In the ordinary course of business, the Company is exposed to commodity price risks relating to the purchases of raw materials and supplies, interest rate risks and foreign currency exchange rate risks. The Company utilizes derivative financial instruments, including (but not limited to) futures contracts, option contracts, forward contracts and swaps, to manage certain of these exposures by hedging when it is practical to do so. The Company does not hold or issue financial instruments for speculative or trading purposes.

Cash flows associated with all derivatives are reported as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows, unless the derivative contains an other-than-insignificant financing element, in which case its cash flows are reported as cash flows from financing activities.

At March 31, 2024, the Company’s derivative instruments, none of which were designated as hedging instruments under ASC Topic 815, “Derivatives and Hedging,” 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 (the “FX contracts”) maturing in the next year that have the effect of hedging currency fluctuations 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.

During the six months ended March 31, 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 six months ended March 31, 2023, the Company paid $43.5 in connection with the termination of $516.7 notional value of its rate-lock swap contracts and received cash proceeds of $6.7 in connection with the termination of its interest rate swap contract with a $200.0 notional value.


	March 31, 2024		September 30, 2023

Commodity contracts	$	222.0	$	215.0
Energy contracts	39.9		48.9
FX contracts	2.3		3.0
Interest rate swaps	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 Condensed Consolidated Balance Sheets.



	Balance Sheet Location	March 31, 2024		September 30, 2023
Asset Derivatives:
Commodity contracts	Prepaid expenses and other current assets	$	2.2	$	1.2
Energy contracts	Prepaid expenses and other current assets	0.4		2.5

Interest rate swaps	Prepaid expenses and other current assets	3.6		10.6
Commodity contracts	Other assets	6.0		—



Interest rate swaps	Other assets	1.6		11.3
		$	13.8	$	25.6

Liability Derivatives:
Commodity contracts	Other current liabilities	$	10.6	$	14.1
Energy contracts	Other current liabilities	4.5		2.0





Interest rate swaps	Other liabilities	1.1		—

		$	16.2	$	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	Three Months Ended March 31,				Six Months Ended March 31,
		2024		2023		2024		2023
Commodity contracts	Cost of goods sold	$	17.6	$	7.8	$	19.2	$	5.7
Energy contracts	Cost of goods sold	(1.8)		5.8		5.7		8.6
FX contracts	Selling, general and administrative expenses	—		0.1		—		—


Interest rate swaps	(Income) expense on swaps, net	(13.3)		9.0		7.8		(3.3)
PHPC Warrants	Other income, net	—		0.7		—		0.5