Variable Interest Entities (Tables)

12 Months Ended

Sep. 30, 2023

Consolidated Variable Interest Entities Disclosure [Abstract]

The table below summarizes balances associated with NGHC as reflected on our consolidated balance sheets. For additional information on this joint venture, refer to the "NEOM Green Hydrogen Project" section that follows.


	30 September	30 September
	2023	2022
Assets
Cash and cash items	$78.2	$274.7

Trade receivables, net	—	1.3

Prepaid expenses	21.4	0.1
Other receivables and current assets	181.6	23.3
Total current assets	$281.2	$299.4



Plant and equipment, net	1,396.1	218.8


Operating lease right-of-use assets, net	228.9	—


Other noncurrent assets	350.6	1.5
Total noncurrent assets	$1,975.6	$220.3
Total assets	$2,256.8	$519.7
Liabilities
Payables and accrued liabilities	$141.0	$58.1
Accrued income taxes	0.6	—


Total current liabilities	$141.6	$58.1
Long-term debt	1,274.4	—
Long-term debt – related party(A)	—	447.3
Noncurrent operating lease liabilities	18.9	—
Other noncurrent liabilities	2.1	1.4
Deferred income taxes	24.1	—
Total noncurrent liabilities	$1,319.5	$448.7
Total liabilities	$1,461.1	$506.8
Equity
Accumulated other comprehensive income	$77.7	$—
Noncontrolling interests(A)	723.6	30.0

(A)During the third quarter of fiscal year 2023, outstanding shareholder loans to NGHC were converted to equity in the entity. Accordingly, related party debt outstanding was reclassified to investments attributable to the noncontrolling partners of NGHC. This noncash activity is presented within “Investments by noncontrolling interests” on our consolidated statements of equity for the fiscal year ended 30 September 2023.

Schedule of Long-term Debt Instruments

The joint venture completed its first drawdown on the project financing in July 2023. The table below summarizes the interest rate, maturity, and carrying amount of borrowings associated with NGHC as of 30 September 2023:


	Fiscal Year Maturities	30 September 2023
Payable in U.S. Dollars
U.S. Dollar variable-rate facilities 6.62%(A)	2027 to 2053	$1,094.9
U.S. Dollar stated-rate facility 5.00%	2027 to 2053	138.5
Total Payable in U.S. Dollars		$1,233.4
Payable in Other Currencies
Saudi Riyal Loan Facility variable-rate 6.69%(B)	2027	131.4
Total Principal Amount		$1,364.8
Less: Unamortized discount and debt issuance costs(C)		(90.4)
Total NGHC Long-term Debt		$1,274.4

(A)Reflects a daily compounded SOFR as of 30 September 2023 plus an annual margin of 1.31%. This does not include the impact of our floating-to-fixed interest rate swaps, which result in an overall lower interest rate for the borrowings. These derivative instruments, which had a notional principal amount of $1,182.5 and an average pay rate of 2.82% as of 30 September 2023, are reflected within the table provided in Note 14, Financial Instruments, on page 85 .

(B)Based on the Saudi Arabian Interbank Offered Rate ("SAIBOR") plus an annual margin of 0.8%.

(C)Our consolidated balance sheet as of 30 September 2023 also includes $58.8 for remaining project financing fees that are eligible for deferral as a noncurrent asset until additional borrowings are drawn, at which time the unamortized balance will be reclassified as an offset to the outstanding debt.

Summary of Long-Term Debt Instruments

The table below summarizes the coupon interest rates, fiscal year maturities, and carrying amounts of our long-term debt, including current portion and amounts owed to related parties. Variable rates are determined as of 30 September 2023.


30 September	Maturities	2023	2022
Payable in U.S. Dollars


Medium-term Notes (weighted average rate)
Series E 7.6%	2026	$17.2	$17.2
Senior Notes
Note 2.75%	2023	—	400.0
Note 3.35%	2024	400.0	400.0
Note 1.50%	2026	550.0	550.0
Note 1.85%	2027	650.0	650.0
Note 2.05%	2030	900.0	900.0
Note 4.800%	2033	600.0	—
Note 2.70%	2040	750.0	750.0
Note 2.80%	2050	950.0	950.0
Other (weighted average rate)
Variable-rate industrial revenue bonds 3.55%	2035 to 2050	618.9	618.9
Other variable-rate 6.78%	2024 to 2032	41.4	41.4
Payable in Other Currencies
Eurobonds 1.000%	2025	317.2	294.1
Eurobonds 0.500%	2028	528.6	490.1
Eurobonds 0.800%	2032	528.6	490.1
Eurobonds 4.000%	2035	740.1	—
Saudi Riyal Loan Facility variable-rate 4.10%	2023	—	195.6
Saudi Riyal Loan Facility variable-rate 7.00%	2027	451.1	—
Saudi Riyal Loan Facility 2.00%	2034	192.1	—
New Taiwan Dollar Loan Facility 1.86%	2024 to 2028	167.5	189.0
New Taiwan Dollar Loan Facility 2.66%	2026 to 2029	186.1	31.5
New Taiwan Dollar Loan Facility variable-rate 2.55%	2026 to 2030	3.1	—
Other	2023	—	0.1
Related Party Debt
Chinese Renminbi 5.5%	2024 to 2027	313.5	321.5
Chinese Renminbi 5.7%	2033	14.8	12.2
Non-Recourse Debt Associated With NGHC(A)	2027 to 2053	1,364.8	—
Finance Lease Obligations (weighted average rate)

Foreign 11.4%	2025 to 2036	7.5	7.6
Total Principal Amount		$10,292.5	$7,309.3

Plus: Related party shareholder loans to NGHC		—	447.3
Less: Unamortized discount and debt issuance costs		(165.7)	(45.4)
Less: Fair value hedge accounting adjustments(B)		(80.5)	(77.1)
Total Long-term Debt		$10,046.3	$7,634.1
Less: Current portion of long-term debt		(615.0)	(548.3)
Less: Long-term debt – related party		(150.7)	(652.0)
Long-term Debt		$9,280.6	$6,433.8

(A)Refer to the "NEOM Green Hydrogen Project Financing" section below for additional information.

(B)Refer to Note 14, Financial Instruments, for additional information.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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