REDEEMABLE NONCONTROLLING INTERESTS

6 Months Ended

Apr. 30, 2020

Mandatorily Redeemable Noncontrolling Interests

The terms of the joint venture agreement for one joint venture within the Rigid Industrial Packaging & Services segment include mandatory redemption by the Company, in cash, of the noncontrolling interest holders’ equity at a formulaic price after the expiration of a lockout period specific to each noncontrolling interest holder. The redemption features cause the interest to be classified as a mandatorily redeemable instrument under the accounting guidance, and this interest is included at the current redemption value each period in long-term or short-term liabilities of the Company, as applicable. The impact of marking to redemption value at each period end is recorded in interest expense. The carrying amount is not reduced below the initially recorded contribution. The Company has a contractual obligation to redeem the outstanding equity interest of each remaining partner in 2022 and 2023, respectively.

The following table summarizes the change in mandatorily redeemable noncontrolling interest for the six months ended April 30, 2020:


(in millions)	Mandatorily Redeemable Noncontrolling Interest






Balance as of October 31, 2019	$	8.4
Current period mark to redemption value	—

Balance as of April 30, 2020	$	8.4

Redeemable Noncontrolling Interests

Redeemable noncontrolling interests related to two joint ventures within the Paper Packaging & Services segment and one joint venture within the Rigid Industrial Packaging & Services segment are held by the respective noncontrolling interest owners. The holders of these interests share in the profits and losses of these entities on a pro-rata basis with the Company. However, the noncontrolling interest owners have the right to put all or a portion of those noncontrolling interests to the Company at a formulaic price after a set period of time, specific to each agreement.

Redeemable noncontrolling interests are reflected in the interim condensed consolidated balance sheets at redemption value. The following table summarizes the change in redeemable noncontrolling interest for the six months ended April 30, 2020:


(in millions)	Redeemable Noncontrolling Interest







Balance as of October 31, 2019	$	21.3
Current period mark to redemption value	(1.1)

Redeemable noncontrolling interest share of income and other	0.1
Dividends to redeemable noncontrolling interest and other	(0.3)
Balance as of April 30, 2020	$	20.0