Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2022 | Feb. 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Current Fiscal Year End Date | --10-01 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 001-35672 | |
Entity Registrant Name | BERRY GLOBAL GROUP, INC. | |
Entity Central Index Key | 0001378992 | |
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 | |
Entity Tax Identification Number | 20-5234618 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | BERY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 121.4 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Consolidated Statements of Income [Abstract] | ||
Net sales | $ 3,060 | $ 3,573 |
Costs and expenses: | ||
Cost of goods sold | 2,542 | 3,038 |
Selling, general and administrative | 236 | 235 |
Amortization of intangibles | 60 | 68 |
Restructuring and transaction activities | 12 | 3 |
Operating income | 210 | 229 |
Other expense | 1 | 0 |
Interest expense | 71 | 71 |
Income before income taxes | 138 | 158 |
Income tax expense | 32 | 37 |
Net income | $ 106 | $ 121 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.86 | $ 0.89 |
Diluted (in dollars per share) | $ 0.85 | $ 0.87 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 106 | $ 121 |
Other comprehensive income, net of tax: | ||
Currency translation | 141 | (22) |
Derivative instruments | (1) | 29 |
Other comprehensive income | 140 | 7 |
Comprehensive income | $ 246 | $ 128 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 717 | $ 1,410 |
Accounts receivable | 1,617 | 1,777 |
Finished goods | 1,081 | 1,010 |
Raw materials and supplies | 820 | 792 |
Prepaid expenses and other current assets | 234 | 175 |
Total current assets | 4,469 | 5,164 |
Noncurrent assets: | ||
Property, plant and equipment | 4,523 | 4,342 |
Goodwill and intangible assets | 6,816 | 6,685 |
Right-of-use assets | 527 | 521 |
Other assets | 116 | 244 |
Total assets | 16,451 | 16,956 |
Current liabilities: | ||
Accounts payable | 1,208 | 1,795 |
Accrued employee costs | 231 | 253 |
Other current liabilities | 804 | 783 |
Current portion of long-term debt | 12 | 13 |
Total current liabilities | 2,255 | 2,844 |
Noncurrent liabilities: | ||
Long-term debt | 9,260 | 9,242 |
Deferred income taxes | 616 | 707 |
Employee benefit obligations | 166 | 160 |
Operating lease liabilities | 433 | 429 |
Other long-term liabilities | 462 | 378 |
Total liabilities | 13,192 | 13,760 |
Stockholders' equity: | ||
Common stock (121.7 and 124.2 million shares issued, respectively) | 1 | 1 |
Additional paid-in capital | 1,199 | 1,177 |
Retained earnings | 2,322 | 2,421 |
Accumulated other comprehensive loss | (263) | (403) |
Total stockholders' equity | 3,259 | 3,196 |
Total liabilities and stockholders' equity | $ 16,451 | $ 16,956 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Stockholders' equity: | ||
Common stock, shares issued (in shares) | 121.7 | 124.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 106 | $ 121 |
Adjustments to reconcile net cash from operating activities: | ||
Depreciation | 139 | 143 |
Amortization of intangibles | 60 | 68 |
Non-cash interest (income) expense, net | (13) | 3 |
Deferred income tax | (33) | (12) |
Share-based compensation expense | 23 | 21 |
Other non-cash operating activities, net | (3) | (8) |
Changes in working capital | (508) | (637) |
Changes in other assets and liabilities | (4) | (3) |
Net cash from operating activities | (233) | (304) |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment, net | (211) | (162) |
Net cash from investing activities | (211) | (162) |
Cash Flows from Financing Activities: | ||
Repayments on long-term borrowings | (84) | (5) |
Proceeds from issuance of common stock | 5 | 16 |
Repurchase of common stock | (166) | (51) |
Dividends paid | (33) | 0 |
Net cash from financing activities | (278) | (40) |
Effect of currency translation on cash | 29 | (3) |
Net change in cash and cash equivalents | (693) | (509) |
Cash and cash equivalents at beginning of period | 1,410 | 1,091 |
Cash and cash equivalents at end of period | $ 717 | $ 582 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
Balance at Oct. 02, 2021 | $ 1 | $ 1,134 | $ (296) | $ 2,341 | $ 3,180 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 0 | 0 | 0 | 121 | 121 |
Other comprehensive income | 0 | 0 | 7 | 0 | 7 |
Share-based compensation | 0 | 21 | 0 | 0 | 21 |
Proceeds from issuance of common stock | 0 | 16 | 0 | 0 | 16 |
Common stock repurchased and retired | 0 | (1) | 0 | (50) | (51) |
Balance at Jan. 01, 2022 | 1 | 1,170 | (289) | 2,412 | 3,294 |
Balance at Oct. 01, 2022 | 1 | 1,177 | (403) | 2,421 | 3,196 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 0 | 0 | 0 | 106 | 106 |
Other comprehensive income | 0 | 0 | 140 | 0 | 140 |
Share-based compensation | 0 | 23 | 0 | 0 | 23 |
Proceeds from issuance of common stock | 0 | 5 | 0 | 0 | 5 |
Common stock repurchased and retired | 0 | (6) | 0 | (172) | (178) |
Dividends paid | 0 | 0 | 0 | (33) | (33) |
Balance at Dec. 31, 2022 | $ 1 | $ 1,199 | $ (263) | $ 2,322 | $ 3,259 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2022 | |
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. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included, and all subsequent events up to the time of the filing have been evaluated. For further information, refer to the Company’s most recent Form 10-K filed with the Securities and Exchange Commission. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2022 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Reference Rate Reform In 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). This standard provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as SOFR. In 2022, the FASB issued ASU 2022-06, which deferred the sunset date of Topic 848 to December 31, 2024. The Company is evaluating timing of adoption, but does not expect a material change to our consolidated financial statements or disclosures. |
Revenue and Accounts Receivable
Revenue and Accounts Receivable | 3 Months Ended |
Dec. 31, 2022 | |
Revenue and Accounts Receivable [Abstract] | |
Revenue | 3. Revenue and Accounts Receivable Our revenues are primarily derived from the sale of non-woven, flexible and rigid products to customers. Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled. We consider the promise to transfer products to be our sole performance obligation. If the consideration agreed to in a contract includes a variable amount, we estimate the amount of consideration we expect to be entitled to in exchange for transferring the promised goods to the customer using the most likely amount method. Our main source of variable consideration is customer rebates. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Generally, our revenue is recognized at a point in time for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. |
Accounts Receivable | Accounts receivable are presented net of allowance for credit losses of $18 million at December 31, 2022 and October 1, 2022. The Company records its current expected credit losses based on a variety of factors including historical loss experience and current customer financial condition. The changes to our current expected credit losses, write-off activity, and recoveries were not material for any of the periods presented. The Company has entered into various factoring agreements, including customer-based supply chain financing programs, to sell certain receivables to third-party financial institutions. Agreements which result in true sales of the transferred receivables, which occur when receivables are transferred without recourse to the Company, are reflected as a reduction of accounts receivable on the consolidated balance sheets and the proceeds are included in the cash flows from operating activities in the consolidated statements of cash flows. The fees associated with the transfer of receivables for all programs were not material for any of the periods presented. |
Restructuring and Transaction A
Restructuring and Transaction Activities | 3 Months Ended |
Dec. 31, 2022 | |
Restructuring and Transaction Activities [Abstract] | |
Restructuring and Transaction Activities | 4. Restructuring and Transaction Activities The table below includes the significant components of the restructuring and transaction activities, by reporting segment: Quarterly Period Ended December 31, 2022 January 1, 2022 Consumer Packaging International $ 3 $ 2 Consumer Packaging North America 1 1 Health, Hygiene & Specialties 3 (1 ) Engineered Materials 5 1 Consolidated $ 12 $ 3 The table below sets forth the activity with respect to the restructuring and transaction activities accrual at December 31, 2022: Restructuring Employee Severance and Benefits Facility Exit Costs Transaction Activities Total Balance at October 1, 2022 $ 2 $ 3 $ — $ 5 Charges 3 4 5 12 Cash payments — (4 ) (5 ) (9 ) Balance at December 31, 2022 $ 5 $ 3 $ — $ 8 |
Leases
Leases | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 5. Leases The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. 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. Supplemental lease information is as follows: Leases Classification December 31, 2022 October 1, 2022 Operating leases: Operating lease right-of-use assets Right-of-use asset $ 527 $ 521 Current operating lease liabilities Other current liabilities 111 108 Noncurrent operating lease liabilities Operating lease liability 433 429 Finance leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 36 $ 38 Current finance lease liabilities Current portion of long-term debt 9 9 Noncurrent finance lease liabilities Long-term debt, less current portion 23 24 Quarterly Period Ended Lease Type Cash Flow Classification Lease Expense Category December 31, 2022 January 1, 2022 Operating Operating Lease cost $ 35 $ 34 Finance Operating Interest expense — 1 Finance Financing - 1 2 Finance - Amortization of right-of-use assets 2 3 Right-of-use assets obtained in exchange for new operating lease liabilities were $18 million for the quarterly period ended December 31, 2022. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 6. Long-Term Debt Long-term debt consists of the following: Facility Maturity Date December 31, 2022 October 1, 2022 Term loan July 2026 $ 3,390 3,440 Revolving line of credit May 2024 — — 0.95 February 2024 774 800 1.00 (a) July 2025 748 686 1.57 January 2026 1,525 1,525 4.875 July 2026 1,250 1,250 1.65 January 2027 400 400 1.50 (a) July 2027 401 367 4.50 February 2026 291 298 5.625 July 2027 500 500 Debt discounts and deferred fees (55 ) (60 ) Finance leases and other Various 48 49 Total long-term debt 9,272 9,255 Current portion of long-term debt (12 ) (13 ) Long-term debt, less current portion $ 9,260 9,242 (a) Euro denominated 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. 31, 2022 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | 7. Financial Instruments and Fair Value Measurements In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. The Company may use derivative financial instruments to help manage market risk and reduce the exposure to fluctuations in interest rates and foreign currencies. These financial instruments are not used for trading or other speculative purposes. Cross-Currency Swaps The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk. The swap agreements mature June 2024 (€1,625 million) and July 2027 (£700 million). In addition to 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 31, 2022, we had outstanding long-term debt of €785 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 31, 2022, 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 4.128%, with an expiration in June 2026, (ii) a $400 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 4.117% with an expiration in June 2026, (iii) an $884 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 3.573%, with an expiration in June 2024, and (iv) a $473 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 4.370%, 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 31, 2022 October 1, 2022 Cross-currency swaps Designated Other assets — 147 Cross-currency swaps Designated Other long-term liabilities 79 — Interest rate swaps Designated Other assets 18 11 Interest rate swaps Designated Other long-term liabilities 2 3 Interest rate swaps Not designated Other long-term liabilities 108 117 The effect of the Company’s derivative instruments, including the amortization of previously settled swaps, on the Consolidated Statements of Income is as follows: Quarterly Period Ended Derivative Instruments Statements of Income Location December 31, 2022 January 1, 2022 Cross-currency swaps Interest expense $ (11 ) $ (3 ) Interest rate swaps Interest expense (6 ) 13 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 2022 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 31, 2022 and October 1, 2022, along with the impairment loss recognized on the fair value measurement during the period: As of December 31, 2022 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 4,966 4,966 — Definite lived intangible assets — — 1,602 1,602 — Property, plant, and equipment — — 4,523 4,523 — Total $ — $ — $ 11,339 $ 11,339 $ — As of October 1, 2022 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 247 $ 247 $ — Goodwill — — 4,832 4,832 — Definite lived intangible assets — — 1,606 1,606 — Property, plant, and equipment — — 4,342 4,342 — Total $ — $ — $ 11,027 $ 11,027 $ — The Company’s financial instruments consist primarily of cash and cash equivalents, long-term debt, interest rate and cross-currency swap agreements, and finance lease obligations. The book value of our marketable long-term indebtedness exceeded fair value by $405 million as of December 31, 2022. The Company’s long-term debt fair values were determined using Level 2 inputs (substantially observable). |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes In comparison to the statutory rate, the higher effective tax rate for the quarter was negatively impacted by state taxes and global intangible low-taxed income provisions due to our geographic mix of earnings. |
Segment and Geographic Data
Segment and Geographic Data | 3 Months Ended |
Dec. 31, 2022 | |
Segment and Geographic Data [Abstract] | |
Segment and Geographic Data | 9. Segment and Geographic Data The Company’s operations are organized into four reporting segments: Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Engineered Materials. The structure is designed to align us with our customers, provide improved service, and drive future growth in a cost efficient manner. Selected information by reportable segment is presented in the following tables: Quarterly Period Ended December 31, 2022 January 1, 2022 Net sales: Consumer Packaging International $ 936 $ 1,056 Consumer Packaging North America 764 852 Health, Hygiene & Specialties 663 818 Engineered Materials 697 847 Total net sales $ 3,060 $ 3,573 Operating income: Consumer Packaging International $ 47 $ 69 Consumer Packaging North America 71 46 Health, Hygiene & Specialties 34 62 Engineered Materials 58 52 Total operating income $ 210 $ 229 Depreciation and amortization: Consumer Packaging International $ 74 $ 82 Consumer Packaging North America 51 54 Health, Hygiene & Specialties 44 45 Engineered Materials 30 30 Total depreciation and amortization $ 199 $ 211 Selected information by geographical region is presented in the following tables: Quarterly Period Ended December 31, 2022 January 1, 2022 Net sales: United States and Canada $ 1,695 $ 1,952 Europe 1,050 1,217 Rest of world 315 404 Total net sales $ 3,060 $ 3,573 |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Dec. 31, 2022 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 10. Contingencies and Commitments The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, we believe that any ultimate liability would not be material to our financial position, results of operations or cash flows. The Company has various purchase commitments for raw materials, supplies, and property and equipment incidental to the ordinary conduct of business. |
Basic and Diluted Earnings and
Basic and Diluted Earnings and Dividends Per Share | 3 Months Ended |
Dec. 31, 2022 | |
Basic and Diluted Earnings and Dividends Per Share [Abstract] | |
Basic and Diluted Earnings and Dividends Per Share | 11. Basic and Diluted Earnings and Dividends Per Share Basic net income or earnings per share ("EPS") is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted EPS includes the effects of options and restricted stock units, if dilutive. The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations: Quarterly Period Ended (in millions, except per share amounts) December 31, 2022 January 1, 2022 Numerator Consolidated net income $ 106 $ 121 Denominator Weighted average common shares outstanding - basic 123.7 135.4 Dilutive shares 1.5 3.5 Weighted average common and common equivalent shares outstanding - diluted 125.2 138.9 Per common share earnings Basic $ 0.86 $ 0.89 Diluted $ 0.85 $ 0.87 For the three months ended December 31, 2022 and January 1, 2022, 5.8 million and 0.9 million shares, respectively, were excluded from the diluted EPS calculation as their effect would be anti-dilutive. The Company declared and paid dividends of $0.25 per share for the three months ended December 31, 2022 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 12. Accumulated Other Comprehensive Loss The components and activity of Accumulated other comprehensive loss are as follows: Quarterly Period Ended Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance at October 1, 2022 $ (455 ) $ (32 ) $ 84 $ (403 ) Other comprehensive income before reclassifications 141 — 5 146 Net amount reclassified from accumulated other comprehensive loss — — (6 ) (6 ) Balance at December 31, 2022 $ (314 ) $ (32 ) $ 83 $ (263 ) Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance at October 2, 2021 $ (154 ) $ (67 ) $ (75 ) $ (296 ) Other comprehensive income before reclassifications (22 ) — 26 4 Net amount reclassified from accumulated other comprehensive loss — — 3 3 Balance at January 1, 2022 $ (176 ) $ (67 ) $ (46 ) $ (289 ) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
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. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Reference Rate Reform In 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). This standard provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as SOFR. In 2022, the FASB issued ASU 2022-06, which deferred the sunset date of Topic 848 to December 31, 2024. The Company is evaluating timing of adoption, but does not expect a material change to our consolidated financial statements or disclosures. |
Restructuring and Transaction_2
Restructuring and Transaction Activities (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Restructuring and Transaction Activities [Abstract] | |
Restructuring and Transaction Activity Charges | The table below includes the significant components of the restructuring and transaction activities, by reporting segment: Quarterly Period Ended December 31, 2022 January 1, 2022 Consumer Packaging International $ 3 $ 2 Consumer Packaging North America 1 1 Health, Hygiene & Specialties 3 (1 ) Engineered Materials 5 1 Consolidated $ 12 $ 3 |
Restructuring Accrual Activity | The table below sets forth the activity with respect to the restructuring and transaction activities accrual at December 31, 2022: Restructuring Employee Severance and Benefits Facility Exit Costs Transaction Activities Total Balance at October 1, 2022 $ 2 $ 3 $ — $ 5 Charges 3 4 5 12 Cash payments — (4 ) (5 ) (9 ) Balance at December 31, 2022 $ 5 $ 3 $ — $ 8 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Assets and Liabilities | Supplemental lease information is as follows: Leases Classification December 31, 2022 October 1, 2022 Operating leases: Operating lease right-of-use assets Right-of-use asset $ 527 $ 521 Current operating lease liabilities Other current liabilities 111 108 Noncurrent operating lease liabilities Operating lease liability 433 429 Finance leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 36 $ 38 Current finance lease liabilities Current portion of long-term debt 9 9 Noncurrent finance lease liabilities Long-term debt, less current portion 23 24 |
Lease Cash Flow and Lease Expense | Quarterly Period Ended Lease Type Cash Flow Classification Lease Expense Category December 31, 2022 January 1, 2022 Operating Operating Lease cost $ 35 $ 34 Finance Operating Interest expense — 1 Finance Financing - 1 2 Finance - Amortization of right-of-use assets 2 3 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Long-term debt consists of the following: Facility Maturity Date December 31, 2022 October 1, 2022 Term loan July 2026 $ 3,390 3,440 Revolving line of credit May 2024 — — 0.95 February 2024 774 800 1.00 (a) July 2025 748 686 1.57 January 2026 1,525 1,525 4.875 July 2026 1,250 1,250 1.65 January 2027 400 400 1.50 (a) July 2027 401 367 4.50 February 2026 291 298 5.625 July 2027 500 500 Debt discounts and deferred fees (55 ) (60 ) Finance leases and other Various 48 49 Total long-term debt 9,272 9,255 Current portion of long-term debt (12 ) (13 ) Long-term debt, less current portion $ 9,260 9,242 (a) Euro denominated |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 October 1, 2022 Cross-currency swaps Designated Other assets — 147 Cross-currency swaps Designated Other long-term liabilities 79 — Interest rate swaps Designated Other assets 18 11 Interest rate swaps Designated Other long-term liabilities 2 3 Interest rate swaps Not designated Other long-term liabilities 108 117 |
Effect of Derivatives on Consolidated Statements of Income | The effect of the Company’s derivative instruments, including the amortization of previously settled swaps, on the Consolidated Statements of Income is as follows: Quarterly Period Ended Derivative Instruments Statements of Income Location December 31, 2022 January 1, 2022 Cross-currency swaps Interest expense $ (11 ) $ (3 ) Interest rate swaps Interest expense (6 ) 13 |
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 31, 2022 and October 1, 2022, along with the impairment loss recognized on the fair value measurement during the period: As of December 31, 2022 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 4,966 4,966 — Definite lived intangible assets — — 1,602 1,602 — Property, plant, and equipment — — 4,523 4,523 — Total $ — $ — $ 11,339 $ 11,339 $ — As of October 1, 2022 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 247 $ 247 $ — Goodwill — — 4,832 4,832 — Definite lived intangible assets — — 1,606 1,606 — Property, plant, and equipment — — 4,342 4,342 — Total $ — $ — $ 11,027 $ 11,027 $ — |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 January 1, 2022 Net sales: Consumer Packaging International $ 936 $ 1,056 Consumer Packaging North America 764 852 Health, Hygiene & Specialties 663 818 Engineered Materials 697 847 Total net sales $ 3,060 $ 3,573 Operating income: Consumer Packaging International $ 47 $ 69 Consumer Packaging North America 71 46 Health, Hygiene & Specialties 34 62 Engineered Materials 58 52 Total operating income $ 210 $ 229 Depreciation and amortization: Consumer Packaging International $ 74 $ 82 Consumer Packaging North America 51 54 Health, Hygiene & Specialties 44 45 Engineered Materials 30 30 Total depreciation and amortization $ 199 $ 211 |
Selected Information by Geographical Region | Selected information by geographical region is presented in the following tables: Quarterly Period Ended December 31, 2022 January 1, 2022 Net sales: United States and Canada $ 1,695 $ 1,952 Europe 1,050 1,217 Rest of world 315 404 Total net sales $ 3,060 $ 3,573 |
Basic and Diluted Earnings an_2
Basic and Diluted Earnings and Dividends Per Share (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Basic and Diluted Earnings and Dividends Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations: Quarterly Period Ended (in millions, except per share amounts) December 31, 2022 January 1, 2022 Numerator Consolidated net income $ 106 $ 121 Denominator Weighted average common shares outstanding - basic 123.7 135.4 Dilutive shares 1.5 3.5 Weighted average common and common equivalent shares outstanding - diluted 125.2 138.9 Per common share earnings Basic $ 0.86 $ 0.89 Diluted $ 0.85 $ 0.87 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
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 October 1, 2022 $ (455 ) $ (32 ) $ 84 $ (403 ) Other comprehensive income before reclassifications 141 — 5 146 Net amount reclassified from accumulated other comprehensive loss — — (6 ) (6 ) Balance at December 31, 2022 $ (314 ) $ (32 ) $ 83 $ (263 ) Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance at October 2, 2021 $ (154 ) $ (67 ) $ (75 ) $ (296 ) Other comprehensive income before reclassifications (22 ) — 26 4 Net amount reclassified from accumulated other comprehensive loss — — 3 3 Balance at January 1, 2022 $ (176 ) $ (67 ) $ (46 ) $ (289 ) |
Revenue and Accounts Receivab_2
Revenue and Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Revenue and Accounts Receivable [Abstract] | ||
Accrual for customer rebates | $ 111 | $ 103 |
Allowance for credit losses | $ 18 | $ 18 |
Restructuring and Transaction_3
Restructuring and Transaction Activities, Restructuring Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | $ 12 | $ 3 |
Consumer Packaging International [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | 3 | 2 |
Consumer Packaging North America [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | 1 | 1 |
Health, Hygiene & Specialties [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | 3 | (1) |
Engineered Materials [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring and transaction activities | $ 5 | $ 1 |
Restructuring and Transaction_4
Restructuring and Transaction Activities, Restructuring Accrual Activity (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Accrual [Roll Forward] | |
Beginning balance | $ 5 |
Charges | 12 |
Cash payments | (9) |
Ending balance | 8 |
Employee Severance and Benefits [Member] | |
Restructuring Accrual [Roll Forward] | |
Beginning balance | 2 |
Charges | 3 |
Cash payments | 0 |
Ending balance | 5 |
Facility Exit Costs [Member] | |
Restructuring Accrual [Roll Forward] | |
Beginning balance | 3 |
Charges | 4 |
Cash payments | (4) |
Ending balance | 3 |
Transaction Activities [Member] | |
Restructuring Accrual [Roll Forward] | |
Beginning balance | 0 |
Charges | 5 |
Cash payments | (5) |
Ending balance | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Oct. 01, 2022 | |
Operating Leases [Abstract] | |||
Operating lease right-of-use assets | $ 527 | $ 521 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease right-of-use assets | Operating lease right-of-use assets | |
Current operating lease liabilities | $ 111 | $ 108 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
Noncurrent operating lease liabilities | $ 433 | $ 429 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Noncurrent operating lease liabilities | Noncurrent operating lease liabilities | |
Finance Leases [Abstract] | |||
Finance lease right-of-use assets | $ 36 | $ 38 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment | Property, plant and equipment | |
Current finance lease liabilities | $ 9 | $ 9 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt | |
Noncurrent finance lease liabilities | $ 23 | $ 24 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt | |
Lease Cash Flow and Lease Expense [Abstract] | |||
Operating leases, lease cost | $ 35 | $ 34 | |
Finance leases, interest expense | 0 | 1 | |
Finance leases, financing cash flows | 1 | 2 | |
Finance leases, amortization of right-of-use assets | 2 | $ 3 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 18 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Oct. 01, 2022 | ||
Long-term Debt [Abstract] | |||
Debt discounts and deferred fees | $ (55) | $ (60) | |
Total long-term debt | 9,272 | 9,255 | |
Current portion of long-term debt | (12) | (13) | |
Long-term debt, less current portion | 9,260 | 9,242 | |
Term Loan due July 2026 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 3,390 | 3,440 | |
Maturity date | Jul. 31, 2026 | ||
Revolving Line of Credit [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 0 | 0 | |
Maturity date | May 31, 2024 | ||
0.95% First Priority Senior Secured Notes [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 774 | 800 | |
Interest rate | 0.95% | ||
Maturity date | Feb. 29, 2024 | ||
1.00% First Priority Senior Secured Notes [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | [1] | $ 748 | 686 |
Interest rate | 1% | ||
Maturity date | Jul. 31, 2025 | ||
1.57% First Priority Senior Secured Notes [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 1,525 | 1,525 | |
Interest rate | 1.57% | ||
Maturity date | Jan. 31, 2026 | ||
4.875% First Priority Senior Secured Notes [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 1,250 | 1,250 | |
Interest rate | 4.875% | ||
Maturity date | Jul. 31, 2026 | ||
1.65% First Priority Senior Secured Notes [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 400 | 400 | |
Interest rate | 1.65% | ||
Maturity date | Jan. 31, 2027 | ||
1.50% First Priority Senior Secured Notes [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | [1] | $ 401 | 367 |
Interest rate | 1.50% | ||
Maturity date | Jul. 31, 2027 | ||
4.50% Second Priority Senior Secured Notes [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 291 | 298 | |
Interest rate | 4.50% | ||
Maturity date | Feb. 28, 2026 | ||
5.625% Second Priority Senior Secured Notes [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 500 | 500 | |
Interest rate | 5.625% | ||
Maturity date | Jul. 31, 2027 | ||
Finance Leases and Other [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 48 | $ 49 | |
[1] Euro denominated |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements, Cross-Currency Swaps (Details) - Dec. 31, 2022 € in Millions, £ in Millions | EUR (€) | GBP (£) |
Euro Denominated [Member] | ||
Cross-Currency Swaps [Abstract] | ||
Long-term debt | € 785 | |
Cross-Currency Swap Maturing June 2024 [Member] | ||
Cross-Currency Swaps [Abstract] | ||
Notional amount of swap | € 1,625 | |
Cross-Currency Swap Maturing July 2027 [Member] | ||
Cross-Currency Swaps [Abstract] | ||
Notional amount of swap | £ | £ 700 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements, Interest Rate Swaps (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Interest Rate Swap Expiring June 2026 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 450 |
Fixed annual rate of swap | 4.128% |
Interest Rate Swap Expiring June 2026 [Member] | LIBOR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2026 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 400 |
Fixed annual rate of swap | 4.117% |
Interest Rate Swap Expiring June 2026 [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 | 3.573% |
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 | 4.37% |
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) - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Cross-Currency Swaps [Member] | Designated [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 0 | $ 147 |
Cross-Currency Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 79 | 0 |
Interest Rate Swaps [Member] | Designated [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 18 | 11 |
Interest Rate Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 2 | 3 |
Interest Rate Swaps [Member] | Not Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 108 | $ 117 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements, Effect of Derivatives on Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Cross-Currency Swaps [Member] | ||
Derivative Instruments [Abstract] | ||
Loss (gain) on derivative instruments | $ (11) | $ (3) |
Loss (Gain) on Derivative Instruments, Statement of Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net |
Interest Rate Swaps [Member] | ||
Derivative Instruments [Abstract] | ||
Loss (gain) on derivative instruments | $ (6) | $ 13 |
Loss (Gain) on Derivative Instruments, Statement of Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net |
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. 31, 2022 | Oct. 01, 2022 | |
Impairment [Abstract] | ||
Indefinite-lived trademarks | $ 0 | $ 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 0 | 0 |
Impairment charges | 0 | 0 |
Fair Value Adjustment [Abstract] | ||
Fair value of long-term indebtedness greater/(less) than book value | (405) | |
Fair Value on Non-recurring Basis [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 248 | 247 |
Goodwill | 4,966 | 4,832 |
Definite lived intangible assets | 1,602 | 1,606 |
Property, plant, and equipment | 4,523 | 4,342 |
Total | 11,339 | 11,027 |
Fair Value on Non-recurring Basis [Member] | Level 1 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 0 | 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 0 | 0 |
Total | 0 | 0 |
Fair Value on Non-recurring Basis [Member] | Level 2 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 0 | 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 0 | 0 |
Total | 0 | 0 |
Fair Value on Non-recurring Basis [Member] | Level 3 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 248 | 247 |
Goodwill | 4,966 | 4,832 |
Definite lived intangible assets | 1,602 | 1,606 |
Property, plant, and equipment | 4,523 | 4,342 |
Total | $ 11,339 | $ 11,027 |
Segment and Geographic Data, Se
Segment and Geographic Data, Selected Information by Reportable Segment (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 USD ($) Segment | Jan. 01, 2022 USD ($) | |
Segment and Geographic Data [Abstract] | ||
Number of reporting segments | Segment | 4 | |
Selected Information by Reportable Segment [Abstract] | ||
Net sales | $ 3,060 | $ 3,573 |
Operating income | 210 | 229 |
Depreciation and amortization | 199 | 211 |
Operating Segment [Member] | Consumer Packaging International [Member] | ||
Selected Information by Reportable Segment [Abstract] | ||
Net sales | 936 | 1,056 |
Operating income | 47 | 69 |
Depreciation and amortization | 74 | 82 |
Operating Segment [Member] | Consumer Packaging North America [Member] | ||
Selected Information by Reportable Segment [Abstract] | ||
Net sales | 764 | 852 |
Operating income | 71 | 46 |
Depreciation and amortization | 51 | 54 |
Operating Segment [Member] | Health, Hygiene & Specialties [Member] | ||
Selected Information by Reportable Segment [Abstract] | ||
Net sales | 663 | 818 |
Operating income | 34 | 62 |
Depreciation and amortization | 44 | 45 |
Operating Segment [Member] | Engineered Materials [Member] | ||
Selected Information by Reportable Segment [Abstract] | ||
Net sales | 697 | 847 |
Operating income | 58 | 52 |
Depreciation and amortization | $ 30 | $ 30 |
Segment and Geographic Data, _2
Segment and Geographic Data, Selected Information by Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Selected Information by Geographical Region [Abstract] | ||
Net sales | $ 3,060 | $ 3,573 |
Reportable Geographical Region [Member] | United States and Canada [Member] | ||
Selected Information by Geographical Region [Abstract] | ||
Net sales | 1,695 | 1,952 |
Reportable Geographical Region [Member] | Europe [Member] | ||
Selected Information by Geographical Region [Abstract] | ||
Net sales | 1,050 | 1,217 |
Reportable Geographical Region [Member] | Rest of World [Member] | ||
Selected Information by Geographical Region [Abstract] | ||
Net sales | $ 315 | $ 404 |
Basic and Diluted Earnings an_3
Basic and Diluted Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Numerator [Abstract] | ||
Consolidated net income | $ 106 | $ 121 |
Denominator [Abstract] | ||
Weighted average common shares outstanding - basic (in shares) | 123.7 | 135.4 |
Dilutive shares (in shares) | 1.5 | 3.5 |
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 125.2 | 138.9 |
Per Common Share Earnings [Abstract] | ||
Basic (in dollars per share) | $ 0.86 | $ 0.89 |
Diluted (in dollars per share) | $ 0.85 | $ 0.87 |
Antidilutive Shares [Abstract] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 5.8 | 0.9 |
Dividends [Abstract] | ||
Dividends declared per share (in dollars per share) | $ 0.25 | |
Dividends paid per share (in dollars per share) | $ 0.25 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | $ 3,196 | |
Other comprehensive income before reclassifications | 146 | $ 4 |
Net amount reclassified from accumulated other comprehensive loss | (6) | 3 |
Ending balance | 3,259 | |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (403) | (296) |
Ending balance | (263) | (289) |
Currency Translation [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (455) | (154) |
Other comprehensive income before reclassifications | 141 | (22) |
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | (314) | (176) |
Defined Benefit Pension and Retiree Health Benefit Plans [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (32) | (67) |
Other comprehensive income before reclassifications | 0 | 0 |
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | (32) | (67) |
Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | 84 | (75) |
Other comprehensive income before reclassifications | 5 | 26 |
Net amount reclassified from accumulated other comprehensive loss | (6) | 3 |
Ending balance | $ 83 | $ (46) |