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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Berry Global Group Inc | NYSE:BERY | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.66 | -1.10% | 59.13 | 59.64 | 58.29 | 59.11 | 876,978 | 01:00:00 |
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 SECURITIES EXCHANGE ACT OF 1934
|
A
|
(
|
IRS employer identification number
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
Accelerated Filer ☐
|
Non-Accelerated Filer ☐
|
Smaller Reporting Company
|
Emerging Growth Company
|
Part I.
|
Financial Information
|
Page No.
|
|
Item 1.
|
Financial Statements:
|
||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
8
|
|||
Item 2.
|
15
|
||
Item 3.
|
20
|
||
Item 4.
|
20
|
||
Part II.
|
Other Information
|
||
Item 1.
|
21
|
||
Item 1A.
|
21
|
||
Item 2.
|
21
|
||
Item 5.
|
21
|
||
Item 6.
|
22
|
||
23
|
Item 1. |
Financial Statements
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
|||||||||||||||
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
|||||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Costs and expenses:
|
||||||||||||||||
Cost of goods sold
|
|
|
|
|
||||||||||||
Selling, general and administrative
|
|
|
|
|
||||||||||||
Amortization of intangibles
|
|
|
|
|
||||||||||||
Restructuring and transaction activities
|
|
|
|
|
||||||||||||
Operating income
|
|
|
|
|
||||||||||||
Other expense
|
|
|
|
|
||||||||||||
Interest expense
|
|
|
|
|
||||||||||||
Income before income taxes
|
|
|
|
|
||||||||||||
Income tax expense
|
|
|
|
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
|
|
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
|||||||||||||||
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
|||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Currency translation
|
(
|
)
|
|
|
|
|||||||||||
Derivative instruments
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Other comprehensive income
|
(
|
)
|
|
|
|
|||||||||||
Comprehensive income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
|
March 30, 2024
|
September 30, 2023
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable
|
|
|
||||||
Finished goods
|
|
|
||||||
Raw materials and supplies
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Noncurrent assets:
|
||||||||
Property, plant and equipment
|
|
|
||||||
Goodwill and intangible assets
|
|
|
||||||
Right-of-use assets
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and stockholders’ equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
|
$
|
|
||||
Accrued employee costs
|
|
|
||||||
Other current liabilities
|
|
|
||||||
Current portion of long-term debt
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Noncurrent liabilities:
|
||||||||
Long-term debt
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Employee benefit obligations
|
|
|
||||||
Operating lease liabilities
|
|
|
||||||
Other long-term liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Stockholders’ equity:
|
||||||||
Common stock (
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
Two Quarterly Periods Ended
|
||||||||
March 30, 2024
|
April 1, 2023
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net cash from operating activities:
|
||||||||
Depreciation
|
|
|
||||||
Amortization of intangibles
|
|
|
||||||
Non-cash interest (income) expense, net
|
(
|
)
|
(
|
)
|
||||
Settlement of derivatives
|
|
|
||||||
Deferred income tax
|
(
|
)
|
(
|
)
|
||||
Debt extinguishment
|
|
|
||||||
Share-based compensation expense
|
|
|
||||||
Loss on divestitures
|
|
|
||||||
Other non-cash operating activities, net
|
|
|
||||||
Changes in working capital
|
(
|
)
|
(
|
)
|
||||
Changes in other assets and liabilities
|
|
(
|
)
|
|||||
Net cash from operating activities
|
|
|
||||||
Cash Flows from Investing Activities:
|
||||||||
Additions to property, plant and equipment, net
|
(
|
)
|
(
|
)
|
||||
Divestitures, acquisitions and other activities
|
|
(
|
)
|
|||||
Net cash from investing activities
|
(
|
)
|
(
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||
Proceeds from long-term borrowings
|
|
|
||||||
Repayments on long-term borrowings
|
(
|
)
|
(
|
)
|
||||
Proceeds from issuance of common stock
|
|
|
||||||
Repurchase of common stock
|
(
|
)
|
(
|
)
|
||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Other, net
|
(
|
)
|
|
|||||
Net cash from financing activities
|
(
|
)
|
(
|
)
|
||||
Effect of currency translation on cash
|
|
|
||||||
Net change in cash and cash equivalents
|
(
|
)
|
(
|
)
|
||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
Quarterly Period Ended
|
Common
Stock
|
Additional
Paid-in Capital
|
Accumulated Other
Comprehensive Loss
|
Retained
Earnings
|
Total
|
|||||||||||||||
Balance at December 30, 2023
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
Net income
|
|
|
|
|
|
|||||||||||||||
Other comprehensive income
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||
Share-based compensation
|
|
|
|
|
|
|||||||||||||||
Proceeds from issuance of common stock
|
|
|
|
|
|
|||||||||||||||
Common stock repurchased and other
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
||||||||||||
Dividends paid
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||
Balance at March 30, 2024
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
Balance at December 31, 2022
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
Net income
|
|
|
|
|
|
|||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|||||||||||||||
Share-based compensation
|
|
|
|
|
|
|||||||||||||||
Proceeds from issuance of common stock
|
|
|
|
|
|
|||||||||||||||
Common stock repurchased and other
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
||||||||||||
Dividends paid
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||
Balance at April 1, 2023
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Two Quarterly Periods Ended
|
Common
Stock
|
Additional
Paid-in Capital
|
Accumulated Other
Comprehensive Loss
|
Retained
Earnings
|
Total
|
|||||||||||||||
Balance at September 30, 2023
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
Net income
|
|
|
|
|
|
|||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|||||||||||||||
Share-based compensation
|
|
|
|
|
|
|||||||||||||||
Proceeds from issuance of common stock
|
|
|
|
|
|
|||||||||||||||
Common stock repurchased and other
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
||||||||||||
Dividends paid
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||
Balance at March 30, 2024
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
Balance at October 1, 2022
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
Net income
|
|
|
|
|
|
|||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|||||||||||||||
Share-based compensation
|
|
|
|
|
|
|||||||||||||||
Proceeds from issuance of common stock
|
|
|
|
|
|
|||||||||||||||
Common stock repurchased and other
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
||||||||||||
Dividends paid
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||
Balance at April 1, 2023
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
Restructuring Plans
|
||||||||||||||||||
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
Life to date (a)
|
||||||||||||||||
Consumer Packaging International
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|||||||||||
Consumer Packaging North America
|
|
|
|
|
|
|||||||||||||||
Health, Hygiene & Specialties
|
|
|
|
|
|
|||||||||||||||
Flexibles
|
(
|
)
|
|
|
|
|
||||||||||||||
Consolidated
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Restructuring
|
||||||||||||||||||||
Employee
Severance
and Benefits
|
Facility
Exit Costs
|
Non-cash
Impairment
Charges
|
Transaction
Activities
|
Total
|
||||||||||||||||
Balance as of September 30, 2023
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Charges
|
|
|
|
|
|
|||||||||||||||
Non-cash items
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Cash
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||||
Balance as of March 30, 2024
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Leases
|
Classification
|
March 30, 2024
|
September 30, 2023
|
||||||
Operating leases:
|
|||||||||
Operating lease right-of-use assets
|
|
$
|
|
$
|
|
||||
Current operating lease liabilities
|
|
|
|
||||||
Noncurrent operating lease liabilities
|
|
|
|
||||||
Finance leases:
|
|||||||||
Finance lease right-of-use assets
|
|
$
|
|
$
|
|
||||
Current finance lease liability
|
|
|
|
||||||
Noncurrent finance lease liabilities
|
|
|
|
Facility
|
Maturity Date
|
March 30, 2024
|
September 30, 2023
|
||||||
Term loan (a)
|
|
$
|
|
$
|
|
||||
Term loan (a)
|
|
|
|
||||||
Revolving line of credit
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
Debt discounts and deferred fees
|
(
|
)
|
(
|
)
|
|||||
Finance leases and other
|
Various
|
|
|
||||||
Retired debt
|
|
|
|||||||
Total long-term debt
|
|
|
|||||||
Current portion of long-term debt
|
(
|
)
|
(
|
)
|
|||||
Long-term debt, less current portion
|
$
|
|
$
|
|
(a) |
|
(b) |
|
(c) |
|
Derivative Instruments
|
Hedge Designation
|
Balance Sheet Location
|
March 30, 2024
|
September 30, 2023
|
||||||
Cross-currency swaps
|
Designated
|
Other current liabilities
|
|
|
||||||
Cross-currency swaps
|
Designated
|
Other long-term liabilities
|
|
|
||||||
Interest rate swaps
|
Designated
|
Other assets
|
|
|
||||||
Interest rate swaps
|
Designated
|
Other long-term liabilities
|
|
|
||||||
Interest rate swaps
|
Not designated
|
Other assets
|
|
|
||||||
Interest rate swaps
|
Not designated
|
Other long-term liabilities
|
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
||||||||||||||||
Derivative Instruments
|
Statements of Income Location
|
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
||||||||||||
Cross-currency swaps
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Interest rate swaps
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
As of March 30, 2024
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Impairment
|
||||||||||||||||
Indefinite-lived trademarks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Goodwill
|
|
|
|
|
|
|||||||||||||||
Definite lived intangible assets
|
|
|
|
|
|
|||||||||||||||
Property, plant, and equipment
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
As of September 30, 2023
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Impairment
|
||||||||||||||||
Indefinite-lived trademarks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Goodwill
|
|
|
|
|
|
|||||||||||||||
Definite lived intangible assets
|
|
|
|
|
|
|||||||||||||||
Property, plant, and equipment
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
|||||||||||||||
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
|||||||||||||
Net sales:
|
||||||||||||||||
Consumer Packaging International
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Consumer Packaging North America
|
|
|
|
|
||||||||||||
Health, Hygiene & Specialties
|
|
|
|
|
||||||||||||
Flexibles
|
|
|
|
|
||||||||||||
Total net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Operating income:
|
||||||||||||||||
Consumer Packaging International
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Consumer Packaging North America
|
|
|
|
|
||||||||||||
Health, Hygiene & Specialties
|
|
|
|
|
||||||||||||
Flexibles
|
|
|
|
|
||||||||||||
Total operating income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Depreciation and amortization:
|
||||||||||||||||
Consumer Packaging International
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Consumer Packaging North America
|
|
|
|
|
||||||||||||
Health, Hygiene & Specialties
|
|
|
|
|
||||||||||||
Flexibles
|
|
|
|
|
||||||||||||
Total depreciation and amortization
|
$
|
|
$
|
|
$
|
|
$
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
|||||||||||||||
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
|||||||||||||
Net sales:
|
||||||||||||||||
United States and Canada
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Rest of world
|
|
|
|
|
||||||||||||
Total net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
|||||||||||||||
(in millions, except per share amounts)
|
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
||||||||||||
Numerator
|
||||||||||||||||
Consolidated net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Denominator
|
||||||||||||||||
Weighted average common shares outstanding - basic
|
|
|
|
|
||||||||||||
Dilutive shares
|
|
|
|
|
||||||||||||
Weighted average common and common equivalent shares outstanding - diluted
|
|
|
|
|
||||||||||||
Per common share earnings
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
Quarterly Period Ended
|
Currency
Translation
|
Defined Benefit
Pension and Retiree
Health Benefit Plans
|
Derivative
Instruments
|
Accumulated Other
Comprehensive Loss
|
||||||||||||
Balance at December 30, 2023
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Net amount reclassified
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Balance at March 30, 2024
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Currency
Translation
|
Defined Benefit
Pension and Retiree
Health Benefit Plans
|
Derivative
Instruments
|
Accumulated Other
Comprehensive Loss
|
|||||||||||||
Balance at December 31, 2022
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
|
|
(
|
)
|
|
|||||||||||
Net amount reclassified
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Balance at April 1, 2023
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Two Quarterly Periods Ended
|
Currency
Translation
|
Defined Benefit
Pension and Retiree
Health Benefit Plans
|
Derivative
Instruments
|
Accumulated Other
Comprehensive Loss
|
||||||||||||
Balance at September 30, 2023
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
|
|
(
|
)
|
|
|||||||||||
Net amount reclassified
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Balance at March 30, 2024
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Currency
Translation
|
Defined Benefit
Pension and Retiree
Health Benefit Plans
|
Derivative
Instruments
|
Accumulated Other
Comprehensive Loss
|
|||||||||||||
Balance at October 1, 2022
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
|
|
(
|
)
|
|
|||||||||||
Net amount reclassified
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Balance at April 1, 2023
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Consolidated Overview
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
3,076
|
$
|
3,288
|
$
|
(212
|
)
|
(6
|
)%
|
|||||||
Cost of goods sold
|
2,509
|
2,682
|
(173
|
)
|
(6
|
)%
|
||||||||||
Other operating expenses
|
359
|
305
|
54
|
18
|
%
|
|||||||||||
Operating income
|
$
|
208
|
$
|
301
|
$
|
(93
|
)
|
(31
|
)%
|
Consumer Packaging International
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
968
|
$
|
1,059
|
$
|
(91
|
)
|
(9
|
)%
|
|||||||
Operating income
|
$
|
3
|
$
|
75
|
$
|
(72
|
)
|
(96
|
)%
|
Consumer Packaging North America
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
751
|
$
|
774
|
$
|
(23
|
)
|
(3
|
)%
|
|||||||
Operating income
|
$
|
77
|
$
|
93
|
$
|
(16
|
)
|
(17
|
)%
|
Health, Hygiene & Specialties
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
646
|
$
|
677
|
$
|
(31
|
)
|
(5
|
)%
|
|||||||
Operating income
|
$
|
33
|
$
|
34
|
$
|
(1
|
)
|
(3
|
)%
|
Flexibles
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
711
|
$
|
778
|
$
|
(67
|
)
|
(9
|
)%
|
|||||||
Operating income
|
$
|
95
|
$
|
99
|
$
|
(4
|
)
|
(4
|
)%
|
Consolidated Overview
|
||||||||||||||||
YTD
|
Prior YTD
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
5,929
|
$
|
6,348
|
$
|
(419
|
)
|
(7
|
)%
|
|||||||
Cost of goods sold
|
4,888
|
5,224
|
(336
|
)
|
(6
|
)%
|
||||||||||
Other operating expenses
|
676
|
613
|
63
|
10
|
%
|
|||||||||||
Operating income
|
$
|
365
|
$
|
511
|
$
|
(146
|
)
|
(29
|
)%
|
Consumer Packaging International
|
||||||||||||||||
YTD
|
Prior YTD
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
1,885
|
$
|
1,995
|
$
|
(110
|
)
|
(6
|
)%
|
|||||||
Operating income
|
$
|
34
|
$
|
121
|
$
|
(87
|
)
|
(72
|
)%
|
Consumer Packaging North America
|
||||||||||||||||
YTD
|
Prior YTD
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
1,451
|
$
|
1,537
|
$
|
(86
|
)
|
(6
|
)%
|
|||||||
Operating income
|
$
|
140
|
$
|
164
|
$
|
(24
|
)
|
(15
|
)%
|
Health, Hygiene & Specialties
|
||||||||||||||||
YTD
|
Prior YTD
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
1,248
|
$
|
1,340
|
$
|
(92
|
)
|
(7
|
)%
|
|||||||
Operating income
|
$
|
30
|
$
|
68
|
$
|
(38
|
)
|
(56
|
)%
|
Flexibles
|
||||||||||||||||
YTD
|
Prior YTD
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$
|
1,345
|
$
|
1,476
|
$
|
(131
|
)
|
(9
|
)%
|
|||||||
Operating income
|
$
|
161
|
$
|
158
|
$
|
3
|
2
|
%
|
March 30, 2024
|
April 1, 2023
|
|||||||
Cash flow from operating activities
|
$
|
—
|
$
|
168
|
||||
Additions to property, plant and equipment, net
|
(333
|
)
|
(385
|
)
|
||||
Free cash flow
|
$
|
(333
|
)
|
$
|
(217
|
)
|
Two Quarterly Periods Ended
|
||||
March 30, 2024
|
||||
Net sales
|
$
|
3,120
|
||
Gross profit
|
625
|
|||
Earnings from continuing operations
|
185
|
|||
Net income
|
$
|
185
|
March 30, 2024
|
September 30, 2023
|
|||||||
Assets
|
||||||||
Current assets
|
$
|
1,411
|
$
|
1,975
|
||||
Noncurrent assets
|
5,805
|
5,997
|
||||||
Liabilities
|
||||||||
Current liabilities
|
$
|
976
|
$
|
1,363
|
||||
Intercompany payable
|
874
|
754
|
||||||
Noncurrent liabilities
|
9,953
|
10,271
|
Fiscal Period
|
Total Number of
Shares Purchased
|
Average Price
Paid Per Share
|
Total Number of Shares
Purchased as Part of Publicly
Announced Programs
|
Dollar Value of Shares that
May Yet be Purchased Under
the Program (in millions) (a)
|
||||||||||||
January
|
63,682
|
$
|
65.97
|
63,682
|
$
|
431
|
||||||||||
February
|
672,644
|
58.27
|
672,644
|
391
|
||||||||||||
March
|
635,800
|
59.49
|
635,800
|
353
|
||||||||||||
Total
|
1,372,126
|
$
|
59.19
|
1,372,126
|
$
|
353
|
(a) |
All open market purchases during the quarter were made under the 2023 authorization from our board of directors.
|
Exhibit No.
|
Description of Exhibit
|
|
2.1+
|
RMT Transaction Agreement, dated February 6, 2024, by and among Berry Global Group, Inc., Treasure Holdco, Inc., Glatfelter Corporation, Treasure Merger
Sub I, Inc. and Treasure Merger Sub II, LLC (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on February 12, 2024).
|
|
2.2+
|
Separation and Distribution Agreement, dated February 6, 2024, by and among Berry Global Group, Inc., Treasure Holdco, Inc. and Glatfelter Corporation
(incorporated by reference to Exhibit 2.2 to the Company’s Current Report on Form 8-K filed on February 12, 2024).
|
|
3.1*
|
Amended and Restated Certificate of Incorporation of Berry Global Group, Inc., as amended through February 14, 2024.
|
|
Amended and Restated Bylaws of Berry Global Group, Inc., effective February 14, 2024 (incorporated by reference to Exhibit 3.2 to the Company’s Current
Report on Form 8-K filed on February 15, 2024).
|
||
Indenture, among Berry Global, Inc., certain guarantors party thereto, U.S. Bank Trust Company, National Association, as Trustee and Collateral Agent,
relating to the 5.650% First Priority Senior Secured Notes due 2034, dated January 17, 2024 (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on January 17, 2024).
|
||
Registration Rights Agreement, by and among Berry Global, Inc., Berry Global Group, Inc., each subsidiary of Berry Global, Inc. identified therein, and
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, on behalf of themselves and as representatives of the initial purchasers, relating to the 5.650% First Priority Senior Secured Notes due 2034, dated
January 17, 2024 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on January 17, 2024).
|
||
Tax Matters Agreement, dated February 6, 2024, by and among Berry Global Group, Inc., Treasure Holdco, Inc. and Glatfelter Corporation (incorporated by
reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 12, 2024).
|
||
Employee Matters Agreement, dated February 6, 2024, by and among Berry Global Group, Inc., Treasure Holdco, Inc. and Glatfelter Corporation
(incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on February 12, 2024).
|
||
22.1*
|
Subsidiary Guarantors.
|
|
31.1*
|
Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer.
|
|
31.2*
|
Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer.
|
|
32.1**
|
Section 1350 Certification of the Chief Executive Officer.
|
|
32.2**
|
Section 1350 Certification of the Chief Financial Officer.
|
|
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline
XBRL document).
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
104
|
Cover Page Interactive Date File (formatted as Inline XBRL and contained in Exhibit 101).
|
* |
Filed herewith
|
** |
Furnished herewith
|
+ |
Certain schedules (or similar attachments) have been omitted pursuant to Item 601(a)(5) or Item 601(b)(2) of Regulation S-K. The registrant agrees to furnish copies of
such schedules (or similar attachments) to the U.S. Securities and Exchange Commission upon request.
|
Berry Global Group, Inc.
|
|||
May 9, 2024
|
By:
|
/s/ Mark W. Miles
|
|
Mark W. Miles
|
|||
Chief Financial Officer
|
Description of Notes |
0.95% First Priority Senior Secured Notes due 2024 |
1.00% First Priority Senior Secured Notes due 2025 |
4.875% First Priority Senior Secured Notes due 2026 |
1.57% First Priority Senior Secured Notes due 2026 |
1.50% First Priority Senior Secured Notes due 2027 |
1.65% First Priority Senior Secured Notes due 2027 |
5.50% First Priority Senior Secured Notes due 2028 |
4.500% Second Priority Senior Secured Notes due 2026 |
5.625% Second Priority Senior Secured Notes due 2027 |
Name | Jurisdiction | Obligor Type |
AeroCon, LLC | Delaware | Guarantor |
AVINTIV Acquisition Corporation | Delaware | Guarantor |
AVINTIV Inc. | Delaware | Guarantor |
AVINTIV Specialty Materials Inc. | Delaware | Guarantor |
Berry Film Products Acquisition Company, Inc. | Delaware | Guarantor |
Berry Film Products Company, Inc. | Delaware | Guarantor |
Berry Global Films, LLC | Delaware | Guarantor |
Berry Global, Inc. | Delaware | Issuer |
Berry Plastics Acquisition Corporation V | Delaware | Guarantor |
Berry Plastics Acquisition Corporation XIV LLC | Delaware | Guarantor |
Berry Plastics Acquisition LLC X | Delaware | Guarantor |
Berry Plastics Design, LLC | Delaware | Guarantor |
Berry Plastics Escrow LLC | Delaware | Guarantor |
Berry Plastics Filmco, Inc. | Delaware | Guarantor |
Berry Plastics IK, LLC | Delaware | Guarantor |
Berry Plastics Opco, Inc. | Delaware | Guarantor |
Berry Plastics SP, Inc. | Delaware | Guarantor |
Berry Plastics Technical Services, Inc. | Delaware | Guarantor |
Berry Specialty Tapes, LLC | Delaware | Guarantor |
BPRex Closure Systems, LLC | Delaware | Guarantor |
BPRex Closures Kentucky Inc. | Delaware | Guarantor |
BPRex Closures, LLC | Delaware | Guarantor |
BPRex Delta Inc. | Delaware | Guarantor |
BPRex Healthcare Brookville Inc. | Delaware | Guarantor |
BPRex Healthcare Packaging, Inc. | Delaware | Guarantor |
BPRex Plastic Packaging, Inc. | Delaware | Guarantor |
BPRex Product Design and Engineering Inc. | Minnesota | Guarantor |
BPRex Specialty Products Puerto Rico Inc. | New Jersey | Guarantor |
Caplas LLC | Delaware | Guarantor |
Caplas Neptune, LLC | Delaware | Guarantor |
Captive Plastics, LLC | Delaware | Guarantor |
Cardinal Packaging, Inc. | Delaware | Guarantor |
Chicopee LLC | Delaware | Guarantor |
Chocksett Road Limited Partnership | Massachusetts | Guarantor |
Chocksett Road Realty Trust | Massachusetts | Guarantor |
Covalence Specialty Adhesives LLC | Delaware | Guarantor |
CPI Holding Corporation | Delaware | Guarantor |
Dominion Textile (USA), L.L.C. | Delaware | Guarantor |
Dumpling Rock, LLC | Massachusetts | Guarantor |
Estero Porch, LLC | Delaware | Guarantor |
Fabrene, L.L.C. | Delaware | Guarantor |
Fiberweb, LLC | Delaware | Guarantor |
Global Closure Systems America 1, Inc. | Delaware | Guarantor |
Grafco Industries Limited Partnership | Maryland | Guarantor |
Kerr Group, LLC | Delaware | Guarantor |
Knight Plastics, LLC | Delaware | Guarantor |
Laddawn, Inc. | Massachusetts | Guarantor |
Lamb’s Grove, LLC | Delaware | Guarantor |
Letica Corporation | Michigan | Guarantor |
Letica Resources, Inc. | Michigan | Guarantor |
M&H Plastics, Inc. | Virginia | Guarantor |
Millham, LLC | Delaware | Guarantor |
Old Hickory Steamworks, LLC | Delaware | Guarantor |
Packerware, LLC | Delaware | Guarantor |
PGI Europe LLC | Delaware | Guarantor |
PGI Polymer LLC | Delaware | Guarantor |
Pliant International, LLC | Delaware | Guarantor |
Pliant, LLC | Delaware | Guarantor |
Poly-Seal, LLC | Delaware | Guarantor |
Providencia USA, Inc. | North Carolina | Guarantor |
Rollpak Corporation | Delaware | Guarantor |
RPC Bramlage, Inc. | Pennsylvania | Guarantor |
RPC Leopard Holdings, Inc. | Delaware | Guarantor |
RPC Packaging Holdings (US), Inc. | Delaware | Guarantor |
RPC Superfos US, Inc. | Delaware | Guarantor |
RPC Zeller Plastik Libertyville, Inc. | Delaware | Guarantor |
Saffron Acquisition, LLC | Delaware | Guarantor |
Setco, LLC | Delaware | Guarantor |
Sugden, LLC | Delaware | Guarantor |
Sun Coast Industries, LLC | Delaware | Guarantor |
Tyco Acquisition Alpha LLC | Nevada | Guarantor |
Uniplast Holdings, LLC | Delaware | Guarantor |
Uniplast U.S., Inc. | Delaware | Guarantor |
Venture Packaging Midwest, Inc. | Delaware | Guarantor |
Venture Packaging, Inc. | Delaware | Guarantor |
Name | Country | State | Owned by | Percentage of Outstanding Shares/ Membership/ Partnership Interests | Percentage of Owned Interests Pledged |
AEP Canada Inc. | Canada | Berry Global Films, LLC | 100.00% | 65% | |
AeroCon, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Aspen Industrial S.A. de C.V. | Mexico | Pliant, LLC and Pliant Corporation International (1 share) | 100.00% | 65% | |
AVINTIV Inc. | USA | DE | Berry Global, Inc. | 100.00% | 100% |
AVINTIV Acquisition Corporation | USA | DE | AVINTIV Inc. | 100.00% | 100% |
AVINTIV Specialty Materials, Inc. | USA | DE | AVINTIV Acquisition Corporation | 100.00% | 100% |
Berry Film Products Acquisition Company, Inc. (f/k/a Clopay Plastic Products Acquisition Company, Inc.) | USA | DE | Berry Film Products Company, Inc. (f/k/a Clopay Plastic Products Company, Inc.) | 100.00% | 100% |
Berry Film Products Company, Inc. (f/k/a Clopay Plastic Products Company, Inc.) | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Global Films, LLC (f/k/a Berry Plastics Acquisition Corporation XV, LLC) | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Global International Financing Limited | UK | AVINTIV Inc. | 100.00% | 65% | |
Berry Global, Inc. (f/k/a Berry Plastics Corporation) | USA | DE | Berry Plastics Group, Inc. | 100.00% | 100% |
Berry Global German Holdings GmbH | Germany | Berry Global, Inc. | 100.00% | 65% | |
Berry Plastics Acquisition Corporation V | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Plastics Acquisition Corporation XIV, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Plastics Acquisition LLC X | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Plastics Canada, Inc. | Canada | Berry Global, Inc. | 100.00% | 65% | |
Berry Plastics de Mexico, S. de R.L. de C.V. | Mexico | Berry Plastics Acquisition Corporation V | 100.00% | 65% | |
Berry Plastics Design, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Plastics Escrow, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Plastics Filmco, Inc. | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Plastics IK, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Plastics International B.V. | Netherlands | Berry Global, Inc. | 100.00% | 65% | |
Berry Plastics Opco, Inc. | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Plastics SP, Inc. | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry Plastics Technical Services, Inc. | USA | DE | Venture Packaging, Inc. | 100.00% | 100% |
Berry Specialty Tapes, LLC (f/k/a Berry Plastics Acquisition Corporation XI) | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Berry UK Holdings Limited | UK | AVINTIV Inc. | 100.00% | 65% | |
BPRex Closure Systems, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
BPRex Closures Kentucky Inc. | USA | DE | Berry Global, Inc. | 100.00% | 100% |
BPRex Closures, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
BPRex de Mexico S.A. de R.L. de CV | Mexico | Berry Global, Inc. and Berry Plastics Acquisition LLC X (1 share) | 100.00% | 65% | |
BPRex Delta Inc. | USA | DE | Berry Global, Inc. | 100.00% | 100% |
BPRex Healthcare Brookville Inc. | USA | DE | BPRex Plastic Packaging, Inc. | 100.00% | 100% |
BPRex Healthcare Packaging, Inc. | USA | DE | BPRex Plastic Packaging, Inc. | 100.00% | 100% |
BPRex Plastic Packaging de Mexico S.A. de C.V. | Mexico | Berry Global, Inc. | 50.00% | 65%1 | |
BPRex Plastic Packaging de Mexico S.A. de C.V. | Mexico | BPRex Healthcare Packaging, Inc. | 50.00% | ||
BPRex Plastic Packaging, Inc. | USA | DE | Berry Global, Inc. | 100.00% | 100% |
BPRex Product Design & Engineering Inc. | USA | MN | BPRex Healthcare Brookville, Inc. | 100.00% | 100% |
BPRex Specialty Products Puerto Rico Inc. | USA | NJ | BPRex Plastic Packaging, Inc. | 100.00% | 100% |
Caplas LLC | USA | DE | Captive Plastics LLC | 100.00% | 100% |
Caplas Neptune, LLC | USA | DE | Captive Plastics LLC | 100.00% | 100% |
Captive Plastics, LLC | USA | DE | Berry Plastics SP, Inc. | 100.00% | 100% |
Cardinal Packaging, Inc. | USA | DE | CPI Holding Corporation | 100.00% | 100% |
Chicopee Asia, Limited | Hong Kong | Chicopee, Inc. | 100.00% | 65% | |
Chicopee Holdings B.V. | Netherlands | PGI Europe LLC | 100.00% | 65% | |
Chicopee LLC | USA | DE | PGI Polymer, Inc. | 100.00% | 100% |
Chocksett Road Limited Partnership | USA | MA | Berry Global, Inc. | 98% Limited Partnership Interests 2% General Partnership Interests | 100% |
Chocksett Road Realty Trust | USA | MA | Chocksett Road Limited Partnership | Sole Beneficiary | 100% |
Berry Holding Company do Brasil Ltda. | Brazil | Berry Film Products Company, Inc. (f/k/a Clopay Plastic Products Company, Inc.) | 99.99% | 65%2 | |
Berry Holding Company do Brasil Ltda. | Brazil | Berry Global, Inc. | 0.01% | ||
Covalence Specialty Adhesives LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
CPI Holding Corporation | USA | DE | Berry Global, Inc. | 100.00% | 100% |
CSM Mexico SPV LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Dominion Textile (USA), L.L.C. | USA | DE | Chicopee, Inc. | 100.00% | 100% |
Dumpling Rock, LLC | USA | MA | Berry Global, Inc. | 100.00% | 100% |
Estero Porch, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Fabrene, Inc. | Canada | AVINTIV Inc. | 100.00% | 65% | |
Fabrene, L.L.C. | USA | DE | PGI Europe LLC | 100.00% | 100% |
Fiberweb, LLC f/k/a Fiberweb, Inc. | USA | DE | PGI Europe LLC | 100.00% | 100% |
Fiberweb Holdings Ltd. | UK | PGI Europe LLC | 100.00% | 65% | |
Global Closure Systems America 1, Inc. | USA | DE | RPC Packaging Holdings (US), Inc. | 100.00% | 100% |
Grafco Industries Limited Partnership | USA | MD | Caplas LLC | 99.00% | 100% |
Grafco Industries Limited Partnership | USA | MD | Caplas Neptune, LLC | 1.00% | 100% |
Grupo de Servicios Berpla, S. de R.L. de C.V. | Mexico | Berry Plastics Acquisition Corporation V | 65.00% | 65% | |
Grupo de Servicios Berpla, S. de R.L. de C.V. | Mexico | Berry Plastics Acquisition Corporation XIV | 35.00% | 65% | |
Kerr Group, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Knight Plastics, LLC | USA | DE | Berry Plastics SP, Inc. | 100.00% | 100% |
Laddawn, Inc. | USA | MA | Berry Global, Inc. | 100.00% | 100% |
Lamb’s Grove, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Letica Corporation | USA | DE | RPC Leopard Holdings, Inc. | 100.00% | 100% |
Letica Resources, Inc. | USA | DE | RPC Leopard Holdings, Inc. | 100.00% | 100% |
M&H Plastics, Inc. | USA | VA | AVINTIV Inc. | 100.00% | 100% |
Millham, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Old Hickory Steamworks, LLC | USA | DE | Fiberweb, LLC | 100.00% | 100% |
Packerware, LLC | USA | DE | Berry Plastics SP, Inc. | 100.00% | 100% |
PGI Acquisition Limited | UK | PGI Europe LLC | 100.00% | 65% | |
PGI Europe LLC | USA | DE | Chicopee, Inc. | 100.00% | 100% |
PGI Nonwovens (Mauritius) | Mauritius | PGI Polymer, Inc. | 100.00% | 65% | |
PGI Polymer LLC | USA | DE | Avintiv Specialty Materials, Inc. | 100.00% | 100% |
PGI Spain SLU | Spain | PGI Europe LLC | 100.00% | 65% | |
Pliant de Mexico S.A. de C.V. | Mexico | Pliant, LLC | 36.03% | 65% | |
Pliant International, LLC | USA | DE | Pliant, LLC | 100.00% | 100% |
Pliant, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Poly-Seal, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Providencia USA, Inc. | USA | NC | Chicopee, Inc. | 100.00% | 100% |
Rollpak Corporation | USA | DE | Berry Global, Inc. | 100.00% | 100% |
RPC Bramlage, Inc. | USA | PA | RPC Packaging Holdings (US), Inc. | 100.00% | 100% |
RPC Leopard Holdings, Inc. | USA | DE | RPC Packaging Holdings (US), Inc. | 100.00% | 100% |
RPC Packaging Holdings (US), Inc. | USA | DE | AVINTIV Inc. | 100.00% | 100% |
RPC Superfos US, Inc. | USA | DE | RPC Packaging Holdings (US), Inc. | 100.00% | 100% |
RPC Zeller Plastik Libertyville, Inc. | USA | DE | Global Closure Systems America 1, Inc. | 100.00% | 100% |
Saffron Acquisition, LLC | USA | DE | Kerr Group, LLC | 100.00% | 100% |
Setco, LLC | USA | DE | Kerr Group, LLC | 100.00% | 100% |
Sugden, LLC | USA | DE | Berry Global, Inc. | 100.00% | 100% |
Sun Coast Industries, LLC | USA | DE | Saffron Acquisition, LLC | 100.00% | 100% |
Uniplast Holdings, LLC | USA | DE | Pliant, LLC | 100.00% | 100% |
Uniplast U.S., Inc. | USA | DE | Uniplast Holdings, Inc. | 100.00% | 100% |
Venture Packaging Midwest, Inc. | USA | DE | Venture Packaging, Inc. | 100.00% | 100% |
Venture Packaging, Inc. | USA | DE | Berry Global, Inc. | 100.00% | 100% |
1 | 65% of the aggregate stock of BPRex Plastic Packaging de Mexico S.A. de C.V. is pledged. |
2 | 65% of the aggregate stock of Berry Holding Company do Brasil Ltda. is pledged. |
1. | I have reviewed this quarterly report on Form 10-Q of Berry Global Group, Inc. (the "Registrant"); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. |
By: | /s/ Kevin Kwilinski | ||
Date: May 9, 2024 | Kevin Kwilinski | ||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Berry Global Group, Inc. (the "Registrant"); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. |
By: | /s/ Mark W. Miles | ||
Date: May 9, 2024 | Mark W. Miles | ||
Chief Financial Officer |
/s/ Kevin Kwilinski | |
Kevin Kwilinski | |
Chief Executive Officer |
/s/ Mark W. Miles | |
Mark W. Miles | |
Chief Financial Officer |
Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Consolidated Statements of Income [Abstract] | ||||
Net sales | $ 3,076 | $ 3,288 | $ 5,929 | $ 6,348 |
Costs and expenses: | ||||
Cost of goods sold | 2,509 | 2,682 | 4,888 | 5,224 |
Selling, general and administrative | 213 | 220 | 448 | 456 |
Amortization of intangibles | 59 | 60 | 119 | 120 |
Restructuring and transaction activities | 87 | 25 | 109 | 37 |
Operating income | 208 | 301 | 365 | 511 |
Other expense | 1 | 1 | 13 | 2 |
Interest expense | 76 | 79 | 148 | 150 |
Income before income taxes | 131 | 221 | 204 | 359 |
Income tax expense | 15 | 47 | 29 | 79 |
Net income | $ 116 | $ 174 | $ 175 | $ 280 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1 | $ 1.44 | $ 1.51 | $ 2.29 |
Diluted (in dollars per share) | $ 0.98 | $ 1.42 | $ 1.48 | $ 2.27 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 116 | $ 174 | $ 175 | $ 280 |
Other comprehensive income (loss), net of tax: | ||||
Currency translation | (70) | 60 | 69 | 201 |
Derivative instruments | 18 | (31) | (59) | (32) |
Other comprehensive income | (52) | 29 | 10 | 169 |
Comprehensive income (loss) | $ 64 | $ 203 | $ 185 | $ 449 |
Consolidated Balance Sheets (Parenthetical) - shares shares in Millions |
Mar. 30, 2024 |
Sep. 30, 2023 |
---|---|---|
Stockholders' equity: | ||
Common stock, shares issued (in shares) | 114.9 | 115.5 |
Basis of Presentation |
6 Months Ended |
---|---|
Mar. 30, 2024 | |
Basis of Presentation [Abstract] | |
Basis of Presentation |
1. Basis of Presentation
The accompanying unaudited Consolidated Financial Statements of Berry Global Group, Inc. (“the Company,” “we,” or “Berry”) have been prepared in accordance with accounting
principles generally accepted in the United States (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim reporting. Accordingly, they do not include all of the information and footnotes
required by GAAP for complete financial statements.
In preparing financial statements in
conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments
(consisting of normal recurring adjustments) considered necessary for a fair presentation have been included, and all subsequent events up to the time of the filing have been evaluated. For further information, refer to the Company’s most recent Form
10-K filed with the SEC.
|
Revenue and Accounts Receivable |
6 Months Ended |
---|---|
Mar. 30, 2024 | |
Revenue and Accounts Receivable [Abstract] | |
Revenue |
2. Revenue and Accounts Receivable
Our revenues are primarily derived from the sale of non-woven, flexible and rigid products to customers. Revenue is recognized when
performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled. We consider the promise to transfer products to be our sole performance obligation. If the consideration agreed to in a
contract includes a variable amount, we estimate the amount of consideration we expect to be entitled to in exchange for transferring the promised goods to the customer using
the most likely amount method. Our main source of variable consideration is customer rebates. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Generally, our revenue is
recognized at a point in time for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. The accrual for customer rebates was $96 million and $106 million at March 30, 2024 and September 30, 2023, respectively, and is included in Other
current liabilities on the Consolidated Balance Sheets. The Company disaggregates revenue based on reportable business segment, geography, and significant product line. Refer to Note 8. Income Taxes for further information.
|
Accounts Receivable |
Accounts receivable are presented net of allowance for credit losses of $19
million at March 30, 2024 and September 30, 2023. The Company records its current expected credit losses based on a variety of factors including historical loss experience and current customer financial condition. The changes to our current expected credit losses, write-off
activity, and recoveries were not material for any of the periods presented.
The Company has entered into various factoring agreements, including customer-based supply chain financing programs, to sell certain
receivables to third-party financial institutions. Agreements which result in true sales of the transferred receivables, which occur when receivables are transferred without recourse to the Company, are reflected as a reduction of accounts receivable
on the Consolidated Balance Sheets and the proceeds are included in the Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows. The fees associated with the transfer of receivables for all programs were not material for any
of the periods presented.
|
Divestitures and Spin-off |
6 Months Ended |
---|---|
Mar. 30, 2024 | |
Divestitures and Spin-off [Abstract] | |
Divestitures and Spin-off |
3. Divestitures and Spin-off
During fiscal 2024, the Company completed the sale of its Strata and Promens Vehicles businesses, which were operated in the Consumer Packaging International
segment for net proceeds of $25 million and $22
million, respectively. In fiscal 2023, the Strata business recorded net sales of $56 million and Promens Vehicles recorded $111 million.
In February 2024, the Company announced plans for a spin-off and merger of our Health, Hygiene & Specialties Global Nonwovens and Films business (“HHNF”)
with Glatfelter Corporation (“GLT”). Upon the completion of the transaction, shareholders of Berry will own approximately ninety percent of the
new combined company in addition to their continuing interest in Berry. The transaction is expected to be tax-free to Berry and its shareholders. The transaction is subject to certain customary closing conditions including, but not limited to,
approval by GLT shareholders, the effective filing of related registration statements, completion of a tax-free spin-off and receipt of certain required foreign anti-trust approvals.
|
Restructuring and Transaction Activities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Transaction Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Transaction Activities |
4. Restructuring and Transaction Activities
During fiscal 2023, the Company announced several plant rationalizations in all four segments in order to deliver cost savings and optimize equipment utilization. Over the duration of the plan, these plant rationalizations and other cost reduction actions are projected to
cost approximately $250 million with the operations savings intended to counter general economic softness. The plant rationalizations are
expected to be fully implemented by the end of fiscal 2025.
The table below includes the significant components of our restructuring and transaction activities, by reporting segment:
(a) Excludes $57
million loss on divestitures (See Note 3)
The table below sets forth the activity with respect to the restructuring and transaction activities accrual at March 30, 2024:
|
Leases |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
5. Leases
The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles.
Supplemental lease information is as follows:
|
Long-Term Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
6. Long-Term Debt
Long-term debt consists of the following:
During fiscal 2024, the Company extended the maturity date of $1,550
million of its outstanding term loans to July 2029, and subsequently issued $800 million aggregate principal amount of 5.65% first priority senior secured notes due 2034. The proceeds were used to prepay the 0.95% First Priority Senior Secured Notes due in
and a portion of the
existing term loan due in July 2026.Debt discounts and deferred financing fees are presented net of Long-term debt,
less the current portion on the Consolidated Balance Sheets and are amortized to Interest expense, net on the Consolidated Statements of Income through maturity.
|
Financial Instruments and Fair Value Measurements |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Financial Instruments and Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements |
7. Financial Instruments and Fair Value Measurements
In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. The Company may use derivative
financial instruments to help manage market risk and reduce the exposure to fluctuations in interest rates and foreign currencies. These financial instruments are not used for trading or other speculative purposes.
Cross-Currency Swaps
The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk. The swap agreements mature June 2024 (€1,625 million) and July 2027 (£700 million). In
addition to cross-currency swaps, we hedge a portion of our foreign currency risk by designating foreign currency denominated long-term debt as net investment hedges of certain foreign operations. As of March 30, 2024, we had outstanding long-term debt of €379 million that
was designated as a hedge of our net investment in certain euro-denominated foreign subsidiaries. When valuing cross-currency swaps the Company utilizes Level 2 inputs (substantially observable).
Interest Rate Swaps
The primary purpose of the Company’s interest rate swap activities is to manage interest expense variability associated with our outstanding variable rate term loan debt. When valuing interest rate swaps the Company utilizes Level 2 inputs (substantially observable).
During fiscal 2024, the Company received net proceeds of $23
million related to the settlement of existing interest rate swaps. The offset is included in Accumulated other comprehensive loss and is being amortized to Interest expense through the term of the original swaps. Following the transactions, the
Company entered into a $450 million interest rate swap transaction, a $500 million interest rate swap transaction and extended an existing $400 million
agreement all with expirations in June 2029.
As of March 30, 2024, the Company effectively had
(i) an $884 million interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 4.452%, with an expiration
in June 2026 (ii) a $400 million
interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 4.008%, with an expiration in June 2029 (iii) a $450 million interest rate swap transaction that swaps a one-month
variable SOFR contract for a fixed annual rate of 4.553%, with an expiration in June 2029, and (iv) a $500 million interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 4.648%,
with an expiration in June 2029.
The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for
which a master netting arrangement is utilized. Balances on a gross basis are as follows:
The effect of the Company’s derivative instruments on the Consolidated Statements of Income is as follows:
Non-recurring Fair Value Measurements
The Company has certain assets that are measured at fair value on a non-recurring basis when impairment indicators are present or when the Company completes an
acquisition. The Company adjusts certain long-lived assets to fair value only when the carrying values exceed the fair values. The categorization of the framework used to value the assets is considered Level 3, due to the subjective nature of the
unobservable inputs used to determine the fair value. These assets that are subject to our annual impairment analysis primarily include our definite lived and indefinite lived intangible assets, including Goodwill and our property, plant and
equipment. The Company reviews Goodwill and other indefinite lived assets for impairment as of the first day of the fourth fiscal quarter each year and more frequently if impairment indicators exist. The Company determined Goodwill and other
indefinite lived assets were not impaired in our annual fiscal 2023 assessment. No impairment indicators were identified in the current
quarter.
Included in the following table are the major categories of assets measured at fair value on a non-recurring basis as of March 30, 2024 and September 30, 2023, along
with the impairment loss recognized on the fair value measurement during the period:
The Company’s financial instruments consist primarily of cash and cash equivalents,
long-term debt, interest rate and cross-currency swap agreements, and finance lease obligations. The book value of our marketable long-term indebtedness exceeded fair value by $221 million as of March 30, 2024.
The Company’s long-term debt fair values were determined using Level 2 inputs (substantially observable).
|
Income Taxes |
6 Months Ended |
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Mar. 30, 2024 | |
Income Taxes [Abstract] | |
Income Taxes |
8. Income Taxes
On a year-to-date comparison to the statutory rate, the lower effective tax rate was positively impacted by share-based stock compensation, foreign rate
differential, and other discrete items.
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Segment and Geographic Data |
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Segment and Geographic Data [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographic Data |
9. Segment and Geographic Data
The Company’s operations are organized into four
reporting segments: Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Flexibles. The structure is designed to align
us with our customers, provide optimal service, drive future growth, and to facilitate synergies realization.
Selected information by reportable segment is presented in the following tables:
Selected information by geographical region is presented in the following tables:
|
Contingencies and Commitments |
6 Months Ended |
---|---|
Mar. 30, 2024 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments |
10. Contingencies and Commitments
The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company’s legal and financial
liability with respect to such proceedings cannot be estimated with certainty, we believe that any ultimate liability would not be material to our financial position, results of operations or cash flows.
The Company has various purchase commitments for raw materials, supplies, and property and equipment incidental to the ordinary conduct of business.
|
Basic and Diluted Earnings Per Share |
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Basic and Diluted Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share |
11.
Basic and Diluted Earnings Per Share
Basic net income or earnings per share ("EPS") is calculated by dividing the net income attributable to common stockholders by the weighted-average number of
common shares outstanding during the period, without consideration for common stock equivalents.
Diluted EPS includes the effects of options and restricted stock units, if dilutive.
The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations:
2.2 million and 2.3 million shares were excluded from the diluted EPS calculation for the quarterly and two quarterly periods ended March 30, 2024 as their effect would be anti-dilutive.
1.2 million and 2.6 million shares
were excluded for the quarterly and two quarterly periods ended April 1, 2023.
|
Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss |
12. Accumulated Other Comprehensive Loss
The components and activity of Accumulated other comprehensive loss are as follows:
|
Insider Trading Arrangements |
3 Months Ended |
---|---|
Mar. 30, 2024 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
6 Months Ended |
---|---|
Mar. 30, 2024 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying unaudited Consolidated Financial Statements of Berry Global Group, Inc. (“the Company,” “we,” or “Berry”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Use of Estimates | In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. |
Restructuring and Transaction Activities (Tables) |
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Restructuring and Transaction Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Transaction Activity Charges |
The table below includes the significant components of our restructuring and transaction activities, by reporting segment:
(a) Excludes $57
million loss on divestitures (See Note 3)
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Restructuring Accrual Activity |
The table below sets forth the activity with respect to the restructuring and transaction activities accrual at March 30, 2024:
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Assets and Liabilities |
Supplemental lease information is as follows:
|
Long-Term Debt (Tables) |
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Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
Long-term debt consists of the following:
|
Financial Instruments and Fair Value Measurements (Tables) |
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Financial Instruments and Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivatives and Location on Consolidated Balance Sheets |
The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for
which a master netting arrangement is utilized. Balances on a gross basis are as follows:
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Effect of Derivatives on Consolidated Statements of Income |
The effect of the Company’s derivative instruments on the Consolidated Statements of Income is as follows:
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Assets Measured at Fair Value on Non-recurring Basis |
Included in the following table are the major categories of assets measured at fair value on a non-recurring basis as of March 30, 2024 and September 30, 2023, along
with the impairment loss recognized on the fair value measurement during the period:
The Company’s financial instruments consist primarily of cash and cash equivalents,
long-term debt, interest rate and cross-currency swap agreements, and finance lease obligations. The book value of our marketable long-term indebtedness exceeded fair value by $221 million as of March 30, 2024.
The Company’s long-term debt fair values were determined using Level 2 inputs (substantially observable).
8. Income Taxes
On a year-to-date comparison to the statutory rate, the lower effective tax rate was positively impacted by share-based stock compensation, foreign rate
differential, and other discrete items.
9. Segment and Geographic Data
The Company’s operations are organized into four
reporting segments: Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Flexibles. The structure is designed to align
us with our customers, provide optimal service, drive future growth, and to facilitate synergies realization.
Selected information by reportable segment is presented in the following tables:
Selected information by geographical region is presented in the following tables:
10. Contingencies and Commitments
The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company’s legal and financial
liability with respect to such proceedings cannot be estimated with certainty, we believe that any ultimate liability would not be material to our financial position, results of operations or cash flows.
The Company has various purchase commitments for raw materials, supplies, and property and equipment incidental to the ordinary conduct of business.
11.
Basic and Diluted Earnings Per Share
Basic net income or earnings per share ("EPS") is calculated by dividing the net income attributable to common stockholders by the weighted-average number of
common shares outstanding during the period, without consideration for common stock equivalents.
Diluted EPS includes the effects of options and restricted stock units, if dilutive.
The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations:
2.2 million and 2.3 million shares were excluded from the diluted EPS calculation for the quarterly and two quarterly periods ended March 30, 2024 as their effect would be anti-dilutive.
1.2 million and 2.6 million shares
were excluded for the quarterly and two quarterly periods ended April 1, 2023.
12. Accumulated Other Comprehensive Loss
The components and activity of Accumulated other comprehensive loss are as follows:
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Executive Summary
Business. The Company’s operations
are organized into four operating segments: Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Flexibles. The structure is designed to align us with our customers, provide improved service, drive
future growth, and to facilitate synergies realization. The Consumer Packaging International segment primarily consists of closures and dispensing systems, pharmaceutical devices and packaging, bottles and canisters, and containers. The Consumer
Packaging North America segment primarily consists of containers and pails, foodservice, closures, bottles, prescription vials, and tubes. The Health, Hygiene & Specialties segment primarily consists of healthcare, hygiene, specialties, and
tapes. The Flexibles segment primarily consists of stretch and shrink films, converter films, institutional can liners, food and consumer films, retail bags, and agriculture films.
Raw Material Trends. Our primary raw material is polymer resin. In addition, we use other materials such as colorants, linerboard, and packaging materials in various
manufacturing processes. While temporary industry-wide shortages of raw materials have occurred, we have historically been able to manage the supply chain disruption by working closely with our suppliers and customers. Changes in the price of raw
materials are generally passed on to customers through contractual price mechanisms over time, during contract renewals and other means.
Outlook. The Company is affected by general economic and industrial growth, raw material availability, cost inflation, supply chain disruptions, and general industrial production. Our business has both
geographic and end market diversity, which reduces the effect of any one of these factors on our overall performance. Our results are affected by our ability to pass through raw material and other cost changes to our customers, improve manufacturing
productivity, and adapt to volume changes of our customers. Despite global macro-economic challenges in the short-term attributed to continued rising inflation and general market softness, we continue to believe our underlying long-term fundamentals in
all divisions remain strong. For fiscal 2024, we project cash flow from operations between $1.35 to $1.45 billion and free cash flow between
$800 to $900 million. Projected fiscal 2024 free cash flow assumes $550 million of capital spending. For the calculation of free cash flow
and further information related to free cash flow as a non-GAAP financial measure, see “Liquidity and Capital Resources.”
Results of Operations
Comparison of the Quarterly Period Ended March 30, 2024 (the “Quarter”) and the Quarterly Period Ended April 1, 2023 (the “Prior Quarter”)
Business integration expenses consist of restructuring and impairment charges, divestiture related costs, and other business optimization
costs. Tables present dollars in millions.
Net Sales: The net sales decline is primarily attributed to decreased selling prices of $153 million due to the pass through of lower polymer costs and a 2% volume decline partially offset by a favorable impact from foreign
currency changes. The volume decline is primarily attributed to continued general market softness.
Cost of goods sold: The cost of goods sold decrease is
primarily attributed to lower raw material prices and the volume decline, partially offset by foreign currency changes.
Other operating expenses: The other operating expenses increase is primarily attributed to a $57 million loss from divestitures.
Operating Income: The operating income decrease is primarily attributed to a $15 million unfavorable impact from the volume decline, a $57 million loss from divestitures, a $15 million increase in depreciation and amortization expense and a $10 million unfavorable
impact from price cost spread.
Net sales: The net sales decline in the Consumer Packaging International segment is primarily attributed to decreased selling prices of $75 million and a $20 million decline from divestures in the quarter.
Operating income: The operating income decrease is primarily attributed to a $57 million loss from divestitures, an increase in depreciation and amortization expense.
Net sales: The net sales decline in the Consumer Packaging North America segment is primarily attributed to a 3% volume decline from continued general market softness and decreased selling prices of $11 million, partially offset by acquisition sales of $12 million.
Operating income: The operating income decrease is primarily attributed to a $12 million unfavorable impact from price cost spread and an unfavorable impact from the volume decline partially offset by earnings
from acquisition.
Net sales: The net sales decline in the Health, Hygiene
& Specialties segment is primarily attributed to decreased selling prices of $25 million and a 2% volume decline, partially offset by a favorable impact from foreign
currency changes.
Operating income: The operating income decrease is primarily attributed to a slightly unfavorable impact from price cost spread.
Net sales: The net sales decline in the Flexibles
segment is primarily attributed to decreased selling prices of $41 million and a 4% volume decline in our North American transportation and shrink film markets.
Operating income: The operating income decrease is primarily attributed to the unfavorable impact from lower volumes and an increase in depreciation and amortization expense, partially offset by a favorable impact
from price cost spread.
Changes in Comprehensive Income
The $139 million decline in comprehensive income from the Prior Quarter is primarily attributed to a $130 million unfavorable change in currency translation and a $49 million favorable change in the fair
value of derivative instruments, net of tax, partially offset by a $58 million decline in net income. Currency translation changes are primarily related to non-U.S. subsidiaries with a functional currency other than the U.S. dollar whereby assets and liabilities are
translated from the respective functional currency into U.S. dollars using period-end exchange rates. The change in currency translation in the Quarter was primarily attributed to locations utilizing the Euro and British pound sterling as their
functional currency. As part of the overall risk management, the Company uses derivative instruments to (i) reduce our exposure to changes in interest rates attributed to the Company’s borrowings and (ii) reduce foreign currency exposure to
translation of certain foreign operations. The Company records changes to the fair value of these instruments in Accumulated other comprehensive loss. The change in fair value of these instruments in fiscal 2024 versus fiscal 2023 is primarily attributed to the change in the
forward interest and foreign exchange curves between measurement dates.
Comparison of the Two Quarterly Periods Ended March 30, 2024 (the “YTD”) and the Two Quarterly Periods Ended April 1, 2023 (the “Prior YTD”)
Business integration expenses consist of restructuring and impairment charges, divestiture related costs, and other business optimization
costs. Tables present dollars in millions.
Net Sales: The net sales decline is primarily attributed to decreased selling prices of $342 million due to the pass through of lower polymer costs and a 3% volume decline partially offset by a $92 million favorable impact from
foreign currency changes. The volume decline is primarily attributed to continued general market softness.
Cost of goods sold: The cost of goods sold decrease is
primarily attributed to lower raw material prices and the volume decline, partially offset by foreign currency changes.
Other operating expenses: The other operating expenses increase is primarily attributed to a $57 million loss from divestitures and costs associated with the announced spin-off and merger of our Health, Hygiene &
Specialties Global Nonwovens and Films business with Glatfelter.
Operating Income: The operating income decrease is primarily attributed to a $31 million unfavorable impact from the volume decline, a $57 million loss from divestitures, a $28 million increase in depreciation and amortization expense, a $27 million unfavorable
impact from price cost spread and a $13 million unfavorable impact from hyperinflation in our Argentinian subsidiary, partially offset by a $14 million favorable impact from
foreign currency changes.
Net sales: The net sales decline in the Consumer Packaging International segment is primarily attributed to decreased selling prices of $106 million, a 3% volume decline and a $20 million decline from divestures in the YTD partially offset by a $55 million favorable impact from foreign currency changes.
Operating income: The operating income decrease is primarily attributed to a $57 million loss from divestitures, an $11 million increase in depreciation and amortization expense, an $11 million unfavorable impact
from price cost spread and unfavorable impact from the volume decline, partially offset by an $8 million favorable impact from foreign currency changes.
Net sales: The net sales decline in the Consumer Packaging North America segment is primarily attributed to decreased selling prices of $57 million and a 3% volume decline from general market softness, partially offset
by acquisition sales of $23 million.
Operating income: The operating income decrease is primarily attributed to a $14 million unfavorable impact from price cost spread, an $11 million unfavorable impact from the volume decline and an increase in
depreciation and amortization expense, partially offset by earnings from acquisition.
Net sales: The net sales decline in the Health, Hygiene
& Specialties segment is primarily attributed to decreased selling prices of $89 million and a 2% volume decline from softness in our hygiene and specialty markets, partially
offset by a $25 million favorable impact from foreign currency changes.
Operating income: The operating income decrease is primarily attributed to a $16 million unfavorable impact from price cost spread, a $13 million unfavorable impact from hyperinflation in our Argentinian
subsidiary, and a $9 million increase in business optimization expense related to both plant rationalizations and costs associated with the announced spin-off and merger of our Health, Hygiene & Specialties Global Nonwovens and Films business with
Glatfelter.
Net sales: The net sales decline in the Flexibles
segment is primarily attributed to decreased selling prices of $90 million and a 4% volume decline, partially offset by a favorable impact from foreign currency changes.
Operating income: The operating income increase is primarily attributed to a $14 million favorable impact from price cost spread partially offset by a $10 million unfavorable impact from lower volumes.
Changes in Comprehensive Income
The $264 million decline in comprehensive income from the Prior YTD was primarily attributed to a $132 million unfavorable change in currency translation, a $27 million unfavorable change in the fair
value of derivative instruments, net of tax, and a $105 million decline in net income. Currency translation changes are primarily related to non-U.S. subsidiaries with a functional currency other than the U.S. dollar whereby assets and liabilities are
translated from the respective functional currency into U.S. dollars using period-end exchange rates. The change in currency translation in the YTD was primarily attributed to locations utilizing the Euro and British pound sterling as their functional
currency. As part of the overall risk management, the Company uses derivative instruments to (i) reduce our exposure to changes in interest rates attributed to the Company’s borrowings and (ii) reduce foreign currency exposure to translation of
certain foreign operations. The Company records changes to the fair value of these instruments in Accumulated other comprehensive loss. The change in fair value of these instruments in fiscal 2024 versus fiscal 2023 is primarily attributed to the change in the forward
interest and foreign exchange curves between measurement dates.
Liquidity and Capital Resources
Senior Secured Credit Facility
We manage our global cash requirements considering (i) available funds among the many subsidiaries through which we conduct business, (ii) the geographic
location of our liquidity needs, and (iii) the cost to access international cash balances. At the end of the Quarter, the Company had no
outstanding balance on its $1,000 million asset-based revolving line of credit that matures in June 2028. The Company was in compliance with all
covenants at the end of the Quarter.
Cash Flows
Net cash from operating activities decreased $168
million from the Prior YTD primarily attributed to higher working capital.
Net cash used in investing activities decreased
$187 million from the Prior YTD primarily attributed to the acquisition of Pro-Western in the Prior YTD compared to the proceeds from business divestitures in the YTD.
Net cash used in financing activities decreased $16 million from the Prior YTD primarily attributed to higher repayments of long-term debt in the YTD, partially offset by lower share repurchases.
Dividend Payments
The Company declared and paid a cash dividend of $0.2755 per share during each of the first fiscal quarter ended December 30, 2023, and the second fiscal
quarter ended March 30, 2024.
Share Repurchases
YTD fiscal 2024, the Company repurchased
approximately 1.5 million shares for $88
million. Authorized share repurchases of $353 million remain available to the Company.
Free Cash Flow
Our consolidated free cash flow for the YTD and Prior YTD are summarized as follows:
We use free cash flow as a supplemental measure of liquidity as it assists us in assessing our ability to fund growth through generation of cash. Free cash
flow may be calculated differently by other companies, including other companies in our industry or peer group, limiting its usefulness on a comparative basis. Free cash flow is not a financial measure presented in accordance with generally accepted
accounting principles ("GAAP") and should not be considered as an alternative to any other measure determined in accordance with GAAP.
Liquidity Outlook
At March 30, 2024, our cash balance was $494 million, which was primarily located outside the U.S. We believe our existing U.S. based cash and cash flow from U.S. operations, together with
available borrowings under our senior secured credit facilities, will be adequate to meet our short-term and long-term liquidity needs with the exception of funds needed to cover all long-term debt obligations, which we intend to refinance prior to
maturity. The Company has the ability to repatriate the cash located outside the U.S. to the extent not needed to meet operational and capital needs without significant restrictions.
Summarized Guarantor Financial Information
Berry Global, Inc. (“Issuer”) has notes outstanding which are fully, jointly, severally, and unconditionally guaranteed by its parent, Berry Global Group, Inc.
(for purposes of this section, “Parent”) and substantially all of Issuer’s domestic subsidiaries. Separate narrative information or financial statements of the guarantor subsidiaries have not been included because they are 100% owned by Parent and the
guarantor subsidiaries unconditionally guarantee such debt on a joint and several basis. A guarantee of a guarantor subsidiary of the securities will terminate upon the following customary circumstances: the sale of the capital stock of such guarantor
if such sale complies with the indentures, the designation of such guarantor as an unrestricted subsidiary, the defeasance or discharge of the indenture or in the case of a restricted subsidiary that is required to guarantee after the relevant issuance
date, if such guarantor no longer guarantees certain other indebtedness of Issuer. The guarantees of the guarantor subsidiaries are also limited as necessary to prevent them from constituting a fraudulent conveyance under applicable law and any
guarantees guaranteeing subordinated debt are subordinated to certain other of the Company’s debts. Parent also guarantees Issuer’s term loans and revolving credit facilities. The guarantor subsidiaries guarantee our term loans and are co-borrowers
under our revolving credit facility.
Presented below is summarized financial information for the Parent, Issuer and guarantor subsidiaries on a combined basis, after intercompany transactions have
been eliminated.
Includes $2 million of income associated with
intercompany activity with non-guarantor subsidiaries.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Interest Rate Risk
We are exposed to market risk from changes in interest rates primarily through our senior secured credit facilities and accounts receivable supply chain finance
factoring programs. Our senior secured credit facilities are comprised of (i) $2.3 billion term loans and (ii) a $1.0 billion revolving credit facility with no
borrowings outstanding. Borrowings under our senior secured credit facilities bear interest at a rate equal to an applicable margin plus SOFR. The applicable margin for SOFR rate borrowings under the revolving credit facility ranges from 1.25% to 1.50%, and the margin for the term
loans is 1.75% per annum. As of period end, the SOFR rate of approximately 5.34% was applicable to the term loans. A change of 0.25% on these floating interest rate exposures would increase our annual interest expense by approximately $1 million.
We seek to minimize interest rate volatility risk through regular operating and financing activities and, when deemed appropriate, through the use of derivative
financial instruments. These financial instruments are not used for trading or other speculative purposes. (See Note 7.)
Foreign Currency Risk
As a global company, we face foreign currency risk exposure from fluctuating currency exchange rates, primarily the U.S. dollar against the euro, British pound
sterling, Brazilian real, Chinese renminbi, Canadian dollar and Mexican peso. Significant fluctuations in currency rates can have a substantial impact, either positive or negative, on our revenue, cost of sales, and operating expenses. Currency
translation gains and losses are primarily related to non-U.S. subsidiaries with a functional currency other than U.S. dollars whereby assets and liabilities are translated from the respective functional currency into U.S. dollars using period-end
exchange rates and impact our Comprehensive income. A 10% decline in foreign currency exchange rates would have had a $2 million unfavorable
impact on our Net income for the two quarterly periods ended March 30, 2024. (See Note 7.)
Item 4. Controls and Procedures
(a) Evaluation of disclosure controls and procedures.
Under applicable Securities and Exchange Commission regulations, management of a reporting company, with the participation of the principal executive officer
and principal financial officer, must periodically evaluate the company’s “disclosure controls and procedures,” which are defined generally as controls and other procedures of a reporting company designed to ensure that information required to be
disclosed by the reporting company in its periodic reports filed with the commission (such as this Form 10-Q) is recorded, processed, summarized, and reported on a timely basis.
The Company’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, carried out an evaluation of the effectiveness
of the design and operation of the disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of our
disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.
(b) Changes in internal control over financial reporting.
There were no changes in our internal control over financial reporting that occurred during the Quarter that have materially affected, or are reasonably likely
to materially affect, our internal control over financial reporting.
Part II. Other Information
Item 1. Legal Proceedings
There have been no material changes in legal proceedings from the items disclosed in our most recent Form 10-K filed with the Securities and Exchange
Commission.
Item 1A. Risk Factors
Before investing in our securities, we recommend that investors carefully consider the risks described in our most recent Form 10-K and subsequent periodic
reports filed with the Securities and Exchange Commission, including those under the heading “Risk Factors” and other information contained in this Quarterly Report. Realization of any of these risks could have a material adverse effect on our
business, financial condition, cash flows and results of operations.
Additionally, we caution readers that the list of risk factors discussed in our
most recent Form 10-K and subsequent periodic reports may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements
contained in this report may not in fact occur. Accordingly, readers should not place undue reliance on those statements.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Repurchases of Equity Securities
The following table summarizes the Company's repurchases of its common stock during the Quarterly Period ended March 30, 2024.
Item 5. Other Information
Rule 10b5-1 Plan Elections
No officers or directors, as defined in Rule 16a-1(f), adopted,
modified and/or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as defined in Regulation S-K Item
408, during the second quarter of fiscal 2024.
Item 6. Exhibits
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
|
Segment and Geographic Data (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographic Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Information by Reportable Segment |
Selected information by reportable segment is presented in the following tables:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Information by Geographical Region |
Selected information by geographical region is presented in the following tables:
|
Basic and Diluted Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share |
The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations:
|
Accumulated Other Comprehensive Loss (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss |
The components and activity of Accumulated other comprehensive loss are as follows:
|
Revenue and Accounts Receivable (Details) - USD ($) $ in Millions |
Mar. 30, 2024 |
Sep. 30, 2023 |
---|---|---|
Revenue and Accounts Receivable [Abstract] | ||
Accrual for customer rebates | $ 96 | $ 106 |
Allowance for credit losses | $ 19 | $ 19 |
Divestitures and Spin-off (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
Mar. 30, 2024 |
Apr. 01, 2023 |
Sep. 30, 2023 |
Feb. 29, 2024 |
|
Divestitures and Spin-off [Abstract] | ||||||
Net sales | $ 3,076 | $ 3,288 | $ 5,929 | $ 6,348 | ||
Strata Business [Member] | ||||||
Divestitures and Spin-off [Abstract] | ||||||
Divestiture of business | 25 | |||||
Net sales | $ 56 | |||||
Promens Vehicles Business [Member] | ||||||
Divestitures and Spin-off [Abstract] | ||||||
Divestiture of business | $ 22 | |||||
Net sales | $ 111 | |||||
Health, Hygiene & Specialties Global Nonwovens and Films Business [Member] | Plan [Member] | ||||||
Divestitures and Spin-off [Abstract] | ||||||
Percentage ownership in new combined company | 90.00% |
Restructuring and Transaction Activities, Restructuring Accrual Activity (Details) $ in Millions |
6 Months Ended |
---|---|
Mar. 30, 2024
USD ($)
| |
Restructuring Accrual [Roll Forward] | |
Beginning balance | $ 11 |
Charges | 109 |
Non-cash items | (61) |
Cash | (46) |
Ending balance | 13 |
Employee Severance and Benefits [Member] | |
Restructuring Accrual [Roll Forward] | |
Beginning balance | 10 |
Charges | 19 |
Non-cash items | 0 |
Cash | (16) |
Ending balance | 13 |
Facility Exit Costs [Member] | |
Restructuring Accrual [Roll Forward] | |
Beginning balance | 1 |
Charges | 13 |
Non-cash items | 0 |
Cash | (14) |
Ending balance | 0 |
Non-Cash Impairment Charges [Member] | |
Restructuring Accrual [Roll Forward] | |
Beginning balance | 0 |
Charges | 4 |
Non-cash items | (4) |
Cash | 0 |
Ending balance | 0 |
Transaction Activities [Member] | |
Restructuring Accrual [Roll Forward] | |
Beginning balance | 0 |
Charges | 73 |
Non-cash items | (57) |
Cash | (16) |
Ending balance | $ 0 |
Leases (Details) - USD ($) $ in Millions |
Mar. 30, 2024 |
Sep. 30, 2023 |
---|---|---|
Operating Leases [Abstract] | ||
Operating lease right-of-use assets | $ 627 | $ 625 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease right-of-use assets | Operating lease right-of-use assets |
Current operating lease liabilities | $ 123 | $ 116 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Noncurrent operating lease liabilities | $ 521 | $ 525 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Noncurrent operating lease liabilities | Noncurrent operating lease liabilities |
Finance Leases [Abstract] | ||
Finance lease right-of-use assets | $ 29 | $ 32 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment | Property, plant and equipment |
Current finance lease liability | $ 7 | $ 9 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Noncurrent finance lease liabilities | $ 17 | $ 19 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-Term Debt and Lease Obligation | Long-Term Debt and Lease Obligation |
Long-Term Debt (Details) - USD ($) $ in Millions |
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 |
Sep. 30, 2023 |
||||||||
Long-term Debt [Abstract] | |||||||||
Debt discounts and deferred fees | $ (36) | $ (34) | |||||||
Total long-term debt | 8,714 | 8,980 | |||||||
Current portion of long-term debt | (24) | (10) | |||||||
Long-term debt, less current portion | 8,690 | 8,970 | |||||||
Face amount of term loans with extended maturity date | 1,550 | ||||||||
Term Loan [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 740 | [1] | 3,090 | ||||||
Maturity date | Jul. 31, 2026 | ||||||||
Percentage of loan hedged with interest rate swaps to fix interest rate | 98.00% | ||||||||
Term Loan [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 1,546 | [1] | 0 | ||||||
Maturity date | Jul. 31, 2029 | ||||||||
Percentage of loan hedged with interest rate swaps to fix interest rate | 98.00% | ||||||||
Revolving Line of Credit [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 0 | 0 | |||||||
Maturity date | Jun. 30, 2028 | ||||||||
1.00% First Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | [2],[3] | $ 756 | 741 | ||||||
Interest rate | 1.00% | ||||||||
Maturity date | Jan. 31, 2025 | ||||||||
1.57% First Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 1,525 | 1,525 | |||||||
Interest rate | 1.57% | ||||||||
Maturity date | Jan. 31, 2026 | ||||||||
4.875% First Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 1,250 | 1,250 | |||||||
Interest rate | 4.875% | ||||||||
Maturity date | Jul. 31, 2026 | ||||||||
1.65% First Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 400 | 400 | |||||||
Interest rate | 1.65% | ||||||||
Maturity date | Jan. 31, 2027 | ||||||||
1.50% First Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | [2] | $ 405 | 397 | ||||||
Interest rate | 1.50% | ||||||||
Maturity date | Jan. 31, 2027 | ||||||||
5.50% First Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 500 | 500 | |||||||
Interest rate | 5.50% | ||||||||
Maturity date | Apr. 30, 2028 | ||||||||
5.65% First Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 800 | 0 | |||||||
Interest rate | 5.65% | ||||||||
Maturity date | Jan. 31, 2034 | ||||||||
Face amount of debt issued | $ 800 | ||||||||
4.50% Second Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 291 | 291 | |||||||
Interest rate | 4.50% | ||||||||
Maturity date | Feb. 28, 2026 | ||||||||
5.625% Second Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 500 | 500 | |||||||
Interest rate | 5.625% | ||||||||
Maturity date | Jul. 31, 2027 | ||||||||
0.95% First Priority Senior Secured Notes [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Interest rate | 0.95% | ||||||||
Maturity date | Feb. 29, 2024 | ||||||||
Finance Leases and Other [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 37 | 41 | |||||||
Retired Debt [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt | $ 0 | $ 279 | |||||||
|
Financial Instruments and Fair Value Measurements, Cross-Currency Swaps (Details) - Mar. 30, 2024 € in Millions, £ in Millions |
EUR (€) |
GBP (£) |
---|---|---|
Euro Denominated [Member] | ||
Cross-Currency Swaps [Abstract] | ||
Long-term debt | € 379 | |
Cross-Currency Swap Maturing June 2024 [Member] | ||
Cross-Currency Swaps [Abstract] | ||
Notional amount of swap | € 1,625 | |
Cross-Currency Swap Maturing July 2027 [Member] | ||
Cross-Currency Swaps [Abstract] | ||
Notional amount of swap | £ | £ 700 |
Financial Instruments and Fair Value Measurements, Interest Rate Swaps (Details) $ in Millions |
6 Months Ended |
---|---|
Mar. 30, 2024
USD ($)
| |
Interest Rate Swaps [Member] | |
Interest Rate Swaps [Abstract] | |
Purpose of interest rate swap activities | The primary purpose of the Company’s interest rate swap activities is to manage interest expense variability associated with our outstanding variable rate term loan debt. |
Net proceeds from settlement of derivatives | $ 23 |
Interest Rate Swap Expiring June 2026 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 884 |
Fixed annual rate of swap | 4.452% |
Interest Rate Swap Expiring June 2026 [Member] | SOFR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2029 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 400 |
Fixed annual rate of swap | 4.008% |
Interest Rate Swap Expiring June 2029 [Member] | SOFR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2029 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 450 |
Fixed annual rate of swap | 4.553% |
Interest Rate Swap Expiring June 2029 [Member] | SOFR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2029 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 500 |
Fixed annual rate of swap | 4.648% |
Interest Rate Swap Expiring June 2029 [Member] | SOFR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Financial Instruments and Fair Value Measurements, Fair Value of Derivative and Location on Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Mar. 30, 2024 |
Sep. 30, 2023 |
---|---|---|
Cross-Currency Swaps [Member] | Designated [Member] | Other Current Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 104 | $ 66 |
Cross-Currency Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 58 | 19 |
Interest Rate Swaps [Member] | Designated [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 2 | 36 |
Interest Rate Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 34 | 0 |
Interest Rate Swaps [Member] | Not Designated [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 0 | 8 |
Interest Rate Swaps [Member] | Not Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 81 | $ 104 |
Financial Instruments and Fair Value Measurements, Effect of Derivatives on Consolidated Statements of Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Cross-Currency Swaps [Member] | ||||
Derivative Instruments [Abstract] | ||||
Loss (gain) on derivative instruments | $ (10) | $ (10) | $ (20) | $ (21) |
Loss (Gain) on Derivative Instruments, Statement of Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net |
Interest Rate Swaps [Member] | ||||
Derivative Instruments [Abstract] | ||||
Loss (gain) on derivative instruments | $ (21) | $ (11) | $ (42) | $ (17) |
Loss (Gain) on Derivative Instruments, Statement of Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net |
Financial Instruments and Fair Value Measurements, Assets Measured at Fair Value on Non-Recurring Basis (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Mar. 30, 2024 |
Sep. 30, 2023 |
|
Impairment [Abstract] | ||
Indefinite-lived trademarks | $ 0 | $ 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 4 | 8 |
Impairment charges | 4 | 8 |
Fair Value Adjustment [Abstract] | ||
Fair value of long-term indebtedness greater/(less) than book value | (221) | |
Fair Value on Non-Recurring Basis [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 248 | 248 |
Goodwill | 4,988 | 4,981 |
Definite lived intangible assets | 1,353 | 1,455 |
Property, plant, and equipment | 4,576 | 4,576 |
Total | 11,165 | 11,260 |
Fair Value on Non-Recurring Basis [Member] | Level 1 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 0 | 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 0 | 0 |
Total | 0 | 0 |
Fair Value on Non-Recurring Basis [Member] | Level 2 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 0 | 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 0 | 0 |
Total | 0 | 0 |
Fair Value on Non-Recurring Basis [Member] | Level 3 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 248 | 248 |
Goodwill | 4,988 | 4,981 |
Definite lived intangible assets | 1,353 | 1,455 |
Property, plant, and equipment | 4,576 | 4,576 |
Total | $ 11,165 | $ 11,260 |
Segment and Geographic Data, Selected Information by Reportable Segment (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2024
USD ($)
|
Apr. 01, 2023
USD ($)
|
Mar. 30, 2024
USD ($)
Segment
|
Apr. 01, 2023
USD ($)
|
|
Segment and Geographic Data [Abstract] | ||||
Number of reporting segments | Segment | 4 | |||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | $ 3,076 | $ 3,288 | $ 5,929 | $ 6,348 |
Operating income | 208 | 301 | 365 | 511 |
Depreciation and amortization | 214 | 200 | 428 | 399 |
Operating Segment [Member] | Consumer Packaging International [Member] | ||||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | 968 | 1,059 | 1,885 | 1,995 |
Operating income | 3 | 75 | 34 | 121 |
Depreciation and amortization | 81 | 77 | 161 | 151 |
Operating Segment [Member] | Consumer Packaging North America [Member] | ||||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | 751 | 774 | 1,451 | 1,537 |
Operating income | 77 | 93 | 140 | 164 |
Depreciation and amortization | 57 | 54 | 114 | 105 |
Operating Segment [Member] | Health, Hygiene & Specialties [Member] | ||||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | 646 | 677 | 1,248 | 1,340 |
Operating income | 33 | 34 | 30 | 68 |
Depreciation and amortization | 45 | 44 | 91 | 88 |
Operating Segment [Member] | Flexibles [Member] | ||||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | 711 | 778 | 1,345 | 1,476 |
Operating income | 95 | 99 | 161 | 158 |
Depreciation and amortization | $ 31 | $ 25 | $ 62 | $ 55 |
Segment and Geographic Data, Selected Information by Geographical Region (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Selected Information by Geographical Region [Abstract] | ||||
Net sales | $ 3,076 | $ 3,288 | $ 5,929 | $ 6,348 |
Reportable Geographical Region [Member] | United States and Canada [Member] | ||||
Selected Information by Geographical Region [Abstract] | ||||
Net sales | 1,672 | 1,751 | 3,233 | 3,447 |
Reportable Geographical Region [Member] | Europe [Member] | ||||
Selected Information by Geographical Region [Abstract] | ||||
Net sales | 1,125 | 1,237 | 2,136 | 2,286 |
Reportable Geographical Region [Member] | Rest of World [Member] | ||||
Selected Information by Geographical Region [Abstract] | ||||
Net sales | $ 279 | $ 300 | $ 560 | $ 615 |
Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Numerator [Abstract] | ||||
Consolidated net income | $ 116 | $ 174 | $ 175 | $ 280 |
Denominator [Abstract] | ||||
Weighted average common shares outstanding - basic (in shares) | 115.6 | 120.7 | 115.6 | 122.2 |
Dilutive shares (in shares) | 2.6 | 1.8 | 2.9 | 1.1 |
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 118.2 | 122.5 | 118.5 | 123.3 |
Per Common Share Earnings [Abstract] | ||||
Basic (in dollars per share) | $ 1 | $ 1.44 | $ 1.51 | $ 2.29 |
Diluted (in dollars per share) | $ 0.98 | $ 1.42 | $ 1.48 | $ 2.27 |
Antidilutive Shares [Abstract] | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 2.2 | 1.2 | 2.3 | 2.6 |
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | $ 3,216 | |||
Other comprehensive income (loss) before reclassifications | $ (43) | $ 39 | 31 | $ 185 |
Net amount reclassified from accumulated other comprehensive loss | (9) | (10) | (21) | (16) |
Ending balance | 3,294 | 3,294 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | (274) | (263) | (336) | (403) |
Ending balance | (326) | (234) | (326) | (234) |
Currency Translation [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | (201) | (314) | (340) | (455) |
Other comprehensive income (loss) before reclassifications | (70) | 60 | 69 | 201 |
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Ending balance | (271) | (254) | (271) | (254) |
Defined Benefit Pension and Retiree Health Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | (84) | (32) | (84) | (32) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Ending balance | (84) | (32) | (84) | (32) |
Derivative Instruments [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | 11 | 83 | 88 | 84 |
Other comprehensive income (loss) before reclassifications | 27 | (21) | (38) | (16) |
Net amount reclassified from accumulated other comprehensive loss | (9) | (10) | (21) | (16) |
Ending balance | $ 29 | $ 52 | $ 29 | $ 52 |
1 Year Berry Global Chart |
1 Month Berry Global Chart |
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