Rock-Tenn CO

v2.4.1.9

Equity and Other Comprehensive Income	6 Months Ended
	Mar. 31, 2015
Comprehensive Income and Equity [Abstract]
Comprehensive Income and Equity Note	Equity and Other Comprehensive Income Equity The following is a summary of the changes in total equity for the six months ended March 31, 2015 (in millions):   Rock-Tenn Company Shareholders’ Equity   Noncontrolling (1) Interests   Total Equity Balance at September 30, 2014 $ 4,306.8   $ 0.6   $ 4,307.4 Net income 234.9   0.2   235.1 Other comprehensive loss, net of tax (45.9 )   —   (45.9 ) Income tax benefit from share-based plans 16.4   —   16.4 Compensation expense under share-based plans 21.4   —   21.4 Cash dividends declared (per share - $0.508025)(2) (71.6 )   —   (71.6 ) Cash distributions to noncontrolling interests —   (0.3 )   (0.3 ) Issuance of Class A common stock, net of stock received for minimum tax withholdings (26.8 )   —   (26.8 ) Purchases of Class A common stock (8.7 )   —   (8.7 ) Balance at March 31, 2015 $ 4,426.5   $ 0.5   $ 4,427.0 (1)  Excludes amounts related to contingently redeemable noncontrolling interests which are separately classified outside of permanent equity in the mezzanine section of the Condensed Consolidated Balance Sheets. (2)  Includes cash dividends paid, and dividends declared but unpaid, related to the shares reserved but unissued to satisfy Smurfit-Stone bankruptcy claims. Stock Repurchase Plan Our board of directors has approved a stock repurchase plan that allows for the repurchase of shares of our Common Stock over an indefinite period of time at the discretion of our management. Our stock repurchase plan was last amended in September 2014 following the August 27, 2014 two-for-one stock split of our Common Stock in the form of a 100% stock dividend to shareholders of record as of August 12, 2014 (the “Stock Split”). The stock repurchase plan allows for the repurchase of up to a total of 16.9 million shares of Common Stock. Pursuant to our repurchase plan, in the six months ended March 31, 2015, we repurchased approximately 0.2 million shares for an aggregate cost of $8.7 million. As of March 31, 2015, we had approximately 8.5 million shares of Common Stock available for repurchase under the plan. Accumulated Other Comprehensive Loss The tables below summarize the changes in accumulated other comprehensive loss, net of tax, by component for the six months ended March 31, 2015 and March 31, 2014 (in millions):   Deferred Loss on Cash Flow Hedges   Defined Benefit Pension and Postretirement Plans   Foreign Currency Items   Total (1) Balance at September 30, 2014 $ (0.2 )   $ (498.2 )   $ 3.1   $ (495.3 ) Other comprehensive loss before reclassifications —   (16.7 )   (46.8 )   (63.5 ) Amounts reclassified from accumulated other comprehensive loss —   17.6   —   17.6 Net current period other comprehensive income (loss) —   0.9   (46.8 )   (45.9 ) Balance at March 31, 2015 $ (0.2 )   $ (497.3 )   $ (43.7 )   $ (541.2 ) (1)     All amounts are net of tax and noncontrolling interest.   Deferred Loss on Cash Flow Hedges   Defined Benefit Pension and Postretirement Plans   Foreign Currency Items   Total (1) Balance at September 30, 2013 $ (0.2 )   $ (332.9 )   $ 32.5   $ (300.6 ) Other comprehensive loss before reclassifications —   —   (21.2 )   (21.2 ) Amounts reclassified from accumulated other comprehensive loss —   5.0   (0.4 )   4.6 Net current period other comprehensive income (loss) —   5.0   (21.6 )   (16.6 ) Balance at March 31, 2014 $ (0.2 )   $ (327.9 )   $ 10.9   $ (317.2 ) (1)     All amounts are net of tax and noncontrolling interest. The net of tax components were determined using effective tax rates averaging approximately 38% to 39% for each of the six months ended March 31, 2015 and March 31, 2014. Foreign currency translation gains and losses recorded in accumulated other comprehensive loss for the six months ended March 31, 2015 and March 31, 2014 were primarily due to the change in the Canadian/U.S. dollar exchange rates. For the six months ended March 31, 2015, we recorded defined benefit net actuarial losses and prior service costs, net of tax, in other comprehensive income of $2.8 million and $13.9 million, respectively, primarily due to the partial settlement, plan amendments and curtailment of certain defined benefit plans. The deferred income tax expense associated with the net actuarial losses and prior service costs was $1.7 million and $8.8 million, respectively. The amounts reclassified out of accumulated other comprehensive loss into earnings for these events are summarized in the reclassifications tables below. For the three and six months ended March 31, 2014, there were no defined benefit plan net actuarial gains, losses or prior service costs arising during the period. The following tables summarize the reclassifications out of accumulated other comprehensive loss by component (in millions):   Three Months Ended   Three Months Ended   March 31, 2015   March 31, 2014   Pretax   Tax   Net of Tax   Pretax   Tax   Net of Tax Amortization of defined benefit pension and postretirement items (1)                             Actuarial losses (2) $ (8.0 )   $ 3.1   $ (4.9 )   $ (4.2 )   $ 1.6   $ (2.6 )       Prior service (costs) credits (2) (0.4 )   0.1   (0.3 )   0.1   —   0.1 Subtotal defined benefit plans (8.4 )   3.2   (5.2 )   (4.1 )   1.6   (2.5 )                         Foreign currency translation adjustments                             Sale of foreign subsidiary (3) —   —   —   0.4   —   0.4 Total reclassifications for the period $ (8.4 )   $ 3.2   $ (5.2 )   $ (3.7 )   $ 1.6   $ (2.1 ) (1)   Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded. (2)  These accumulated other comprehensive income components are included in the computation of net periodic pension cost (See “Note 11. Retirement Plans” for additional details). (3)  Amount reflected in “Restructuring and other costs, net” in the condensed consolidated statements of income.   Six Months Ended   Six Months Ended   March 31, 2015   March 31, 2014   Pretax   Tax   Net of Tax   Pretax   Tax   Net of Tax Amortization of defined benefit pension and postretirement items (1)                             Actuarial losses (2) $ (36.3 )   $ 13.8   $ (22.5 )   $ (8.2 )   $ 3.1   $ (5.1 )       Prior service credits (2) 8.0   (3.1 )   4.9   0.1   —   0.1 Subtotal defined benefit plans (28.3 )   10.7   (17.6 )   (8.1 )   3.1   (5.0 )                         Foreign currency translation adjustments                             Sale of foreign subsidiary (3) —   —   —   0.4   —   0.4 Total reclassifications for the period $ (28.3 )   $ 10.7   $ (17.6 )   $ (7.7 )   $ 3.1   $ (4.6 ) (1)   Amounts in parentheses indicate charges to earnings. Amounts pertaining to noncontrolling interests are excluded. (2)  These accumulated other comprehensive income components are included in the computation of net periodic pension cost (See “Note 11. Retirement Plans” for additional details). (3)  Amount reflected in “Restructuring and other costs, net” in the condensed consolidated statements of income.