QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Class A Common Stock | |||||
Class B Common Stock |
Item | Page | |||||||
1 | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
1A | ||||||||
2 | ||||||||
6 | ||||||||
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of products sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Restructuring charges | |||||||||||||||||||||||
Acquisition and integration related costs | |||||||||||||||||||||||
Non-cash asset impairment charges | |||||||||||||||||||||||
Gain on disposal of properties, plants and equipment, net | ( | ( | ( | ( | |||||||||||||||||||
(Gain) loss on disposal of businesses, net | ( | ||||||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Debt extinguishment charges | |||||||||||||||||||||||
Non-cash pension settlement income | ( | ||||||||||||||||||||||
Other (income) expense, net | ( | ||||||||||||||||||||||
Income before income tax expense and equity earnings of unconsolidated affiliates, net | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Equity earnings of unconsolidated affiliates, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to Greif, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Basic earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | $ | $ | $ | $ | |||||||||||||||||||
Class B common stock | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | $ | $ | $ | $ | |||||||||||||||||||
Class B common stock | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average number of Class A common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Weighted-average number of Class B common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Cash dividends declared per common share: | |||||||||||||||||||||||
Class A common stock | $ | $ | $ | $ | |||||||||||||||||||
Class B common stock | $ | $ | $ | $ |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation | ( | ( | |||||||||||||||||||||
Derivative financial instruments | ( | ( | ( | ||||||||||||||||||||
Minimum pension liabilities | ( | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | |||||||||||||||||||||||
Comprehensive income attributable to Greif, Inc. | $ | $ | $ | $ |
(in millions) | July 31, 2020 | October 31, 2019 | |||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, less allowance of $ | |||||||||||
Inventories: | |||||||||||
Raw materials | |||||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
Assets held for sale | |||||||||||
Assets held by special purpose entities | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Long-term assets | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net of amortization | |||||||||||
Deferred tax assets | |||||||||||
Assets held by special purpose entities | |||||||||||
Pension asset | |||||||||||
Operating lease assets | |||||||||||
Other long-term assets | |||||||||||
Properties, plants and equipment | |||||||||||
Timber properties, net of depletion | |||||||||||
Land | |||||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Capital projects in progress | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Total assets | $ | $ |
(in millions) | July 31, 2020 | October 31, 2019 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued payroll and employee benefits | |||||||||||
Restructuring reserves | |||||||||||
Current portion of long-term debt | |||||||||||
Short-term borrowings | |||||||||||
Liabilities held by special purpose entities | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Other current liabilities | |||||||||||
Long-term liabilities | |||||||||||
Long-term debt | |||||||||||
Operating lease liabilities | |||||||||||
Deferred tax liabilities | |||||||||||
Pension liabilities | |||||||||||
Postretirement benefit obligations | |||||||||||
Liabilities held by special purpose entities | |||||||||||
Contingent liabilities and environmental reserves | |||||||||||
Mandatorily redeemable noncontrolling interests | |||||||||||
Long-term income tax payable | |||||||||||
Other long-term liabilities | |||||||||||
Commitments and contingencies (Note 11) | |||||||||||
Redeemable noncontrolling interests (Note 17) | |||||||||||
Equity | |||||||||||
Common stock, without par value | |||||||||||
Treasury stock, at cost | ( | ( | |||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation | ( | ( | |||||||||
Derivative financial instruments | ( | ( | |||||||||
Minimum pension liabilities | ( | ( | |||||||||
Total Greif, Inc. shareholders' equity | |||||||||||
Noncontrolling interests | |||||||||||
Total shareholders' equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
Nine Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, depletion and amortization | |||||||||||
Non-cash asset impairment charges | |||||||||||
Non-cash pension settlement income | ( | ||||||||||
Gain on disposals of properties, plants and equipment, net | ( | ( | |||||||||
Loss on disposals of businesses, net | |||||||||||
Unrealized foreign exchange (gain) loss | ( | ||||||||||
Deferred income tax benefit | ( | ( | |||||||||
Transition tax expense | |||||||||||
Debt extinguishment charges | |||||||||||
Non-cash lease expense | |||||||||||
Other, net | ( | ||||||||||
Increase (decrease) in cash from changes in certain assets and liabilities: | |||||||||||
Trade accounts receivable | |||||||||||
Inventories | ( | ( | |||||||||
Deferred purchase price on sold receivables | ( | ||||||||||
Accounts payable | ( | ||||||||||
Restructuring reserves | |||||||||||
Operating leases | ( | ||||||||||
Pension and post-retirement benefit liabilities | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net cash provided by (used in) operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions of companies, net of cash acquired | ( | ||||||||||
Purchases of properties, plants and equipment | ( | ( | |||||||||
Purchases of and investments in timber properties | ( | ( | |||||||||
Purchases of equity method investments | ( | ||||||||||
Proceeds from the sale of properties, plants, equipment and other assets | |||||||||||
Proceeds from the sale of businesses | |||||||||||
Proceeds from insurance recoveries | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | |||||||||||
Payments on long-term debt | ( | ( | |||||||||
Proceeds (payments) on short-term borrowings, net | ( | ||||||||||
Proceeds from trade accounts receivable credit facility | |||||||||||
Payments on trade accounts receivable credit facility | ( | ( | |||||||||
Dividends paid to Greif, Inc. shareholders | ( | ( | |||||||||
Dividends paid to noncontrolling interests | ( | ( | |||||||||
Payments for debt extinguishment and issuance costs | ( | ||||||||||
Purchases of redeemable noncontrolling interest | ( | ||||||||||
Cash contribution from noncontrolling interest holder | |||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Reclassification of cash to assets held for sale | |||||||||||
Effects of exchange rates on cash | |||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
(in millions) | Amounts Recognized as of the Acquisition Date | Measurement Period Adjustments (1) | Amount Recognized as of Acquisition Date (as Adjusted) | ||||||||
Fair value of consideration transferred | |||||||||||
Cash consideration | $ | $ | $ | ||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||||||
Accounts receivable | $ | $ | $ | ||||||||
Inventories | ( | ||||||||||
Prepaid and other current assets | ( | ||||||||||
Intangibles | |||||||||||
Other long-term assets | |||||||||||
Properties, plants and equipment | ( | ||||||||||
Total assets acquired | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Accrued payroll and employee benefits | ( | ( | ( | ||||||||
Other current liabilities | ( | ( | |||||||||
Long-term deferred tax liability | ( | ( | |||||||||
Pension and postretirement obligations | ( | ( | |||||||||
Other long-term liabilities | ( | ( | ( | ||||||||
Total liabilities assumed | ( | ( | |||||||||
Total identifiable net assets | $ | $ | $ | ||||||||
Goodwill | $ | $ | ( | $ |
(in millions) | Final Purchase Price Allocation | Weighted Average Estimated Useful Life | ||||||
Customer relationships | $ | |||||||
Trademarks | ||||||||
Other | ||||||||
Total intangible assets | $ |
(in millions) | Rigid Industrial Packaging & Services | Paper Packaging & Services | Total | ||||||||||||||
Balance at October 31, 2019 | $ | $ | $ | ||||||||||||||
Goodwill allocated to divestitures | ( | ( | ( | ||||||||||||||
Goodwill adjustments related to acquisitions | |||||||||||||||||
Currency translation | |||||||||||||||||
Balance at July 31, 2020 | $ | $ | $ |
(in millions) | Gross Intangible Assets | Accumulated Amortization | Net Intangible Assets | ||||||||||||||
July 31, 2020: | |||||||||||||||||
Indefinite lived: | |||||||||||||||||
Trademarks and patents | $ | $ | $ | ||||||||||||||
Definite lived: | |||||||||||||||||
Customer relationships | |||||||||||||||||
Trademarks, patents and trade names | |||||||||||||||||
Non-compete agreements | |||||||||||||||||
Other | |||||||||||||||||
Total | $ | $ | $ |
(in millions) | Gross Intangible Assets | Accumulated Amortization | Net Intangible Assets | ||||||||||||||
October 31, 2019: | |||||||||||||||||
Indefinite lived: | |||||||||||||||||
Trademarks and patents | $ | $ | $ | ||||||||||||||
Definite lived: | |||||||||||||||||
Customer relationships | |||||||||||||||||
Trademarks and patents | |||||||||||||||||
Non-compete agreements | |||||||||||||||||
Other | |||||||||||||||||
Total | $ | $ | $ |
(in millions) | Employee Separation Costs | Other Costs | Total | ||||||||||||||
Balance at October 31, 2019 | $ | $ | $ | ||||||||||||||
Costs incurred and charged to expense | |||||||||||||||||
Costs paid or otherwise settled | ( | ( | ( | ||||||||||||||
Balance at July 31, 2020 | $ | $ | $ |
(in millions) | Total Amounts Expected to be Incurred | Amounts Incurred During the nine months ended July 31, 2020 | Amounts Remaining to be Incurred | ||||||||||||||
Rigid Industrial Packaging & Services | |||||||||||||||||
Employee separation costs | $ | $ | $ | ||||||||||||||
Other restructuring costs | |||||||||||||||||
Flexible Products & Services | |||||||||||||||||
Employee separation costs | |||||||||||||||||
Other restructuring costs | |||||||||||||||||
Paper Packaging & Services | |||||||||||||||||
Employee separation costs | |||||||||||||||||
Other restructuring costs | |||||||||||||||||
$ | $ | $ |
(in millions) | July 31, 2020 | October 31, 2019 | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, less allowance of $ | |||||||||||
Inventories | |||||||||||
Properties, plants and equipment, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Accounts payable | $ | $ | |||||||||
Other liabilities | |||||||||||
Total liabilities | $ | $ |
(in millions) | July 31, 2020 | ||||
Cash and cash equivalents | $ | ||||
Trade accounts receivable, less allowance of $ | |||||
Inventories | |||||
Properties, plants and equipment, net | |||||
Other assets | |||||
Total assets | $ | ||||
Accounts payable | $ | ||||
Other liabilities | |||||
Total liabilities | $ |
(in millions) | July 31, 2020 | October 31, 2019 | |||||||||
2019 Credit Agreement - Term Loans | $ | $ | |||||||||
Senior Notes due 2027 | |||||||||||
Senior Notes due 2021 | |||||||||||
Accounts receivable credit facilities | |||||||||||
2019 Credit Agreement - Revolving Credit Facility | |||||||||||
Other debt | |||||||||||
Less: current portion | |||||||||||
Less: deferred financing costs | |||||||||||
Long-term debt, net | $ | $ |
July 31, 2020 | |||||||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Balance Sheet Location | ||||||||||||||||||||||||
Interest rate derivatives | ( | ( | Other current liabilities and other long-term liabilities | ||||||||||||||||||||||||||
Foreign exchange hedges | Other current assets | ||||||||||||||||||||||||||||
Foreign exchange hedges | ( | ( | Other current liabilities | ||||||||||||||||||||||||||
Insurance annuity | Other long-term assets | ||||||||||||||||||||||||||||
Cross currency swap | Other current assets and other long-term assets | ||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( |
October 31, 2019 | |||||||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Balance Sheet Location | ||||||||||||||||||||||||
Interest rate derivatives | $ | $ | $ | $ | Other long-term assets and other current assets | ||||||||||||||||||||||||
Interest rate derivatives | ( | ( | Other long-term liabilities and other current liabilities | ||||||||||||||||||||||||||
Foreign exchange hedges | Other current assets | ||||||||||||||||||||||||||||
Foreign exchange hedges | ( | ( | Other current liabilities | ||||||||||||||||||||||||||
Insurance annuity | Other long-term assets | ||||||||||||||||||||||||||||
Cross currency swap | Other current assets and other long-term assets | ||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ |
(in millions) | July 31, 2020 | October 31, 2019 | |||||||||
Senior Notes due 2021 estimated fair value | $ | $ | |||||||||
Senior Notes due 2027 estimated fair value | |||||||||||
Assets held by special purpose entities estimated fair value |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||
(in millions) | Fair Value of Impairment | Valuation Technique | Unobservable Input | Range of Input Values | |||||||||||||||||||
July 31, 2020 | |||||||||||||||||||||||
Impairment of Long Lived Assets | $ | Discounted Cash Flows; Indicative Bids | Discounted Cash Flows; Indicative Bids | N/A | |||||||||||||||||||
Total | $ | ||||||||||||||||||||||
July 31, 2019 | |||||||||||||||||||||||
Impairment of Net Assets Held for Sale | $ | Indicative Bids | Indicative Bids | N/A | |||||||||||||||||||
Total | $ |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||
Net periodic pension cost | $ | $ | $ | $ |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Interest cost | $ | $ | $ | $ | |||||||||||||||||||
Amortization of prior service benefit | ( | ( | ( | ( | |||||||||||||||||||
Net periodic post-retirement benefit | $ | $ | ( | $ | ( | $ | ( |
Basic Class A EPS | = | 40% * Average Class A Shares Outstanding | * | Undistributed Net Income | + | Class A Dividends Per Share | ||||||||||||||
40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding | Average Class A Shares Outstanding | |||||||||||||||||||
Diluted Class A EPS | = | 40% * Average Class A Shares Outstanding | * | Undistributed Net Income | + | Class A Dividends Per Share | ||||||||||||||
40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding | Average Diluted Class A Shares Outstanding | |||||||||||||||||||
Basic Class B EPS | = | 60% * Average Class B Shares Outstanding | * | Undistributed Net Income | + | Class B Dividends Per Share | ||||||||||||||
40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding | Average Class B Shares Outstanding |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Numerator for basic and diluted EPS | |||||||||||||||||||||||
Net income attributable to Greif, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Cash dividends | ( | ( | ( | ( | |||||||||||||||||||
Undistributed net income attributable to Greif, Inc. | $ | ( | $ | $ | ( | $ |
Authorized Shares | Issued Shares | Outstanding Shares | Treasury Shares | ||||||||||||||||||||
July 31, 2020 | |||||||||||||||||||||||
Class A Common Stock | |||||||||||||||||||||||
Class B Common Stock | |||||||||||||||||||||||
October 31, 2019 | |||||||||||||||||||||||
Class A Common Stock | |||||||||||||||||||||||
Class B Common Stock |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Class A Common Stock: | |||||||||||||||||||||||
Basic shares | |||||||||||||||||||||||
Assumed conversion of restricted shares | |||||||||||||||||||||||
Diluted shares | |||||||||||||||||||||||
Class B Common Stock: | |||||||||||||||||||||||
Basic and diluted shares |
(in millions) | Balance Sheet Classification | July 31, 2020 | ||||||
Lease Assets | ||||||||
Operating lease assets | Operating lease assets | $ | ||||||
Finance lease assets | Other long-term assets | |||||||
Total lease assets | $ | |||||||
Lease Liabilities | ||||||||
Current operating lease liabilities | Current portion of operating lease liabilities | $ | ||||||
Current finance lease liabilities | Other current liabilities | |||||||
Total current lease liabilities | ||||||||
Non-current operating lease liabilities | Operating lease liabilities | |||||||
Non-current finance lease liabilities | Other long-term liabilities | |||||||
Total non-current lease liabilities | ||||||||
Total lease liabilities | $ |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||
(in millions) | 2020 | 2020 | |||||||||
Operating lease cost | $ | $ | |||||||||
Finance lease cost | |||||||||||
Variable lease cost* | |||||||||||
Total lease cost | $ | $ |
(in millions) | Operating Leases | Finance Leases | Total expected payments | ||||||||||||||
2020 | $ | $ | $ | ||||||||||||||
2021 | |||||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total lease payments | $ | $ | $ | ||||||||||||||
Less: Interest | ( | ( | ( | ||||||||||||||
Lease liabilities | $ | $ | $ |
Weighted-average remaining lease term (years): | |||||
Operating leases | |||||
Finance leases | |||||
Weighted-average discount rate: | |||||
Operating leases | % | ||||
Finance leases | % |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||
(in millions) | 2020 | 2020 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows used for operating leases | $ | $ | |||||||||
Financing cash flows used for finance leases | |||||||||||
Leased assets obtained in exchange for new operating lease liabilities | |||||||||||
Leased assets obtained in exchange for new finance lease liabilities |
Year Ended October 31, | |||||||||||||||||
(in millions) | 2019 | 2018 | 2017 | ||||||||||||||
Rent Expense | $ | $ | $ |
(in millions) | Operating Leases | Capital Leases | |||||||||
Year(s): | |||||||||||
2020 | $ | $ | |||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
Thereafter | |||||||||||
Total | $ | $ |
Three Months Ended July 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Amount | Treasury Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of April 30, 2020 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum pension liability adjustment, net of immaterial income tax expense | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | . | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests and other | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of July 31, 2020 | $ | $ | ( | $ | $ | ( | $ | $ | $ |
Nine Months Ended July 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Amount | Treasury Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31, 2019 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum pension liability adjustment, net of $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | . | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests and other | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term incentive shares issued | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock, executive | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock, directors | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As of July 31, 2020 | $ | $ | ( | $ | $ | ( | $ | $ | $ |
Three Months Ended July 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Amount | Treasury Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of April 30, 2019 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of income tax benefit of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum pension liability adjustment, net of immaterial income tax | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of July 31, 2019 | $ | $ | ( | $ | $ | ( | $ | $ | $ |
Nine Months Ended July 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Amount | Treasury Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31, 2018 | $ | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, net of income tax benefit of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum pension liability adjustment, net of immaterial income tax | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-16 | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock, directors | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term incentive shares issued | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As of July 31, 2019 | $ | $ | ( | $ | $ | ( | $ | $ | $ |
(in millions) | Foreign Currency Translation | Derivative Financial Instruments | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Balance as of October 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other Comprehensive Income (Loss) | ( | ||||||||||||||||||||||
Balance as of July 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( |
(in millions) | Foreign Currency Translation | Derivative Financial Instruments | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Balance as of October 31, 2018 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other Comprehensive Income (Loss) | ( | ( | ( | ||||||||||||||||||||
Balance as of July 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended July 31, 2020 | |||||||||||||||||||||||
(in millions) | United States | Europe, Middle East and Africa | Asia Pacific and Other Americas | Total | |||||||||||||||||||
Rigid Industrial Packaging & Services | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Flexible Products & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Nine Months Ended July 31, 2020 | |||||||||||||||||||||||
(in millions) | United States | Europe, Middle East and Africa | Asia Pacific and Other Americas | Total | |||||||||||||||||||
Rigid Industrial Packaging & Services | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Flexible Products & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Three Months Ended July 31, 2019 | |||||||||||||||||||||||
(in millions) | United States | Europe, Middle East and Africa | Asia Pacific and Other Americas | Total | |||||||||||||||||||
Rigid Industrial Packaging & Services | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Flexible Products & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Nine Months Ended July 31, 2019 | |||||||||||||||||||||||
(in millions) | United States | Europe, Middle East and Africa | Asia Pacific and Other Americas | Total | |||||||||||||||||||
Rigid Industrial Packaging & Services | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Flexible Products & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Operating profit: | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Flexible Products & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total operating profit | $ | $ | $ | $ | |||||||||||||||||||
Depreciation, depletion and amortization expense: | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | $ | $ | $ | |||||||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Flexible Products & Services | |||||||||||||||||||||||
Land Management | |||||||||||||||||||||||
Total depreciation, depletion and amortization expense | $ | $ | $ | $ |
(in millions) | July 31, 2020 | October 31, 2019 | |||||||||
Assets: | |||||||||||
Rigid Industrial Packaging & Services | $ | $ | |||||||||
Paper Packaging & Services | |||||||||||
Flexible Products & Services | |||||||||||
Land Management | |||||||||||
Total segments | |||||||||||
Corporate and other | |||||||||||
Total assets | $ | $ | |||||||||
Long lived assets, net*: | |||||||||||
United States | $ | $ | |||||||||
Europe, Middle East and Africa | |||||||||||
Asia Pacific and other Americas | |||||||||||
Total long-lived assets, net | $ | $ | |||||||||
* current year disclosure includes impact of capitalization of operating lease assets |
(in millions) | Mandatorily Redeemable Noncontrolling Interest | ||||
Balance as of October 31, 2019 | $ | ||||
Current period mark to redemption value | |||||
Balance as of July 31, 2020 | $ | ||||
(in millions) | Redeemable Noncontrolling Interest | ||||
Balance as of October 31, 2019 | $ | ||||
Current period mark to redemption value | ( | ||||
Redeemable noncontrolling interest share of income and other | |||||
Dividends to redeemable noncontrolling interest and other | ( | ||||
Balance as of July 31, 2020 | $ |
Three Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
Net sales: | |||||||||||
Rigid Industrial Packaging & Services | $ | 548.5 | $ | 642.1 | |||||||
Paper Packaging & Services | 459.3 | 530.0 | |||||||||
Flexible Products & Services | 69.3 | 74.5 | |||||||||
Land Management | 5.9 | 6.0 | |||||||||
Total net sales | $ | 1,083.0 | $ | 1,252.6 | |||||||
Operating (loss) profit: | |||||||||||
Rigid Industrial Packaging & Services | $ | 42.5 | $ | 54.3 | |||||||
Paper Packaging & Services | 13.3 | 63.1 | |||||||||
Flexible Products & Services | 4.1 | 5.0 | |||||||||
Land Management | 2.0 | 3.2 | |||||||||
Total operating profit | $ | 61.9 | $ | 125.6 | |||||||
EBITDA: | |||||||||||
Rigid Industrial Packaging & Services | $ | 61.1 | $ | 74.3 | |||||||
Paper Packaging & Services | 50.9 | 103.2 | |||||||||
Flexible Products & Services | 5.8 | 7.1 | |||||||||
Land Management | 3.2 | 4.3 | |||||||||
Total EBITDA | $ | 121.0 | $ | 188.9 | |||||||
Adjusted EBITDA: | |||||||||||
Rigid Industrial Packaging & Services | $ | 77.5 | $ | 82.8 | |||||||
Paper Packaging & Services | 72.0 | 111.0 | |||||||||
Flexible Products & Services | 7.0 | 7.2 | |||||||||
Land Management | 2.9 | 2.8 | |||||||||
Total Adjusted EBITDA | $ | 159.4 | $ | 203.8 |
Three Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
Net income | $ | 24.4 | $ | 67.5 | |||||||
Plus: interest expense, net | 29.8 | 34.5 | |||||||||
Plus: debt extinguishment charges | — | 0.1 | |||||||||
Plus: income tax expense | 6.9 | 26.8 | |||||||||
Plus: depreciation, depletion and amortization expense | 59.9 | 60.0 | |||||||||
EBITDA | $ | 121.0 | $ | 188.9 | |||||||
Net income | $ | 24.4 | $ | 67.5 | |||||||
Plus: interest expense, net | 29.8 | 34.5 | |||||||||
Plus: debt extinguishment charges | — | 0.1 | |||||||||
Plus: income tax expense | 6.9 | 26.8 | |||||||||
Plus: other (income) expense, net | 1.1 | (1.1) | |||||||||
Plus: equity earnings of unconsolidated affiliates, net of tax | (0.3) | (2.2) | |||||||||
Operating profit | 61.9 | 125.6 | |||||||||
Less: other (income) expense, net | 1.1 | (1.1) | |||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (0.3) | (2.2) | |||||||||
Plus: depreciation, depletion and amortization expense | 59.9 | 60.0 | |||||||||
EBITDA | 121.0 | 188.9 | |||||||||
Plus: restructuring charges | 19.1 | 9.1 | |||||||||
Plus: acquisition and integration related costs | 3.6 | 5.8 | |||||||||
Plus: non-cash asset impairment charges | 15.5 | — | |||||||||
Plus: incremental COVID-19 costs, net | 1.0 | — | |||||||||
Less: gain on disposal of properties, plants, equipment, and businesses, net | (0.8) | — | |||||||||
Adjusted EBITDA | $ | 159.4 | $ | 203.8 |
Three Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
Rigid Industrial Packaging & Services | |||||||||||
Operating profit | $ | 42.5 | $ | 54.3 | |||||||
Less: other expense, net | 1.2 | 0.8 | |||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (0.3) | (2.2) | |||||||||
Plus: depreciation and amortization expense | 19.5 | 18.6 | |||||||||
EBITDA | 61.1 | 74.3 | |||||||||
Plus: restructuring charges | 15.6 | 7.0 | |||||||||
Plus: acquisition and integration related costs | — | 0.1 | |||||||||
Plus: non-cash asset impairment charges | 2.2 | — | |||||||||
Plus: incremental COVID-19 costs, net | — | — | |||||||||
Less: (gain) loss on disposal of properties, plants, equipment, and businesses, net | (1.4) | 1.4 | |||||||||
Adjusted EBITDA | $ | 77.5 | $ | 82.8 | |||||||
Paper Packaging & Services | |||||||||||
Operating profit | $ | 13.3 | $ | 63.1 | |||||||
Less: other (income) expense, net | 0.2 | (1.2) | |||||||||
Plus: depreciation and amortization expense | 37.8 | 38.9 | |||||||||
EBITDA | 50.9 | 103.2 | |||||||||
Plus: restructuring charges | 3.4 | 2.1 | |||||||||
Plus: acquisition and integration related costs | 3.6 | 5.7 | |||||||||
Plus: non-cash asset impairment charges | 12.4 | — | |||||||||
Plus: incremental COVID-19 costs, net | 0.8 | — | |||||||||
Less: loss on disposal of properties, plants, equipment, and businesses, net | 0.9 | — | |||||||||
Adjusted EBITDA | $ | 72.0 | $ | 111.0 | |||||||
Flexible Products & Services | |||||||||||
Operating profit | $ | 4.1 | $ | 5.0 | |||||||
Less: other income, net | (0.3) | (0.7) | |||||||||
Plus: depreciation and amortization expense | 1.4 | 1.4 | |||||||||
EBITDA | 5.8 | 7.1 | |||||||||
Plus: restructuring charges | 0.1 | — | |||||||||
Plus: incremental COVID-19 costs, net | 0.2 | — | |||||||||
Plus: non-cash asset impairment charges | 0.9 | — | |||||||||
Less: loss on disposal of properties, plants, equipment, and businesses, net | — | 0.1 | |||||||||
Adjusted EBITDA | $ | 7.0 | $ | 7.2 | |||||||
Land Management | |||||||||||
Operating profit | $ | 2.0 | $ | 3.2 | |||||||
Plus: depreciation, depletion and amortization expense | 1.2 | 1.1 | |||||||||
EBITDA | 3.2 | 4.3 | |||||||||
Plus: restructuring charges | — | — | |||||||||
Less: gain on disposal of properties, plants, equipment, and businesses, net | (0.3) | (1.5) | |||||||||
Adjusted EBITDA | $ | 2.9 | $ | 2.8 |
Summary | |||||||||||
Three Months Ended July 31, | |||||||||||
2020 | 2019 | ||||||||||
Non-U.S. % of Consolidated Net Sales | 39.1 | % | 38.7 | % | |||||||
U.S. % of Consolidated Net Sales | 60.9 | % | 61.3 | % | |||||||
100.0 | % | 100.0 | % | ||||||||
Non-U.S. % of Consolidated I.B.I.T. | 115.4 | % | 45.0 | % | |||||||
U.S. % of Consolidated I.B.I.T. | (15.4) | % | 55.0 | % | |||||||
100.0 | % | 100.0 | % | ||||||||
Non-U.S. % of Consolidated I.B.I.T. before Adjustments | 60.1 | % | 43.8 | % | |||||||
U.S. % of Consolidated I.B.I.T. before Adjustments | 39.9 | % | 56.2 | % | |||||||
100.0 | % | 100.0 | % |
Non-U.S. I.B.I.T. Reconciliation | |||||||||||
Three Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
Non-U.S. I.B.I.T. | $ | 35.8 | $ | 41.5 | |||||||
Non-cash asset impairment charges | 2.5 | — | |||||||||
Restructuring charges | 3.0 | 6.0 | |||||||||
Acquisition and integration related costs | — | 0.1 | |||||||||
Gain on sale of businesses, net | — | (0.1) | |||||||||
Total Non-U.S. Adjustments | 5.5 | 6.0 | |||||||||
Non-U.S. I.B.I.T. before Adjustments | $ | 41.3 | $ | 47.5 |
U.S. I.B.I.T. Reconciliation | |||||||||||
Three Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
U.S. I.B.I.T. | $ | (4.8) | $ | 50.6 | |||||||
Non-cash asset impairment charges | 13.0 | — | |||||||||
Restructuring charges | 16.1 | 3.1 | |||||||||
Acquisition and integration related costs | 3.6 | 5.7 | |||||||||
Debt extinguishment charges | — | 0.1 | |||||||||
(Gain) Loss on sale of businesses, net | (0.5) | 1.4 | |||||||||
Total U.S. Adjustments | 32.2 | 10.3 | |||||||||
U.S. I.B.I.T. before Adjustments | $ | 27.4 | $ | 60.9 |
Nine Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
Net sales: | |||||||||||
Rigid Industrial Packaging & Services | $ | 1,719.8 | $ | 1,871.6 | |||||||
Paper Packaging & Services | 1,414.6 | 1,244.9 | |||||||||
Flexible Products & Services | 199.7 | 226.6 | |||||||||
Land Management | 19.6 | 19.8 | |||||||||
Total net sales | $ | 3,353.7 | $ | 3,362.9 | |||||||
Operating profit: | |||||||||||
Rigid Industrial Packaging & Services | $ | 155.8 | $ | 124.6 | |||||||
Paper Packaging & Services | 40.3 | 128.6 | |||||||||
Flexible Products & Services | 10.7 | 22.2 | |||||||||
Land Management | 6.3 | 8.0 | |||||||||
Total operating profit | $ | 213.1 | $ | 283.4 | |||||||
EBITDA: | |||||||||||
Rigid Industrial Packaging & Services | $ | 211.0 | $ | 180.0 | |||||||
Paper Packaging & Services | 157.4 | 212.6 | |||||||||
Flexible Products & Services | 15.5 | 27.8 | |||||||||
Land Management | 9.4 | 11.2 | |||||||||
Total EBITDA | $ | 393.3 | $ | 431.6 | |||||||
Adjusted EBITDA: | |||||||||||
Rigid Industrial Packaging & Services | $ | 232.2 | $ | 200.4 | |||||||
Paper Packaging & Services | 229.0 | 239.6 | |||||||||
Flexible Products & Services | 18.0 | 22.8 | |||||||||
Land Management | 8.9 | 9.3 | |||||||||
Total Adjusted EBITDA | $ | 488.1 | $ | 472.1 |
Nine Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
Net income | $ | 76.3 | $ | 124.4 | |||||||
Plus: interest expense, net | 89.8 | 80.1 | |||||||||
Plus: debt extinguishment charges | — | 22.0 | |||||||||
Plus: income tax expense | 44.8 | 58.3 | |||||||||
Plus: depreciation, depletion and amortization expense | 182.4 | 146.8 | |||||||||
EBITDA | $ | 393.3 | $ | 431.6 | |||||||
Net income | $ | 76.3 | $ | 124.4 | |||||||
Plus: interest expense, net | 89.8 | 80.1 | |||||||||
Plus: non-cash pension settlement income | (0.1) | — | |||||||||
Plus: debt extinguishment charges | — | 22.0 | |||||||||
Plus: income tax expense | 44.8 | 58.3 | |||||||||
Plus: other expense, net | 3.5 | 1.0 | |||||||||
Plus: equity earnings of unconsolidated affiliates, net of tax | (1.2) | (2.4) | |||||||||
Operating profit | 213.1 | 283.4 | |||||||||
Less: other expense, net | 3.5 | 1.0 | |||||||||
Less: non-cash pension settlement income | (0.1) | — | |||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (1.2) | (2.4) | |||||||||
Plus: depreciation, depletion and amortization expense | 182.4 | 146.8 | |||||||||
EBITDA | $ | 393.3 | $ | 431.6 | |||||||
Plus: restructuring charges | 26.8 | 20.3 | |||||||||
Plus: acquisition and integration related costs | 13.5 | 22.2 | |||||||||
Plus: non-cash asset impairment charges | 16.9 | 2.1 | |||||||||
Plus: non-cash pension settlement income | (0.1) | — | |||||||||
Plus: incremental COVID-19 costs, net | 1.9 | — | |||||||||
Less: (gain) loss on disposal of properties, plants, equipment, and businesses, net | 35.8 | (4.1) | |||||||||
Adjusted EBITDA | $ | 488.1 | $ | 472.1 |
Nine Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
Rigid Industrial Packaging & Services | |||||||||||
Operating profit | $ | 155.8 | $ | 124.6 | |||||||
Less: other expense, net | 5.1 | 4.0 | |||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (1.2) | (2.4) | |||||||||
Plus: depreciation and amortization expense | 59.1 | 57.0 | |||||||||
EBITDA | $ | 211.0 | $ | 180.0 | |||||||
Plus: restructuring charges | 19.4 | 15.0 | |||||||||
Plus: acquisition and integration related costs | — | 0.4 | |||||||||
Plus: non-cash impairment charges | 3.6 | 2.1 | |||||||||
Plus: non-cash pension settlement charges | — | — | |||||||||
Plus: incremental COVID-19 costs, net | 0.3 | — | |||||||||
Less: (gain) loss on disposal of properties, plants and equipment, and businesses, net | (2.1) | 2.9 | |||||||||
Adjusted EBITDA | $ | 232.2 | $ | 200.4 | |||||||
Paper Packaging & Services | |||||||||||
Operating profit | $ | 40.3 | $ | 128.6 | |||||||
Less: other income, net | (1.2) | (2.1) | |||||||||
Less: non-cash pension settlement income | (0.1) | — | |||||||||
Plus: depreciation and amortization expense | 115.8 | 81.9 | |||||||||
EBITDA | $ | 157.4 | $ | 212.6 | |||||||
Plus: restructuring charges | 6.1 | 5.2 | |||||||||
Plus: acquisition and integration related costs | 13.5 | 21.8 | |||||||||
Plus: non-cash impairment charges | 12.4 | — | |||||||||
Plus: non-cash pension settlement income | (0.1) | — | |||||||||
Plus: incremental COVID-19 costs, net | 1.3 | — | |||||||||
Less: loss on disposal of properties, plants and equipment, and businesses, net | 38.4 | — | |||||||||
Adjusted EBITDA | $ | 229.0 | $ | 239.6 | |||||||
Flexible Products & Services | |||||||||||
Operating profit | $ | 10.7 | $ | 22.2 | |||||||
Less: other income, net | (0.4) | (0.9) | |||||||||
Plus: depreciation and amortization expense | 4.4 | 4.7 | |||||||||
EBITDA | $ | 15.5 | $ | 27.8 | |||||||
Plus: restructuring charges | 1.3 | — | |||||||||
Plus: incremental COVID-19 costs, net | 0.3 | — | |||||||||
Plus: non-cash impairment charges | 0.9 | — | |||||||||
Less: gain on disposal of properties, plants and equipment, and businesses, net | — | (5.0) | |||||||||
Adjusted EBITDA | $ | 18.0 | $ | 22.8 | |||||||
Land Management | |||||||||||
Operating profit | $ | 6.3 | $ | 8.0 | |||||||
Plus: depreciation, depletion and amortization expense | 3.1 | 3.2 | |||||||||
EBITDA | $ | 9.4 | $ | 11.2 | |||||||
Plus: restructuring charges | — | 0.1 | |||||||||
Less: gain on disposal of properties, plants and equipment, and businesses, net | (0.5) | (2.0) | |||||||||
Adjusted EBITDA | $ | 8.9 | $ | 9.3 |
Summary | |||||||||||
Nine Months Ended July 31, | |||||||||||
2020 | 2019 | ||||||||||
Non-U.S. % of Consolidated Net Sales | 38.8 | % | 41.6 | % | |||||||
U.S. % of Consolidated Net Sales | 61.2 | % | 58.4 | % | |||||||
100.0 | % | 100.0 | % | ||||||||
Non-U.S. % of Consolidated I.B.I.T. | 96.1 | % | 52.1 | % | |||||||
U.S. % of Consolidated I.B.I.T. | 3.9 | % | 47.9 | % | |||||||
100.0 | % | 100.0 | % | ||||||||
Non-U.S. % of Consolidated I.B.I.T. before Adjustments | 58.0 | % | 43.7 | % | |||||||
U.S. % of Consolidated I.B.I.T. before Adjustments | 42.0 | % | 56.3 | % | |||||||
100.0 | % | 100.0 | % |
Non-U.S. I.B.I.T. Reconciliation | |||||||||||
Nine Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
Non-U.S. I.B.I.T. | $ | 115.2 | $ | 93.9 | |||||||
Non-cash asset impairment charges | 3.9 | 2.1 | |||||||||
Restructuring charges | 5.4 | 11.2 | |||||||||
Acquisition and integration related costs | — | 0.4 | |||||||||
Loss on sale of businesses, net | — | 1.6 | |||||||||
Total Non-U.S. Adjustments | 9.3 | 15.3 | |||||||||
Non-U.S. I.B.I.T. before Adjustments | $ | 124.5 | $ | 109.2 |
U.S. I.B.I.T. Reconciliation | |||||||||||
Nine Months Ended July 31, | |||||||||||
(in millions) | 2020 | 2019 | |||||||||
U.S. I.B.I.T. | $ | 4.7 | $ | 86.4 | |||||||
Non-cash asset impairment charges | 13.0 | — | |||||||||
Non-cash pension settlement income | (0.1) | — | |||||||||
Restructuring charges | 21.4 | 9.1 | |||||||||
Acquisition-related costs | 13.5 | 21.8 | |||||||||
Debt extinguishment charges | — | 22.0 | |||||||||
Loss on sale of businesses, net | 37.9 | 1.4 | |||||||||
Total U.S. Adjustments | 85.7 | 54.3 | |||||||||
U.S. I.B.I.T. before Adjustments | $ | 90.4 | $ | 140.7 |
(in millions) | July 31, 2020 | October 31, 2019 | |||||||||
2019 Credit Agreement - Term Loans | $ | 1,549.4 | $ | 1,612.2 | |||||||
Senior Notes due 2027 | 494.9 | 494.3 | |||||||||
Senior Notes due 2021 | 235.5 | 221.7 | |||||||||
Accounts receivable credit facilities | 301.2 | 351.6 | |||||||||
2019 Credit Agreement - Revolving Credit Facility | 65.4 | 76.1 | |||||||||
Other debt | 0.2 | 0.4 | |||||||||
2,646.6 | 2,756.3 | ||||||||||
Less: current portion | 99.7 | 83.7 | |||||||||
Less: deferred financing costs | 11.6 | 13.6 | |||||||||
Long-term debt, net | $ | 2,535.3 | $ | 2,659.0 |
Exhibit No. | Description of Exhibit | |||||||
Certification of Chief Executive Officer Pursuant to Rule 13a — 14(a) of the Securities Exchange Act of 1934. | ||||||||
Certification of Chief Financial Officer Pursuant to Rule 13a — 14(a) of the Securities Exchange Act of 1934. | ||||||||
Certification of Chief Executive Officer required by Rule 13a —14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code. | ||||||||
Certification of Chief Financial Officer required by Rule 13a — 14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code. | ||||||||
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended July 31, 2020, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Income and Comprehensive Income (Loss), (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Cash Flow and (iv) Notes to Condensed Consolidated Financial Statements. |
GREIF, INC. | ||||||||
(Registrant) | ||||||||
Date: August 28, 2020 | /s/ Lawrence A. Hilsheimer | |||||||
Lawrence A. Hilsheimer, | ||||||||
Executive Vice President and Chief Financial Officer |
Date: August 28, 2020 | /s/ Peter G. Watson | ||||||||||
Peter G. Watson, President and Chief Executive Officer (Principal Executive Officer) |
Date: August 28, 2020 | /s/ Lawrence A. Hilsheimer | ||||||||||
Lawrence A. Hilsheimer, Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Date: August 28, 2020 | /s/ Peter G. Watson | ||||||||||
Peter G. Watson, President and Chief Executive Officer |
Date: August 28, 2020 | /s/ Lawrence A. Hilsheimer | ||||||||||
Lawrence A. Hilsheimer, | |||||||||||
Executive Vice President and Chief Financial Officer |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Jul. 31, 2020 |
Jul. 31, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24.4 | $ 67.5 | $ 76.3 | $ 124.4 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | 59.6 | (0.9) | 4.2 | (10.4) |
Derivative financial instruments | 2.0 | (5.0) | (20.9) | (20.7) |
Minimum pension liabilities | (2.4) | 2.3 | 20.6 | 2.2 |
Other comprehensive income (loss), net of tax | 59.2 | (3.6) | 3.9 | (28.9) |
Comprehensive income | 83.6 | 63.9 | 80.2 | 95.5 |
Comprehensive income attributable to noncontrolling interests | 0.9 | 6.1 | 3.5 | 18.7 |
Comprehensive income attributable to Greif, Inc. | $ 82.7 | $ 57.8 | $ 76.7 | $ 76.8 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions |
Jul. 31, 2020 |
Oct. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance of trade accounts receivable | $ 8.4 | $ 6.8 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
---|---|
Jul. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates. The fiscal year of Greif, Inc. and its subsidiaries (the “Company”) begins on November 1 and ends on October 31 of the following year. Any references to years or to any quarter of those years, relates to the fiscal year or quarter, as the case may be, ended in that year, unless otherwise stated. The information filed herein reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated balance sheets as of July 31, 2020 and October 31, 2019, the interim condensed consolidated statements of income and comprehensive income for the three and nine months ended July 31, 2020 and 2019 and the interim condensed consolidated statements of cash flows for the nine months ended July 31, 2020 and 2019 of the Company. The interim condensed consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and consolidated subsidiaries and investments in limited liability companies, partnerships and joint ventures in which it has controlling influence or is the primary beneficiary. Non-majority owned entities include investments in limited liability companies, partnerships and joint ventures in which the Company does not have controlling influence and are accounted for using either the equity or cost method, as appropriate. The unaudited interim condensed consolidated financial statements included in the Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2019 (the “2019 Form 10-K”). COVID-19 The preparation of financial statements requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in such financial statements. The estimates and assumptions used in the preparation of the financial statements contained in this Form 10-Q do not reflect material changes to the estimates and assumptions disclosed in the 2019 Form 10-K. Nevertheless, the Company's actual results and outcomes during the three and nine months ended July 31, 2020 have been impacted by the COVID-19 pandemic, which has caused an economic downturn on a global scale, as well as significant market disruption and volatility. Because the scope, duration and magnitude of the effects of the COVID-19 pandemic continue to evolve, the Company cannot, at this time, predict the impact the pandemic will have on its future consolidated financial position, cash flows or results of operations; however, the impact could be material. The Company's future financial results and operations depend in part on the duration and severity of the pandemic and what actions are taken to mitigate the outbreak. Newly Adopted Accounting Standards In February 2016 and July 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02 and ASU 2018-11, "Leases (Topic 842)," or Accounting Standards Codification ("ASC") 842, which amends the lease accounting and disclosure requirements in ASC 840, "Leases." The objective of this update is to increase transparency and comparability among organizations recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. The Company adopted ASU on November 1, 2019, utilizing a modified retrospective approach and did not adjust its comparative period financial information. The Company adopted the practical expedient package which permits the Company to not reassess previous conclusions whether a contract is or contains a lease, lease classification, or treatment of indirect costs for existing contracts as of the adoption date. The Company also adopted the short-term lease recognition exemption and the practical expedient allowing for the combination of lease and non-lease components for all leases except real estate, for which these components are presented separately. The Company has completed the lease collection and evaluation process, implemented a technology tool to assist with the accounting and reporting requirements of the new standard, and designed new processes and controls around leases. On the day of adoption, the Company capitalized onto the balance sheet $301.2 million of right-of-use assets and $305.8 million of lease liabilities related to operating leases. The adoption did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows, or disclosures, other than as set forth above and in Note 13 to the Interim Condensed Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The objective of this ASU is to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 were effective for all entities as of March 12, 2020 and will generally no longer be available to apply after December 31, 2022. The Company adopted this ASU as of the effective date and will utilize the optional expedients to the extent that they apply to the Company. The Company currently applies expedient guidance related to hedging relationships, which allowed the Company to amend hedge documentation, without dedesignating and redesignating, for all outstanding hedging relationships linked to expiring reference rates. The Company also has long-term debt and interest rate derivatives, as described in Notes 6 and 7 to the Interim Condensed Consolidated Financial Statements, respectively, which rely upon use of LIBOR. The Company intends to apply additional practical expedients to these relationships during the remaining relief period. The adoption did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows, or disclosures. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses.” This ASU sets forth a current expected credit loss model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company will adopt this ASU on November 1, 2020. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flows and disclosures. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which is intended to simplify various aspects related to accounting for income taxes. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. The effective date for the Company to adopt this ASU is November 1, 2021. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flow and disclosures.
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ACQUISITIONS AND DIVESTITURES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Acquisitions The Company accounts for acquisitions in accordance with ASC 805, "Business Combinations." The estimated fair values of all assets acquired and liabilities assumed in the acquisitions are provisional and may be revised as a result of additional information obtained during the measurement period of up to one year from the acquisition date. Caraustar Acquisition The Company completed its acquisition of Caraustar Industries, Inc. and its subsidiaries (“Caraustar”) on February 11, 2019 (the “Caraustar Acquisition”). Caraustar is a leader in the production of coated and uncoated recycled paperboard, which is used in a variety of applications that include industrial products (tubes and cores, construction products, protective packaging, and adhesives) and consumer packaging products (folding cartons, set-up boxes, and packaging services). The total purchase price for this acquisition, net of cash acquired, was $1,834.9 million. The following table summarizes the consideration transferred to acquire Caraustar and the final valuation of identifiable assets acquired and liabilities assumed at the acquisition date, as well as measurement period adjustments made since the acquisition in 2019 through the close of measurement period:
(1) The measurement adjustments were primarily due to refinement to third party appraisals and carrying amounts of certain assets and liabilities, as well as adjustments to certain tax accounts based on, among other things, adjustments to deferred tax liabilities. The net impact of the measurement period adjustments resulted in a net $23.2 million decrease to goodwill. The measurement adjustments recorded did not have a significant impact on the Company's interim condensed consolidated statements of income for the three and nine months ended July 31, 2020. The Company recognized goodwill related to this acquisition of $729.3 million. The goodwill recognized in this acquisition is attributable to the acquired assembled workforce, expected synergies, and economies of scale, none of which qualify for recognition as a separate intangible asset. Caraustar is reported within the Paper Packaging & Services segment to which the goodwill was assigned. The goodwill is not expected to be deductible for tax purposes. The cost approach was used to determine the fair value for buildings, improvements and equipment, and the market approach was used to determine the fair value for land. The cost approach measures the value by estimating the cost to acquire, or construct, comparable assets and adjusts for age and condition. The Company assigned buildings and improvements a useful life ranging from 1 year to 20 years and equipment a useful life ranging from 1 year to 15 years. Acquired property, plant and equipment are being depreciated over its estimated remaining useful lives on a straight-line basis. The fair value for acquired customer relationship intangibles was determined as of the acquisition date based on estimates and judgments regarding expectations for the future after-tax cash flows arising from the revenue from customer relationships that existed on the acquisition date over their estimated lives, including the probability of expected future contract renewals and revenue, less a contributory assets charge, all of which is discounted to present value. The fair value of the trade name intangible assets were determined utilizing the relief from royalty method which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the trade names and discounted to present value using an appropriate discount rate. Acquired intangible assets are being amortized over the estimated useful lives, primarily on a straight-line basis. The following table summarizes the final purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired:
As of April 30, 2020, the Company had completed the determination of the fair value of assets acquired and liabilities assumed related to the Caraustar Acquisition. The Company continues to execute on synergies and location rationalization, including the closure of the Company's Mobile, Alabama Mill announced on June 3, 2020. Divestitures During the second quarter of 2020, the Company completed its divestiture of a U.S. business in the Paper Packaging & Services segment, the Consumer Packaging Group ("CPG") business, for $85.0 million, before preliminary adjustments at closing of $3.4 million and subject to final adjustments, for current net cash proceeds of $81.6 million, of which $35.6 million was allocated to goodwill. The loss on sale of business, net for the nine months ended July 31, 2020 was $37.9 million.
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GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the changes in the carrying amount of goodwill by segment for the nine months ended July 31, 2020:
The $36.3 million in adjustments related to divestitures was mainly composed of $35.6 million for the CPG divestiture in the Paper Packaging & Services segment. The $3.7 million in adjustments related to acquisitions was mainly composed of $2.8 million for measurement period adjustments related to the Caraustar Acquisition in the Paper Packaging & Services segment. See Note 2 to the Interim Condensed Consolidated Financial Statements for additional disclosure of goodwill adjustments by acquisitions and divestitures. The following table summarizes the carrying amount of net intangible assets by class as of July 31, 2020 and October 31, 2019:
Gross intangibles assets decreased by $3.4 million for the nine months ended July 31, 2020. The decrease was attributable to $0.9 million of impairments and $8.3 million of write-offs of fully-amortized assets, offset by $5.8 million of currency fluctuations. Amortization expense was $17.2 million and $17.1 million for the three months ended July 31, 2020 and 2019, respectively. Amortization expense was $52.1 million and $35.5 million for the nine months ended July 31, 2020 and 2019, respectively. Amortization expense for the next five years is expected to be $69.1 million in 2020, $66.5 million in 2021, $58.5 million in 2022, $56.0 million in 2023 and $52.7 million in 2024. Definite lived intangible assets for the periods presented are subject to amortization and are being amortized using the straight-line method over periods that are contractually, legally determined, or over the period a market participant would benefit from the asset.
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RESTRUCTURING CHARGES |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES The following is a reconciliation of the beginning and ending restructuring reserve balances for the nine months ended July 31, 2020:
The focus for restructuring activities in 2020 is to optimize and integrate operations in the Paper Packaging & Services segment related to the Caraustar Acquisition and to rationalize operations and close underperforming assets in the Rigid Industrial Packaging & Services and the Flexible Products & Services segments. During the three months ended July 31, 2020, the Company recorded restructuring charges of $19.1 million, as compared to $9.1 million of restructuring charges recorded during the three months ended July 31, 2019. The restructuring activity for the three months ended July 31, 2020 consisted of $16.9 million in employee separation costs and $2.2 million in other restructuring costs, primarily consisting of professional fees and other fees associated with restructuring activities. During the nine months ended July 31, 2020, the Company recorded restructuring charges of $26.8 million, as compared to $20.3 million of restructuring charges recorded during the nine months ended July 31, 2019. The restructuring activity for the nine months ended July 31, 2020 consisted of $22.0 million in employee separation costs and $4.8 million in other restructuring costs. The following is a reconciliation of the total amounts expected to be incurred from open restructuring plans or plans that are being formulated and have not been announced as of the filing date of this Form 10-Q. Remaining amounts expected to be incurred were $22.4 million as of July 31, 2020:
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CONSOLIDATION OF VARIABLE INTEREST ENTITIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATION OF VARIABLE INTEREST ENTITIES | CONSOLIDATION OF VARIABLE INTEREST ENTITIES The Company evaluates whether an entity is a variable interest entity (“VIE”) whenever reconsideration events occur and performs reassessments of all VIEs quarterly to determine if the primary beneficiary status is appropriate. The Company consolidates VIEs for which it is the primary beneficiary. If the Company is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity or cost methods of accounting, as appropriate. When assessing the determination of the primary beneficiary, the Company considers all relevant facts and circumstances, including: the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. Significant Nonstrategic Timberland Transactions In 2005, the Company sold certain timber properties to Plum Creek Timberlands, L.P. (“Plum Creek”) in a series of transactions that included the creation of two separate legal entities that are now consolidated as separate VIEs. One is an indirect subsidiary of Plum Creek (the “Buyer SPE”), and the other is STA Timber LLC, an indirect wholly owned subsidiary of the Company (“STA Timber”). As of July 31, 2020, and October 31, 2019, consolidated assets of the Buyer SPE consisted of $50.9 million of restricted bank financial instruments which are expected to be held to maturity, scheduled for November 5, 2020. The balance as of July 31, 2020 is presented in 'Assets held by special purpose entities' on the interim condensed consolidated balance sheets. For both of the three months ended July 31, 2020 and 2019, Buyer SPE recorded interest income of $0.6 million. For both of the nine month periods ended July 31, 2020 and 2019, Buyer SPE recorded interest income of $1.8 million. As of July 31, 2020, and October 31, 2019, STA Timber had consolidated liabilities of $43.3 million, and the maturity date of the consolidated liabilities is November 5, 2020. The balance as of July 31, 2020 is presented in 'Liabilities held by special purpose entities' on the interim condensed consolidated balance sheets. For both of the three months ended July 31, 2020 and 2019, STA Timber recorded interest expense of $0.5 million. For both of the nine months ended July 31, 2020 and 2019, STA Timber recorded interest expense of $1.7 million. The intercompany borrowing arrangement between the two VIEs is eliminated in consolidation. STA Timber is exposed to credit-related losses in the event of nonperformance by an issuer of a deed of guarantee in the transaction. Flexible Packaging Joint Venture In 2010, Greif, Inc. and one of its indirect subsidiaries formed a joint venture (referred to herein as the “Flexible Packaging JV” or “FPS VIE”) with Dabbagh Group Holding Company Limited and one of its subsidiaries, originally National Scientific Company Limited and now Gulf Refined Packaging for Industrial Packaging Company LTD. The Flexible Packaging JV owns the operations in the Flexible Products & Services segment. The Flexible Packaging JV has been consolidated into the operations of the Company as of its formation date in 2010. The Flexible Packaging JV is deemed to be a VIE since the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support. The major factors that led to the conclusion that the Company was the primary beneficiary of this VIE were that (1) the Company has the power to direct the most significant activities due to its ability to direct the operating decisions of the FPS VIE, which power is derived from the significant CEO discretion over the operations of the FPS VIE combined with the Company’s sole and exclusive right to appoint the CEO of the FPS VIE, and (2) the significant variable interest through the Company’s equity interest in the FPS VIE. All entities contributed to the Flexible Packaging JV were existing businesses acquired by one of the Company's indirect subsidiaries that were reorganized under Greif Flexibles Asset Holding B.V. and Greif Flexibles Trading Holding B.V. The following table presents the Flexible Packaging JV total net assets:
Net income attributable to the noncontrolling interest in the Flexible Packaging JV for the three months ended July 31, 2020 and 2019 was $2.2 million and $2.3 million, respectively; and for the nine months ended July 31, 2020 and 2019 was $5.3 million and $10.8 million, respectively. Paper Packaging Joint Venture In 2018, Greif, Inc. and one of its indirect subsidiaries formed a joint venture (referred to herein as the “Paper Packaging JV” or "PPS VIE") with a third party. The Paper Packaging JV has been consolidated into the operations of the Company since its formation date of April 20, 2018. The Paper Packaging JV is deemed to be a VIE because the equity investors at risk, as a group, lack the characteristics of a controlling financial interest. The structure of the Paper Packaging JV has governing provisions that are the functional equivalent of a limited partnership whereby the Company is the managing member that makes all the decisions related to the activities that most significantly affect the economic performance of the PPS VIE. In addition, the third party does not have any substantive kick-out rights or substantive participating rights in the Paper Packaging JV. The major factors that led to the conclusion that the Paper Packaging JV is a VIE was that all limited partnerships are considered to be VIE's unless the limited partners have substantive kick-out rights or substantive participating rights. The following table presents the Paper Packaging JV total net assets:
Net loss attributable to the noncontrolling interest in the Paper Packaging JV for the three and nine months ended July 31, 2020 was $0.5 million and $1.5 million. There was no net income (loss) for the three and nine months ended July 31, 2019 as the PPS JV was in the startup phase and had not yet commenced operations. Non-United States Accounts Receivable VIE As further described in Note 6 to the Interim Condensed Consolidated Financial Statements, Cooperage Receivables Finance B.V. is a party to the European RFA, as defined in Note 6 to the Interim Condensed Consolidated Financial Statements. Cooperage Receivables Finance B.V. is deemed to be a VIE since this entity is not able to satisfy its liabilities without the financial support from the Company. While this entity is a separate and distinct legal entity from the Company and no ownership interest in this entity is held by the Company, the Company is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE. As a result, Cooperage Receivables Finance B.V. has been consolidated into the operations of the Company.
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LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt is summarized as follows:
2019 Credit Agreement On February 11, 2019, the Company and certain of its subsidiaries entered into an amended and restated senior secured credit agreement (the “2019 Credit Agreement”) with a syndicate of financial institutions. The Company's obligations under the 2019 Credit Agreement are guaranteed by certain of its U.S. and non-U.S. subsidiaries. The 2019 Credit Agreement provides for (a) an $800.0 million secured revolving credit facility, consisting of a $600.0 million multicurrency facility and a $200.0 million U.S. dollar facility, maturing on February 11, 2024, (b) a $1,275.0 million secured term loan A-1 facility with quarterly principal installments commencing on April 30, 2019 and continuing through maturity on January 31, 2024, and (c) a $400.0 million secured term loan A-2 facility with quarterly principal installments commencing on April 30, 2019 and continuing through maturity on January 31, 2026. In addition, the Company has an option to add an aggregate of $700.0 million to the secured revolving credit facility under the 2019 Credit Agreement with the agreement of the lenders. The revolving credit facility is available to fund ongoing working capital and capital expenditure needs, for general corporate purposes, and to finance acquisitions. The 2019 Credit Agreement contains certain covenants, which include financial covenants that require the Company to maintain a certain leverage ratio and an interest coverage ratio. The leverage ratio generally requires that, at the end of any quarter, the Company will not permit the ratio of (a) its total consolidated indebtedness, to (b) its consolidated net income plus depreciation, depletion and amortization, interest expense (including capitalized interest), income taxes, and minus certain extraordinary gains and non-recurring gains (or plus certain extraordinary losses and non-recurring losses) and plus or minus certain other items for the preceding twelve months (as used in this paragraph only, “EBITDA”) to be greater than 4.75 to 1.00 and stepping down annually by 0.25 increments beginning on July 31, 2020 to 4.00 on July 31, 2023. The interest coverage ratio generally requires that, at the end of any fiscal quarter, the Company will not permit the ratio of (a) its consolidated EBITDA, to (b) its consolidated interest expense to the extent paid or payable, to be less than 3.00 to 1.00, during the applicable preceding twelve month period. As of July 31, 2020, the Company was in compliance with the covenants and other agreements in the 2019 Credit Agreement. As of July 31, 2020, $1,614.8 million was outstanding under the 2019 Credit Agreement. The current portion of such outstanding amount was $99.7 million, and the long-term portion was $1,515.1 million. The weighted average interest rate for borrowings under the 2019 Credit Agreement was 2.91% for the nine months ended July 31, 2020. The actual interest rate for borrowings under the 2019 Credit Agreement was 1.95% as of July 31, 2020. The deferred financing costs associated with the term loan portion of the 2019 Credit Agreement totaled $9.1 million as of July 31, 2020 and are recorded as a direct deduction from the balance sheet line Long-Term Debt. The deferred financing costs associated with the revolver portion of the 2019 Credit Agreement totaled $6.6 million as of July 31, 2020 and are recorded within Other Long-Term Assets. Senior Notes due 2027 On February 11, 2019, the Company issued $500.0 million of 6.50% Senior Notes due March 1, 2027 (the "Senior Notes due 2027"). Interest on the Senior Notes due 2027 is payable semi-annually commencing on September 1, 2019. The Company's obligations under the Senior Notes due 2027 are guaranteed by its U.S. subsidiaries that guarantee the 2019 Credit Agreement. The deferred financing cost associated with the Senior Notes due 2027 totaled $2.4 million as of July 31, 2020 and are recorded as a direct deduction from the balance sheet line Long-Term Debt. Senior Notes due 2021 On July 15, 2011, Greif, Inc.’s wholly-owned subsidiary, Greif Nevada Holdings, Inc., S.C.S., issued €200.0 million of 7.375% Senior Notes due July 15, 2021 (the "Senior Notes due 2021"). The Senior Notes due 2021 are guaranteed on a senior basis by Greif, Inc. Interest on the Senior Notes due 2021 is payable semi-annually. United States Trade Accounts Receivable Credit Facility On September 24, 2019, the Company amended and restated the existing receivable financing facility (the "U.S. Receivables Facility") maturing on September 24, 2020. Greif Receivables Funding LLC, Greif Packaging LLC, for itself and as servicer, and certain other U.S. subsidiaries of the Company entered into a Third Amended and Restated Transfer and Administration Agreement, dated as of September 24, 2019 (the "Third Amended TAA"), with Bank of America, N.A., as the agent, managing agent, administrator and committed investor, and various investor groups, managing agents, and administrators, from time to time parties thereto. The Third Amended TAA provides a $275.0 million U.S. Receivables Facility that is secured by certain U.S. accounts receivable. The $223.5 million outstanding balance under the U.S. Receivables Facility as of July 31, 2020 is reported in 'Long-term debt' on the interim condensed consolidated balance sheets because the Company intends to refinance this obligation on a long-term basis and has the intent and ability to consummate a long-term refinancing. The financing costs associated with the U.S. Receivables Facility are $0.1 million as of July 31, 2020, and are recorded as a direct deduction from 'Long-term debt' on the interim condensed consolidated balance sheets. International Trade Accounts Receivable Credit Facility On April 17, 2020, Cooperage Receivables Finance B.V. and Greif Coordination Center BVBA, an indirect wholly owned subsidiary of Greif, Inc., amended and restated the Nieuw Amsterdam Receivables Financing Agreement (the "European RFA") with affiliates of a major international bank. The amended and restated European RFA will mature April 17, 2021. The European RFA provides an accounts receivable financing facility of up to €100.0 million ($117.9 million as of July 31, 2020) secured by certain European accounts receivable. The $77.7 million outstanding on the European RFA as of July 31, 2020 is reported as 'Long-term debt' on the interim condensed consolidated balance sheets because the Company intends to refinance these obligations on a long-term basis and has the intent and ability to consummate a long-term refinancing by exercising the renewal option in the respective agreement or entering into new financing arrangements.
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following table presents the fair value for those assets and (liabilities) measured on a recurring basis as of July 31, 2020 and October 31, 2019:
The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts payable, current liabilities and short-term borrowings as of July 31, 2020 and October 31, 2019 approximate their fair values because of the short-term nature of these items and are not included in this table. Interest Rate Derivatives The Company has various borrowing facilities which charge interest based on the one month U.S. dollar LIBOR rate plus a spread. In 2020, the Company entered into four forward starting interest rate swaps with a total notional amount of $200.0 million effective July 15, 2021. The Company receives variable rate interest payments based upon one month U.S. dollar LIBOR, and in return the Company is obligated to pay interest at a weighted-average interest rate of 0.90% plus a spread. This effectively converted the borrowing rate on an amount of debt equal to the outstanding notional amount of the interest rate swap from a variable rate to a fixed rate. In 2019, the Company entered into six interest rate swaps with a total notional amount of $1,300.0 million that amortize to $200.0 million over a five year term. The outstanding notional amount as of July 31, 2020 is $1,000.0 million. The Company receives variable rate interest payments based upon one month U.S. dollar LIBOR, and in return the Company is obligated to pay interest at a weighted-average interest rate of 2.49% plus a spread. This effectively converted the borrowing rate on an amount of debt equal to the outstanding notional amount of the interest rate swap from a variable rate to a fixed rate. In 2017, the Company entered into an interest rate swap with a notional amount of $300.0 million. The Company receives variable rate interest payments based upon one month U.S. dollar LIBOR, and in return the Company is obligated to pay interest at a fixed rate of 1.19% plus a spread. This effectively converted the borrowing rate on an amount of debt equal to the outstanding notional amount of the interest rate swap from a variable rate to a fixed rate. These derivatives are designated as cash flow hedges for accounting purposes. Accordingly, the gain or loss on these derivative instruments are reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transactions and in the same period during which the hedged transactions affect earnings. See Note 15 to the Interim Condensed Consolidated Financial Statements for additional information. The assumptions used in measuring fair value of these interest rate derivatives are considered level 2 inputs, which are based upon observable market rates, including LIBOR and interest paid based upon a designated fixed rate over the life of the swap agreements. Gains (losses) reclassified to earnings under these contracts were $(6.4) million and $0.7 million for the three months ended July 31, 2020, and 2019, respectively. Gains (losses) reclassified to earnings under these contracts were $(11.1) million and $2.5 million for the nine months ended July 31, 2020, and 2019, respectively. A derivative loss of $18.6 million, based upon interest rates at July 31, 2020, is expected to be reclassified from accumulated other comprehensive income (loss) to earnings in the next twelve months. Foreign Exchange Hedges The Company conducts business in various international currencies and is subject to risks associated with changing foreign exchange rates. The Company’s objective is to reduce volatility associated with foreign exchange rate changes. Accordingly, the Company enters into various contracts that change in value as foreign exchange rates change to protect the value of certain existing foreign currency assets and liabilities, commitments and anticipated foreign currency cash flows. As of July 31, 2020, and October 31, 2019, the Company had outstanding foreign currency forward contracts in the notional amount of $143.3 million and $275.0 million, respectively. Adjustments to fair value are recognized in earnings, offsetting the impact of the hedged profits. The assumptions used in measuring fair value of foreign exchange hedges are considered level 2 inputs, which are based on observable market pricing for similar instruments, principally foreign exchange futures contracts. Realized gains recorded in other expense, net under fair value contracts were $1.7 million and $2.8 million for the three months ended July 31, 2020, and 2019, respectively. Realized gains (losses) recorded in other expense, net under fair value contracts were $(0.5) million and $3.3 million for the nine months ended July 31, 2020, and 2019, respectively. The Company recognized in other expense, net an unrealized net loss of $2.2 million and $0.3 million during the three months ended July 31, 2020 and 2019, respectively. The Company recognized in other expense, net an unrealized net gain (loss) of $(0.4) million and $1.5 million during the nine months ended July 31, 2020 and 2019, respectively. Cross Currency Swap The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. On March 6, 2018, the Company entered into a cross currency interest rate swap agreement that synthetically swaps $100.0 million of fixed rate debt to Euro denominated fixed rate debt at a rate of 2.35%. The agreement is designated as a net investment hedge for accounting purposes and will mature on March 6, 2023. Accordingly, the gain or loss on this derivative instrument is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted or liquidated. Interest payments received for the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net on the interim condensed consolidated statements of income. For the three months ended July 31, 2020 and 2019, gains recorded in interest expense, net under the cross currency swap agreement were $0.6 million and $0.6 million. For the nine months ended July 31, 2020 and 2019, gains recorded in interest expense, net under the cross currency swap agreement were $1.8 million and $1.8 million. See Note 15 to the Interim Condensed Consolidated Financial Statements for additional information. The assumptions used in measuring fair value of the cross currency swap are considered level 2 inputs, which are based upon the Euro to United States Dollar exchange rate market. Other Financial Instruments The fair values of the Company’s 2019 Credit Agreement, U.S. Receivables Facility and European RFA (collectively, "Accounts Receivable Credit Facilities") do not materially differ from carrying value as the Company’s cost of borrowing is variable and approximates current borrowing rates. The fair values of the Company’s long-term obligations are estimated based on either the quoted market prices for the same or similar issues or the current interest rates offered for the debt of the same remaining maturities, which are considered level 2 inputs in accordance with ASC Topic 820, "Fair Value Measurements and Disclosures." The following table presents the estimated fair values of the Company’s Senior Notes and Assets held by special purpose entities:
Non-Recurring Fair Value Measurements The Company recognized asset impairment charges of $16.9 million and $2.1 million during the nine months ended July 31, 2020 and 2019, respectively. The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of long-lived assets held and used and net assets held for sale for the nine months ended July 31, 2020 and 2019:
Long-Lived Assets As necessary, based on triggering events, the Company measures long-lived assets at fair value on a non-recurring basis. The Company recorded $16.9 million of impairment charges related to both properties, plants and equipment, net and intangible assets and no impairment charges during the nine months ended July 31, 2020 and 2019, respectively. The assumptions used in measuring fair value of long-lived assets are considered level 3 inputs, which include bids received from third parties, recent purchase offers, market comparable information and discounted cash flows based on assumptions that market participants would use. Assets and Liabilities Held for Sale During the nine months ended July 31, 2020, the Company recorded no impairment charges related to assets and liabilities held for sale. During the nine months ended July 31, 2019, one asset group was reclassified to assets and liabilities held for sale, resulting in recognized asset impairment charges of $2.1 million. The assumptions used in measuring fair value of assets and liabilities held for sale are considered level 3 inputs, which include recent purchase offers, market comparables and/or data obtained from commercial real estate brokers.
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STOCK-BASED COMPENSATION |
9 Months Ended |
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Jul. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based compensation is accounted for in accordance with ASC 718, “Compensation – Stock Compensation,” which requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. During the second quarter of 2020, the Company's stockholders approved the 2020 Long-Term Incentive Plan (the "2020 LTIP") replacing the Company's Amended and Restated Long-Term Incentive Plan ("Long-Term Incentive Plan") for all periods commencing November 1, 2019 and thereafter. The 2020 LTIP provides key employees incentive compensation based upon consecutive and overlapping three-year performance periods that commence at the start of each fiscal year. Participants may be granted restricted stock units ("RSUs") or performance stock units ("PSUs") or a combination thereof. Restricted Stock Units The Company grants RSUs based on a three-year vesting period on the basis of service only. The RSUs are an equity-classified plan measured at fair value on the grant date recognized ratably over the service period. Dividend-equivalent rights may be granted in connection with an RSU award and are recognized in conjunction with the Company's dividend issuance and settled upon vesting of the award. The Company granted 147,325 RSUs on February 25, 2020, for the service period commencing on November 1, 2019 and ending October 31, 2022. The weighted average fair value of the RSUs granted on that date was $37.42. Performance Stock Units The Company grants PSUs for a three-year performance period based upon service, performance criteria and market conditions. The performance criteria are based on targeted levels of earnings before interest, taxes, depreciation, depletion and amortization and total shareholder return as determined by the Special Subcommittee of the Company's Compensation Committee of the Board of Directors (the "Special Subcommittee"). The PSUs are a liability-classified plan wherein the fair value of the PSUs awarded is determined at each reporting period using a Monte Carlo simulation. A Monte Carlo simulation uses assumptions including the risk-free interest rate, expected volatility of the Company’s stock price and expected life of the awards to determine a fair value of the market condition throughout the vesting period. The Company accrued for the targeted performance awards, an expected total of 258,519 PSUs, on February 25, 2020, for the performance period commencing on November 1, 2019 and ending October 31, 2022. For the three and nine months ended July 31, 2020, the Company recognized SG&A expense of $1.2 million and $2.0 million, respectively, related to the PSUs.
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INCOME TAXES |
9 Months Ended |
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Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company completed the Caraustar Acquisition on February 11, 2019 and has recorded a net deferred tax liability of $133.7 million, which is primarily related to intangible assets that cannot be amortized for tax purposes. See Note 2 to the Interim Condensed Consolidated Financial Statements for additional information. Income tax expense for the quarter and year to date was computed in accordance with ASC 740-270 "Income Taxes - Interim Reporting." Under this method, losses from jurisdictions for which a valuation allowance has been provided have not been included in the amount to which the ASC 740-270 rate was applied. Income tax expense of the Company fluctuates primarily due to changes in losses and income from jurisdictions for which a valuation allowance has been provided, the timing of recognition of the related tax expense under ASC 740-270, and the impact of discrete items in the respective quarter. For the nine months ended July 31, 2020, income tax expense was $44.8 million compared to $58.3 million for the nine months ended July 31, 2019. The decrease in income tax expense for the nine months ended July 31, 2020 was primarily attributable to changes in the expected mix of earnings among tax jurisdictions, discrete items, and non-deductible goodwill for tax purposes related to the sale of the CPG business within the Paper Packaging & Services segment. On March 18, 2020, the Families First Coronavirus Response Act (the "FFCR Act"), and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), were each enacted into law in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous income tax provisions, such as reducing limitations on the deductibility of interest, the use of net operating losses arising in taxable years beginning after December 31, 2017, and additional depreciation deductions related to qualified improvement property. The Company performed an analysis of these provisions and believes that the FFCR Act and CARES Act will not have a material impact on the Company’s income taxes for the current year.
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POST RETIREMENT BENEFIT PLANS |
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Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
POST RETIREMENT BENEFIT PLANS | POST RETIREMENT BENEFIT PLANS During the nine months ended July 31, 2020, two United States defined benefit plans were combined and lump sum payments totaling $44.3 million were made to United States defined benefit plan participants who agreed to such payments, representing the current fair value of the participant’s respective pension benefit. The payments were made from plan assets resulting in a decrease in the fair value of both the plan assets and the projected benefit obligation of $44.3 million and non-cash pension settlement income of $0.1 million of unrecognized net actuarial gain included in accumulated other comprehensive income. As a result of the two events described above, two United States defined benefit plans were remeasured as of December 31, 2019, resulting in a $19.0 million decline in aggregate projected benefit obligations and a $9.3 million aggregate decline in the fair value of plan assets. These reductions were due to an increase in discount rates to 3.38%, from the Company's year-end disclosures and a decline in the combined expected return on assets to 5.00%. The components of net periodic pension cost include the following:
Contributions, including benefits paid directly by the Company, to the pension plans were $27.0 million and $19.7 million, in the nine months ended July 31, 2020 and 2019, respectively. The components of net periodic post-retirement benefit include the following:
The components of net periodic pension cost and net periodic post-retirement benefit, other than the service cost components, are included in the line item "Other expense (income), net" in the interim condensed consolidated statements of income.
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CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES |
9 Months Ended |
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Jul. 31, 2020 | |
Environmental Remediation Obligations [Abstract] | |
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES | CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES Litigation-related Liabilities The Company may become involved from time-to-time in litigation and regulatory matters incidental to its business, including governmental investigations, enforcement actions, personal injury claims, product liability, employment health and safety matters, commercial disputes, intellectual property matters, disputes regarding environmental clean-up costs, litigation in connection with acquisitions and divestitures, and other matters arising out of the normal conduct of its business. The Company intends to vigorously defend itself in such litigation. The Company does not believe that the outcome of any pending litigation will have a material adverse effect on its interim condensed consolidated financial statements. The Company may accrue for contingencies related to litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions can occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews contingencies to determine whether its accruals are adequate. The amount of ultimate loss may differ from these estimates. The Company is currently involved in legal proceedings outside of the United States related to various wrongful termination lawsuits filed by former employees and benefit claims filed by some existing employees of the Company's Flexible Products & Services segment. The lawsuits include claims for severance for employment periods prior to the Company’s ownership in the business. As of July 31, 2020, and October 31, 2019, the estimated liability recorded related to these matters were consistent at $0.6 million. The estimated liability has been determined based on the number of active cases and the settlements and rulings on previous cases. It is reasonably possible the estimated liability could increase if additional cases are filed or adverse rulings are made. Since 2017, three reconditioning facilities in the Milwaukee, Wisconsin area that are owned by Container Life Cycle Management LLC ("CLCM"), the Company’s U.S. reconditioning joint venture company, have been subject to investigations conducted by federal, state and local governmental agencies concerning, among other matters, potential violations of environmental laws and regulations. As a result of these investigations, the United States Environmental Protection Agency (“U.S. EPA”) and the Wisconsin Department of Natural Resources (“WDNR”) have issued notices of violations to the Company and CLCM regarding violations of certain federal and state environmental laws and regulations. The remedies being sought in these proceedings include compliance with the applicable environmental laws and regulations as being interpreted by the U.S. EPA and WDNR and monetary sanctions. The Company has cooperated with the governmental agencies in these investigations and proceedings. As of August 27, 2020, no material citations have been issued or material fines assessed with respect to any violation of environmental laws and regulations. Since these proceedings are in their investigative stage, the Company is unable to predict the outcome of these proceedings or estimate a range of reasonable possible monetary sanctions or costs associated with any remedial actions that may be required or requested by the U.S. EPA or WDNR. In addition, on November 8, 2017, the Company, CLCM and other parties were named as defendants in a punitive class action lawsuit filed in Wisconsin state court concerning one of CLCM’s Milwaukee reconditioning facilities. The plaintiffs are alleging that odors from this facility have invaded their property and are interfering with the use and enjoyment of their property and causing damage to the value of their property. Plaintiffs are seeking compensatory and punitive damages, along with their legal fees. The Company and CLCM are vigorously defending themselves in this lawsuit. The Company is unable to predict the outcome of this lawsuit or estimate a range of reasonably possible losses. Environmental Reserves As a result of the Caraustar Acquisition, the Company acquired The Newark Group, Inc., a subsidiary of Caraustar (“Newark”), and became subject to Newark’s Lower Passaic River environmental and litigation liability. By letters dated February 14, 2006 and June 2, 2006, the United States Environment Protection Agency (“EPA”) notified Newark of its potential liability under Section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (“CERCLA”) relating to the Diamond Alkali Superfund Site, which includes a 17-mile stretch of the Lower Passaic River that EPA has denominated the Lower Passaic River Study Area (“LPRSA”). Newark is one of at least 70 potentially responsible parties identified in this case. The EPA alleges that hazardous substances were released from Newark’s now-closed Newark, New Jersey recycled paperboard mill into the Lower Passaic River. The EPA informed Newark that it may be potentially liable for response costs that the government may incur relating to the study of the LPRSA and for unspecified natural resource damages. In April 2014, EPA issued a Focused Feasibility Study that proposed alternatives for the remediation of the lower 8 miles of the Lower Passaic River. On March 3, 2016, EPA issued its Record of Decision for the lower 8 miles of the Lower Passaic River, which presented a bank-to-bank dredging remedy selected by the agency for the lower 8 miles and which EPA estimates will cost approximately $1,380.0 million to implement. Newark is participating in an allocation process to determine its allocable share. On June 30, 2018, Occidental Chemical Corporation (“Occidental”) filed litigation in the U.S. District Court for the District of New Jersey styled Occidental Chemical Corp. v. 21st Century Fox America, Inc., et al., Civil Action No. 2:18-CV-11273 (D.N.J.), that names Newark and approximately 119 other parties as defendants. Occidental’s Complaint alleges claims under CERCLA against all defendants for cost recovery, contribution, and declaratory judgment for costs Occidental allegedly has incurred and will incur at the Diamond Alkali Superfund Site. The litigation is in its early stages, and the Company intends to vigorously defend itself in this litigation. As of July 31, 2020, the Company has accrued $11.2 million for the Diamond Alkali Superfund Site. It is possible that there could be resolution of uncertainties in the future that would require the Company to record charges that could be material to future earnings. As of July 31, 2020, and October 31, 2019, the Company's environmental reserves were $19.7 million and $18.7 million, respectively. These reserves are principally based on environmental studies and cost estimates provided by third parties, but also take into account management estimates. The estimated liabilities are reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of relevant costs. For sites that involve formal actions subject to joint and several liabilities, these actions have formal agreements in place to apportion the liability. Aside from the Diamond Alkali Superfund Site, other environmental reserves of the Company as of July 31, 2020 and October 31, 2019 included $3.3 million and $3.3 million, respectively, for various European drum facilities acquired from Blagden and Van Leer; $0.1 million and $0.1 million, respectively, for its various container life cycle management and recycling facilities acquired in 2011 and 2010; $0.9 million and $0.3 million, respectively, for remediation of sites no longer owned by the Company; $2.2 million and $2.0 million, respectively, for landfill closure obligations in the Company's Paper Packaging & Services segment; $0.4 million and $0.0 million, respectively, for various other accruals in the Company's Paper Packaging & Services segment; and $1.6 million and $1.8 million, respectively, for various other facilities around the world. The Company’s exposure to adverse developments with respect to any individual site is not expected to be material. Although environmental remediation could have a material effect on results of operations if a series of adverse developments occur in a particular quarter or year, the Company believes that the chance of a series of adverse developments occurring in the same quarter or year is remote. Future information and developments will require the Company to continually reassess the expected impact of these environmental matters.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE The Company has two classes of common stock and, as such, applies the “two-class method” of computing earnings per share (“EPS”) as prescribed in ASC 260, “Earnings Per Share.” In accordance with this guidance, earnings are allocated in the same fashion as dividends would be distributed. Under the Company’s articles of incorporation, any distribution of dividends in any year must be made in proportion of one cent a share for Class A Common Stock to one and one-half cents a share for Class B Common Stock, which results in a 40% to 60% split to Class A and B shareholders, respectively. In accordance with this, earnings are allocated first to Class A and Class B Common Stock to the extent that dividends are actually paid and the remainder is allocated assuming all of the earnings for the period have been distributed in the form of dividends. The Company calculates EPS as follows:
*Diluted Class B EPS calculation is identical to Basic Class B calculation The following table provides EPS information for each period, respectively:
The Class A Common Stock has no voting rights unless four quarterly cumulative dividends upon the Class A Common Stock are in arrears. The Class B Common Stock has full voting rights. There is no cumulative voting for the election of directors. Common Stock Repurchases The Board of Directors has authorized the Company to repurchase shares of the Company's Class A Common Stock or Class B Common Stock or any combination of the foregoing. As of July 31, 2020, and 2019 the remaining amount of shares that may be repurchased under this authorization was 4,703,487 and 4,703,487, respectively. There were no shares repurchased under this program from November 1, 2018 through July 31, 2020. The following table summarizes the Company’s Class A and Class B common and treasury shares as of the specified dates:
The following is a reconciliation of the shares used to calculate basic and diluted earnings per share:
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company leases certain buildings, warehouses, land, transportation equipment, operating equipment, and office equipment with remaining lease terms from less than one year up to 22 years. The Company reviews all options to extend, terminate, or purchase a right of use asset at the time of lease inception and accounts for options deemed reasonably certain. The Company combines lease and non-lease components for all leases, except real estate, for which these components are presented separately. Leases with an initial term of twelve months or less are not capitalized and are recognized on a straight-line basis over the lease term. The implicit rate is not readily determinable for substantially all of the Company's leases, therefore the initial present value of lease payments is calculated utilizing an estimated incremental borrowing rate determined at the portfolio level based on market and Company specific information. Certain of the Company’s leases include variable costs. As the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, changes in these variable expenses are not capitalized and are expensed as incurred throughout the lease term. As of July 31, 2020, the Company has not entered into any significant leases which have not yet commenced. The following table presents the balance sheet classification of the Company’s lease assets and liabilities as of July 31, 2020:
The following table presents the lease expense components for the three and nine months ended July 31, 2020:
*Amount includes short-term lease costs. Future maturity for the Company's lease liabilities, during the next five years, and in the aggregate for the years thereafter, are as follows:
The following table presents the weighted-average lease term and discount rate as of July 31, 2020:
The following table presents other required lease related information for the three and nine months ended July 31, 2020:
In compliance with ASC 842, the Company must provide the prior year disclosures required under the previous lease guidance for comparative periods presented herein. The table below contains information related to the Company’s rent expense as disclosed within the 10-K for the period ended October 31, 2019:
The following table provides the Company’s minimum rent commitments under operating leases in the next five years and the remaining years thereafter as disclosed within the 10-K for the period ended October 31, 2019:
Minimum rent commitments under capital leases in 2020 and thereafter are attributable to addition of capital leases through the Caraustar Acquisition.
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LEASES | LEASES The Company leases certain buildings, warehouses, land, transportation equipment, operating equipment, and office equipment with remaining lease terms from less than one year up to 22 years. The Company reviews all options to extend, terminate, or purchase a right of use asset at the time of lease inception and accounts for options deemed reasonably certain. The Company combines lease and non-lease components for all leases, except real estate, for which these components are presented separately. Leases with an initial term of twelve months or less are not capitalized and are recognized on a straight-line basis over the lease term. The implicit rate is not readily determinable for substantially all of the Company's leases, therefore the initial present value of lease payments is calculated utilizing an estimated incremental borrowing rate determined at the portfolio level based on market and Company specific information. Certain of the Company’s leases include variable costs. As the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, changes in these variable expenses are not capitalized and are expensed as incurred throughout the lease term. As of July 31, 2020, the Company has not entered into any significant leases which have not yet commenced. The following table presents the balance sheet classification of the Company’s lease assets and liabilities as of July 31, 2020:
The following table presents the lease expense components for the three and nine months ended July 31, 2020:
*Amount includes short-term lease costs. Future maturity for the Company's lease liabilities, during the next five years, and in the aggregate for the years thereafter, are as follows:
The following table presents the weighted-average lease term and discount rate as of July 31, 2020:
The following table presents other required lease related information for the three and nine months ended July 31, 2020:
In compliance with ASC 842, the Company must provide the prior year disclosures required under the previous lease guidance for comparative periods presented herein. The table below contains information related to the Company’s rent expense as disclosed within the 10-K for the period ended October 31, 2019:
The following table provides the Company’s minimum rent commitments under operating leases in the next five years and the remaining years thereafter as disclosed within the 10-K for the period ended October 31, 2019:
Minimum rent commitments under capital leases in 2020 and thereafter are attributable to addition of capital leases through the Caraustar Acquisition.
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EQUITY EARNINGS OF UNCONSOLIDATED AFFILIATES, NET OF TAX AND NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
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Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY EARNINGS OF UNCONSOLIDATED AFFILIATES, NET OF TAX AND NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | EQUITY EARNINGS OF UNCONSOLIDATED AFFILIATES, NET OF TAX AND NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS Centurion Container LLC The Company acquired a minority interest in Centurion Container LLC ("Centurion"), a U.S.-based company involved in IBC rebottling, reconditioning and distribution, on March 31, 2020 for $3.6 million. The investment in Centurion is accounted for under the equity method because the Company has the ability to exercise significant influence through its board participation. At any time prior to October 31, 2022, the Company has the option to acquire an 80% ownership interest in Centurion at a formulaic price, as set forth in the operating agreement. Provided such interest is acquired, the Company then has the option to acquire 100% ownership of Centurion beginning on March 31, 2025 at a formulaic price set forth in the operating agreement.
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EQUITY AND COMPREHENSIVE INCOME (LOSS) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY AND COMPREHENSIVE INCOME (LOSS) | EQUITY AND COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in equity for the three and nine months ended July 31, 2020 (Dollars in millions, shares in thousands)
The following table summarizes the changes in equity for the three and nine months ended July 31, 2019 (Dollars in millions, shares in thousands):
The following table provides the rollforward of accumulated other comprehensive income (loss) for the nine months ended July 31, 2020:
The following table provides the rollforward of accumulated other comprehensive income (loss) for the nine months ended July 31, 2019:
The components of accumulated other comprehensive income (loss) above are presented net of tax, as applicable.
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BUSINESS SEGMENT INFORMATION |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has eight operating segments, which are aggregated into four reportable business segments: Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services; and Land Management. The Company’s reportable business segments offer different products and services. The accounting policies of the reportable business segments are substantially the same as those described in the “Basis of Presentation and Summary of Significant Accounting Policies” note in the 2019 Form 10-K. On April 1, 2020, the Company completed the divestiture of the CPG business within the Paper Packaging & Services segment. The following tables present net sales disaggregated by geographic area for each reportable segment for the three and nine months ended July 31, 2020:
The following tables present net sales disaggregated by geographic area for each reportable segment for the three and nine months ended July 31, 2019:
The following segment information is presented for the periods indicated:
The following table presents total assets by segment and total properties, plants and equipment, net by geographic area:
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REDEEMABLE NONCONTROLLING INTERESTS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS Mandatorily Redeemable Noncontrolling Interests The terms of the joint venture agreement for one joint venture within the Rigid Industrial Packaging & Services segment include mandatory redemption by the Company, in cash, of the noncontrolling interest holders’ equity at a formulaic price after the expiration of a lockout period specific to each noncontrolling interest holder. The redemption features cause the interest to be classified as a mandatorily redeemable instrument under the accounting guidance, and this interest is included at the current redemption value each period in long-term or short-term liabilities of the Company, as applicable. The impact of marking to redemption value at each period end is recorded in interest expense. The carrying amount is not reduced below the initially recorded contribution. The Company has a contractual obligation to redeem the outstanding equity interest of each remaining partner in 2022 and 2023, respectively. The following table summarizes the change in mandatorily redeemable noncontrolling interest for the nine months ended July 31, 2020:
Redeemable Noncontrolling Interests Redeemable noncontrolling interests related to two joint ventures within the Paper Packaging & Services segment and one joint venture within the Rigid Industrial Packaging & Services segment are held by the respective noncontrolling interest owners. The holders of these interests share in the profits and losses of these entities on a pro-rata basis with the Company. However, the noncontrolling interest owners have the right to put all or a portion of those noncontrolling interests to the Company at a formulaic price after a set period of time, specific to each agreement. Redeemable noncontrolling interests are reflected in the interim condensed consolidated balance sheets at redemption value. The following table summarizes the change in redeemable noncontrolling interest for the nine months ended July 31, 2020:
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
9 Months Ended |
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Jul. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates. The fiscal year of Greif, Inc. and its subsidiaries (the “Company”) begins on November 1 and ends on October 31 of the following year. Any references to years or to any quarter of those years, relates to the fiscal year or quarter, as the case may be, ended in that year, unless otherwise stated. The information filed herein reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated balance sheets as of July 31, 2020 and October 31, 2019, the interim condensed consolidated statements of income and comprehensive income for the three and nine months ended July 31, 2020 and 2019 and the interim condensed consolidated statements of cash flows for the nine months ended July 31, 2020 and 2019 of the Company. The interim condensed consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and consolidated subsidiaries and investments in limited liability companies, partnerships and joint ventures in which it has controlling influence or is the primary beneficiary. Non-majority owned entities include investments in limited liability companies, partnerships and joint ventures in which the Company does not have controlling influence and are accounted for using either the equity or cost method, as appropriate. The unaudited interim condensed consolidated financial statements included in the Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2019 (the “2019 Form 10-K”). COVID-19 The preparation of financial statements requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in such financial statements. The estimates and assumptions used in the preparation of the financial statements contained in this Form 10-Q do not reflect material changes to the estimates and assumptions disclosed in the 2019 Form 10-K. Nevertheless, the Company's actual results and outcomes during the three and nine months ended July 31, 2020 have been impacted by the COVID-19 pandemic, which has caused an economic downturn on a global scale, as well as significant market disruption and volatility. Because the scope, duration and magnitude of the effects of the COVID-19 pandemic continue to evolve, the Company cannot, at this time, predict the impact the pandemic will have on its future consolidated financial position, cash flows or results of operations; however, the impact could be material. The Company's future financial results and operations depend in part on the duration and severity of the pandemic and what actions are taken to mitigate the outbreak.
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Newly Adopted Accounting Standards and Recently Issued Accounting Standards | Newly Adopted Accounting Standards In February 2016 and July 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02 and ASU 2018-11, "Leases (Topic 842)," or Accounting Standards Codification ("ASC") 842, which amends the lease accounting and disclosure requirements in ASC 840, "Leases." The objective of this update is to increase transparency and comparability among organizations recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. The Company adopted ASU on November 1, 2019, utilizing a modified retrospective approach and did not adjust its comparative period financial information. The Company adopted the practical expedient package which permits the Company to not reassess previous conclusions whether a contract is or contains a lease, lease classification, or treatment of indirect costs for existing contracts as of the adoption date. The Company also adopted the short-term lease recognition exemption and the practical expedient allowing for the combination of lease and non-lease components for all leases except real estate, for which these components are presented separately. The Company has completed the lease collection and evaluation process, implemented a technology tool to assist with the accounting and reporting requirements of the new standard, and designed new processes and controls around leases. On the day of adoption, the Company capitalized onto the balance sheet $301.2 million of right-of-use assets and $305.8 million of lease liabilities related to operating leases. The adoption did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows, or disclosures, other than as set forth above and in Note 13 to the Interim Condensed Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The objective of this ASU is to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 were effective for all entities as of March 12, 2020 and will generally no longer be available to apply after December 31, 2022. The Company adopted this ASU as of the effective date and will utilize the optional expedients to the extent that they apply to the Company. The Company currently applies expedient guidance related to hedging relationships, which allowed the Company to amend hedge documentation, without dedesignating and redesignating, for all outstanding hedging relationships linked to expiring reference rates. The Company also has long-term debt and interest rate derivatives, as described in Notes 6 and 7 to the Interim Condensed Consolidated Financial Statements, respectively, which rely upon use of LIBOR. The Company intends to apply additional practical expedients to these relationships during the remaining relief period. The adoption did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows, or disclosures. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses.” This ASU sets forth a current expected credit loss model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company will adopt this ASU on November 1, 2020. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flows and disclosures. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which is intended to simplify various aspects related to accounting for income taxes. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. The effective date for the Company to adopt this ASU is November 1, 2021. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flow and disclosures.
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ACQUISITIONS AND DIVESTITURES (Tables) |
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Schedule of preliminary valuation of identifiable assets acquired and liabilities assumed | The following table summarizes the consideration transferred to acquire Caraustar and the final valuation of identifiable assets acquired and liabilities assumed at the acquisition date, as well as measurement period adjustments made since the acquisition in 2019 through the close of measurement period:
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Schedule of finite-lived intangible assets acquired as part of business combination | Acquired intangible assets are being amortized over the estimated useful lives, primarily on a straight-line basis. The following table summarizes the final purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired:
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Carrying Amount of Goodwill by Segment | The following table summarizes the changes in the carrying amount of goodwill by segment for the nine months ended July 31, 2020:
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Summary of Carrying Amount of Net Other Intangible Assets by Class | The following table summarizes the carrying amount of net intangible assets by class as of July 31, 2020 and October 31, 2019:
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RESTRUCTURING CHARGES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Beginning and Ending Restructuring Reserve Balances | The following is a reconciliation of the beginning and ending restructuring reserve balances for the nine months ended July 31, 2020:
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Reconciliation of Total Amounts Expected to be Incurred from Open Restructuring Plans Anticipated to be Realized | The following is a reconciliation of the total amounts expected to be incurred from open restructuring plans or plans that are being formulated and have not been announced as of the filing date of this Form 10-Q. Remaining amounts expected to be incurred were $22.4 million as of July 31, 2020:
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CONSOLIDATION OF VARIABLE INTEREST ENTITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net Assets of Flexible Packaging JV | The following table presents the Flexible Packaging JV total net assets:
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Total Net Assets of Paper Packaging JV | The following table presents the Paper Packaging JV total net assets:
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LONG-TERM DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Long-Term Debt | Long-term debt is summarized as follows:
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | The following table presents the fair value for those assets and (liabilities) measured on a recurring basis as of July 31, 2020 and October 31, 2019:
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Estimated Fair Values for the Company's Senior Notes and Assets Held by Special Purpose Entities | The following table presents the estimated fair values of the Company’s Senior Notes and Assets held by special purpose entities:
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Summary of Quantitative about Significant Unobservable Inputs Used to Determine Fair Value of Impairment of Long-Lived Assets Held and Used and Net Assets Held for Sale | The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of long-lived assets held and used and net assets held for sale for the nine months ended July 31, 2020 and 2019:
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POST RETIREMENT BENEFIT PLANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Pension Cost | The components of net periodic pension cost include the following:
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Components of Net Periodic Cost for Postretirement Benefits | The components of net periodic post-retirement benefit include the following:
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EARNINGS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Class Based Basic and Diluted Earnings Per Share | The Company calculates EPS as follows:
*Diluted Class B EPS calculation is identical to Basic Class B calculation
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Computation of Earnings Per Share Basic and Diluted | The following table provides EPS information for each period, respectively:
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Summarization of Company's Class A and Class B Common and Treasury Shares | The following table summarizes the Company’s Class A and Class B common and treasury shares as of the specified dates:
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Reconciliation of Shares Used to Calculate Basic and Diluted Earnings Per Share | The following is a reconciliation of the shares used to calculate basic and diluted earnings per share:
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LEASES - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Assets And Liabilities | The following table presents the balance sheet classification of the Company’s lease assets and liabilities as of July 31, 2020:
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Components of Lease Expense | The following table presents the lease expense components for the three and nine months ended July 31, 2020:
*Amount includes short-term lease costs. The following table presents the weighted-average lease term and discount rate as of July 31, 2020:
The following table presents other required lease related information for the three and nine months ended July 31, 2020:
In compliance with ASC 842, the Company must provide the prior year disclosures required under the previous lease guidance for comparative periods presented herein. The table below contains information related to the Company’s rent expense as disclosed within the 10-K for the period ended October 31, 2019:
The following table provides the Company’s minimum rent commitments under operating leases in the next five years and the remaining years thereafter as disclosed within the 10-K for the period ended October 31, 2019:
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Maturities of Operating Lease Liabilities | Future maturity for the Company's lease liabilities, during the next five years, and in the aggregate for the years thereafter, are as follows:
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Maturities of Financing Lease Liabilities | Future maturity for the Company's lease liabilities, during the next five years, and in the aggregate for the years thereafter, are as follows:
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Schedule of Information Related to Company's Rent Expense | The table below contains information related to the Company’s rent expense as disclosed within the 10-K for the period ended October 31, 2019:
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Schedule of Company's Minimum Rent Commitments Under Operating and Capital Leases | The following table provides the Company’s minimum rent commitments under operating leases in the next five years and the remaining years thereafter as disclosed within the 10-K for the period ended October 31, 2019:
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EQUITY AND COMPREHENSIVE INCOME (LOSS) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Equity | The following table summarizes the changes in equity for the three and nine months ended July 31, 2020 (Dollars in millions, shares in thousands)
The following table summarizes the changes in equity for the three and nine months ended July 31, 2019 (Dollars in millions, shares in thousands):
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Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income (loss) for the nine months ended July 31, 2020:
The following table provides the rollforward of accumulated other comprehensive income (loss) for the nine months ended July 31, 2019:
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BUSINESS SEGMENT INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas | The following tables present net sales disaggregated by geographic area for each reportable segment for the three and nine months ended July 31, 2020:
The following tables present net sales disaggregated by geographic area for each reportable segment for the three and nine months ended July 31, 2019:
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Segment Information | The following segment information is presented for the periods indicated:
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Properties, Plants and Equipment, Net by Geographical Area | The following table presents total assets by segment and total properties, plants and equipment, net by geographic area:
|
REDEEMABLE NONCONTROLLING INTERESTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward of Redeemable Noncontrolling Interest | The following table summarizes the change in mandatorily redeemable noncontrolling interest for the nine months ended July 31, 2020:
Redeemable noncontrolling interests are reflected in the interim condensed consolidated balance sheets at redemption value. The following table summarizes the change in redeemable noncontrolling interest for the nine months ended July 31, 2020:
|
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Jul. 31, 2020 |
Oct. 31, 2019 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 318.1 | $ 0.0 |
Lease liabilities | $ 320.7 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201811Member | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | 301.2 | |
Lease liabilities | $ 305.8 |
ACQUISITIONS AND DIVESTITURES - Schedule of intangible assets assumed (Details) - Caraustar - USD ($) $ in Millions |
Apr. 30, 2020 |
Jul. 31, 2020 |
Feb. 11, 2019 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Final Purchase Price Allocation | $ 725.5 | $ 725.5 | $ 717.1 |
Customer relationships | |||
Business Acquisition [Line Items] | |||
Final Purchase Price Allocation | $ 708.0 | ||
Weighted Average Estimated Useful Life | 15 years | ||
Trademarks | |||
Business Acquisition [Line Items] | |||
Final Purchase Price Allocation | $ 15.0 | ||
Weighted Average Estimated Useful Life | 3 years | ||
Other | |||
Business Acquisition [Line Items] | |||
Final Purchase Price Allocation | $ 2.5 | ||
Weighted Average Estimated Useful Life | 4 years 7 months 6 days |
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Changes in Carrying Amount of Goodwill by Segment (Details) $ in Millions |
9 Months Ended |
---|---|
Jul. 31, 2020
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,517.8 |
Goodwill allocated to divestitures | (36.3) |
Goodwill adjustments related to acquisitions | 3.7 |
Currency translation | 20.1 |
Ending balance | 1,505.3 |
Rigid Industrial Packaging & Services | |
Goodwill [Roll Forward] | |
Beginning balance | 731.7 |
Goodwill allocated to divestitures | (0.7) |
Goodwill adjustments related to acquisitions | 0.9 |
Currency translation | 20.1 |
Ending balance | 752.0 |
Paper Packaging & Services | |
Goodwill [Roll Forward] | |
Beginning balance | 786.1 |
Goodwill allocated to divestitures | (35.6) |
Goodwill adjustments related to acquisitions | 2.8 |
Currency translation | 0.0 |
Ending balance | $ 753.3 |
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Jul. 31, 2020 |
Jul. 31, 2019 |
|
Goodwill [Line Items] | ||||
Goodwill adjustments related to acquisitions | $ 3.7 | |||
Goodwill allocated to divestitures | 36.3 | |||
Decrease in gross intangible assets | 3.4 | |||
Finite lived intangible assets currency fluctuations | 5.8 | |||
Impairment intangible asset | 0.9 | |||
Write-off of fully-amortized intangible asset (impairment of intangible assets, finite-lived) | 8.3 | |||
Amortization of intangible assets | $ 17.2 | $ 17.1 | 52.1 | $ 35.5 |
Future amortization expense, 2020 | 69.1 | 69.1 | ||
Future amortization expense, 2021 | 66.5 | 66.5 | ||
Future amortization expense, 2022 | 58.5 | 58.5 | ||
Future amortization expense, 2023 | 56.0 | 56.0 | ||
Future amortization expense, 2024 | $ 52.7 | 52.7 | ||
Paper Packaging & Services | ||||
Goodwill [Line Items] | ||||
Goodwill adjustments related to acquisitions | 2.8 | |||
Goodwill allocated to divestitures | $ 35.6 |
RESTRUCTURING CHARGES - Reconciliation of Beginning and Ending Restructuring Reserve Balances (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Jul. 31, 2020 |
Jul. 31, 2019 |
|
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 11.3 | |||
Costs incurred and charged to expense | $ 19.1 | $ 9.1 | 26.8 | $ 20.3 |
Costs paid or otherwise settled | (18.1) | |||
Restructuring reserve, ending balance | 20.0 | 20.0 | ||
Employee Separation Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 9.5 | |||
Costs incurred and charged to expense | 16.9 | 22.0 | ||
Costs paid or otherwise settled | (12.6) | |||
Restructuring reserve, ending balance | 18.9 | 18.9 | ||
Other Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 1.8 | |||
Costs incurred and charged to expense | 2.2 | 4.8 | ||
Costs paid or otherwise settled | (5.5) | |||
Restructuring reserve, ending balance | $ 1.1 | $ 1.1 |
RESTRUCTURING CHARGES - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Jul. 31, 2020 |
Jul. 31, 2019 |
|
Restructuring and Related Costs [Line Items] | ||||
Restructuring charges | $ 19.1 | $ 9.1 | $ 26.8 | $ 20.3 |
Amounts remaining to be incurred | 22.4 | 22.4 | ||
Employee Separation Costs | ||||
Restructuring and Related Costs [Line Items] | ||||
Restructuring charges | 16.9 | 22.0 | ||
Other Costs | ||||
Restructuring and Related Costs [Line Items] | ||||
Restructuring charges | $ 2.2 | $ 4.8 |
CONSOLIDATION OF VARIABLE INTEREST ENTITIES - Total Net Assets of Paper Packing JV (Details) - USD ($) $ in Millions |
Jul. 31, 2020 |
Oct. 31, 2019 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 98.5 | $ 77.3 |
Trade accounts receivable, less allowance of $0.0 in 2020 | 624.5 | 664.2 |
Properties, plants and equipment, net | 1,588.8 | 1,690.3 |
Total assets | 5,593.8 | 5,426.7 |
Accounts payable | 436.0 | 435.2 |
Allowance of trade accounts receivable | 8.4 | 6.8 |
Held by special purpose entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 51.3 | $ 51.9 |
Paper Packaging JV | Held by special purpose entities | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 0.9 | |
Trade accounts receivable, less allowance of $0.0 in 2020 | 4.6 | |
Inventories | 6.2 | |
Properties, plants and equipment, net | 35.1 | |
Other assets | 0.6 | |
Total assets | 47.4 | |
Accounts payable | 4.2 | |
Other liabilities | 1.3 | |
Liabilities | 5.5 | |
Allowance of trade accounts receivable | $ 0.0 |
LONG-TERM DEBT - Summary of Long-Term Debt (Details) - USD ($) $ in Millions |
Jul. 31, 2020 |
Oct. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,646.6 | $ 2,756.3 |
Less: current portion | 99.7 | 83.7 |
Less: deferred financing costs | 11.6 | 13.6 |
Long-term debt | 2,535.3 | 2,659.0 |
2019 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,614.8 | |
Other debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0.2 | 0.4 |
Term Loan | 2019 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,549.4 | 1,612.2 |
Domestic Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 301.2 | 351.6 |
Revolving Credit Facility | 2019 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 65.4 | 76.1 |
Less: current portion | 99.7 | |
Long-term debt | 1,515.1 | |
Senior Notes | Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 494.9 | 494.3 |
Senior Notes | Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 235.5 | $ 221.7 |
LONG-TERM DEBT - Senior Notes (Details) |
Jul. 31, 2020
USD ($)
|
Feb. 11, 2019
USD ($)
|
Jul. 15, 2011
EUR (€)
|
---|---|---|---|
2019 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Debt issued | $ 700,000,000.0 | ||
Senior Notes | Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Debt issued | $ 500,000,000.0 | ||
Interest of senior notes | 6.50% | ||
Debt issuance costs | $ 2,400,000 | ||
Senior Notes | Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Debt issued | € | € 200,000,000.0 | ||
Interest of senior notes | 7.375% |
LONG-TERM DEBT - Trade Accounts Receivable Credit Facility (Details) |
Jul. 31, 2020
USD ($)
|
Jul. 31, 2020
EUR (€)
|
Oct. 31, 2019
USD ($)
|
Sep. 24, 2019
USD ($)
|
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Long-term debt | $ 2,646,600,000 | $ 2,756,300,000 | ||
Debt Issuance Costs | 11,600,000 | 13,600,000 | ||
Domestic Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 301,200,000 | $ 351,600,000 | ||
Accounts receivable credit facilities | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 275,000,000.0 | |||
Accounts receivable credit facilities | Domestic Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 223,500,000 | |||
Debt Issuance Costs | 100,000 | |||
European RPA | ||||
Debt Instrument [Line Items] | ||||
Financing receivable maximum amount under receivable purchase agreement | 117,900,000 | € 100,000,000.0 | ||
European RPA | International Trade Accounts Receivable Credit Facilities | Foreign Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 77,700,000 |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Estimated Fair Values for the Company's Senior Notes and Assets Held by Special Purpose Entities (Details) - USD ($) $ in Millions |
Jul. 31, 2020 |
Oct. 31, 2019 |
---|---|---|
Estimated Fair Value Of Financial Instruments [Line Items] | ||
Assets | $ 5,593.8 | $ 5,426.7 |
Held by special purpose entities | ||
Estimated Fair Value Of Financial Instruments [Line Items] | ||
Assets | 51.3 | 51.9 |
Senior Notes due 2021 | Estimate of Fair Value Measurement | ||
Estimated Fair Value Of Financial Instruments [Line Items] | ||
Estimated fair value | 248.6 | 248.1 |
Senior Notes due 2027 | Estimate of Fair Value Measurement | ||
Estimated Fair Value Of Financial Instruments [Line Items] | ||
Estimated fair value | $ 533.6 | $ 537.9 |
STOCK-BASED COMPENSATION - Additional Information (Details) - 2020 LTIP - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | 36 Months Ended |
---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2020 |
Oct. 31, 2022 |
|
RSUs | Scenario, Forecast | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period on the basis of service only | 3 years | ||
Shares of restricted stock (shares) | 147,325 | ||
Weighted average grant date fair value (usd per share) | $ 37.42 | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment arrangement, expense | $ 1.2 | $ 2.0 | |
PSUs | Scenario, Forecast | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period based upon service, performance criteria and market conditions | 3 years | ||
Shares of restricted stock (shares) | 258,519 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Jul. 31, 2020 |
Jul. 31, 2019 |
Feb. 11, 2019 |
|
Income Tax Contingency [Line Items] | |||||
Income tax expense | $ 6.9 | $ 26.8 | $ 44.8 | $ 58.3 | |
Caraustar | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax liabilities | $ 133.7 | $ 133.7 | $ 185.7 |
POST RETIREMENT BENEFIT PLANS - Additional Information (Details) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Dec. 31, 2019
USD ($)
plan
|
Jul. 31, 2020
USD ($)
plan
|
Jul. 31, 2019
USD ($)
|
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company's pension contributions | $ 27.0 | $ 19.7 | |
United States | Pension Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of plans | plan | 2 | 2 | |
Employer contributions during period | $ 44.3 | ||
Decrease for settlement | 44.3 | ||
Gain on settlement | $ 0.1 | ||
Obligation period decrease | $ 19.0 | ||
Plan assets, decrease | $ 9.3 | ||
Defined benefit plan, assumptions used, discount rate | 3.38% | ||
Expected long term return on assets | 5.00% |
POST RETIREMENT BENEFIT PLANS - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Jul. 31, 2020 |
Jul. 31, 2019 |
|
Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3.6 | $ 3.8 | $ 9.6 | $ 10.1 |
Interest cost | 7.2 | 8.7 | 19.4 | 22.6 |
Expected return on plan assets | (10.5) | (11.0) | (28.7) | (28.2) |
Amortization of prior service cost | 3.4 | 1.8 | 9.8 | 5.4 |
Net periodic costs (benefits) for pension and post-retirement benefits | 3.7 | 3.3 | 10.1 | 9.9 |
Other Postretirement Benefit Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 0.1 | 0.1 | 0.3 | 0.3 |
Amortization of prior service cost | (0.1) | (0.4) | (0.4) | (1.2) |
Net periodic costs (benefits) for pension and post-retirement benefits | $ 0.0 | $ (0.3) | $ (0.1) | $ (0.9) |
EARNINGS PER SHARE - Additional Information (Details) - shares |
9 Months Ended | |
---|---|---|
Jul. 31, 2020 |
Oct. 31, 2019 |
|
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Percentage of shares outstanding used in two class method calculation | 40.00% | |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Percentage of shares outstanding used in two class method calculation | 60.00% | |
Board Of Director Authorized | ||
Class of Stock [Line Items] | ||
Number of shares authorized to be purchased (shares) | 4,703,487 | 4,703,487 |
Stock Repurchase Committee Authorized | ||
Class of Stock [Line Items] | ||
Repurchase of common stock (shares) | 0 |
EARNINGS PER SHARE - Computation of Earnings Per Share Basic and Diluted (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Jul. 31, 2020 |
Jul. 31, 2019 |
|
Numerator for basic and diluted EPS | ||||
Net income attributable to Greif, Inc. | $ 20.7 | $ 62.7 | $ 64.4 | $ 106.0 |
Cash dividends | (26.2) | (26.1) | (78.2) | (77.9) |
Undistributed net income attributable to Greif, Inc. | $ (5.5) | $ 36.6 | $ (13.8) | $ 28.1 |
EARNINGS PER SHARE - Summarization of Company's Class A and Class B Common and Treasury Shares (Details) - shares |
Jul. 31, 2020 |
Oct. 31, 2019 |
---|---|---|
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Authorized Shares (shares) | 128,000,000 | 128,000,000 |
Issued Shares (shares) | 42,281,920 | 42,281,920 |
Outstanding Shares (shares) | 26,441,986 | 26,257,943 |
Treasury Shares (shares) | 15,839,934 | 16,023,977 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Authorized Shares (shares) | 69,120,000 | 69,120,000 |
Issued Shares (shares) | 34,560,000 | 34,560,000 |
Outstanding Shares (shares) | 22,007,725 | 22,007,725 |
Treasury Shares (shares) | 12,552,275 | 12,552,275 |
EARNINGS PER SHARE - Reconciliation of Shares Used to Calculate Basic and Diluted Earnings Per Share (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Jul. 31, 2020 |
Jul. 31, 2019 |
|
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Basic shares (shares) | 26,441,986 | 26,257,943 | 26,363,123 | 26,166,612 |
Assumed conversion of restricted shares (shares) | 609 | 0 | 54 | 0 |
Diluted shares (shares) | 26,442,595 | 26,257,943 | 26,363,177 | 26,166,612 |
Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Basic shares (shares) | 22,000,000.0 | 22,000,000.0 | 22,000,000.0 | 22,000,000.0 |
Diluted shares (shares) | 22,000,000.0 | 22,000,000.0 | 22,000,000.0 | 22,000,000.0 |
Basic and diluted shares (shares) | 22,007,725 | 22,007,725 | 22,007,725 | 22,007,725 |
LEASES - Additional Information (Details) |
9 Months Ended |
---|---|
Jul. 31, 2020 | |
Minimum | |
Leases [Abstract] | |
Term of contract | 1 year |
Lessee, Lease, Description [Line Items] | |
Term of contract | 1 year |
Maximum | |
Leases [Abstract] | |
Term of contract | 22 years |
Lessee, Lease, Description [Line Items] | |
Term of contract | 22 years |
LEASES - Lease Assets and Liabilities (Details) - USD ($) $ in Millions |
Jul. 31, 2020 |
Oct. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
Operating lease assets | $ 318.1 | $ 0.0 |
Finance lease assets | 5.0 | |
Total lease assets | 323.1 | |
Current portion of operating lease liabilities | 53.2 | 0.0 |
Current finance lease liabilities | 1.8 | |
Total current lease liabilities | 55.0 | |
Operating lease liabilities | 267.5 | $ 0.0 |
Non-current finance lease liabilities | 3.2 | |
Total non-current lease liabilities | 270.7 | |
Total lease liabilities | $ 325.7 |
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Jul. 31, 2020 |
Jul. 31, 2020 |
|
Leases [Abstract] | ||
Operating lease cost | $ 17.2 | $ 50.0 |
Finance lease cost | 0.4 | 1.1 |
Variable lease cost* | 5.5 | 19.3 |
Total lease cost | $ 23.1 | $ 70.4 |
LEASES - Maturities of Operating and Financing Lease Liabilities (Details) $ in Millions |
Jul. 31, 2020
USD ($)
|
---|---|
Operating Leases | |
2020 | $ 66.7 |
2021 | 62.5 |
2022 | 54.7 |
2023 | 46.7 |
2024 | 38.6 |
Thereafter | 172.1 |
Total lease payments | 441.3 |
Less: Interest | (120.6) |
Lease liabilities | 320.7 |
Finance Leases | |
2020 | 1.4 |
2021 | 1.4 |
2022 | 1.2 |
2023 | 0.9 |
2024 | 0.5 |
Thereafter | 0.3 |
Total lease payments | 5.7 |
Less: Interest | (0.7) |
Lease liabilities | 5.0 |
Total expected payments | |
2020 | 68.1 |
2021 | 63.9 |
2022 | 55.9 |
2023 | 47.6 |
2024 | 39.1 |
Thereafter | 172.4 |
Total lease payments | 447.0 |
Less: Interest | (121.3) |
Lease liabilities | $ 325.7 |
LEASES - Other Information (Details) |
Jul. 31, 2020 |
---|---|
Weighted-average remaining lease term (years): | |
Operating leases | 11 years 3 months 18 days |
Finance leases | 3 years 9 months 18 days |
Weighted-average discount rate: | |
Operating leases | 3.61% |
Finance leases | 3.33% |
LEASES - Cash Flow (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Jul. 31, 2020 |
Jul. 31, 2020 |
|
Leases [Abstract] | ||
Operating cash flows used for operating leases | $ 16.9 | $ 52.2 |
Financing cash flows used for finance leases | 0.3 | 1.0 |
Leased assets obtained in exchange for new operating lease liabilities | 0.8 | 63.9 |
Leased assets obtained in exchange for new finance lease liabilities | $ 0.1 | $ 0.4 |
LEASES - Information Related to Company's Rent Expense (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jan. 31, 2020 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Leases [Abstract] | |||
Rent Expense | $ 86.2 | $ 47.1 | $ 41.0 |
LEASES - Company's Minimum Rent Commitments Under Operating and Capital Leases (Details) $ in Millions |
Oct. 31, 2019
USD ($)
|
---|---|
Operating Leases | |
2020 | $ 64.8 |
2021 | 57.0 |
2022 | 48.7 |
2023 | 40.1 |
2024 | 31.6 |
Thereafter | 117.5 |
Total | 359.7 |
Capital Leases | |
2020 | 1.8 |
2021 | 1.6 |
2022 | 1.3 |
2023 | 1.0 |
2024 | 0.6 |
Thereafter | 0.3 |
Total | $ 6.6 |
EQUITY EARNINGS OF UNCONSOLIDATED AFFILIATES, NET OF TAX AND NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS (Detail) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Mar. 31, 2025 |
|
Schedule of Equity Method Investments [Line Items] | |||
Purchases of equity method investments | $ 3.6 | $ 0.0 | |
Centurion Container LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchases of equity method investments | $ 3.6 | ||
Option to acquirer ownership interest | 80.00% | ||
Centurion Container LLC | Scenario, Forecast | |||
Schedule of Equity Method Investments [Line Items] | |||
Option to acquirer ownership interest | 100.00% |
BUSINESS SEGMENT INFORMATION - Additional Information (Details) |
9 Months Ended |
---|---|
Jul. 31, 2020
Segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 8 |
Number of reportable business segment | 4 |
REDEEMABLE NONCONTROLLING INTERESTS - Rollforward of Mandatorily Redeemable Noncontrolling Interest (Details) $ in Millions |
9 Months Ended |
---|---|
Jul. 31, 2020
USD ($)
| |
Redeemable Noncontrolling Interest, Equity [Roll Forward] | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 21.3 |
Current period mark to redemption value | (2.2) |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 18.6 |
Container Life Cycle Management LLC | |
Redeemable Noncontrolling Interest, Equity [Roll Forward] | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 8.4 |
Current period mark to redemption value | 0.0 |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 8.4 |
REDEEMABLE NONCONTROLLING INTERESTS - Additional Information (Details) |
9 Months Ended |
---|---|
Jul. 31, 2020
joint_venture
| |
Paper Packaging & Services | |
Redeemable Noncontrolling Interest [Line Items] | |
Number of joint ventures | 2 |
Rigid Industrial Packaging & Services | |
Redeemable Noncontrolling Interest [Line Items] | |
Number of joint ventures | 1 |
REDEEMABLE NONCONTROLLING INTERESTS - Rollforward of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2020 |
Jul. 31, 2019 |
Jul. 31, 2020 |
Jul. 31, 2019 |
|
Redeemable Noncontrolling Interest, Equity [Roll Forward] | ||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 21.3 | |||
Current period mark to redemption value | (2.2) | |||
Redeemable noncontrolling interest share of income and other | $ 0.3 | $ (0.5) | 0.2 | $ (1.8) |
Dividends to redeemable noncontrolling interest and other | (0.7) | |||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 18.6 | $ 18.6 |
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