Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Dec. 28, 2019 | Jan. 31, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | BERRY GLOBAL GROUP, INC. | |
Entity Central Index Key | 0001378992 | |
Current Fiscal Year End Date | --09-26 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 132.4 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 28, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-35672 | |
Entity Tax Identification Number | 20-5234618 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 101 Oakley Street | |
Entity Address, City or Town | Evansville | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47710 | |
City Area Code | 812 | |
Local Phone Number | 424-2904 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | BERY | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Consolidated Statements of Income (Unaudited) [Abstract] | ||
Net sales | $ 2,816 | $ 1,972 |
Costs and expenses: | ||
Cost of goods sold | 2,296 | 1,616 |
Selling, general and administrative | 229 | 124 |
Amortization of intangibles | 75 | 42 |
Restructuring and transaction activities | 17 | 14 |
Operating income | 199 | 176 |
Other expense, net | 13 | 0 |
Interest expense, net | 118 | 64 |
Income before income taxes | 68 | 112 |
Income tax expense | 21 | 24 |
Net income | $ 47 | $ 88 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.36 | $ 0.67 |
Diluted (see Note 13) (in dollars per share) | $ 0.35 | $ 0.66 |
Outstanding weighted-average shares: | ||
Basic (in shares) | 132.3 | 131.1 |
Diluted (in shares) | 134.3 | 133.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||
Net income | $ 47 | $ 88 |
Other comprehensive income (loss), net of tax: | ||
Currency translation | 92 | (4) |
Derivative instruments | 13 | (17) |
Other comprehensive income (loss) | 105 | (21) |
Comprehensive income | $ 152 | $ 67 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 673 | $ 750 |
Accounts receivable (less allowance of $28 and $28, respectively) | 1,400 | 1,526 |
Finished goods | 833 | 743 |
Raw materials and supplies | 579 | 581 |
Prepaid expenses and other current assets | 188 | 157 |
Total current assets | 3,673 | 3,757 |
Noncurrent assets: | ||
Property, plant, and equipment | 4,799 | 4,714 |
Goodwill and intangible assets | 7,840 | 7,831 |
Right-of-use assets | 596 | 0 |
Other assets | 116 | 167 |
Total assets | 17,024 | 16,469 |
Current liabilities: | ||
Accounts payable | 1,062 | 1,159 |
Accrued employee costs | 201 | 214 |
Other current liabilities | 718 | 562 |
Current portion of long-term debt | 96 | 104 |
Total current liabilities | 2,077 | 2,039 |
Noncurrent liabilities: | ||
Long-term debt, less current portion | 11,140 | 11,261 |
Deferred income taxes | 731 | 803 |
Employee benefit obligations | 328 | 327 |
Operating lease liabilities | 502 | 0 |
Other long-term liabilities | 460 | 421 |
Total liabilities | 15,238 | 14,851 |
Stockholders' equity: | ||
Common stock (132.5 and 132.3 million shares issued, respectively) | 1 | 1 |
Additional paid-in capital | 970 | 949 |
Retained earnings | 1,096 | 1,054 |
Accumulated other comprehensive loss | (281) | (386) |
Total stockholders' equity | 1,786 | 1,618 |
Total liabilities and stockholders' equity | $ 17,024 | $ 16,469 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Current assets: | ||
Accounts receivable, allowance | $ 28 | $ 28 |
Stockholders' equity: | ||
Common stock, shares issued (in shares) | 132.5 | 132.3 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
Balance at Sep. 29, 2018 | $ 1 | $ 870 | $ (156) | $ 719 | $ 1,434 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 0 | 0 | 0 | 88 | 88 |
Other comprehensive income (loss) | 0 | 0 | (21) | 0 | (21) |
Share-based compensation | 0 | 3 | 0 | 0 | 3 |
Proceeds from issuance of common stock | 0 | 5 | 0 | 0 | 5 |
Common stock repurchased and retired | 0 | (2) | 0 | (52) | (54) |
Balance at Dec. 29, 2018 | 1 | 876 | (177) | 755 | 1,455 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of lease accounting standard | ASU 2016-02 [Member] | 0 | 0 | 0 | (5) | (5) |
Balance at Sep. 28, 2019 | 1 | 949 | (386) | 1,054 | 1,618 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 0 | 0 | 0 | 47 | 47 |
Other comprehensive income (loss) | 0 | 0 | 105 | 0 | 105 |
Share-based compensation | 0 | 19 | 0 | 0 | 19 |
Proceeds from issuance of common stock | 0 | 2 | 0 | 0 | 2 |
Balance at Dec. 28, 2019 | $ 1 | $ 970 | $ (281) | $ 1,096 | $ 1,786 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 47 | $ 88 |
Adjustments to reconcile net cash provided by operating activities: | ||
Depreciation | 141 | 96 |
Amortization of intangibles | 75 | 42 |
Non-cash interest | 4 | (1) |
Deferred income tax | (16) | 4 |
Share-based compensation expense | 19 | 3 |
Other non-cash operating activities, net | 17 | 4 |
Changes in working capital | (68) | (71) |
Changes in other assets and liabilities | (1) | (4) |
Net cash from operating activities | 218 | 161 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment, net | (148) | (75) |
Net cash from investing activities | (148) | (75) |
Cash Flows from Financing Activities: | ||
Repayments on long-term borrowings | (164) | (110) |
Proceeds from issuance of common stock | 2 | 5 |
Repurchase of common stock | 0 | (52) |
Payment of tax receivable agreement | 0 | (16) |
Debt financing costs | (2) | 0 |
Net cash from financing activities | (164) | (173) |
Effect of exchange rate changes on cash | 17 | (1) |
Net change in cash | (77) | (88) |
Cash and cash equivalents at beginning of period | 750 | 381 |
Cash and cash equivalents at end of period | $ 673 | $ 293 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 28, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Berry Global Group, Inc. ("the Company," "we," or "Berry") have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates The Company has recast certain prior period amounts to conform to current reporting. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 28, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates to the FASB's Accounting Standards Codification. During fiscal 2020, with the exception of the below, there have been no developments to the recently adopted accounting pronouncements from those disclosed in the Company's 2019 Annual Report on Form 10-K that are considered to have a material impact on our unaudited consolidated financial statements. Leases Effective September 29, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), including all related amendments, using the modified retrospective approach and recognized the cumulative effect of adoption to retained earnings. Under the new standard, the lessee of an operating lease is required to: 1) recognize a right-of-use asset and a lease liability in the statement of financial position, 2) recognize a single lease cost allocated over the lease term generally on a straight-line basis, and 3) classify all cash payments within operating activities on the statement of cash flows. See Note 6. Leases for more information. Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) and issued subsequent amendments to the initial guidance. The new standard requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model, which includes historical experience, current conditions, and reasonable and supportable forecasts. The new standard also requires enhanced disclosure. The new standard is effective for interim and annual periods beginning after December 15, 2019. The Company is in the process of evaluating this new standard, however, the Company does not anticipate this to have a material impact. Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans. The new standard removes requirements to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the effects of a one-percentage-point changes in assumed health care cost trend rates. The standard also adds requirements to disclose the reasons for significant gains and losses related to changes in the benefit obligations for the period and the accumulated benefit obligation ("ABO") for plans with ABOs in excess of plan assets. The new standard will be effective for fiscal years ending after December 15, 2020. The Company is currently evaluating the impact of the adoption of this standard to our disclosures. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The new standard will be effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of the adoption of this standard to our disclosures. |
Revenue and Accounts Receivable
Revenue and Accounts Receivable | 3 Months Ended |
Dec. 28, 2019 | |
Revenue and Accounts Receivable [Abstract] | |
Revenue | 3. Revenue and Accounts Receivable Our revenues are primarily derived from the sale of plastic packaging products to customers. We consider the promise to transfer products to be our sole performance obligation. If the consideration agreed to in a contract includes a variable amount, we estimate the amount of consideration we expect to be entitled to in exchange for transferring the promised goods to the customer using the most likely amount method. Our main source of variable consideration are customer rebates. The accrual for customer rebates was $127 million and $114 million at December 28, 2019 and September 28, 2019, respectively, and is included in Other current liabilities on the Consolidated Balance Sheets. The Company disaggregates revenue based on reportable business segment, geography, and significant product line. Refer to Note 10. Segment and Geographic Data for further information. |
Accounts Receivable | The Company has entered into various qualifying factoring agreements to sell certain receivables to third-party financial institutions. The transfer of receivables is accounted for as a sale, without recourse. Net sales available under qualifying U.S. based programs were $222 million and $212 million for the three months ended December 28, 2019 and December 29, 2018, respectively. There were no amounts outstanding from financial institutions related to these programs. The fees associated with the transfer of receivables for all programs were not material for any of the periods presented. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Dec. 28, 2019 | |
Acquisitions and Dispositions [Abstract] | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions RPC Group Plc In July 2019, the Company completed the acquisition of the entire outstanding share capital of RPC Group Plc (“RPC”), for aggregate consideration of $6.1 billion. RPC is a leading plastic product design and engineering company for packaging and select non-packaging markets, with 189 sites in 34 countries. RPC develops and manufactures a diverse range of products for a wide variety of customers, including many household names, and enjoys strong market positions in many of the end markets it serves and the geographical areas in which it operates. It uses a wide range of polymer conversion techniques in both rigid and flexible plastics manufacture, and is one of the largest plastic converters in Europe. The international based facilities are operated within the Consumer Packaging International segment with the remaining U.S. based facilities operated within the Consumer Packaging North America segment. The results of RPC have been included in the consolidated results of the Company since the date of the acquisition. The acquisition has been accounted for under the purchase method of accounting. Under this method, the assets acquired and liabilities assumed have been recorded based on preliminary estimates of fair value. The preliminary fair value estimates were determined based on our historical acquisition experience. The final purchase accounting allocations for the RPC acquisition will depend on a number of factors, including the final valuation of our long-lived tangible and identified intangible assets acquired and liabilities assumed, and finalization of income tax effects of the opening balance sheet. The actual fair values of RPC’s assets acquired, liabilities assumed and resulting goodwill may differ materially once finalized. The preliminary estimated fair value of assets acquired and liabilities assumed consisted of working capital of $700 million, property and equipment of $2,375 million, intangible assets of $1,712 million, goodwill of $2,205 million and other assets and long-term liabilities of $922 million. The working capital includes a $39 million step up of inventory to fair value. The Company has recognized goodwill on this transaction primarily as a result of expected cost synergies, and expects goodwill to be partially deductible for tax purposes. To finance the purchase, the Company issued $1,250 million aggregate principal amount of 4.875% first priority senior secured notes due 2026, $500 million aggregate principal amount of 5.625% second priority senior secured notes due 2027, and entered into incremental term loans due July 2026, to fund the remainder of the purchase price. When including RPC results for the periods prior to the acquisition date, unaudited pro forma net sales and net income were $3.2 billion and $97 million, respectively, for the quarterly period ended December 29, 2018. The unaudited pro forma net sales and net income assume that the RPC acquisition had occurred as of the beginning of the period. Seal For Life In July 2019, the Company completed the sale of its Seal For Life ("SFL") business which was operated in our Health, Hygiene & Specialties reporting segment for net proceeds of $325 million. SFL recorded $96 million in net sales during fiscal 2019. |
Restructuring and Transaction A
Restructuring and Transaction Activities | 3 Months Ended |
Dec. 28, 2019 | |
Restructuring and Transaction Activities [Abstract] | |
Restructuring and Transaction Activities | 5. Restructuring and Transaction Activities The table below includes the significant components of the restructuring and transaction activities, by reporting segment: Quarterly Period Ended December 28, 2019 December 29, 2018 Consumer Packaging International $ 10 $ — Consumer Packaging North America 2 1 Engineered Materials 3 1 Health, Hygiene & Specialties 2 12 Consolidated $ 17 $ 14 The table below sets forth the activity with respect to the restructuring and transaction activities accrual at December 28, 2019 : Restructuring Employee Severance and Benefits Facility Exit Costs Non-cash Impairment Charges Transaction Activities Total Balance at September 28, 2019 $ 2 $ 5 $ — $ — $ 7 Charges 4 — 2 11 17 Non-cash asset impairment — — (2 ) — (2 ) Cash payments (2 ) — — (11 ) (13 ) Balance at December 28, 2019 $ 4 $ 5 $ — $ — $ 9 |
Leases
Leases | 3 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases | 6. Leases During the first quarter of fiscal 2020, the Company adopted ASU 2016-02, Leases (Topic 842). The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. Under the new standard, we recognize right-of-use assets and lease liabilities for leases with original lease terms greater than one year based on the present value of lease payments over the lease term using our incremental borrowing rate on a collateralized basis. Short-term leases, with original lease terms of less than one year, are not recognized on the balance sheet. We are party to certain leases, namely for manufacturing facilities, which offer renewal options to extend the original lease term. Renewal options are included in the right-of-use asset and lease liability based on our assessment of the probability that the options will be exercised. We have elected the package of practical expedients which allows the Company to not reassess: (i) whether any expired or existing contracts are or contain leases (ii) lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. Additionally, we have elected the practical expedient to not separate lease and non-lease components for all asset classes. Supplemental lease information is as follows: Leases Classification December 28, 2019 Assets Operating lease right-of-use assets Right-of-use assets $ 596 Finance lease right-of-use assets Property, plant, and equipment 108 Current liabilities Operating lease liabilities Other current liabilities $ 110 Finance lease liabilities Current portion of long-term debt 19 Non-current liabilities Operating lease liabilities Operating lease liabilities $ 502 Finance lease liabilities Long-term debt, less current portion 82 Lease cost Quarterly Period Ended December 28, 2019 Operating lease cost $ 29 Finance lease cost: Amortization of right-of-use assets 4 Interest on lease liabilities 1 Total finance lease cost 5 Short-term lease cost 4 Total lease cost $ 38 Cash paid for amounts included in lease liabilities Quarterly Period Ended December 28, 2019 Operating cash flows from operating leases $ 29 Operating cash flows from finance leases 1 Financing cash flows from finance leases 13 December 28, 2019 Weighted-average remaining lease term - operating leases 8 years Weighted-average remaining lease term - finance leases 4 years Weighted-average discount rate - operating leases 4.6 % Weighted-average discount rate - finance leases 3.7 % At December 28, 2019 , annual lease commitments were as follows: Fiscal Year Operating Leases Finance Leases Remainder of 2020 $ 114 $ 23 2021 105 27 2022 90 26 2023 77 13 2024 67 8 Thereafter 290 11 Total lease payments 743 108 Less: Interest (131 ) (7 ) Present value of lease liabilities $ 612 $ 101 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Dec. 28, 2019 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt consists of the following: Facility Maturity Date December 28, 2019 September 28, 2019 Term loan October 2022 $ 1,545 $ 1,545 Term loan January 2024 452 489 Term loan July 2026 4,239 4,250 Term loan - euro denominated July 2026 1,199 1,176 Revolving line of credit May 2024 — — 5.50% Second Priority Senior Secured Notes May 2022 500 500 6.00% Second Priority Senior Secured Notes October 2022 300 400 5.125% Second Priority Senior Secured Notes July 2023 700 700 4.50% Second Priority Senior Secured Notes February 2026 500 500 4.875% First Priority Senior Secured Notes July 2026 1,250 1,250 5.625% Second Priority Senior Secured Notes July 2027 500 500 Debt discounts and deferred fees (105 ) (112 ) Finance leases and other Various 156 167 Total long-term debt 11,236 11,365 Current portion of long-term debt (96 ) (104 ) Long-term debt, less current portion $ 11,140 $ 11,261 The Company was in compliance with all debt covenants for all periods presented. Debt discounts and deferred financing fees are presented net of Long-term debt, less the current portion on the Consolidated Balance Sheets and are amortized to Interest expense, net on the Consolidated Statements of Income through maturity. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Dec. 28, 2019 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | 8. Financial Instruments and Fair Value Measurements In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. The Company may use derivative financial instruments to help manage market risk and reduce the exposure to fluctuations in interest rates and foreign currencies. These financial instruments are not used for trading or other speculative purposes. Cross-Currency Swaps The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk. The swap agreements mature May 2022 (€250 million) and June 2024 (€1,625 million and £700 million). In addition to the cross-currency swaps, we hedge a portion of our foreign currency risk by designating foreign currency denominated long-term debt as net investment hedges of certain foreign operations. As of December 28, 2019, we had outstanding long-term debt of €1,072 million that was designated as a hedge of our net investment in certain euro-denominated foreign subsidiaries. When valuing cross-currency swaps the Company utilizes Level 2 inputs (substantially observable). Interest Rate Swaps The primary purpose of the Company’s interest rate swap activities is to manage interest expense variability associated with our outstanding variable rate term loan debt. When valuing interest rate swaps the Company utilizes Level 2 inputs (substantially observable). As of December 28, 2019, the Company effectively had (i) a $450 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 2.000%, with an expiration in May 2022, (ii) a $1 billion interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 2.808% with an expiration in September 2021, (iii) a $400 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 2.533% with an expiration in July 2023, (iv) a $884 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 1.857%, with an expiration in June 2024, and (v) a $473 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 2.050%, with an expiration in June 2024. The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Balances on a gross basis are as follows: Derivative Instruments Hedge Designation Balance Sheet Location December 28, 2019 September 28, 2019 Cross-currency swaps Designated Other assets $ 28 $ 88 Cross-currency swaps Designated Other long-term liabilities 42 — Interest rate swaps Designated Other long-term liabilities 61 81 The effect of the Company's derivative instruments on the Consolidated Statements of Income is as follows: Quarterly Period Ended Derivative Instruments Statements of Income Location December 28, 2019 December 29, 2018 Cross-currency swaps Interest expense, net $ (2 ) $ (4 ) Interest rate swaps Interest expense, net 17 (2 ) Non-recurring Fair Value Measurements The Company has certain assets that are measured at fair value on a non-recurring basis when impairment indicators are present or when the Company completes an acquisition. The Company adjusts certain long-lived assets to fair value only when the carrying values exceed the fair values. The categorization of the framework used to value the assets is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. These assets that are subject to our annual impairment analysis primarily include our definite lived and indefinite lived intangible assets, including Goodwill and our property, plant and equipment. The Company reviews Goodwill and other indefinite lived assets for impairment as of the first day of the fourth fiscal quarter each year and more frequently if impairment indicators exist. The Company determined Goodwill and other indefinite lived assets were not impaired in our annual fiscal 2019 assessment. No impairment indicators were identified in the current quarter. Included in the following table are the major categories of assets measured at fair value on a non-recurring basis as of December 28, 2019 and September 28, 2019 , along with the impairment loss recognized on the fair value measurement during the period: As of December 28, 2019 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 5,084 5,084 — Definite lived intangible assets — — 2,508 2,508 — Property, plant, and equipment — — 4,799 4,799 2 Total $ — $ — $ 12,639 $ 12,639 $ 2 As of September 28, 2019 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 5,051 5,051 — Definite lived intangible assets — — 2,532 2,532 — Property, plant, and equipment — — 4,714 4,714 8 Total $ — $ — $ 12,545 $ 12,545 $ 8 The Company's financial instruments consist primarily of cash and cash equivalents, long-term debt, interest rate and cross-currency swap agreements, and capital lease obligations. The fair value of our marketable long-term indebtedness exceeded book value by $167 million as of December 28, 2019. The Company's long-term debt fair values were determined using Level 2 inputs as other significant observable inputs were not available. The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk. The swap agreements mature May 2022 (€250 million) and June 2024 (€1,625 million and £700 million). In addition to the cross-currency swaps, we hedge a portion of our foreign currency risk by designating foreign currency denominated long-term debt as net investment hedges of certain foreign operations. As of December 28, 2019, we had outstanding long-term debt of €1,072 million that was designated as a hedge of our net investment in certain euro-denominated foreign subsidiaries. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes The effective tax rate was 31% for the quarter and was negatively impacted by 4% from foreign rate differential, 3% from uncertain tax positions recognized in the quarter, and other discrete items. |
Segment and Geographic Data
Segment and Geographic Data | 3 Months Ended |
Dec. 28, 2019 | |
Segment and Geographic Data [Abstract] | |
Segment and Geographic Data | 10. Segment and Geographic Data The Company's operations are organized into four reporting segments: Consumer Packaging International, Consumer Packaging North America, Engineered Materials, and Health, Hygiene & Specialties. The structure is designed to align us with our customers, provide optimal service, drive future growth, and to facilitate synergies realization. Selected information by reportable segment is presented in the following tables: Quarterly Period Ended December 28, 2019 December 29, 2018 Net sales: Consumer Packaging International $ 1,010 $ 51 Consumer Packaging North America 680 601 Engineered Materials 585 661 Health, Hygiene & Specialties 541 659 Total net sales $ 2,816 $ 1,972 Operating income: Consumer Packaging International $ 45 $ 4 Consumer Packaging North America 49 33 Engineered Materials 70 93 Health, Hygiene & Specialties 35 46 Total operating income $ 199 $ 176 Depreciation and amortization: Consumer Packaging International $ 81 $ 4 Consumer Packaging North America 65 53 Engineered Materials 29 31 Health, Hygiene & Specialties 41 50 Total depreciation and amortization $ 216 $ 138 Selected information by geographical region is presented in the following tables: Quarterly Period Ended December 28, 2019 December 29, 2018 Net sales: United States & Canada $ 1,513 $ 1,565 Europe 1,003 192 Rest of world 300 215 Total net sales $ 2,816 $ 1,972 Selected information by product line is presented in the following tables: Quarterly Period Ended December 28, 2019 December 29, 2018 Net sales: Packaging 81 100 Non-packaging 19 — Consumer Packaging International 100 % 100 % Rigid Open Top 45 44 Rigid Closed Top 55 56 Consumer Packaging North America 100 % 100 % Core Films 37 39 Retail & Industrial 63 61 Engineered Materials 100 % 100 % Health 16 15 Hygiene 56 58 Specialties 28 27 Health, Hygiene & Specialties 100 % 100 % |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Dec. 28, 2019 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 11. Contingencies and Commitments The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company's legal and financial liability with respect to such proceedings cannot be estimated with certainty, we believe that any ultimate liability would not be material to our financial statements. The Company has various purchase commitments for raw materials, supplies, and property and equipment incidental to the ordinary conduct of business. |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Dec. 28, 2019 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | 12. Share Repurchase Program No shares were repurchased during the quarter. Authorized share repurchases of $393 million remain available to the Company. |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Share | 3 Months Ended |
Dec. 28, 2019 | |
Basic and Diluted Net Income Per Share [Abstract] | |
Basic and Diluted Net Income Per Share | 13. Basic and Diluted Net Income Per Share Basic net income per share is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income per share is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method and the if-converted method. For purposes of this calculation, stock options are considered to be common stock equivalents and are only included in the calculation of diluted net income per share when their effect is dilutive. For the three months ended December 28, 2019, 7.2 million shares were excluded from the diluted net income per share calculation as their effect would be anti-dilutive. The following tables provide a reconciliation of the numerator and denominator of the basic and diluted net income per share calculations: Quarterly Period Ended (in millions, except per share amounts) December 28, 2019 December 29, 2018 Numerator Consolidated net income $ 47 $ 88 Denominator Weighted average common shares outstanding - basic 132.3 131.1 Dilutive shares 2.0 2.7 Weighted average common and common equivalent shares outstanding - diluted 134.3 133.8 Per common share income Basic $ 0.36 $ 0.67 Diluted $ 0.35 $ 0.66 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 28, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 14. Accumulated Other Comprehensive Loss The components and activity of Accumulated other comprehensive loss are as follows: Quarterly Period Ended Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance at September 28, 2019 $ (279 ) $ (56 ) $ (51 ) $ (386 ) Other comprehensive income before reclassifications 67 — 1 68 Net amount reclassified from accumulated other comprehensive loss — — 17 17 Provision for income taxes 25 — (5 ) 20 Balance at December 28, 2019 $ (187 ) $ (56 ) $ (38 ) $ (281 ) Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance at September 29, 2018 $ (175 ) $ (13 ) $ 32 $ (156 ) Other comprehensive loss before reclassifications (4 ) — (22 ) (26 ) Net amount reclassified from accumulated other comprehensive loss — — (2 ) (2 ) Provision for income taxes — — 7 7 Balance at December 29, 2018 $ (179 ) $ (13 ) $ 15 $ (177 ) |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 3 Months Ended |
Dec. 28, 2019 | |
Guarantor and Non-Guarantor Financial Information [Abstract] | |
Guarantor and Non-Guarantor Financial Information | 15. Guarantor and Non-Guarantor Financial Information Berry Global, Inc. (“Issuer”) has notes outstanding which are fully, jointly, severally, and unconditionally guaranteed by its parent, Berry Global Group, Inc. (for purposes of this Note, “Parent”) and substantially all of Issuer’s domestic subsidiaries. Separate narrative information or financial statements of the guarantor subsidiaries have not been included because they are 100% owned by Parent and the guarantor subsidiaries unconditionally guarantee such debt on a joint and several basis. A guarantee of a guarantor subsidiary of the securities will terminate upon the following customary circumstances: the sale of the capital stock of such guarantor if such sale complies with the indentures, the designation of such guarantor as an unrestricted subsidiary, the defeasance or discharge of the indenture or in the case of a restricted subsidiary that is required to guarantee after the relevant issuance date, if such guarantor no longer guarantees certain other indebtedness of the issuer. The guarantees of the guarantor subsidiaries are also limited as necessary to prevent them from constituting a fraudulent conveyance under applicable law and any guarantees guaranteeing subordinated debt are subordinated to certain other of the Company’s debts. Parent also guarantees the Issuer’s term loans and revolving credit facilities. The guarantor subsidiaries guarantee our term loans and are co-borrowers under our revolving credit facility. Presented below is condensed consolidating financial information for the Parent, Issuer, guarantor subsidiaries and non-guarantor subsidiaries. The Issuer and guarantor financial information includes all of our domestic operating subsidiaries; our non-guarantor subsidiaries include our foreign subsidiaries, certain immaterial domestic subsidiaries and the unrestricted subsidiaries under the Issuer’s indentures. The Parent uses the equity method to account for its ownership in the Issuer in the Condensed Consolidating Supplemental Financial Statements. The Issuer uses the equity method to account for its ownership in the guarantor and non-guarantor subsidiaries. All consolidating entries are included in the eliminations column along with the elimination of intercompany balances. Condensed Supplemental Consolidated Statements of Income Quarterly Period Ended December 28, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 129 $ 1,238 $ 1,449 $ — $ 2,816 Cost of goods sold — 78 1,025 1,193 — 2,296 Selling, general and administrative — 28 88 113 — 229 Amortization of intangibles — — 32 43 — 75 Restructuring and transaction activities — 4 2 11 — 17 Operating income — 19 91 89 — 199 Other expense (income), net — 5 (1 ) 9 — 13 Interest expense, net — 9 84 25 — 118 Equity in net income of subsidiaries (68 ) (24 ) — — 92 — Income before income taxes 68 29 8 55 (92 ) 68 Income tax expense 21 (18 ) — 39 (21 ) 21 Net income $ 47 $ 47 $ 8 $ 16 $ (71 ) $ 47 Comprehensive net income $ 47 $ (41 ) $ 8 $ 209 $ (71 ) $ 152 Quarterly Period Ended December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 141 $ 1,377 $ 454 $ — $ 1,972 Cost of goods sold — 85 1,141 390 — 1,616 Selling, general and administrative — 13 87 24 — 124 Amortization of intangibles — — 36 6 — 42 Restructuring and transaction activities — — 8 6 — 14 Operating income (loss) — 43 105 28 — 176 Other income, net — 1 1 (2 ) — — Interest expense, net — 5 45 14 — 64 Equity in net income of subsidiaries (112 ) (67 ) — — 179 — Income before income taxes 112 104 59 16 (179 ) 112 Income tax expense 24 16 — 8 (24 ) 24 Net income $ 88 $ 88 $ 59 $ 8 $ (155 ) $ 88 Comprehensive net income $ 88 $ 79 $ 59 $ (4 ) $ (155 ) $ 67 Condensed Supplemental Consolidated Balance Sheets December 28, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Current assets $ — $ 269 $ 1,153 $ 2,251 $ — $ 3,673 Intercompany receivable 549 1,078 — 332 (1,959 ) — Property, plant, and equipment — 77 1,696 3,026 — 4,799 Other assets 1,968 13,415 4,671 4,420 (15,922 ) 8,552 Total assets $ 2,517 $ 14,839 $ 7,520 $ 10,029 $ (17,881 ) $ 17,024 Current liabilities $ — $ 460 $ 514 $ 1,103 $ — $ 2,077 Intercompany payable — — 1,959 — (1,959 ) — Other long-term liabilities 731 11,715 68 647 — 13,161 Stockholders' equity 1,786 2,664 4,979 8,279 (15,922 ) 1,786 Total liabilities and stockholders' equity $ 2,517 $ 14,839 $ 7,520 $ 10,029 $ (17,881 ) $ 17,024 September 28, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Current assets $ — $ 172 $ 1,065 $ 2,520 $ — $ 3,757 Intercompany receivable 503 1,401 — 381 (2,285 ) — Property, plant and equipment — 78 1,645 2,991 — 4,714 Other assets 1,918 12,873 4,706 4,252 (15,751 ) 7,998 Total assets $ 2,421 $ 14,524 $ 7,416 $ 10,144 $ (18,036 ) $ 16,469 Current liabilities $ — $ 349 $ 513 $ 1,177 $ — $ 2,039 Intercompany payable — — 1,859 426 (2,285 ) — Other long-term liabilities 803 11,465 73 471 — 12,812 Stockholders' equity 1,618 2,710 4,971 8,070 (15,751 ) 1,618 Total liabilities and stockholders' equity $ 2,421 $ 14,524 $ 7,416 $ 10,144 $ (18,036 ) $ 16,469 Condensed Supplemental Consolidated Statements of Cash Flows Quarterly Period Ended December 28, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flow from Operating Activities $ — $ 42 $ 97 $ 79 $ — $ 218 Cash Flow from Investing Activities Additions to property, plant, and equipment — — (66 ) (82 ) — (148 ) (Contributions) distributions to/from subsidiaries (2 ) 2 — — — — Acquisition of business — — — 1 — 1 Divestiture of business — (1 ) — — — (1 ) Intercompany advances (repayments) — 191 — — (191 ) — Net cash from investing activities (2 ) 192 (66 ) (81 ) (191 ) (148 ) Cash Flow from Financing Activities Repayments on long-term borrowings — (161 ) (1 ) (2 ) — (164 ) Proceeds from issuance of common stock 2 — — — — 2 Debt financing costs — (2 ) — — — (2 ) Changes in intercompany balances — — (6 ) (185 ) 191 — Net cash from financing activities 2 (163 ) (7 ) (187 ) 191 (164 ) Effect of exchange rate changes on cash — — — 17 — 17 Net change in cash — 71 24 (172 ) — (77 ) Cash and cash equivalents at beginning of period — 42 2 706 — 750 Cash and cash equivalents at end of period $ — $ 113 $ 26 $ 534 $ — $ 673 Quarterly Period Ended December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flow from Operating Activities $ — $ 55 $ 155 $ (49 ) $ — $ 161 Cash Flow from Investing Activities Additions to property, plant, and equipment — — (59 ) (16 ) — (75 ) (Contributions) distributions to/from subsidiaries 47 (47 ) — — — — Intercompany advances (repayments) — 38 — — (38 ) — Net cash from investing activities 47 (9 ) (59 ) (16 ) (38 ) (75 ) Cash Flow from Financing Activities Repayments on long-term borrowings — (108 ) (2 ) — — (110 ) Proceeds from issuance of common stock 5 — — — — 5 Repurchase of common stock (52 ) — — — — (52 ) Payment of tax receivable agreement (16 ) — — — — (16 ) Changes in intercompany balances 16 — (93 ) 39 38 — Net cash from financing activities (47 ) (108 ) (95 ) 39 38 (173 ) Effect of exchange rate changes on cash — — — (1 ) — (1 ) Net change in cash — (62 ) 1 (27 ) — (88 ) Cash and cash equivalents at beginning of period — 133 4 244 — 381 Cash and cash equivalents at end of period $ — $ 71 $ 5 $ 217 $ — $ 293 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events In January 2020, the Company (i) issued €700 million aggregate principal amount of 1.00% first priority senior secured notes due 2025 and €375 million aggregate principal amount of 1.50% first priority senior secured notes due 2027 (the “Euro Notes”) and (ii) refinanced its existing $4.25 billion Term loan maturing in July 2026, resulting in a 50 basis point interest rate reduction. The proceeds of the Euro Notes were used to prepay the entire outstanding amount of our existing euro denominated Term loan. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 28, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Berry Global Group, Inc. ("the Company," "we," or "Berry") have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Use of Estimates | In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates |
Reclassifications | The Company has recast certain prior period amounts to conform to current reporting. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Dec. 28, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Changes to GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates to the FASB's Accounting Standards Codification. During fiscal 2020, with the exception of the below, there have been no developments to the recently adopted accounting pronouncements from those disclosed in the Company's 2019 Annual Report on Form 10-K that are considered to have a material impact on our unaudited consolidated financial statements. Leases Effective September 29, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), including all related amendments, using the modified retrospective approach and recognized the cumulative effect of adoption to retained earnings. Under the new standard, the lessee of an operating lease is required to: 1) recognize a right-of-use asset and a lease liability in the statement of financial position, 2) recognize a single lease cost allocated over the lease term generally on a straight-line basis, and 3) classify all cash payments within operating activities on the statement of cash flows. See Note 6. Leases for more information. Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) and issued subsequent amendments to the initial guidance. The new standard requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model, which includes historical experience, current conditions, and reasonable and supportable forecasts. The new standard also requires enhanced disclosure. The new standard is effective for interim and annual periods beginning after December 15, 2019. The Company is in the process of evaluating this new standard, however, the Company does not anticipate this to have a material impact. Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans. The new standard removes requirements to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the effects of a one-percentage-point changes in assumed health care cost trend rates. The standard also adds requirements to disclose the reasons for significant gains and losses related to changes in the benefit obligations for the period and the accumulated benefit obligation ("ABO") for plans with ABOs in excess of plan assets. The new standard will be effective for fiscal years ending after December 15, 2020. The Company is currently evaluating the impact of the adoption of this standard to our disclosures. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The new standard will be effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of the adoption of this standard to our disclosures. |
Restructuring and Transaction_2
Restructuring and Transaction Activities (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Restructuring and Transaction Activities [Abstract] | |
Restructuring Charges by Segment | The table below includes the significant components of the restructuring and transaction activities, by reporting segment: Quarterly Period Ended December 28, 2019 December 29, 2018 Consumer Packaging International $ 10 $ — Consumer Packaging North America 2 1 Engineered Materials 3 1 Health, Hygiene & Specialties 2 12 Consolidated $ 17 $ 14 |
Restructuring Accrual Activity | The table below sets forth the activity with respect to the restructuring and transaction activities accrual at December 28, 2019 : Restructuring Employee Severance and Benefits Facility Exit Costs Non-cash Impairment Charges Transaction Activities Total Balance at September 28, 2019 $ 2 $ 5 $ — $ — $ 7 Charges 4 — 2 11 17 Non-cash asset impairment — — (2 ) — (2 ) Cash payments (2 ) — — (11 ) (13 ) Balance at December 28, 2019 $ 4 $ 5 $ — $ — $ 9 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Lease Assets and Liabilities | Supplemental lease information is as follows: Leases Classification December 28, 2019 Assets Operating lease right-of-use assets Right-of-use assets $ 596 Finance lease right-of-use assets Property, plant, and equipment 108 Current liabilities Operating lease liabilities Other current liabilities $ 110 Finance lease liabilities Current portion of long-term debt 19 Non-current liabilities Operating lease liabilities Operating lease liabilities $ 502 Finance lease liabilities Long-term debt, less current portion 82 |
Lease Cost | Lease cost Quarterly Period Ended December 28, 2019 Operating lease cost $ 29 Finance lease cost: Amortization of right-of-use assets 4 Interest on lease liabilities 1 Total finance lease cost 5 Short-term lease cost 4 Total lease cost $ 38 |
Cash Paid for Amounts Included in Lease Liabilities | Cash paid for amounts included in lease liabilities Quarterly Period Ended December 28, 2019 Operating cash flows from operating leases $ 29 Operating cash flows from finance leases 1 Financing cash flows from finance leases 13 |
Weighted Average Remaining Lease Terms and Discount Rates | December 28, 2019 Weighted-average remaining lease term - operating leases 8 years Weighted-average remaining lease term - finance leases 4 years Weighted-average discount rate - operating leases 4.6 % Weighted-average discount rate - finance leases 3.7 % |
Annual Lease Commitments Under Operating and Finance Leases | At December 28, 2019 , annual lease commitments were as follows: Fiscal Year Operating Leases Finance Leases Remainder of 2020 $ 114 $ 23 2021 105 27 2022 90 26 2023 77 13 2024 67 8 Thereafter 290 11 Total lease payments 743 108 Less: Interest (131 ) (7 ) Present value of lease liabilities $ 612 $ 101 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Long-term debt consists of the following: Facility Maturity Date December 28, 2019 September 28, 2019 Term loan October 2022 $ 1,545 $ 1,545 Term loan January 2024 452 489 Term loan July 2026 4,239 4,250 Term loan - euro denominated July 2026 1,199 1,176 Revolving line of credit May 2024 — — 5.50% Second Priority Senior Secured Notes May 2022 500 500 6.00% Second Priority Senior Secured Notes October 2022 300 400 5.125% Second Priority Senior Secured Notes July 2023 700 700 4.50% Second Priority Senior Secured Notes February 2026 500 500 4.875% First Priority Senior Secured Notes July 2026 1,250 1,250 5.625% Second Priority Senior Secured Notes July 2027 500 500 Debt discounts and deferred fees (105 ) (112 ) Finance leases and other Various 156 167 Total long-term debt 11,236 11,365 Current portion of long-term debt (96 ) (104 ) Long-term debt, less current portion $ 11,140 $ 11,261 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Fair Value of Derivatives and Location on Consolidated Balance Sheets | The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Balances on a gross basis are as follows: Derivative Instruments Hedge Designation Balance Sheet Location December 28, 2019 September 28, 2019 Cross-currency swaps Designated Other assets $ 28 $ 88 Cross-currency swaps Designated Other long-term liabilities 42 — Interest rate swaps Designated Other long-term liabilities 61 81 |
Effect of Derivatives on Consolidated Statements of Income | The effect of the Company's derivative instruments on the Consolidated Statements of Income is as follows: Quarterly Period Ended Derivative Instruments Statements of Income Location December 28, 2019 December 29, 2018 Cross-currency swaps Interest expense, net $ (2 ) $ (4 ) Interest rate swaps Interest expense, net 17 (2 ) |
Assets Measured at Fair Value on Non-recurring Basis | Included in the following table are the major categories of assets measured at fair value on a non-recurring basis as of December 28, 2019 and September 28, 2019 , along with the impairment loss recognized on the fair value measurement during the period: As of December 28, 2019 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 5,084 5,084 — Definite lived intangible assets — — 2,508 2,508 — Property, plant, and equipment — — 4,799 4,799 2 Total $ — $ — $ 12,639 $ 12,639 $ 2 As of September 28, 2019 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 5,051 5,051 — Definite lived intangible assets — — 2,532 2,532 — Property, plant, and equipment — — 4,714 4,714 8 Total $ — $ — $ 12,545 $ 12,545 $ 8 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Segment and Geographic Data [Abstract] | |
Selected Information by Reportable Segment | Selected information by reportable segment is presented in the following tables: Quarterly Period Ended December 28, 2019 December 29, 2018 Net sales: Consumer Packaging International $ 1,010 $ 51 Consumer Packaging North America 680 601 Engineered Materials 585 661 Health, Hygiene & Specialties 541 659 Total net sales $ 2,816 $ 1,972 Operating income: Consumer Packaging International $ 45 $ 4 Consumer Packaging North America 49 33 Engineered Materials 70 93 Health, Hygiene & Specialties 35 46 Total operating income $ 199 $ 176 Depreciation and amortization: Consumer Packaging International $ 81 $ 4 Consumer Packaging North America 65 53 Engineered Materials 29 31 Health, Hygiene & Specialties 41 50 Total depreciation and amortization $ 216 $ 138 |
Selected Information by Geographical Region | Selected information by geographical region is presented in the following tables: Quarterly Period Ended December 28, 2019 December 29, 2018 Net sales: United States & Canada $ 1,513 $ 1,565 Europe 1,003 192 Rest of world 300 215 Total net sales $ 2,816 $ 1,972 |
Selected Information by Product Line | Selected information by product line is presented in the following tables: Quarterly Period Ended December 28, 2019 December 29, 2018 Net sales: Packaging 81 100 Non-packaging 19 — Consumer Packaging International 100 % 100 % Rigid Open Top 45 44 Rigid Closed Top 55 56 Consumer Packaging North America 100 % 100 % Core Films 37 39 Retail & Industrial 63 61 Engineered Materials 100 % 100 % Health 16 15 Hygiene 56 58 Specialties 28 27 Health, Hygiene & Specialties 100 % 100 % |
Basic and Diluted Net Income _2
Basic and Diluted Net Income Per Share (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Basic and Diluted Net Income Per Share [Abstract] | |
Basic and Diluted Net Income Per Share | The following tables provide a reconciliation of the numerator and denominator of the basic and diluted net income per share calculations: Quarterly Period Ended (in millions, except per share amounts) December 28, 2019 December 29, 2018 Numerator Consolidated net income $ 47 $ 88 Denominator Weighted average common shares outstanding - basic 132.3 131.1 Dilutive shares 2.0 2.7 Weighted average common and common equivalent shares outstanding - diluted 134.3 133.8 Per common share income Basic $ 0.36 $ 0.67 Diluted $ 0.35 $ 0.66 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | The components and activity of Accumulated other comprehensive loss are as follows: Quarterly Period Ended Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance at September 28, 2019 $ (279 ) $ (56 ) $ (51 ) $ (386 ) Other comprehensive income before reclassifications 67 — 1 68 Net amount reclassified from accumulated other comprehensive loss — — 17 17 Provision for income taxes 25 — (5 ) 20 Balance at December 28, 2019 $ (187 ) $ (56 ) $ (38 ) $ (281 ) Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance at September 29, 2018 $ (175 ) $ (13 ) $ 32 $ (156 ) Other comprehensive loss before reclassifications (4 ) — (22 ) (26 ) Net amount reclassified from accumulated other comprehensive loss — — (2 ) (2 ) Provision for income taxes — — 7 7 Balance at December 29, 2018 $ (179 ) $ (13 ) $ 15 $ (177 ) |
Guarantor and Non-Guarantor F_2
Guarantor and Non-Guarantor Financial Information (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Guarantor and Non-Guarantor Financial Information [Abstract] | |
Condensed Supplemental Consolidated Financial Information | Condensed Supplemental Consolidated Statements of Income Quarterly Period Ended December 28, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 129 $ 1,238 $ 1,449 $ — $ 2,816 Cost of goods sold — 78 1,025 1,193 — 2,296 Selling, general and administrative — 28 88 113 — 229 Amortization of intangibles — — 32 43 — 75 Restructuring and transaction activities — 4 2 11 — 17 Operating income — 19 91 89 — 199 Other expense (income), net — 5 (1 ) 9 — 13 Interest expense, net — 9 84 25 — 118 Equity in net income of subsidiaries (68 ) (24 ) — — 92 — Income before income taxes 68 29 8 55 (92 ) 68 Income tax expense 21 (18 ) — 39 (21 ) 21 Net income $ 47 $ 47 $ 8 $ 16 $ (71 ) $ 47 Comprehensive net income $ 47 $ (41 ) $ 8 $ 209 $ (71 ) $ 152 Quarterly Period Ended December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 141 $ 1,377 $ 454 $ — $ 1,972 Cost of goods sold — 85 1,141 390 — 1,616 Selling, general and administrative — 13 87 24 — 124 Amortization of intangibles — — 36 6 — 42 Restructuring and transaction activities — — 8 6 — 14 Operating income (loss) — 43 105 28 — 176 Other income, net — 1 1 (2 ) — — Interest expense, net — 5 45 14 — 64 Equity in net income of subsidiaries (112 ) (67 ) — — 179 — Income before income taxes 112 104 59 16 (179 ) 112 Income tax expense 24 16 — 8 (24 ) 24 Net income $ 88 $ 88 $ 59 $ 8 $ (155 ) $ 88 Comprehensive net income $ 88 $ 79 $ 59 $ (4 ) $ (155 ) $ 67 Condensed Supplemental Consolidated Balance Sheets December 28, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Current assets $ — $ 269 $ 1,153 $ 2,251 $ — $ 3,673 Intercompany receivable 549 1,078 — 332 (1,959 ) — Property, plant, and equipment — 77 1,696 3,026 — 4,799 Other assets 1,968 13,415 4,671 4,420 (15,922 ) 8,552 Total assets $ 2,517 $ 14,839 $ 7,520 $ 10,029 $ (17,881 ) $ 17,024 Current liabilities $ — $ 460 $ 514 $ 1,103 $ — $ 2,077 Intercompany payable — — 1,959 — (1,959 ) — Other long-term liabilities 731 11,715 68 647 — 13,161 Stockholders' equity 1,786 2,664 4,979 8,279 (15,922 ) 1,786 Total liabilities and stockholders' equity $ 2,517 $ 14,839 $ 7,520 $ 10,029 $ (17,881 ) $ 17,024 September 28, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Current assets $ — $ 172 $ 1,065 $ 2,520 $ — $ 3,757 Intercompany receivable 503 1,401 — 381 (2,285 ) — Property, plant and equipment — 78 1,645 2,991 — 4,714 Other assets 1,918 12,873 4,706 4,252 (15,751 ) 7,998 Total assets $ 2,421 $ 14,524 $ 7,416 $ 10,144 $ (18,036 ) $ 16,469 Current liabilities $ — $ 349 $ 513 $ 1,177 $ — $ 2,039 Intercompany payable — — 1,859 426 (2,285 ) — Other long-term liabilities 803 11,465 73 471 — 12,812 Stockholders' equity 1,618 2,710 4,971 8,070 (15,751 ) 1,618 Total liabilities and stockholders' equity $ 2,421 $ 14,524 $ 7,416 $ 10,144 $ (18,036 ) $ 16,469 Condensed Supplemental Consolidated Statements of Cash Flows Quarterly Period Ended December 28, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flow from Operating Activities $ — $ 42 $ 97 $ 79 $ — $ 218 Cash Flow from Investing Activities Additions to property, plant, and equipment — — (66 ) (82 ) — (148 ) (Contributions) distributions to/from subsidiaries (2 ) 2 — — — — Acquisition of business — — — 1 — 1 Divestiture of business — (1 ) — — — (1 ) Intercompany advances (repayments) — 191 — — (191 ) — Net cash from investing activities (2 ) 192 (66 ) (81 ) (191 ) (148 ) Cash Flow from Financing Activities Repayments on long-term borrowings — (161 ) (1 ) (2 ) — (164 ) Proceeds from issuance of common stock 2 — — — — 2 Debt financing costs — (2 ) — — — (2 ) Changes in intercompany balances — — (6 ) (185 ) 191 — Net cash from financing activities 2 (163 ) (7 ) (187 ) 191 (164 ) Effect of exchange rate changes on cash — — — 17 — 17 Net change in cash — 71 24 (172 ) — (77 ) Cash and cash equivalents at beginning of period — 42 2 706 — 750 Cash and cash equivalents at end of period $ — $ 113 $ 26 $ 534 $ — $ 673 Quarterly Period Ended December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flow from Operating Activities $ — $ 55 $ 155 $ (49 ) $ — $ 161 Cash Flow from Investing Activities Additions to property, plant, and equipment — — (59 ) (16 ) — (75 ) (Contributions) distributions to/from subsidiaries 47 (47 ) — — — — Intercompany advances (repayments) — 38 — — (38 ) — Net cash from investing activities 47 (9 ) (59 ) (16 ) (38 ) (75 ) Cash Flow from Financing Activities Repayments on long-term borrowings — (108 ) (2 ) — — (110 ) Proceeds from issuance of common stock 5 — — — — 5 Repurchase of common stock (52 ) — — — — (52 ) Payment of tax receivable agreement (16 ) — — — — (16 ) Changes in intercompany balances 16 — (93 ) 39 38 — Net cash from financing activities (47 ) (108 ) (95 ) 39 38 (173 ) Effect of exchange rate changes on cash — — — (1 ) — (1 ) Net change in cash — (62 ) 1 (27 ) — (88 ) Cash and cash equivalents at beginning of period — 133 4 244 — 381 Cash and cash equivalents at end of period $ — $ 71 $ 5 $ 217 $ — $ 293 |
Revenue and Accounts Receivab_2
Revenue and Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 |
Revenue and Accounts Receivable [Abstract] | |||
Accrual for customer rebates | $ 127 | $ 114 | |
Amounts due from financial institutions | 0 | $ 0 | |
Trade receivables sold to financial institutions | $ 222 | $ 212 |
Acquisitions and Dispositions,
Acquisitions and Dispositions, RPC Group Plc (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2019USD ($)CountrySite | Dec. 29, 2018USD ($) | Dec. 28, 2019 | |
4.875% First Priority Senior Secured Notes due July 2026 [Member] | |||
RPC Group Plc [Abstract] | |||
Face amount of debt issued | $ 1,250 | ||
Interest rate | 4.875% | 4.875% | |
5.625% Second Priority Senior Secured Notes due July 2027 [Member] | |||
RPC Group Plc [Abstract] | |||
Face amount of debt issued | $ 500 | ||
Interest rate | 5.625% | 5.625% | |
RPC [Member] | |||
RPC Group Plc [Abstract] | |||
Purchase price | $ 6,100 | ||
Number of operating sites | Site | 189 | ||
Number of countries where operating sites are located | Country | 34 | ||
Working capital | $ 700 | ||
Property and equipment | 2,375 | ||
Intangible assets | 1,712 | ||
Goodwill | 2,205 | ||
Other assets and long-term liabilities | 922 | ||
Step up of inventory to fair value | $ 39 | ||
Pro forma net sales | $ 3,200 | ||
Pro forma net income | $ 97 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions, Seal for Life (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Sep. 28, 2019 | |
Seal For Life [Abstract] | ||||
Net sales | $ 2,816 | $ 1,972 | ||
SFL [Member] | ||||
Seal For Life [Abstract] | ||||
Proceeds from sale of business | $ 325 | |||
Net sales | $ 96 |
Restructuring and Transaction_3
Restructuring and Transaction Activities, Restructuring Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | $ 17 | $ 14 |
Consumer Packaging International [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | 10 | 0 |
Consumer Packaging North America [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | 2 | 1 |
Engineered Materials [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | 3 | 1 |
Health, Hygiene & Specialties [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | $ 2 | $ 12 |
Restructuring and Transaction_4
Restructuring and Transaction Activities, Restructuring Accrual Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | Sep. 28, 2019 | |
Restructuring Accrual [Roll Forward] | |||
Beginning balance | $ 7 | ||
Charges | 17 | $ 14 | |
Non-cash asset impairment | (2) | $ (8) | |
Cash payments | (13) | ||
Ending balance | 9 | 7 | |
Employee Severance and Benefits [Member] | |||
Restructuring Accrual [Roll Forward] | |||
Beginning balance | 2 | ||
Charges | 4 | ||
Non-cash asset impairment | 0 | ||
Cash payments | (2) | ||
Ending balance | 4 | 2 | |
Facility Exit Costs [Member] | |||
Restructuring Accrual [Roll Forward] | |||
Beginning balance | 5 | ||
Charges | 0 | ||
Non-cash asset impairment | 0 | ||
Cash payments | 0 | ||
Ending balance | 5 | 5 | |
Non-Cash Impairment Charges [Member] | |||
Restructuring Accrual [Roll Forward] | |||
Beginning balance | 0 | ||
Charges | 2 | ||
Non-cash asset impairment | (2) | ||
Cash payments | 0 | ||
Ending balance | 0 | 0 | |
Transaction Activities [Member] | |||
Restructuring Accrual [Roll Forward] | |||
Beginning balance | 0 | ||
Charges | 11 | ||
Non-cash asset impairment | 0 | ||
Cash payments | (11) | ||
Ending balance | $ 0 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Sep. 28, 2019 | |
Assets [Abstract] | ||
Operating lease right-of-use assets | $ 596 | $ 0 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseRightOfUseAsset | |
Finance lease right-of-use assets | $ 108 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Current Liabilities [Abstract] | ||
Operating lease liabilities | $ 110 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |
Finance lease liabilities | $ 19 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | |
Non-current Liabilities [Abstract] | ||
Operating lease liabilities | $ 502 | $ 0 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityNoncurrent | |
Finance lease liabilities | $ 82 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 29 | |
Finance Lease Cost [Abstract] | ||
Amortization of right-of-use asset | 4 | |
Interest on lease liabilities | 1 | |
Total finance lease cost | 5 | |
Short-term lease cost | 4 | |
Total lease cost | 38 | |
Cash Paid for Amounts Included in Lease Liabilities [Abstract] | ||
Operating cash flows from operating leases | 29 | |
Operating cash flows from finance leases | 1 | |
Financing cash flows from finance leases | $ 13 | |
Weighted-average remaining lease term - operating leases | 8 years | |
Weighted-average remaining lease term - finance leases | 4 years | |
Weighted-average discount rate - operating leases | 4.60% | |
Weighted-average discount rate - finance leases | 3.70% | |
Annual Lease Commitments for Operating Leases [Abstract] | ||
Remainder of 2020 | $ 114 | |
2021 | 105 | |
2022 | 90 | |
2023 | 77 | |
2024 | 67 | |
Thereafter | 290 | |
Total lease payments | 743 | |
Less: Interest | (131) | |
Present value of lease liabilities | 612 | |
Annual Lease Commitments for Finance Leases [Abstract] | ||
Remainder of 2020 | 23 | |
2021 | 27 | |
2022 | 26 | |
2023 | 13 | |
2024 | 8 | |
Thereafter | 11 | |
Total lease payments | 108 | |
Less: Interest | (7) | |
Present value of lease liabilities | $ 101 |
Long-Term Debt (Details)
Long-Term Debt (Details) € in Millions, $ in Millions | 3 Months Ended | |||
Dec. 28, 2019USD ($) | Dec. 28, 2019EUR (€) | Sep. 28, 2019USD ($) | Jul. 31, 2019 | |
Long-term Debt [Abstract] | ||||
Debt discounts and deferred fees | $ (105) | $ (112) | ||
Finance leases and other | 156 | 167 | ||
Total long-term debt | 11,236 | 11,365 | ||
Current portion of long-term debt | (96) | (104) | ||
Long-term debt, less current portion | 11,140 | 11,261 | ||
Term Loan due October 2022 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 1,545 | 1,545 | ||
Maturity date | Oct. 31, 2022 | |||
Term Loan due January 2024 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 452 | 489 | ||
Maturity date | Jan. 31, 2024 | |||
Term Loan due July 2026 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 4,239 | 4,250 | ||
Maturity date | Jul. 31, 2026 | |||
Term Loan - Euro Denominated due July 2026 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 1,199 | € 1,072 | 1,176 | |
Maturity date | Jul. 31, 2026 | |||
Revolving Line of Credit [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 0 | 0 | ||
Maturity date | May 31, 2024 | |||
5.50% Second Priority Senior Secured Notes due May 2022 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 500 | 500 | ||
Interest rate | 5.50% | 5.50% | ||
Maturity date | May 31, 2022 | |||
6.00% Second Priority Senior Secured Notes due October 2022 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 300 | 400 | ||
Interest rate | 6.00% | 6.00% | ||
Maturity date | Oct. 31, 2022 | |||
5.125% Second Priority Senior Secured Notes due July 2023 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 700 | 700 | ||
Interest rate | 5.125% | 5.125% | ||
Maturity date | Jul. 31, 2023 | |||
4.50% Second Priority Senior Secured Notes due February 2026 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 500 | 500 | ||
Interest rate | 4.50% | 4.50% | ||
Maturity date | Feb. 28, 2026 | |||
4.875% First Priority Senior Secured Notes due July 2026 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 1,250 | 1,250 | ||
Interest rate | 4.875% | 4.875% | 4.875% | |
Maturity date | Jul. 31, 2026 | |||
5.625% Second Priority Senior Secured Notes due July 2027 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 500 | $ 500 | ||
Interest rate | 5.625% | 5.625% | 5.625% | |
Maturity date | Jul. 31, 2027 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements, Cross-Currency Swaps (Details) € in Millions, £ in Millions, $ in Millions | Dec. 28, 2019GBP (£) | Dec. 28, 2019USD ($) | Dec. 28, 2019EUR (€) | Sep. 28, 2019USD ($) |
Term Loan - Euro Denominated due July 2026 [Member] | ||||
Cross-Currency Swaps [Abstract] | ||||
Long-term debt | $ 1,199 | € 1,072 | $ 1,176 | |
Cross Currency Interest Rate Contract Maturing May 2022 [Member] | ||||
Cross-Currency Swaps [Abstract] | ||||
Notional amount of swap | 250 | |||
Cross Currency Interest Rate Contract Maturing June 2024 [Member] | ||||
Cross-Currency Swaps [Abstract] | ||||
Notional amount of swap | € 1,625 | |||
Cross Currency Interest Rate Contract Maturing June 2024 [Member] | ||||
Cross-Currency Swaps [Abstract] | ||||
Notional amount of swap | £ | £ 700 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements, Interest Rate Swaps (Details) $ in Millions | 3 Months Ended |
Dec. 28, 2019USD ($) | |
Interest Rate Swap Expiring May 2022 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 450 |
Fixed annual rate of swap | 2.00% |
Interest Rate Swap Expiring May 2022 [Member] | LIBOR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring September 2021 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 1,000 |
Fixed annual rate of swap | 2.808% |
Interest Rate Swap Expiring September 2021 [Member] | LIBOR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring July 2023 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 400 |
Fixed annual rate of swap | 2.533% |
Interest Rate Swap Expiring July 2023 [Member] | LIBOR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2024 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 884 |
Fixed annual rate of swap | 1.857% |
Interest Rate Swap Expiring June 2024 [Member] | LIBOR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2024 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 473 |
Fixed annual rate of swap | 2.05% |
Interest Rate Swap Expiring June 2024 [Member] | LIBOR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements, Fair Value of Derivative and Location on Consolidated Balance Sheets (Details) - Designated [Member] - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Cross-Currency Swaps [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 28 | $ 88 |
Cross-Currency Swaps [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 42 | 0 |
Interest Rate Swaps [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 61 | $ 81 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements, Effect of Derivatives on Consolidated Statements of Income (Details) - Interest Expense, Net [Member] - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Cross-Currency Swaps [Member] | ||
Derivative Instruments [Abstract] | ||
Loss (gain) on derivative instruments | $ (2) | $ (4) |
Interest Rate Swaps [Member] | ||
Derivative Instruments [Abstract] | ||
Loss (gain) on derivative instruments | $ 17 | $ (2) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements, Assets Measured at Fair Value on Non-Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 28, 2019 | Sep. 28, 2019 | |
Impairment [Abstract] | ||
Indefinite-lived trademarks | $ 0 | $ 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 2 | 8 |
Impairment charges | 2 | 8 |
Fair Value Adjustment [Abstract] | ||
Fair value of long-term indebtedness in excess of book value | 167 | |
Fair Value on Nonrecurring Basis [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 248 | 248 |
Goodwill | 5,084 | 5,051 |
Definite lived intangible assets | 2,508 | 2,532 |
Property, plant, and equipment | 4,799 | 4,714 |
Total | 12,639 | 12,545 |
Fair Value on Nonrecurring Basis [Member] | Level 1 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 0 | 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 0 | 0 |
Total | 0 | 0 |
Fair Value on Nonrecurring Basis [Member] | Level 2 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 0 | 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 0 | 0 |
Total | 0 | 0 |
Fair Value on Nonrecurring Basis [Member] | Level 3 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 248 | 248 |
Goodwill | 5,084 | 5,051 |
Definite lived intangible assets | 2,508 | 2,532 |
Property, plant, and equipment | 4,799 | 4,714 |
Total | $ 12,639 | $ 12,545 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Dec. 28, 2019 | |
Income Taxes [Abstract] | |
Effective tax rate | 31.00% |
Foreign rate differential | (4.00%) |
Uncertain tax positions recognized | (3.00%) |
Segment and Geographic Data, Se
Segment and Geographic Data, Selected Information by Reportable Segment (Details) $ in Millions | 3 Months Ended | |
Dec. 28, 2019USD ($)Segment | Dec. 29, 2018USD ($) | |
Segment and Geographic Data [Abstract] | ||
Number of reportable segments | Segment | 4 | |
Selected Information by Reportable Segment [Abstract] | ||
Net sales | $ 2,816 | $ 1,972 |
Operating income | 199 | 176 |
Depreciation and amortization | 216 | 138 |
Operating Segment [Member] | Consumer Packaging International [Member] | ||
Selected Information by Reportable Segment [Abstract] | ||
Net sales | 1,010 | 51 |
Operating income | 45 | 4 |
Depreciation and amortization | 81 | 4 |
Operating Segment [Member] | Consumer Packaging North America [Member] | ||
Selected Information by Reportable Segment [Abstract] | ||
Net sales | 680 | 601 |
Operating income | 49 | 33 |
Depreciation and amortization | 65 | 53 |
Operating Segment [Member] | Engineered Materials [Member] | ||
Selected Information by Reportable Segment [Abstract] | ||
Net sales | 585 | 661 |
Operating income | 70 | 93 |
Depreciation and amortization | 29 | 31 |
Operating Segment [Member] | Health, Hygiene & Specialties [Member] | ||
Selected Information by Reportable Segment [Abstract] | ||
Net sales | 541 | 659 |
Operating income | 35 | 46 |
Depreciation and amortization | $ 41 | $ 50 |
Segment and Geographic Data, _2
Segment and Geographic Data, Selected Information by Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Selected Information by Geography [Abstract] | ||
Net sales | $ 2,816 | $ 1,972 |
Reportable Geography [Member] | United States and Canada [Member] | ||
Selected Information by Geography [Abstract] | ||
Net sales | 1,513 | 1,565 |
Reportable Geography [Member] | Europe [Member] | ||
Selected Information by Geography [Abstract] | ||
Net sales | 1,003 | 192 |
Reportable Geography [Member] | Rest of World [Member] | ||
Selected Information by Geography [Abstract] | ||
Net sales | $ 300 | $ 215 |
Segment and Geographic Data, _3
Segment and Geographic Data, Selected Information by Product Line (Details) - Net Sales [Member] - Product Concentration Risk [Member] | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Consumer Packaging International [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 100.00% | 100.00% |
Consumer Packaging International [Member] | Packaging [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 81.00% | 100.00% |
Consumer Packaging International [Member] | Non-packaging [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 19.00% | 0.00% |
Consumer Packaging North America [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 100.00% | 100.00% |
Consumer Packaging North America [Member] | Rigid Open Top [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 45.00% | 44.00% |
Consumer Packaging North America [Member] | Rigid Closed Top [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 55.00% | 56.00% |
Engineered Materials [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 100.00% | 100.00% |
Engineered Materials [Member] | Core Films [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 37.00% | 39.00% |
Engineered Materials [Member] | Retail & Industrial [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 63.00% | 61.00% |
Health, Hygiene & Specialties [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 100.00% | 100.00% |
Health, Hygiene & Specialties [Member] | Health [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 16.00% | 15.00% |
Health, Hygiene & Specialties [Member] | Hygiene [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 56.00% | 58.00% |
Health, Hygiene & Specialties [Member] | Specialties [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 28.00% | 27.00% |
Share Repurchase Program (Detai
Share Repurchase Program (Details) $ in Millions | 3 Months Ended |
Dec. 28, 2019USD ($)shares | |
Share Repurchase Program [Abstract] | |
Number of shares repurchased and retired (in shares) | shares | 0 |
Remaining amount of share repurchase program | $ | $ 393 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Numerator [Abstract] | ||
Consolidated net income | $ 47 | $ 88 |
Denominator [Abstract] | ||
Weighted average common shares outstanding - basic (in shares) | 132.3 | 131.1 |
Dilutive shares (in shares) | 2 | 2.7 |
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 134.3 | 133.8 |
Per Common Share Income [Abstract] | ||
Basic (in dollars per share) | $ 0.36 | $ 0.67 |
Diluted (in dollars per share) | $ 0.35 | $ 0.66 |
Stock Options [Member] | ||
Basic and Diluted Net Income Per Share [Abstract] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 7.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications | $ 68 | $ (26) |
Net amount reclassified from accumulated other comprehensive loss | 17 | (2) |
Provision for income taxes | 20 | 7 |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (386) | (156) |
Ending balance | (281) | (177) |
Currency Translation [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (279) | (175) |
Other comprehensive income (loss) before reclassifications | 67 | (4) |
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 |
Provision for income taxes | 25 | 0 |
Ending balance | (187) | (179) |
Defined Benefit Pension and Retiree Health Benefit Plans [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (56) | (13) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 |
Provision for income taxes | 0 | 0 |
Ending balance | (56) | (13) |
Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (51) | 32 |
Other comprehensive income (loss) before reclassifications | 1 | (22) |
Net amount reclassified from accumulated other comprehensive loss | 17 | (2) |
Provision for income taxes | (5) | 7 |
Ending balance | $ (38) | $ 15 |
Guarantor and Non-Guarantor F_3
Guarantor and Non-Guarantor Financial Information, Condensed Supplemental Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Guarantor and Non-Guarantor Financial Information [Abstract] | ||
Percentage ownership in guarantor subsidiaries | 100.00% | |
Condensed Supplemental Consolidated Statements of Income [Abstract] | ||
Net sales | $ 2,816 | $ 1,972 |
Cost of goods sold | 2,296 | 1,616 |
Selling, general and administrative | 229 | 124 |
Amortization of intangibles | 75 | 42 |
Restructuring and transaction activities | 17 | 14 |
Operating income | 199 | 176 |
Other expense (income), net | 13 | 0 |
Interest expense, net | 118 | 64 |
Equity in net income of subsidiaries | 0 | 0 |
Income before income taxes | 68 | 112 |
Income tax expense | 21 | 24 |
Net income | 47 | 88 |
Comprehensive net income | 152 | 67 |
Eliminations [Member] | ||
Condensed Supplemental Consolidated Statements of Income [Abstract] | ||
Net sales | 0 | 0 |
Cost of goods sold | 0 | 0 |
Selling, general and administrative | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Restructuring and transaction activities | 0 | 0 |
Operating income | 0 | 0 |
Other expense (income), net | 0 | 0 |
Interest expense, net | 0 | 0 |
Equity in net income of subsidiaries | 92 | 179 |
Income before income taxes | (92) | (179) |
Income tax expense | (21) | (24) |
Net income | (71) | (155) |
Comprehensive net income | (71) | (155) |
Parent [Member] | ||
Condensed Supplemental Consolidated Statements of Income [Abstract] | ||
Net sales | 0 | 0 |
Cost of goods sold | 0 | 0 |
Selling, general and administrative | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Restructuring and transaction activities | 0 | 0 |
Operating income | 0 | 0 |
Other expense (income), net | 0 | 0 |
Interest expense, net | 0 | 0 |
Equity in net income of subsidiaries | (68) | (112) |
Income before income taxes | 68 | 112 |
Income tax expense | 21 | 24 |
Net income | 47 | 88 |
Comprehensive net income | 47 | 88 |
Issuer [Member] | ||
Condensed Supplemental Consolidated Statements of Income [Abstract] | ||
Net sales | 129 | 141 |
Cost of goods sold | 78 | 85 |
Selling, general and administrative | 28 | 13 |
Amortization of intangibles | 0 | 0 |
Restructuring and transaction activities | 4 | 0 |
Operating income | 19 | 43 |
Other expense (income), net | 5 | 1 |
Interest expense, net | 9 | 5 |
Equity in net income of subsidiaries | (24) | (67) |
Income before income taxes | 29 | 104 |
Income tax expense | (18) | 16 |
Net income | 47 | 88 |
Comprehensive net income | (41) | 79 |
Guarantor Subsidiaries [Member] | ||
Condensed Supplemental Consolidated Statements of Income [Abstract] | ||
Net sales | 1,238 | 1,377 |
Cost of goods sold | 1,025 | 1,141 |
Selling, general and administrative | 88 | 87 |
Amortization of intangibles | 32 | 36 |
Restructuring and transaction activities | 2 | 8 |
Operating income | 91 | 105 |
Other expense (income), net | (1) | 1 |
Interest expense, net | 84 | 45 |
Equity in net income of subsidiaries | 0 | 0 |
Income before income taxes | 8 | 59 |
Income tax expense | 0 | 0 |
Net income | 8 | 59 |
Comprehensive net income | 8 | 59 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Supplemental Consolidated Statements of Income [Abstract] | ||
Net sales | 1,449 | 454 |
Cost of goods sold | 1,193 | 390 |
Selling, general and administrative | 113 | 24 |
Amortization of intangibles | 43 | 6 |
Restructuring and transaction activities | 11 | 6 |
Operating income | 89 | 28 |
Other expense (income), net | 9 | (2) |
Interest expense, net | 25 | 14 |
Equity in net income of subsidiaries | 0 | 0 |
Income before income taxes | 55 | 16 |
Income tax expense | 39 | 8 |
Net income | 16 | 8 |
Comprehensive net income | $ 209 | $ (4) |
Guarantor and Non-Guarantor F_4
Guarantor and Non-Guarantor Financial Information, Condensed Supplemental Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 |
Assets [Abstract] | ||||
Current assets | $ 3,673 | $ 3,757 | ||
Intercompany receivable | 0 | 0 | ||
Property, plant, and equipment | 4,799 | 4,714 | ||
Other assets | 8,552 | 7,998 | ||
Total assets | 17,024 | 16,469 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 2,077 | 2,039 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 13,161 | 12,812 | ||
Stockholders' equity | 1,786 | 1,618 | $ 1,455 | $ 1,434 |
Total liabilities and stockholders' equity | 17,024 | 16,469 | ||
Eliminations [Member] | ||||
Assets [Abstract] | ||||
Current assets | 0 | 0 | ||
Intercompany receivable | (1,959) | (2,285) | ||
Property, plant, and equipment | 0 | 0 | ||
Other assets | (15,922) | (15,751) | ||
Total assets | (17,881) | (18,036) | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 0 | 0 | ||
Intercompany payable | (1,959) | (2,285) | ||
Other long-term liabilities | 0 | 0 | ||
Stockholders' equity | (15,922) | (15,751) | ||
Total liabilities and stockholders' equity | (17,881) | (18,036) | ||
Parent [Member] | ||||
Assets [Abstract] | ||||
Current assets | 0 | 0 | ||
Intercompany receivable | 549 | 503 | ||
Property, plant, and equipment | 0 | 0 | ||
Other assets | 1,968 | 1,918 | ||
Total assets | 2,517 | 2,421 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 731 | 803 | ||
Stockholders' equity | 1,786 | 1,618 | ||
Total liabilities and stockholders' equity | 2,517 | 2,421 | ||
Issuer [Member] | ||||
Assets [Abstract] | ||||
Current assets | 269 | 172 | ||
Intercompany receivable | 1,078 | 1,401 | ||
Property, plant, and equipment | 77 | 78 | ||
Other assets | 13,415 | 12,873 | ||
Total assets | 14,839 | 14,524 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 460 | 349 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 11,715 | 11,465 | ||
Stockholders' equity | 2,664 | 2,710 | ||
Total liabilities and stockholders' equity | 14,839 | 14,524 | ||
Guarantor Subsidiaries [Member] | ||||
Assets [Abstract] | ||||
Current assets | 1,153 | 1,065 | ||
Intercompany receivable | 0 | 0 | ||
Property, plant, and equipment | 1,696 | 1,645 | ||
Other assets | 4,671 | 4,706 | ||
Total assets | 7,520 | 7,416 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 514 | 513 | ||
Intercompany payable | 1,959 | 1,859 | ||
Other long-term liabilities | 68 | 73 | ||
Stockholders' equity | 4,979 | 4,971 | ||
Total liabilities and stockholders' equity | 7,520 | 7,416 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Assets [Abstract] | ||||
Current assets | 2,251 | 2,520 | ||
Intercompany receivable | 332 | 381 | ||
Property, plant, and equipment | 3,026 | 2,991 | ||
Other assets | 4,420 | 4,252 | ||
Total assets | 10,029 | 10,144 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 1,103 | 1,177 | ||
Intercompany payable | 0 | 426 | ||
Other long-term liabilities | 647 | 471 | ||
Stockholders' equity | 8,279 | 8,070 | ||
Total liabilities and stockholders' equity | $ 10,029 | $ 10,144 |
Guarantor and Non-Guarantor F_5
Guarantor and Non-Guarantor Financial Information, Condensed Supplemental Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Condensed Supplemental Consolidated Statements of Cash Flows [Abstract] | ||
Cash flow from operating activities | $ 218 | $ 161 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment, net | (148) | (75) |
(Contributions) distributions to/from subsidiaries | 0 | 0 |
Acquisition of business | 1 | |
Divestiture of business | (1) | |
Intercompany advances (repayments) | 0 | 0 |
Net cash from investing activities | (148) | (75) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | (164) | (110) |
Proceeds from issuance of common stock | 2 | 5 |
Debt financing costs | (2) | 0 |
Repurchase of common stock | 0 | (52) |
Payment of tax receivable agreement | 0 | (16) |
Changes in intercompany balances | 0 | 0 |
Net cash from financing activities | (164) | (173) |
Effect of exchange rate changes on cash | 17 | (1) |
Net change in cash | (77) | (88) |
Cash and cash equivalents at beginning of period | 750 | 381 |
Cash and cash equivalents at end of period | 673 | 293 |
Eliminations [Member] | ||
Condensed Supplemental Consolidated Statements of Cash Flows [Abstract] | ||
Cash flow from operating activities | 0 | 0 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment, net | 0 | 0 |
(Contributions) distributions to/from subsidiaries | 0 | 0 |
Acquisition of business | 0 | |
Divestiture of business | 0 | |
Intercompany advances (repayments) | (191) | (38) |
Net cash from investing activities | (191) | (38) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Debt financing costs | 0 | |
Repurchase of common stock | 0 | |
Payment of tax receivable agreement | 0 | |
Changes in intercompany balances | 191 | 38 |
Net cash from financing activities | 191 | 38 |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent [Member] | ||
Condensed Supplemental Consolidated Statements of Cash Flows [Abstract] | ||
Cash flow from operating activities | 0 | 0 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment, net | 0 | 0 |
(Contributions) distributions to/from subsidiaries | (2) | 47 |
Acquisition of business | 0 | |
Divestiture of business | 0 | |
Intercompany advances (repayments) | 0 | 0 |
Net cash from investing activities | (2) | 47 |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | 0 | 0 |
Proceeds from issuance of common stock | 2 | 5 |
Debt financing costs | 0 | |
Repurchase of common stock | (52) | |
Payment of tax receivable agreement | (16) | |
Changes in intercompany balances | 0 | 16 |
Net cash from financing activities | 2 | (47) |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Issuer [Member] | ||
Condensed Supplemental Consolidated Statements of Cash Flows [Abstract] | ||
Cash flow from operating activities | 42 | 55 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment, net | 0 | 0 |
(Contributions) distributions to/from subsidiaries | 2 | (47) |
Divestiture of business | (1) | |
Intercompany advances (repayments) | 191 | 38 |
Net cash from investing activities | 192 | (9) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | (161) | (108) |
Proceeds from issuance of common stock | 0 | 0 |
Debt financing costs | (2) | |
Repurchase of common stock | 0 | |
Payment of tax receivable agreement | 0 | |
Changes in intercompany balances | 0 | 0 |
Net cash from financing activities | (163) | (108) |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash | 71 | (62) |
Cash and cash equivalents at beginning of period | 42 | 133 |
Cash and cash equivalents at end of period | 113 | 71 |
Guarantor Subsidiaries [Member] | ||
Condensed Supplemental Consolidated Statements of Cash Flows [Abstract] | ||
Cash flow from operating activities | 97 | 155 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment, net | (66) | (59) |
(Contributions) distributions to/from subsidiaries | 0 | 0 |
Acquisition of business | 0 | |
Divestiture of business | 0 | |
Intercompany advances (repayments) | 0 | 0 |
Net cash from investing activities | (66) | (59) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | (1) | (2) |
Proceeds from issuance of common stock | 0 | 0 |
Debt financing costs | 0 | |
Repurchase of common stock | 0 | |
Payment of tax receivable agreement | 0 | |
Changes in intercompany balances | (6) | (93) |
Net cash from financing activities | (7) | (95) |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash | 24 | 1 |
Cash and cash equivalents at beginning of period | 2 | 4 |
Cash and cash equivalents at end of period | 26 | 5 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Supplemental Consolidated Statements of Cash Flows [Abstract] | ||
Cash flow from operating activities | 79 | (49) |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment, net | (82) | (16) |
(Contributions) distributions to/from subsidiaries | 0 | 0 |
Acquisition of business | 1 | |
Divestiture of business | 0 | |
Intercompany advances (repayments) | 0 | 0 |
Net cash from investing activities | (81) | (16) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | (2) | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Debt financing costs | 0 | |
Repurchase of common stock | 0 | |
Payment of tax receivable agreement | 0 | |
Changes in intercompany balances | (185) | 39 |
Net cash from financing activities | (187) | 39 |
Effect of exchange rate changes on cash | 17 | (1) |
Net change in cash | (172) | (27) |
Cash and cash equivalents at beginning of period | 706 | 244 |
Cash and cash equivalents at end of period | $ 534 | $ 217 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] € in Millions, $ in Millions | 1 Months Ended | |
Jan. 31, 2020USD ($) | Jan. 31, 2020EUR (€) | |
1.00% First Priority Senior Secured Notes due 2026 [Member] | ||
Subsequent Events [Abstract] | ||
Face amount of debt issued | € 700 | |
Interest rate | 1.00% | 1.00% |
1.50% First Priority Senior Secured Notes due 2027 [Member] | ||
Subsequent Events [Abstract] | ||
Face amount of debt issued | € 375 | |
Interest rate | 1.50% | 1.50% |
Term Loan due July 2026 [Member] | ||
Subsequent Events [Abstract] | ||
Face amount of debt issued | $ | $ 4,250 | |
Interest rate reduction | (0.50%) |