REDEEMABLE NONCONTROLLING INTERESTS

12 Months Ended

Oct. 31, 2022

Mandatorily Redeemable Noncontrolling Interests

The terms of the joint venture agreement for one joint venture within the Global Industrial Packaging reportable 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 noncontrolling interest to be classified as a mandatorily redeemable instrument under the accounting guidance, and this noncontrolling 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 the remaining partner in 2023.

The mandatorily redeemable noncontrolling interest balance is $3.4 million as of October 31, 2022 and $8.4 million as of October 31, 2021.

Redeemable Noncontrolling Interests

Redeemable noncontrolling interests related to two joint ventures within the Paper Packaging & Services reportable segment and one joint venture within the Global Industrial Packaging reportable 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 consolidated balance sheets at redemption value. The following table provides the rollforward of the redeemable noncontrolling interest for the years ended October 31, 2022 and 2021:


(in millions)	Redeemable Noncontrolling Interest
Balance as of October 31, 2020	$	20.0
Current period mark to redemption value	2.6

Redeemable noncontrolling interest share of income	2.4
Dividends to redeemable noncontrolling interest and other	(0.9)
Balance as of October 31, 2021	24.1
Current period mark to redemption value	(5.5)
Repurchase of redeemable shareholder interest	(1.9)
Redeemable noncontrolling interest share of income	0.1
Dividends to redeemable noncontrolling interest and other	(1.0)
Balance as of October 31, 2022	$	15.8