Related Party Transactions

12 Months Ended

Dec. 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 years ended December 31, 2024 and 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.

On-going Related Party Transactions

For the years ended December 31, 2024, 2023 and 2022, revenues from products sold to PEI Group were $77 million, $83 million and $101 million, respectively. For the years ended December 31, 2024, 2023 and 2022, products purchased from PEI Group were $332 million, $381 million and $399 million, respectively. For the years ended December 31, 2024, 2023 and 2022, PEI Group charged us freight and warehousing costs of $28 million, $37 million and $54 million, respectively, which were included in cost of sales. The resulting related party receivables and payables are settled regularly with PEI Group in the normal course of business.

Furthermore, $143 million of dividends were paid to PFL during the years ended December 31, 2024, 2023 and 2022, respectively.