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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 11 Months Ended
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Sep. 30, 2025
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 of those assets and (liabilities) measured on a recurring basis as of September 30, 2025 and October 31, 2024:
| September 30, 2025
| Assets |  | Liabilities
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Interest rate derivatives | $ | — |  |  | $ | 22.1 |  |  | $ | — |  |  | $ | 22.1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign exchange hedges | — |  |  | 0.5 |  |  | — |  |  | 0.5 |  |  | — |  |  | (0.6) |  |  | — |  |  | (0.6) |
Insurance annuity | — |  |  | — |  |  | 20.3 |  |  | 20.3 |  |  | — |  |  | — |  |  | — |  |  | — |
Cross currency swap | — |  |  | 5.9 |  |  | — |  |  | 5.9 |  |  | — |  |  | (51.0) |  |  | — |  |  | (51.0) |
| October 31, 2024
| Assets |  | Liabilities
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Interest rate derivatives | $ | — |  |  | $ | 40.4 |  |  | $ | — |  |  | $ | 40.4 |  |  | $ | — |  |  | $ | (5.6) |  |  | $ | — |  |  | $ | (5.6) |
Foreign exchange hedges | — |  |  | 0.2 |  |  | — |  |  | 0.2 |  |  | — |  |  | (0.1) |  |  | — |  |  | (0.1) |
Insurance annuity | — |  |  | — |  |  | 18.9 |  |  | 18.9 |  |  | — |  |  | — |  |  | — |  |  | — |
Cross currency swap | — |  |  | 17.6 |  |  | — |  |  | 17.6 |  |  | — |  |  | (6.4) |  |  | — |  |  | (6.4) |
The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts payable, current liabilities and short-term borrowings as of September 30, 2025 and October 31, 2024 approximate their fair values because of the short-term nature of these items and are not included in this table. Interest Rate Derivatives As of September 30, 2025, the Company has various interest rate swaps with a total notional amount of $562.5 million ($1,400.0 million as of October 31, 2024), maturing between March 1, 2027 and July 16, 2029. The Company will receive variable rate interest payments based upon one-month U.S. dollar SOFR, and in return the Company will be obligated to pay interest at a weighted average fixed interest rate of 1.87%. This effectively will convert the borrowing rate on an amount of debt equal to the notional amount of the interest rate swaps 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 14 herein for additional disclosures of the aggregate 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 SOFR and interest paid based upon a designated fixed rate over the life of the swap agreements. Gains reclassified to earnings under these contracts were $17.6 million, $34.8 million and $28.5 million for the years ended September 30, 2025 (11-month), October 31, 2024 and October 31, 2023. A derivative gain of $8.4 million, based upon interest rates at September 30, 2025, is expected to be reclassified from accumulated other comprehensive income (loss) to earnings in the next twelve months. During the year ended September 30, 2025 (11-month), the Company accelerated the reclassification of amounts in other comprehensive income to earnings as a result of the hedged forecasted transactions becoming probable not to occur. The accelerated amounts were a loss of $5.3 million. 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 September 30, 2025, the Company had outstanding foreign currency forward contracts in the notional amount of $165.0 million ($74.1 million as of October 31, 2024). 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 recorded in other expense, net under fair value contracts were $0.4 million, $1.0 million and $1.2 million for the years ended September 30, 2025 (11-month), October 31, 2024 and October 31, 2023, respectively. Unrealized net gains (losses) recognized by the Company in other expense, net were $(0.1) million, $0.1 million and zero for the years ended September 30, 2025 (11-month), October 31, 2024 and October 31, 2023, respectively. Cross Currency Swap As of September 30, 2025, the Company had various cross currency interest rate swaps that synthetically swap $534.9 million ($447.6 million as of October 31, 2024) of U.S. fixed rate debt to Euro denominated fixed rate debt. The Company receives a weighted average rate of 1.64% on these swaps. These agreements are designated as either net investment hedges or cash flow hedges for accounting purposes and will mature between October 5, 2026 and November 3, 2028. The gain or loss on the net investment hedge derivative instruments is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted, or liquidated. See Note 14 herein for additional disclosures of the aggregate gain or loss included within other comprehensive income. The gain or loss on the cash flow hedge derivative instruments is included in the unrealized foreign exchange component of other expense, offset by the underlying gain or loss on the underlying cash flows that are being hedged. 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. 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. For the years ended September 30, 2025 (11-month), October 31, 2024 and October 31, 2023, gains recorded in interest expense, net under the cross currency swap agreements were $6.9 million, $6.4 million and $5.1 million, respectively. During the first quarter of 2025, the Company executed a cash settlement of certain cross-currency swap contracts and simultaneously entered into new cross-currency swaps at prevailing market rates. The net cash settlement from restriking these swaps resulted in a cash receipt of $22.5 million of which $11.5 million related to cross-currency swap contracts designated as net investment hedges and $11.0 million related to cross-currency swap contracts designated as cash flow hedges. The net investment hedges that were settled resulted in a final gain of $11.3 million, which is included in the foreign currency translation component of other comprehensive income (“OCI”) and the final OCI balance on these transactions is maintained on the balance sheet until the underlying hedged subsidiary is either sold or substantially liquidated. For the cash flow hedges that were settled, the gain will be recognized to income, through interest expense, over time through an amortization of the remaining OCI balance at termination. This OCI balance amounted to $1.8 million and will be recognized on a straight-line basis to the income statement through the transaction’s original maturity date of October 5, 2026. Other Financial Instruments The fair values of the Company’s 2022 Credit Agreement, the 2023 Credit Agreement, the U.S. RFA and the European RFA 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 820, “Fair Value Measurements and Disclosures.” Pension Plan Assets 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. See Note 9 herein for additional disclosures related to pension plan assets. The typical asset holdings include: •Common stock: Valued based on quoted prices and are primarily exchange-traded. •Mutual funds: Valued at the Net Asset Value (“NAV”) available daily in an observable market. •Common collective trusts: Unit value calculated based on the observable NAV of the underlying investment. •Pooled separate accounts: Unit value calculated based on the observable NAV of the underlying investment. •Government and corporate debt securities: Valued based on readily available inputs such as yield or price of bonds of comparable quality, coupon, maturity and type. •Insurance annuity: Value is derived based on the value of the corresponding liability. Non-Recurring Fair Value Measurements 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. 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. On an annual basis or when events or circumstances indicate impairment may have occurred, the Company performs impairment tests for goodwill and indefinite-lived intangibles as defined under ASC 350, “Intangibles - Goodwill and Other.” The Company recognized asset impairment charges of $37.9 million and $2.6 million for the years ended September 30, 2025 (11-month) and October 31, 2024. The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of items including: long-lived assets held and used, net assets held for sale, goodwill and indefinite-lived intangibles for the years ended September 30, 2025 (11-month) and October 31, 2024:
| Quantitative Information about Non-Recurring Fair Value Measurements
(in millions) | Fair Value of Impairment |  | Valuation Technique |  | Unobservable Input |  | Range of Input Values
September 30, 2025 |  |  |  |  |  |  |
Impairment of Long-Lived Assets | $ | 23.4 |  |  | Discounted Cash Flows, Indicative Bids |  | Discounted Cash Flows, Indicative Bids |  | N/A
Impairment of Net Assets Held for Sale | 14.5 |  |  | Indicative Bids |  | Indicative Bids |  | N/A
Total | $ | 37.9 |  |  |  |  |  |  |
October 31, 2024 |  |  |  |  |  |  |
Impairment of Long-Lived Assets | $ | 2.6 |  |  | Discounted Cash Flows, Indicative Bids |  | Discounted Cash Flows, Indicative Bids |  | N/A
Total | $ | 2.6 |  |  |  |  |  |  |
During the year ended September 30, 2025 (11-month), the Company wrote down long-lived assets with a carrying value of $49.4 million to a fair value of $26.0 million, resulting in recognized asset impairment charges of $23.4 million. These charges include $0.7 million related to properties, plants and equipment, net, in the Customized Polymer Solutions reportable segment, $2.3 million related to properties, plants and equipment, net, in the Durable Metal Solutions reportable segment, $17.3 million related to properties, plants and equipment, net, in the Sustainable Fiber Solutions reportable segment, $0.5 million related to properties, plants and equipment, net, in the Integrated Solutions reportable segment, $2.4 million related to definite-lived intangibles in the Customized Polymer Solutions reportable segment and $0.2 million related to definite-lived intangibles in the Integrated Solutions reportable segment. During the year ended September 30, 2025 (11-month), the Company also recognized impairment charges of $14.5 million related to net assets held for sale in the Sustainable Fiber Solutions reportable segment. During the year ended October 31, 2024, the Company wrote down long-lived assets with a carrying value of $10.7 million to a fair value of $8.1 million, resulting in recognized asset impairment charges of $2.6 million. These charges include $0.3 million related to properties, plants and equipment, net, in the Customized Polymer Solutions reportable segment, $0.4 million related to properties, plants and equipment, net, in the Durable Metal Solutions reportable segment, $1.7 million related to properties, plants and equipment, net, in the Sustainable Fiber Solutions reportable segment and $0.2 million related to properties, plants and equipment, net, in the Integrated Solutions reportable segment. During the year ended October 31, 2023, the Company wrote down long-lived assets with a carrying value of $30.5 million to a fair value of $10.2 million, resulting in recognized asset impairment charges of $20.3 million. These charges include $0.1 million related to properties, plants and equipment, net, in the Customized Polymer Solutions reportable segment, $1.8 million related to properties, plants and equipment, net, in the Durable Metal Solutions reportable segment, $17.7 million related to properties, plants and equipment, net, in the Sustainable Fiber Solutions reportable segment and $0.7 million related to properties, plants and equipment, net, in the Integrated Solutions reportable segment.

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