QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
þ | Accelerated filer | o | ||||||||||||||||||
Non-accelerated filer | o | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net revenues | $ | $ | $ | $ | |||||||||||||||||||
Related party net revenues | |||||||||||||||||||||||
Total net revenues | |||||||||||||||||||||||
Cost of sales | ( | ( | ( | ( | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | ( | ( | ( | ( | |||||||||||||||||||
Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||||||
Diluted |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income, net of income taxes: | |||||||||||||||||||||||
Employee benefit plans | ( | ( | ( | ( | |||||||||||||||||||
Interest rate derivatives | |||||||||||||||||||||||
Other comprehensive income, net of income taxes | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
(Unaudited) As of June 30, 2023 | As of December 31, 2022 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable (net of allowance for doubtful accounts of $ | |||||||||||
Other receivables | |||||||||||
Related party receivables | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment (net of accumulated depreciation of $ | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Related party payables | |||||||||||
Current portion of long-term debt | |||||||||||
Current operating lease liabilities | |||||||||||
Income taxes payable | |||||||||||
Accrued and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term operating lease liabilities | |||||||||||
Deferred income taxes | |||||||||||
Long-term postretirement benefit obligation | |||||||||||
Other liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Commitments and contingencies (Note 7) | |||||||||||
Stockholders’ equity | |||||||||||
Common stock, $ outstanding | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Retained earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Equity | |||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | — | $ | $ | $ | $ | |||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of income taxes | — | — | — | ||||||||||||||||||||||||||
Dividends ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Balance as of March 31, 2022 | $ | — | $ | $ | $ | $ | |||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of income taxes | — | — | — | ||||||||||||||||||||||||||
Dividends ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Other | — | — | — | ||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | — | $ | $ | $ | $ | |||||||||||||||||||||||
Balance as of December 31, 2022 | $ | — | $ | $ | $ | $ | |||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | ( | ( | ||||||||||||||||||||||||
Dividends ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Other | — | — | — | ||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | — | $ | $ | $ | $ | |||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of income taxes | — | — | — | ||||||||||||||||||||||||||
Dividends ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Other | — | — | — | ||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | — | $ | $ | $ | $ |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash provided by operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to operating cash flows: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | ( | ||||||||||
Stock compensation expense | |||||||||||
Change in assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ||||||||||
Other receivables | |||||||||||
Related party receivables | |||||||||||
Inventories | ( | ||||||||||
Accounts payable | ( | ||||||||||
Related party payables | ( | ||||||||||
Income taxes payable / receivable | ( | ( | |||||||||
Accrued and other current liabilities | |||||||||||
Other assets and liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash used in investing activities | |||||||||||
Acquisition of property, plant and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash used in financing activities | |||||||||||
Repayment of long-term debt | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Other financing activities | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Cash paid: | |||||||||||
Interest | |||||||||||
Income taxes |
June 30, 2023 | December 31, 2022 | ||||||||||
(in millions) | |||||||||||
Raw materials | $ | $ | |||||||||
Work in progress | |||||||||||
Finished goods | |||||||||||
Spare parts | |||||||||||
Inventories | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
(in millions) | |||||||||||
Term loan facility | $ | $ | |||||||||
Deferred financing transaction costs | ( | ( | |||||||||
Original issue discounts | ( | ( | |||||||||
Less: current portion | ( | ( | |||||||||
Long-term debt | $ | $ |
(In millions) | Notional Amount | Annual Rate | Weighted Average Annual Effective Rate | Fair Value - Other Current Assets | Fair Value - Other Assets | ||||||||||||||||||||||||
As of June 30, 2023 | $ | % | $ | $ | |||||||||||||||||||||||||
As of December 31, 2022⁽¹⁾ | $ | % | $ | $ |
(In millions) | Currency Translation Adjustments | Employee Benefit Plans | Interest Rate Derivatives | Accumulated Other Comprehensive Income | |||||||||||||||||||
Balance as of December 31, 2021 | $ | ( | $ | $ | $ | ||||||||||||||||||
Gain arising during the period | — | ||||||||||||||||||||||
Reclassification to earnings | — | — | — | — | |||||||||||||||||||
Effect of deferred taxes | — | ( | ( | ||||||||||||||||||||
Balance as of March 31, 2022 | $ | ( | $ | $ | $ | ||||||||||||||||||
Gain arising during the period | — | ||||||||||||||||||||||
Reclassification to earnings | — | ( | — | ( | |||||||||||||||||||
Effect of deferred taxes | — | ( | ( | ||||||||||||||||||||
Balance as of June 30, 2022 | $ | ( | $ | $ | $ | ||||||||||||||||||
Balance as of December 31, 2022 | $ | ( | $ | $ | $ | ||||||||||||||||||
Loss arising during the period | — | — | ( | ( | |||||||||||||||||||
Reclassification to earnings | — | ( | ( | ( | |||||||||||||||||||
Effect of deferred taxes | — | — | |||||||||||||||||||||
Balance as of March 31, 2023 | $ | ( | $ | $ | $ | ||||||||||||||||||
Gain arising during the period | — | ||||||||||||||||||||||
Reclassification to earnings | — | ( | ( | ( | |||||||||||||||||||
Effect of deferred taxes | — | ( | ( | ||||||||||||||||||||
Balance as of June 30, 2023 | $ | ( | $ | $ | $ |
Reynolds Cooking & Baking | Hefty Waste & Storage | Hefty Tableware | Presto Products | Segment Total | Unallocated(1) | Total | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | (in millions) | ||||||||||||||||||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Intersegment revenues | ( | ||||||||||||||||||||||||||||||||||||||||
Total segment net revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Reynolds Cooking & Baking | Hefty Waste & Storage | Hefty Tableware | Presto Products | Segment Total | Unallocated(1) | Total | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | (in millions) | ||||||||||||||||||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Intersegment revenues | ( | ||||||||||||||||||||||||||||||||||||||||
Total segment net revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
Reynolds Cooking & Baking | Hefty Waste & Storage | Hefty Tableware | Presto Products | Segment Total | Unallocated(1) | Total | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | (in millions) | ||||||||||||||||||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Intersegment revenues | ( | ||||||||||||||||||||||||||||||||||||||||
Total segment net revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Reynolds Cooking & Baking | Hefty Waste & Storage | Hefty Tableware | Presto Products | Segment Total | Unallocated(1) | Total | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | (in millions) | ||||||||||||||||||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Intersegment revenues | ( | ||||||||||||||||||||||||||||||||||||||||
Total segment net revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
Reynolds Cooking & Baking | Hefty Waste & Storage | Hefty Tableware | Presto Products | Segment Total | Unallocated(1) | Total | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
As of June 30, 2023 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
As of December 31, 2022 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Segment Adjusted EBITDA | $ | $ | $ | $ | |||||||||||||||||||
Corporate / unallocated expenses | ( | ( | ( | ( | |||||||||||||||||||
Adjustments to reconcile to GAAP income before income taxes | |||||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
IPO and separation-related costs | ( | ( | |||||||||||||||||||||
Consolidated GAAP income before income taxes | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Waste and storage products (1) | $ | $ | $ | $ | |||||||||||||||||||
Cooking products | |||||||||||||||||||||||
Tableware | |||||||||||||||||||||||
Unallocated | ( | ( | ( | ( | |||||||||||||||||||
Net revenues | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Net income – GAAP | $ | 66 | $ | 52 | $ | 83 | $ | 104 | |||||||||||||||
Income tax expense | 23 | 18 | 28 | 34 | |||||||||||||||||||
Interest expense, net | 31 | 16 | 60 | 28 | |||||||||||||||||||
Depreciation and amortization | 30 | 29 | 61 | 57 | |||||||||||||||||||
IPO and separation-related costs ⁽¹⁾ | — | 3 | — | 7 | |||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 150 | $ | 118 | $ | 232 | $ | 230 |
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||
(in millions, except for per share data) | Net Income | Diluted Shares | Diluted EPS | Net Income | Diluted Shares | Diluted EPS | |||||||||||||||||||||||||||||
As Reported - GAAP | $ | 66 | 210 | $ | 0.32 | $ | 52 | 210 | $ | 0.25 | |||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||
IPO and separation-related costs ⁽¹⁾ | — | 210 | — | 2 | 210 | 0.01 | |||||||||||||||||||||||||||||
Adjusted (Non-GAAP) | $ | 66 | 210 | $ | 0.32 | $ | 54 | 210 | $ | 0.26 |
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||
(in millions, except for per share data) | Net Income | Diluted Shares | Diluted EPS | Net Income | Diluted Shares | Diluted EPS | |||||||||||||||||||||||||||||
As Reported - GAAP | $ | 83 | $ | 210 | $ | 0.40 | $ | 104 | 210 | $ | 0.50 | ||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||
IPO and separation-related costs ⁽¹⁾ | — | 210 | — | 5 | 210 | 0.02 | |||||||||||||||||||||||||||||
Adjusted (Non-GAAP) | $ | 83 | $ | 210 | $ | 0.40 | $ | 109 | 210 | $ | 0.52 |
(in millions) | Reynolds Cooking & Baking | Hefty Waste & Storage | Hefty Tableware | Presto Products | Unallocated⁽1⁾ | Total Reynolds Consumer Products | |||||||||||||||||||||||||||||
Net revenues for the three months ended June 30: | |||||||||||||||||||||||||||||||||||
2023 | $ | 321 | $ | 229 | $ | 251 | $ | 145 | $ | (6) | $ | 940 | |||||||||||||||||||||||
2022 | 294 | 238 | 240 | 150 | (5) | 917 | |||||||||||||||||||||||||||||
Adjusted EBITDA⁽²⁾ for the three months ended June 30: | |||||||||||||||||||||||||||||||||||
2023 | $ | 40 | $ | 62 | $ | 45 | $ | 28 | $ | (25) | $ | 150 | |||||||||||||||||||||||
2022 | 36 | 46 | 25 | 25 | (14) | 118 |
For the Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for %) | 2023 | % of Revenue | 2022 | % of Revenue | Change | % Change | ||||||||||||||||||||||||||||||||
Net revenues | $ | 922 | 98 | % | $ | 896 | 98 | % | $ | 26 | 3 | % | ||||||||||||||||||||||||||
Related party net revenues | 18 | 2 | % | 21 | 2 | % | (3) | (14) | % | |||||||||||||||||||||||||||||
Total net revenues | 940 | 100 | % | 917 | 100 | % | 23 | 3 | % | |||||||||||||||||||||||||||||
Cost of sales | (712) | (76) | % | (733) | (80) | % | 21 | 3 | % | |||||||||||||||||||||||||||||
Gross profit | 228 | 24 | % | 184 | 20 | % | 44 | 24 | % | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | (107) | (11) | % | (91) | (10) | % | (16) | (18) | % | |||||||||||||||||||||||||||||
Other expense, net | (1) | — | % | (7) | (1) | % | 6 | NM | ||||||||||||||||||||||||||||||
Income from operations | 120 | 13 | % | 86 | 9 | % | 34 | 40 | % | |||||||||||||||||||||||||||||
Interest expense, net | (31) | (3) | % | (16) | (2) | % | (15) | (94) | % | |||||||||||||||||||||||||||||
Income before income taxes | 89 | 9 | % | 70 | 8 | % | 19 | 27 | % | |||||||||||||||||||||||||||||
Income tax expense | (23) | (2) | % | (18) | (2) | % | (5) | (28) | % | |||||||||||||||||||||||||||||
Net income | $ | 66 | 7 | % | $ | 52 | 6 | % | $ | 14 | 27 | % | ||||||||||||||||||||||||||
Adjusted EBITDA ⁽¹⁾ | $ | 150 | 16 | % | $ | 118 | 13 | % | $ | 32 | 27 | % |
Price | Volume/Mix | Total | ||||||||||||||||||
Reynolds Cooking & Baking | (3) | % | 12 | % | 9 | % | ||||||||||||||
Hefty Waste & Storage | 4 | % | (8) | % | (4) | % | ||||||||||||||
Hefty Tableware | 12 | % | (7) | % | 5 | % | ||||||||||||||
Presto Products | — | % | (3) | % | (3) | % | ||||||||||||||
Total RCP | 3 | % | — | % | 3 | % |
For the Three Months Ended June 30, | ||||||||||||||||||||||||||
(in millions, except for %) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Total segment net revenues | $ | 321 | $ | 294 | $ | 27 | 9 | % | ||||||||||||||||||
Segment Adjusted EBITDA | 40 | 36 | 4 | 11 | % | |||||||||||||||||||||
Segment Adjusted EBITDA Margin | 12 | % | 12 | % |
For the Three Months Ended June 30, | ||||||||||||||||||||||||||
(in millions, except for %) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Total segment net revenues | $ | 229 | $ | 238 | $ | (9) | (4) | % | ||||||||||||||||||
Segment Adjusted EBITDA | 62 | 46 | 16 | 35 | % | |||||||||||||||||||||
Segment Adjusted EBITDA Margin | 27 | % | 19 | % |
For the Three Months Ended June 30, | ||||||||||||||||||||||||||
(in millions, except for %) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Total segment net revenues | $ | 251 | $ | 240 | $ | 11 | 5 | % | ||||||||||||||||||
Segment Adjusted EBITDA | 45 | 25 | 20 | 80 | % | |||||||||||||||||||||
Segment Adjusted EBITDA Margin | 18 | % | 10 | % |
For the Three Months Ended June 30, | ||||||||||||||||||||||||||
(in millions, except for %) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Total segment net revenues | $ | 145 | $ | 150 | $ | (5) | (3) | % | ||||||||||||||||||
Segment Adjusted EBITDA | 28 | 25 | 3 | 12 | % | |||||||||||||||||||||
Segment Adjusted EBITDA Margin | 19 | % | 17 | % |
(in millions) | Reynolds Cooking & Baking | Hefty Waste & Storage | Hefty Tableware | Presto Products | Unallocated⁽1⁾ | Total Reynolds Consumer Products | |||||||||||||||||||||||||||||
Net revenues for the six months ended June 30: | |||||||||||||||||||||||||||||||||||
2023 | $ | 604 | $ | 463 | $ | 475 | $ | 288 | $ | (16) | $ | 1,814 | |||||||||||||||||||||||
2022 | 562 | 466 | 450 | 292 | (8) | 1,762 | |||||||||||||||||||||||||||||
Adjusted EBITDA⁽²⁾ for the six months ended June 30: | |||||||||||||||||||||||||||||||||||
2023 | $ | 43 | $ | 117 | $ | 76 | $ | 47 | $ | (51) | $ | 232 | |||||||||||||||||||||||
2022 | 64 | 91 | 48 | 44 | (17) | 230 |
For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for %) | 2023 | % of Revenue | 2022 | % of Revenue | Change | % Change | ||||||||||||||||||||||||||||||||
Net revenues | $ | 1,774 | 98 | % | $ | 1,714 | 97 | % | $ | 60 | 4 | % | ||||||||||||||||||||||||||
Related party net revenues | 40 | 2 | % | 48 | 3 | % | (8) | (17) | % | |||||||||||||||||||||||||||||
Total net revenues | 1,814 | 100 | % | 1,762 | 100 | % | 52 | 3 | % | |||||||||||||||||||||||||||||
Cost of sales | (1,430) | (79) | % | (1,410) | (80) | % | (20) | (1) | % | |||||||||||||||||||||||||||||
Gross profit | 384 | 21 | % | 352 | 20 | % | 32 | 9 | % | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | (212) | (12) | % | (174) | (10) | % | (38) | (22) | % | |||||||||||||||||||||||||||||
Other expense, net | (1) | — | % | (12) | (1) | % | 11 | 92 | % | |||||||||||||||||||||||||||||
Income from operations | 171 | 9 | % | 166 | 9 | % | 5 | 3 | % | |||||||||||||||||||||||||||||
Interest expense, net | (60) | (3) | % | (28) | (2) | % | (32) | (114) | % | |||||||||||||||||||||||||||||
Income before income taxes | 111 | 6 | % | 138 | 8 | % | (27) | (20) | % | |||||||||||||||||||||||||||||
Income tax expense | (28) | (2) | % | (34) | (2) | % | 6 | 18 | % | |||||||||||||||||||||||||||||
Net income | $ | 83 | 5 | % | $ | 104 | 6 | % | $ | (21) | (20) | % | ||||||||||||||||||||||||||
Adjusted EBITDA ⁽¹⁾ | $ | 232 | 13 | % | $ | 230 | 13 | % | $ | 2 | 1 | % |
Price | Volume/Mix | Total | ||||||||||||||||||
Reynolds Cooking & Baking | — | % | 7 | % | 7 | % | ||||||||||||||
Hefty Waste & Storage | 5 | % | (6) | % | (1) | % | ||||||||||||||
Hefty Tableware | 13 | % | (7) | % | 6 | % | ||||||||||||||
Presto Products | — | % | (1) | % | (1) | % | ||||||||||||||
Total RCP | 4 | % | (1) | % | 3 | % |
For the Six Months Ended June 30, | ||||||||||||||||||||||||||
(in millions, except for %) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Total segment net revenues | $ | 604 | $ | 562 | $ | 42 | 7 | % | ||||||||||||||||||
Segment Adjusted EBITDA | 43 | 64 | (21) | (33) | % | |||||||||||||||||||||
Segment Adjusted EBITDA Margin | 7 | % | 11 | % |
For the Six Months Ended June 30, | ||||||||||||||||||||||||||
(in millions, except for %) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Total segment net revenues | $ | 463 | $ | 466 | $ | (3) | (1) | % | ||||||||||||||||||
Segment Adjusted EBITDA | 117 | 91 | 26 | 29 | % | |||||||||||||||||||||
Segment Adjusted EBITDA Margin | 25 | % | 20 | % |
For the Six Months Ended June 30, | ||||||||||||||||||||||||||
(in millions, except for %) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Total segment net revenues | $ | 475 | $ | 450 | $ | 25 | 6 | % | ||||||||||||||||||
Segment Adjusted EBITDA | 76 | 48 | 28 | 58 | % | |||||||||||||||||||||
Segment Adjusted EBITDA Margin | 16 | % | 11 | % |
For the Six Months Ended June 30, | ||||||||||||||||||||||||||
(in millions, except for %) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Total segment net revenues | $ | 288 | $ | 292 | $ | (4) | (1) | % | ||||||||||||||||||
Segment Adjusted EBITDA | 47 | 44 | 3 | 7 | % | |||||||||||||||||||||
Segment Adjusted EBITDA Margin | 16 | % | 15 | % |
For the Six Months Ended June 30, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Net cash provided by operating activities | $ | 207 | $ | 101 | |||||||
Net cash used in investing activities | (51) | (56) | |||||||||
Net cash used in financing activities | (111) | (108) | |||||||||
Increase (decrease) in cash and cash equivalents | $ | 45 | $ | (63) |
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because 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 Data File (formatted as Inline XBRL and contained in Exhibit 101) |
REYNOLDS CONSUMER PRODUCTS INC. | ||||||||
(Registrant) | ||||||||
By: | /s/ Chris Mayrhofer | |||||||
Chris Mayrhofer | ||||||||
Senior Vice President and Controller (Principal Accounting Officer) | ||||||||
August 9, 2023 |
Date: August 9, 2023 | By: | /s/ Lance Mitchell | ||||||
Lance Mitchell | ||||||||
President and Chief Executive Officer |
Date: August 9, 2023 | By: | /s/ Michael Graham | ||||||
Michael Graham | ||||||||
Chief Financial Officer |
Date: August 9, 2023 | By: | /s/ Lance Mitchell | ||||||
Lance Mitchell | ||||||||
President and Chief Executive Officer |
Date: August 9, 2023 | By: | /s/ Michael Graham | ||||||
Michael Graham | ||||||||
Chief Financial Officer |
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Total net revenues | $ 940 | $ 917 | $ 1,814 | $ 1,762 |
Cost of sales | (712) | (733) | (1,430) | (1,410) |
Gross profit | 228 | 184 | 384 | 352 |
Selling, general and administrative expenses | (107) | (91) | (212) | (174) |
Other expense, net | (1) | (7) | (1) | (12) |
Income from operations | 120 | 86 | 171 | 166 |
Interest expense, net | (31) | (16) | (60) | (28) |
Income before income taxes | 89 | 70 | 111 | 138 |
Income tax expense | (23) | (18) | (28) | (34) |
Net income | $ 66 | $ 52 | $ 83 | $ 104 |
Earnings per share: | ||||
Basic (in USD per share) | $ 0.32 | $ 0.25 | $ 0.40 | $ 0.50 |
Diluted (in USD per share) | $ 0.32 | $ 0.25 | $ 0.40 | $ 0.50 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 210.0 | 209.9 | 210.0 | 209.8 |
Effect of dilutive securities (in shares) | 0.0 | 0.0 | 0.0 | 0.1 |
Diluted (in shares) | 210.0 | 209.9 | 210.0 | 209.9 |
Net revenues | ||||
Net revenues | $ 922 | $ 896 | $ 1,774 | $ 1,714 |
Related party net revenues | ||||
Net revenues | $ 18 | $ 21 | $ 40 | $ 48 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 66 | $ 52 | $ 83 | $ 104 |
Other comprehensive (loss) income, net of income taxes: | ||||
Employee benefit plans | (1) | (1) | (2) | (1) |
Interest rate derivatives | 14 | 4 | 2 | 11 |
Other comprehensive income, net of income taxes | 13 | 3 | 0 | 10 |
Comprehensive income | $ 79 | $ 55 | $ 83 | $ 114 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1 | $ 1 |
Property, plant and equipment, accumulated depreciation | $ 859 | $ 821 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,000 | 2,000 |
Common stock, shares issued (in shares) | 210 | 210 |
Common stock, shares outstanding (in shares) | 210 | 210 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
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Statement of Stockholders' Equity [Abstract] | ||||
Dividends, per share, declared (in USD per share) | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.23 |
Dividends, per share, paid (in USD per share) | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.23 |
Description of Business and Basis of Presentation |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business: Reynolds Consumer Products Inc. and its subsidiaries (“we”, “us” or “our”) produce and sell products across three broad categories: cooking products, waste and storage products and tableware. We sell our products under brands such as Reynolds and Hefty, and also under store brands. Our product portfolio includes aluminum foil, wraps, disposable bakeware, trash bags, food storage bags and disposable tableware. We report four business segments: Reynolds Cooking & Baking; Hefty Waste & Storage; Hefty Tableware; and Presto Products. Basis of Presentation: We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for comprehensive annual financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2022, and should be read in conjunction with the disclosures therein. In our opinion, these interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly the financial condition, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. In March 2023, we initiated a voluntary Supply Chain Finance program (the “SCF”) with a global financial institution (the “SCF Bank”). Under the SCF, qualifying suppliers may elect to sell their receivables from us to the SCF Bank. These participating suppliers negotiate their receivables sales arrangements directly with the SCF Bank. We are not party to those agreements, nor do we provide any security or other forms of guarantees to the SCF Bank. The participation in the program is at the sole discretion of the supplier, we have no economic interest in a supplier’s decision to enter into the agreement and have no direct financial relationship with SCF Bank, as it relates to the SCF. Once a qualifying supplier elects to participate in the SCF and reaches an agreement with the SCF Bank, they elect which individual invoices they sell to the SCF Bank. The terms of our payment obligations are not impacted by a supplier’s participation in the SCF and as such, the SCF has no direct impact on our balance sheets, cash flows, or liquidity. Amounts due to suppliers who voluntarily participate in the SCF are included in accounts payable in our condensed consolidated balance sheet and our payments made under the SCF are reflected as an operating cash flow in the condensed consolidated statement of cash flows. As of June 30, 2023, the amount of obligations outstanding that we have confirmed as valid under the SCF was not material.
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New Accounting Standards |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Guidance: In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and subsequently in January 2021, FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, both of which provide optional expedients and exceptions to applying the guidance on contract modifications, hedge accounting, and other transactions, to simplify the accounting for transitioning from the London Interbank Offered Rate (“LIBOR”), and other interbank offered rates expected to be discontinued, to alternative reference rates. Each of these ASUs were effective upon its issuance and could be applied prospectively through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which amended the sunset date of the guidance in Topic 848 to December 31, 2024 from December 31, 2022. We adopted the standards as of January 1, 2023. As a result of the planned phase out of the LIBOR as a reference rate and adoption of ASU 2020-04 and ASU 2021-01, we have amended our Credit Agreement and interest rate swaps and applied practical expedients under the guidance. The adoption did not have a material impact on our condensed consolidated financial statements. In September 2022, FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. These amendments require disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. These amendments are effective for fiscal years beginning after December 31, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 31, 2023. We adopted the standard as of January 1, 2023. The adoption relates to disclosure only, and does not have an impact on our condensed consolidated financial statements.
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Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consisted of the following:
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Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Long-term debt consisted of the following:
External Debt Facilities In February 2020, we entered into external debt facilities (“External Debt Facilities”), which consist of (i) a $2,475 million senior secured term loan facility (“Term Loan Facility”); and (ii) a $250 million senior secured revolving credit facility (“Revolving Facility”). In February 2023 we amended the External Debt Facilities (as amended, the “Amended External Debt Facilities”) which replaced the interest rate benchmark from the LIBOR to the Secured Overnight Financing Rate (“SOFR”). Other than the foregoing, the material terms of the External Debt Facilities remain unchanged, and our election to use practical expedients under ASU 2020-04 and ASU 2021-01, as described in Note 2 - New Accounting Standards, resulted in no material impacts on our condensed consolidated financial statements. Borrowings under the Amended External Debt Facilities bear interest at a rate per annum equal to, at our option, either a base rate plus an applicable margin of 0.75% or SOFR plus an applicable margin of 1.75%. During September 2020, May 2022 and August 2022, we entered into a series of interest rate swaps to hedge a portion of the interest rate exposure resulting from these borrowings. In conjunction with the amendment of our External Debt Facilities, we amended the outstanding interest rate swaps to replace the interest rate benchmark from the LIBOR to SOFR. Refer to Note 5 – Financial Instruments for further details. The Amended External Debt Facilities contain a springing financial covenant requiring compliance with a ratio of first lien net indebtedness to consolidated EBITDA, applicable solely to the Revolving Facility. The financial covenant is tested on the last day of any fiscal quarter only if the aggregate principal amount of borrowings under the Revolving Facility and drawn but unreimbursed letters of credit exceed 35% of the total amount of commitments under the Revolving Facility on such day. We are currently in compliance with the covenants contained in our Amended External Debt Facilities. If an event of default occurs, the lenders under the Amended External Debt Facilities are entitled to take various actions, including the acceleration of amounts due under the Amended External Debt Facilities and all actions permitted to be taken by secured creditors. Term Loan Facility The Term Loan Facility matures in February 2027. The Term Loan Facility amortizes in equal quarterly installments of $6 million, which commenced in June 2020, with the balance payable on maturity. Revolving Facility The Revolving Facility matures in February 2025 and includes a sub-facility for letters of credit. As of June 30, 2023, we had no outstanding borrowings under the Revolving Facility, and we had $6 million of letters of credit outstanding, which reduces the borrowing capacity under the Revolving Facility. Fair Value of Our Long-Term Debt The fair value of our long-term debt as of June 30, 2023, which is a Level 2 fair value measurement, approximates the carrying value due to the variable market interest rate and the stability of our credit profile.
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Financial Instruments |
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Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments Interest Rate Derivatives During 2020 and 2022, we entered into a series of interest rate swaps to fix the LIBOR of our External Debt Facilities. In February 2023, we amended our interest rate swaps to replace the interest rate benchmark from the LIBOR to SOFR. Other than the foregoing, the material terms of the interest rate swap agreements remained unchanged, and our election to use practical expedients under ASUs 2020-04 and 2021-01, as described in Note 2 - New Accounting Standards, resulted in no material impacts on our condensed consolidated financial statements. After the amendments, the aggregate notional amount of the interest rate swaps still in effect as of June 30, 2023 was $1,150 million, and the SOFR is fixed at an annual rate of 0.40% to 3.40% (for an annual effective interest rate of 2.15% to 5.15%, including margin). The interest rate swaps outstanding as of June 30, 2023 hedge a portion of the interest rate exposure resulting from our Term Loan Facility for periods ranging from to three years. We classified these instruments as cash flow hedges. The effective portion of the gain or loss on the open hedging instrument is recorded in accumulated other comprehensive income and is reclassified into earnings as interest expense, net when settled. The associated asset or liability on the open hedges is recorded at its fair value in other assets or other liabilities, as applicable. The fair value of the interest rate swaps was determined using a discounted cash flow method based on market-based swap yield curves, taking into account current interest rates, and is classified as Level 2 within the fair value hierarchy. The following table provides the notional amounts, the annual rates, the weighted average annual effective rates, and the fair value of our interest rate derivatives:
(1)Based on the interest rate swaps prior to the amendments entered into in February 2023, which was based on the LIBOR as of December 31, 2022.
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Stock-based Compensation |
6 Months Ended |
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Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Our equity incentive plan was established in 2020, for purposes of granting stock-based compensation awards to certain members of our senior management, our non-executive directors and to certain employees, to incentivize their performance and align their interests with ours. We have granted restricted stock units (“RSUs”) to certain employees and non-employee directors that have a service-based vesting condition. In addition, we have granted performance stock units (“PSUs”) to certain members of management that have a performance-based vesting condition. We account for forfeitures of outstanding but unvested grants in the period they occur. A maximum of 10.5 million shares of common stock were initially available for issuance under equity incentive awards granted pursuant to the plan. In the three and six months ended June 30, 2023, zero and 0.2 million RSUs and zero and 0.2 million PSUs were granted, respectively. As of June 30, 2023, there were stock-based compensation awards representing 0.7 million shares outstanding compared to 0.4 million shares outstanding as of December 31, 2022. Stock-based compensation expense was $3 million and $6 million for the three and six months ended June 30, 2023, respectively, compared to $2 million and $3 million in the comparable prior year periods.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings: We are from time to time party to litigation, legal proceedings and tax examinations arising from our operations. Most of these matters involve allegations of damages against us relating to employment matters, consumer complaints, personal injury and commercial or contractual disputes. We record estimates for claims and proceedings that constitute a present obligation when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of such obligation can be made. While it is not possible to predict the outcome of any of these matters, based on our assessment of the facts and circumstances as of June 30, 2023, we do not believe any of these matters, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows. However, actual outcomes may differ from those expected and could have a material effect on our financial position, results of operations or cash flows in a future period.
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Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table summarizes the changes in our balances of each component of accumulated other comprehensive income.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Our Chief Executive Officer, who has been identified as our Chief Operating Decision Maker (“CODM”), has evaluated how he views and measures our performance. In applying the criteria set forth in the standards for reporting information about segments in financial statements, we have determined that we have four reportable segments - Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware and Presto Products. The key factors used to identify these reportable segments are the organization and alignment of our internal operations and the nature of our products. This reflects how our CODM monitors performance, allocates capital and makes strategic and operational decisions. Our segments are described as follows: Reynolds Cooking & Baking Our Reynolds Cooking & Baking segment produces branded and store brand aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners. Our branded products are sold under the Reynolds Wrap, Reynolds KITCHENS and EZ Foil brands in the United States and selected international markets, under the ALCAN brand in Canada and under the Diamond brand outside of North America. Hefty Waste & Storage Our Hefty Waste & Storage segment produces both branded and store brand trash and food storage bags. Our branded products are sold under the Hefty Ultra Strong and Hefty Strong brands for trash bags, and as the Hefty and Baggies brands for our food storage bags. Hefty Tableware Our Hefty Tableware segment sells both branded and store brand disposable and compostable plates, bowls, platters, cups and cutlery. Our Hefty branded products include dishes and party cups. Presto Products Our Presto Products segment primarily sells store brand products in four main categories: food storage bags, trash bags, reusable storage containers and plastic wrap. Our Presto Products segment also includes our specialty business, which serves other consumer products companies by providing Fresh-Lock and Slide-Rite resealable closure systems. Information by Segment We present segment adjusted EBITDA (“Adjusted EBITDA”) as this is the financial measure by which management and our CODM allocate resources and analyze the performance of our reportable segments. Adjusted EBITDA represents each segment’s earnings before interest, tax, depreciation and amortization and is further adjusted to exclude IPO and separation-related costs. Total assets by segment are those assets directly associated with the respective operating activities, comprising inventory, property, plant and equipment and operating lease right-of-use assets. Other assets, such as cash, accounts receivable and intangible assets, are monitored on an entity-wide basis and not included in segment information that is regularly reviewed by our CODM. Transactions between segments are at negotiated prices.
Segment assets consisted of the following:
(1)Unallocated includes the elimination of intersegment revenues, other revenue adjustments and certain corporate costs, depreciation and amortization and assets not allocated to segments. Unallocated assets are comprised of cash, accounts receivable, other receivables, entity-wide property, plant and equipment, entity-wide operating lease right-of-use assets, goodwill, intangible assets, related party receivables and other assets. The following table presents a reconciliation of segment Adjusted EBITDA to GAAP income before income taxes:
Information in Relation to Products Net revenues by product line are as follows:
(1)Waste and storage products are comprised of our Hefty Waste & Storage and Presto Products segments. Our different product lines are generally sold to a common group of customers. For all product lines, there is a relatively short time period between the receipt of the order and the transfer of control over the goods to the customer.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Packaging Finance Limited (“PFL”) owns the majority of our outstanding common stock and owns the majority of the outstanding common stock of Pactiv Evergreen Inc. and its subsidiaries (“PEI Group”). We sell and purchase various goods and services with PEI Group under contractual arrangements that expire over a variety of periods through December 31, 2027. During the six months ended June 30, 2023, we amended these contractual arrangements with PEI Group, which, among other things, extended the expiration date for certain arrangements. Transactions between us and PEI Group are described below. For the three and six months ended June 30, 2023, revenues from products sold to PEI Group were $18 million and $40 million, respectively, compared to $21 million and $48 million in the comparable prior year periods. For the three and six months ended June 30, 2023, products purchased from PEI Group were $93 million and $199 million, respectively, compared to $100 million and $194 million in the comparable prior year periods. For the three and six months ended June 30, 2023, PEI Group charged us freight and warehousing costs of $9 million and $18 million, respectively, compared to $15 million and $29 million in the comparable prior year periods, which were included in cost of sales. The resulting related party receivables and payables are settled regularly in the normal course of business. Furthermore, $36 million of the dividends paid during each of the three months ended June 30, 2023 and June 30, 2022, and $71 million of the dividends paid during each of the six months ended June 30, 2023 and June 30, 2022, were paid to PFL.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Quarterly Cash Dividend On July 27, 2023, our Board of Directors approved a cash dividend of $0.23 per common share to be paid on August 31, 2023 to shareholders of record on August 17, 2023. Term Loan Facility Subsequent to June 30, 2023, we made a voluntary principal payment of $100 million related to our Term Loan Facility. Except as described above, there have been no events subsequent to June 30, 2023 which would require accrual or disclosure in these condensed consolidated financial statements.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
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Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Pay vs Performance Disclosure | ||||||
Net income | $ 66 | $ 17 | $ 52 | $ 52 | $ 83 | $ 104 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
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 |
Description of Business and Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business: Reynolds Consumer Products Inc. and its subsidiaries (“we”, “us” or “our”) produce and sell products across three broad categories: cooking products, waste and storage products and tableware. We sell our products under brands such as Reynolds and Hefty, and also under store brands. Our product portfolio includes aluminum foil, wraps, disposable bakeware, trash bags, food storage bags and disposable tableware. We report four business segments: Reynolds Cooking & Baking; Hefty Waste & Storage; Hefty Tableware; and Presto Products.
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Basis of Presentation | Basis of Presentation: We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for comprehensive annual financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2022, and should be read in conjunction with the disclosures therein. In our opinion, these interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly the financial condition, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. In March 2023, we initiated a voluntary Supply Chain Finance program (the “SCF”) with a global financial institution (the “SCF Bank”). Under the SCF, qualifying suppliers may elect to sell their receivables from us to the SCF Bank. These participating suppliers negotiate their receivables sales arrangements directly with the SCF Bank. We are not party to those agreements, nor do we provide any security or other forms of guarantees to the SCF Bank. The participation in the program is at the sole discretion of the supplier, we have no economic interest in a supplier’s decision to enter into the agreement and have no direct financial relationship with SCF Bank, as it relates to the SCF. Once a qualifying supplier elects to participate in the SCF and reaches an agreement with the SCF Bank, they elect which individual invoices they sell to the SCF Bank. The terms of our payment obligations are not impacted by a supplier’s participation in the SCF and as such, the SCF has no direct impact on our balance sheets, cash flows, or liquidity. Amounts due to suppliers who voluntarily participate in the SCF are included in accounts payable in our condensed consolidated balance sheet and our payments made under the SCF are reflected as an operating cash flow in the condensed consolidated statement of cash flows. As of June 30, 2023, the amount of obligations outstanding that we have confirmed as valid under the SCF was not material.
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Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance: In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and subsequently in January 2021, FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, both of which provide optional expedients and exceptions to applying the guidance on contract modifications, hedge accounting, and other transactions, to simplify the accounting for transitioning from the London Interbank Offered Rate (“LIBOR”), and other interbank offered rates expected to be discontinued, to alternative reference rates. Each of these ASUs were effective upon its issuance and could be applied prospectively through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which amended the sunset date of the guidance in Topic 848 to December 31, 2024 from December 31, 2022. We adopted the standards as of January 1, 2023. As a result of the planned phase out of the LIBOR as a reference rate and adoption of ASU 2020-04 and ASU 2021-01, we have amended our Credit Agreement and interest rate swaps and applied practical expedients under the guidance. The adoption did not have a material impact on our condensed consolidated financial statements. In September 2022, FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. These amendments require disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. These amendments are effective for fiscal years beginning after December 31, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 31, 2023. We adopted the standard as of January 1, 2023. The adoption relates to disclosure only, and does not have an impact on our condensed consolidated financial statements.
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Inventories (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consisted of the following:
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Debt (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consisted of the following:
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Financial Instruments (Tables) |
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Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Notional Amounts, Annual Rates, Weighted Average Annual Effective Rates and Fair Value of Interest Rate Derivatives | The following table provides the notional amounts, the annual rates, the weighted average annual effective rates, and the fair value of our interest rate derivatives:
(1)Based on the interest rate swaps prior to the amendments entered into in February 2023, which was based on the LIBOR as of December 31, 2022.
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Accumulated Other Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Balances for Each Component of Accumulated Other Comprehensive Income | The following table summarizes the changes in our balances of each component of accumulated other comprehensive income.
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Adjusted EBITDA |
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Summary of Segment Assets | Segment assets consisted of the following:
(1)Unallocated includes the elimination of intersegment revenues, other revenue adjustments and certain corporate costs, depreciation and amortization and assets not allocated to segments. Unallocated assets are comprised of cash, accounts receivable, other receivables, entity-wide property, plant and equipment, entity-wide operating lease right-of-use assets, goodwill, intangible assets, related party receivables and other assets.
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Reconciliation of Segment Adjusted EBITDA to GAAP Income Before Income Taxes | The following table presents a reconciliation of segment Adjusted EBITDA to GAAP income before income taxes:
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Summary of Net Revenues by Product Line | Net revenues by product line are as follows:
(1)Waste and storage products are comprised of our Hefty Waste & Storage and Presto Products segments.
|
Description of Business and Basis of Presentation - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
category
Segment
| |
Accounting Policies [Abstract] | |
Number of product categories | category | 3 |
Number of reportable segments | Segment | 4 |
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 180 | $ 215 |
Work in progress | 65 | 81 |
Finished goods | 321 | 383 |
Spare parts | 48 | 43 |
Inventories | $ 614 | $ 722 |
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Deferred financing transaction costs | $ (13) | $ (14) |
Original issue discounts | (1) | (2) |
Total debt | 2,081 | 2,091 |
Less: current portion | (25) | (25) |
Long-term debt | 2,056 | 2,066 |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Debt | $ 2,095 | $ 2,107 |
Debt - Additional Information (Details) - USD ($) $ in Millions |
1 Months Ended | 6 Months Ended |
---|---|---|
Feb. 29, 2020 |
Jun. 30, 2023 |
|
Debt Instrument [Line Items] | ||
Quarterly unreimbursed letters of credit minimum percentage | 35.00% | |
Outstanding borrowings under revolving facility | $ 0 | |
Letters of credit outstanding | $ 6 | |
Debt instrument, maturity period | Feb. 28, 2025 | |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, periodic payment | $ 6 | |
Debt instrument, maturity period | Feb. 28, 2027 | |
External Debt Facilities | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 0.75% | |
External Debt Facilities | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 1.75% | |
External Debt Facilities | Term loan facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, maximum borrowing capacity | $ 2,475 | |
External Debt Facilities | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, maximum borrowing capacity | $ 250 |
Financial Instruments - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Derivative Instruments Gain Loss [Line Items] | ||
Aggregate notional amount | $ 1,150 | $ 1,150 |
Interest Rate Swap One | Cash Flow Hedges | ||
Derivative Instruments Gain Loss [Line Items] | ||
Aggregate notional amount | $ 1,150 | |
Minimum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative, annual SOFR rate | 2.15% | 2.19% |
Minimum | Interest Rate Swaps | Cash Flow Hedges | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative, annual SOFR rate | 0.40% | |
Derivative, effective interest rate | 2.15% | |
Cash flow hedge contracts period | 2 years | |
Maximum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative, annual SOFR rate | 5.15% | 5.19% |
Maximum | Interest Rate Swaps | Cash Flow Hedges | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative, annual SOFR rate | 3.40% | |
Derivative, effective interest rate | 5.15% | |
Cash flow hedge contracts period | 3 years |
Financial Instruments - Summary of Notional Amounts, Annual Rates, Weighted Average Annual Effective Rates and Fair Value of Interest Rate Derivatives (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative Instruments Gain Loss [Line Items] | ||
Notional Amount | $ 1,150 | $ 1,150 |
Weighted Average Annual Effective Rate | 4.38% | 4.42% |
Fair Value - Other Current Assets | $ 30 | $ 25 |
Fair Value - Other Assets | $ 21 | $ 23 |
Minimum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Annual Rate | 2.15% | 2.19% |
Maximum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Annual Rate | 5.15% | 5.19% |
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of common stock available for issuance (in shares) | 10,500,000 | 10,500,000 | |||
Shares issued (in shares) | 700,000 | 700,000 | 400,000 | ||
Stock-based compensation expense | $ 3 | $ 2 | $ 6 | $ 3 | |
RSUs | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares granted (in shares) | 0 | 200,000 | |||
PSUs | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares granted (in shares) | 0 | 200,000 |
Segment Information - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
category
Segment
| |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 4 |
Presto Products | |
Segment Reporting Information [Line Items] | |
Number of brand product catagories | category | 4 |
Segment Information - Summary of Segment Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Assets | $ 4,882 | $ 4,929 |
Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,351 | 1,460 |
Operating Segment | Reynolds Cooking & Baking | ||
Segment Reporting Information [Line Items] | ||
Assets | 609 | 646 |
Operating Segment | Hefty Waste & Storage | ||
Segment Reporting Information [Line Items] | ||
Assets | 278 | 314 |
Operating Segment | Hefty Tableware | ||
Segment Reporting Information [Line Items] | ||
Assets | 217 | 226 |
Operating Segment | Presto Products | ||
Segment Reporting Information [Line Items] | ||
Assets | 247 | 274 |
Unallocated | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 3,531 | $ 3,469 |
Segment Information - Reconciliation of Segment Adjusted EBITDA to GAAP Income Before Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 150 | $ 118 | $ 232 | $ 230 |
Adjustments to reconcile to GAAP income before income taxes | ||||
Depreciation and amortization | (30) | (29) | (61) | (57) |
Interest expense, net | (31) | (16) | (60) | (28) |
IPO and separation-related costs | 0 | (3) | 0 | (7) |
Income before income taxes | 89 | 70 | 111 | 138 |
Segment Adjusted EBITDA | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 175 | 132 | 283 | 247 |
Adjustments to reconcile to GAAP income before income taxes | ||||
Depreciation and amortization | (21) | (20) | (43) | (40) |
Corporate / Unallocated Expenses | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (25) | (14) | (51) | (17) |
Adjustments to reconcile to GAAP income before income taxes | ||||
Depreciation and amortization | $ (9) | $ (9) | $ (18) | $ (17) |
Segment Information - Summary of Net Revenues by Product Line (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | $ 940 | $ 917 | $ 1,814 | $ 1,762 |
Waste and Storage Products | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 374 | 388 | 751 | 758 |
Cooking products | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 321 | 294 | 604 | 562 |
Tableware | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 251 | 240 | 475 | 450 |
Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | $ (6) | $ (5) | $ (16) | $ (8) |
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Related Party Transaction [Line Items] | ||||
Revenues | $ 940 | $ 917 | $ 1,814 | $ 1,762 |
Costs of sales | 712 | 733 | 1,430 | 1,410 |
PEI Group | ||||
Related Party Transaction [Line Items] | ||||
Revenues | 18 | 21 | 40 | 48 |
Products purchased | 93 | 100 | 199 | 194 |
PFL | ||||
Related Party Transaction [Line Items] | ||||
Dividend paid | 36 | 36 | 71 | 71 |
Freight and Warehousing Costs | PEI Group | ||||
Related Party Transaction [Line Items] | ||||
Costs of sales | $ 9 | $ 15 | $ 18 | $ 29 |
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jul. 27, 2023 |
Aug. 09, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Subsequent Event [Line Items] | ||||||||
Cash dividend per common share (in USD per share) | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.23 | ||||
Repayment of debt | $ 12 | $ 12 | ||||||
Subsequent Events | ||||||||
Subsequent Event [Line Items] | ||||||||
Cash dividend per common share (in USD per share) | $ 0.23 | |||||||
Subsequent Events | Term loan facility | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayment of debt | $ 100 |
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