Equity and Other Comprehensive Income (Loss)

3 Months Ended

Dec. 31, 2019

Equity and Other Comprehensive Income (Loss)

Note 15.

Equity and Other Comprehensive Income (Loss)

Equity

Stock Repurchase Program

In July 2015, our board of directors authorized a repurchase program of up to 40.0 million shares of our common stock, par value $0.01 per share (“Common Stock”), representing approximately 15% of our outstanding Common Stock as of July 1, 2015. The shares of Common Stock may be repurchased over an indefinite period of time at the discretion of management. Pursuant to the program, in the three months ended December 31, 2019, we repurchased no shares of Common Stock. In the three months ended December 31, 2018, we repurchased approximately 1.0 million shares of Common Stock for an aggregate cost of $44.2 million. As of December 31, 2019, we had approximately 19.1 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 three months ended December 31, 2019 and December 31, 2018 (in millions):

	Deferred (Loss) Income on Cash Flow Hedges			Defined Benefit Pension and Postretirement Plans			Foreign Currency Items			Total ⁽¹⁾
Balance at September 30, 2019	$	0.7		$	(698.0	)	$	(371.9	)	$	(1,069.2	)
Other comprehensive (loss) income before reclassifications		(0.5	)		—			100.4			99.9
Amounts reclassified from accumulated other comprehensive (income) loss		(1.3	)		9.1			—			7.8
Net current period other comprehensive (loss) income		(1.8	)		9.1			100.4			107.7
Reclassification of stranded tax effects		—			(73.4	)		—			(73.4	)
Balance at December 31, 2019	$	(1.1	)	$	(762.3	)	$	(271.5	)	$	(1,034.9	)

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

	Deferred Loss on Cash Flow Hedges			Defined Benefit Pension and Postretirement Plans			Foreign Currency Items			Total ⁽¹⁾
Balance at September 30, 2018	$	(0.2	)	$	(465.9	)	$	(229.2	)	$	(695.3	)
Other comprehensive loss before reclassifications		—			—			(64.9	)		(64.9	)
Amounts reclassified from accumulated other comprehensive loss		—			5.4			—			5.4
Net current period other comprehensive income (loss)		—			5.4			(64.9	)		(59.5	)
Balance at December 31, 2018	$	(0.2	)	$	(460.5	)	$	(294.1	)	$	(754.8	)

⁽¹⁾ 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 25% to 26% for the three months ended December 31, 2019 and 25% to 27% for the three months ended December 31, 2018. Although we are impacted by the exchange rates of a number of currencies, foreign currency translation gains recorded in accumulated other comprehensive loss for the three months ended December 31, 2019 were primarily due to gains in the British Pound, Brazilian Real, Mexican Peso, Canadian dollar and Euro, each against the U.S. dollar. Foreign currency translation losses recorded in accumulated other comprehensive loss for the three months ended December 31, 2018 were primarily due to losses in the Canadian dollar, Mexican Peso, British Pound and Euro, partially offset by changes in the Brazilian Real exchange rate, each against the U.S. dollar.

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

	Three Months Ended									Three Months Ended
	December 31, 2019									December 31, 2018
	Pretax			Tax			Net of Tax			Pretax			Tax		Net of Tax
Amortization of defined benefit pension and postretirement items: ⁽¹⁾
Actuarial losses ⁽²⁾	$	(11.6	)	$	3.0		$	(8.6	)	$	(6.6	)	$	1.7	$	(4.9	)
Prior service costs ⁽²⁾		(0.7	)		0.2			(0.5	)		(0.6	)		0.1		(0.5	)
Reclassification of stranded tax effects ⁽³⁾		—			73.4			73.4			—			—		—
Subtotal defined benefit plans		(12.3	)		76.6			64.3			(7.2	)		1.8		(5.4	)

Derivative Instruments: ⁽¹⁾
Interest rate swap hedge gain ⁽⁴⁾		0.7			(0.2	)		0.5			—			—		—
Natural gas commodity hedge gain ⁽⁵⁾		1.1			(0.3	)		0.8			—			—		—
Subtotal cash flow hedges		1.8			(0.5	)		1.3			—			—		—

Total reclassifications for the period	$	(10.5	)	$	76.1		$	65.6		$	(7.2	)	$	1.8	$	(5.4	)

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

⁽²⁾ Included in the computation of net periodic pension cost. See “Note 5. Retirement Plans” for additional details.

⁽³⁾ Amount reclassified to retained earnings as a result of the adoption of ASU 2018-02.

⁽⁴⁾ These accumulated other comprehensive income components are included in interest expense, net.

⁽⁵⁾ These accumulated other comprehensive income components are included in cost of goods sold.