Derivative Financial Instruments and Hedging

12 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Hedging

DERIVATIVE FINANCIAL INSTRUMENTS

At September 30, 2024, the Company’s derivative instruments, none of which were designated as hedging instruments under ASC Topic 815, consisted of:

•commodity and energy futures, swaps and option contracts, which relate to inputs that generally will be utilized within the next two years;

•foreign currency forward contracts (“FX contracts”) maturing in the next year that have the effect of hedging currency fluctuations between the U.S. Dollar and the Pound Sterling and between the Euro and the Pound Sterling; and

•pay-fixed, receive-variable interest rate swaps maturing in June 2033 that require monthly settlements and have the effect of hedging interest payments on debt expected to be issued but not yet priced.

Interest rate swaps

During the year ended September 30, 2024, the Company received cash proceeds of $5.2 in connection with the termination of its interest rate swap contracts with a $400.0 notional value.

During the year ended September 30, 2023, the Company paid $55.1 in connection with the termination of $849.3 notional value of its rate-lock swap contracts, of which $43.5 related to the termination of rate-lock swap contracts that contained other-than-insignificant financing elements and were reported as cash flows from financing activities in the Consolidated Statements of Cash Flows. The Company also paid $2.1 in connection with the termination of $332.6 notional value of its interest rate swap option, and received cash proceeds of $6.7 in connection with the termination of its interest rate swap contract with a $200.0 notional value.

During the year ended September 30, 2022, the Company paid $17.0 in connection with the termination of $700.0 notional value of its rate-lock swap contracts. The Company also restructured two of its rate-lock swap contracts, which contained other-than-insignificant financing elements. There were no cash settlements paid or received in connection with these restructurings.

The following table presents the notional amounts of derivative instruments held.


	September 30,
	2024		2023

Commodity and energy contracts	$	111.8	$	263.9

FX contracts	40.5		3.0
Interest rate swap	300.0		700.0

The following table presents the balance sheet location and fair value of the Company’s derivative instruments. The Company does not offset derivative assets and liabilities within the Consolidated Balance Sheets.


		September 30,
	Balance Sheet Location	2024		2023
Asset Derivatives:
Commodity and energy contracts	Prepaid expenses and other current assets	$	4.2	$	3.7

FX contracts	Prepaid expenses and other current assets	0.1		—
Interest rate swaps	Prepaid expenses and other current assets	1.0		10.6


Interest rate swaps	Other assets	—		11.3


		$	5.3	$	25.6

Liability Derivatives:
Commodity and energy contracts	Other current liabilities	$	6.5	16.1

FX contracts	Other current liabilities	0.9		—
Interest rate swaps	Other current liabilities	0.4		—



Interest rate swaps	Other liabilities	7.0		—

		$	14.8	$	16.1

The following table presents the statement of operations location and loss (gain) recognized related to the Company’s derivative instruments.


Derivative Instruments	Statement of Operations Location	Year Ended September 30,
		2024		2023		2022
Commodity and energy contracts	Cost of goods sold	$	37.3	$	35.2	$	(60.7)

FX contracts	Selling, general and administrative expenses	0.8		(0.1)		0.1


Interest rate swaps	Expense (income) on swaps, net	15.7		(39.9)		(268.0)
PHPC Warrants	Other income, net	—		(1.0)		(8.2)

At September 30, 2024 and 2023, the Company had pledged collateral of $3.0 and $23.4, respectively, related to its commodity and energy contracts. These amounts were classified as “Restricted cash” on the Consolidated Balance Sheets.