Related Party Transactions

3 Months Ended

Mar. 31, 2024

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 year ended December 31, 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 each of the three months ended March 31, 2024 and March 31, 2023, revenues from products sold to PEI Group were $22 million. For the three months ended March 31, 2024, products purchased from PEI Group were $80 million, compared to $106 million in the comparable prior year period. For the three months ended March 31, 2024, PEI Group charged us freight and warehousing costs of $8 million, compared to $9 million in the comparable prior year period, 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 March 31, 2024 and March 31, 2023, were paid to PFL.