Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Jul. 01, 2023 | Aug. 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 01, 2023 | |
Current Fiscal Year End Date | --10-01 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
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, $0.01 par value per share | |
Trading Symbol | BERY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 118.1 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Consolidated Statements of Income [Abstract] | ||||
Net sales | $ 3,229 | $ 3,726 | $ 9,577 | $ 11,074 |
Costs and expenses: | ||||
Cost of goods sold | 2,649 | 3,105 | 7,873 | 9,297 |
Selling, general and administrative | 215 | 215 | 671 | 657 |
Amortization of intangibles | 61 | 63 | 181 | 196 |
Restructuring and transaction activities | 37 | 7 | 74 | 18 |
Operating income | 267 | 336 | 778 | 906 |
Other expense | 11 | 7 | 13 | 13 |
Interest expense | 78 | 70 | 228 | 212 |
Income before income taxes | 178 | 259 | 537 | 681 |
Income tax expense | 35 | 52 | 114 | 148 |
Net income | $ 143 | $ 207 | $ 423 | $ 533 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.2 | $ 1.61 | $ 3.5 | $ 4.02 |
Diluted (in dollars per share) | $ 1.18 | $ 1.58 | $ 3.47 | $ 3.93 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 143 | $ 207 | $ 423 | $ 533 |
Other comprehensive income, net of tax: | ||||
Currency translation | 23 | (159) | 224 | (144) |
Derivative instruments | 31 | 19 | (1) | 119 |
Other comprehensive income | 54 | (140) | 223 | (25) |
Comprehensive income | $ 197 | $ 67 | $ 646 | $ 508 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 01, 2023 | Oct. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 633 | $ 1,410 |
Accounts receivable | 1,748 | 1,777 |
Finished goods | 1,070 | 1,010 |
Raw materials and supplies | 660 | 792 |
Prepaid expenses and other current assets | 229 | 175 |
Total current assets | 4,340 | 5,164 |
Noncurrent assets: | ||
Property, plant and equipment | 4,651 | 4,342 |
Goodwill and intangible assets | 6,830 | 6,685 |
Right-of-use assets | 611 | 521 |
Other assets | 117 | 244 |
Total assets | 16,549 | 16,956 |
Current liabilities: | ||
Accounts payable | 1,159 | 1,795 |
Accrued employee costs | 245 | 253 |
Other current liabilities | 909 | 783 |
Current portion of long-term debt | 12 | 13 |
Total current liabilities | 2,325 | 2,844 |
Noncurrent liabilities: | ||
Long-term debt | 9,200 | 9,242 |
Deferred income taxes | 552 | 707 |
Employee benefit obligations | 157 | 160 |
Operating lease liabilities | 512 | 429 |
Other long-term liabilities | 416 | 378 |
Total liabilities | 13,162 | 13,760 |
Stockholders' equity: | ||
Common stock (118.1 and 124.2 million shares issued, respectively) | 1 | 1 |
Additional paid-in capital | 1,222 | 1,177 |
Retained earnings | 2,344 | 2,421 |
Accumulated other comprehensive loss | (180) | (403) |
Total stockholders' equity | 3,387 | 3,196 |
Total liabilities and stockholders' equity | $ 16,549 | $ 16,956 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Millions | Jul. 01, 2023 | Oct. 01, 2022 |
Stockholders' equity: | ||
Common stock, shares issued (in shares) | 118.1 | 124.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 423 | $ 533 |
Adjustments to reconcile net cash from operating activities: | ||
Depreciation | 425 | 424 |
Amortization of intangibles | 181 | 196 |
Non-cash interest (income) expense, net | (45) | 11 |
Settlement of derivatives | 36 | 69 |
Deferred income tax | (94) | (66) |
Share-based compensation expense | 36 | 34 |
Other non-cash operating activities, net | 18 | (2) |
Changes in working capital | (473) | (800) |
Changes in other assets and liabilities | (17) | (54) |
Net cash from operating activities | 490 | 345 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment, net | (560) | (556) |
Divestiture of business | 0 | 125 |
Acquisition of business and other | (88) | 6 |
Net cash from investing activities | (648) | (425) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term borrowings | 500 | 170 |
Repayments on long-term borrowings | (687) | (16) |
Proceeds from issuance of common stock | 26 | 24 |
Repurchase of common stock | (415) | (637) |
Dividends paid | (97) | 0 |
Other, net | 7 | 0 |
Net cash from financing activities | (666) | (459) |
Effect of currency translation on cash | 47 | (25) |
Net change in cash and cash equivalents | (777) | (564) |
Cash and cash equivalents at beginning of period | 1,410 | 1,091 |
Cash and cash equivalents at end of period | $ 633 | $ 527 |
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 | 533 | 533 |
Other comprehensive income | 0 | 0 | (25) | 0 | (25) |
Share-based compensation | 0 | 34 | 0 | 0 | 34 |
Proceeds from issuance of common stock | 0 | 24 | 0 | 0 | 24 |
Common stock repurchased and other | 0 | (21) | 0 | (616) | (637) |
Balance at Jul. 02, 2022 | 1 | 1,171 | (321) | 2,258 | 3,109 |
Balance at Apr. 02, 2022 | 1 | 1,174 | (181) | 2,326 | 3,320 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 0 | 0 | 0 | 207 | 207 |
Other comprehensive income | 0 | 0 | (140) | 0 | (140) |
Share-based compensation | 0 | 6 | 0 | 0 | 6 |
Proceeds from issuance of common stock | 0 | 2 | 0 | 0 | 2 |
Common stock repurchased and other | 0 | (11) | 0 | (275) | (286) |
Balance at Jul. 02, 2022 | 1 | 1,171 | (321) | 2,258 | 3,109 |
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 | 423 | 423 |
Other comprehensive income | 0 | 0 | 223 | 0 | 223 |
Share-based compensation | 0 | 36 | 0 | 0 | 36 |
Proceeds from issuance of common stock | 0 | 26 | 0 | 0 | 26 |
Common stock repurchased and other | 0 | (17) | 0 | (403) | (420) |
Dividends paid | 0 | 0 | 0 | (97) | (97) |
Balance at Jul. 01, 2023 | 1 | 1,222 | (180) | 2,344 | 3,387 |
Balance at Apr. 01, 2023 | 1 | 1,214 | (234) | 2,314 | 3,295 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 0 | 0 | 0 | 143 | 143 |
Other comprehensive income | 0 | 0 | 54 | 0 | 54 |
Share-based compensation | 0 | 6 | 0 | 0 | 6 |
Proceeds from issuance of common stock | 0 | 8 | 0 | 0 | 8 |
Common stock repurchased and other | 0 | (6) | 0 | (81) | (87) |
Dividends paid | 0 | 0 | 0 | (32) | (32) |
Balance at Jul. 01, 2023 | $ 1 | $ 1,222 | $ (180) | $ 2,344 | $ 3,387 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 01, 2023 | |
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 (the "SEC") for interim reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements . In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included, and all subsequent events up to the time of the filing have been evaluated. For further information, refer to the Company’s most recent Form 10-K filed with the SEC. |
Critical Accounting Policies an
Critical Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Jul. 01, 2023 | |
Critical Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
Critical Accounting Policies and Recent Accounting Pronouncements | 2. Critical Accounting Policies and Recent Accounting Pronouncements There have been no material changes in critical accounting policies from those described in our most recent Form 10-K. Reference Rate Reform In 2023, the Company will adopt ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The Company's adoption will not have a material change to our consolidated financial statements or disclosures. |
Revenue and Accounts Receivable
Revenue and Accounts Receivable | 9 Months Ended |
Jul. 01, 2023 | |
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 c onsideration we expect to be entitled to in exchange for transferring the promised goods to the customer using the most likely amount method. Our main source of variable consideration is customer rebates. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Generally, our revenue is recognized at a point in time for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. The |
Accounts Receivable | Accounts receivable are presented net of allowance for credit losses of $18 million at July 1, 2023 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. |
Acquisition
Acquisition | 9 Months Ended |
Jul. 01, 2023 | |
Acquisition [Abstract] | |
Acquisition | 4. Acquisition Pro-Western Plastics In March 2023, the Company acquired Pro-Western Plastics Ltd. (“Pro-Western”), a leading plastics injection molding company, for a purchase price of $88 million. The acquired business is operated within the Consumer Packaging North America segment. To finance the purchase, the Company used existing liquidity. The acquisition has been accounted for under the purchase method of accounting and accordingly, the purchase price has been allocated to the identifiable assets and liabilities based on preliminary values at the acquisition date. The Company has recognized $46 million of goodwill on this transaction primarily as a result of expected cost synergies and expects goodwill to be deductible for tax purposes. |
Restructuring and Transaction A
Restructuring and Transaction Activities | 9 Months Ended |
Jul. 01, 2023 | |
Restructuring and Transaction Activities [Abstract] | |
Restructuring and Transaction Activities | 5. Restructuring and Transaction Activities During fiscal 2023, the Company announced several plant rationalizations in all four segments in order to deliver cost savings and optimize equipment utilization. In total, over the next three years, these plant rationalizations are projected to cost approximately $200 million with the operations savings intended to counter general economic softness. The plant rationalizations are expected to be fully implemented by the end of fiscal 2025. The table below includes the significant components of our restructuring and transaction activities, by reporting segment: Quarterly Period Ended Three Quarterly Periods Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Consumer Packaging International $ 17 $ 3 $ 32 $ 10 Consumer Packaging North America 6 1 14 4 Health, Hygiene & Specialties 12 3 21 2 Engineered Materials 2 — 7 2 Consolidated $ 37 $ 7 $ 74 $ 18 The table below sets forth the activity with respect to the restructuring and transaction activities accrual at July 1, 2023: Restructuring Employee Severance and Benefits Facility Exit Costs Non-cash Impairment Charges Transaction Activities Total Balance as of October 1, 2022 $ 2 $ 3 $ — $ — $ 5 Charges 28 16 5 25 74 Non-cash items — — (5 ) — (5 ) Cash (16 ) (18 ) — (25 ) (59 ) Balance as of July 1, 2023 $ 14 $ 1 $ — $ — $ 15 |
Leases
Leases | 9 Months Ended |
Jul. 01, 2023 | |
Leases [Abstract] | |
Leases | 6. Leases The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. Supplemental lease information is as follows: Leases Classification July 1, 2023 October 1, 2022 Operating leases: Operating lease right-of-use assets Right-of-use assets $ 611 $ 521 Current operating lease liabilities Other current liabilities 114 108 Noncurrent operating lease liabilities Operating lease liability 512 429 Finance leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 33 $ 38 Current finance lease liability Current portion of long-term debt 10 9 Noncurrent finance lease liabilities Long-term debt, less current portion 19 24 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Jul. 01, 2023 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt consists of the following: Facility Maturity Date July 1, 2023 October 1, 2022 Term loan (a) July 2026 $ 3,290 3,440 Revolving line of credit June 2028 — — 0.95 (b) February 2024 279 800 1.00 (c) July 2025 764 686 1.57 January 2026 1,525 1,525 4.875 July 2026 1,250 1,250 1.65 January 2027 400 400 1.50 (c) July 2027 409 367 5.50 April 2028 500 — 4.50 February 2026 291 298 5.625 July 2027 500 500 Debt discounts and deferred fees (38 ) (60 ) Finance leases and other Various 42 49 Total long-term debt 9,212 9,255 Current portion of long-term debt (12 ) (13 ) Long-term debt, less current portion $ 9,200 9,242 (a) Effectively 82% fixed interest rate with interest rate swaps (see Note 8). (b) Indicates debt which has been classified as long-term debt in accordance with the Company's ability and intention to refinance such obligations on a long-term basis. (c) Euro denominated During the quarter ended April 1, 2023, the Company issued $500 million aggregate principal amount of 5.50% first priority senior secured notes due 2028. The proceeds were used to repurchase a portion of the Company’s 0.95% first priority senior secured notes due 2024. 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 | 9 Months Ended |
Jul. 01, 2023 | |
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 June 2024 (€1,625 million) and July 2027 (£700 million). In addition to cross-currency swaps, we hedge a portion of our foreign currency risk by designating foreign currency denominated long-term debt as net investment hedges of certain foreign operations. As of July 1, 2023, 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). During fiscal 2023, the Company elected to cash settle existing interest rate swaps and received net proceeds of $36 million. The offset is included in Accumulated other comprehensive loss and is being amortized to Interest expense through the term of the original swaps. Following the settlement, the Company entered into interest rate swaps with matching notional amounts with expiration in June 2026. As of July 1, 2023, 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%, (ii) a $400 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 4.522%, (iii) a $473 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 3.961%, (iv) an $884 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 4.522%, and (v) a $500 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 3.672%. The Company's interest rate swap transactions all expire in June 2026. 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 July 1, 2023 October 1, 2022 Cross-currency swaps Designated Other assets $ — $ 147 Cross-currency swaps Designated Other current liabilities 116 — Cross-currency swaps Designated Other long-term liabilities 24 — Interest rate swaps Designated Other assets 19 11 Interest rate swaps Designated Other long-term liabilities 4 3 Interest rate swaps Not designated Other long-term liabilities 104 117 The effect of the Company’s derivative instruments on the Consolidated Statements of Income is as follows: Quarterly Period Ended Three Quarterly Periods Ended Derivative Instruments Statements of Income Location July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Cross-currency swaps Interest expense $ (10 ) $ (5 ) $ (31 ) $ (12 ) Interest rate swaps Interest expense (21 ) 11 (38 ) 35 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 July 1, 2023 and October 1, 2022, along with the impairment loss recognized on the fair value measurement during the period: As of July 1, 2023 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 5,050 5,050 — Definite lived intangible assets — — 1,532 1,532 — Property, plant, and equipment — — 4,651 4,651 5 Total $ — $ — $ 11,481 $ 11,481 $ 5 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 of our marketable long-term indebtedness exceeded by $ million as of . The Company’s long-term debt fair values were determined using Level 2 inputs (substantially observable). |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 01, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes On a year-to-date comparison to the statutory rate, the higher effective tax rate was negatively impacted by state taxes and global intangible low-taxed income provisions, partially offset by other discrete items. |
Segment and Geographic Data
Segment and Geographic Data | 9 Months Ended |
Jul. 01, 2023 | |
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, Health, Hygiene & Specialties, and Engineered Materials. 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 Three Quarterly Periods Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net sales: Consumer Packaging International $ 1,036 $ 1,096 $ 3,031 $ 3,290 Consumer Packaging North America 798 927 2,335 2,659 Health, Hygiene & Specialties 657 788 1,997 2,429 Engineered Materials 738 915 2,214 2,696 Total net sales $ 3,229 $ 3,726 $ 9,577 $ 11,074 Operating income: Consumer Packaging International $ 68 $ 82 $ 190 $ 248 Consumer Packaging North America 89 104 253 235 Health, Hygiene & Specialties 22 56 89 186 Engineered Materials 88 94 246 237 Total operating income $ 267 $ 336 $ 778 $ 906 Depreciation and amortization: Consumer Packaging International $ 79 $ 78 $ 230 $ 242 Consumer Packaging North America 54 53 159 160 Health, Hygiene & Specialties 45 44 133 133 Engineered Materials 29 28 84 85 Total depreciation and amortization $ 207 $ 203 $ 606 $ 620 Selected information by geographical region is presented in the following tables: Quarterly Period Ended Three Quarterly Periods Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net sales: United States and Canada $ 1,748 $ 2,030 $ 5,195 $ 5,978 Europe 1,184 1,320 3,470 3,937 Rest of world 297 376 912 1,160 Total net sales $ 3,229 $ 3,726 $ 9,577 $ 11,074 |
Contingencies and Commitments
Contingencies and Commitments | 9 Months Ended |
Jul. 01, 2023 | |
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 position, results of operations or cash flows. The Company has various purchase commitments for raw materials, supplies, and property and equipment incidental to the ordinary conduct of business. |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share | 9 Months Ended |
Jul. 01, 2023 | |
Basic and Diluted Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | 12. Basic and Diluted Earnings Per Share Basic net income or earnings per share ("EPS") is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted EPS includes the effects of options and restricted stock units, if dilutive. The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations: Quarterly Period Ended Three Quarterly Periods Ended (in millions, except per share amounts) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Numerator Consolidated net income $ 143 $ 207 $ 423 $ 533 Denominator Weighted average common shares outstanding - basic 118.7 128.6 121.0 132.6 Dilutive shares 2.4 2.1 0.9 3.0 Weighted average common and common equivalent shares outstanding - diluted 121.1 130.7 121.9 135.6 Per common share earnings Basic $ 1.20 $ 1.61 $ 3.50 $ 4.02 Diluted $ 1.18 $ 1.58 $ 3.47 $ 3.93 1.2 million and 1.5 million shares were excluded from the diluted EPS calculation for the quarterly and three quarterly periods ended July 1, 2023 as their effect would be anti-dilutive. 1.2 million shares were excluded for the quarterly and three quarterly periods ended July 2, 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jul. 01, 2023 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 13. 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 April 1, 2023 $ (254 ) $ (32 ) $ 52 $ (234 ) Other comprehensive income (loss) before reclassifications 23 — 40 63 Net amount reclassified — — (9 ) (9 ) Balance at July 1, 2023 $ (231 ) $ (32 ) $ 83 $ (180 ) Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance at April 2, 2022 $ (139 ) $ (67 ) $ 25 $ (181 ) Other comprehensive income (loss) before reclassifications (159 ) — 18 (141 ) Net amount reclassified — — 1 1 Balance at July 2, 2022 $ (298 ) $ (67 ) $ 44 $ (321 ) Three Quarterly Periods 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 (loss) before reclassifications 224 — 24 248 Net amount reclassified — — (25 ) (25 ) Balance at July 1, 2023 $ (231 ) $ (32 ) $ 83 $ (180 ) 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 (loss) before reclassifications (144 ) — 113 (31 ) Net amount reclassified — — 6 6 Balance at July 2, 2022 $ (298 ) $ (67 ) $ 44 $ (321 ) |
Insider Trading Arrangements
Insider Trading Arrangements - Evan Bayh [Member] | 3 Months Ended |
Jul. 01, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the quarter August 2023 start date and a November 2023 end date Item 6. Exhibits Exhibit No. Description of Exhibit 10.1 * $1,000,000,000 Fourth Amended and Restated Revolving Credit Agreement, dated as of June 22, 2023, by and among Berry Global, Inc., Berry Global Group, Inc., Berry Plastics Canada Inc., RPC Group Limited, the lenders party thereto, Bank of America, N.A., as collateral agent and administrative agent, and the financial institutions party thereto. 22.1 * Subsidiary Guarantors. 31.1 * Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer. 31.2 * Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer. 32.1 ** Section 1350 Certification of the Chief Executive Officer. 32.2 ** Section 1350 Certification of the Chief Financial Officer. 101.INS Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). 101.SCH Inline XBRL Taxonomy Extension Schema Document. 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document. 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document. 104 Cover Page Interactive Date File (formatted as Inline XBRL and contained in Exhibit 101). * Filed herewith ** Furnished herewith SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Berry Global Group, Inc. August 9, 2023 By: /s/ Mark W. Miles Mark W. Miles Chief Financial Officer |
Termination [Member] | |
Trading Arrangements, by Individual | |
Name | Evan Bayh |
Title | Director |
Rule 10b5-1 Arrangement Terminated | true |
Non-Rule 10b5-1 Arrangement Terminated | false |
Termination Date | Quarter ended July 1, 2023 |
Aggregate Available | 14,000 |
Adoption [Member] | |
Trading Arrangements, by Individual | |
Name | Evan Bayh |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | Quarter ended July 1, 2023 |
Arrangement Duration | 121 days |
Aggregate Available | 14,000 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jul. 01, 2023 | |
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 (the "SEC") for interim reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements |
Use of Estimates | In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. |
Critical Accounting Policies _2
Critical Accounting Policies and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Jul. 01, 2023 | |
Critical Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Reference Rate Reform In 2023, the Company will adopt ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The Company's adoption will not have a material change to our consolidated financial statements or disclosures. |
Restructuring and Transaction_2
Restructuring and Transaction Activities (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Restructuring and Transaction Activities [Abstract] | |
Restructuring and Transaction Activity Charges | The table below includes the significant components of our restructuring and transaction activities, by reporting segment: Quarterly Period Ended Three Quarterly Periods Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Consumer Packaging International $ 17 $ 3 $ 32 $ 10 Consumer Packaging North America 6 1 14 4 Health, Hygiene & Specialties 12 3 21 2 Engineered Materials 2 — 7 2 Consolidated $ 37 $ 7 $ 74 $ 18 |
Restructuring Accrual Activity | The table below sets forth the activity with respect to the restructuring and transaction activities accrual at July 1, 2023: Restructuring Employee Severance and Benefits Facility Exit Costs Non-cash Impairment Charges Transaction Activities Total Balance as of October 1, 2022 $ 2 $ 3 $ — $ — $ 5 Charges 28 16 5 25 74 Non-cash items — — (5 ) — (5 ) Cash (16 ) (18 ) — (25 ) (59 ) Balance as of July 1, 2023 $ 14 $ 1 $ — $ — $ 15 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Leases [Abstract] | |
Lease Assets and Liabilities | Supplemental lease information is as follows: Leases Classification July 1, 2023 October 1, 2022 Operating leases: Operating lease right-of-use assets Right-of-use assets $ 611 $ 521 Current operating lease liabilities Other current liabilities 114 108 Noncurrent operating lease liabilities Operating lease liability 512 429 Finance leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 33 $ 38 Current finance lease liability Current portion of long-term debt 10 9 Noncurrent finance lease liabilities Long-term debt, less current portion 19 24 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Long-term debt consists of the following: Facility Maturity Date July 1, 2023 October 1, 2022 Term loan (a) July 2026 $ 3,290 3,440 Revolving line of credit June 2028 — — 0.95 (b) February 2024 279 800 1.00 (c) July 2025 764 686 1.57 January 2026 1,525 1,525 4.875 July 2026 1,250 1,250 1.65 January 2027 400 400 1.50 (c) July 2027 409 367 5.50 April 2028 500 — 4.50 February 2026 291 298 5.625 July 2027 500 500 Debt discounts and deferred fees (38 ) (60 ) Finance leases and other Various 42 49 Total long-term debt 9,212 9,255 Current portion of long-term debt (12 ) (13 ) Long-term debt, less current portion $ 9,200 9,242 (a) Effectively 82% fixed interest rate with interest rate swaps (see Note 8). (b) Indicates debt which has been classified as long-term debt in accordance with the Company's ability and intention to refinance such obligations on a long-term basis. (c) Euro denominated |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
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 July 1, 2023 October 1, 2022 Cross-currency swaps Designated Other assets $ — $ 147 Cross-currency swaps Designated Other current liabilities 116 — Cross-currency swaps Designated Other long-term liabilities 24 — Interest rate swaps Designated Other assets 19 11 Interest rate swaps Designated Other long-term liabilities 4 3 Interest rate swaps Not designated Other long-term liabilities 104 117 |
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 Three Quarterly Periods Ended Derivative Instruments Statements of Income Location July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Cross-currency swaps Interest expense $ (10 ) $ (5 ) $ (31 ) $ (12 ) Interest rate swaps Interest expense (21 ) 11 (38 ) 35 |
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 July 1, 2023 and October 1, 2022, along with the impairment loss recognized on the fair value measurement during the period: As of July 1, 2023 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 5,050 5,050 — Definite lived intangible assets — — 1,532 1,532 — Property, plant, and equipment — — 4,651 4,651 5 Total $ — $ — $ 11,481 $ 11,481 $ 5 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) | 9 Months Ended |
Jul. 01, 2023 | |
Segment and Geographic Data [Abstract] | |
Selected Information by Reportable Segment | Selected information by reportable segment is presented in the following tables: Quarterly Period Ended Three Quarterly Periods Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net sales: Consumer Packaging International $ 1,036 $ 1,096 $ 3,031 $ 3,290 Consumer Packaging North America 798 927 2,335 2,659 Health, Hygiene & Specialties 657 788 1,997 2,429 Engineered Materials 738 915 2,214 2,696 Total net sales $ 3,229 $ 3,726 $ 9,577 $ 11,074 Operating income: Consumer Packaging International $ 68 $ 82 $ 190 $ 248 Consumer Packaging North America 89 104 253 235 Health, Hygiene & Specialties 22 56 89 186 Engineered Materials 88 94 246 237 Total operating income $ 267 $ 336 $ 778 $ 906 Depreciation and amortization: Consumer Packaging International $ 79 $ 78 $ 230 $ 242 Consumer Packaging North America 54 53 159 160 Health, Hygiene & Specialties 45 44 133 133 Engineered Materials 29 28 84 85 Total depreciation and amortization $ 207 $ 203 $ 606 $ 620 |
Selected Information by Geographical Region | Selected information by geographical region is presented in the following tables: Quarterly Period Ended Three Quarterly Periods Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net sales: United States and Canada $ 1,748 $ 2,030 $ 5,195 $ 5,978 Europe 1,184 1,320 3,470 3,937 Rest of world 297 376 912 1,160 Total net sales $ 3,229 $ 3,726 $ 9,577 $ 11,074 |
Basic and Diluted Earnings Pe_2
Basic and Diluted Earnings Per Share (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Basic and Diluted Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations: Quarterly Period Ended Three Quarterly Periods Ended (in millions, except per share amounts) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Numerator Consolidated net income $ 143 $ 207 $ 423 $ 533 Denominator Weighted average common shares outstanding - basic 118.7 128.6 121.0 132.6 Dilutive shares 2.4 2.1 0.9 3.0 Weighted average common and common equivalent shares outstanding - diluted 121.1 130.7 121.9 135.6 Per common share earnings Basic $ 1.20 $ 1.61 $ 3.50 $ 4.02 Diluted $ 1.18 $ 1.58 $ 3.47 $ 3.93 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
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 April 1, 2023 $ (254 ) $ (32 ) $ 52 $ (234 ) Other comprehensive income (loss) before reclassifications 23 — 40 63 Net amount reclassified — — (9 ) (9 ) Balance at July 1, 2023 $ (231 ) $ (32 ) $ 83 $ (180 ) Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance at April 2, 2022 $ (139 ) $ (67 ) $ 25 $ (181 ) Other comprehensive income (loss) before reclassifications (159 ) — 18 (141 ) Net amount reclassified — — 1 1 Balance at July 2, 2022 $ (298 ) $ (67 ) $ 44 $ (321 ) Three Quarterly Periods 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 (loss) before reclassifications 224 — 24 248 Net amount reclassified — — (25 ) (25 ) Balance at July 1, 2023 $ (231 ) $ (32 ) $ 83 $ (180 ) 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 (loss) before reclassifications (144 ) — 113 (31 ) Net amount reclassified — — 6 6 Balance at July 2, 2022 $ (298 ) $ (67 ) $ 44 $ (321 ) |
Revenue and Accounts Receivab_2
Revenue and Accounts Receivable (Details) - USD ($) $ in Millions | Jul. 01, 2023 | Oct. 01, 2022 |
Revenue and Accounts Receivable [Abstract] | ||
Accrual for customer rebates | $ 108 | $ 103 |
Allowance for credit losses | $ 18 | $ 18 |
Acquisition (Details)
Acquisition (Details) - Pro-Western Plastics [Member] $ in Millions | 1 Months Ended |
Mar. 31, 2023 USD ($) | |
Acquisition [Abstract] | |
Purchase price | $ 88 |
Goodwill | $ 46 |
Restructuring and Transaction_3
Restructuring and Transaction Activities, Restructuring Charges by Segment (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | Jul. 01, 2023 USD ($) Segment | Jul. 02, 2022 USD ($) | |
Restructuring Charges [Abstract] | ||||
Number of reporting segments | Segment | 4 | |||
Term of plant rationalizations | 3 years | |||
Estimated cost of plant rationalizations | $ 200 | $ 200 | ||
Restructuring and transaction activities | 37 | $ 7 | 74 | $ 18 |
Consumer Packaging International [Member] | ||||
Restructuring Charges [Abstract] | ||||
Restructuring and transaction activities | 17 | 3 | 32 | 10 |
Consumer Packaging North America [Member] | ||||
Restructuring Charges [Abstract] | ||||
Restructuring and transaction activities | 6 | 1 | 14 | 4 |
Health, Hygiene & Specialties [Member] | ||||
Restructuring Charges [Abstract] | ||||
Restructuring and transaction activities | 12 | 3 | 21 | 2 |
Engineered Materials [Member] | ||||
Restructuring Charges [Abstract] | ||||
Restructuring and transaction activities | $ 2 | $ 0 | $ 7 | $ 2 |
Restructuring and Transaction_4
Restructuring and Transaction Activities, Restructuring Accrual Activity (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jul. 01, 2023 | Oct. 01, 2022 | |
Restructuring Accrual [Roll Forward] | ||
Beginning balance | $ 5 | |
Charges | 74 | |
Non-cash items | (5) | $ 0 |
Cash | (59) | |
Ending balance | 15 | 5 |
Employee Severance and Benefits [Member] | ||
Restructuring Accrual [Roll Forward] | ||
Beginning balance | 2 | |
Charges | 28 | |
Non-cash items | 0 | |
Cash | (16) | |
Ending balance | 14 | 2 |
Facility Exit Costs [Member] | ||
Restructuring Accrual [Roll Forward] | ||
Beginning balance | 3 | |
Charges | 16 | |
Non-cash items | 0 | |
Cash | (18) | |
Ending balance | 1 | 3 |
Non-Cash Impairment Charges [Member] | ||
Restructuring Accrual [Roll Forward] | ||
Beginning balance | 0 | |
Charges | 5 | |
Non-cash items | (5) | |
Cash | 0 | |
Ending balance | 0 | 0 |
Transaction Activities [Member] | ||
Restructuring Accrual [Roll Forward] | ||
Beginning balance | 0 | |
Charges | 25 | |
Non-cash items | 0 | |
Cash | (25) | |
Ending balance | $ 0 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Jul. 01, 2023 | Oct. 01, 2022 |
Operating Leases [Abstract] | ||
Operating lease right-of-use assets | $ 611 | $ 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 | $ 114 | $ 108 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Noncurrent operating lease liabilities | $ 512 | $ 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 | $ 33 | $ 38 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment | Property, plant and equipment |
Current finance lease liability | $ 10 | $ 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 | $ 19 | $ 24 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-Term Debt and Lease Obligation | Long-Term Debt and Lease Obligation |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Jul. 01, 2023 | Apr. 01, 2023 | Oct. 01, 2022 | ||
Long-term Debt [Abstract] | ||||
Debt discounts and deferred fees | $ (38) | $ (60) | ||
Total long-term debt | 9,212 | 9,255 | ||
Current portion of long-term debt | (12) | (13) | ||
Long-term debt, less current portion | 9,200 | 9,242 | ||
Term Loan [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | [1] | $ 3,290 | 3,440 | |
Maturity date | Jul. 31, 2026 | |||
Percentage of loan hedged with interest rate swaps to fix interest rate | 82% | |||
Revolving Line of Credit [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 0 | 0 | ||
Maturity date | Jun. 30, 2028 | |||
0.95% First Priority Senior Secured Notes [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | [2] | $ 279 | 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 | [3] | $ 764 | 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 | [3] | $ 409 | 367 | |
Interest rate | 1.50% | |||
Maturity date | Jul. 31, 2027 | |||
5.50% First Priority Senior Secured Notes due April 2028 [Member] | ||||
Long-term Debt [Abstract] | ||||
Long-term debt | $ 500 | 0 | ||
Interest rate | 5.50% | |||
Maturity date | Apr. 30, 2028 | |||
Face amount of debt issued | $ 500 | |||
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 | $ 42 | $ 49 | ||
[1]Effectively 82% fixed interest rate with interest rate swaps (see Note 8).[2] Indicates debt which has been classified as long-term debt in accordance with the Company's ability and intention to refinance such obligations on a long-term basis. Euro denominated |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements, Cross-Currency Swaps (Details) - Jul. 01, 2023 € 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) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Interest Rate Swaps [Abstract] | ||
Settlement of derivatives | $ (36) | $ (69) |
Interest Rate Swaps [Member] | ||
Interest Rate Swaps [Abstract] | ||
Purpose of interest rate swap activities | The primary purpose of the Company’s interest rate swap activities is to manage interest expense variability associated with our outstanding variable rate term loan debt. | |
Settlement of derivatives | $ 36 | |
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 | 4.522% | |
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 | $ 473 | |
Fixed annual rate of swap | 3.961% | |
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 | $ 884 | |
Fixed annual rate of swap | 4.522% | |
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 | $ 500 | |
Fixed annual rate of swap | 3.672% | |
Interest Rate Swap Expiring June 2026 [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 | Jul. 01, 2023 | 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 Current Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 116 | 0 |
Cross-Currency Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 24 | 0 |
Interest Rate Swaps [Member] | Designated [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 19 | 11 |
Interest Rate Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 4 | 3 |
Interest Rate Swaps [Member] | Not Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 104 | $ 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 | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Cross-Currency Swaps [Member] | ||||
Derivative Instruments [Abstract] | ||||
Loss (gain) on derivative instruments | $ (10) | $ (5) | $ (31) | $ (12) |
Loss (Gain) on Derivative Instruments, Statement of Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net |
Interest Rate Swaps [Member] | ||||
Derivative Instruments [Abstract] | ||||
Loss (gain) on derivative instruments | $ (21) | $ 11 | $ (38) | $ 35 |
Loss (Gain) on Derivative Instruments, Statement of Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements, Assets Measured at Fair Value on Non-Recurring Basis (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jul. 01, 2023 | Oct. 01, 2022 | |
Impairment [Abstract] | ||
Indefinite-lived trademarks | $ 0 | $ 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 5 | 0 |
Impairment charges | 5 | 0 |
Fair Value Adjustment [Abstract] | ||
Fair value of long-term indebtedness greater/(less) than book value | (371) | |
Fair Value on Non-Recurring Basis [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 248 | 247 |
Goodwill | 5,050 | 4,832 |
Definite lived intangible assets | 1,532 | 1,606 |
Property, plant, and equipment | 4,651 | 4,342 |
Total | 11,481 | 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 | 5,050 | 4,832 |
Definite lived intangible assets | 1,532 | 1,606 |
Property, plant, and equipment | 4,651 | 4,342 |
Total | $ 11,481 | $ 11,027 |
Segment and Geographic Data, Se
Segment and Geographic Data, Selected Information by Reportable Segment (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | Jul. 01, 2023 USD ($) Segment | Jul. 02, 2022 USD ($) | |
Segment and Geographic Data [Abstract] | ||||
Number of reporting segments | Segment | 4 | |||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | $ 3,229 | $ 3,726 | $ 9,577 | $ 11,074 |
Operating income | 267 | 336 | 778 | 906 |
Depreciation and amortization | 207 | 203 | 606 | 620 |
Operating Segment [Member] | Consumer Packaging International [Member] | ||||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | 1,036 | 1,096 | 3,031 | 3,290 |
Operating income | 68 | 82 | 190 | 248 |
Depreciation and amortization | 79 | 78 | 230 | 242 |
Operating Segment [Member] | Consumer Packaging North America [Member] | ||||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | 798 | 927 | 2,335 | 2,659 |
Operating income | 89 | 104 | 253 | 235 |
Depreciation and amortization | 54 | 53 | 159 | 160 |
Operating Segment [Member] | Health, Hygiene & Specialties [Member] | ||||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | 657 | 788 | 1,997 | 2,429 |
Operating income | 22 | 56 | 89 | 186 |
Depreciation and amortization | 45 | 44 | 133 | 133 |
Operating Segment [Member] | Engineered Materials [Member] | ||||
Selected Information by Reportable Segment [Abstract] | ||||
Net sales | 738 | 915 | 2,214 | 2,696 |
Operating income | 88 | 94 | 246 | 237 |
Depreciation and amortization | $ 29 | $ 28 | $ 84 | $ 85 |
Segment and Geographic Data, _2
Segment and Geographic Data, Selected Information by Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Selected Information by Geographical Region [Abstract] | ||||
Net sales | $ 3,229 | $ 3,726 | $ 9,577 | $ 11,074 |
Reportable Geographical Region [Member] | United States and Canada [Member] | ||||
Selected Information by Geographical Region [Abstract] | ||||
Net sales | 1,748 | 2,030 | 5,195 | 5,978 |
Reportable Geographical Region [Member] | Europe [Member] | ||||
Selected Information by Geographical Region [Abstract] | ||||
Net sales | 1,184 | 1,320 | 3,470 | 3,937 |
Reportable Geographical Region [Member] | Rest of World [Member] | ||||
Selected Information by Geographical Region [Abstract] | ||||
Net sales | $ 297 | $ 376 | $ 912 | $ 1,160 |
Basic and Diluted Earnings Pe_3
Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Numerator [Abstract] | ||||
Consolidated net income | $ 143 | $ 207 | $ 423 | $ 533 |
Denominator [Abstract] | ||||
Weighted average common shares outstanding - basic (in shares) | 118.7 | 128.6 | 121 | 132.6 |
Dilutive shares (in shares) | 2.4 | 2.1 | 0.9 | 3 |
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 121.1 | 130.7 | 121.9 | 135.6 |
Per Common Share Earnings [Abstract] | ||||
Basic (in dollars per share) | $ 1.2 | $ 1.61 | $ 3.5 | $ 4.02 |
Diluted (in dollars per share) | $ 1.18 | $ 1.58 | $ 3.47 | $ 3.93 |
Antidilutive Shares [Abstract] | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 1.2 | 1.2 | 1.5 | 1.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | $ 3,196 | |||
Other comprehensive income (loss) before reclassifications | $ 63 | $ (141) | 248 | $ (31) |
Net amount reclassified | (9) | 1 | (25) | 6 |
Ending balance | 3,387 | 3,387 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | (234) | (181) | (403) | (296) |
Ending balance | (180) | (321) | (180) | (321) |
Currency Translation [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | (254) | (139) | (455) | (154) |
Other comprehensive income (loss) before reclassifications | 23 | (159) | 224 | (144) |
Net amount reclassified | 0 | 0 | 0 | 0 |
Ending balance | (231) | (298) | (231) | (298) |
Defined Benefit Pension and Retiree Health Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | (32) | (67) | (32) | (67) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Net amount reclassified | 0 | 0 | 0 | 0 |
Ending balance | (32) | (67) | (32) | (67) |
Derivative Instruments [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | 52 | 25 | 84 | (75) |
Other comprehensive income (loss) before reclassifications | 40 | 18 | 24 | 113 |
Net amount reclassified | (9) | 1 | (25) | 6 |
Ending balance | $ 83 | $ 44 | $ 83 | $ 44 |