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Derivative Financial Instruments and Hedging (Tables)

3 Months Ended

9 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]


	June 30, 2020		September 30, 2019
Not designated as hedging instruments under ASC Topic 815:
Commodity contracts	$	38.0	$	47.1
Energy contracts	88.7		39.8
Foreign exchange contracts - Forward contracts	1.7		—
Interest rate swaps	622.0		73.1
Interest rate swaps - Rate-lock swaps	1,717.8		1,531.0
Interest rate swaps - Options	433.3		—
Designated as hedging instruments under ASC Topic 815:
Foreign exchange contracts - Cross-currency swaps	—		448.7
Interest rate swaps	—		200.0

Derivative Instruments in Condensed Consolidated Balance Sheets


		Fair Value						Portion Designated as Hedging Instruments
	Balance Sheet Location	June 30, 2020		September 30, 2019		June 30, 2020		September 30, 2019
Asset Derivatives:
Commodity contracts	Prepaid expenses and other current assets	$	3.3	$	1.9	$	—	$	—
Energy contracts	Prepaid expenses and other current assets	0.5		0.7		—		—
Commodity contracts	Other assets	0.4		0.1		—		—
Energy contracts	Other assets	1.1		—		—		—
Foreign exchange contracts	Prepaid expenses and other current assets	—		1.3		—		1.3
Foreign exchange contracts	Other assets	—		19.2		—		19.2

Interest rate swaps	Other assets	11.4		—		—		—
		$	16.7	$	23.2	$	—	$	20.5

Liability Derivatives:
Commodity contracts	Other current liabilities	$	2.2	$	1.0	$	—	$	—
Energy contracts	Other current liabilities	10.5		1.5		—		—
Energy contracts	Other liabilities	4.9		0.1		—		—


Interest rate swaps	Other current liabilities	32.7		85.1		—		1.6
Interest rate swaps	Other liabilities	529.8		330.4		—		6.2
		$	580.1	$	418.1	$	—	$	7.8

Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Other Comprehensive Income

The following tables present the effects of the Company’s derivative instruments on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income for the three months ended June 30, 2020 and 2019.


Derivatives Not Designated as Hedging Instruments	Statement of Operations Location	Loss (Gain) Recognized in Statement of Operations
				2020		2019
Commodity contracts	Cost of goods sold	$	0.8	$	(5.7)
Energy contracts	Cost of goods sold	(2.8)		2.6
Foreign exchange contracts	Selling, general and administrative expenses	0.1		—

Interest rate swaps	Interest expense, net	2.1		—
Interest rate swaps	Expense on swaps, net	29.2		86.2


Derivatives Designated as Hedging Instruments	Loss (Gain) Recognized in OCI including NCI									Loss (Gain) Reclassified from Accumulated OCI including NCI into Earnings (a)				Statement of Operations Location
			2020			2019			2020			2019

Interest rate swaps	$	—		$	4.6		$	0.6		$	(0.4)		Interest expense, net
Cross-currency swaps	—			(18.2)			—			—			Expense on swaps, net

(a)For the three months ended June 30, 2020, this amount includes the amortization of previously unrealized losses on interest rate swaps that were de-designated as hedging instruments as of April 1, 2020


Derivatives Not Designated as Hedging Instruments	Statement of Operations Location	Loss (Gain) Recognized in Statement of Operations
				2020		2019
Commodity contracts	Cost of goods sold	$	6.9	$	(2.7)
Energy contracts	Cost of goods sold	20.7		2.6


Interest rate swaps	Interest expense, net	2.1		—
Interest rate swaps	Expense on swaps, net	192.4		200.9


Derivatives Designated as Hedging Instruments	Loss (Gain) Recognized in OCI including NCI									Loss (Gain) Reclassified from Accumulated OCI including NCI into Earnings (a)				Statement of Operations Location
			2020			2019			2020			2019

Interest rate swaps	$	9.7		$	11.7		$	7.6		$	(30.9)		Interest expense, net
Cross-currency swaps	(32.2)			(37.8)			—			—			Expense on swaps, net

(a)For the nine months ended June 30, 2020, this amount includes the reclassification of previously unrealized losses on interest rate swaps that were de-designated as hedging instruments in the first quarter of fiscal 2020, as well as the amortization of previously unrealized losses on interest rate swaps that were de-designated as hedging instruments as of April 1, 2020.

The following table presents the components of the Company’s net hedging losses (gains) on interest rate swaps, which are included in “Interest expense, net” and “Expense on swaps, net” in the Condensed Consolidated Statements of Operations for the nine months ended June 30, 2020 and 2019

Net Hedging Losses (Gains) on Interest Rate Swaps


Three Months Ended June 30,	Statement of Operations Location	Mark-to-Market Loss (a)		Cash Settlements Paid (Received), Net (b)		Net Loss Reclassified from Accumulated OCI including NCI (c)
	Interest expense, net	$	0.6	$	0.9	$	0.6
	Expense on swaps, net	3.0		26.2		—
2020	Total	$	3.6	$	27.1	$	0.6

	Interest expense, net	$	—	$	(0.4)	$	—
	Expense on swaps, net	86.1		0.1		—
2019	Total	$	86.1	$	(0.3)	$	—

(a)Includes non-cash adjustments related to interest rate swaps that were not designated as hedging instruments during the three months ended June 30, 2020 or 2019.

(b)Includes cash settlements recognized in earnings related to interest rate swaps that were not designated as hedging instruments during the nine months ended June 30, 2020 or 2019. Additionally, includes cash settlements reclassified from accumulated OCI into earnings related to interest rate swaps that had been previously designated as hedging instruments during the three months ended June 30, 2020 or 2019.

(c)Includes the amortization of previously unrealized losses on interest rate swaps over the term of the related debt that were de-designated as hedging instruments.


Nine Months Ended June 30,	Statement of Operations Location	Mark-to-Market Loss (a)		Cash Settlements Paid (Received), Net (b)		Net Loss Reclassified from Accumulated OCI including NCI (c)
	Interest expense, net	$	0.6	$	0.7	$	7.8
	Expense on swaps, net	146.7		45.7		—
2020	Total	$	147.3	$	46.4	$	7.8

	Interest expense, net	$	—	$	(30.9)	$	—
	Expense on swaps, net	200.5		0.4		—
2019	Total	$	200.5	$	(30.5)	$	—

(a)Includes non-cash adjustments related to interest rate swaps that were not designated as hedging instruments during the nine months ended June 30, 2020 or 2019.

(c)Includes the reclassification of previously unrealized losses on interest rate swaps that were de-designated as hedging instruments, as well as the amortization of previously unrealized losses on interest rate swaps over the term of the related debt that were de-designated as hedging instruments.