Derivative Financial Instruments and Hedging (Tables)

3 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]


	December 31, 2020		September 30, 2020

Commodity contracts	$	36.9	$	24.7
Energy contracts	76.0		87.1
Foreign exchange contracts - Forward contracts	39.0		28.9
Interest rate swaps	621.3		621.7
Interest rate swaps - Rate-lock swaps	1,666.0		1,666.0
Interest rate swaps - Options	433.3		433.3

Derivative Instruments in Condensed Consolidated Balance Sheets



	Balance Sheet Location	December 31, 2020		September 30, 2020
Asset Derivatives:
Commodity contracts	Prepaid expenses and other current assets	$	6.6	$	5.0
Energy contracts	Prepaid expenses and other current assets	1.6		1.8
Commodity contracts	Other assets	5.9		0.1
Energy contracts	Other assets	1.7		0.9
Foreign exchange contracts	Prepaid expenses and other current assets	—		0.1

Interest rate swaps	Prepaid expenses and other current assets	2.1		6.8
Interest rate swaps	Other assets	7.7		—
		$	25.6	$	14.7

Liability Derivatives:
Commodity contracts	Other current liabilities	$	0.9	$	1.4
Energy contracts	Other current liabilities	3.8		10.1
Energy contracts	Other liabilities	0.9		3.9
Foreign exchange contracts	Other current liabilities	1.4		—

Interest rate swaps	Other current liabilities	164.1		176.4
Interest rate swaps	Other liabilities	322.3		351.3
		$	493.4	$	543.1

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 December 31, 2020 and 2019.


Derivatives Not Designated as Hedging Instruments	Statement of Operations Location	(Gain) Loss Recognized in Statement of Operations
		2020		2019
Commodity contracts	Cost of goods sold	$	(7.4)	$	(1.9)
Energy contracts	Cost of goods sold	(8.0)		(2.5)
Foreign exchange contracts	Selling, general and administrative expenses	1.5		—

Interest rate swaps	Interest expense, net	0.5		—
Interest rate swaps	Income on swaps, net	(41.6)		(61.4)


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

Interest rate swaps	$	—	$	(1.3)	$	0.5	$	7.2	Interest expense, net
Cross-currency swaps	—		34.6		—		—		Income on swaps, net

(a)For the three months ended December 31, 2020, this amount includes the amortization of previously unrealized losses on BellRing’s interest rate swaps that were de-designated as hedging instruments as of April 1, 2020. For the three months ended December 31, 2019, this amount includes the amortization of previously unrealized losses on interest rate swaps that were de-designated as hedging instruments in the first quarter of fiscal 2020.

Net Hedging Losses (Gains) on Interest Rate Swaps

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 “Income on swaps, net” in the Condensed Consolidated Statements of Operations.


Three Months Ended December 31,	Statement of Operations Location	Mark-to-Market (Gain), net (a)		Cash Settlements Paid, Net (b)		Net Loss Reclassified from Accumulated OCI including NCI (c)
	Interest expense, net	$	(1.2)	$	1.2	$	0.5
	Income on swaps, net	(43.1)		1.5		—
2020	Total	$	(44.3)	$	2.7	$	0.5

	Interest expense, net	$	—	$	—	$	7.2
	Income on swaps, net	(80.5)		19.1		—
2019	Total	$	(80.5)	$	19.1	$	7.2

(a)Includes non-cash adjustments related to interest rate swaps that were not designated as hedging instruments.

(b)Includes cash settlements recognized in earnings related to interest rate swaps that were not designated as hedging instruments.

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