XML 32 R16.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Financial Instruments and Fair Value Measurements | 6 Months Ended
--- | ---
Apr. 30, 2017
Fair Value Disclosures [Abstract] |
Financial Instruments and Fair Value Measurements | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following table presents the fair value for those assets and (liabilities) measured on a recurring basis as of April 30, 2017 and October 31, 2016:
| April 30, 2017 |  |
| Fair Value Measurement |  |
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Balance Sheet Location
Interest rate derivatives | $ | — |  |  | $ | 8.2 |  |  | $ | — |  |  | $ | 8.2 |  |  | Other long-term assets
Foreign exchange hedges | — |  |  | — |  |  | — |  |  | — |  |  | Prepaid expenses and other current assets
Foreign exchange hedges | — |  |  | (1.5 | ) |  | — |  |  | (1.5 | ) |  | Other current liabilities
Insurance annuity | — |  |  | — |  |  | 19.8 |  |  | 19.8 |  |  | Other long-term assets
Total(1) | $ | — |  |  | $ | 6.7 |  |  | $ | 19.8 |  |  | $ | 26.5 |  |  |
| October 31, 2016 |  |
| Fair Value Measurement |  |
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Balance Sheet Location
Foreign exchange hedges | $ | — |  |  | $ | 0.3 |  |  | $ | — |  |  | $ | 0.3 |  |  | Prepaid expenses and other current assets
Foreign exchange hedges | — |  |  | (0.3 | ) |  | — |  |  | (0.3 | ) |  | Other current liabilities
Insurance annuity | — |  |  | — |  |  | 20.1 |  |  | 20.1 |  |  | Other long-term assets
Total(1) | $ | — |  |  | $ | — |  |  | $ | 20.1 |  |  | $ | 20.1 |  |  |
(1)The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts payable, current liabilities and short-term borrowings as of April 30, 2017 and October 31, 2016 approximate their fair values because of the short-term nature of these items and are not included in this table. Interest Rate Derivatives The Company has various borrowing facilities which charge interest based on the 1 month U.S. dollar LIBOR rate plus an interest spread. During the first quarter of 2017, the Company entered into a forward interest rate 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 1.194%. This effectively converted the borrowing rate on $300.0 million of debt from a variable rate to a fixed rate. This derivative is designated as a cash flow hedge for accounting purposes. Accordingly, any effective portion of the gain or loss on this derivative instrument is 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. Any ineffective portion of the gain or loss on the derivative instrument is recognized into earnings. For additional disclosures of the gain or loss included with other comprehensive income, see also Note 16 to the interim condensed consolidated financial statements. The assumptions used in measuring fair value of the interest rate derivative are considered level 2 inputs, which are based upon LIBOR and interest paid based upon a designated fixed rate over the life of the swap agreements. Foreign Exchange Hedges 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 April 30, 2017, the Company had outstanding foreign currency forward contracts in the notional amount of $101.8 million ($78.9 million as of October 31, 2016). 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 losses recorded in other expense, net under fair value contracts were $0.3 million for the three months ended April 30, 2017 and realized gains were$0.2 million for the three months ended April 30, 2016. Realized losses were $1.5 million and $0.3 million for the six months ended April 30, 2017, and 2016, respectively. Other Financial Instruments The fair values of the Company’s 2017 Credit Agreement and the Receivables Facility 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. The following table presents the estimated fair values of the Company’s senior notes:
(in millions) | April 30, 2017 |  | October 31, 2016
Senior Notes due 2017 |  |  |
Estimated fair value | $ | — |  |  | $ | 302.4 |
Senior Notes due 2019 |  |  |
Estimated fair value | 276.1 |  |  | 280.1 |
Senior Notes due 2021 |  |  |
Estimated fair value | 266.5 |  |  | 264.9 |
Non-Recurring Fair Value Measurements The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of long-lived assets held and used and net assets held for sale for the six months ended April 30, 2017 and 2016:
| Quantitative Information about Level 3 Fair Value Measurements
(in millions) | Fair Value of Impairment |  | Valuation Technique |  | Unobservable Input |  | Range of Input Values
April 30, 2017 |  |  |  |  |  |  |
Impairment of Net Assets Held for Sale | $ | 3.6 |  |  | Broker Quote/ Indicative Bids |  | Indicative Bids |  | N/A
Impairment of Long Lived Assets | 0.3 |  |  | Sales Value |  | Sales Value |  | N/A
Total | $ | 3.9 |  |  |  |  |  |  |
April 30, 2016 |  |  |  |  |  |  |
Impairment of Net Assets Held for Sale | $ | 34.7 |  |  | Broker Quote/ Indicative Bids |  | Indicative Bids |  | N/A
Impairment of Long Lived Assets | 6.1 |  |  | Sales Value |  | Sales Value |  | N/A
Total | $ | 40.8 |  |  |  |  |  |  |
Long-Lived Assets 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. As a result of the Company measuring long-lived assets at fair value on a non-recurring basis, during the six months ended April 30, 2017, the Company recorded impairment charges of $0.3 million. As a result of the Company measuring long-lived assets at fair value on a non-recurring basis, during the six months ended April 30, 2016, the Company recorded impairment charges of $3.8 million related to properties, plants and equipment, net, in the Rigid Industrial Packaging & Services segment, $1.5 million related to a cost method investment in the Paper Packaging & Services segment, and $0.8 million of properties, plants and equipment, net, in the Flexible Products & Services segment. Assets and Liabilities Held for Sale The assumptions used in measuring fair value of assets and liabilities held for sale are considered level 3 inputs, which include recent purchase offers, market comparables and/or data obtained from commercial real estate brokers. During the six month period ended April 30, 2017, one asset group was reclassified to assets and liabilities held for sale, resulting in a $3.6 million impairment to net realizable value. For additional disclosures on the assets and liabilities held for sale, also see Note 5 to the interim condensed consolidated financial statements. Goodwill and Other Intangible Assets On an annual basis or whenever events or circumstances indicate impairment may have occurred, the Company performs impairment tests for goodwill and long lived intangible assets as defined under ASC 350, “Intangibles-Goodwill and Other.” The Company concluded that no impairment existed as of April 30, 2017 and October 31, 2016.

X
- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References No definition available. + Details
Name: | us-gaap_DerivativesAndFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration