

	October 31, 2019
	Fair Value Measurement										Balance Sheet Location
(in millions)	Level 1		Level 2			Level 3		Total
Interest rate derivatives	$	—	$	1.3		$	—	$	1.3		Other long-term assets and other current assets
Interest rate derivatives	—		(25.0		)	—		(25.0		)	Other long-term liabilities and other current liabilities
Foreign exchange hedges	—		0.9			—		0.9			Other current assets
Foreign exchange hedges	—		(0.2		)	—		(0.2		)	Other current liabilities
Insurance annuity	—		—			20.0		20.0			Other long-term assets
Cross currency swap	—		10.6			—		10.6			Other long-term assets and other current assets
Total	$	—	$	(12.4	)	$	20.0	$	7.6

	October 31, 2018
	Fair Value Measurement										Balance Sheet Location
(in millions)	Level 1		Level 2			Level 3		Total
Interest rate derivatives	$	—	$	16.5		$	—	$	16.5		Other long-term assets and other current assets
Foreign exchange hedges	—		2.6			—		2.6			Other current assets
Foreign exchange hedges	—		(0.7		)	—		(0.7		)	Other current liabilities
Insurance annuity	—		—			20.4		20.4			Other long-term assets
Cross currency swap	—		5.2			—		5.2			Other long-term assets and other current assets
Total	$	—	$	23.6		$	20.4	$	44.0

The carrying amounts of cash and cash equivalents, trade accounts receivable, notes receivable, accounts payable, current liabilities and short-term borrowings as of October 31, 2019 and 2018 approximate their fair values because of the short-term nature of these items and are not included in this table.

The Company has various borrowing facilities which charge interest based on the one month U.S. dollar LIBOR plus an interest spread. In 2019, the Company entered into six amortizing interest rate swaps. These six interest rate swaps have a total initial notional amount of $1,300.0 million and amortize to $200.0 million over a five year term. The outstanding notional as of October 31, 2019 is $1,000.0 million. The Company will receive variable rate interest payments based upon one month U.S. dollar LIBOR, and in return the Company is obligated to pay interest at a weighted-average interest rate of 2.49% plus an interest spread. This effectively converted the borrowing rate on an amount of debt equal to the outstanding notional amount of the interest rate swap from a variable rate to a fixed rate.

In 2017, the Company entered into an interest swap with a notional amount of $300.0 million. As of February 1, 2017, the Company began to receive variable rate interest payments based upon one month U.S. dollar LIBOR and in return was obligated to pay interest at a fixed rate of 1.19% plus an interest spread. This effectively converted the borrowing rate on $300.0 million of debt from a variable rate to a fixed rate.

These derivatives are designated as cash flow hedges for accounting purposes. Accordingly, the gain or loss on these derivative instruments are reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. See Note 17 to the Consolidated Financial Statements for additional disclosures of the gain or loss included within other comprehensive income. The assumptions used in measuring fair value of these interest rate derivatives are considered level 2 inputs, which are based upon observable market rates, including LIBOR and interest paid based upon a designated fixed rate over the life of the swap agreements.

Gains reclassified to earnings under these contracts were $3.0 million for the year ended October 31, 2019. Gains reclassified to earnings under these contracts were $1.8 million for the year ended October 31, 2018. A derivative loss of $8.1 million, based upon interest rates at October 31, 2019, is expected to be reclassified from accumulated other comprehensive income (loss) to earnings in the next twelve months.

The Company conducts business in various international currencies and is subject to risks associated with changing foreign exchange rates. The Company’s objective is to reduce volatility associated with foreign exchange rate changes. Accordingly, the Company enters into various contracts that change in value as foreign exchange rates change to protect the value of certain existing foreign currency assets and liabilities, commitments and anticipated foreign currency cash flows. As of October 31, 2019, the Company had outstanding foreign currency forward contracts in the notional amount of $275.0 million ($194.4 million as of October 31, 2018). Adjustments to fair value are recognized in earnings, offsetting the impact of the hedged profits. The assumptions used in measuring fair value of foreign exchange hedges are considered level 2 inputs, which were based on observable market pricing for similar instruments, principally foreign exchange futures contracts.

Realized gains (losses) recorded in other expense, net under fair value contracts were $4.6 million, $(9.2) million and $(1.8) million for the years ended October 31, 2019, 2018 and 2017, respectively. The Company recognized in other expense, net an unrealized net gain (loss) of $0.7 million, $1.9 million and $(0.5) million in the years ended October 31, 2019, 2018 and 2017, respectively.

The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. On March 6, 2018, the Company entered into a cross currency interest rate swap agreement that synthetically swaps $100.0 million of fixed rate debt to Euro denominated fixed rate debt at a rate of 2.35%. The agreement is designated as a net investment hedge for accounting purposes and will mature on March 6, 2023. Accordingly, the gain or loss on this derivative instrument is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted, or liquidated. Interest payments received for the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net on the consolidated statements of income. For the year ended October 31, 2019 and 2018, gains recorded in interest expense, net under the cross currency swap agreement were $2.4 million and $1.6 million, respectively. See Note 17 to the Consolidated Financial Statements for additional disclosure of the gain or loss included within other comprehensive income. The assumptions used in measuring fair value of the cross currency swap are considered level 2 inputs, which are based upon the Euro to United States dollar exchange rate market.

The fair values of the Company’s 2019 Credit Agreement, 2017 Credit Agreement, and U.S. Receivables Facility and Foreign Receivables Facilities (collectively, "Accounts Receivables Facilities") do not materially differ from carrying value as the Company’s cost of borrowing is variable and approximates current borrowing rates. The fair values of the Company’s long-term obligations are estimated based on either the quoted market prices for the same or similar issues or the current interest rates offered for the debt of the same remaining maturities, which are considered level 2 inputs in accordance with ASC Topic 820, “Fair Value Measurements and Disclosures.”



(in millions)	October 31, 2019		October 31, 2018
Senior Notes due 2019 estimated fair value	$	—	$	257.4
Senior Notes due 2021 estimated fair value	248.1		263.4
Senior Notes due 2027 estimated fair value	537.9		—
Assets held by special purpose entities estimated fair value	51.9		51.6

On an annual basis the Company compares the asset holdings of its pension plan to targets it previously established. The pension plan assets are categorized as equity securities, debt securities, fixed income securities, insurance annuities or other assets, which are considered level 1, level 2 and level 3 fair value measurements. The typical asset holdings include:



	Quantitative Information about Level 3 Fair Value Measurements
(in millions)	Fair Value of Impairment		Valuation Technique	Unobservable Input	Range of Input Values
October 31, 2019
Impairment of Net Assets Held for Sale	$	2.1	Indicative Bids	Indicative Bids	N/A
Impairment of Long Lived Assets	5.7		Sales Value	Sales Value	N/A
Total	$	7.8

October 31, 2018
Impairment of Net Assets Held for Sale	$	0.7	Broker Quote / Indicative Bids	Indicative Bids	N/A
Impairment of Long Lived Assets	7.6		Sales Value	Sales Value	N/A
Total	$	8.3

During the year ended October 31, 2019, the Company wrote down long-lived assets with a carrying value of $5.9 million to a fair value of $0.2 million, resulting in recognized asset impairment charges of $5.7 million. These charges include $0.6 million related to properties, plants and equipment, net, in the Rigid Industrial Packaging & Services segment, and $5.1 million related to properties, plants and equipment, net, in the Paper Packaging & Services segment.

During the year ended October 31, 2018, the Company wrote down long-lived assets with a carrying value of $10.7 million to a fair value of $3.1 million, resulting in recognized asset impairment charges of $7.6 million. The $7.6 million of impairment charges was all related to properties, plants and equipment, net, in the Rigid Industrial Packaging & Services segment.

During the year ended October 31, 2017, the Company wrote down long-lived assets with a carrying value of $3.8 million to a fair value of $1.6 million, resulting in recognized asset impairment charges of $2.2 million. These charges include $1.9 million related to properties, plants and equipment, net, in the Rigid Industrial Packaging & Services segment and $0.3 million of properties, plants and equipment, net, in the Flexible Products & Services segment.

The assumptions used in measuring fair value of long-lived assets are considered level 3 inputs, which include bids received from third parties, recent purchase offers, market comparable information and discounted cash flows based on assumptions that market participants would use.

During the year ended October 31, 2018, the Company wrote down the assets and liabilities of one asset group that was held for sale with a carrying value of $2.9 million to a fair value of $2.2 million, resulting in recognized asset impairment charges of $0.7 million for goodwill allocated to the business classified as held for sale.

During the year ended October 31, 2017, the Company wrote down the assets and liabilities of one asset group that was held for sale with a carrying value of $69.2 million to a fair value of $63.6 million, resulting in recognized asset impairment charges of $5.6 million for goodwill allocated to the business classified as held for sale. Additionally, during the year ended October 31, 2017, one asset group that was classified as held for sale at October 31, 2016 was reclassified to held and used at net realizable value, resulting in no impairment.