Related Party Transactions

6 Months Ended

Jun. 30, 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.

On April 1, 2025, PFL completed the sale of PEI Group, which was a related party through March 31, 2025, to an unrelated party. Accordingly, transactions and balances with PEI Group from April 1, 2025 are no longer classified as related party items. Related party receivables and payables outstanding as of March 31, 2025, have been reclassified to accounts receivable, net and accounts payable, respectively. The related party cash flow amounts presented reflect only activity through March 31, 2025. This change does not affect the presentation of historical related party disclosures.

For each of the three and six months ended June 30, 2025, revenues from products sold to PEI Group as a related party were zero and $17 million, respectively, compared to $16 million and $38 million for the three and six months ended June 30, 2024, respectively. For the three and six months ended June 30, 2025, products purchased from PEI Group as a related party were zero and $51 million, respectively, compared to $83 million and $163 million for the three and six months ended June 30, 2024, respectively. For the three and six months ended June 30, 2025, PEI Group as a related party charged us freight and warehousing costs of zero and $4 million, respectively, compared to $7 million and $15 million for the three and six months ended June 30, 2024, respectively, which were included in cost of sales. The resulting related party receivables and payables were settled regularly in the normal course of business.

Furthermore, $36 million of the dividends paid during each of the three months ended June 30, 2025 and June 30, 2024, and $72 million of the dividends paid during each of the six months ended June 30, 2025 and June 30, 2024, were paid to PFL.