Equity and Other Comprehensive Income (Loss)

9 Months Ended

Jun. 30, 2020

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 nine months ended June 30, 2020, we repurchased no shares of Common Stock. In the nine months ended June 30, 2019, we repurchased approximately 2.1 million shares of Common Stock for an aggregate cost of $88.6 million. As of June 30, 2020, 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 nine months ended June 30, 2020 and June 30, 2019 (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 before reclassifications		(10.1	)		—			(265.2	)		(275.3	)
Amounts reclassified from accumulated other comprehensive loss		2.2			28.3			—			30.5
Net current period other comprehensive (loss) income		(7.9	)		28.3			(265.2	)		(244.8	)
Reclassification of stranded tax effects		—			(73.4	)		—			(73.4	)
Balance at June 30, 2020	$	(7.2	)	$	(743.1	)	$	(637.1	)	$	(1,387.4	)

⁽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		—			—			(13.7	)		(13.7	)
Amounts reclassified from accumulated other comprehensive loss		—			13.6			—			13.6
Net current period other comprehensive income (loss)		—			13.6			(13.7	)		(0.1	)
Balance at June 30, 2019	$	(0.2	)	$	(452.3	)	$	(242.9	)	$	(695.4	)

⁽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 nine months ended June 30, 2020 and 25% to 26% for the nine months ended June 30, 2019. 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, 2020 were primarily due to losses in the 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 nine months ended June 30, 2019 were primarily due to losses in the Canadian dollar, Mexican Peso, British Pound and Euro, partially offset by gains in the Brazilian Real, 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
	June 30, 2020								June 30, 2019
	Pretax			Tax		Net of Tax			Pretax			Tax		Net of Tax
Amortization of defined benefit pension and postretirement items: ⁽¹⁾
Actuarial losses ⁽²⁾	$	(11.4	)	$	2.6	$	(8.8	)	$	(5.9	)	$	1.5	$	(4.4	)
Prior service costs ⁽²⁾		(1.3	)		0.3		(1.0	)		(0.5	)		0.1		(0.4	)
Subtotal defined benefit plans		(12.7	)		2.9		(9.8	)		(6.4	)		1.6		(4.8	)

Derivative Instruments: ⁽¹⁾
Interest rate swap hedge loss ⁽³⁾		(1.4	)		0.3		(1.1	)		—			—		—

Total reclassifications for the period	$	(14.1	)	$	3.2	$	(10.9	)	$	(6.4	)	$	1.6	$	(4.8	)

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

	Nine Months Ended								Nine Months Ended
	June 30, 2020								June 30, 2019
	Pretax			Tax		Net of Tax			Pretax			Tax		Net of Tax
Amortization of defined benefit pension and postretirement items: ⁽¹⁾
Actuarial losses ⁽²⁾	$	(34.5	)	$	8.7	$	(25.8	)	$	(16.6	)	$	4.3	$	(12.3	)
Prior service costs ⁽²⁾		(3.3	)		0.8		(2.5	)		(1.7	)		0.4		(1.3	)
Reclassification of stranded tax effects ⁽³⁾		—			73.4		73.4			—			—		—
Subtotal defined benefit plans		(37.8	)		82.9		45.1			(18.3	)		4.7		(13.6	)

Derivative Instruments: ⁽¹⁾
Interest rate swap hedge loss ⁽⁴⁾		(0.4	)		0.1		(0.3	)		—			—		—
Natural gas commodity hedge loss ⁽⁵⁾		(2.6	)		0.7		(1.9	)		—			—		—
Subtotal cash flow hedges		(3.0	)		0.8		(2.2	)		—			—		—

Total reclassifications for the period	$	(40.8	)	$	83.7	$	42.9		$	(18.3	)	$	4.7	$	(13.6	)

⁽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.