REDEEMABLE NONCONTROLLING INTERESTS

9 Months Ended

Jul. 31, 2019

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 Company has a contractual obligation to redeem the outstanding equity interest of each remaining partner in 2021 and 2022, respectively.

The following table summarizes the change in mandatorily redeemable noncontrolling interest for the nine months ended July 31, 2019:



(in millions)	Mandatorily Redeemable Noncontrolling Interest
Balance as of October 31, 2018	$	8.6
Current period mark to redemption value	(0.2		)
Balance as of July 31, 2019	$	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.

On November 15, 2018, one of the noncontrolling interest owners related to one of the Paper Packaging & Services joint ventures exercised their put option for all of their ownership interest. As of July 31, 2019, the Company made a payment for approximately $10.1 million to the noncontrolling interest owner. The Company also entered into a Stock Purchase Agreement with another noncontrolling interest owner related to the same Paper Packaging & Services joint venture, pursuant to which the owner received a $1.8 million payment for certain of its equity.

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 nine months ended July 31, 2019:



(in millions)	Redeemable Noncontrolling Interest
Balance as of October 31, 2018	$	35.5
Current period mark to redemption value	(3.3		)
Repurchase of redeemable shareholder interest	(11.9		)
Redeemable noncontrolling interest share of income and other	1.8
Dividends to redeemable noncontrolling interest and other	0.4
Balance as of July 31, 2019	$	22.5