shares reserved but unissued at the time of the acquisition for the resolution of Smurfit-Stone Container Corporation (“Smurfit-Stone”) bankruptcy claims.

 

(3)

Excludes amounts related to contingently redeemable noncontrolling interests, which are separately classified outside of permanent equity on the Condensed Consolidated Balance Sheets.

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

 

7


WESTROCK COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

Six Months Ended

 

 

 

March 31,

 

(In millions)

 

2019

 

 

2018

 

Operating activities:

 

 

 

 

 

 

 

 

Consolidated net income

 

$

301.7

 

 

$

1,358.0

 

Adjustments to reconcile consolidated net income to net cash provided

   by operating activities:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

742.8

 

 

 

622.5

 

Cost of real estate sold

 

 

11.0

 

 

 

27.1

 

Deferred income tax expense (benefit)

 

 

39.6

 

 

 

(1,222.7

)

Share-based compensation expense

 

 

35.5

 

 

 

33.9

 

Pension and other postretirement funding (more) than expense (income)

 

 

(27.0

)

 

 

(49.8

)

Multiemployer pension withdrawals

 

 

 

 

 

180.0

 

Land and Development impairments

 

 

13.0

 

 

 

27.6

 

Other impairment adjustments

 

 

10.0

 

 

 

10.4

 

Gain on disposal of plant and equipment and other, net

 

 

(45.5

)

 

 

(0.8

)

Other

 

 

(46.3

)

 

 

(15.6

)

Change in operating assets and liabilities, net of acquisitions and

   divestitures:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

117.3

 

 

 

(297.5

)

Inventories

 

 

(67.5

)

 

 

(83.0

)

Other assets

 

 

(128.9

)

 

 

(56.0

)

Accounts payable

 

 

(143.4

)

 

 

(67.3

)

Income taxes

 

 

(27.0

)

 

 

94.1

 

Accrued liabilities and other

 

 

(120.3

)

 

 

(87.2

)

Net cash provided by operating activities

 

 

665.0

 

 

 

473.7

 

Investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(625.4

)

 

 

(426.7

)

Cash paid related to business combinations, net of cash acquired

 

 

(3,349.3

)

 

 

(185.2

)

Cash receipts on sold trade receivables

 

 

 

 

 

253.1

 

Investment in unconsolidated entities

 

 

(0.2

)

 

 

(111.0

)

Proceeds from sale of property, plant and equipment

 

 

105.3

 

 

 

15.7

 

Proceeds from property, plant and equipment insurance settlement

 

 

8.8

 

 

 

4.8

 

Other

 

 

10.2

 

 

 

8.2

 

Net cash used for investing activities

 

 

(3,850.6

)

 

 

(441.1

)

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of notes

 

 

1,498.5

 

 

 

1,197.3

 

Additions to revolving credit facilities

 

 

172.0

 

 

 

94.3

 

Additions to debt

 

 

3,957.9

 

 

 

853.2

 

Repayments of debt

 

 

(3,209.6

)

 

 

(2,010.4

)

Changes in commercial paper, net

 

 

588.3

 

 

 

63.3

 

Other financing additions (repayments), net

 

 

16.6

 

 

 

(24.5

)

Issuances of common stock, net of related minimum tax withholdings

 

 

3.2

 

 

 

17.4

 

Purchases of common stock

 

 

(88.6

)

 

 

 

Cash dividends paid to stockholders

 

 

(233.7

)

 

 

(219.4

)

Cash distributions paid to noncontrolling interests

 

 

(2.8

)

 

 

(8.6

)

Other

 

 

3.0

 

 

 

(24.9

)

Net cash provided by (used for) financing activities

 

 

2,704.8

 

 

 

(62.3

)

Effect of exchange rate changes on cash, cash equivalents

   and restricted cash

 

 

(1.8

)

 

 

(1.9

)

Decrease in cash, cash equivalents and restricted cash

 

 

(482.6

)

 

 

(31.6

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

636.8

 

 

 

304.0

 

Cash, cash equivalents and restricted cash at end of period

 

$

154.2

 

 

$

272.4

 

 

8


 

 

Six Months Ended

 

 

 

March 31,

 

(In millions)

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Income taxes, net of refunds

 

$

94.3

 

 

$

69.8

 

Interest, net of amounts capitalized

 

$

202.9

 

 

$

135.1

 

 

Supplemental schedule of non-cash investing and financing activities:

 

 

 

Six Months Ended

 

 

 

March 31,

 

(In millions)

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

Deferred purchase price of trade receivables sold

 

$

 

 

$

250.0

 

 

Liabilities assumed in the six months ended March 31, 2019 primarily relate to the KapStone Acquisition (as hereinafter defined). Liabilities assumed in the six months ended March 31, 2018 primarily relate to the Plymouth Acquisition (as hereinafter defined). See “Note 3. Acquisitions” for more information.

 

 

 

Six Months Ended

 

 

 

March 31,

 

(In millions)

 

2019

 

 

2018

 

 

 

 

 

Fair value of assets acquired, including goodwill

 

$

5,912.4

 

 

$

228.0

 

Cash consideration for the purchase of businesses, net of cash acquired

 

 

(3,350.2

)

 

 

(187.4

)

Stock issued for the purchase of a business

 

 

(70.1

)

 

 

 

Fair value of share-based awards issued in the purchase of a business

 

 

(70.8

)

 

 

 

Deferred payments and unpaid working capital

 

 

16.6

 

 

 

(26.3

)

Liabilities assumed

 

$

2,437.9