Related Party Transactions

3 Months Ended

Mar. 31, 2025

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Packaging Finance Limited (“PFL”) owns the majority of our outstanding common stock and, until April 1, 2025, owned 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, 2024, 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 months ended March 31, 2025, revenues from products sold to PEI Group were $17 million compared to $22 million for the three months ended March 31, 2024. For the three months ended March 31, 2025, products purchased from PEI Group were $51 million compared to $80 million for the three months ended March 31, 2024. For the three months ended March 31, 2025, PEI Group charged us freight and warehousing costs of $4 million compared to $8 million for the three months ended March 31, 2024, which were included in cost of sales. The resulting related party receivables and payables are settled regularly in the normal course of business.

On April 1, 2025, PFL completed the sale of PEI Group, a related party as of March 31, 2025, to an unrelated party. As a result, transactions and balances with PEI Group from April 1, 2025 will no longer be classified as related party items. This prospective change has no impact on the presentation of historical related party disclosures.

Furthermore, $36 million of the dividends paid during each of the three months ended March 31, 2025 and March 31, 2024 were paid to PFL.