Revenue and Accounts Receivable

6 Months Ended

Mar. 28, 2020

Revenue and Accounts Receivable [Abstract]

Revenue

3.  Revenue and Accounts Receivable

Our revenues are primarily derived from the sale of plastic packaging products to customers. We consider the promise to transfer products to be our sole performance obligation.  If the consideration agreed to in a contract includes a variable amount, we estimate the amount of consideration we expect to be entitled to in exchange for transferring the promised goods to the customer using the most likely amount method. Our main source of variable consideration are customer rebates.  The accrual for customer rebates was $121 million and $114 million at March 28, 2020 and September 28, 2019, respectively, and is included in Other current liabilities on the Consolidated Balance Sheets. The Company disaggregates revenue based on reportable business segment, geography, and significant product line.  Refer to Note 10. Segment and Geographic Data for further information.

Accounts Receivable

The Company has entered into various qualifying factoring agreements to sell certain receivables to third-party financial institutions. The transfer of receivables is accounted for as a sale, without recourse. Net sales available under qualifying U.S. based programs were $236 million and $203 million for the quarterly period ended March 28, 2020 and March 30, 2019, respectively. Net sales available under qualifying U.S. based programs were $458 million and $415 million for the two quarterly periods ended March 28, 2020 and March 30, 2019, respectively. There were no amounts outstanding from financial institutions related to these programs. The fees associated with the transfer of receivables for all programs were not material for any of the periods presented.