Other Comprehensive Income (Loss)

9 Months Ended

Jun. 30, 2021

Other Comprehensive Income (Loss), Net of Tax [Abstract]

The following tables represent the changes in Other comprehensive income (loss) and Accumulated other comprehensive income (loss) by component for the three months ended June 30, 2021 and 2020:


	Three Months Ended June 30, 2021
	Other comprehensive income (loss)										Accumulated other comprehensive income (loss)
	Prior to reclassification		Reclassification from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance 2
Derivative instruments designated as hedges 1:
Currency exchange contracts	$	2.2	$	(1.2)	$	1.0	$	(0.3)	$	0.7	$	(1.2)	$	0.7	$	(0.5)
Interest rate swaps	7.4		(4.0)		3.4		(0.8)		2.6		(22.5)		2.6		(19.9)
Cross-currency swaps	(2.7)		—		(2.7)		0.6		(2.1)		4.9		(2.1)		2.8
Derivative instruments designated as hedges total	$	6.9	$	(5.2)	$	1.7	$	(0.5)	$	1.2	$	(18.8)	$	1.2	$	(17.6)
Foreign currency translation adjustment	11.7		—		11.7		—		11.7		(95.9)		11.7		(84.2)
Change in pension and postretirement defined benefit plans	(0.1)		1.2		1.1		(0.3)		0.8		(38.5)		0.8		(37.7)
Total	$	18.5	$	(4.0)	$	14.5	$	(0.8)	$	13.7	$	(153.2)	$	13.7	$	(139.5)


	Three Months Ended June 30, 2020
	Other comprehensive income (loss)										Accumulated other comprehensive income (loss)
	Prior to reclassification		Reclassification from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance
Derivative instruments designated as hedges 1:
Currency exchange contracts	$	0.4	$	(1.2)	$	(0.8)	$	0.2	$	(0.6)	$	—	$	(0.6)	$	(0.6)
Interest rate swaps	(2.9)		(1.7)		(4.6)		1.1		(3.5)		(34.8)		(3.5)		(38.3)
Cross-currency swaps	(3.5)		—		(3.5)		0.9		(2.6)		16.3		(2.6)		13.7
Derivative instruments designated as hedges total	$	(6.0)	$	(2.9)	$	(8.9)	$	2.2	$	(6.7)	$	(18.5)	$	(6.7)	$	(25.2)
Foreign currency translation adjustment	17.1		—		17.1		—		17.1		(153.9)		17.1		(136.8)
Change in pension and postretirement defined benefit plans	0.2		1.4		1.6		(0.6)		1.0		(51.2)		1.0		(50.2)
Total	$	11.3	$	(1.5)	$	9.8	$	1.6	$	11.4	$	(223.6)	$	11.4	$	(212.2)

The following tables represent the changes in Other comprehensive income (loss) and Accumulated other comprehensive income (loss) by component for the nine months ended June 30, 2021 and 2020.


	Nine Months Ended June 30, 2021
	Other comprehensive income (loss)										Accumulated other comprehensive income (loss)
	Prior to reclassification		Reclassification from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance 2
Derivative instruments designated as hedges 1:
Currency exchange contracts	$	2.8	$	(3.0)	$	(0.2)	$	—	$	(0.2)	$	(0.3)	$	(0.2)	$	(0.5)
Interest rate swaps	31.2		(10.7)		20.5		(4.7)		15.8		(35.7)		15.8		(19.9)
Cross-currency swaps	(5.0)		—		(5.0)		1.1		(3.9)		6.7		(3.9)		2.8
Derivative instruments designated as hedges total	$	29.0	$	(13.7)	$	15.3	$	(3.6)	$	11.7	$	(29.3)	$	11.7	$	(17.6)
Foreign currency translation adjustment	26.5		—		26.5		—		26.5		(110.7)		26.5		(84.2)
Change in pension and postretirement defined benefit plans	(0.3)		3.7		3.4		(0.9)		2.5		(40.2)		2.5		(37.7)
Total	$	55.2	$	(10.0)	$	45.2	$	(4.5)	$	40.7	$	(180.2)	$	40.7	$	(139.5)


	Nine Months Ended June 30, 2020
	Other comprehensive income (loss)										Accumulated other comprehensive income (loss)
	Prior to reclassification		Reclassification from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance
Derivative instruments designated as hedges 1:
Currency exchange contracts	$	0.1	$	(1.1)	$	(1.0)	$	0.2	$	(0.8)	$	0.2	$	(0.8)	$	(0.6)
Interest rate swaps	(41.7)		(1.3)		(43.0)		9.9		(33.1)		(5.2)		(33.1)		(38.3)
Cross-currency swaps	1.9		—		1.9		(0.4)		1.5		12.2		1.5		13.7
Derivative instruments designated as hedges total	$	(39.7)	$	(2.4)	$	(42.1)	$	9.7	$	(32.4)	$	7.2	$	(32.4)	$	(25.2)
Foreign currency translation adjustment	8.6		—		8.6		—		8.6		(145.4)		8.6		(136.8)
Change in pension and postretirement defined benefit plans	0.1		(7.7)		(7.6)		1.7		(5.9)		(44.3)		(5.9)		(50.2)
Total	$	(31.0)	$	(10.1)	$	(41.1)	$	11.4	$	(29.7)	$	(182.5)	$	(29.7)	$	(212.2)

1 See Note 5. Derivative Instruments and Hedging Activity for information regarding our hedging strategies.

2 The estimated net amount of gains and losses reported in Accumulated other comprehensive income (loss) related to our derivative instruments designated as hedges as of June 30, 2021 that are expected to be reclassified into earnings within the next 12 months is an expense of $6.0 million.

The following tables represent the items reclassified out of Accumulated other comprehensive income (loss) and the related tax effects for the three and nine months ended June 30, 2021 and 2020:


	Three Months Ended June 30
	2021						2020
	Amount reclassified		Tax effect		Net of tax		Amount reclassified		Tax effect		Net of tax
Derivative instruments designated as hedges:
Currency exchange contracts 1	$	(1.2)	$	0.3	$	(0.9)	$	(1.2)	$	0.4	$	(0.8)
Interest rate swaps 2	(4.0)		1.0		(3.0)		(1.7)		0.4		(1.3)
Derivative instruments designated as hedges total	$	(5.2)	$	1.3	$	(3.9)	$	(2.9)	$	0.8	$	(2.1)
Change in pension and postretirement defined benefit plans 3	$	1.2	$	(0.3)	$	0.9	$	1.4	$	(0.6)	$	0.8


	Nine Months Ended June 30
	2021						2020
	Amount reclassified		Tax effect		Net of tax		Amount reclassified		Tax effect		Net of tax
Derivative instruments designated as hedges:
Currency exchange contracts 1	$	(3.0)	$	0.7	$	(2.3)	$	(1.1)	$	0.3	$	(0.8)
Interest rate swaps 2	(10.7)		2.5		(8.2)		(1.3)		0.3		(1.0)
Derivative instruments designated as hedges total	$	(13.7)	$	3.2	$	(10.5)	$	(2.4)	$	0.6	$	(1.8)
Change in pension and postretirement defined benefit plans 3	$	3.7	$	(0.9)	$	2.8	$	(7.7)	$	1.7	$	(6.0)

1 Reclassified from Accumulated other comprehensive income (loss) into Investment income (expense) and other, net.

2 Reclassified from Accumulated other comprehensive income (loss) into Interest expense.

3 Reclassified from Accumulated other comprehensive income (loss) into Cost of goods sold and Investment income (expense) and other, net. These components are included in the computation of net periodic pension expense. See Note 6. Retirement and Postretirement Benefit Plans for further information.