Related Party Transactions

9 Months Ended

Sep. 30, 2023

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Packaging Finance Limited (“PFL”) owns the majority of our outstanding common stock and owns the majority of the outstanding common stock of Pactiv Evergreen Inc. and its subsidiaries (“PEI Group”). We sell and purchase various goods and services with PEI Group under contractual arrangements that expire over a variety of periods through December 31, 2027. During the nine months ended September 30, 2023, we amended these contractual arrangements with PEI Group, which, among other things, extended the expiration date for certain arrangements. Transactions between us and PEI Group are described below.

For the three and nine months ended September 30, 2023, revenues from products sold to PEI Group were $21 million and $61 million, respectively, compared to $29 million and $77 million in the comparable prior year periods. For the three and nine months ended September 30, 2023, products purchased from PEI Group were $92 million and $291 million, respectively, compared to $101 million and $294 million in the comparable prior year periods. For the three and nine months ended September 30, 2023, PEI Group charged us freight and warehousing costs of $9 million and $28 million, respectively, compared to $12 million and $42 million in the comparable prior year periods, which were included in cost of sales. The resulting related party receivables and payables are settled regularly in the normal course of business.

Furthermore, $36 million of the dividends paid during each of the three months ended September 30, 2023 and September 30, 2022, and $107 million of the dividends paid during each of the nine months ended September 30, 2023 and September 30, 2022, were paid to PFL.