QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Class A Common Stock | |||||
Class B Common Stock |
Item | Page | |||||||
1 | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
1A | ||||||||
2 | ||||||||
6 | ||||||||
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of products sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Acquisition and integration related costs | |||||||||||||||||||||||
Restructuring charges | |||||||||||||||||||||||
Non-cash asset impairment charges | |||||||||||||||||||||||
Loss (gain) on disposal of properties, plants and equipment, net | ( | ( | ( | ||||||||||||||||||||
Loss (gain) on disposal of businesses, net | ( | ( | |||||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Debt extinguishment charges | |||||||||||||||||||||||
Other expense, net | |||||||||||||||||||||||
Income before income tax expense and equity earnings of unconsolidated affiliates, net | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Equity earnings of unconsolidated affiliates, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to Greif, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Basic earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | $ | $ | $ | $ | |||||||||||||||||||
Class B common stock | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | $ | $ | $ | $ | |||||||||||||||||||
Class B common stock | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average number of Class A common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Weighted-average number of Class B common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Cash dividends declared per common share: | |||||||||||||||||||||||
Class A common stock | $ | $ | $ | $ | |||||||||||||||||||
Class B common stock | $ | $ | $ | $ |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation | ( | ( | |||||||||||||||||||||
Derivative financial instruments | ( | ||||||||||||||||||||||
Minimum pension liabilities | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | |||||||||||||||||||||||
Comprehensive income attributable to Greif, Inc. | $ | $ | $ | $ |
(in millions) | July 31, 2023 | October 31, 2022 | |||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, net of allowance | |||||||||||
Inventories: | |||||||||||
Raw materials | |||||||||||
Finished goods | |||||||||||
Assets held for sale | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Long-term assets | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net of amortization | |||||||||||
Deferred tax assets | |||||||||||
Pension asset | |||||||||||
Operating lease assets | |||||||||||
Finance lease assets | |||||||||||
Other long-term assets | |||||||||||
Properties, plants and equipment | |||||||||||
Timber properties, net of depletion | |||||||||||
Land | |||||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Capital projects in progress | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Total assets | $ | $ |
(in millions) | July 31, 2023 | October 31, 2022 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued payroll and employee benefits | |||||||||||
Restructuring reserves | |||||||||||
Current portion of long-term debt | |||||||||||
Short-term borrowings | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Current portion of finance lease liabilities | |||||||||||
Other current liabilities | |||||||||||
Long-term liabilities | |||||||||||
Long-term debt | |||||||||||
Operating lease liabilities | |||||||||||
Finance lease liabilities | |||||||||||
Deferred tax liabilities | |||||||||||
Pension liabilities | |||||||||||
Postretirement benefit obligations | |||||||||||
Contingent liabilities and environmental reserves | |||||||||||
Long-term income tax payable | |||||||||||
Other long-term liabilities | |||||||||||
Commitments and contingencies (Note 9) | |||||||||||
Redeemable noncontrolling interests | |||||||||||
Equity | |||||||||||
Common stock, without par value | |||||||||||
Treasury stock, at cost | ( | ( | |||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss, net of tax: | |||||||||||
Foreign currency translation | ( | ( | |||||||||
Derivative financial instruments | |||||||||||
Minimum pension liabilities | ( | ( | |||||||||
Total Greif, Inc. shareholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Nine Months Ended July 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, depletion and amortization | |||||||||||
Non-cash asset impairment charges | |||||||||||
Gain on disposals of properties, plants and equipment, net | ( | ( | |||||||||
Gain on disposals of businesses, net | ( | ( | |||||||||
Unrealized foreign exchange loss (gain) | ( | ||||||||||
Deferred income tax benefit | ( | ( | |||||||||
Debt extinguishment charges | |||||||||||
Non-cash lease expense | |||||||||||
Other, net | ( | ||||||||||
Increase (decrease) in cash from changes in certain assets and liabilities, net of impacts from acquisitions: | |||||||||||
Trade accounts receivable | ( | ||||||||||
Inventories | ( | ||||||||||
Accounts payable | ( | ||||||||||
Restructuring reserves | ( | ||||||||||
Operating leases | ( | ( | |||||||||
Pension and post-retirement benefit liabilities | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of business, net of cash acquired | ( | ||||||||||
Purchases of properties, plants and equipment | ( | ( | |||||||||
Purchases of and investments in timber properties | ( | ( | |||||||||
Payments for deferred purchase price of acquisitions | ( | ( | |||||||||
Proceeds from the sale of properties, plants, equipment and other assets | |||||||||||
Proceeds from the sale of businesses | |||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | |||||||||||
Payments on long-term debt | ( | ( | |||||||||
Payments on short-term borrowings, net | ( | ( | |||||||||
Proceeds from trade accounts receivable credit facility | |||||||||||
Payments on trade accounts receivable credit facility | ( | ( | |||||||||
Dividends paid to Greif, Inc. shareholders | ( | ( | |||||||||
Dividends paid to noncontrolling interests | ( | ( | |||||||||
Payments for debt extinguishment and issuance costs | ( | ||||||||||
Payments for share repurchases | ( | ( | |||||||||
Forward contract for accelerated share repurchases | ( | ||||||||||
Tax withholding payments for stock-based awards | ( | ||||||||||
Purchases of redeemable noncontrolling interest | ( | ( | |||||||||
Other, net | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effects of exchange rates on cash | ( | ( | |||||||||
Net increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Three Months Ended July 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except for shares which are in thousands) | Common Shares | Amount | Treasury Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
As of April 30, 2023 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum pension liability adjustment, net of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | . | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends earned on RSU shares | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Colleague stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term incentive shares issued | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of July 31, 2023 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended July 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except for shares which are in thousands) | Common Shares | Amount | Treasury Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31, 2022 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum pension liability adjustment, net of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | . | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest and other | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests and other | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends earned on RSU shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Colleague stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term incentive shares issued | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock, directors | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As of July 31, 2023 | $ | $ | ( | $ | $ | ( | $ | $ | $ |
Three Months Ended July 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except for shares which are in thousands) | Common Shares | Amount | Treasury Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
As of April 30, 2022 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum pension liability adjustment, net of $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests and other | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends earned on RSU shares | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of July 31, 2022 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended July 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except for shares which are in thousands) | Common Shares | Amount | Treasury Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31, 2021 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum pension liability adjustment, net of $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | . | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestment of noncontrolling interest | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest and other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests and other | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends earned on RSU shares | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term incentive shares issued | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock, executive | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock, directors | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As of July 31, 2022 | $ | $ | ( | $ | $ | ( | $ | $ | $ |
(in millions) | Amounts Recognized as of the Acquisition Date | Measurement Period Adjustments | Amount Recognized as of Acquisition Date (as Adjusted) | ||||||||
Fair value of consideration transferred | |||||||||||
Cash consideration | $ | $ | — | $ | |||||||
Noncontrolling interest | — | ||||||||||
Previously held interest | — | ||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||||||
Accounts receivable | $ | $ | — | $ | |||||||
Inventories | — | ||||||||||
Prepaid and other current assets | — | ||||||||||
Intangibles | |||||||||||
Operating lease assets | — | ||||||||||
Properties, plants and equipment | — | ||||||||||
Total assets acquired | |||||||||||
Accounts payable | ( | — | ( | ||||||||
Other current liabilities | ( | — | ( | ||||||||
Operating lease liabilities | ( | — | ( | ||||||||
Total liabilities assumed | ( | — | ( | ||||||||
Total identifiable net assets | $ | $ | $ | ||||||||
Goodwill | $ | $ | ( | $ |
(in millions) | Final Purchase Price Allocation | Weighted Average Estimated Useful Life | ||||||
Customer relationships | $ | |||||||
Favorable leases | ||||||||
Trademarks | ||||||||
Total intangible assets | $ |
(in millions) | Amounts Recognized as of the Acquisition Date | Measurement Period Adjustments | Amount Recognized as of Acquisition Date (as Adjusted) | ||||||||
Fair value of consideration transferred | |||||||||||
Cash consideration | $ | $ | $ | ||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||||||
Accounts receivable | $ | $ | ( | $ | |||||||
Inventories | ( | ||||||||||
Prepaid and other current assets | — | ||||||||||
Intangibles | — | ||||||||||
Finance lease assets | |||||||||||
Properties, plants and equipment | — | ||||||||||
Total assets acquired | ( | ||||||||||
Accounts payable | ( | — | ( | ||||||||
Accrued payroll and employee benefits | ( | — | ( | ||||||||
Other current liabilities | ( | ( | |||||||||
Finance lease liabilities | ( | ( | ( | ||||||||
Total liabilities assumed | ( | ( | |||||||||
Total identifiable net assets | $ | ( | |||||||||
Goodwill | $ | $ | $ |
(in millions) | Final Purchase Price Allocation | Weighted Average Estimated Useful Life | ||||||
Customer relationships | $ | |||||||
Trademarks | ||||||||
Total intangible assets | $ |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Pro forma net sales | $ | $ | $ | $ | |||||||||||||||||||
Pro forma net income attributable to Greif, Inc. | |||||||||||||||||||||||
Basic earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | $ | $ | $ | $ | |||||||||||||||||||
Class B common stock | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | $ | $ | $ | $ | |||||||||||||||||||
Class B common stock | $ | $ | $ | $ |
(in millions) | Employee Separation Costs | Other Costs | Total | ||||||||||||||
Balance at October 31, 2022 | $ | $ | $ | ||||||||||||||
Costs incurred and charged to expense | |||||||||||||||||
Costs paid or otherwise settled | ( | ( | ( | ||||||||||||||
Balance at July 31, 2023 | $ | $ | $ |
(in millions) | Total Amounts Expected to be Incurred | Amounts Incurred During the Nine Months Ended July 31, 2023 | Amounts Remaining to be Incurred | ||||||||||||||
Global Industrial Packaging | |||||||||||||||||
Employee separation costs | $ | $ | $ | ||||||||||||||
Other restructuring costs | |||||||||||||||||
Paper Packaging & Services | |||||||||||||||||
Employee separation costs | |||||||||||||||||
Other restructuring costs | |||||||||||||||||
$ | $ | $ |
(in millions) | July 31, 2023 | October 31, 2022 | |||||||||
2022 Credit Agreement - Term Loans | $ | $ | |||||||||
2023 Credit Agreement - Term Loans | |||||||||||
Accounts receivable credit facilities | |||||||||||
2022 Credit Agreement - Revolving Credit Facility | |||||||||||
Other debt | |||||||||||
Less: current portion | |||||||||||
Less: deferred financing costs | |||||||||||
Long-term debt, net | $ | $ |
July 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||
Foreign exchange hedges | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Insurance annuity | |||||||||||||||||||||||||||||||||||||||||||||||
Cross currency swap | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
October 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||
Foreign exchange hedges | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Insurance annuity | |||||||||||||||||||||||||||||||||||||||||||||||
Cross currency swap |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||
(in millions) | Impairment Amount | Valuation Technique | Unobservable Input | Range of Input Values | |||||||||||||||||||
July 31, 2023 | |||||||||||||||||||||||
Long Lived Assets | $ | Discounted Cash Flows; Indicative Bids | Discounted Cash Flows; Indicative Bids | N/A | |||||||||||||||||||
Total | $ | ||||||||||||||||||||||
July 31, 2022 | |||||||||||||||||||||||
Net Assets Held for Sale | $ | Indicative Bids | Indicative Bids | N/A | |||||||||||||||||||
Long Lived Assets | $ | Discounted Cash Flows; Indicative Bids | Discounted Cash Flows; Indicative Bids | N/A | |||||||||||||||||||
Total | $ |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of prior service benefit | ( | ( | ( | ( | |||||||||||||||||||
Recognized net actuarial (gain) loss | ( | ( | |||||||||||||||||||||
Net periodic pension cost | $ | $ | $ | $ |
Basic Class A EPS | = | 40% * Average Class A Shares Outstanding | * | Undistributed Net Income | + | Class A Dividends Per Share | ||||||||||||||
40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding | Average Class A Shares Outstanding | |||||||||||||||||||
Diluted Class A EPS | = | 40% * Average Class A Shares Outstanding | * | Undistributed Net Income | + | Class A Dividends Per Share | ||||||||||||||
40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding | Average Diluted Class A Shares Outstanding | |||||||||||||||||||
Basic Class B EPS | = | 60% * Average Class B Shares Outstanding | * | Undistributed Net Income | + | Class B Dividends Per Share | ||||||||||||||
40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding | Average Class B Shares Outstanding |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Numerator for basic and diluted EPS | |||||||||||||||||||||||
Net income attributable to Greif, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Cash dividends | ( | ( | ( | ( | |||||||||||||||||||
Undistributed earnings attributable to Greif, Inc. | $ | $ | $ | $ |
Authorized Shares | Issued Shares | Outstanding Shares | Treasury Shares | ||||||||||||||||||||
July 31, 2023 | |||||||||||||||||||||||
Class A Common Stock | |||||||||||||||||||||||
Class B Common Stock | |||||||||||||||||||||||
October 31, 2022 | |||||||||||||||||||||||
Class A Common Stock | |||||||||||||||||||||||
Class B Common Stock |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Class A Common Stock: | |||||||||||||||||||||||
Basic shares | |||||||||||||||||||||||
Assumed conversion of restricted shares | |||||||||||||||||||||||
Diluted shares | |||||||||||||||||||||||
Class B Common Stock: | |||||||||||||||||||||||
Basic and diluted shares |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Finance lease cost - amortization | |||||||||||||||||||||||
Finance lease cost - interest | |||||||||||||||||||||||
Other lease cost* | |||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ | |||||||||||||||||||
*includes variable and short-term lease costs |
(in millions) | Operating Leases | Finance Leases | Total expected payments | ||||||||
2023 | $ | $ | $ | ||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
Thereafter | |||||||||||
Total lease payments | $ | $ | $ | ||||||||
Less: interest | ( | ( | ( | ||||||||
Lease liabilities | $ | $ | $ |
July 31, 2023 | July 31, 2022 | ||||||||||
Weighted-average remaining lease term (years): | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted-average discount rate: | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||||||||
Operating cash flows used for operating liabilities | $ | $ | $ | $ | |||||||||||||||||||
Financing cash flows used for finance leases | |||||||||||||||||||||||
Leased assets obtained in exchange for new lease liabilities: | |||||||||||||||||||||||
Leased assets obtained in exchange for new operating lease liabilities | |||||||||||||||||||||||
Leased assets obtained in exchange for new finance lease liabilities |
(in millions) | Foreign Currency Translation | Derivative Financial Instruments | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Balance as of October 31, 2022 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balance as of July 31, 2023 | $ | ( | $ | $ | ( | $ | ( |
(in millions) | Foreign Currency Translation | Derivative Financial Instruments | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Balance as of October 31, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Foreign currency translation released from business divestment | |||||||||||||||||||||||
Balance as of July 31, 2022 | $ | ( | $ | $ | ( | $ | ( |
Three Months Ended July 31, 2023 | |||||||||||||||||||||||
(in millions) | United States | Europe, Middle East and Africa | Asia Pacific and Other Americas | Total | |||||||||||||||||||
Global Industrial Packaging | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | |||||||||||||||||||
Nine Months Ended July 31, 2023 | |||||||||||||||||||||||
(in millions) | United States | Europe, Middle East and Africa | Asia Pacific and Other Americas | Total | |||||||||||||||||||
Global Industrial Packaging | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Three Months Ended July 31, 2022 | |||||||||||||||||||||||
(in millions) | United States | Europe, Middle East and Africa | Asia Pacific and Other Americas | Total | |||||||||||||||||||
Global Industrial Packaging | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | |||||||||||||||||||
Nine Months Ended July 31, 2022 | |||||||||||||||||||||||
(in millions) | United States | Europe, Middle East and Africa | Asia Pacific and Other Americas | Total | |||||||||||||||||||
Global Industrial Packaging | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Operating profit: | |||||||||||||||||||||||
Global Industrial Packaging | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total operating profit | $ | $ | $ | $ | |||||||||||||||||||
Depreciation, depletion and amortization expense: | |||||||||||||||||||||||
Global Industrial Packaging | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total depreciation, depletion and amortization expense | $ | $ | $ | $ |
(in millions) | July 31, 2023 | October 31, 2022 | |||||||||
Assets: | |||||||||||
Global Industrial Packaging | $ | $ | |||||||||
Paper Packaging & Services | |||||||||||
Land Management | |||||||||||
Total segments | |||||||||||
Corporate and other | |||||||||||
Total assets | $ | $ | |||||||||
Long lived assets, net*: | |||||||||||
United States | $ | $ | |||||||||
Europe, Middle East and Africa | |||||||||||
Asia Pacific and other Americas | |||||||||||
Total long-lived assets, net | $ | $ | |||||||||
*includes property, plants and equipment, net, operating lease assets and finance lease assets |
Three Months Ended July 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Net sales: | |||||||||||
Global Industrial Packaging | $ | 761.8 | $ | 906.7 | |||||||
Paper Packaging & Services | 563.9 | 710.2 | |||||||||
Land Management | 4.6 | 5.2 | |||||||||
Total net sales | $ | 1,330.3 | $ | 1,622.1 | |||||||
Operating profit: | |||||||||||
Global Industrial Packaging | $ | 102.0 | $ | 107.2 | |||||||
Paper Packaging & Services | 52.1 | 96.7 | |||||||||
Land Management | 1.5 | 1.8 | |||||||||
Total operating profit | $ | 155.6 | $ | 205.7 | |||||||
EBITDA: | |||||||||||
Global Industrial Packaging | $ | 123.8 | $ | 118.3 | |||||||
Paper Packaging & Services | 85.1 | 130.6 | |||||||||
Land Management | 1.9 | 2.5 | |||||||||
Total EBITDA | $ | 210.8 | $ | 251.4 | |||||||
Adjusted EBITDA: | |||||||||||
Global Industrial Packaging | $ | 126.5 | $ | 117.1 | |||||||
Paper Packaging & Services | 98.1 | 131.8 | |||||||||
Land Management | 1.9 | 2.1 | |||||||||
Total Adjusted EBITDA | $ | 226.5 | $ | 251.0 |
Three Months Ended July 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Net income | $ | 96.7 | $ | 146.1 | |||||||
Plus: interest expense, net | 25.3 | 14.0 | |||||||||
Plus: income tax expense | 31.1 | 39.9 | |||||||||
Plus: depreciation, depletion and amortization expense | 57.7 | 51.4 | |||||||||
EBITDA | $ | 210.8 | $ | 251.4 | |||||||
Net income | $ | 96.7 | $ | 146.1 | |||||||
Plus: interest expense, net | 25.3 | 14.0 | |||||||||
Plus: income tax expense | 31.1 | 39.9 | |||||||||
Plus: other expense, net | 3.4 | 7.3 | |||||||||
Plus: equity earnings of unconsolidated affiliates, net of tax | (0.9) | (1.6) | |||||||||
Operating profit | 155.6 | 205.7 | |||||||||
Less: other expense, net | 3.4 | 7.3 | |||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (0.9) | (1.6) | |||||||||
Plus: depreciation, depletion and amortization expense | 57.7 | 51.4 | |||||||||
EBITDA | 210.8 | 251.4 | |||||||||
Plus: restructuring charges | 8.7 | 3.1 | |||||||||
Plus: acquisition and integration related costs | 3.4 | 2.2 | |||||||||
Plus: non-cash asset impairment charges | 1.6 | 0.7 | |||||||||
Plus: loss (gain) on disposal of properties, plants, equipment, and businesses, net | 2.0 | (6.4) | |||||||||
Adjusted EBITDA | $ | 226.5 | $ | 251.0 |
Three Months Ended July 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Global Industrial Packaging | |||||||||||
Operating profit | $ | 102.0 | $ | 107.2 | |||||||
Less: other expense, net | 4.0 | 7.6 | |||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (0.9) | (1.6) | |||||||||
Plus: depreciation and amortization expense | 24.9 | 17.1 | |||||||||
EBITDA | 123.8 | 118.3 | |||||||||
Plus: restructuring charges | 1.3 | 1.5 | |||||||||
Plus: acquisition and integration related costs | 1.3 | 0.3 | |||||||||
Plus: loss (gain) on disposal of properties, plants, equipment, and businesses, net | 0.1 | (3.0) | |||||||||
Adjusted EBITDA | $ | 126.5 | $ | 117.1 | |||||||
Paper Packaging & Services | |||||||||||
Operating profit | $ | 52.1 | $ | 96.7 | |||||||
Less: other income, net | (0.6) | (0.3) | |||||||||
Plus: depreciation and amortization expense | 32.4 | 33.6 | |||||||||
EBITDA | 85.1 | 130.6 | |||||||||
Plus: restructuring charges | 7.4 | 1.6 | |||||||||
Plus: acquisition and integration related costs | 2.1 | 1.9 | |||||||||
Plus: non-cash asset impairment charges | 1.6 | 0.7 | |||||||||
Plus: loss (gain) on disposal of properties, plants, equipment, and businesses, net | 1.9 | (3.0) | |||||||||
Adjusted EBITDA | $ | 98.1 | $ | 131.8 | |||||||
Land Management | |||||||||||
Operating profit | $ | 1.5 | $ | 1.8 | |||||||
Plus: depreciation and depletion expense | 0.4 | 0.7 | |||||||||
EBITDA | 1.9 | 2.5 | |||||||||
Plus: gain on disposal of properties, plants, equipment, and businesses, net | — | (0.4) | |||||||||
Adjusted EBITDA | $ | 1.9 | $ | 2.1 |
Nine Months Ended July 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Net sales: | |||||||||||
Global Industrial Packaging | $ | 2,215.8 | $ | 2,827.5 | |||||||
Paper Packaging & Services | 1,678.9 | 2,009.5 | |||||||||
Land Management | 15.5 | 16.7 | |||||||||
Total net sales | $ | 3,910.2 | $ | 4,853.7 | |||||||
Operating profit: | |||||||||||
Global Industrial Packaging | $ | 259.2 | $ | 246.2 | |||||||
Paper Packaging & Services | 228.8 | 215.1 | |||||||||
Land Management | 5.1 | 6.5 | |||||||||
Total operating profit | $ | 493.1 | $ | 467.8 | |||||||
EBITDA: | |||||||||||
Global Industrial Packaging | $ | 319.5 | $ | 301.1 | |||||||
Paper Packaging & Services | 328.4 | 322.1 | |||||||||
Land Management | 6.7 | 8.7 | |||||||||
Total EBITDA | $ | 654.6 | $ | 631.9 | |||||||
Adjusted EBITDA: | |||||||||||
Global Industrial Packaging | $ | 319.5 | $ | 362.2 | |||||||
Paper Packaging & Services | 293.7 | 329.7 | |||||||||
Land Management | 6.4 | 6.9 | |||||||||
Total Adjusted EBITDA | $ | 619.6 | $ | 698.8 |
Nine Months Ended July 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Net income | $ | 305.8 | $ | 291.4 | |||||||
Plus: interest expense, net | 71.5 | 44.3 | |||||||||
Plus: debt extinguishment charges | — | 25.4 | |||||||||
Plus: income tax expense | 107.9 | 105.4 | |||||||||
Plus: depreciation, depletion and amortization expense | 169.4 | 165.4 | |||||||||
EBITDA | $ | 654.6 | $ | 631.9 | |||||||
Net income | $ | 305.8 | $ | 291.4 | |||||||
Plus: interest expense, net | 71.5 | 44.3 | |||||||||
Plus: debt extinguishment charges | — | 25.4 | |||||||||
Plus: income tax expense | 107.9 | 105.4 | |||||||||
Plus: other expense, net | 9.6 | 4.9 | |||||||||
Plus: equity earnings of unconsolidated affiliates, net of tax | (1.7) | (3.6) | |||||||||
Operating profit | 493.1 | 467.8 | |||||||||
Less: other expense, net | 9.6 | 4.9 | |||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (1.7) | (3.6) | |||||||||
Plus: depreciation, depletion and amortization expense | 169.4 | 165.4 | |||||||||
EBITDA | $ | 654.6 | $ | 631.9 | |||||||
Plus: restructuring charges | 13.5 | 10.3 | |||||||||
Plus: acquisition and integration related costs | 15.5 | 5.8 | |||||||||
Plus: non-cash asset impairment charges | 3.4 | 63.1 | |||||||||
Plus: gain on disposal of properties, plants, equipment, and businesses, net | (67.4) | (12.3) | |||||||||
Adjusted EBITDA | $ | 619.6 | $ | 698.8 |
Nine Months Ended July 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Global Industrial Packaging | |||||||||||
Operating profit | $ | 259.2 | $ | 246.2 | |||||||
Less: other expense, net | 10.9 | 5.2 | |||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (1.7) | (3.6) | |||||||||
Plus: depreciation and amortization expense | 69.5 | 56.5 | |||||||||
EBITDA | $ | 319.5 | $ | 301.1 | |||||||
Plus: restructuring charges | 4.2 | 6.3 | |||||||||
Plus: acquisition and integration related costs | 8.8 | 0.3 | |||||||||
Plus: non-cash impairment charges | 1.5 | 62.4 | |||||||||
Plus: gain on disposal of properties, plants and equipment, and businesses, net | (14.5) | (7.9) | |||||||||
Adjusted EBITDA | $ | 319.5 | $ | 362.2 | |||||||
Paper Packaging & Services | |||||||||||
Operating profit | $ | 228.8 | $ | 215.1 | |||||||
Less: other income, net | (1.3) | (0.3) | |||||||||
Plus: depreciation and amortization expense | 98.3 | 106.7 | |||||||||
EBITDA | $ | 328.4 | $ | 322.1 | |||||||
Plus: restructuring charges | 9.3 | 4.0 | |||||||||
Plus: acquisition and integration related costs | 6.7 | 5.5 | |||||||||
Plus: non-cash impairment charges | 1.9 | 0.7 | |||||||||
Plus: gain on disposal of properties, plants and equipment, and businesses, net | (52.6) | (2.6) | |||||||||
Adjusted EBITDA | $ | 293.7 | $ | 329.7 | |||||||
Land Management | |||||||||||
Operating profit | $ | 5.1 | $ | 6.5 | |||||||
Plus: depreciation and depletion expense | 1.6 | 2.2 | |||||||||
EBITDA | $ | 6.7 | $ | 8.7 | |||||||
Plus: gain on disposal of properties, plants and equipment, and businesses, net | (0.3) | (1.8) | |||||||||
Adjusted EBITDA | $ | 6.4 | $ | 6.9 |
Nine Months Ended July 31, (in millions) | 2023 | 2022 | |||||||||
Net cash provided by operating activities | $ | 446.0 | $ | 370.9 | |||||||
Net cash (used in) provided by investing activities | (496.7) | 34.7 | |||||||||
Net cash provided by (used in) financing activities | 62.0 | (343.8) | |||||||||
Effects of exchange rates on cash | (0.7) | (58.9) | |||||||||
Net increase in cash and cash equivalents | 10.6 | 2.9 | |||||||||
Cash and cash equivalents at beginning of year | 147.1 | 124.6 | |||||||||
Cash and cash equivalents at end of period | $ | 157.7 | $ | 127.5 |
(in millions) | July 31, 2023 | October 31, 2022 | |||||||||
2022 Credit Agreement - Term Loans | $ | 1,514.1 | $ | 1,565.0 | |||||||
2023 Credit Agreement - Term Loans | 300.0 | — | |||||||||
Accounts receivable credit facilities | 292.7 | 311.4 | |||||||||
2022 Credit Agreement - Revolving Credit Facility | 72.1 | 41.9 | |||||||||
Other debt | 0.2 | 0.4 | |||||||||
2,179.1 | 1,918.7 | ||||||||||
Less: current portion | 88.3 | 71.1 | |||||||||
Less: deferred financing costs | 9.4 | 8.3 | |||||||||
Long-term debt, net | $ | 2,081.4 | $ | 1,839.3 |
Period | Total Number of Shares of Class A Common Stock Purchased | Average Price Paid per Share of Class A Common Stock* | Total Number of Shares of Class B Common Stock Purchased | Average Price Paid per Share of Class B Common Stock* | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value That May Yet be Purchased Under the Program | |||||||||||||||||||||||||||||
May 1, 2023 to May 31, 2023 | — | $ | — | 56,794 | $ | 75.69 | 56,794 | $ | — | ||||||||||||||||||||||||||
June 1, 2023 to June 30, 2023 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
July 1, 2023 to July 31, 2023 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total | — | — | 56,794 | — | 56,794 | $ | — |
Exhibit No. | Description of Exhibit | |||||||
Certification of Chief Executive Officer Pursuant to Rule 13a — 14(a) of the Securities Exchange Act of 1934. | ||||||||
Certification of Chief Financial Officer Pursuant to Rule 13a — 14(a) of the Securities Exchange Act of 1934. | ||||||||
Certification of Chief Executive Officer required by Rule 13a —14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code. | ||||||||
Certification of Chief Financial Officer required by Rule 13a — 14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code. | ||||||||
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended July 31, 2023, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Income and Comprehensive Income (Loss), (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Cash Flow and (iv) Notes to Condensed Consolidated Financial Statements. |
GREIF, INC. | ||||||||
(Registrant) | ||||||||
Date: August 31, 2023 | /s/ LAWRENCE A. HILSHEIMER | |||||||
Lawrence A. Hilsheimer | ||||||||
Executive Vice President and Chief Financial Officer |
Date: August 31, 2023 | /s/ OLE G. ROSGAARD | ||||||||||
Ole G. Rosgaard, President and Chief Executive Officer (Principal Executive Officer) |
Date: August 31, 2023 | /s/ LAWRENCE A. HILSHEIMER | ||||||||||
Lawrence A. Hilsheimer, Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Date: August 31, 2023 | /s/ OLE G. ROSGAARD | ||||||||||
Ole G. Rosgaard, | |||||||||||
President and Chief Executive Officer |
Date: August 31, 2023 | /s/ LAWRENCE A. HILSHEIMER | ||||||||||
Lawrence A. Hilsheimer, | |||||||||||
Executive Vice President and Chief Financial Officer |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 96.7 | $ 146.1 | $ 305.8 | $ 291.4 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (4.2) | (30.8) | 44.8 | 1.8 |
Derivative financial instruments | 17.3 | 1.2 | (13.5) | 37.1 |
Minimum pension liabilities | (1.6) | 2.7 | (5.4) | 9.2 |
Other comprehensive income (loss), net of tax | 11.5 | (26.9) | 25.9 | 48.1 |
Comprehensive income | 108.2 | 119.2 | 331.7 | 339.5 |
Comprehensive income attributable to noncontrolling interests | 6.5 | 3.1 | 14.7 | 7.4 |
Comprehensive income attributable to Greif, Inc. | $ 101.7 | $ 116.1 | $ 317.0 | $ 332.1 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
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Derivative, income tax benefit | $ 5.7 | $ 0.4 | $ (4.6) | $ 12.4 |
Minimum pension liability adjustment, income tax (expense) benefit | $ (0.2) | 0.8 | $ (0.7) | 2.3 |
Foreign currency translation released from business divestment | $ 113.1 | |||
Noncontrolling Interest, Decrease (Increase) From Distributions To Noncontrolling Interest Holders, Net | $ (0.6) | |||
Class A Common Stock | ||||
Dividend paid (in usd per share) | $ 0.50 | $ 0.46 | $ 1.50 | $ 1.38 |
Class B Common Stock | ||||
Dividend paid (in usd per share) | $ 0.75 | $ 0.69 | $ 2.24 | $ 2.06 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
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Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates. The fiscal year of Greif, Inc. and its subsidiaries (the “Company”) begins on November 1 and ends on October 31 of the following year. Any references to years or to any quarter of those years, relates to the fiscal year or quarter, as the case may be, ended in that year, unless otherwise stated. The information filed herein reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated balance sheet as of July 31, 2023 and the condensed consolidated balance sheet as of October 31, 2022, the interim condensed consolidated statements of income, comprehensive income and changes in shareholders’ equity for the three and nine months ended July 31, 2023 and 2022 and the interim condensed consolidated statements of cash flows for the three and nine months ended July 31, 2023 and 2022 of the Company. The interim condensed consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and consolidated subsidiaries and investments in limited liability companies, partnerships and joint ventures in which it has controlling influence or is the primary beneficiary. Non-majority owned entities include investments in limited liability companies, partnerships and joint ventures in which the Company does not have controlling interest and are accounted for using either the equity or cost method, as appropriate. The unaudited interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2022 (the “2022 Form 10-K”). Newly Adopted Accounting Standards There have been no new accounting standards adopted since the filing of the 2022 Form 10-K that have significance, or potential significance, to the interim condensed consolidated financial statements. Recently Issued Accounting Standards There have been no new accounting pronouncements issued since the filing of the 2022 Form 10-K that have significance, or potential significance, to the interim condensed consolidated financial statements.
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ACQUISITIONS AND DIVESTITURES |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Acquisitions Centurion Acquisition The Company completed its acquisition of controlling influence over Centurion Container LLC (“Centurion”) on March 31, 2023 (the “Centurion Acquisition”), by increasing the Company’s ownership interest in Centurion from approximately 10% to 80%. Centurion is a leader in the North American intermediate bulk container (“IBC”) reconditioning industry and is involved in IBC rebottling, reconditioning, and distribution. The total purchase price for this acquisition, net of cash acquired, was $144.5 million. The fair value of the remaining noncontrolling interest of 20% after the acquisition was $40.9 million. Prior to the acquisition, the Company accounted for its approximately 10% ownership interest under the equity method of accounting. The acquisition of a controlling financial interest was accounted for as a step acquisition in accordance with Accounting Standard Codification (“ASC”) 805. As a result, fair value of our previously held interest in Centurion of $16.8 million was valued using a discounted cash flow model, resulting in a gain of $9.8 million. The gain was reflected in the condensed consolidated statements of income within the gain on disposal of businesses, net line. The following table summarizes the consideration transferred to acquire Centurion and the preliminary valuation of identifiable assets acquired and liabilities assumed at the acquisition date:
The Company recognized goodwill related to this acquisition of $103.2 million. The goodwill recognized in this acquisition was attributable to the acquired assembled workforce, expanded market presence, and enhanced business network, none of which qualify for recognition as a separate intangible asset. Centurion is reported within the Global Industrial Packaging segment to which the goodwill was assigned. The majority of the goodwill is expected to be deductible for tax purposes. The fair value for acquired customer relationship intangibles was determined as of the acquisition date based on estimates and judgments regarding expectations for the future after-tax cash flows arising from the revenue from customer relationships that existed on the acquisition date over their estimated lives, including the probability of expected future contract renewals and revenue, less a contributory assets charge, all of which is discounted to present value. The fair values of the trademark intangible assets were determined utilizing the relief from royalty method, which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the trademarks and discounted to present value using an appropriate discount rate. Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the preliminary purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired as of the acquisition date:
The Company has not yet finalized the determination of the fair value of assets acquired and liabilities assumed, including income taxes and contingencies. The Company expects to finalize these amounts within one year of the acquisition date. The estimate of fair value and purchase price allocation were based on information available at the time of closing the acquisition, and the Company continues to evaluate the underlying inputs and assumptions that are being used in fair value estimates. Accordingly, these preliminary estimates are subject to adjustments during the measurement period, not to exceed one year from the date of the acquisition, based upon new information obtained about facts and circumstances that existed as of the date of closing the acquisition. Centurion’s results of operations have been included in the Company’s financial statements for the period subsequent to the acquisition date of March 31, 2023. Centurion contributed net sales of $23.2 million and $30.6 million for the three and nine months ended July 31, 2023. Lee Container Acquisition The Company acquired of Lee Container Corporation, Inc. (“Lee Container”) on December 15, 2022 (the “Lee Container Acquisition”). Lee Container is an industry-leading manufacturer of high-performance barrier and conventional blow molded containers, jerrycans, and small plastics. The total purchase price for this acquisition, net of cash acquired, was $302.8 million. The Company incurred transaction costs of $5.1 million to complete this acquisition. The following table summarizes the consideration transferred to acquire Lee Container and the preliminary valuation of identifiable assets acquired and liabilities assumed at the acquisition date:
The Company recognized goodwill related to this acquisition of $72.8 million. The goodwill recognized in this acquisition was attributable to the acquired assembled workforce, expected synergies, and economies of scale, none of which qualify for recognition as a separate intangible asset. Lee Container is reported within the Global Industrial Packaging segment to which the goodwill was assigned. The goodwill is expected to be deductible for tax purposes. The cost approach was used to determine the fair value for building improvements and equipment. The cost approach measures the value by estimating the cost to acquire, or construct, comparable assets and adjusts for age and condition. The Company assigned building improvements a useful life ranging from 1 year to 9 years and equipment a useful life ranging from 1 year to 19 years. Acquired property, plant and equipment are being depreciated over their estimated remaining useful lives on a straight-line basis. The fair value for acquired customer relationship intangibles was determined as of the acquisition date based on estimates and judgments regarding expectations for the future after-tax cash flows arising from the revenue from customer relationships that existed on the acquisition date over their estimated lives, including the probability of expected future contract renewals and revenue, less a contributory assets charge, all of which is discounted to present value. The fair values of the trademark intangible assets were determined utilizing the relief from royalty method, which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the trademarks and discounted to present value using an appropriate discount rate. Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the preliminary purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired as of the acquisition date:
The Company has not yet finalized the determination of the fair value of assets acquired and liabilities assumed, including income taxes and contingencies. The Company expects to finalize these amounts within one year of the acquisition date. The estimate of fair value and purchase price allocation were based on information available at the time of closing the acquisition, and the Company continues to evaluate the underlying inputs and assumptions that are being used in fair value estimates. Accordingly, these preliminary estimates are subject to adjustments during the measurement period, not to exceed one year from the acquisition date, based upon new information obtained about facts and circumstances that existed as of the date of closing the acquisition. Lee Container’s results of operations have been included in the Company’s financial statements for the period subsequent to the acquisition date of December 15, 2022. Lee Container contributed net sales of $27.2 million and $83.5 million for the three and nine months ended July 31, 2023, respectively. Pro Forma Results The following unaudited supplemental pro forma data presents consolidated information as if the Centurion Acquisition and Lee Container Acquisition had been completed on November 1, 2021. These amounts were calculated after adjusting Centurion’s and Lee Container’s results to reflect interest expense incurred on the debt to finance the acquisitions, additional depreciation and amortization that would have been charged assuming the fair value of property, plant and equipment and intangible assets had been applied from November 1, 2021, the adjusted tax expense, and related transaction costs.
The unaudited supplemental pro forma financial information is based on the Company’s preliminary assignment of purchase price and therefore subject to adjustment upon finalizing the purchase price assignment. The pro forma data should not be considered indicative of the results that would have occurred if the acquisition and related financing had been consummated on the assumed completion dates, nor are they indicative of future results. Mandatorily Redeemable Noncontrolling Interests The terms of the joint venture agreement for one joint venture within the Global Industrial Packaging reportable segment include mandatory redemption by the Company, in cash, of the noncontrolling interest holders’ equity at a formulaic price after the expiration of a lockout period specific to each noncontrolling interest holder. The Company redeemed the 5.2% outstanding equity interest of the noncontrolling interest holder in this joint venture on January 26, 2023 for $3.3 million. Redeemable Noncontrolling Interests The terms of the joint venture agreement for one joint venture within the Paper Packing & Services reportable segment include a put option for the noncontrolling interest owners to have the right to put all or a portion of those noncontrolling interests to the Company at a formulaic price after a set period of time. On March 31, 2023, the noncontrolling interest owner exercised their put option for all of their ownership interests. The Company made a payment for $3.6 million to the noncontrolling interest owner for the 20.0% outstanding equity interest. Divestitures Tama Divestiture During the first quarter of 2023, the Company completed its divestiture of a U.S. business in the Paper Packaging & Services segment, Tama Paperboard, LLC (the “Tama Divestiture”), for current net cash proceeds of $100.0 million. The Tama Divestiture did not qualify as discontinued operations as it did not represent a strategic shift that has had a major impact on the Company’s operations or financial results. The Tama Divestiture resulted in a $54.3 million gain on sale of business, including goodwill allocated to the sale of $22.5 million.
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RESTRUCTURING CHARGES |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES The following is a reconciliation of the beginning and ending restructuring reserve balances for the nine months ended July 31, 2023:
The focus for restructuring activities in 2023 is to optimize operations and close under-performing assets. During the three months ended July 31, 2023, the Company recorded restructuring charges of $8.7 million, as compared to $3.1 million of restructuring charges recorded during the three months ended July 31, 2022. The restructuring activity for the three months ended July 31, 2023 consisted of $6.5 million in employee separation costs and $2.2 million in other restructuring costs, primarily consisting of professional fees and other fees associated with restructuring activities. During the nine months ended July 31, 2023, the Company recorded restructuring charges of $13.5 million, as compared to $10.3 million of restructuring charges recorded during the nine months ended July 31, 2022. The restructuring activity for the nine months ended July 31, 2023 consisted of $9.2 million in employee separation costs and $4.3 million in other restructuring costs, primarily consisting of professional fees and other fees associated with restructuring activities. The following is a reconciliation of the total amounts expected to be incurred from open restructuring plans or plans that are being formulated and have not been announced as of the filing date of this Form 10-Q. Remaining amounts expected to be incurred were $9.3 million as of July 31, 2023:
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LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt is summarized as follows:
Credit Agreements The Company and certain of its subsidiaries are parties to a senior secured credit agreement (the “2022 Credit Agreement”) with a syndicate of financial institutions. The 2022 Credit Agreement provides for (a) an $800.0 million secured revolving credit facility, consisting of a $725.0 million multicurrency facility and a $75.0 million U.S. dollar facility, maturing on March 1, 2027, (b) a $1,100.0 million secured term loan A-1 facility with quarterly principal installments that commenced on July 31, 2022 and continue through January 31, 2027, with any outstanding principal balance of such term loan A-1 facility being due and payable on maturity on March 1, 2027, and (c) a $515.0 million secured term loan A-2 facility with quarterly principal installments that commenced on July 31, 2022 and continue through January 31, 2027, with any outstanding principal balance of such term loan A-2 being due and payable on maturity on March 1, 2027. Subject to the terms of the 2022 Credit Agreement, the Company has an option to borrow additional funds under the 2022 Credit Agreement with the agreement of the lenders. Interest is based on Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment or a base rate that resets periodically plus, in each case, a calculated margin amount that is based on the Company’s leverage ratio. On May 17, 2023, the Company and Greif Packing LLC, a direct wholly owned subsidiary of Greif, Inc. (“Greif Packaging”), entered into a $300.0 million senior secured credit agreement (the “2023 Credit Agreement”) with CoBank, ACB (“CoBank”), which acted as a lender and is acting as administrative agent of the 2023 Credit Agreement. The 2023 Credit Agreement is permitted incremental equivalent debt under the terms of the 2022 Credit Agreement. The 2023 Credit Agreement provides for a $300.0 million secured term loan facility with quarterly principal installments commencing on July 31, 2023 and continuing through January 31, 2028, with any outstanding principal balance of such term loan being due and payable on maturity on May 17, 2028. The Company used the borrowing under the 2023 Credit Agreement to repay and refinance a portion of the outstanding borrowings under the 2022 Credit Agreement. Interest accruing under the 2023 Credit Agreement is based on SOFR plus a credit spread adjustment or a base rate that resets periodically plus, in each case, a calculated margin amount that is based on the Company’s leverage ratio. As of July 31, 2023, $1,886.2 million was outstanding under the 2022 and 2023 Credit Agreement. The current portion was $88.3 million, and the long-term portion was $1,797.9 million. The weighted average interest rate for borrowings under the 2022 and 2023 Credit Agreement was 5.63% for the nine months ended July 31, 2023. The actual interest rate for borrowings under the 2022 and 2023 Credit Agreement was 6.77% as of July 31, 2023. The deferred financing costs associated with the term loan portion of the 2022 and 2023 Credit Agreement totaled $9.1 million as of July 31, 2023 and are recorded as a reduction of long-term debt on the interim condensed consolidated balance sheets. The deferred financing costs associated with the revolving portion of the 2022 Credit Agreement totaled $3.8 million as of July 31, 2023 and are recorded within other long-term assets on the interim condensed consolidated balance sheets. United States Trade Accounts Receivable Credit Facility Greif Receivables Funding LLC (“Greif Funding”), Greif Packaging, and certain other U.S. subsidiaries of the Company are parties to an amended and restated U.S. Receivables Financing Facility Agreement (the “U.S. RFA”). On May 17, 2023, the maturity date of the U.S. RFA was extended to May 17, 2024. The U.S. RFA provides an accounts receivable financing facility of $300.0 million. As of July 31, 2023, there was $201.6 million outstanding under the U.S. RFA that is reported as long-term debt on the interim condensed consolidated balance sheets because the Company intends to refinance these obligations on a long-term basis and has the intent and ability to consummate a long-term refinancing. Greif Funding is a direct subsidiary of Greif Packaging and is included in the Company’s consolidated financial statements. However, because Greif Funding is a separate and distinct legal entity from the Company, the assets of Greif Funding are not available to satisfy the liabilities and obligations of the Company, Greif Packaging or other subsidiaries of the Company, and the liabilities of Greif Funding are not the liabilities or obligations of the Company or its other subsidiaries. International Trade Accounts Receivable Credit Facility Cooperage Receivables Finance B.V. and Greif Services Belgium BV, an indirect wholly owned subsidiary of Greif, Inc., are parties to an amended and restated Nieuw Amsterdam Receivables Financing Agreement (the “European RFA”) with affiliates of a major international bank. On April 14, 2023, the maturity date of the European RFA was extended to April 23, 2024. The European RFA provides an accounts receivable financing facility of up to €100.0 million ($109.8 million as of July 31, 2023) secured by certain European accounts receivable. As of July 31, 2023, $91.1 million was outstanding on the European RFA that is reported as long-term debt on the interim condensed consolidated balance sheets because the Company intends to refinance these obligations on a long-term basis and has the intent and ability to consummate a long-term refinancing.
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following table presents the fair value for those assets and (liabilities) measured on a recurring basis as of July 31, 2023 and October 31, 2022:
The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts payable, current liabilities and short-term borrowings as of July 31, 2023 and October 31, 2022 approximate their fair values because of the short-term nature of these items and are not included in this table. Interest Rate Derivatives As of July 31, 2023, the Company has various interest rate swaps with a total notional amount of $1,300.0 million, maturing between March 11, 2024 and July 16, 2029. The Company will receive variable rate interest payments based upon one-month U.S. dollar SOFR, and in return the Company will be obligated to pay interest at a weighted average fixed interest rate of 2.62%. This effectively will convert the borrowing rate on an amount of debt equal to the notional amount of the interest rate swaps from a variable rate to a fixed rate. These derivatives are designated as cash flow hedges for accounting purposes. Accordingly, the gain or loss on these derivative instruments is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. See Note 12 to the interim condensed consolidated financial statements for additional disclosures of the aggregate gain or loss included within other comprehensive income. The assumptions used in measuring fair value of these interest rate derivatives are considered level 2 inputs, which are based upon observable market rates, including SOFR and interest paid based upon a designated fixed rate over the life of the swap agreements. Gains (losses) reclassified to earnings under these contracts were $8.2 million and $(2.0) million for the three months ended July 31, 2023, and 2022, respectively. Gains (losses) reclassified to earnings under these contracts were $19.5 million and $(9.6) million for the nine months ended July 31, 2023, and 2022, respectively. A derivative gain of $33.0 million, based upon interest rates at July 31, 2023, is expected to be reclassified from accumulated other comprehensive income (loss) to earnings in the next twelve months. Foreign Exchange Hedges The Company conducts business in various international currencies and is subject to risks associated with changing foreign exchange rates. The Company’s objective is to reduce volatility associated with foreign exchange rate changes. Accordingly, the Company enters into various contracts that change in value as foreign exchange rates change to protect the value of certain existing foreign currency assets and liabilities, commitments and anticipated foreign currency cash flows. As of July 31, 2023, and October 31, 2022, the Company had outstanding foreign currency forward contracts in the notional amount of $80.6 million and $132.1 million, respectively. Adjustments to fair value are recognized in earnings, offsetting the impact of the hedged profits. The assumptions used in measuring fair value of foreign exchange hedges are considered level 2 inputs, which are based on observable market pricing for similar instruments, principally foreign exchange futures contracts. For the three months ended July 31, 2023, and 2022, the Company recorded realized gains (losses) of $0.0 million and $(1.9) million under fair value contracts in other expense, net. For the nine months ended July 31, 2023, and 2022, the Company recorded realized gains (losses) of $0.7 million and $(4.0) million under fair value contracts in other expense, net. For the three months ended July 31, 2023, and 2022, the Company recorded unrealized net gains (losses) of $0.8 million and $(2.2) million in other expense, net. For the nine months ended July 31, 2023, and 2022, the Company recorded unrealized net losses of $0.7 million and $0.6 million in other expense, net. Cross Currency Swap The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. As of July 31, 2023, the Company has various cross currency interest rate swaps that synthetically swap $319.3 million of fixed rate debt to Euro denominated fixed rate debt. The Company receives a weighted average rate of 1.39% on these swaps. These agreements are designated as either net investment hedges or cash flow hedges for accounting purposes and will mature between March 2, 2024 and October 5, 2026. The gain or loss on these net investment hedge derivative instruments is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted, or liquidated. See Note 12 to the interim condensed consolidated financial statements for additional disclosures of the aggregate gain or loss included within other comprehensive income. The gain or loss on the cash flow hedge derivative instruments is included in the unrealized foreign exchange component of other expense, offset by the underlying gain or loss on the underlying cash flows that are being hedged. Interest payments received for the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net on the consolidated statements of income. The assumptions used in measuring fair value of the cross currency swap are considered level 2 inputs, which are based upon the Euro to United States dollar exchange rate market. For the three months ended July 31, 2023 and 2022, gains recorded in interest expense, net under the cross currency swap agreements were $1.2 million and $1.5 million. For the nine months ended July 31, 2023 and 2022, gains recorded in interest expense, net under the cross currency swap agreements were $3.8 million and $4.3 million. Other Financial Instruments The fair values of the Company’s 2022 Credit Agreement, the 2023 Credit Agreement, the U.S. RFA, and the European RFA do not materially differ from carrying value as the Company’s cost of borrowing is variable and approximates current borrowing rates. The fair values of the Company’s long-term obligations are estimated based on either the quoted market prices for the same or similar issues or the current interest rates offered for the debt of the same remaining maturities, which are considered level 2 inputs in accordance with ASC Topic 820, “Fair Value Measurements and Disclosures.” Non-Recurring Fair Value Measurements The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of long-lived assets held and used and net assets held for sale for the nine months ended July 31, 2023 and 2022:
Assets and Liabilities Held for Sale During the nine months ended July 31, 2023, the Company recorded no impairment charges related to assets and liabilities held for sale. During the nine months ended July 31, 2022, the Company entered into a definitive agreement to divest its approximately 50% equity interest in the Flexible Products & Services business (the “FPS Divestiture”). This agreement triggered the reclassification of the Flexible Products & Services business to assets and liabilities held for sale, which further resulted in recognized impairment charges of $62.4 million in the first quarter of 2022. The assumptions used in measuring fair value of assets and liabilities held for sale are considered level 3 inputs, which include recent purchase offers, market comparable information, and data obtained from commercial real estate brokers. Long-Lived Assets As necessary, based on triggering events, the Company measures long-lived assets at fair value on a non-recurring basis. The Company recorded $3.4 million impairment charges related to properties, plants, and equipment, net during the nine months ended July 31, 2023 and $0.7 million impairment charges related to properties, plants, and equipment, net and intangible assets during the nine months ended July 31, 2022, respectively. The assumptions used in measuring fair value of long-lived assets are considered level 3 inputs, which include bids received from third parties, recent purchase offers, market comparable information, and discounted cash flows based on assumptions that market participants would use.
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STOCK-BASED COMPENSATION |
9 Months Ended |
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Jul. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Long-Term Incentive Plan The Company’s 2020 Long-Term Incentive Plan (the “2020 LTIP”) is intended to focus management on the key measures that drive superior performance over the longer term. The 2020 LTIP provides key employees with incentive compensation based upon consecutive and overlapping three-year performance periods that commence at the start of every year. For each three-year performance period, the performance goals are based on performance criteria as determined by the Compensation Committee of the Company’s Board of Directors. For each three-year performance period commencing at the beginning of the year, participants may be granted restricted stock units (“RSUs”) or performance stock units (“PSUs”) or a combination of both. The Company may grant RSUs based on a three-year vesting period on the basis of service only. The RSUs are an equity-classified plan measured at fair value on the grant date recognized ratably over the service period. Dividend-equivalent rights may be granted in connection with an RSU award and are recognized in conjunction with the Company’s dividend issuance and settled upon vesting of the award. The Company granted 105,753 RSUs on December 14, 2022, for the performance period commencing on November 1, 2022 and ending October 31, 2025. The weighted average fair value of the RSUs granted on that date was $68.99. During 2023, the Company issued 76,005 shares of Class A Common Stock excluding shares withheld for the payment of taxes owed by recipients for RSUs vested for the performance period commenced on November 1, 2020 and ended October 31, 2022. Under the 2020 LTIP, the Company may grant PSUs for a three-year performance period based upon service, performance criteria and market conditions. The performance criteria are based on targeted levels of (a) earnings before interest, taxes, depreciation, depletion and amortization and (b) total shareholder return, as determined by the Compensation Committee. The PSUs are a liability-classified plan wherein the fair value of the PSUs awarded is determined at each reporting period using a Monte Carlo simulation. A Monte Carlo simulation uses assumptions including the risk-free interest rate, expected volatility of the Company’s stock price, and expected life of the awards to determine a fair value of the market condition throughout the vesting period. The Company granted 183,218 PSUs on December 14, 2022, for the performance period commencing on November 1, 2022 and ending October 31, 2025. If earned, the PSUs are to be awarded in shares of Class A Common Stock. The weighted average fair value of the PSUs granted on that date was $70.06. The weighted average fair value of the PSUs at July 31, 2023 was $85.14. During 2023, the Company issued 256,053 shares of Class A Common Stock excluding shares withheld for the payment of taxes owed by recipients for PSUs vested for the performance period commenced on November 1, 2020 and ended October 31, 2022.
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INCOME TAXES |
9 Months Ended |
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Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESIncome tax expense for the quarter and year to date periods was computed in accordance with ASC 740-270 “Income Taxes - Interim Reporting.” Under this method, losses from jurisdictions for which a valuation allowance has been provided have not been included in the amount to which the ASC 740-270 rate was applied. The Company’s income tax expense may fluctuate due to changes in estimated losses and income from jurisdictions for which a valuation allowance has been provided, the timing of recognition of the related tax expense under ASC 740-270, and the impact of discrete items in the respective quarter.For the nine months ended July 31, 2023 and July 31, 2022, income tax expense was $107.9 million and $105.4 million, respectively. The $2.5 million net increase in income tax expense for the nine months ended July 31, 2023 was primarily attributable to $18.7 million increased tax expense associated with the Tama Divestiture, $3.5 million fewer benefits from releases of uncertain tax positions, and $4.5 million of miscellaneous other items, offset by $24.2 million reduced tax expense on lower pre-tax book income excluding business divestiture. Additionally, in 2022, a $58.6 million impairment was recorded for the FPS Divestiture and other businesses for which no tax benefit was recorded. |
POST RETIREMENT BENEFIT PLANS |
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POST RETIREMENT BENEFIT PLANS | POST RETIREMENT BENEFIT PLANS The components of net periodic pension cost include the following:
As previously disclosed in the Company’s 2022 Form 10-K, the Company expects to make employer contributions of $28.4 million, including benefits paid directly by the Company, during 2023. The components of net periodic pension cost and net periodic post-retirement benefit, other than the service cost components, are included in the line item “Other income, net” in the interim condensed consolidated statements of income.
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CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES |
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Jul. 31, 2023 | |
Environmental Remediation Obligations [Abstract] | |
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES | CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES Litigation-related Liabilities The Company may become involved from time-to-time in litigation and regulatory matters incidental to its business, including governmental investigations, enforcement actions, personal injury claims, product liability, employment health and safety matters, commercial disputes, intellectual property matters, disputes regarding environmental clean-up costs, litigation in connection with acquisitions and divestitures, and other matters arising out of the normal conduct of its business. The Company intends to vigorously defend itself in such litigation. The Company does not believe that the outcome of any pending litigation will have a material adverse effect on its interim condensed consolidated financial statements. The Company may accrue for contingencies related to litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions can occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews contingencies to determine whether its accruals are adequate. The amount of ultimate loss may differ from these estimates. Environmental Reserves As of July 31, 2023, and October 31, 2022, the Company’s environmental reserves were $19.2 million and $19.0 million, respectively. These reserves are principally based on environmental studies and cost estimates provided by third parties, but also take into account management estimates. The estimated liabilities are reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of relevant costs. For sites that involve formal actions subject to joint and several liabilities, these actions have formal agreements in place to apportion the liability. As of July 31, 2023 and October 31, 2022, the Company has accrued $9.8 million for the Diamond Alkali Superfund Site in New Jersey. Aside from the Diamond Alkali Superfund Site, other environmental reserves of the Company as of July 31, 2023 and October 31, 2022 included $9.4 million and $9.2 million, respectively, for its various facilities around the world. It is possible that there could be resolution of uncertainties in the future that would require the Company to record charges that could be material to future earnings. The Company’s exposure to adverse developments with respect to any individual site is not expected to be material. Although environmental remediation could have a material effect on results of operations if a series of adverse developments occur in a particular quarter or year, the Company believes that the chance of a series of adverse developments occurring in the same quarter or year is remote. Future information and developments will require the Company to continually reassess the expected impact of these environmental matters.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHAREThe Company has two classes of common stock and, as such, applies the “two-class method” of computing earnings per share (“EPS”) as prescribed in ASC 260, “Earnings Per Share.” In accordance with this guidance, earnings are allocated in the same fashion as dividends would be distributed. Under the Company’s certificate of incorporation, any distribution of dividends in any year must be made in proportion of one cent a share for Class A Common Stock to one and one-half cents a share for Class B Common Stock, which results in a 40% to 60% split to Class A and B shareholders, respectively. In accordance with this, earnings are allocated first to Class A and Class B Common Stock to the extent that dividends are actually paid and the remainder is allocated assuming all of the earnings for the period have been distributed in the form of dividends. The Company calculates EPS as follows:
*Diluted Class B EPS calculation is identical to Basic Class B calculation The following table provides EPS information for each period, respectively:
The Class A Common Stock has no voting rights unless four quarterly cumulative dividends upon the Class A Common Stock are in arrears. The Class B Common Stock has full voting rights. There is no cumulative voting for the election of directors. Common Stock Repurchases In June 2022, the Stock Repurchase Committee of the Company’s Board of Directors authorized a program to repurchase up to $150.0 million of shares of the Company’s Class A or Class B Common Stock or any combination thereof. On June 23, 2022, the Company entered into a $75.0 million accelerated share repurchase agreement (“ASR”) with Bank of America, N.A. for the repurchase of shares of the Company’s Class A Common Stock. In addition, at that time the Company initiated a plan to repurchase an aggregate of $75.0 million of shares of its Class A or Class B Common Stock, or any combination thereof, in open market purchases (“OSR program”). Under the ASR, on June 24, 2022, the Company made a payment of $75.0 million and received an initial delivery of approximately 80% of the expected share repurchases, or 1,021,451 shares of Class A Common Stock. On February 28, 2023, the Company received the remaining 94,259 shares of Class A Common Stock. The Company began making repurchases of Class B Common Stock under the OSR program on September 9, 2022 and repurchases of Class A Common Stock under the OSR program on March 16, 2023 in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934. The OSR program was completed on May 26, 2023, with $25.0 million of shares of Class A Common Stock, or 406,343 shares, and $50.0 million of shares of Class B Common Stock, or 676,598 shares, being repurchased under the OSR program. The following table summarizes the shares of the Company’s Class A and Class B Common Stock as of the specified dates:
The following is a reconciliation of the shares used to calculate basic and diluted earnings per share:
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company leases certain buildings, warehouses, land, transportation equipment, operating equipment, and office equipment with remaining lease terms from less than 1 year up to 19 years. The Company reviews all options to extend, terminate, or purchase a right of use asset at the time of lease inception and accounts for options deemed reasonably certain. The Company combines lease and non-lease components for all leases, except real estate, for which these components are presented separately. Leases with an initial term of twelve months or less are not capitalized and are recognized on a straight-line basis over the lease term. The implicit rate is not readily determinable for substantially all of the Company’s leases, and therefore the initial present value of lease payments is calculated utilizing an estimated incremental borrowing rate determined at the portfolio level based on market and Company specific information. Certain of the Company’s leases include variable costs. As the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, changes in these variable expenses are not capitalized and are expensed as incurred throughout the lease term. As of July 31, 2023, the Company has not entered into any significant leases which have not yet commenced. The following table presents the lease expense components for the three and nine months ended July 31, 2023 and 2022:
The following table presents the future maturity for the Company’s lease liabilities, during the next five years, and in the aggregate for the years thereafter as of July 31, 2023:
The following table presents the weighted-average lease term and discount rate as of July 31, 2023 and 2022:
The following table presents other required lease related information for the three and nine months ended July 31, 2023 and 2022:
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COMPREHENSIVE INCOME (LOSS) |
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COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) The following table provides the rollforward of accumulated other comprehensive income (loss) for the nine months ended July 31, 2023:
The following table provides the rollforward of accumulated other comprehensive income (loss) for the nine months ended July 31, 2022:
The components of accumulated other comprehensive income (loss) above are presented net of tax, as applicable.
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BUSINESS SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has six operating segments, which are aggregated into three reportable business segments: Global Industrial Packaging; Paper Packaging & Services; and Land Management. The Company’s reportable business segments offer different products and services. The accounting policies of the reportable business segments are substantially the same as those described in the “Basis of Presentation and Summary of Significant Accounting Policies” note in the 2022 Form 10-K. On March 31, 2023, the Company completed the Centurion Acquisition. Centurion is a leader in the North American IBC reconditioning industry involved in IBC rebottling, reconditioning and distribution, which complement the Company’s Global Industrial Packaging specialty portfolio. The results of Centurion are recorded within the Global Industrial Packaging segment while the Company evaluates the impact of the Centurion Acquisition on its reportable business segments. On December 15, 2022, the Company completed the Lee Container Acquisition. Lee Container is an industry-leading manufacturer of high-performance barrier and conventional blow molded containers, jerrycans, and small plastics, which complement the Company’s Global Industrial Packaging specialty portfolio. The results of Lee Container are recorded within the Global Industrial Packaging segment while the Company evaluates the impact of the Lee Container Acquisition on its reportable business segments. The following tables present net sales disaggregated by geographic area for each reportable segment for the three and nine months ended July 31, 2023:
The following tables present net sales disaggregated by geographic area for each reportable segment for the three and nine months ended July 31, 2022:
The following segment information is presented for the periods indicated:
The following table presents total assets by segment and total properties, plants and equipment, net by geographic area:
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SUBSEQUENT EVENTS |
9 Months Ended |
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Jul. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On August 23, 2023, the Company acquired a 51% ownership interest in ColePak, LLC (“ColePak”), a manufacturer of bulk and specialty partitions made from both containerboard and uncoated recycled board, for a purchase price of $75.0 million in cash. The Company anticipates completing the preliminary purchase price allocation during the fourth fiscal quarter of 2023, which would then be reflected in the Company’s October 31, 2023 financial statements. The results of operations of the acquired business will be included in the Company’s results from the closing date of the acquisition.
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
9 Months Ended |
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Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates. The fiscal year of Greif, Inc. and its subsidiaries (the “Company”) begins on November 1 and ends on October 31 of the following year. Any references to years or to any quarter of those years, relates to the fiscal year or quarter, as the case may be, ended in that year, unless otherwise stated. The information filed herein reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated balance sheet as of July 31, 2023 and the condensed consolidated balance sheet as of October 31, 2022, the interim condensed consolidated statements of income, comprehensive income and changes in shareholders’ equity for the three and nine months ended July 31, 2023 and 2022 and the interim condensed consolidated statements of cash flows for the three and nine months ended July 31, 2023 and 2022 of the Company. The interim condensed consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and consolidated subsidiaries and investments in limited liability companies, partnerships and joint ventures in which it has controlling influence or is the primary beneficiary. Non-majority owned entities include investments in limited liability companies, partnerships and joint ventures in which the Company does not have controlling interest and are accounted for using either the equity or cost method, as appropriate. The unaudited interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2022 (the “2022 Form 10-K”).
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Newly Adopted Accounting Standards and Recently Issued Accounting Standards | Newly Adopted Accounting Standards There have been no new accounting standards adopted since the filing of the 2022 Form 10-K that have significance, or potential significance, to the interim condensed consolidated financial statements. Recently Issued Accounting Standards There have been no new accounting pronouncements issued since the filing of the 2022 Form 10-K that have significance, or potential significance, to the interim condensed consolidated financial statements.
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ACQUISITIONS AND DIVESTITURES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration transferred to acquire Centurion and the preliminary valuation of identifiable assets acquired and liabilities assumed at the acquisition date:
The following table summarizes the consideration transferred to acquire Lee Container and the preliminary valuation of identifiable assets acquired and liabilities assumed at the acquisition date:
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Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the preliminary purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired as of the acquisition date:
The following unaudited supplemental pro forma data presents consolidated information as if the Centurion Acquisition and Lee Container Acquisition had been completed on November 1, 2021. These amounts were calculated after adjusting Centurion’s and Lee Container’s results to reflect interest expense incurred on the debt to finance the acquisitions, additional depreciation and amortization that would have been charged assuming the fair value of property, plant and equipment and intangible assets had been applied from November 1, 2021, the adjusted tax expense, and related transaction costs.
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RESTRUCTURING CHARGES (Tables) |
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Jul. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Beginning and Ended Restructuring Reserve Balances | The following is a reconciliation of the beginning and ending restructuring reserve balances for the nine months ended July 31, 2023:
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Schedule of Reconciliation of Total Amounts Expected to be Incurred from Open Restructuring Plans Anticipated to be Realized | The following is a reconciliation of the total amounts expected to be incurred from open restructuring plans or plans that are being formulated and have not been announced as of the filing date of this Form 10-Q. Remaining amounts expected to be incurred were $9.3 million as of July 31, 2023:
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LONG-TERM DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | Long-term debt is summarized as follows:
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recurring Fair Value Measurements | The following table presents the fair value for those assets and (liabilities) measured on a recurring basis as of July 31, 2023 and October 31, 2022:
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Schedule of Quantitative about Significant Unobservable Inputs Used to Determine Fair Value of Impairment of Long-Lived Assets Held and Used | The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of long-lived assets held and used and net assets held for sale for the nine months ended July 31, 2023 and 2022:
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POST RETIREMENT BENEFIT PLANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components Of Net Periodic Pension Cost | The components of net periodic pension cost include the following:
|
EARNINGS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Class Based Basic and Diluted Earnings Per Share | The Company calculates EPS as follows:
*Diluted Class B EPS calculation is identical to Basic Class B calculation
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Schedule of Computation of Earnings Per Share Basic and Diluted | The following table provides EPS information for each period, respectively:
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Schedule of Company's Class A and Class B Common and Treasury Shares | The following table summarizes the shares of the Company’s Class A and Class B Common Stock as of the specified dates:
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Schedule of Reconciliation of Shares Used to Calculate Basic and Diluted Earnings Per Share | The following is a reconciliation of the shares used to calculate basic and diluted earnings per share:
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LEASES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Expense | The following table presents the lease expense components for the three and nine months ended July 31, 2023 and 2022:
The following table presents other required lease related information for the three and nine months ended July 31, 2023 and 2022:
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Schedule of Maturities of Operating Lease Liabilities | The following table presents the future maturity for the Company’s lease liabilities, during the next five years, and in the aggregate for the years thereafter as of July 31, 2023:
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Schedule of Weighted-Average Lease Term and Discount Rate | The following table presents the weighted-average lease term and discount rate as of July 31, 2023 and 2022:
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COMPREHENSIVE INCOME (LOSS) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income (loss) for the nine months ended July 31, 2023:
The following table provides the rollforward of accumulated other comprehensive income (loss) for the nine months ended July 31, 2022:
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BUSINESS SEGMENT INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers by Geographic Areas | The following tables present net sales disaggregated by geographic area for each reportable segment for the three and nine months ended July 31, 2023:
The following tables present net sales disaggregated by geographic area for each reportable segment for the three and nine months ended July 31, 2022:
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Schedule of Segment Information | The following segment information is presented for the periods indicated:
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Schedule of Properties, Plants and Equipment, Net by Geographical Area | The following table presents total assets by segment and total properties, plants and equipment, net by geographic area:
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ACQUISITIONS AND DIVESTITURES - Pro forma (Details) - Lee Container Acquisition - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
|
Business Acquisition [Line Items] | ||||
Pro forma net sales | $ 1,330.2 | $ 1,687.2 | $ 3,968.0 | $ 5,050.4 |
Pro forma net income attributable to Greif, Inc. | $ 86.0 | $ 144.2 | $ 298.4 | $ 285.7 |
Class A Common Stock | ||||
Business Acquisition [Line Items] | ||||
Basic earnings per share attributable to Greif, Inc. common shareholders: (in dollars per share) | $ 1.50 | $ 2.43 | $ 5.16 | $ 4.80 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: (in dollars per share) | 1.48 | 2.36 | 5.11 | 4.63 |
Class B Common Stock | ||||
Business Acquisition [Line Items] | ||||
Basic earnings per share attributable to Greif, Inc. common shareholders: (in dollars per share) | 2.24 | 3.65 | 7.72 | 7.20 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: (in dollars per share) | $ 2.24 | $ 3.59 | $ 7.72 | $ 6.98 |
RESTRUCTURING CHARGES - Reconciliation of Beginning and Ending Restructuring Reserve Balances (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
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Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 12.3 | |||
Costs incurred and charged to expense | $ 8.7 | $ 3.1 | 13.5 | $ 10.3 |
Costs paid or otherwise settled | (9.5) | |||
Restructuring reserve, ending balance | 16.3 | 16.3 | ||
Employee Separation Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 11.2 | |||
Costs incurred and charged to expense | 6.5 | 9.2 | ||
Costs paid or otherwise settled | (5.2) | |||
Restructuring reserve, ending balance | 15.2 | 15.2 | ||
Other Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 1.1 | |||
Costs incurred and charged to expense | 2.2 | 4.3 | ||
Costs paid or otherwise settled | (4.3) | |||
Restructuring reserve, ending balance | $ 1.1 | $ 1.1 |
RESTRUCTURING CHARGES - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
|
Restructuring and Related Costs [Line Items] | ||||
Restructuring charges | $ 8.7 | $ 3.1 | $ 13.5 | $ 10.3 |
Amounts remaining to be incurred | 9.3 | 9.3 | ||
Employee Separation Costs | ||||
Restructuring and Related Costs [Line Items] | ||||
Restructuring charges | 6.5 | 9.2 | ||
Other restructuring costs | ||||
Restructuring and Related Costs [Line Items] | ||||
Restructuring charges | $ 2.2 | $ 4.3 |
LONG-TERM DEBT - Summary of Long-Term Debt (Details) - USD ($) $ in Millions |
Jul. 31, 2023 |
Oct. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,179.1 | $ 1,918.7 |
Less: current portion | 88.3 | 71.1 |
Less: deferred financing costs | 9.4 | 8.3 |
Long-term debt, net | 2,081.4 | 1,839.3 |
Other debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0.2 | 0.4 |
Term Loan | 2022 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,514.1 | 1,565.0 |
Term Loan | 2023 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 300.0 | 0.0 |
Accounts receivable credit facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt | 292.7 | 311.4 |
Revolving Credit Facility | 2022 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 72.1 | $ 41.9 |
LONG-TERM DEBT - Trade Accounts Receivable Credit Facility (Details) $ in Millions |
Jul. 31, 2023
USD ($)
|
Jul. 31, 2023
EUR (€)
|
May 17, 2023
USD ($)
|
Oct. 31, 2022
USD ($)
|
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Long-term debt | $ 2,179.1 | $ 1,918.7 | ||
Accounts receivable credit facilities | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 292.7 | $ 311.4 | ||
United States Trade Accounts receivable credit facilities | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 300.0 | |||
United States Trade Accounts receivable credit facilities | Accounts receivable credit facilities | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | 201.6 | |||
International Trade Accounts Receivable Credit Facilities | European RPA | ||||
Debt Instrument [Line Items] | ||||
Financing receivable maximum amount under receivable purchase agreement | 109.8 | € 100,000,000 | ||
International Trade Accounts Receivable Credit Facilities | Foreign Line of Credit | European RPA | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 91.1 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 31.1 | $ 39.9 | $ 107.9 | $ 105.4 |
Increase in tax expense | 2.5 | |||
Favorable reconciliation tax settlement | 18.7 | |||
Miscellaneous other items | 3.5 | |||
Reduced tax expense | 4.5 | |||
Tax adjustments for disposal | $ 24.2 | |||
Book impairment loss | $ 58.6 |
POST RETIREMENT BENEFIT PLANS - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 2.0 | $ 2.9 | $ 6.0 | $ 8.9 |
Interest cost | 8.8 | 5.0 | 26.2 | 15.2 |
Expected return on plan assets | (9.8) | (8.2) | (29.2) | (24.7) |
Amortization of prior service benefit | (0.1) | (0.1) | (0.3) | (0.3) |
Recognized net actuarial (gain) loss | (0.5) | 1.9 | (1.6) | 5.9 |
Net periodic pension cost | $ 0.4 | $ 1.5 | $ 1.1 | $ 5.0 |
POST RETIREMENT BENEFIT PLANS - Additional Information (Details) $ in Millions |
Oct. 31, 2022
USD ($)
|
---|---|
Retirement Benefits [Abstract] | |
Expected future employer contributions | $ 28.4 |
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES (Details) - USD ($) $ in Millions |
Jul. 31, 2023 |
Oct. 31, 2022 |
---|---|---|
Site Contingency [Line Items] | ||
Environmental liability reserves | $ 19.2 | $ 19.0 |
Diamond Alkali | ||
Site Contingency [Line Items] | ||
Environmental liability reserves | 9.8 | 9.8 |
European Drum Facilities | ||
Site Contingency [Line Items] | ||
Environmental liability reserves | $ 9.4 | $ 9.2 |
EARNINGS PER SHARE - Computation of Earnings Per Share Basic and Diluted (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
|
Numerator for basic and diluted EPS | ||||
Net income attributable to Greif, Inc. | $ 90.3 | $ 141.8 | $ 291.4 | $ 277.2 |
Cash dividends | (28.8) | (27.4) | (86.7) | (82.0) |
Undistributed earnings attributable to Greif, Inc. | $ 61.5 | $ 114.4 | $ 204.7 | $ 195.2 |
EARNINGS PER SHARE - Summarization of Company's Class A and Class B Common and Treasury Shares (Details) - shares |
Jul. 31, 2023 |
Oct. 31, 2022 |
---|---|---|
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Authorized Shares (in shares) | 128,000,000 | 128,000,000 |
Issued Shares (in shares) | 42,281,920 | 42,281,920 |
Outstanding Shares (in shares) | 25,474,254 | 25,606,287 |
Treasury Shares (in shares) | 16,807,666 | 16,675,633 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Authorized Shares (in shares) | 69,120,000 | 69,120,000 |
Issued Shares (in shares) | 34,560,000 | 34,560,000 |
Outstanding Shares (in shares) | 21,331,127 | 21,836,745 |
Treasury Shares (in shares) | 13,228,873 | 12,723,255 |
EARNINGS PER SHARE - Reconciliation of Shares Used to Calculate Basic and Diluted Earnings Per Share (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
|
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Basic shares (in shares) | 25,473,454 | 26,207,808 | 25,632,486 | 26,466,619 |
Assumed conversion of restricted shares (in shares) | 520,818 | 419,175 | 356,605 | 255,062 |
Diluted shares (in shares) | 25,994,272 | 26,626,983 | 25,989,091 | 26,721,681 |
Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Basic shares (in shares) | 21,339,943 | 22,007,725 | 21,519,665 | 22,007,725 |
Diluted shares (in shares) | 21,339,943 | 22,007,725 | 21,519,665 | 22,007,725 |
LEASES - Additional Information (Details) |
Jul. 31, 2023 |
---|---|
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 19 years |
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 17.0 | $ 14.7 | $ 48.0 | $ 48.4 |
Finance lease cost - amortization | 1.2 | 0.2 | 3.0 | 1.2 |
Finance lease cost - interest | 0.5 | 0.1 | 1.5 | 0.1 |
Other lease cost | 6.1 | 6.1 | 19.3 | 17.1 |
Total lease cost | $ 24.8 | $ 21.1 | $ 71.8 | $ 66.8 |
LEASES - Maturities of Operating Lease Liabilities (Details) $ in Millions |
Jul. 31, 2023
USD ($)
|
---|---|
Operating Leases | |
2023 | $ 16.3 |
2024 | 59.0 |
2025 | 52.1 |
2026 | 43.0 |
2027 | 33.8 |
Thereafter | 115.0 |
Total lease payments | 319.2 |
Less: interest | (47.2) |
Lease liabilities | 272.0 |
Finance Leases | |
2023 | 1.6 |
2024 | 6.0 |
2025 | 5.6 |
2026 | 5.5 |
2027 | 5.4 |
Thereafter | 20.8 |
Total lease payments | 44.9 |
Less: interest | (12.7) |
Lease liabilities | 32.2 |
Total expected payments | |
2023 | 17.9 |
2024 | 65.0 |
2025 | 57.7 |
2026 | 48.5 |
2027 | 39.2 |
Thereafter | 135.8 |
Total lease payments | 364.1 |
Less: interest | (59.9) |
Lease liabilities | $ 304.2 |
LEASES - Schedule of Weighted-Average Lease Term and Discount Rate (Details) |
Jul. 31, 2023 |
Jul. 31, 2022 |
---|---|---|
Weighted-average remaining lease term (years): | ||
Operating leases | 9 years 2 months 12 days | 10 years |
Finance leases | 7 years 10 months 24 days | 2 years 8 months 12 days |
Weighted-average discount rate: | ||
Operating leases | 4.22% | 3.63% |
Finance leases | 6.32% | 3.41% |
LEASES - Cash Flow (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2022 |
Jul. 31, 2023 |
Jul. 31, 2022 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows used for operating liabilities | $ 17.0 | $ 15.3 | $ 48.1 | $ 49.4 |
Financing cash flows used for finance leases | 1.2 | 0.3 | 2.9 | 0.9 |
Leased assets obtained in exchange for new lease liabilities: | ||||
Leased assets obtained in exchange for new operating lease liabilities | 5.7 | 3.9 | 52.9 | 15.9 |
Leased assets obtained in exchange for new finance lease liabilities | $ 2.4 | $ 0.1 | $ 36.1 | $ 0.4 |
BUSINESS SEGMENT INFORMATION - Additional Information (Details) |
9 Months Ended |
---|---|
Jul. 31, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 6 |
Number of reportable segment | 3 |
BUSINESS SEGMENT INFORMATION - Properties, Plants and Equipment, Net by Geographical Area (Details) - USD ($) $ in Millions |
Jul. 31, 2023 |
Oct. 31, 2022 |
---|---|---|
Assets: | ||
Total assets | $ 5,873.5 | $ 5,469.9 |
Long lived assets, net: | ||
Total long-lived assets, net | 1,824.1 | 1,710.9 |
United States | ||
Long lived assets, net: | ||
Total long-lived assets, net | 1,412.9 | 1,315.6 |
Europe, Middle East and Africa | ||
Long lived assets, net: | ||
Total long-lived assets, net | 321.5 | 303.7 |
Asia Pacific and Other Americas | ||
Long lived assets, net: | ||
Total long-lived assets, net | 89.7 | 91.6 |
Operating Segments | ||
Assets: | ||
Total assets | 5,482.2 | 5,032.3 |
Operating Segments | Global Industrial Packaging | ||
Assets: | ||
Total assets | 2,845.6 | 2,308.4 |
Operating Segments | Paper Packaging & Services | ||
Assets: | ||
Total assets | 2,383.6 | 2,473.9 |
Operating Segments | Land Management | ||
Assets: | ||
Total assets | 253.0 | 250.0 |
Corporate and other | ||
Assets: | ||
Total assets | $ 391.3 | $ 437.6 |
SUBSEQUENT EVENTS (Details) - Subsequent Event - ColePak $ in Millions |
Aug. 23, 2023
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Ownership percent acquired | 51.00% |
Cash consideration | $ 75.0 |
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