Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Dec. 29, 2018 | Feb. 01, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | BERRY GLOBAL GROUP INC | |
Entity Central Index Key | 1,378,992 | |
Current Fiscal Year End Date | --09-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 130.3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 29, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Consolidated Statements of Income (Unaudited) [Abstract] | ||
Net sales | $ 1,972 | $ 1,776 |
Costs and expenses: | ||
Cost of goods sold | 1,619 | 1,447 |
Selling, general and administrative | 124 | 117 |
Amortization of intangibles | 42 | 38 |
Restructuring and impairment charges | 11 | 11 |
Operating income | 176 | 163 |
Other (income) expense, net | 0 | 9 |
Interest expense, net | 64 | 62 |
Income before income taxes | 112 | 92 |
Income tax expense (benefit) | 24 | (71) |
Net income | $ 88 | $ 163 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.67 | $ 1.24 |
Diluted (in dollars per share) | $ 0.66 | $ 1.20 |
Outstanding weighted-average shares: | ||
Basic (in shares) | 131.1 | 131 |
Diluted (in shares) | 133.8 | 136 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||
Net income | $ 88 | $ 163 |
Currency translation | (4) | (24) |
Pension and other postretirement benefits | 0 | (1) |
Interest rate hedges | (24) | 17 |
Provision for income taxes | 7 | (4) |
Other comprehensive loss, net of tax | (21) | (12) |
Comprehensive income | $ 67 | $ 151 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 293 | $ 381 |
Accounts receivable (less allowance of $13) | 879 | 941 |
Inventories: | ||
Finished goods | 545 | 503 |
Raw materials and supplies | 411 | 384 |
Inventories | 956 | 887 |
Prepaid expenses and other current assets | 78 | 76 |
Total current assets | 2,206 | 2,285 |
Property, plant and equipment, net | 2,457 | 2,488 |
Goodwill and intangible assets, net | 4,243 | 4,284 |
Other assets | 66 | 74 |
Total assets | 8,972 | 9,131 |
Current liabilities: | ||
Accounts payable | 715 | 783 |
Accrued expenses and other current liabilities | 427 | 416 |
Current portion of long-term debt | 37 | 38 |
Total current liabilities | 1,179 | 1,237 |
Long-term debt, less current portion | 5,700 | 5,806 |
Deferred income taxes | 357 | 365 |
Other long-term liabilities | 281 | 289 |
Total liabilities | 7,517 | 7,697 |
Stockholders' equity | ||
Common stock (130.6 and 131.4 million shares issued, respectively) | 1 | 1 |
Additional paid-in capital | 873 | 867 |
Non-controlling interest | 3 | 3 |
Retained earnings | 755 | 719 |
Accumulated other comprehensive loss | (177) | (156) |
Total stockholders' equity | 1,455 | 1,434 |
Total liabilities and stockholders' equity | $ 8,972 | $ 9,131 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Current assets: | ||
Accounts receivable, allowance | $ 13 | $ 13 |
Stockholders' equity | ||
Common stock, shares issued (in shares) | 130.6 | 131.4 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Non-Controlling Interest [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
Balance at Sep. 30, 2017 | $ 1 | $ 823 | $ 3 | $ (68) | $ 256 | $ 1,015 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 0 | 4 | 0 | 0 | 0 | 4 |
Proceeds from issuance of common stock | 0 | 4 | 0 | 0 | 0 | 4 |
Interest rate hedge, net of tax | 0 | 0 | 0 | 13 | 0 | 13 |
Net income attributable to the Company | 0 | 0 | 0 | 0 | 163 | 163 |
Currency translation | 0 | 0 | 0 | (24) | 0 | (24) |
Pension | 0 | 0 | 0 | (1) | 0 | (1) |
Balance at Dec. 30, 2017 | 1 | 831 | 3 | (80) | 419 | 1,174 |
Balance at Sep. 29, 2018 | 1 | 867 | 3 | (156) | 719 | 1,434 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 0 | 3 | 0 | 0 | 0 | 3 |
Proceeds from issuance of common stock | 0 | 5 | 0 | 0 | 0 | 5 |
Common stock repurchased and retired | 0 | (2) | 0 | 0 | (52) | (54) |
Interest rate hedge, net of tax | 0 | 0 | 0 | (17) | 0 | (17) |
Net income attributable to the Company | 0 | 0 | 0 | 0 | 88 | 88 |
Currency translation | 0 | 0 | 0 | (4) | 0 | (4) |
Balance at Dec. 29, 2018 | $ 1 | $ 873 | $ 3 | $ (177) | $ 755 | $ 1,455 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 88 | $ 163 |
Adjustments to reconcile net cash provided by operating activities: | ||
Depreciation | 96 | 91 |
Amortization of intangibles | 42 | 38 |
Non-cash interest expense | (1) | 3 |
Deferred income tax | 4 | (121) |
Share-based compensation expense | 3 | 4 |
Other non-cash operating activities, net | 4 | 6 |
Changes in working capital | (71) | (66) |
Changes in other assets and liabilities | (4) | 35 |
Net cash from operating activities | 161 | 153 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (75) | (94) |
Proceeds from sale of assets | 0 | 3 |
Net cash from investing activities | (75) | (91) |
Cash Flows from Financing Activities: | ||
Repayments on long-term borrowings | (110) | (108) |
Proceeds from issuance of common stock | 5 | 4 |
Repurchase of common stock | (52) | 0 |
Payment of tax receivable agreement | (16) | (37) |
Net cash from financing activities | (173) | (141) |
Effect of exchange rate changes on cash | (1) | 1 |
Net change in cash | (88) | (78) |
Cash and cash equivalents at beginning of period | 381 | 306 |
Cash and cash equivalents at end of period | $ 293 | $ 228 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 29, 2018 | |
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. Certain reclassifications have been made to prior periods to conform to current reporting. 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. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Dec. 29, 2018 | |
Recently Issued Accounting Pronouncements [Abstract] | |
Recently Issued Accounting Pronouncements | 2. Recently Issued Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates to the FASB's Accounting Standards Codification. During fiscal 2019, with the exception of the below, there have been no developments to the recently adopted accounting pronouncements from those disclosed in the Company's 2018 Annual Report on Form 10-K that are considered to have a material impact on our unaudited consolidated financial statements. Revenue Recognition In May 2014, the FASB issued a final standard on revenue recognition. Under the new standard, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the provisions of the new standard are effective for annual reporting periods beginning after December 15, 2017 and interim periods therein. An entity can apply the new revenue standard on a full retrospective approach to each prior reporting period presented or on a modified retrospective approach with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings. The Company adopted the new standard effective for fiscal 2019 using the modified retrospective approach. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new standard, the lessee of an operating lease will be required to do the following: 1) recognize a right-of-use asset and a lease liability in the statement of financial position, 2) recognize a single lease cost allocated over the lease term generally on a straight-line basis, and 3) classify all cash payments within operating activities on the statement of cash flows. Companies are required to adopt this standard using a modified retrospective transition method. Amendments in this standard are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of this standard, which will be effective for the Company beginning fiscal 2020. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 29, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Our revenues are primarily derived from the sale of plastic packaging products to customers. Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration 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 sources of variable consideration are customer rebates and cash discounts. 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. A small number of our contracts are for sales of products which are customer specific and cannot be repurposed. Sales for these products qualify for over time recognition and are immaterial to the Company. Our rebate programs are individually negotiated with customers and contain a variety of different terms and conditions. Certain rebates are calculated as flat percentages of purchases, while others included tiered volume incentives. These rebates may be payable monthly, quarterly, or annually. The calculation of the accrued rebate balance involves management estimates, especially where the terms of the rebate involve tiered volume levels that require estimates of expected annual sales. These provisions are based on estimates derived from current program requirements and historical experience. The accrual for customer rebates was $64 million and $58 million at December 29, 2018 and September 29, 2018, respectively, and is included in Accrued expenses and other current liabilities. Due to the nature of our sales transactions, we have elected the following practical expedients: (i) Shipping and handling costs are treated as fulfillment costs. Accordingly, shipping and handling costs are classified as a component of Cost of goods sold while amounts billed to customers are classified as a component of Net Sales; (ii) We exclude sales and similar taxes that are imposed on our sales and collected from customers; (iii) As our standard payment terms are less than one year, we did not assess whether a contract has a significant financing component. The Company disaggregates revenue based on reportable business segment, geography, and significant product line. Refer to Note 11. Operating Segments for further information. |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 29, 2018 | |
Acquisitions [Abstract] | |
Acquisitions | 4. Acquisitions Laddawn, Inc. In August 2018, the Company acquired Laddawn, Inc. ("Laddawn") for a purchase price of $242 million, which is preliminary and subject to adjustment. Laddawn is a custom bag and film manufacturer with a unique-to-industry e-commerce sales platform. The acquired business is operated in our Engineered Materials 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 estimates of fair value at the acquisition date. The results of Laddawn have been included in the consolidated results of the Company since the date of the acquisition. The Company has not finalized the allocation of the purchase price to the fair value of the assets acquired and liabilities assumed. The assets acquired and liabilities assumed consisted of working capital of $26 million, property and equipment of $39 million, intangible assets of $98 million, and goodwill of $79 million. The working capital includes a $2 million step up of inventory to fair value. The Company has recognized goodwill on this transaction primarily as a result of expected cost synergies, and expects goodwill to be deductible for tax purposes. Clopay Plastic Products Company, Inc. In February 2018, the Company acquired Clopay Plastic Products Company, Inc. ("Clopay") for a purchase price of $475 million. Clopay is an innovator in the development of printed breathable films, elastic films, and laminates with product offerings uniquely designed for applications used in a number of markets including: hygiene, healthcare, construction and industrial protective apparel. The acquired business is operated within our Health, Hygiene & Specialties segment. To finance the purchase, the Company issued $500 million aggregate principal amount of 4.5% second priority notes through a private placement offering. 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 fair values at the acquisition date. The results of Clopay have been included in the consolidated results of the Company since the date of the acquisition. The Company has recognized goodwill on this transaction primarily as a result of expected cost synergies, and expects goodwill to be deductible for tax purposes. The following table summarizes the purchase price allocation and estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition: Working capital (a) $ 70 Property and equipment 164 Intangible assets 125 Goodwill 111 Other assets and long-term liabilities 5 (a) Includes a $3 million step up of inventory to fair value |
Accounts Receivable Factoring A
Accounts Receivable Factoring Agreements | 3 Months Ended |
Dec. 29, 2018 | |
Accounts Receivable Factoring Agreements [Abstract] | |
Accounts Receivable Factoring Agreements | 5. Accounts Receivable Factoring Agreements The Company has entered into various factoring agreements, both in the U.S. and at a number of foreign subsidiaries, to sell certain receivables to unrelated third-party financial institutions. The Company accounts for these transactions in accordance with ASC 860, "Transfers and Servicing" ("ASC 860"). ASC 860 allows for the ownership transfer of accounts receivable to qualify for sale treatment when the appropriate criteria is met, which permits the Company to present the balances sold under the program to be excluded from Accounts receivable, net on the Consolidated Balance Sheets. Receivables are considered sold when (i) they are transferred beyond the reach of the Company and its creditors, (ii) the purchaser has the right to pledge or exchange the receivables, and (iii) the Company has surrendered control over the transferred receivables. In addition, the Company provides no other forms of continued financial support to the purchaser of the receivables once the receivables are sold. There were no amounts outstanding from financial institutions related to U.S. based programs at December 29, 2018 or September 29, 2018. Gross amounts factored under these U.S. based programs at December 29, 2018 and September 29, 2018 were $212 million and $162 million, respectively. The fees associated with transfer of receivables for all programs were not material for any of the periods presented. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 3 Months Ended |
Dec. 29, 2018 | |
Restructuring and Impairment Charges [Abstract] | |
Restructuring and Impairment Charges | 6. Restructuring and Impairment Charges The Company incurred restructuring costs of $11 million for both the quarterly period ended December 29, 2018 and December 30, 2017, respectively. The tables below set forth the significant components of the restructuring charges recognized, by segment: Quarterly Period Ended December 29, 2018 December 30, 2017 Consumer Packaging $ — $ 1 Health, Hygiene & Specialties 10 10 Engineered Materials 1 — Consolidated $ 11 $ 11 The table below sets forth the activity with respect to the restructuring accrual at December 29, 2018: Employee Severance and Benefits Facility Exit Costs Non-cash Impairment Charges Total Balance at September 29, 2018 $ 9 4 — $ 13 Charges 3 1 7 11 Non-cash asset impairment — — (7 ) (7 ) Cash payments (6 ) (1 ) — (7 ) Balance at December 29, 2018 $ 6 4 — $ 10 |
Accrued Expenses, Other Current
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities | 3 Months Ended |
Dec. 29, 2018 | |
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities [Abstract] | |
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities | 7. Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities The following table sets forth the totals included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets: December 29, 2018 September 29, 2018 Employee compensation $ 106 $ 113 Accrued taxes 79 72 Rebates 64 58 Interest 43 49 Tax receivable agreement obligation 12 16 Restructuring 10 13 Accrued operating expenses 113 95 $ 427 $ 416 The following table sets forth the totals included in Other long-term liabilities on the Consolidated Balance Sheets: December 29, 2018 September 29, 2018 Uncertain tax positions $ 68 $ 67 Deferred purchase price 43 40 Pension liability 42 45 Lease retirement obligation 40 39 Sale-lease back deferred gain 21 21 Transition tax 18 18 Derivative instruments 13 12 Tax receivable agreement obligation 12 23 Other 24 24 $ 281 $ 289 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Dec. 29, 2018 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 8. Long-Term Debt Long-term debt consists of the following: Maturity Date December 29, 2018 September 29, 2018 Term loan February 2020 $ 700 $ 800 Term loan January 2021 814 814 Term loan October 2022 1,545 1,545 Term loan January 2024 493 493 Revolving line of credit May 2020 — — 5 1 / 2 May 2022 500 500 6% Second Priority Senior Secured Notes October 2022 400 400 5 1 / 8 July 2023 700 700 4 1 / 2 February 2026 500 500 Debt discounts and deferred fees (40 ) (43 ) Capital leases and other Various 125 135 Total long-term debt 5,737 5,844 Current portion of long-term debt (37 ) (38 ) Long-term debt, less current portion $ 5,700 $ 5,806 The Company was in compliance with all debt covenants for all periods presented. Debt discounts and deferred financing fees are presented net of Long-term debt, less the current portion on the Consolidated Balance Sheets and are amortized to Interest expense through maturity. Term Loans The term loans with a maturity date of February 2020 and January 2021 bear interest at LIBOR plus 1.75%. The term loans with a maturity date of October 2022 and January 2024 bear interest at LIBOR plus 2.00%. During fiscal 2019, the Company has made $110 million of repayments on long-term borrowings using existing liquidity. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Dec. 29, 2018 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | 9. 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. For those derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. To the extent hedging relationships are found to be effective, as determined by FASB guidance, changes in the fair value of the derivatives are offset by changes in the fair value of the related hedged item and recorded to Accumulated other comprehensive loss. Any identified ineffectiveness, or changes in the fair value of a derivative not designated as a hedge, is recorded to the Consolidated Statements of Income. Cross-Currency Swaps The Company is party to certain cross-currency swap agreements with a notional amount of 250 million euro to effectively convert a portion of our fixed-rate U.S. dollar denominated term loans, including the monthly interest payments, to fixed-rate euro-denominated debt. The swap agreements mature in May 2022. The risk management objective is to manage foreign currency risk relating to net investments in certain European subsidiaries denominated in foreign currencies and reduce the variability in the functional currency cash flows of a portion of the Company’s term loans. Changes in fair value of the derivative instruments are recognized in a component of Accumulated other comprehensive loss, to offset the changes in the values of the net investments being hedged. Interest Rate Swaps The primary purpose of the Company’s interest rate swap activities is to manage cash flow variability associated with our outstanding variable rate term loan debt. During fiscal 2017 the Company modified various term loan rates and maturities. In conjunction with these modifications the Company realigned existing swap agreements which resulted in the de-designation of the original hedge and re-designation of the modified swaps as effective cash flow hedges. The amounts included in Accumulated other comprehensive loss at the date of de-designation are being amortized to Interest expense through the terms of the original swaps. As of December 29, 2018, the Company effectively had (i) a $450 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 2.000%, with an effective date in May 2017 and expiration in May 2022 and (ii) a $1 billion interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 2.808% with an effective date in June 2018 and expiration in September 2021. 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: Derivatives Instruments Hedge Designation Balance Sheet Location December 29, 2018 September 29, 2018 Cross-currency swaps Designated Other long-term liabilities $ 3 $ 11 Interest rate swaps Designated Other assets 7 16 Interest rate swaps Designated Other long-term liabilities 10 — Interest rate swaps Not designated Other long-term liabilities — 1 The effect of the Company's derivative instruments on the Consolidated Statements of Income is as follows: Quarterly Period Ended Derivatives instruments Statement of Operations Location December 29, 2018 December 30, 2017 Foreign currency swaps Other (income) expense, net $ (4 ) $ 2 Interest rate swaps Interest expense, net (2 ) (1 ) The amortization related to unrealized losses in Accumulated other comprehensive loss is expected to be $9 million in the next 12 months. 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 2018 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 29, 2018 and September 29, 2018, along with the impairment loss recognized on the fair value measurement during the period: As of December 29, 2018 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 2,941 2,941 — Definite lived intangible assets — — 1,054 1,054 — Property, plant, and equipment — — 2,457 2,457 7 Total $ — $ — $ 6,700 $ 6,700 $ 7 As of September 29, 2018 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 2,944 2,944 — Definite lived intangible assets — — 1,092 1,092 — Property, plant, and equipment — — 2,488 2,488 — Total $ — $ — $ 6,772 $ 6,772 $ — The Company's financial instruments consist primarily of cash and cash equivalents, long-term debt, interest rate and cross-currency swap agreements, and capital lease obligations. The book value of our long-term indebtedness exceeded fair value by $45 million as of December 29, 2018. The Company's long-term debt fair values were determined using Level 2 inputs as other significant observable inputs were not available. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 29, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The transitional impacts of the Tax Act resulted in a transition benefit of $95 million in the quarterly period ended December 30, 2017. During the Quarter, the Company completed the accounting for the Tax Act, resulting in an immaterial change from fiscal 2018. The effective tax rate was 21% for the quarterly period ended December 29, 2018 and was positively impacted by 2% from the share-based compensation excess tax benefit deduction, 1% from research and development credits, and other discrete items. These favorable items were offset by increases of 4% from U.S. state income taxes and other discrete items. |
Operating Segments
Operating Segments | 3 Months Ended |
Dec. 29, 2018 | |
Operating Segments [Abstract] | |
Operating Segments | 11. Operating Segments The Company's operations are organized into three operating segments: Engineered Materials, Health, Hygiene & Specialties, and Consumer Packaging. The structure is designed to align us with our customers, provide optimal 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 29, 2018 December 30, 2017 Net sales: Engineered Materials $ 669 $ 648 Health, Hygiene & Specialties 702 577 Consumer Packaging 601 551 Total net sales $ 1,972 $ 1,776 Operating income: Engineered Materials $ 94 $ 88 Health, Hygiene & Specialties 49 37 Consumer Packaging 33 38 Total operating income $ 176 $ 163 Depreciation and amortization: Engineered Materials $ 31 $ 29 Health, Hygiene & Specialties 54 46 Consumer Packaging 53 54 Total depreciation and amortization $ 138 $ 129 December 29, 2018 September 29, 2018 Total assets: Engineered Materials $ 1,964 $ 1,998 Health, Hygiene & Specialties 3,811 3,913 Consumer Packaging 3,197 3,220 Total assets $ 8,972 $ 9,131 Total goodwill: Engineered Materials $ 630 $ 633 Health, Hygiene & Specialties 903 902 Consumer Packaging 1,408 1,409 Total goodwill $ 2,941 $ 2,944 Selected information by geography is presented in the following tables: Quarterly Period Ended December 29, 2018 December 30, 2017 Net sales: North America $ 1,605 $ 1,466 South America 96 74 Europe 204 170 Asia 67 66 Total net sales $ 1,972 $ 1,776 December 29, 2018 September 29, 2018 Long-lived assets: North America $ 5,685 $ 5,764 South America 332 320 Europe 451 463 Asia 298 299 Total long-lived assets: $ 6,766 $ 6,846 Selected information by product line is presented in the following tables: Quarterly Period Ended December 29, 2018 December 30, 2017 Net sales: Performance Materials 39 43 Engineered Products 61 57 Engineered Materials 100 % 100 % Health 18 19 Hygiene 52 44 Specialties 30 37 Health, Hygiene & Specialties 100 % 100 % Rigid Open Top 44 43 Rigid Closed Top 56 57 Consumer Packaging 100 % 100 % |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Dec. 29, 2018 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 12. 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, management believes that any ultimate liability would not be material to its financial statements. The Company has various purchase commitments for raw materials, supplies, and property and equipment incidental to the ordinary conduct of business. |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Dec. 29, 2018 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | 13. Share Repurchase Program In fiscal 2018, the Company announced a $500 million share repurchase program. Berry may repurchase shares through the open market, privately negotiated transactions, or other programs, subject to market conditions. This authorization has no expiration date and may be suspended at any time. During the quarterly period ended December 29, 2018, the Company repurchased approximately 1,132 thousand shares for $54 million. As of December 29, 2018, $412 million of authorized share repurchases remain available to the Company. |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Share | 3 Months Ended |
Dec. 29, 2018 | |
Basic and Diluted Net Income Per Share [Abstract] | |
Basic and Diluted Net Income Per Share | 14. Basic and Diluted Net Income Per Share Basic net income per share is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income per share is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method and the if-converted method. For purposes of this calculation, stock options are considered to be common stock equivalents and are only included in the calculation of diluted net income per share when their effect is dilutive. For the three months ended December 29, 2018, 3 million shares were excluded from the diluted net income per share calculation as their effect would be anti-dilutive. The following tables provide a reconciliation of the numerator and denominator of the basic and diluted net income per share calculations: Quarterly Period Ended (in millions, except per share amounts) December 29, 2018 December 30, 2017 Numerator Consolidated net income $ 88 $ 163 Denominator Weighted average common shares outstanding - basic 131.1 131.0 Dilutive shares 2.7 5.0 Weighted average common and common equivalent shares outstanding - diluted 133.8 136.0 Per common share income Basic $ 0.67 $ 1.24 Diluted $ 0.66 $ 1.20 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 15. Accumulated Other Comprehensive Loss The components and activity of Accumulated other comprehensive loss are as follows: Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at September 29, 2018 $ (175 ) $ (13 ) $ 32 $ (156 ) Other comprehensive income (loss) before reclassifications (4 ) — (22 ) (26 ) Net amount reclassified from accumulated other comprehensive income (loss) — — (2 ) (2 ) Provision for income taxes — — 7 7 Balance at December 29, 2018 $ (179 ) $ (13 ) $ 15 $ (177 ) Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at September 30, 2017 $ (48 ) $ (16 ) $ (4 ) $ (68 ) Other comprehensive income (loss) before reclassifications (24 ) (1 ) 14 (11 ) Net amount reclassified from accumulated other comprehensive income (loss) — — 3 3 Provision for income taxes — — (4 ) (4 ) Balance at December 30, 2017 $ (72 ) $ (17 ) $ 9 $ (80 ) |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 3 Months Ended |
Dec. 29, 2018 | |
Guarantor and Non-Guarantor Financial Information [Abstract] | |
Guarantor and Non-Guarantor Financial Information | 16. Guarantor and Non-Guarantor Financial Information Berry Global, Inc. (“Issuer”) has notes outstanding which are fully, jointly, severally, and unconditionally guaranteed by its parent, Berry Global Group, Inc. (for purposes of this Note, “Parent”) and substantially all of Issuer’s domestic subsidiaries. Separate narrative information or financial statements of the guarantor subsidiaries have not been included because they are 100% owned by Parent and the guarantor subsidiaries unconditionally guarantee such debt on a joint and several basis. A guarantee of a guarantor subsidiary of the securities will terminate upon the following customary circumstances: the sale of the capital stock of such guarantor if such sale complies with the indentures, the designation of such guarantor as an unrestricted subsidiary, the defeasance or discharge of the indenture or in the case of a restricted subsidiary that is required to guarantee after the relevant issuance date, if such guarantor no longer guarantees certain other indebtedness of the issuer. The guarantees of the guarantor subsidiaries are also limited as necessary to prevent them from constituting a fraudulent conveyance under applicable law and any guarantees guaranteeing subordinated debt are subordinated to certain other of the Company’s debts. Parent also guarantees the Issuer’s term loans and revolving credit facilities. The guarantor subsidiaries guarantee our term loans and are co-borrowers under our revolving credit facility. Presented below is condensed consolidating financial information for the Parent, Issuer, guarantor subsidiaries and non-guarantor subsidiaries. The Issuer and guarantor financial information includes all of our domestic operating subsidiaries; our non-guarantor subsidiaries include our foreign subsidiaries, certain immaterial domestic subsidiaries and the unrestricted subsidiaries under the Issuer’s indentures. The Parent uses the equity method to account for its ownership in the Issuer in the Condensed Consolidating Supplemental Financial Statements. The Issuer uses the equity method to account for its ownership in the guarantor and non-guarantor subsidiaries. All consolidating entries are included in the eliminations column along with the elimination of intercompany balances. Condensed Supplemental Consolidated Statements of Income Quarterly Period Ended December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 141 $ 1,377 $ 454 $ — $ 1,972 Cost of goods sold — 85 1,142 392 — 1,619 Selling, general and administrative — 13 87 24 — 124 Amortization of intangibles — — 36 6 — 42 Restructuring and impairment charges — — 7 4 — 11 Operating income — 43 105 28 — 176 Other expense (income), net — 1 1 (2 ) — — Interest expense, net — 5 45 14 — 64 Equity in net income of subsidiaries (112 ) (67 ) — — 179 — Income before income taxes 112 104 59 16 (179 ) 112 Income tax expense 24 16 — 8 (24 ) 24 Net income $ 88 $ 88 $ 59 $ 8 $ (155 ) $ 88 Comprehensive net income $ 88 $ 79 $ 59 $ (4 ) $ (155 ) $ 67 Quarterly Period Ended December 30, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 138 $ 1,225 $ 413 $ — $ 1,776 Cost of goods sold — 106 989 352 — 1,447 Selling, general and administrative — 12 80 25 — 117 Amortization of intangibles — — 31 7 — 38 Restructuring and impairment charges — — 7 4 — 11 Operating income (loss) — 20 118 25 — 163 Other income, net — 5 7 (3 ) — 9 Interest expense, net — 5 43 14 — 62 Equity in net income of subsidiaries (92 ) (72 ) — — 164 — Income before income taxes 92 82 68 14 (164 ) 92 Income tax expense (71 ) (81 ) — 10 71 (71 ) Net income $ 163 $ 163 $ 68 $ 4 $ (235 ) $ 163 Comprehensive net income $ 163 $ 160 $ 68 $ (5 ) $ (235 ) $ 151 Condensed Supplemental Consolidated Balance Sheets December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Current assets — 214 1,243 749 — 2,206 Intercompany receivable 248 1,878 — 28 (2,154 ) — Property, plant, and equipment, net — 79 1,660 718 — 2,457 Other assets 1,593 6,326 4,808 486 (8,904 ) 4,309 Total assets $ 1,841 $ 8,497 $ 7,711 $ 1,981 $ (11,058 ) $ 8,972 Current liabilities 18 248 621 292 — 1,179 Intercompany payable — — 2,154 — (2,154 ) — Other long-term liabilities 368 5,851 58 61 — 6,338 Stockholders' equity 1,455 2,398 4,878 1,628 (8,904 ) 1,455 Total liabilities and stockholders' equity $ 1,841 $ 8,497 $ 7,711 $ 1,981 $ (11,058 ) $ 8,972 September 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Current assets — 249 1,240 796 — 2,285 Intercompany receivable 296 1,907 — 49 (2,252 ) — Property, plant and equipment, net — 79 1,684 725 — 2,488 Other assets 1,544 6,247 4,849 487 (8,769 ) 4,358 Total assets $ 1,840 $ 8,482 $ 7,773 $ 2,057 $ (11,021 ) $ 9,131 Current liabilities 18 218 635 366 — 1,237 Intercompany payable — — 2,252 — (2,252 ) — Other long-term liabilities 388 5,945 68 59 — 6,460 Stockholders' equity 1,434 2,319 4,818 1,632 (8,769 ) 1,434 Total liabilities and stockholders' equity $ 1,840 $ 8,482 $ 7,773 $ 2,057 $ (11,021 ) $ 9,131 Condensed Supplemental Consolidated Statements of Cash Flows Quarterly Period Ended December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flow from Operating Activities $ — $ 55 $ 155 $ (49 ) $ — $ 161 Cash Flow from Investing Activities Additions to property, plant, and equipment — — (59 ) (16 ) — (75 ) Proceeds from sale of assets — — — — — — (Contributions) distributions to/from subsidiaries 47 (47 ) — — — — Intercompany advances (repayments) — 38 — — (38 ) — Net cash from investing activities 47 (9 ) (59 ) (16 ) (38 ) (75 ) Cash Flow from Financing Activities Repayments on long-term borrowings — (108 ) (2 ) — — (110 ) Proceeds from issuance of common stock 5 — — — — 5 Repurchase of common stock (52 ) — — — — (52 ) Payment of tax receivable agreement (16 ) — — — — (16 ) Changes in intercompany balances 16 — (93 ) 39 38 — Net cash from financing activities (47 ) (108 ) (95 ) 39 38 (173 ) Effect of exchange rate changes on cash — — — (1 ) — (1 ) Net change in cash — (62 ) 1 (27 ) — (88 ) Cash and cash equivalents at beginning of period — 133 4 244 — 381 Cash and cash equivalents at end of period $ — $ 71 $ 5 $ 217 $ — $ 293 Quarterly Period Ended December 30, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flow from Operating Activities $ — $ 35 $ 139 $ (21 ) $ — $ 153 Cash Flow from Investing Activities Additions to property, plant, and equipment — (3 ) (61 ) (30 ) — (94 ) Proceeds from sale of assets — — — 3 — 3 (Contributions) distributions to/from subsidiaries (4 ) 4 — — — — Intercompany advances (repayments) — 69 — — (69 ) — Other investing activities, net — — — — — — Net cash from investing activities (4 ) 70 (61 ) (27 ) (69 ) (91 ) Cash Flow from Financing Activities Repayments on long-term borrowings — (106 ) (2 ) — — (108 ) Proceeds from issuance of common stock 4 — — — — 4 Payment of tax receivable agreement (37 ) — — — — (37 ) Changes in intercompany balances 37 — (86 ) (20 ) 69 — Net cash from financing activities 4 (106 ) (88 ) (20 ) 69 (141 ) Effect of exchange rate changes on cash — — — 1 — 1 Net change in cash — (1 ) (10 ) (67 ) — (78 ) Cash and cash equivalents at beginning of period — 18 12 276 — 306 Cash and cash equivalents at end of period $ — $ 17 $ 2 $ 209 $ — $ 228 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 29, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Berry Global Group, Inc. ("the Company," "we," or "Berry") have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Use of Estimates | In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Certain reclassifications have been made to prior periods to conform to current reporting. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Dec. 29, 2018 | |
Recently Issued Accounting Pronouncements [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates to the FASB's Accounting Standards Codification. During fiscal 2019, with the exception of the below, there have been no developments to the recently adopted accounting pronouncements from those disclosed in the Company's 2018 Annual Report on Form 10-K that are considered to have a material impact on our unaudited consolidated financial statements. Revenue Recognition In May 2014, the FASB issued a final standard on revenue recognition. Under the new standard, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the provisions of the new standard are effective for annual reporting periods beginning after December 15, 2017 and interim periods therein. An entity can apply the new revenue standard on a full retrospective approach to each prior reporting period presented or on a modified retrospective approach with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings. The Company adopted the new standard effective for fiscal 2019 using the modified retrospective approach. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new standard, the lessee of an operating lease will be required to do the following: 1) recognize a right-of-use asset and a lease liability in the statement of financial position, 2) recognize a single lease cost allocated over the lease term generally on a straight-line basis, and 3) classify all cash payments within operating activities on the statement of cash flows. Companies are required to adopt this standard using a modified retrospective transition method. Amendments in this standard are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of this standard, which will be effective for the Company beginning fiscal 2020. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Acquisitions [Abstract] | |
Purchase Price Allocation | The following table summarizes the purchase price allocation and estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition: Working capital (a) $ 70 Property and equipment 164 Intangible assets 125 Goodwill 111 Other assets and long-term liabilities 5 (a) Includes a $3 million step up of inventory to fair value |
Restructuring and Impairment _2
Restructuring and Impairment Charges (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Restructuring and Impairment Charges [Abstract] | |
Restructuring Charges by Segment | The tables below set forth the significant components of the restructuring charges recognized, by segment: Quarterly Period Ended December 29, 2018 December 30, 2017 Consumer Packaging $ — $ 1 Health, Hygiene & Specialties 10 10 Engineered Materials 1 — Consolidated $ 11 $ 11 |
Restructuring Accrual Activity | The table below sets forth the activity with respect to the restructuring accrual at December 29, 2018: Employee Severance and Benefits Facility Exit Costs Non-cash Impairment Charges Total Balance at September 29, 2018 $ 9 4 — $ 13 Charges 3 1 7 11 Non-cash asset impairment — — (7 ) (7 ) Cash payments (6 ) (1 ) — (7 ) Balance at December 29, 2018 $ 6 4 — $ 10 |
Accrued Expenses, Other Curre_2
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | The following table sets forth the totals included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets: December 29, 2018 September 29, 2018 Employee compensation $ 106 $ 113 Accrued taxes 79 72 Rebates 64 58 Interest 43 49 Tax receivable agreement obligation 12 16 Restructuring 10 13 Accrued operating expenses 113 95 $ 427 $ 416 |
Other Long-Term Liabilities | The following table sets forth the totals included in Other long-term liabilities on the Consolidated Balance Sheets: December 29, 2018 September 29, 2018 Uncertain tax positions $ 68 $ 67 Deferred purchase price 43 40 Pension liability 42 45 Lease retirement obligation 40 39 Sale-lease back deferred gain 21 21 Transition tax 18 18 Derivative instruments 13 12 Tax receivable agreement obligation 12 23 Other 24 24 $ 281 $ 289 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Long-term debt consists of the following: Maturity Date December 29, 2018 September 29, 2018 Term loan February 2020 $ 700 $ 800 Term loan January 2021 814 814 Term loan October 2022 1,545 1,545 Term loan January 2024 493 493 Revolving line of credit May 2020 — — 5 1 / 2 May 2022 500 500 6% Second Priority Senior Secured Notes October 2022 400 400 5 1 / 8 July 2023 700 700 4 1 / 2 February 2026 500 500 Debt discounts and deferred fees (40 ) (43 ) Capital leases and other Various 125 135 Total long-term debt 5,737 5,844 Current portion of long-term debt (37 ) (38 ) Long-term debt, less current portion $ 5,700 $ 5,806 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
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: Derivatives Instruments Hedge Designation Balance Sheet Location December 29, 2018 September 29, 2018 Cross-currency swaps Designated Other long-term liabilities $ 3 $ 11 Interest rate swaps Designated Other assets 7 16 Interest rate swaps Designated Other long-term liabilities 10 — Interest rate swaps Not designated Other long-term liabilities — 1 |
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 Derivatives instruments Statement of Operations Location December 29, 2018 December 30, 2017 Foreign currency swaps Other (income) expense, net $ (4 ) $ 2 Interest rate swaps Interest expense, net (2 ) (1 ) |
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 29, 2018 and September 29, 2018, along with the impairment loss recognized on the fair value measurement during the period: As of December 29, 2018 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 2,941 2,941 — Definite lived intangible assets — — 1,054 1,054 — Property, plant, and equipment — — 2,457 2,457 7 Total $ — $ — $ 6,700 $ 6,700 $ 7 As of September 29, 2018 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 2,944 2,944 — Definite lived intangible assets — — 1,092 1,092 — Property, plant, and equipment — — 2,488 2,488 — Total $ — $ — $ 6,772 $ 6,772 $ — |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Operating Segments [Abstract] | |
Selected Information by Reportable Segment | Selected information by reportable segment is presented in the following tables: Quarterly Period Ended December 29, 2018 December 30, 2017 Net sales: Engineered Materials $ 669 $ 648 Health, Hygiene & Specialties 702 577 Consumer Packaging 601 551 Total net sales $ 1,972 $ 1,776 Operating income: Engineered Materials $ 94 $ 88 Health, Hygiene & Specialties 49 37 Consumer Packaging 33 38 Total operating income $ 176 $ 163 Depreciation and amortization: Engineered Materials $ 31 $ 29 Health, Hygiene & Specialties 54 46 Consumer Packaging 53 54 Total depreciation and amortization $ 138 $ 129 December 29, 2018 September 29, 2018 Total assets: Engineered Materials $ 1,964 $ 1,998 Health, Hygiene & Specialties 3,811 3,913 Consumer Packaging 3,197 3,220 Total assets $ 8,972 $ 9,131 Total goodwill: Engineered Materials $ 630 $ 633 Health, Hygiene & Specialties 903 902 Consumer Packaging 1,408 1,409 Total goodwill $ 2,941 $ 2,944 |
Selected Information by Geography | Selected information by geography is presented in the following tables: Quarterly Period Ended December 29, 2018 December 30, 2017 Net sales: North America $ 1,605 $ 1,466 South America 96 74 Europe 204 170 Asia 67 66 Total net sales $ 1,972 $ 1,776 December 29, 2018 September 29, 2018 Long-lived assets: North America $ 5,685 $ 5,764 South America 332 320 Europe 451 463 Asia 298 299 Total long-lived assets: $ 6,766 $ 6,846 |
Selected Information by Product Line | Selected information by product line is presented in the following tables: Quarterly Period Ended December 29, 2018 December 30, 2017 Net sales: Performance Materials 39 43 Engineered Products 61 57 Engineered Materials 100 % 100 % Health 18 19 Hygiene 52 44 Specialties 30 37 Health, Hygiene & Specialties 100 % 100 % Rigid Open Top 44 43 Rigid Closed Top 56 57 Consumer Packaging 100 % 100 % |
Basic and Diluted Net Income _2
Basic and Diluted Net Income Per Share (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Basic and Diluted Net Income Per Share [Abstract] | |
Basic and Diluted Net Income Per Share | The following tables provide a reconciliation of the numerator and denominator of the basic and diluted net income per share calculations: Quarterly Period Ended (in millions, except per share amounts) December 29, 2018 December 30, 2017 Numerator Consolidated net income $ 88 $ 163 Denominator Weighted average common shares outstanding - basic 131.1 131.0 Dilutive shares 2.7 5.0 Weighted average common and common equivalent shares outstanding - diluted 133.8 136.0 Per common share income Basic $ 0.67 $ 1.24 Diluted $ 0.66 $ 1.20 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | The components and activity of Accumulated other comprehensive loss are as follows: Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at September 29, 2018 $ (175 ) $ (13 ) $ 32 $ (156 ) Other comprehensive income (loss) before reclassifications (4 ) — (22 ) (26 ) Net amount reclassified from accumulated other comprehensive income (loss) — — (2 ) (2 ) Provision for income taxes — — 7 7 Balance at December 29, 2018 $ (179 ) $ (13 ) $ 15 $ (177 ) Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at September 30, 2017 $ (48 ) $ (16 ) $ (4 ) $ (68 ) Other comprehensive income (loss) before reclassifications (24 ) (1 ) 14 (11 ) Net amount reclassified from accumulated other comprehensive income (loss) — — 3 3 Provision for income taxes — — (4 ) (4 ) Balance at December 30, 2017 $ (72 ) $ (17 ) $ 9 $ (80 ) |
Guarantor and Non-Guarantor F_2
Guarantor and Non-Guarantor Financial Information (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Guarantor and Non-Guarantor Financial Information [Abstract] | |
Condensed Supplemental Consolidated Financial Information | Condensed Supplemental Consolidated Statements of Income Quarterly Period Ended December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 141 $ 1,377 $ 454 $ — $ 1,972 Cost of goods sold — 85 1,142 392 — 1,619 Selling, general and administrative — 13 87 24 — 124 Amortization of intangibles — — 36 6 — 42 Restructuring and impairment charges — — 7 4 — 11 Operating income — 43 105 28 — 176 Other expense (income), net — 1 1 (2 ) — — Interest expense, net — 5 45 14 — 64 Equity in net income of subsidiaries (112 ) (67 ) — — 179 — Income before income taxes 112 104 59 16 (179 ) 112 Income tax expense 24 16 — 8 (24 ) 24 Net income $ 88 $ 88 $ 59 $ 8 $ (155 ) $ 88 Comprehensive net income $ 88 $ 79 $ 59 $ (4 ) $ (155 ) $ 67 Quarterly Period Ended December 30, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 138 $ 1,225 $ 413 $ — $ 1,776 Cost of goods sold — 106 989 352 — 1,447 Selling, general and administrative — 12 80 25 — 117 Amortization of intangibles — — 31 7 — 38 Restructuring and impairment charges — — 7 4 — 11 Operating income (loss) — 20 118 25 — 163 Other income, net — 5 7 (3 ) — 9 Interest expense, net — 5 43 14 — 62 Equity in net income of subsidiaries (92 ) (72 ) — — 164 — Income before income taxes 92 82 68 14 (164 ) 92 Income tax expense (71 ) (81 ) — 10 71 (71 ) Net income $ 163 $ 163 $ 68 $ 4 $ (235 ) $ 163 Comprehensive net income $ 163 $ 160 $ 68 $ (5 ) $ (235 ) $ 151 Condensed Supplemental Consolidated Balance Sheets December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Current assets — 214 1,243 749 — 2,206 Intercompany receivable 248 1,878 — 28 (2,154 ) — Property, plant, and equipment, net — 79 1,660 718 — 2,457 Other assets 1,593 6,326 4,808 486 (8,904 ) 4,309 Total assets $ 1,841 $ 8,497 $ 7,711 $ 1,981 $ (11,058 ) $ 8,972 Current liabilities 18 248 621 292 — 1,179 Intercompany payable — — 2,154 — (2,154 ) — Other long-term liabilities 368 5,851 58 61 — 6,338 Stockholders' equity 1,455 2,398 4,878 1,628 (8,904 ) 1,455 Total liabilities and stockholders' equity $ 1,841 $ 8,497 $ 7,711 $ 1,981 $ (11,058 ) $ 8,972 September 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Current assets — 249 1,240 796 — 2,285 Intercompany receivable 296 1,907 — 49 (2,252 ) — Property, plant and equipment, net — 79 1,684 725 — 2,488 Other assets 1,544 6,247 4,849 487 (8,769 ) 4,358 Total assets $ 1,840 $ 8,482 $ 7,773 $ 2,057 $ (11,021 ) $ 9,131 Current liabilities 18 218 635 366 — 1,237 Intercompany payable — — 2,252 — (2,252 ) — Other long-term liabilities 388 5,945 68 59 — 6,460 Stockholders' equity 1,434 2,319 4,818 1,632 (8,769 ) 1,434 Total liabilities and stockholders' equity $ 1,840 $ 8,482 $ 7,773 $ 2,057 $ (11,021 ) $ 9,131 Condensed Supplemental Consolidated Statements of Cash Flows Quarterly Period Ended December 29, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flow from Operating Activities $ — $ 55 $ 155 $ (49 ) $ — $ 161 Cash Flow from Investing Activities Additions to property, plant, and equipment — — (59 ) (16 ) — (75 ) Proceeds from sale of assets — — — — — — (Contributions) distributions to/from subsidiaries 47 (47 ) — — — — Intercompany advances (repayments) — 38 — — (38 ) — Net cash from investing activities 47 (9 ) (59 ) (16 ) (38 ) (75 ) Cash Flow from Financing Activities Repayments on long-term borrowings — (108 ) (2 ) — — (110 ) Proceeds from issuance of common stock 5 — — — — 5 Repurchase of common stock (52 ) — — — — (52 ) Payment of tax receivable agreement (16 ) — — — — (16 ) Changes in intercompany balances 16 — (93 ) 39 38 — Net cash from financing activities (47 ) (108 ) (95 ) 39 38 (173 ) Effect of exchange rate changes on cash — — — (1 ) — (1 ) Net change in cash — (62 ) 1 (27 ) — (88 ) Cash and cash equivalents at beginning of period — 133 4 244 — 381 Cash and cash equivalents at end of period $ — $ 71 $ 5 $ 217 $ — $ 293 Quarterly Period Ended December 30, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flow from Operating Activities $ — $ 35 $ 139 $ (21 ) $ — $ 153 Cash Flow from Investing Activities Additions to property, plant, and equipment — (3 ) (61 ) (30 ) — (94 ) Proceeds from sale of assets — — — 3 — 3 (Contributions) distributions to/from subsidiaries (4 ) 4 — — — — Intercompany advances (repayments) — 69 — — (69 ) — Other investing activities, net — — — — — — Net cash from investing activities (4 ) 70 (61 ) (27 ) (69 ) (91 ) Cash Flow from Financing Activities Repayments on long-term borrowings — (106 ) (2 ) — — (108 ) Proceeds from issuance of common stock 4 — — — — 4 Payment of tax receivable agreement (37 ) — — — — (37 ) Changes in intercompany balances 37 — (86 ) (20 ) 69 — Net cash from financing activities 4 (106 ) (88 ) (20 ) 69 (141 ) Effect of exchange rate changes on cash — — — 1 — 1 Net change in cash — (1 ) (10 ) (67 ) — (78 ) Cash and cash equivalents at beginning of period — 18 12 276 — 306 Cash and cash equivalents at end of period $ — $ 17 $ 2 $ 209 $ — $ 228 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Revenue Recognition [Abstract] | ||
Accrual for customer rebates | $ 64 | $ 58 |
Acquisitions, Laddawn, Inc. (De
Acquisitions, Laddawn, Inc. (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Dec. 29, 2018 | Sep. 29, 2018 |
Acquisitions [Abstract] | |||
Goodwill | $ 2,941 | $ 2,944 | |
Laddawn [Member] | |||
Acquisitions [Abstract] | |||
Purchase price | $ 242 | ||
Working capital | 26 | ||
Property and equipment | 39 | ||
Intangible assets | 98 | ||
Goodwill | 79 | ||
Step up of inventory to fair value | $ 2 |
Acquisitions, Clopay Plastic Pr
Acquisitions, Clopay Plastic Products Company, Inc. (Details) - USD ($) $ in Millions | Feb. 28, 2018 | Dec. 29, 2018 | Sep. 29, 2018 | Jan. 31, 2018 | |
Allocation of Purchase Price [Abstract] | |||||
Goodwill | $ 2,941 | $ 2,944 | |||
4.50% Second Priority Senior Secured Notes due 2026 [Member] | |||||
Acquisitions [Abstract] | |||||
Face amount of debt issued | $ 500 | ||||
Interest rate | 4.50% | ||||
Clopay [Member] | |||||
Acquisitions [Abstract] | |||||
Purchase price | $ 475 | ||||
Allocation of Purchase Price [Abstract] | |||||
Working capital | [1] | 70 | |||
Property and equipment | 164 | ||||
Intangible assets | 125 | ||||
Goodwill | 111 | ||||
Other assets and long-term liabilities | 5 | ||||
Step up of inventory to fair value | $ 3 | ||||
[1] | Includes a $3 million step up of inventory to fair value. |
Accounts Receivable Factoring_2
Accounts Receivable Factoring Agreements (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Accounts Receivable Factoring Agreements [Abstract] | ||
Amounts due from financial institutions | $ 0 | $ 0 |
Trade receivables sold to financial institutions | $ 212 | $ 162 |
Restructuring and Impairment _3
Restructuring and Impairment Charges, Restructuring Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Charges [Abstract] | ||
Restructuring charges | $ 11 | $ 11 |
Consumer Packaging [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring charges | 0 | 1 |
Health, Hygiene & Specialties [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring charges | 10 | 10 |
Engineered Materials [Member] | ||
Restructuring Charges [Abstract] | ||
Restructuring charges | $ 1 | $ 0 |
Restructuring and Impairment _4
Restructuring and Impairment Charges, Restructuring Accrual Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 29, 2018 | |
Restructuring Accrual [Roll Forward] | |||
Beginning balance | $ 13 | ||
Charges | 11 | $ 11 | |
Non-cash asset impairment | (7) | $ 0 | |
Cash payments | (7) | ||
Ending balance | 10 | 13 | |
Employee Severance and Benefits [Member] | |||
Restructuring Accrual [Roll Forward] | |||
Beginning balance | 9 | ||
Charges | 3 | ||
Non-cash asset impairment | 0 | ||
Cash payments | (6) | ||
Ending balance | 6 | 9 | |
Facility Exit Costs [Member] | |||
Restructuring Accrual [Roll Forward] | |||
Beginning balance | 4 | ||
Charges | 1 | ||
Non-cash asset impairment | 0 | ||
Cash payments | (1) | ||
Ending balance | 4 | 4 | |
Non-Cash Impairment Charges [Member] | |||
Restructuring Accrual [Roll Forward] | |||
Beginning balance | 0 | ||
Charges | 7 | ||
Non-cash asset impairment | (7) | ||
Cash payments | 0 | ||
Ending balance | $ 0 | $ 0 |
Accrued Expenses, Other Curre_3
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities, Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities [Abstract] | ||
Employee compensation | $ 106 | $ 113 |
Accrued taxes | 79 | 72 |
Rebates | 64 | 58 |
Interest | 43 | 49 |
Tax receivable agreement obligation | 12 | 16 |
Restructuring | 10 | 13 |
Accrued operating expenses | 113 | 95 |
Accrued expenses and other current liabilities | $ 427 | $ 416 |
Accrued Expenses, Other Curre_4
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities, Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities [Abstract] | ||
Uncertain tax positions | $ 68 | $ 67 |
Deferred purchase price | 43 | 40 |
Pension liability | 42 | 45 |
Lease retirement obligation | 40 | 39 |
Sale-lease back deferred gain | 21 | 21 |
Transition tax | 18 | 18 |
Derivative instruments | 13 | 12 |
Tax receivable agreement obligation | 12 | 23 |
Other | 24 | 24 |
Other long-term liabilities | $ 281 | $ 289 |
Long-Term Debt, Summary of Long
Long-Term Debt, Summary of Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Sep. 29, 2018 | |
Long-term Debt [Abstract] | ||
Debt discounts and deferred fees | $ (40) | $ (43) |
Capital leases and other | 125 | 135 |
Total long-term debt | 5,737 | 5,844 |
Current portion of long-term debt | (37) | (38) |
Long-term debt, less current portion | 5,700 | 5,806 |
Term Loan due February 2020 [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt | $ 700 | 800 |
Maturity date | Feb. 29, 2020 | |
Term Loan due January 2021 [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt | $ 814 | 814 |
Maturity date | Jan. 31, 2021 | |
Term Loan due October 2022 [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt | $ 1,545 | 1,545 |
Maturity date | Oct. 31, 2022 | |
Term Loan due January 2024 [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt | $ 493 | 493 |
Maturity date | Jan. 31, 2024 | |
Revolving Line of Credit [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt | $ 0 | 0 |
Maturity date | May 31, 2020 | |
5 1/2% Second Priority Senior Secured Notes due May 2022 [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt | $ 500 | 500 |
Interest rate | 5.50% | |
Maturity date | May 31, 2022 | |
6% Second Priority Senior Secured Notes due October 2022 [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt | $ 400 | 400 |
Interest rate | 6.00% | |
Maturity date | Oct. 31, 2022 | |
5 1/8% Second Priority Senior Secured Notes due July 2023 [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt | $ 700 | 700 |
Interest rate | 5.125% | |
Maturity date | Jul. 31, 2023 | |
4 1/2% Second Priority Senior Secured Notes due February 2026 [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt | $ 500 | $ 500 |
Interest rate | 4.50% | |
Maturity date | Feb. 28, 2026 |
Long-Term Debt, Term Loans (Det
Long-Term Debt, Term Loans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Long-Term Debt [Abstract] | ||
Repayment of long-term borrowings | $ 110 | $ 108 |
Term Loan due February 2020 [Member] | LIBOR [Member] | ||
Long-Term Debt [Abstract] | ||
Basis spread on variable rate | 1.75% | |
Term Loan due January 2021 [Member] | LIBOR [Member] | ||
Long-Term Debt [Abstract] | ||
Basis spread on variable rate | 1.75% | |
Term Loan due October 2022 [Member] | LIBOR [Member] | ||
Long-Term Debt [Abstract] | ||
Basis spread on variable rate | 2.00% | |
Term Loan due January 2024 [Member] | LIBOR [Member] | ||
Long-Term Debt [Abstract] | ||
Basis spread on variable rate | 2.00% |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements, Cross-Currency and Interest Rate Swaps (Details) € in Millions, $ in Millions | 3 Months Ended | |
Dec. 29, 2018USD ($) | Dec. 29, 2018EUR (€) | |
Cross-Currency Swaps [Member] | ||
Cross-Currency and Interest Rate Swaps [Abstract] | ||
Notional amount of swap | € | € 250 | |
Interest Rate Swap - May 2017 [Member] | ||
Cross-Currency and Interest Rate Swaps [Abstract] | ||
Notional amount of swap | $ 450 | |
Fixed annual rate of swap | 2.00% | 2.00% |
Interest Rate Swap - May 2017 [Member] | LIBOR [Member] | ||
Cross-Currency and Interest Rate Swaps [Abstract] | ||
Term of variable rate | 1 month | |
Interest Rate Swap - June 2018 [Member] | ||
Cross-Currency and Interest Rate Swaps [Abstract] | ||
Notional amount of swap | $ 1,000 | |
Fixed annual rate of swap | 2.808% | 2.808% |
Interest Rate Swap - June 2018 [Member] | LIBOR [Member] | ||
Cross-Currency and Interest Rate Swaps [Abstract] | ||
Term of variable rate | 1 month |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements, Fair Value of Derivative and Location on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Cross-Currency Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 3 | $ 11 |
Interest Rate Swaps [Member] | Designated [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 7 | 16 |
Interest Rate Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 10 | 0 |
Interest Rate Swaps [Member] | Not Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 0 | $ 1 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements, Effect of Derivatives on Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative Instruments [Abstract] | ||
Amortization related to unrealized losses in Accumulated other comprehensive loss for next 12 months | $ 9 | |
Foreign Currency Swaps [Member] | Other (Income) Expense, Net [Member] | ||
Derivative Instruments [Abstract] | ||
Loss (gain) on derivative instruments | (4) | $ 2 |
Interest Rate Swaps [Member] | Interest Expense, Net [Member] | ||
Derivative Instruments [Abstract] | ||
Loss (gain) on derivative instruments | $ (2) | $ (1) |
Financial Instruments and Fai_6
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. 29, 2018 | Sep. 29, 2018 | |
Impairment [Abstract] | ||
Indefinite-lived trademarks | $ 0 | $ 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 7 | 0 |
Impairment charges | 7 | 0 |
Fair Value Adjustment [Abstract] | ||
Fair value of long-term indebtedness in excess of book value | 45 | |
Fair Value on Nonrecurring Basis [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 248 | 248 |
Goodwill | 2,941 | 2,944 |
Definite lived intangible assets | 1,054 | 1,092 |
Property, plant, and equipment | 2,457 | 2,488 |
Total | 6,700 | 6,772 |
Fair Value on Nonrecurring Basis [Member] | Level 1 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 0 | 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 0 | 0 |
Total | 0 | 0 |
Fair Value on Nonrecurring Basis [Member] | Level 2 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 0 | 0 |
Goodwill | 0 | 0 |
Definite lived intangible assets | 0 | 0 |
Property, plant, and equipment | 0 | 0 |
Total | 0 | 0 |
Fair Value on Nonrecurring Basis [Member] | Level 3 [Member] | ||
Fair Value of Assets [Abstract] | ||
Indefinite-lived trademarks | 248 | 248 |
Goodwill | 2,941 | 2,944 |
Definite lived intangible assets | 1,054 | 1,092 |
Property, plant, and equipment | 2,457 | 2,488 |
Total | $ 6,700 | $ 6,772 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Income Taxes [Abstract] | ||
Transition tax benefit | $ (95) | |
Effective tax rate | 21.00% | |
Share-based compensation excess tax benefit | (2.00%) | |
Research and development credits | (1.00%) | |
U.S. state income taxes | 4.00% |
Operating Segments, Selected In
Operating Segments, Selected Information by Reportable Segment (Details) $ in Millions | 3 Months Ended | ||
Dec. 29, 2018USD ($)Segment | Dec. 30, 2017USD ($) | Sep. 29, 2018USD ($) | |
Selected Information by Reportable Segment [Abstract] | |||
Number of reportable segments | Segment | 3 | ||
Net sales | $ 1,972 | $ 1,776 | |
Operating income | 176 | 163 | |
Depreciation and amortization | 138 | 129 | |
Total assets | 8,972 | $ 9,131 | |
Total goodwill | 2,941 | 2,944 | |
Operating Segment [Member] | Engineered Materials [Member] | |||
Selected Information by Reportable Segment [Abstract] | |||
Net sales | 669 | 648 | |
Operating income | 94 | 88 | |
Depreciation and amortization | 31 | 29 | |
Total assets | 1,964 | 1,998 | |
Total goodwill | 630 | 633 | |
Operating Segment [Member] | Health, Hygiene & Specialties [Member] | |||
Selected Information by Reportable Segment [Abstract] | |||
Net sales | 702 | 577 | |
Operating income | 49 | 37 | |
Depreciation and amortization | 54 | 46 | |
Total assets | 3,811 | 3,913 | |
Total goodwill | 903 | 902 | |
Operating Segment [Member] | Consumer Packaging [Member] | |||
Selected Information by Reportable Segment [Abstract] | |||
Net sales | 601 | 551 | |
Operating income | 33 | 38 | |
Depreciation and amortization | 53 | $ 54 | |
Total assets | 3,197 | 3,220 | |
Total goodwill | $ 1,408 | $ 1,409 |
Operating Segments, Selected _2
Operating Segments, Selected Information by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 29, 2018 | |
Selected Information by Geography [Abstract] | |||
Net sales | $ 1,972 | $ 1,776 | |
Long-lived assets | 6,766 | $ 6,846 | |
Reportable Geography [Member] | North America [Member] | |||
Selected Information by Geography [Abstract] | |||
Net sales | 1,605 | 1,466 | |
Long-lived assets | 5,685 | 5,764 | |
Reportable Geography [Member] | South America [Member] | |||
Selected Information by Geography [Abstract] | |||
Net sales | 96 | 74 | |
Long-lived assets | 332 | 320 | |
Reportable Geography [Member] | Europe [Member] | |||
Selected Information by Geography [Abstract] | |||
Net sales | 204 | 170 | |
Long-lived assets | 451 | 463 | |
Reportable Geography [Member] | Asia [Member] | |||
Selected Information by Geography [Abstract] | |||
Net sales | 67 | $ 66 | |
Long-lived assets | $ 298 | $ 299 |
Operating Segments, Selected _3
Operating Segments, Selected Information by Product Line (Details) - Net Sales [Member] | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Engineered Materials [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 100.00% | 100.00% |
Engineered Materials [Member] | Performance Materials [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 39.00% | 43.00% |
Engineered Materials [Member] | Engineered Products [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 61.00% | 57.00% |
Health, Hygiene & Specialties [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 100.00% | 100.00% |
Health, Hygiene & Specialties [Member] | Health [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 18.00% | 19.00% |
Health, Hygiene & Specialties [Member] | Hygiene [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 52.00% | 44.00% |
Health, Hygiene & Specialties [Member] | Specialties [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 30.00% | 37.00% |
Consumer Packaging [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 100.00% | 100.00% |
Consumer Packaging [Member] | Rigid Open Top [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 44.00% | 43.00% |
Consumer Packaging [Member] | Rigid Closed Top [Member] | ||
Selected Information by Product Line [Abstract] | ||
Concentration risk percentage | 56.00% | 57.00% |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Sep. 29, 2018 | |
Share Repurchase Program [Abstract] | ||
Authorized amount of share repurchase program | $ 500 | |
Number of shares repurchased and retired (in shares) | 1,132 | |
Shares repurchased and retired | $ 54 | |
Remaining amount of share repurchase program | $ 412 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Basic and Diluted Net Income Per Share [Abstract] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 3 | |
Numerator [Abstract] | ||
Consolidated net income | $ 88 | $ 163 |
Denominator [Abstract] | ||
Weighted average common shares outstanding - basic (in shares) | 131.1 | 131 |
Dilutive shares (in shares) | 2.7 | 5 |
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 133.8 | 136 |
Per Common Share Income [Abstract] | ||
Basic (in dollars per share) | $ 0.67 | $ 1.24 |
Diluted (in dollars per share) | $ 0.66 | $ 1.20 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications | $ (26) | $ (11) |
Net amount reclassified from accumulated other comprehensive income (loss) | (2) | 3 |
Provision for income taxes | 7 | (4) |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (156) | (68) |
Ending balance | (177) | (80) |
Currency Translation [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (175) | (48) |
Other comprehensive income (loss) before reclassifications | (4) | (24) |
Net amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Provision for income taxes | 0 | 0 |
Ending balance | (179) | (72) |
Defined Benefit Pension and Retiree Health Benefit Plans [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (13) | (16) |
Other comprehensive income (loss) before reclassifications | 0 | (1) |
Net amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Provision for income taxes | 0 | 0 |
Ending balance | (13) | (17) |
Interest Rate Swaps [Member] | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | 32 | (4) |
Other comprehensive income (loss) before reclassifications | (22) | 14 |
Net amount reclassified from accumulated other comprehensive income (loss) | (2) | 3 |
Provision for income taxes | 7 | (4) |
Ending balance | $ 15 | $ 9 |
Guarantor and Non-Guarantor F_3
Guarantor and Non-Guarantor Financial Information, Condensed Supplemental Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Guarantor and Non-Guarantor Financial Information [Abstract] | ||
Percentage ownership in guarantor subsidiaries | 100.00% | |
Condensed Supplemental Consolidated Statements of Operations [Abstract] | ||
Net sales | $ 1,972 | $ 1,776 |
Cost of goods sold | 1,619 | 1,447 |
Selling, general and administrative | 124 | 117 |
Amortization of intangibles | 42 | 38 |
Restructuring and impairment charges | 11 | 11 |
Operating income | 176 | 163 |
Other expense (income), net | 0 | 9 |
Interest expense, net | 64 | 62 |
Equity in net income of subsidiaries | 0 | 0 |
Income before income taxes | 112 | 92 |
Income tax expense | 24 | (71) |
Net income | 88 | 163 |
Comprehensive net income | 67 | 151 |
Eliminations [Member] | ||
Condensed Supplemental Consolidated Statements of Operations [Abstract] | ||
Net sales | 0 | 0 |
Cost of goods sold | 0 | 0 |
Selling, general and administrative | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Restructuring and impairment charges | 0 | 0 |
Operating income | 0 | 0 |
Other expense (income), net | 0 | 0 |
Interest expense, net | 0 | 0 |
Equity in net income of subsidiaries | 179 | 164 |
Income before income taxes | (179) | (164) |
Income tax expense | (24) | 71 |
Net income | (155) | (235) |
Comprehensive net income | (155) | (235) |
Parent [Member] | ||
Condensed Supplemental Consolidated Statements of Operations [Abstract] | ||
Net sales | 0 | 0 |
Cost of goods sold | 0 | 0 |
Selling, general and administrative | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Restructuring and impairment charges | 0 | 0 |
Operating income | 0 | 0 |
Other expense (income), net | 0 | 0 |
Interest expense, net | 0 | 0 |
Equity in net income of subsidiaries | (112) | (92) |
Income before income taxes | 112 | 92 |
Income tax expense | 24 | (71) |
Net income | 88 | 163 |
Comprehensive net income | 88 | 163 |
Issuer [Member] | ||
Condensed Supplemental Consolidated Statements of Operations [Abstract] | ||
Net sales | 141 | 138 |
Cost of goods sold | 85 | 106 |
Selling, general and administrative | 13 | 12 |
Amortization of intangibles | 0 | 0 |
Restructuring and impairment charges | 0 | 0 |
Operating income | 43 | 20 |
Other expense (income), net | 1 | 5 |
Interest expense, net | 5 | 5 |
Equity in net income of subsidiaries | (67) | (72) |
Income before income taxes | 104 | 82 |
Income tax expense | 16 | (81) |
Net income | 88 | 163 |
Comprehensive net income | 79 | 160 |
Guarantor Subsidiaries [Member] | ||
Condensed Supplemental Consolidated Statements of Operations [Abstract] | ||
Net sales | 1,377 | 1,225 |
Cost of goods sold | 1,142 | 989 |
Selling, general and administrative | 87 | 80 |
Amortization of intangibles | 36 | 31 |
Restructuring and impairment charges | 7 | 7 |
Operating income | 105 | 118 |
Other expense (income), net | 1 | 7 |
Interest expense, net | 45 | 43 |
Equity in net income of subsidiaries | 0 | 0 |
Income before income taxes | 59 | 68 |
Income tax expense | 0 | 0 |
Net income | 59 | 68 |
Comprehensive net income | 59 | 68 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Supplemental Consolidated Statements of Operations [Abstract] | ||
Net sales | 454 | 413 |
Cost of goods sold | 392 | 352 |
Selling, general and administrative | 24 | 25 |
Amortization of intangibles | 6 | 7 |
Restructuring and impairment charges | 4 | 4 |
Operating income | 28 | 25 |
Other expense (income), net | (2) | (3) |
Interest expense, net | 14 | 14 |
Equity in net income of subsidiaries | 0 | 0 |
Income before income taxes | 16 | 14 |
Income tax expense | 8 | 10 |
Net income | 8 | 4 |
Comprehensive net income | $ (4) | $ (5) |
Guarantor and Non-Guarantor F_4
Guarantor and Non-Guarantor Financial Information, Condensed Supplemental Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2017 |
Assets [Abstract] | ||||
Current assets | $ 2,206 | $ 2,285 | ||
Intercompany receivable | 0 | 0 | ||
Property, plant and equipment, net | 2,457 | 2,488 | ||
Other assets | 4,309 | 4,358 | ||
Total assets | 8,972 | 9,131 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 1,179 | 1,237 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 6,338 | 6,460 | ||
Stockholders' equity | 1,455 | 1,434 | $ 1,174 | $ 1,015 |
Total liabilities and stockholders' equity | 8,972 | 9,131 | ||
Eliminations [Member] | ||||
Assets [Abstract] | ||||
Current assets | 0 | 0 | ||
Intercompany receivable | (2,154) | (2,252) | ||
Property, plant and equipment, net | 0 | 0 | ||
Other assets | (8,904) | (8,769) | ||
Total assets | (11,058) | (11,021) | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 0 | 0 | ||
Intercompany payable | (2,154) | (2,252) | ||
Other long-term liabilities | 0 | 0 | ||
Stockholders' equity | (8,904) | (8,769) | ||
Total liabilities and stockholders' equity | (11,058) | (11,021) | ||
Parent [Member] | ||||
Assets [Abstract] | ||||
Current assets | 0 | 0 | ||
Intercompany receivable | 248 | 296 | ||
Property, plant and equipment, net | 0 | 0 | ||
Other assets | 1,593 | 1,544 | ||
Total assets | 1,841 | 1,840 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 18 | 18 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 368 | 388 | ||
Stockholders' equity | 1,455 | 1,434 | ||
Total liabilities and stockholders' equity | 1,841 | 1,840 | ||
Issuer [Member] | ||||
Assets [Abstract] | ||||
Current assets | 214 | 249 | ||
Intercompany receivable | 1,878 | 1,907 | ||
Property, plant and equipment, net | 79 | 79 | ||
Other assets | 6,326 | 6,247 | ||
Total assets | 8,497 | 8,482 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 248 | 218 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 5,851 | 5,945 | ||
Stockholders' equity | 2,398 | 2,319 | ||
Total liabilities and stockholders' equity | 8,497 | 8,482 | ||
Guarantor Subsidiaries [Member] | ||||
Assets [Abstract] | ||||
Current assets | 1,243 | 1,240 | ||
Intercompany receivable | 0 | 0 | ||
Property, plant and equipment, net | 1,660 | 1,684 | ||
Other assets | 4,808 | 4,849 | ||
Total assets | 7,711 | 7,773 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 621 | 635 | ||
Intercompany payable | 2,154 | 2,252 | ||
Other long-term liabilities | 58 | 68 | ||
Stockholders' equity | 4,878 | 4,818 | ||
Total liabilities and stockholders' equity | 7,711 | 7,773 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Assets [Abstract] | ||||
Current assets | 749 | 796 | ||
Intercompany receivable | 28 | 49 | ||
Property, plant and equipment, net | 718 | 725 | ||
Other assets | 486 | 487 | ||
Total assets | 1,981 | 2,057 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Current liabilities | 292 | 366 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 61 | 59 | ||
Stockholders' equity | 1,628 | 1,632 | ||
Total liabilities and stockholders' equity | $ 1,981 | $ 2,057 |
Guarantor and Non-Guarantor F_5
Guarantor and Non-Guarantor Financial Information, Condensed Supplemental Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Consolidating Statement of Cash Flows [Abstract] | ||
Cash flow from operating activities | $ 161 | $ 153 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment | (75) | (94) |
Proceeds from sale of assets | 0 | 3 |
(Contributions) distributions to/from subsidiaries | 0 | 0 |
Intercompany advances (repayments) | 0 | 0 |
Other investing activities, net | 0 | |
Net cash from investing activities | (75) | (91) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | (110) | (108) |
Proceeds from issuance of common stock | 5 | 4 |
Repurchase of common stock | (52) | 0 |
Payment of tax receivable agreement | (16) | (37) |
Changes in intercompany balances | 0 | 0 |
Net cash from financing activities | (173) | (141) |
Effect of exchange rate changes on cash | (1) | 1 |
Net change in cash | (88) | (78) |
Cash and cash equivalents at beginning of period | 381 | 306 |
Cash and cash equivalents at end of period | 293 | 228 |
Eliminations [Member] | ||
Consolidating Statement of Cash Flows [Abstract] | ||
Cash flow from operating activities | 0 | 0 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
(Contributions) distributions to/from subsidiaries | 0 | 0 |
Intercompany advances (repayments) | (38) | (69) |
Other investing activities, net | 0 | |
Net cash from investing activities | (38) | (69) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of common stock | 0 | |
Payment of tax receivable agreement | 0 | 0 |
Changes in intercompany balances | 38 | 69 |
Net cash from financing activities | 38 | 69 |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent [Member] | ||
Consolidating Statement of Cash Flows [Abstract] | ||
Cash flow from operating activities | 0 | 0 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
(Contributions) distributions to/from subsidiaries | 47 | (4) |
Intercompany advances (repayments) | 0 | 0 |
Other investing activities, net | 0 | |
Net cash from investing activities | 47 | (4) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | 0 | 0 |
Proceeds from issuance of common stock | 5 | 4 |
Repurchase of common stock | (52) | |
Payment of tax receivable agreement | (16) | (37) |
Changes in intercompany balances | 16 | 37 |
Net cash from financing activities | (47) | 4 |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Issuer [Member] | ||
Consolidating Statement of Cash Flows [Abstract] | ||
Cash flow from operating activities | 55 | 35 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment | 0 | (3) |
Proceeds from sale of assets | 0 | 0 |
(Contributions) distributions to/from subsidiaries | (47) | 4 |
Intercompany advances (repayments) | 38 | 69 |
Other investing activities, net | 0 | |
Net cash from investing activities | (9) | 70 |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | (108) | (106) |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of common stock | 0 | |
Payment of tax receivable agreement | 0 | 0 |
Changes in intercompany balances | 0 | 0 |
Net cash from financing activities | (108) | (106) |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash | (62) | (1) |
Cash and cash equivalents at beginning of period | 133 | 18 |
Cash and cash equivalents at end of period | 71 | 17 |
Guarantor Subsidiaries [Member] | ||
Consolidating Statement of Cash Flows [Abstract] | ||
Cash flow from operating activities | 155 | 139 |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment | (59) | (61) |
Proceeds from sale of assets | 0 | 0 |
(Contributions) distributions to/from subsidiaries | 0 | 0 |
Intercompany advances (repayments) | 0 | 0 |
Other investing activities, net | 0 | |
Net cash from investing activities | (59) | (61) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | (2) | (2) |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of common stock | 0 | |
Payment of tax receivable agreement | 0 | 0 |
Changes in intercompany balances | (93) | (86) |
Net cash from financing activities | (95) | (88) |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash | 1 | (10) |
Cash and cash equivalents at beginning of period | 4 | 12 |
Cash and cash equivalents at end of period | 5 | 2 |
Non-Guarantor Subsidiaries [Member] | ||
Consolidating Statement of Cash Flows [Abstract] | ||
Cash flow from operating activities | (49) | (21) |
Cash Flow from Investing Activities [Abstract] | ||
Additions to property, plant and equipment | (16) | (30) |
Proceeds from sale of assets | 0 | 3 |
(Contributions) distributions to/from subsidiaries | 0 | 0 |
Intercompany advances (repayments) | 0 | 0 |
Other investing activities, net | 0 | |
Net cash from investing activities | (16) | (27) |
Cash Flow from Financing Activities [Abstract] | ||
Repayments on long-term borrowings | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of common stock | 0 | |
Payment of tax receivable agreement | 0 | 0 |
Changes in intercompany balances | 39 | (20) |
Net cash from financing activities | 39 | (20) |
Effect of exchange rate changes on cash | (1) | 1 |
Net change in cash | (27) | (67) |
Cash and cash equivalents at beginning of period | 244 | 276 |
Cash and cash equivalents at end of period | $ 217 | $ 209 |