Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33988 | |
Entity Registrant Name | Graphic Packaging Holding Co | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0405422 | |
Entity Address, Address Line One | 1500 Riveredge Parkway, Suite 100 | |
Entity Address, City or Town | Atlanta, | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30328 | |
City Area Code | 770 | |
Local Phone Number | 240-7200 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | GPK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 307,211,015 | |
Entity Central Index Key | 0001408075 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net Sales | $ 2,392 | $ 2,358 | $ 4,830 | $ 4,603 |
Cost of Sales | 1,886 | 1,917 | 3,764 | 3,775 |
Selling, General and Administrative | 205 | 185 | 402 | 366 |
Other Expense, Net | 15 | 2 | 33 | 0 |
Business Combinations, Shutdown and Other Special Charges, and Exit Activities, Net | 19 | 102 | 34 | 117 |
Income from Operations | 267 | 152 | 597 | 345 |
Nonoperating Pension and Postretirement Benefit Income (Expense) | 0 | 1 | (1) | 3 |
Interest Expense, Net | (60) | (48) | (118) | (90) |
Income before Income Taxes | 207 | 105 | 478 | 258 |
Income Tax Expense | (57) | (39) | (121) | (85) |
Net Income | $ 150 | $ 66 | $ 357 | $ 173 |
Net Income Per Share — Basic (in dollars per share) | $ 0.49 | $ 0.21 | $ 1.16 | $ 0.56 |
Net Income Per Share — Diluted (in dollars per share) | $ 0.49 | $ 0.21 | $ 1.15 | $ 0.56 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and Cash Equivalents | $ 125 | $ 150 |
Receivables, Net | 933 | 879 |
Inventories, Net | 1,729 | 1,606 |
Other Current Assets | 114 | 71 |
Total Current Assets | 2,901 | 2,706 |
Property, Plant and Equipment, Net | 4,753 | 4,579 |
Goodwill | 2,048 | 1,979 |
Intangible Assets, Net | 693 | 717 |
Other Assets | 344 | 347 |
Total Assets | 10,739 | 10,328 |
Current Liabilities: | ||
Short-Term Debt and Current Portion of Long-Term Debt | 463 | 53 |
Accounts Payable | 996 | 1,123 |
Compensation and Employee Benefits | 195 | 295 |
Interest Payable | 59 | 51 |
Other Accrued Liabilities | 424 | 411 |
Total Current Liabilities | 2,137 | 1,933 |
Long-Term Debt | 5,046 | 5,200 |
Deferred Income Tax Liabilities | 708 | 668 |
Accrued Pension and Postretirement Benefits | 112 | 111 |
Other Noncurrent Liabilities | 286 | 266 |
SHAREHOLDERS’ EQUITY | ||
Preferred Stock, par value $0.01 per share; 100,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common Stock, par value $0.01 per share; 1,000,000,000 shares authorized; 307,202,827 and 307,116,089 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 3 | 3 |
Capital in Excess of Par Value | 2,052 | 2,054 |
Retained Earnings | 743 | 469 |
Accumulated Other Comprehensive Loss | (349) | (377) |
Total Graphic Packaging Holding Company Shareholders' Equity | 2,449 | 2,149 |
Noncontrolling Interest | 1 | 1 |
Total Equity | 2,450 | 2,150 |
Total Liabilities and Shareholders' Equity | $ 10,739 | $ 10,328 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 307,202,827 | 307,116,089 |
Common stock, shares outstanding (in shares) | 307,202,827 | 307,116,089 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND NONCONTROLLING INTEREST (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2021 | 307,103,551 | |||||
Beginning balance at Dec. 31, 2021 | $ 1,893 | $ 3 | $ 2,046 | $ 66 | $ (224) | $ 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 107 | 107 | ||||
Other Comprehensive (Loss) Income, Net of Tax: | ||||||
Derivative Instruments | 19 | 19 | ||||
Currency Translation Adjustment | (28) | (28) | ||||
Pension and Postretirement Benefit Plans | (9) | (9) | ||||
Dividends Declared | (23) | (23) | ||||
Recognition of Stock-Based Compensation, Net | (8) | (8) | ||||
Issuance of Shares for Stock-Based Awards (in shares) | 1,184,737 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 308,288,288 | |||||
Ending balance at Mar. 31, 2022 | 1,951 | $ 3 | 2,038 | 150 | (242) | 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 66 | 66 | ||||
Other Comprehensive (Loss) Income, Net of Tax: | ||||||
Derivative Instruments | (9) | (9) | ||||
Currency Translation Adjustment | (95) | (95) | ||||
Repurchase of Common Stock (in shares) | (379,000) | |||||
Repurchase of Common Stock | (7) | (2) | (5) | |||
Pension and Postretirement Benefit Plans | 1 | 1 | ||||
Dividends Declared | (23) | (23) | ||||
Recognition of Stock-Based Compensation, Net | 8 | 8 | ||||
Issuance of Shares for Stock-Based Awards (in shares) | 123,102 | |||||
Ending balance (in shares) at Jun. 30, 2022 | 308,032,390 | |||||
Ending balance at Jun. 30, 2022 | $ 1,892 | $ 3 | 2,044 | 188 | (345) | 2 |
Beginning balance (in shares) at Dec. 31, 2022 | 307,116,089 | 307,116,089 | ||||
Beginning balance at Dec. 31, 2022 | $ 2,150 | $ 3 | 2,054 | 469 | (377) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 207 | 207 | ||||
Other Comprehensive (Loss) Income, Net of Tax: | ||||||
Derivative Instruments | (5) | (5) | ||||
Currency Translation Adjustment | 25 | 24 | 1 | |||
Repurchase of Common Stock (in shares) | (1,210,000) | |||||
Repurchase of Common Stock | (29) | (7) | (22) | |||
Dividends Declared | (31) | (31) | ||||
Recognition of Stock-Based Compensation, Net | (7) | (7) | ||||
Issuance of Shares for Stock-Based Awards (in shares) | 1,221,873 | |||||
Ending balance (in shares) at Mar. 31, 2023 | 307,127,962 | |||||
Ending balance at Mar. 31, 2023 | 2,310 | $ 3 | 2,040 | 623 | (358) | 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 150 | 150 | ||||
Other Comprehensive (Loss) Income, Net of Tax: | ||||||
Derivative Instruments | 8 | 8 | ||||
Currency Translation Adjustment | (1) | |||||
Repurchase of Common Stock (in shares) | (14,232) | |||||
Repurchase of Common Stock | 0 | 0 | 0 | |||
Dividends Declared | (30) | (30) | ||||
Recognition of Stock-Based Compensation, Net | $ 12 | 12 | ||||
Issuance of Shares for Stock-Based Awards (in shares) | 89,097 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 307,202,827 | 307,202,827 | ||||
Ending balance at Jun. 30, 2023 | $ 2,450 | $ 3 | $ 2,052 | $ 743 | $ (349) | $ 1 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND NONCONTROLLING INTEREST (Unaudited) (Parenthetical) - shares shares in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Statement of Stockholders' Equity [Abstract] | ||
Shares repurchased not yet settled | 60 | 32 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Total | ||||
Net Income (Loss) | $ 150 | $ 66 | $ 357 | $ 173 |
Other Comprehensive (Loss) Income, Net of Tax: | ||||
Derivative Instruments | 8 | (9) | 3 | 10 |
Pension and Postretirement Benefit Plans | 1 | 1 | 1 | (8) |
Currency Translation Adjustment | 0 | (95) | 24 | (123) |
Total Other Comprehensive Loss, Net of Tax | 9 | (103) | 28 | (121) |
Comprehensive Income (Loss) | 159 | $ (37) | 385 | $ 52 |
Noncontrolling Interest | ||||
Net Income | 0 | 0 | ||
Pension and Postretirement Benefit Plans | 0 | 0 | ||
Currency Translation Adjustment | (1) | 0 | ||
Total Other Comprehensive Income (Loss), Net of Tax | (1) | 0 | ||
Total Comprehensive Income (Loss) | (1) | 0 | ||
Total | ||||
Pension and Postretirement Benefit Plans | 1 | 1 | ||
Currency Translation Adjustment | (1) | 24 | ||
Total Other Comprehensive Loss, Net of Tax | 8 | 28 | ||
Total Comprehensive Income (Loss) | $ 158 | $ 385 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 357 | $ 173 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 304 | 278 |
Deferred Income Taxes | 38 | 40 |
Amount of Postretirement Expense (Less) Than Funding | 0 | (5) |
Impairment Charges related to Divestiture | 7 | 92 |
Other, Net | 35 | 19 |
Changes in Operating Assets and Liabilities | (450) | (309) |
Net Cash Provided by Operating Activities | 291 | 288 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital Spending | (372) | (351) |
Packaging Machinery Spending | (13) | (10) |
Acquisition of Businesses, Net of Cash Acquired | (100) | 0 |
Beneficial Interest on Sold Receivables | 60 | 54 |
Beneficial Interest Obtained in Exchange for Proceeds | (9) | (2) |
Other, Net | (3) | (2) |
Net Cash Used in Investing Activities | (437) | (311) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of Common Stock | (29) | (7) |
Payments on Debt | (10) | (7) |
Borrowings under Revolving Credit Facilities | 2,636 | 2,517 |
Payments on Revolving Credit Facilities | (2,379) | (2,480) |
Repurchase of Common Stock related to Share-Based Payments | (20) | (17) |
Dividends Paid | (61) | (46) |
Other, Net | (6) | 10 |
Net Cash Provided by (Used In) Financing Activities | 131 | (30) |
Effect of Exchange Rate Changes on Cash | (3) | (7) |
Net Decrease in Cash and Cash Equivalents | (18) | (60) |
Cash and Cash Equivalents at Beginning of Period (includes $5 million classified as held for sale as of December 31, 2022) | 155 | 172 |
Cash and Cash Equivalents at End of Period (includes $12 million classified as held for sale as of June 30, 2023) | 137 | 112 |
Non-cash Investing Activities: | ||
Beneficial Interest Obtained in Exchange for Trade Receivables | 67 | 58 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | $ 35 | $ 14 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents as held for sale | $ 12 | $ 5 |
GENERAL INFORMATION
GENERAL INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL INFORMATION | GENERAL INFORMATION Nature of Business Graphic Packaging Holding Company (“GPHC” and, together with its subsidiaries, the “Company”) is committed to providing consumer packaging that makes a world of difference. The Company, a leading fiber-based consumer packaging provider, serves the world's most widely-recognized food, beverage, foodservice and other consumer products companies and brands. The Company operates on a global basis, is one of the largest producers of folding cartons and fiber-based foodservice products in the United States ("U.S.") and Europe, and holds leading market positions in paperboard used to produce consumer packaging solutions including coated-recycled paperboard ("CRB"), coated unbleached kraft paperboard ("CUK") and solid bleached sulfate paperboard ("SBS"). The Company’s customers include many of the world’s most widely recognized companies and brands with prominent market positions in beverage, food, foodservice, and other consumer products. The Company strives to provide its customers with innovative, fiber-based packaging solutions designed to deliver marketing and performance benefits at a competitive cost by capitalizing on its low-cost paperboard mills and global packaging network, its proprietary carton and packaging designs, and its commitment to quality, service, and environmental stewardship. The Company’s Condensed Consolidated Financial Statements include all subsidiaries in which the Company has the ability to exercise direct or indirect control over operating and financial policies. Intercompany transactions and balances are eliminated in consolidation. In the Company’s opinion, the accompanying Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the interim periods. The Company’s year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all the information required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Therefore, these Condensed Consolidated Financial Statements should be read in conjunction with the Company's 2022 Annual Report on Form 10-K for the year ended December 31, 2022. In addition, the preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates and changes in these estimates are recorded when known. Revenue Recognition The Company has two primary activities, manufacturing and the converting of paperboard for and into fiber-based consumer packaging, from which it generates revenue from contracts with customers. Revenue is disaggregated primarily by geography and type of activity as further explained in " Note 10 - Segment Information. " All reportable segments and the Australia and Pacific Rim operating segments recognize revenue under the same method, allocate transaction price using similar methods, and have similar economic factors impacting the uncertainty of revenue and related cash flows. Revenue is recognized on the Company's annual and multi-year supply contracts when the Company satisfies the performance obligation by transferring control over the product or service to a customer, which is generally based on shipping terms and passage of title under the point-in-time method of recognition. For the three months ended June 30, 2023 and 2022, the Company recognized $2,379 million and $2,353 million, respectively, of revenue from contracts with customers. For the six months ended June 30, 2023 and 2022, the Company recognized $4,807 million and $4,591 million, respectively, of revenue from contracts with customers. The transaction price allocated to each performance obligation consists of the stand-alone selling price, estimates of rebates and other sales or contract renewal incentives, and cash discounts and sales returns ("Variable Consideration") and excludes sales tax. Estimates are made for Variable Consideration based on contract terms and historical experience of actual results and are applied to the performance obligations as they are satisfied. Purchases by the Company’s principal customers are manufactured and shipped with minimal lead time, therefore performance obligations are generally satisfied shortly after manufacturing and shipment. The Company uses standard payment terms that are consistent with industry practice. The Company's contract assets consist primarily of contract renewal incentive payments to customers which are amortized over the period in which performance obligations related to the contract renewal are satisfied. As of June 30, 2023 and December 31, 2022, contract assets were $6 million and $8 million, respectively. The Company's contract liabilities consist principally of rebates, and as of June 30, 2023 and December 31, 2022 were $62 million and $65 million, respectively. Accounts Receivable and Allowances Accounts receivable are stated at the amount owed by the customer, net of an allowance for estimated uncollectible accounts, returns and allowances, and cash discounts. The allowance for doubtful accounts is estimated based on historical experience, current economic conditions and the creditworthiness of customers. Receivables are charged to the allowance when determined to be no longer collectible. The Company has entered into agreements to sell, on a revolving basis, certain trade accounts receivable to third party financial institutions. Transfers under these agreements meet the requirements to be accounted for as sales in accordance with the Transfers and Servicing topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (the "Codification"). The loss on sale is not material and is included in Other Expense, Net on the Condensed Consolidated Statements of Operations. The following table summarizes the activity under these programs for the six months ended June 30, 2023 and 2022, respectively: Six Months Ended June 30, In millions 2023 2022 Receivables Sold and Derecognized $ 1,897 $ 1,520 Proceeds Collected on Behalf of Financial Institutions 1,809 1,429 Net Proceeds Received From Financial Institutions 41 102 Deferred Purchase Price at June 30 (a) 15 8 Pledged Receivables at June 30 211 203 (a) Included in Other Current Assets on the Condensed Consolidated Balance Sheets and represents a beneficial interest in the receivables sold to the financial institutions, which is a Level 3 fair value measure. Receivables sold under all programs subject to continuing involvement, which consists principally of collection services, were $808 million and $753 million as of June 30, 2023 and December 31, 2022, respectively. The Company also participates in supply chain financing arrangements offered by certain customers that qualify for sale accounting in accordance with the Transfers and Servicing topic of the FASB Codification. For the six months ended June 30, 2023 and 2022, the Company sold receivables of $591 million and $535 million, respectively, under these arrangements. Accounts Payable and Supplier Finance Program The Company has arranged a supplier finance program ("SFP") with a financial intermediary, which provides certain suppliers the option to be paid by the financial intermediary earlier than the due date on the applicable invoice. The transactions are at the sole discretion of both the suppliers and financial institution, and GPHC is not a party to the agreements and has no economic interest in the supplier’s decision to sell a receivable. The range of payment terms negotiated by the Company with its suppliers is consistent, irrespective of whether a supplier participates in the program. The agreement with the financial intermediary does not require GPHC to provide assets pledged as security or other forms of guarantees for the supplier finance program. Amounts due to the Company’s suppliers that elected to participate in the SFP program are included in Accounts Payable on the Company’s Condensed Consolidated Balance Sheets and payments made under the SFP program are reflected in Cash Flows from Operating Activities in the Company’s Condensed Consolidated Statements of Cash Flows. Accounts payable included $33 million and $34 million payable to suppliers who elected to participate in the SFP program as of June 30, 2023 and December 31, 2022, respectively. Non-cash additions to Property, Plant and Equipment, Net included within Accounts Payable on the Company’s Condensed Consolidated Balance Sheets were $65 million and $55 million at June 30, 2023 and December 31, 2022, respectively. Share Repurchases and Dividends On February 20, 2023 and May 24, 2023, the Company's board of directors declared a regular quarterly dividend of $0.10 per share of common stock payable on April 5, 2023 and July 5, 2023 to shareholders of record as of March 15, 2023 and June 15, 2023, respectively. On January 28, 2019, the Company's board of directors authorized a share repurchase program to allow the Company to purchase up to $500 million of the Company's issued and outstanding shares of common stock through open market purchases, privately negotiated transactions and Rule 10b5-1 plans (the "2019 share repurchase program"). As of June 30, 2023, the Company has $90 million available for additional repurchases under the 2019 share repurchase program. The following table presents the Company's share repurchases for the six months ended June 30, 2023 and 2022 respectively: Amount repurchased in millions, except share and per share amounts Amount Repurchased Number of Shares Repurchased Average Price per Share 2023 $ 29 1,224,232 $ 24.07 2022 $ 7 379,000 $ 20.46 Business Combinations, Shutdown and Other Special Charges, and Exit Activities, Net The following table summarizes the transactions recorded in Business Combinations and Shutdown and Other Special Charges, Net in the Condensed Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, In millions 2023 2022 2023 2022 Charges Associated with Business Combinations (a) $ 2 $ 5 $ 2 $ 13 Shutdown and Other Special Charges (b) 8 1 8 2 Exit Activities (c) 6 4 17 10 Charges Associated with a Divestiture (d) 3 92 7 92 Total $ 19 $ 102 $ 34 $ 117 (a) These costs relate to the Americraft Carton, Inc., AR Packaging Group AB and Tama Paperboard, LLC acquisitions. (b) These costs include $7 million related to the devaluation of the Nigerian Naira in June 2023. (c) Relates to the Company's closures of its three smaller CRB mills (which includes the Tama Paperboard, LLC mill) as well as the closures of folding carton plants (see "Note 13 - Exit Activities" ). (d) Relates to the Company's planned divestiture of its Russian business (see "Note 14 - Impairment and Divestiture of Russian Business" ). 2023 On January 31, 2023, the Company completed the acquisition of Tama Paperboard, LLC ("Tama"), a CRB mill located in Tama, Iowa. The costs associated with this acquisition were less than $1 million and are included in Charges Associated with Business Combinations in the table above. For more information, see "Note 3 - Business Combinations". Subsequently, in the second quarter of 2023, the Company closed this facility. Charges associated with this project are included in Exit Activities in the table above. For more information, see "Note 13 - Exit Activities." On February 7, 2023, the Company announced an approximately $1 billion investment in a new CRB mill in Waco, Texas. In conjunction with the completion of this project, the Company expects to close two additional smaller CRB mills in order to strategically expand capacity while lowering costs. Charges associated with this project are included in Exit Activities in the table above. For more information, see "Note 13 - Exit Activities." During the second quarter of 2023, the Company announced the closure of three folding carton plants by the end of 2023. Production from these plants will be consolidated into other carton plants. Charges associated with these plant closures are included in Exit Activities in the table above. For more information, see "Note 13 - Exit Activities." 2022 In March 2022, the Company announced its decision to close the Norwalk, Ohio packaging facility and closed the facility in September 2022. Charges associated with this project are included in Exit Activities in the table above. For more information, see "Note 13 - Exit Activities." In 2022, the Company began the process of divesting its interests in its two packaging facilities in Russia (the “Disposal Group”). Impairment charges associated with this divestiture are included in the table above for the three and six months ended June 30, 2022 and 2023. For more information, see "Note 14 - Impairment and Divestiture of Russian Business." Adoption of New Accounting Standards In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , which is intended to enhance the transparency surrounding the use of supplier finance programs. Supplier finance programs may also be referred to as reverse factoring, payables finance, or structured payables arrangements. The amendments require a buyer that uses supplier finance programs to make annual disclosures about the program’s key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period, and associated rollforward information. Only the amount outstanding at the end of the period must be disclosed in interim periods. The amendments are effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods with those fiscal years, except for the requirement to disclose rollforward information, which is effective prospectively for fiscal years beginning after December 15, 2023. The Company adopted this standard in the first quarter of fiscal 2023 and did not result in any changes in accounting principle upon transition. The impact to the Company’s overall financial position and results of operations is immaterial. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method . This ASU expands and clarifies the portfolio layer method for fair value hedges of interest rate risk. The Company adopted this standard in the first quarter of fiscal 2023 with no material impact on the Company's financial position and results of operations. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities . Under the new guidance, the acquirer should determine what contract assets and/or contract liabilities it would have recorded under ASC 606 as of the acquisition date, as if the acquirer had entered into the original contract at the same date and on the same terms as the acquiree. The recognition and measurement of those contract assets and contract liabilities will likely be comparable to what the acquiree has recorded on its books under ASC 606 as of the acquisition date. The Company adopted this standard in the first quarter of fiscal 2023 with no material impact on the Company's financial position and results of operations. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions |
INVENTORIES, NET
INVENTORIES, NET | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories, Net by major class: In millions June 30, 2023 December 31, 2022 Finished Goods $ 620 $ 515 Work in Progress 206 218 Raw Materials 648 645 Supplies 255 228 Total $ 1,729 $ 1,606 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Tama Paperboard, LLC On January 31, 2023, the Company completed the acquisition of Tama Paperboard, LLC, a CRB mill located in Tama, Iowa, from Greif Packaging LLC for approximately $100 million, using existing cash and borrowings under its revolving credit facility. During the second quarter of 2023, the Company finalized the acquisition accounting adjustments for Tama and the purchase price has been allocated to assets acquired and liabilities assumed based on the fair values as of the acquisition date. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, which is expected to be deductible for tax purposes, and is reported within the Paperboard Mills reportable segment. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Short-Term Debt and Current Portion of Long-Term Debt is comprised of the following: In millions June 30, 2023 December 31, 2022 Short-Term Borrowings $ 18 $ 16 Current Portion of Finance Lease Obligations 9 11 Current Portion of Long-Term Debt (a) 436 26 Total Short-Term Debt and Current Portion of Long-Term Debt $ 463 $ 53 (a) Includes the 0.821% Senior Notes due 2024. Long-Term Debt is comprised of the following: In millions June 30, 2023 December 31, 2022 Senior Notes with interest payable semi-annually at 0.821%, effective rate of 0.82%, payable in 2024 (a) $ 400 $ 400 Senior Notes with interest payable semi-annually at 4.125%, effective rate of 4.14%, payable in 2024 (b) 300 300 Senior Notes with interest payable semi-annually at 1.512%, effective rate of 1.52%, payable in 2026 (a) 400 400 Senior Notes with interest payable semi-annually at 4.75%, effective rate of 4.79%, payable in 2027 (a) 300 300 Senior Notes with interest payable semi-annually at 3.50%, effective rate of 3.53%, payable in 2028 (a) 450 450 Senior Notes with interest payable semi-annually at 3.50%, effective rate of 3.54%, payable in 2029 (a) 350 350 Senior Notes (€290 million) with interest payable semi-annually at 2.625% , effective rate of 2.65%, payable in 2029 (a) 317 311 Senior Notes with interest payable semi-annually at 3.75% , effective rate of 3.79%, payable in 2030 (a) 400 400 Green Bond, net of unamortized premium with interest payable at 4.00%, effective rate of 1.72%, payable in 2026 (a) 107 108 Senior Secured Term Loan A-2 Facility with interest payable quarterly at 2.67%, effective rate of 2.68% payable in 2028 (a) 425 425 Senior Secured Term Loan A-3 Facility with interest payable monthly payable at floating rates (6.57% at June 30, 2023), effective rate of 6.60%, payable in 2028 (a) 250 250 Senior Secured Term Loan Facilities with interest payable at various dates at floating rates (6.33% at June 30, 2023) payable through 2026 (a) 523 529 Senior Secured Term Loan Facility (€210 million) with interest payable at various dates at floating rates (4.59% at June 30, 2023) payable through 2026 (a) 226 225 Senior Secured Revolving Credit Facilities with interest payable at floating rates (6.62% at June 30, 2023) payable in 2026 (a)(c) 891 634 Finance Leases and Financing Obligations 165 170 Other 13 15 Total Long-Term Debt Including Current Portion 5,517 5,267 Less: Current Portion 445 37 Total Long-term Debt Excluding Current Portion 5,072 5,230 Less: Unamortized Debt Deferred Issuance Costs 26 30 Total Long-Term Debt $ 5,046 $ 5,200 (a) Guaranteed by Graphic Packaging International Partners, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company ("GPIP") and certain domestic subsidiaries. (b) Guaranteed by GPHC and certain domestic subsidiaries. (c) The weighted average effective interest rates for the Company’s Senior Secured Revolving Credit Facilities were 6.31% and 3.52% as of June 30, 2023 and December 31, 2022, respectively. 2023 On February 7, 2023, Graphic Packaging International, LLC, a Delaware limited liability company and a direct subsidiary of GPIP (“GPIL”) entered into Amendment No. 3 to the Fourth Amended and Restated Credit Agreement (the “Third Amendment”). The Third Amendment provides for a future replacement floating interest rate benchmark (the Canadian Overnight Repo Rate Average “CORRA”) to take effect upon the cessation of the Canadian Dollar Offered Rate (“CDOR”) for Canadian Dollar borrowings under the domestic revolving credit facility. The Third Amendment also modified the borrowing mechanics for certain term SOFR loans under the domestic revolving line of credit. At June 30, 2023, the Company and its U.S. and international subsidiaries had the following commitments, amounts outstanding and amounts available under revolving credit facilities: In millions Total Commitments Total Outstanding Total Available (a) Senior Secured Domestic Revolving Credit Facility $ 1,850 $ 772 $ 1,056 Senior Secured International Revolving Credit Facility 197 119 78 Other International Facilities 69 31 38 Total $ 2,116 $ 922 $ 1,172 (a) In accordance with its debt agreements, the Company’s availability under its revolving credit facilities has been reduced by the amount of standby letters of credit issued of $22 million as of June 30, 2023. These letters of credit are primarily used as security against the Company's self-insurance obligations and workers’ compensation obligations. These letters of credit expire at various dates through 2023 unless extended. Covenant Agreements The Covenants in the Company's Fourth Amended and Restated Credit Agreement (as amended, the "Current Credit Agreement") and the indentures governing the 0.821% Senior Notes due 2024, 4.125% Senior Notes due 2024, 1.512% Senior Notes due 2026, 4.75% Senior Notes due 2027, 3.50% Senior Notes due 2028, 3.50% Senior Notes due 2029, 2.625% Senior Notes due 2029 and 3.75% Senior Notes due 2030 (the “Indentures”), limit the Company's ability to incur additional indebtedness. Additional covenants contained in the Current Credit Agreement and the Indentures may, among other things, restrict the ability of the Company to dispose of assets, incur guarantee obligations, prepay other indebtedness, repurchase stock, pay dividends and make other restricted payments, create liens, make equity or debt investments, make acquisitions, modify terms of the Indentures, engage in mergers or consolidations, change the business conducted by the Company and its subsidiaries, and engage in certain transactions with affiliates. Such restrictions could limit the Company’s ability to respond to changing market conditions, fund its capital spending program, provide for unexpected capital investments or take advantage of business opportunities. As of June 30, 2023, the Company was in compliance with the covenants in the Current Credit Agreement and the Indentures. |
STOCK INCENTIVE PLANS
STOCK INCENTIVE PLANS | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK INCENTIVE PLANS | STOCK INCENTIVE PLANS The Company has one active equity compensation plan from which new grants may be made, the Graphic Packaging Holding Company 2014 Omnibus Stock and Incentive Compensation Plan (the “2014 Plan”). The 2014 Plan allows for granting shares of stock, options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and other types of stock-based and cash awards. Awards under the 2014 Plan vest and expire in accordance with terms established at the time of grant. Shares issued pursuant to awards under the 2014 Plan are from GPHC’s authorized but unissued shares. Compensation costs are recognized on a straight-line basis over the requisite service period of the award and are adjusted for actual performance for performance-based awards. As of June 30, 2023, there were 8.9 million shares remaining available to be granted under the 2014 Plan. Stock Awards, Restricted Stock and Restricted Stock Units Under the 2014 Plan and related RSU grant agreements, RSUs granted to employees generally vest and become payable in three years from date of grant. RSUs granted to employees generally contain some combination of service and performance objectives based on various financial targets and relative total shareholder return that must be met for the RSUs to vest. RSUs granted as deferred compensation for non-employee directors are fully vested but not payable until the distribution date elected by the director. Stock awards issued to non-employee directors as part of their compensation for service on the Board are unrestricted on the grant date. Data concerning RSUs and Stock Awards granted in the first six months of 2023 is as follows: Weighted Average Grant Date Fair Value Per Share RSUs — Employees and Non-Employee Directors 1,710,121 $ 23.72 Stock Awards - Board of Directors 25,588 $ 25.01 During the six months ended June 30, 2023 and 2022, $25 million and $17 million, respectively, were charged to compensation expense for stock incentive plans and such amounts are included in Selling, General and Administrative expenses in the Condensed Consolidated Statements of Operations. During the six months ended June 30, 2023 and 2022, 1.3 million and 1.2 million shares were issued, respectively. The shares issued were primarily related to RSUs granted to employees during 2020 and 2019. |
PENSIONS AND OTHER POSTRETIREME
PENSIONS AND OTHER POSTRETIREMENT BENEFITS | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
PENSIONS AND OTHER POSTRETIREMENT BENEFITS | PENSIONS AND OTHER POSTRETIREMENT BENEFITS The Company maintains both defined benefit pension plans and postretirement health care plans that provide medical and life insurance coverage to eligible salaried and hourly retired employees in North America and their dependents. The Company maintains international defined benefit pension plans which are either noncontributory or contributory and are funded in accordance with applicable local laws. Pension or termination benefits are based primarily on years of service and the employee's compensation. Pension and Postretirement Expense The pension and postretirement expenses related to the Company’s plans consisted of the following: Pension Benefits Postretirement Benefits Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, In millions 2023 2022 2023 2022 2023 2022 2023 2022 Components of Net Periodic Cost: Service Cost $ 2 $ 3 $ 4 $ 7 $ — $ — $ — $ — Interest Cost 6 3 11 6 — — — — Expected Return on Plan Assets (7) (5) (12) (11) — — — — Amortization: Actuarial Loss (Gain) 2 1 3 2 (1) — (1) — Net Periodic Cost (Benefit) $ 3 $ 2 $ 6 $ 4 $ (1) $ — $ (1) $ — Employer Contributions The Company made $4 million and $8 million of contributions to its pension plans during the first six months of 2023 and 2022, respectively. In the first quarter of 2022, the Company made a $6 million contribution to its remaining U.S. defined benefit plan by effectively utilizing the excess balance related to the U.S. defined benefit plan terminated in 2020. The Company expects to make contributions in the range of $10 million to $20 million for the full year of 2023. The Company also made postretirement health care benefit payments of $1 million during the first six months of 2023 and 2022. For the full year 2023, the Company expects to make approximately $2 million contributions to its postretirement health care plans. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT The Company enters into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments under the Derivatives and Hedging topic of the FASB Codification and those not designated as hedging instruments under this guidance. The Company uses interest rate swaps, natural gas swap contracts and forward exchange contracts. These derivative instruments are designated as cash flow hedges and, to the extent they are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings but are included in Accumulated Other Comprehensive Loss. These changes in fair value will subsequently be reclassified to earnings, contemporaneously with and offsetting changes in the related hedged exposure and presented in the same line of the income statement expected for the hedged item. For more information regarding the Company’s financial instruments and fair value measurement, see “ Note 10 - Financial Instruments, Derivatives and Hedging Activities ” and “ Note 11 - Fair Value Measurement ” of the Notes to the Consolidated Financial Statements of the Company's 2022 Annual Report on Form 10-K. Interest Rate Risk The Company uses interest rate swaps to manage interest rate risks on future interest payments caused by interest rate changes on its variable rate term loan facilities. Changes in fair value will subsequently be reclassified into earnings as a component of Interest Expense, Net as interest is incurred on amounts outstanding under the term loan facilities. The following table summarizes the Company's current interest rate swap positions as of June 30, 2023: Start End Notional Amount (In Millions) Weighted Average Interest Rate 04/03/2023 04/01/2024 $750 4.71% These derivative instruments are designated as cash flow hedges and, to the extent they are effective in offsetting the variability of the hedged cash flows, changes in the derivatives fair value are not included in current earnings but are included in Accumulated Other Comprehensive Loss. Ineffectiveness measured in the hedging relationship is recorded in earnings in the period it occurs. During the first six months of 2023, there were no amounts of ineffectiveness. Additionally, there were no amounts excluded from the measure of effectiveness. As discussed in " Note 8 - Income Taxes ", a $10 million expense was recorded in the six months ended June 30, 2022 to release the lingering tax expense remaining in Other Comprehensive Income after the settlement of interest rate swaps that occurred in January 2022. Commodity Risk To manage risks associated with future variability in cash flows and price risk attributable to purchases of natural gas, the Company enters into natural gas swap contracts to hedge prices for a designated percentage of its expected natural gas usage. Such contracts are designated as cash flow hedges. The contracts are carried at fair value with changes in fair value recognized in Accumulated Other Comprehensive Loss and resulting gain or loss reclassified into Cost of Sales concurrently with the recognition of the commodity consumed. The Company has hedged approximately 55% and 30% of its expected natural gas usage for the remainder of 2023 and 2024, respectively. During the first six months of 2023 and 2022, there were no amounts of ineffectiveness related to changes in the fair value of natural gas swap contracts. Additionally, there were no amounts excluded from the measure of effectiveness. Derivatives not Designated as Hedges The Company enters into forward exchange contracts to effectively hedge substantially all of its accounts receivables resulting from sales transactions and intercompany loans denominated in foreign currencies in order to manage risks associated with variability in cash flows that may be adversely affected by changes in exchange rates. At June 30, 2023 and December 31, 2022, multiple foreign currency forward exchange contracts existed, with maturities ranging up to three months. Those foreign currency exchange contracts outstanding at June 30, 2023 and December 31, 2022, when aggregated and measured in U.S. dollars at contractual rates at June 30, 2023 and December 31, 2022, had net notional amounts totaling $146 million and $111 million, respectively. Unrealized gains and losses resulting from these contracts are recognized in Other Expense, Net and approximately offset corresponding recognized but unrealized gains and losses on the remeasurement of these accounts receivable. Fair Value of Financial Instruments The Company’s derivative instruments are carried at fair value. The Company has determined that the inputs to the valuation of these derivative instruments are Level 2 in the fair value hierarchy. Level 2 inputs are defined as quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. The Company uses valuation techniques based on discounted cash flow analyses, which reflect the terms of the derivatives and use observable market-based inputs, including forward rates, and uses market price quotations obtained from independent derivatives brokers, corroborated with information obtained from independent pricing service providers. As of June 30, 2023, there has not been any significant impact to the fair value of the Company’s derivative liabilities due to its own credit risk. Similarly, there has not been any significant adverse impact to the Company’s derivative assets based on evaluation of the Company’s counterparties’ credit risks. As of June 30, 2023 and December 31, 2022, the Company had commodity contract derivative liabilities, which were included in Other Accrued Liabilities on the Condensed Consolidated Balance Sheet of $8 million and $12 million, respectively. The fair values of the Company’s other financial assets and liabilities at June 30, 2023 and December 31, 2022 approximately equal the carrying values reported on the Condensed Consolidated Balance Sheets except for Long-Term Debt. The fair value of the Company’s Long-Term Debt (excluding finance leases and deferred financing fees) was $5,055 million and $4,749 million as compared to the carrying amounts of $5,351 million and $5,097 million as of June 30, 2023 and December 31, 2022, respectively. The fair value of the Company’s Total Debt, including the Senior Notes, is based on quoted market prices (Level 2 inputs). Level 2 valuation techniques for Long-Term Debt are based on quotations obtained from independent pricing service providers. Effect of Derivative Instruments The pre-tax effect of derivative instruments in cash flow hedging relationships on the Company’s Condensed Consolidated Statements of Operations is as follows: Amount of (Gain) Loss Recognized in Accumulated Other Comprehensive Loss Location in Statement of Operations Amount of Loss (Gain) Recognized in Statement of Operations Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In millions 2023 2022 2023 2022 2023 2022 2023 2022 Commodity Contracts $ 2 $ 6 $ 19 $ — Cost of Sales $ 9 $ (3) $ 20 $ (6) Interest Rate Swap Agreements (4) — (3) — Interest Expense, Net (1) — (1) — Total $ (2) $ 6 $ 16 $ — Total $ 8 $ (3) $ 19 $ (6) At June 30, 2023, the Company expects to reclassify $8 million of pre-tax gain in the next twelve months from Accumulated Other Comprehensive Loss to earnings, contemporaneously with and offsetting changes in the related hedged exposure. The actual amount that will be reclassified to future earnings may vary from this amount as a result of changes in market conditions. The pre-tax effect of derivative instruments not designated as hedging instruments on the Company’s Condensed Consolidated Statements of Operations is as follows: Three Months Ended June 30, Six Months Ended June 30, In millions 2023 2022 2023 2022 Foreign Currency Contracts Other Expense (Income), Net $ (1) $ (7) $ (4) $ (9) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES During the six months ended June 30, 2023, the Company recognized Income Tax Expense of $121 million on Income before Income Taxes of $478 million. The effective tax rate for the six months ended June 30, 2023 is different from the statutory rate primarily due to the tax impact of the charges associated with the planned divestiture of the Company’s operations in Russia that result in no corresponding tax benefit, a tax benefit of $2 million related to excess tax benefits on restricted stock that vested during the period, an increase in the Company’s valuation allowance against a portion of its net deferred tax assets in Sweden and the mix of earnings between foreign and domestic jurisdictions, including those with and without valuation allowances. During the six months ended June 30, 2022, the Company recognized Income Tax Expense of $85 million on Income before Income Taxes of $258 million. The effective tax rate for the six months ended June 30, 2022 was different from the statutory rate primarily due to discrete tax adjustments including tax expense of $10 million recorded to release the lingering tax expense remaining in Other Comprehensive Income after the settlement of certain swaps and a tax benefit of $2 million related to excess tax benefits on restricted stock that vested during the period. In addition, the recognition of deferred tax assets and liabilities on unrealized foreign currency activity related to intercompany loans where the entity functional currency and the loan denomination currency are different than the tax reporting currency resulted in a decrease in the effective tax rate for the period. |
ENVIRONMENTAL AND LEGAL MATTERS
ENVIRONMENTAL AND LEGAL MATTERS | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
ENVIRONMENTAL AND LEGAL MATTERS | ENVIRONMENTAL AND LEGAL MATTERS Environmental Matters The Company is subject to a broad range of foreign, federal, state and local environmental, health and safety laws and regulations, including those governing discharges to air, soil and water, the management, treatment and disposal of hazardous substances, solid waste and hazardous wastes, the investigation and remediation of contamination resulting from historical site operations and releases of hazardous substances, the recycling of packaging and the health and safety of employees. Compliance initiatives could result in significant costs, which could negatively impact the Company’s consolidated financial position, results of operations or cash flows. Any failure to comply with environmental or health and safety laws and regulations or any permits and authorizations required thereunder could subject the Company to fines, corrective action or other sanctions. Some of the Company’s current and former facilities are the subject of environmental investigations and remediations resulting from historical operations and the release of hazardous substances or other constituents. Some current and former facilities have a history of industrial usage for which investigation and remediation obligations may be imposed in the future or for which indemnification claims may be asserted against the Company. Also, closures or sales of facilities may necessitate further investigation and may result in remediation at those facilities. The Company has established reserves for those facilities or issues where a liability is probable and the costs are reasonably estimable. The Company believes that the amounts accrued for its loss contingencies, and the reasonably possible loss beyond the amounts accrued, are not material to the Company’s consolidated financial position, results of operations or cash flows. The Company cannot estimate with certainty other future compliance, investigation or remediation costs. Some costs relating to historic usage that the Company considers to be reasonably possible of resulting in liability are not quantifiable at this time. The Company will continue to monitor environmental issues at each of its facilities, as well as regulatory developments, and will revise its accruals, estimates and disclosures relating to past, present and future operations, as additional information is obtained. Legal Matters The Company is a party to a number of lawsuits arising in the ordinary conduct of its business. Although the timing and outcome of these lawsuits cannot be predicted with certainty, the Company does not believe that disposition of these lawsuits will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has three reportable segments as follows: Paperboard Mills includes the seven North American paperboard mills that produce primarily CRB, CUK, and SBS, which is consumed internally to produce paperboard consumer packaging for the Americas and Europe Packaging segments. Paperboard not consumed internally is sold externally to a wide variety of paperboard packaging converters and brokers. The Paperboard Mills segment Net Sales represent the sale of paperboard only to external customers. The effect of intercompany transfers to the paperboard packaging segments has been eliminated from the Paperboard Mills segment to reflect the economics of the integration of these segments. Americas Paperboard Packaging includes paperboard packaging, primarily folding cartons, sold primarily to consumer packaged goods ("CPG") companies, and cups, lids and food containers sold primarily to foodservice companies and quick-service restaurants ("QSR"), serving the food, beverage, and consumer product markets in the Americas. Europe Paperboard Packaging includes paperboard packaging, primarily folding cartons, sold primarily to CPG companies serving the food, beverage and consumer product markets including healthcare and beauty primarily in Europe. The Company allocates certain mill and corporate costs to the reportable segments to appropriately represent the economics of these segments. The Corporate and Other caption includes the Pacific Rim and Australia operating segments and unallocated corporate and one-time costs. These segments are evaluated by the chief operating decision maker based primarily on Income from Operations, as adjusted for depreciation and amortization. The accounting policies of the reportable segments are the same as those described above in " Note 1 - General Information. " Segment information is as follows: Three Months Ended June 30, Six Months Ended June 30, In millions 2023 2022 2023 2022 NET SALES: Paperboard Mills $ 252 $ 292 $ 568 $ 588 Americas Paperboard Packaging 1,571 1,534 3,115 2,956 Europe Paperboard Packaging 523 493 1,055 979 Corporate/Other/Eliminations (a) 46 39 92 80 Total $ 2,392 $ 2,358 $ 4,830 $ 4,603 INCOME (LOSS) FROM OPERATIONS: Paperboard Mills (b)(c) $ (33) $ (6) $ (6) $ 5 Americas Paperboard Packaging (b)(c) 274 207 543 360 Europe Paperboard Packaging (d) 21 (46) 47 (9) Corporate and Other (c) 5 (3) 13 (11) Total $ 267 $ 152 $ 597 $ 345 DEPRECIATION AND AMORTIZATION: Paperboard Mills (b) $ 86 $ 62 $ 147 $ 123 Americas Paperboard Packaging (b) 46 43 89 86 Europe Paperboard Packaging 27 28 54 57 Corporate and Other 6 6 14 12 Total $ 165 $ 139 $ 304 $ 278 (a) Includes revenue from customers for the Australia and Pacific Rim operating segments. (b) Includes accelerated depreciation related to exit activities in 2023 and 2022 (see " Note 13 - Exit Activities "). (c) Includes expenses related to business combinations, shutdown and other special charges, and exit activities (see " Note 1 - General Information "). (d) Includes impairment charges related to Russia (see " Note 14 - "Impairment and Divestiture of Russian Business "). |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Three Months Ended June 30, Six Months Ended June 30, In millions, except per share data 2023 2022 2023 2022 Net Income $ 150 $ 66 $ 357 $ 173 Weighted Average Shares: Basic 308.2 309.2 308.4 309.0 Dilutive Effect of RSUs 0.9 0.7 1.0 0.8 Diluted 309.1 309.9 309.4 309.8 Earnings Per Share — Basic $ 0.49 $ 0.21 $ 1.16 $ 0.56 Earnings Per Share — Diluted $ 0.49 $ 0.21 $ 1.15 $ 0.56 |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS The following represents changes in Accumulated Other Comprehensive Loss attributable to Graphic Packaging Holding Company by component for the six months ended June 30, 2023: In millions, net of tax Derivative Instruments Pension and Postretirement Benefit Plans Currency Translation Adjustments Total Balance at December 31, 2022 $ (4) $ (103) $ (270) $ (377) Other Comprehensive (Loss) Income before Reclassifications (11) — 24 13 Amounts Reclassified from Accumulated Other Comprehensive (Loss) (a) 14 1 — 15 Net Current-period Other Comprehensive Income 3 1 24 28 Balance at June 30, 2023 $ (1) $ (102) $ (246) $ (349) (a) See following table for details about these reclassifications. The following represents reclassifications out of Accumulated Other Comprehensive Loss for the six months ended June 30, 2023: In millions Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statement Where Net Income is Presented Derivatives Instruments: Commodity Contracts $ 20 Cost of Sales Interest Rate Swap Agreements (1) Other Expense, Net 19 Total before Tax (5) Tax (Benefit) $ 14 Total, Net of Tax Amortization of Defined Benefit Pension Plans: Actuarial Losses $ 3 (a) 3 Total before Tax (1) Tax (Benefit) $ 2 Total, Net of Tax Amortization of Postretirement Benefit Plans: Actuarial Gains $ (1) (a) $ (1) Total, Net of Tax Total Reclassifications for the Period $ 15 Total Net of Tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see “ Note 6 - Pensions and Other Postretirement Benefits "). |
EXIT ACTIVITIES
EXIT ACTIVITIES | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
EXIT ACTIVITIES | EXIT ACTIVITIES 2023 On February 7, 2023, the Company announced its plan to invest approximately $1 billion in a new CRB mill in Waco, Texas. In conjunction with this project, the Company announced the closure of three smaller CRB mills in order to strategically expand capacity while lowering costs. The costs associated with these exit activities are included in the table below for the three and six months ended June 30, 2023. In the second quarter of 2023, the Company announced its decision to accelerate the closure of one of these three CRB mills that is in Tama, Iowa and closed the facility in the second quarter of 2023. The costs associated with this closure are included in the table below for the three and six months ended June 30, 2023. During the second quarter of 2023, the Company announced the closure of three folding carton plants by the end of 2023. Production from these plants will be consolidated into other carton plants. The costs associated with these exit activities are included in the table below for the three and six months ended June 30, 2023. 2022 In March 2022, the Company announced its decision to close the Norwalk, Ohio packaging facility and closed the facility in September 2022. The Company has incurred charges associated with this exit activity for post-employment benefits, retention bonuses and incentives, which are included in the Severance Costs and Other line item in the table below for the three and six months ended June 30, 2022. During 2019, the Company announced its plans to invest in a new CRB paper machine in Kalamazoo, Michigan. At the time of the announcement, the Company expected to close two of its smaller CRB Mills in 2022 in order to remain capacity neutral. During the third quarter of 2021, the Company decided to continue to operate one of the two original smaller CRB mills. In the second quarter of 2022, the Company closed the Battle Creek, MI CRB mill. The Company has incurred charges associated with this exit activity for post-employment benefits, retention bonuses and incentives, which are included in the Severance costs and other line item in the table below for the three and six months ended June 30, 2022. During the six months ended June 30, 2023 and 2022, the Company recorded $49 million and $17 million of exit costs, respectively, associated with these restructurings. The following table summarizes the costs incurred during the three and six months ended June 30, 2023 and 2022 related to these restructurings: Three Months Ended June 30, Six Months Ended June 30, In millions Location in Statement of Operations 2023 2022 2023 2022 Severance Costs and Other (a) Business Combinations and Shutdown and Other Special Charges, Net $ 4 $ — $ 12 $ 1 Asset Write-Offs and Start-Up Costs (b) Business Combinations and Shutdown and Other Special Charges, Net 2 4 5 9 Accelerated Depreciation Cost of Sales 30 3 32 7 Total $ 36 $ 7 $ 49 $ 17 (a) Costs incurred include activities for post-employment benefits, retention bonuses, incentives and professional services (see " Note 1 - Business Combinations, Shutdown and Other Special Charges and Exit Activities, net" ). (b) Costs incurred include non-cash write-offs for items such as machinery, supplies and inventory. The following table summarizes the balance of accrued expenses related to restructuring: In millions Total Balance at December 31, 2022 $ 1 Costs Incurred 12 Payments (1) Adjustments (a) (1) Balance at June 30, 2023 $ 11 (a) Adjustments related to changes in estimates of severance costs. Due to the closure of Tama in the second quarter of 2023, the Company incurred charges for post-employment benefits, retention bonuses and incentives of $2 million, and accelerated depreciation and inventory and asset write-offs of $27 million through June 30, 2023. No further charges or accelerated depreciation are expected related to Tama. In addition, due to the expected closures of the additional two CRB mills, the Company incurred charges for post-employment benefits, retention bonuses and incentives of $8 million, and accelerated depreciation and inventory and asset write-offs of $3 million through June 30, 2023. The Company expects to incur total charges associated with these exit activities for post-employment benefits, retention bonuses and incentives in the range of $20 million to $25 million and for accelerated depreciation and inventory and asset write-offs in the range of $15 million to $20 million through 2026. Due to the expected closures of the folding carton plants, the Company incurred charges for post-employment benefits, retention bonuses and incentives of $2 million, and accelerated depreciation and inventory and asset write-offs of $2 million through June 30, 2023. The Company expects to incur total charges associated with these exit activities for post-employment benefits, retention bonuses and incentives in the range of $5 million to $10 million and for accelerated depreciation and inventory and asset write-offs in the range of $5 million to $10 million through 2023. |
IMPAIRMENT AND DIVESTITURE OF R
IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS | IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS In 2022, the Company began the process of the divesting its interests in two packaging facilities in Russia, which met the criteria to be considered a business, through a sale of 100% of the Disposal Group’s outstanding shares. The Company expects the sale to be completed in 2023. The assets and liabilities to be disposed of in connection with this transaction met the held for sale criteria as of June 30, 2023. The carrying value of the net assets held for sale, inclusive of the cumulative translation adjustment balance attributable to the business, was greater than their fair value, less costs to sell, resulting in a pre-tax cumulative loss of $91 million (including $3 million of impairment charges incurred in Q2 2023), which is included in the Business, Combinations, Shutdown and Other Special Charges, and Exit Activities, Net in the Condensed Consolidated Statement of Operations in 2022 and 2023. The assets related to the sale, inclusive of the valuation allowance, and liabilities related to the sale were classified as Other Current Assets and Other Accrued Liabilities, respectively, within the Condensed Consolidated Balance Sheet as of June 30, 2023. Excluded from the assets classified as held for sale within the Condensed Consolidated Balance Sheet is an intercompany note receivable totaling $33 million from the Company to the Disposal Group. The intercompany note will be sold as part of the transaction and, thus, should be considered when calculating the carrying value of the Disposal Group and the allowance to adjust the carrying value to the fair value less costs to sell. Upon consummation of the sale of the Disposal Group, the Company will reclassify this note from intercompany to the applicable liability line item in the Condensed Consolidated Balance Sheet as it will represent a liability to an external third party. The cumulative translation adjustment attributable to the business of $2 million is included within Accumulated Other Comprehensive Loss within the Condensed Consolidated Balance Sheet as of June 30, 2023. Goodwill totaling $12 million associated with the Disposal Group was determined to be impaired in 2022. As the sale of the Disposal Group is not considered a strategic shift that will have a major effect on the Company’s operations or financial results, it was not reported as discontinued operations. The Company will continue to evaluate the Disposal Group for future impairments until it is sold. The Disposal Group is reported within the Europe Paperboard Packaging segment. The following table summarizes the Company’s assets and liabilities held for sale by major class: In millions June 30, 2023 Cash and Cash Equivalents $ 12 Receivables, Net 14 Inventories, Net 17 Property, Plant and Equipment, Net 24 Intangible Assets, Net 15 Other Assets 1 Assets Held for Sale 83 Valuation Allowance to Adjust Carrying Value of Russian Operations to Fair Value Less Costs to Sell (91) Total Assets Held for Sale, Net Included in Other Current Assets $ (8) Accounts Payable 4 Other Accrued Liabilities 2 Deferred Income Tax Liabilities 7 Other Noncurrent Liabilities 1 Total Liabilities Held for Sale Included in Other Accrued Liabilities $ 14 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 27, 2023 the board of directors authorized a new $500 million share repurchase program. On July 28, 2023, the Company's board of directors declared a regular quarterly dividend of $0.10 per share of common stock payable on October 5, 2023 to shareholders of record as of September 15, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 150 | $ 66 | $ 357 | $ 173 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
GENERAL INFORMATION (Policies)
GENERAL INFORMATION (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | The Company’s Condensed Consolidated Financial Statements include all subsidiaries in which the Company has the ability to exercise direct or indirect control over operating and financial policies. Intercompany transactions and balances are eliminated in consolidation.In the Company’s opinion, the accompanying Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the interim periods. The Company’s year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements. |
Basis of Accounting | The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all the information required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Therefore, these Condensed Consolidated Financial Statements should be read in conjunction with the Company's 2022 Annual Report on Form 10-K for the year ended December 31, 2022. |
Use of Estimates | In addition, the preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates and changes in these estimates are recorded when known. |
Revenue Recognition | Revenue Recognition The Company has two primary activities, manufacturing and the converting of paperboard for and into fiber-based consumer packaging, from which it generates revenue from contracts with customers. Revenue is disaggregated primarily by geography and type of activity as further explained in " Note 10 - Segment Information. " All reportable segments and the Australia and Pacific Rim operating segments recognize revenue under the same method, allocate transaction price using similar methods, and have similar economic factors impacting the uncertainty of revenue and related cash flows. |
Accounts Receivable and Allowances | Accounts Receivable and Allowances Accounts receivable are stated at the amount owed by the customer, net of an allowance for estimated uncollectible accounts, returns and allowances, and cash discounts. The allowance for doubtful accounts is estimated based on historical experience, current economic conditions and the creditworthiness of customers. Receivables are charged to the allowance when determined to be no longer collectible. The Company has entered into agreements to sell, on a revolving basis, certain trade accounts receivable to third party financial institutions. Transfers under these agreements meet the requirements to be accounted for as sales in accordance with the Transfers and Servicing |
Adoption of New Accounting Standards and Accounting Standards Not Yet Adopted | Adoption of New Accounting Standards In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , which is intended to enhance the transparency surrounding the use of supplier finance programs. Supplier finance programs may also be referred to as reverse factoring, payables finance, or structured payables arrangements. The amendments require a buyer that uses supplier finance programs to make annual disclosures about the program’s key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period, and associated rollforward information. Only the amount outstanding at the end of the period must be disclosed in interim periods. The amendments are effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods with those fiscal years, except for the requirement to disclose rollforward information, which is effective prospectively for fiscal years beginning after December 15, 2023. The Company adopted this standard in the first quarter of fiscal 2023 and did not result in any changes in accounting principle upon transition. The impact to the Company’s overall financial position and results of operations is immaterial. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method . This ASU expands and clarifies the portfolio layer method for fair value hedges of interest rate risk. The Company adopted this standard in the first quarter of fiscal 2023 with no material impact on the Company's financial position and results of operations. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities . Under the new guidance, the acquirer should determine what contract assets and/or contract liabilities it would have recorded under ASC 606 as of the acquisition date, as if the acquirer had entered into the original contract at the same date and on the same terms as the acquiree. The recognition and measurement of those contract assets and contract liabilities will likely be comparable to what the acquiree has recorded on its books under ASC 606 as of the acquisition date. The Company adopted this standard in the first quarter of fiscal 2023 with no material impact on the Company's financial position and results of operations. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions |
GENERAL INFORMATION (Tables)
GENERAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Transfer of Financial Assets Accounted for as Sales | The following table summarizes the activity under these programs for the six months ended June 30, 2023 and 2022, respectively: Six Months Ended June 30, In millions 2023 2022 Receivables Sold and Derecognized $ 1,897 $ 1,520 Proceeds Collected on Behalf of Financial Institutions 1,809 1,429 Net Proceeds Received From Financial Institutions 41 102 Deferred Purchase Price at June 30 (a) 15 8 Pledged Receivables at June 30 211 203 (a) Included in Other Current Assets on the Condensed Consolidated Balance Sheets and represents a beneficial interest in the receivables sold to the financial institutions, which is a Level 3 fair value measure. |
Schedule Of Share Repurchases During The Period | The following table presents the Company's share repurchases for the six months ended June 30, 2023 and 2022 respectively: Amount repurchased in millions, except share and per share amounts Amount Repurchased Number of Shares Repurchased Average Price per Share 2023 $ 29 1,224,232 $ 24.07 2022 $ 7 379,000 $ 20.46 |
Schedule of Restructuring and Other Special Charges | The following table summarizes the transactions recorded in Business Combinations and Shutdown and Other Special Charges, Net in the Condensed Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, In millions 2023 2022 2023 2022 Charges Associated with Business Combinations (a) $ 2 $ 5 $ 2 $ 13 Shutdown and Other Special Charges (b) 8 1 8 2 Exit Activities (c) 6 4 17 10 Charges Associated with a Divestiture (d) 3 92 7 92 Total $ 19 $ 102 $ 34 $ 117 (a) These costs relate to the Americraft Carton, Inc., AR Packaging Group AB and Tama Paperboard, LLC acquisitions. (b) These costs include $7 million related to the devaluation of the Nigerian Naira in June 2023. (c) Relates to the Company's closures of its three smaller CRB mills (which includes the Tama Paperboard, LLC mill) as well as the closures of folding carton plants (see "Note 13 - Exit Activities" ). (d) Relates to the Company's planned divestiture of its Russian business (see "Note 14 - Impairment and Divestiture of Russian Business" ). |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net by Major Class | Inventories, Net by major class: In millions June 30, 2023 December 31, 2022 Finished Goods $ 620 $ 515 Work in Progress 206 218 Raw Materials 648 645 Supplies 255 228 Total $ 1,729 $ 1,606 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Short-Term Debt and Current Portion of Long-Term Debt is comprised of the following: In millions June 30, 2023 December 31, 2022 Short-Term Borrowings $ 18 $ 16 Current Portion of Finance Lease Obligations 9 11 Current Portion of Long-Term Debt (a) 436 26 Total Short-Term Debt and Current Portion of Long-Term Debt $ 463 $ 53 (a) Includes the 0.821% Senior Notes due 2024. |
Schedule of Long-term Debt Instruments | Long-Term Debt is comprised of the following: In millions June 30, 2023 December 31, 2022 Senior Notes with interest payable semi-annually at 0.821%, effective rate of 0.82%, payable in 2024 (a) $ 400 $ 400 Senior Notes with interest payable semi-annually at 4.125%, effective rate of 4.14%, payable in 2024 (b) 300 300 Senior Notes with interest payable semi-annually at 1.512%, effective rate of 1.52%, payable in 2026 (a) 400 400 Senior Notes with interest payable semi-annually at 4.75%, effective rate of 4.79%, payable in 2027 (a) 300 300 Senior Notes with interest payable semi-annually at 3.50%, effective rate of 3.53%, payable in 2028 (a) 450 450 Senior Notes with interest payable semi-annually at 3.50%, effective rate of 3.54%, payable in 2029 (a) 350 350 Senior Notes (€290 million) with interest payable semi-annually at 2.625% , effective rate of 2.65%, payable in 2029 (a) 317 311 Senior Notes with interest payable semi-annually at 3.75% , effective rate of 3.79%, payable in 2030 (a) 400 400 Green Bond, net of unamortized premium with interest payable at 4.00%, effective rate of 1.72%, payable in 2026 (a) 107 108 Senior Secured Term Loan A-2 Facility with interest payable quarterly at 2.67%, effective rate of 2.68% payable in 2028 (a) 425 425 Senior Secured Term Loan A-3 Facility with interest payable monthly payable at floating rates (6.57% at June 30, 2023), effective rate of 6.60%, payable in 2028 (a) 250 250 Senior Secured Term Loan Facilities with interest payable at various dates at floating rates (6.33% at June 30, 2023) payable through 2026 (a) 523 529 Senior Secured Term Loan Facility (€210 million) with interest payable at various dates at floating rates (4.59% at June 30, 2023) payable through 2026 (a) 226 225 Senior Secured Revolving Credit Facilities with interest payable at floating rates (6.62% at June 30, 2023) payable in 2026 (a)(c) 891 634 Finance Leases and Financing Obligations 165 170 Other 13 15 Total Long-Term Debt Including Current Portion 5,517 5,267 Less: Current Portion 445 37 Total Long-term Debt Excluding Current Portion 5,072 5,230 Less: Unamortized Debt Deferred Issuance Costs 26 30 Total Long-Term Debt $ 5,046 $ 5,200 (a) Guaranteed by Graphic Packaging International Partners, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company ("GPIP") and certain domestic subsidiaries. (b) Guaranteed by GPHC and certain domestic subsidiaries. |
Schedule of Credit Facilities | At June 30, 2023, the Company and its U.S. and international subsidiaries had the following commitments, amounts outstanding and amounts available under revolving credit facilities: In millions Total Commitments Total Outstanding Total Available (a) Senior Secured Domestic Revolving Credit Facility $ 1,850 $ 772 $ 1,056 Senior Secured International Revolving Credit Facility 197 119 78 Other International Facilities 69 31 38 Total $ 2,116 $ 922 $ 1,172 (a) In accordance with its debt agreements, the Company’s availability under its revolving credit facilities has been reduced by the amount of standby letters of credit issued of $22 million as of June 30, 2023. These letters of credit are primarily used as security against the Company's self-insurance obligations and workers’ compensation obligations. These letters of credit expire at various dates through 2023 unless extended. |
STOCK INCENTIVE PLANS (Tables)
STOCK INCENTIVE PLANS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
RSUs and Stock Awards Granted | Data concerning RSUs and Stock Awards granted in the first six months of 2023 is as follows: Weighted Average Grant Date Fair Value Per Share RSUs — Employees and Non-Employee Directors 1,710,121 $ 23.72 Stock Awards - Board of Directors 25,588 $ 25.01 |
PENSIONS AND OTHER POSTRETIRE_2
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The pension and postretirement expenses related to the Company’s plans consisted of the following: Pension Benefits Postretirement Benefits Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, In millions 2023 2022 2023 2022 2023 2022 2023 2022 Components of Net Periodic Cost: Service Cost $ 2 $ 3 $ 4 $ 7 $ — $ — $ — $ — Interest Cost 6 3 11 6 — — — — Expected Return on Plan Assets (7) (5) (12) (11) — — — — Amortization: Actuarial Loss (Gain) 2 1 3 2 (1) — (1) — Net Periodic Cost (Benefit) $ 3 $ 2 $ 6 $ 4 $ (1) $ — $ (1) $ — |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Interest Rate Swap Positions | The following table summarizes the Company's current interest rate swap positions as of June 30, 2023: Start End Notional Amount (In Millions) Weighted Average Interest Rate 04/03/2023 04/01/2024 $750 4.71% |
Effect of Derivative Instruments | The pre-tax effect of derivative instruments in cash flow hedging relationships on the Company’s Condensed Consolidated Statements of Operations is as follows: Amount of (Gain) Loss Recognized in Accumulated Other Comprehensive Loss Location in Statement of Operations Amount of Loss (Gain) Recognized in Statement of Operations Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In millions 2023 2022 2023 2022 2023 2022 2023 2022 Commodity Contracts $ 2 $ 6 $ 19 $ — Cost of Sales $ 9 $ (3) $ 20 $ (6) Interest Rate Swap Agreements (4) — (3) — Interest Expense, Net (1) — (1) — Total $ (2) $ 6 $ 16 $ — Total $ 8 $ (3) $ 19 $ (6) The pre-tax effect of derivative instruments not designated as hedging instruments on the Company’s Condensed Consolidated Statements of Operations is as follows: Three Months Ended June 30, Six Months Ended June 30, In millions 2023 2022 2023 2022 Foreign Currency Contracts Other Expense (Income), Net $ (1) $ (7) $ (4) $ (9) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information is as follows: Three Months Ended June 30, Six Months Ended June 30, In millions 2023 2022 2023 2022 NET SALES: Paperboard Mills $ 252 $ 292 $ 568 $ 588 Americas Paperboard Packaging 1,571 1,534 3,115 2,956 Europe Paperboard Packaging 523 493 1,055 979 Corporate/Other/Eliminations (a) 46 39 92 80 Total $ 2,392 $ 2,358 $ 4,830 $ 4,603 INCOME (LOSS) FROM OPERATIONS: Paperboard Mills (b)(c) $ (33) $ (6) $ (6) $ 5 Americas Paperboard Packaging (b)(c) 274 207 543 360 Europe Paperboard Packaging (d) 21 (46) 47 (9) Corporate and Other (c) 5 (3) 13 (11) Total $ 267 $ 152 $ 597 $ 345 DEPRECIATION AND AMORTIZATION: Paperboard Mills (b) $ 86 $ 62 $ 147 $ 123 Americas Paperboard Packaging (b) 46 43 89 86 Europe Paperboard Packaging 27 28 54 57 Corporate and Other 6 6 14 12 Total $ 165 $ 139 $ 304 $ 278 (a) Includes revenue from customers for the Australia and Pacific Rim operating segments. (b) Includes accelerated depreciation related to exit activities in 2023 and 2022 (see " Note 13 - Exit Activities "). (c) Includes expenses related to business combinations, shutdown and other special charges, and exit activities (see " Note 1 - General Information "). (d) Includes impairment charges related to Russia (see " Note 14 - "Impairment and Divestiture of Russian Business "). |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | Three Months Ended June 30, Six Months Ended June 30, In millions, except per share data 2023 2022 2023 2022 Net Income $ 150 $ 66 $ 357 $ 173 Weighted Average Shares: Basic 308.2 309.2 308.4 309.0 Dilutive Effect of RSUs 0.9 0.7 1.0 0.8 Diluted 309.1 309.9 309.4 309.8 Earnings Per Share — Basic $ 0.49 $ 0.21 $ 1.16 $ 0.56 Earnings Per Share — Diluted $ 0.49 $ 0.21 $ 1.15 $ 0.56 |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule Of Changes In Accumulated Other Comprehensive Loss | The following represents changes in Accumulated Other Comprehensive Loss attributable to Graphic Packaging Holding Company by component for the six months ended June 30, 2023: In millions, net of tax Derivative Instruments Pension and Postretirement Benefit Plans Currency Translation Adjustments Total Balance at December 31, 2022 $ (4) $ (103) $ (270) $ (377) Other Comprehensive (Loss) Income before Reclassifications (11) — 24 13 Amounts Reclassified from Accumulated Other Comprehensive (Loss) (a) 14 1 — 15 Net Current-period Other Comprehensive Income 3 1 24 28 Balance at June 30, 2023 $ (1) $ (102) $ (246) $ (349) (a) See following table for details about these reclassifications. |
Reclassifications Out Of AOCI | The following represents reclassifications out of Accumulated Other Comprehensive Loss for the six months ended June 30, 2023: In millions Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statement Where Net Income is Presented Derivatives Instruments: Commodity Contracts $ 20 Cost of Sales Interest Rate Swap Agreements (1) Other Expense, Net 19 Total before Tax (5) Tax (Benefit) $ 14 Total, Net of Tax Amortization of Defined Benefit Pension Plans: Actuarial Losses $ 3 (a) 3 Total before Tax (1) Tax (Benefit) $ 2 Total, Net of Tax Amortization of Postretirement Benefit Plans: Actuarial Gains $ (1) (a) $ (1) Total, Net of Tax Total Reclassifications for the Period $ 15 Total Net of Tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see “ Note 6 - Pensions and Other Postretirement Benefits "). |
EXIT ACTIVITIES (Tables)
EXIT ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the costs incurred during the three and six months ended June 30, 2023 and 2022 related to these restructurings: Three Months Ended June 30, Six Months Ended June 30, In millions Location in Statement of Operations 2023 2022 2023 2022 Severance Costs and Other (a) Business Combinations and Shutdown and Other Special Charges, Net $ 4 $ — $ 12 $ 1 Asset Write-Offs and Start-Up Costs (b) Business Combinations and Shutdown and Other Special Charges, Net 2 4 5 9 Accelerated Depreciation Cost of Sales 30 3 32 7 Total $ 36 $ 7 $ 49 $ 17 (a) Costs incurred include activities for post-employment benefits, retention bonuses, incentives and professional services (see " Note 1 - Business Combinations, Shutdown and Other Special Charges and Exit Activities, net" ). (b) Costs incurred include non-cash write-offs for items such as machinery, supplies and inventory. |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the balance of accrued expenses related to restructuring: In millions Total Balance at December 31, 2022 $ 1 Costs Incurred 12 Payments (1) Adjustments (a) (1) Balance at June 30, 2023 $ 11 (a) Adjustments related to changes in estimates of severance costs. |
IMPAIRMENT AND DIVESTITURE OF_2
IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule Of Disposal Groups, Including Discontinued Operations | The following table summarizes the Company’s assets and liabilities held for sale by major class: In millions June 30, 2023 Cash and Cash Equivalents $ 12 Receivables, Net 14 Inventories, Net 17 Property, Plant and Equipment, Net 24 Intangible Assets, Net 15 Other Assets 1 Assets Held for Sale 83 Valuation Allowance to Adjust Carrying Value of Russian Operations to Fair Value Less Costs to Sell (91) Total Assets Held for Sale, Net Included in Other Current Assets $ (8) Accounts Payable 4 Other Accrued Liabilities 2 Deferred Income Tax Liabilities 7 Other Noncurrent Liabilities 1 Total Liabilities Held for Sale Included in Other Accrued Liabilities $ 14 |
GENERAL INFORMATION - Narrative
GENERAL INFORMATION - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
May 24, 2023 $ / shares | Feb. 20, 2023 $ / shares | Feb. 07, 2023 mill | Jan. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) foldingCartonFacility | Jun. 30, 2022 foldingCartonFacility | Jun. 30, 2023 USD ($) mill | Dec. 31, 2019 mill | Dec. 31, 2022 USD ($) | Jan. 28, 2019 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Accounts payable | $ 33,000,000 | $ 33,000,000 | $ 34,000,000 | |||||||
Cash dividends declared (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | ||||||||
Number of folding carton plants | foldingCartonFacility | 3 | 2 | ||||||||
Property, Plant and Equipment | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Accounts payable | $ 65,000,000 | $ 65,000,000 | $ 55,000,000 | |||||||
Facility Closing | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Number of mills expected to be closed | mill | 3 | 3 | 2 | |||||||
Number of additional mills expected to close | mill | 2 | |||||||||
Tama Paperboard, LLC | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Acquisition related costs | $ 1,000,000 | |||||||||
Share Repurchase Program 2019 | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share repurchase program, authorized amount | $ 500,000,000 | |||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 90,000,000 | $ 90,000,000 |
GENERAL INFORMATION - Revenue R
GENERAL INFORMATION - Revenue Recognition (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) revenueGeneratingActivity | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of revenue generating activities | revenueGeneratingActivity | 2 | ||||
Net sales | $ 2,379 | $ 2,353 | $ 4,807 | $ 4,591 | |
Contract assets | 6 | 6 | $ 8 | ||
Contract liabilities | $ 62 | $ 62 | $ 65 |
GENERAL INFORMATION - Accounts
GENERAL INFORMATION - Accounts Receivable and Allowances (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Receivables Sold and Derecognized | $ 1,897 | $ 1,520 | |
Proceeds Collected on Behalf of Financial Institutions | 1,809 | 1,429 | |
Net Proceeds Received From Financial Institutions | 41 | 102 | |
Deferred Purchase Price at June 30 | 15 | 8 | |
Pledged Receivables at June 30 | 211 | 203 | |
Amount transferred subject to continuing involvement | 808 | $ 753 | |
Receivables sold | $ 591 | $ 535 |
GENERAL INFORMATION - Schedule
GENERAL INFORMATION - Schedule of Share Repurchases (Details) - Share Repurchase Program 2019 - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||
Amount Repurchased | $ 29 | $ 7 |
Number of Shares Repurchased (in shares) | 1,224,232 | 379,000 |
Average Price, per Share (in dollars per share) | $ 24.07 | $ 20.46 |
GENERAL INFORMATION - Business
GENERAL INFORMATION - Business Combinations and Shutdown and Other Special Charges, Net (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 07, 2023 mill | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) mill | Jun. 30, 2022 USD ($) | Dec. 31, 2019 mill | |
Business Acquisition [Line Items] | |||||||
Charges Associated with Business Combinations | $ 2 | $ 5 | $ 2 | $ 13 | |||
Shutdown and Other Special Charges(b) | 8 | 1 | 8 | 2 | |||
Exit Activities | 6 | 4 | 17 | 10 | |||
Charges Associated with a Divestiture | 3 | 92 | 7 | 92 | |||
Total | $ 19 | $ 102 | $ 34 | $ 117 | |||
Nigeria, Nairas | |||||||
Business Acquisition [Line Items] | |||||||
Shutdown and Other Special Charges(b) | $ (7) | ||||||
Facility Closing | |||||||
Business Acquisition [Line Items] | |||||||
Number of mills expected to be closed | mill | 3 | 3 | 2 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished Goods | $ 620 | $ 515 |
Work in Progress | 206 | 218 |
Raw Materials | 648 | 645 |
Supplies | 255 | 228 |
Total | $ 1,729 | $ 1,606 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,048 | $ 1,979 | |
Tama Paperboard, LLC | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | $ 100 |
DEBT - Short-Term Debt (Details
DEBT - Short-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Short-Term Borrowings | $ 18 | $ 16 |
Current Portion of Finance Lease Obligations | 9 | 11 |
Current Portion of Long-Term Debt(a) | 436 | 26 |
Total Short-Term Debt and Current Portion of Long-Term Debt | $ 463 | $ 53 |
DEBT - Long-Term Debt (Details)
DEBT - Long-Term Debt (Details) $ in Millions | Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |||
Long-term debt | $ 5,351 | $ 5,097 | |
Finance Leases and Financing Obligations | 165 | 170 | |
Total Long-Term Debt Including Current Portion | 5,517 | 5,267 | |
Less: Current Portion | 445 | 37 | |
Total Long-term Debt Excluding Current Portion | 5,072 | 5,230 | |
Less: Unamortized Debt Deferred Issuance Costs | 26 | 30 | |
Total Long-Term Debt | $ 5,046 | 5,200 | |
3.75% Senior Unsecured Notes due 2030 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.75% | 3.75% | |
Senior Notes | 0.821% Senior Notes Due in 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 400 | 400 | |
Stated interest rate | 0.821% | 0.821% | |
Interest rate at period end | 0.82% | 0.82% | |
Senior Notes | 4.125% Senior Notes Due in 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 300 | 300 | |
Stated interest rate | 4.125% | 4.125% | |
Interest rate at period end | 4.14% | 4.14% | |
Senior Notes | 1.512% Senior Notes Due In 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 400 | 400 | |
Stated interest rate | 1.512% | 1.512% | |
Interest rate at period end | 1.52% | 1.52% | |
Senior Notes | 4.75 % Senior Notes Due in 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 300 | 300 | |
Stated interest rate | 4.75% | 4.75% | |
Interest rate at period end | 4.79% | 4.79% | |
Senior Notes | 3.50% Senior Notes Due in 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 450 | 450 | |
Stated interest rate | 3.50% | 3.50% | |
Interest rate at period end | 3.53% | 3.53% | |
Senior Notes | 3.50% Senior Notes Due in 2029 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 350 | 350 | |
Stated interest rate | 3.50% | 3.50% | |
Interest rate at period end | 3.54% | 3.54% | |
Senior Notes | 2.625% Senior Notes Due 2029 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 317 | 311 | |
Stated interest rate | 2.625% | 2.625% | |
Interest rate at period end | 2.65% | 2.65% | |
Senior Notes | 3.75% Senior Unsecured Notes due 2030 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 400 | 400 | |
Stated interest rate | 3.75% | 3.75% | |
Interest rate at period end | 3.79% | 3.79% | |
Senior Notes | Two Point Six Two Five Percent Euro Note Due 2030 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | € | € 290,000,000 | ||
Bonds | Tax Exempt Green Bonds | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 107 | 108 | |
Stated interest rate | 4% | 4% | |
Interest rate at period end | 1.72% | 1.72% | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 523 | 529 | |
Interest rate at period end | 6.33% | 6.33% | |
Term Loan | Senior Secured Term Loan A-2 Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 425 | 425 | |
Stated interest rate | 2.67% | 2.67% | |
Interest rate at period end | 2.68% | 2.68% | |
Term Loan | Term A-3 Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 250 | 250 | |
Stated interest rate | 6.57% | 6.57% | |
Interest rate at period end | 6.60% | 6.60% | |
Term Loan | Euro Note | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 226 | 225 | |
Stated interest rate | 4.59% | 4.59% | |
Term Loan | Euro Term Loan | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | € | € 210,000,000 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 891 | $ 634 | |
Interest rate at period end | 6.31% | 6.31% | 3.52% |
Line of credit interest rate at period end | 6.62% | 6.62% | |
Other | |||
Debt Instrument [Line Items] | |||
Other | $ 13 | $ 15 |
DEBT - Credit Facilities - Comm
DEBT - Credit Facilities - Commitments, Amounts Outstanding, and Amounts Available (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
Total Commitments | $ 2,116 |
Total Outstanding | 922 |
Total Available | 1,172 |
Standby letters of credit issued | 22 |
Senior Secured Domestic Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Total Commitments | 1,850 |
Total Outstanding | 772 |
Total Available | 1,056 |
Senior Secured International Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Total Commitments | 197 |
Total Outstanding | 119 |
Total Available | 78 |
Other International Facilities | |
Line of Credit Facility [Line Items] | |
Total Commitments | 69 |
Total Outstanding | 31 |
Total Available | $ 38 |
DEBT - Additional Information (
DEBT - Additional Information (Details) | Jun. 30, 2023 |
Senior Notes with interest payable semi-annually at 0.821%, effective rate of 0.82%, payable in 2024 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 0.821% |
4.125% Senior Notes Due in 2024 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.125% |
Senior Notes with interest payable semi-annually at 1.512%, effective rate of 1.52%, payable in 2026 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 1.512% |
4.75 % Senior Notes Due in 2027 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.75% |
3.50% Senior Notes Due in 2028 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.50% |
3.50% Senior Notes Due in 2029 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.50% |
2.625% Senior Notes Due 2029 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 2.625% |
3.75% Senior Unsecured Notes due 2030 | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.75% |
3.75% Senior Unsecured Notes due 2030 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.75% |
STOCK INCENTIVE PLANS - Additio
STOCK INCENTIVE PLANS - Additional Information (Details) shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) compensationPlan shares | Jun. 30, 2022 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of active equity compensation plans | compensationPlan | 1 | |
Recognized share-based compensation expense | $ | $ 25 | $ 17 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
2014 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant (in shares) | 8.9 | |
2014 Plan | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued in period (in shares) | 1.3 | 1.2 |
STOCK INCENTIVE PLANS - RSUs an
STOCK INCENTIVE PLANS - RSUs and Stock Awards Granted (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
RSUs - Employees and Non-Employee Directors | Employees and Non-Employee Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants during period (in shares) | shares | 1,710,121 |
Weighted average grant date fair value per share (in dollars per share) | $ / shares | $ 23.72 |
Stock Awards - Board of Directors | Board Of Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants during period (in shares) | shares | 25,588 |
Weighted average grant date fair value per share (in dollars per share) | $ / shares | $ 25.01 |
PENSIONS AND OTHER POSTRETIRE_3
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Net Periodic Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension Benefits | ||||
Components of Net Periodic Cost: | ||||
Service Cost | $ 2 | $ 3 | $ 4 | $ 7 |
Interest Cost | 6 | 3 | 11 | 6 |
Expected Return on Plan Assets | (7) | (5) | (12) | (11) |
Amortization: | ||||
Actuarial Loss (Gain) | 2 | 1 | 3 | 2 |
Net Periodic Cost (Benefit) | 3 | 2 | 6 | 4 |
Postretirement Benefits | ||||
Components of Net Periodic Cost: | ||||
Service Cost | 0 | 0 | 0 | 0 |
Interest Cost | 0 | 0 | 0 | 0 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization: | ||||
Actuarial Loss (Gain) | (1) | 0 | (1) | 0 |
Net Periodic Cost (Benefit) | $ (1) | $ 0 | $ (1) | $ 0 |
PENSIONS AND OTHER POSTRETIRE_4
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2023 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company's contributions to its pension plans | $ 4 | $ 8 | ||
Contribution to defined benefit plan utilizing funds from terminated plan | $ 6 | |||
Pension Benefits | Minimum | Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions | $ 10 | |||
Pension Benefits | Maximum | Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions | 20 | |||
Postretirement Health Coverage | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit payments made | $ 1 | |||
Postretirement Health Coverage | Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions | $ 2 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT - Schedule Of Interest Rate Swap Positions (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amount | $ 750 |
Weighted Average Interest Rate | 4.71% |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2024 | Dec. 31, 2022 | |
Interest Rate Risk | |||||||
Notional amount | $ 750,000,000 | $ 750,000,000 | |||||
Income tax expense (benefit) | 57,000,000 | $ 39,000,000 | 121,000,000 | $ 85,000,000 | |||
Derivatives not Designated as Hedges | |||||||
Notional Amount | 750,000,000 | 750,000,000 | |||||
Fair Value Disclosures [Abstract] | |||||||
Fair value of long-term debt | 5,055,000,000 | 5,055,000,000 | $ 4,749,000,000 | ||||
Carrying value of long-term debt | 5,351,000,000 | $ 5,351,000,000 | $ 5,097,000,000 | ||||
Not Designated as Hedging Instrument | Maximum | |||||||
Derivatives not Designated as Hedges | |||||||
Foreign currency forward exchange contract term | 3 months | 3 months | |||||
Interest Rate Swap Agreements | |||||||
Interest Rate Risk | |||||||
Income tax expense (benefit) | 10,000,000 | ||||||
Interest Rate Swap Agreements | Designated as Hedging Instrument | Cash Flow Hedging | |||||||
Interest Rate Risk | |||||||
Amounts excluded from effectiveness | $ 0 | ||||||
Amounts excluded from the measure of effectiveness | 0 | ||||||
Commodity Risk | |||||||
Amounts excluded from effectiveness | 0 | ||||||
Amounts excluded from the measure of effectiveness | 0 | ||||||
Commodity Contracts | Cash Flow Hedging | Forecast | |||||||
Commodity Risk | |||||||
Percentage of expected natural gas usage hedged | 5,500% | 3,000% | |||||
Commodity Contracts | Designated as Hedging Instrument | Accrued Liabilities | |||||||
Fair Value Disclosures [Abstract] | |||||||
Derivative liabilities | 8,000,000 | 8,000,000 | $ 12,000,000 | ||||
Commodity Contracts | Designated as Hedging Instrument | Cash Flow Hedging | |||||||
Interest Rate Risk | |||||||
Amounts excluded from effectiveness | 0 | 0 | |||||
Amounts excluded from the measure of effectiveness | 0 | 0 | |||||
Commodity Risk | |||||||
Amounts excluded from effectiveness | 0 | 0 | |||||
Amounts excluded from the measure of effectiveness | 0 | $ 0 | |||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | |||||||
Interest Rate Risk | |||||||
Notional amount | 146,000,000 | 146,000,000 | 111,000,000 | ||||
Derivatives not Designated as Hedges | |||||||
Notional Amount | $ 146,000,000 | $ 146,000,000 | $ 111,000,000 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT - Effect of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of (Gain) Loss Recognized in Accumulated Other Comprehensive Loss | $ (2) | $ 6 | $ 16 | $ 0 |
Amount of Loss (Gain) Recognized in Statement of Operations | 8 | (3) | 19 | (6) |
Expected reclassification of pre-tax gain in the next twelve months from ACOL to earnings | 8 | |||
Commodity Contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of (Gain) Loss Recognized in Accumulated Other Comprehensive Loss | 2 | 6 | 19 | 0 |
Commodity Contracts | Cost of Sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss (Gain) Recognized in Statement of Operations | 9 | (3) | 20 | (6) |
Interest Rate Swap Agreements | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of (Gain) Loss Recognized in Accumulated Other Comprehensive Loss | (4) | 0 | (3) | 0 |
Interest Rate Swap Agreements | Interest Expense, Net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss (Gain) Recognized in Statement of Operations | (1) | 0 | (1) | 0 |
Foreign Currency Contracts | Other Expense (Income), Net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign Currency Contracts | $ (1) | $ (7) | $ (4) | $ (9) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Tax Credit Carryforward [Line Items] | ||||
Income tax expense (benefit) | $ 57 | $ 39 | $ 121 | $ 85 |
Income before income taxes | $ 207 | 105 | 478 | 258 |
Excess tax benefits on restricted stock vested during period | 2 | $ 2 | ||
Interest Rate Swap | ||||
Tax Credit Carryforward [Line Items] | ||||
Income tax expense (benefit) | $ 10 | |||
Discrete tax expense attributable to noncontrolling interest and differences between Foreign and Domestic Tax Jurisdictions | $ 10 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2023 segment paperboard_mill | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 3 |
Number of paperboard mills | paperboard_mill | 7 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,379 | $ 2,353 | $ 4,807 | $ 4,591 |
Net sales | 2,392 | 2,358 | 4,830 | 4,603 |
Income (loss) from operations | 267 | 152 | 597 | 345 |
Depreciation and amortization | 165 | 139 | 304 | 278 |
Corporate/Other/Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 46 | 39 | 92 | 80 |
Income (loss) from operations | 5 | (3) | 13 | (11) |
Depreciation and amortization | 6 | 6 | 14 | 12 |
Paperboard Mills | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 252 | 292 | 568 | 588 |
Income (loss) from operations | (33) | (6) | (6) | 5 |
Depreciation and amortization | 86 | 62 | 147 | 123 |
Americas Paperboard Packaging | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,571 | 1,534 | 3,115 | 2,956 |
Income (loss) from operations | 274 | 207 | 543 | 360 |
Depreciation and amortization | 46 | 43 | 89 | 86 |
Europe Paperboard Packaging | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 523 | 493 | 1,055 | 979 |
Income (loss) from operations | 21 | (46) | 47 | (9) |
Depreciation and amortization | $ 27 | $ 28 | $ 54 | $ 57 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net Income | $ 150 | $ 66 | $ 357 | $ 173 |
Weighted Average Shares: | ||||
Basic (shares) | 308.2 | 309.2 | 308.4 | 309 |
Dilutive Effect of RSUs (shares) | 0.9 | 0.7 | 1 | 0.8 |
Diluted (shares) | 309.1 | 309.9 | 309.4 | 309.8 |
Earnings Per Share — Basic (in dollars per share) | $ 0.49 | $ 0.21 | $ 1.16 | $ 0.56 |
Earnings Per Share — Diluted (in dollars per share) | $ 0.49 | $ 0.21 | $ 1.15 | $ 0.56 |
CHANGES IN ACCUMULATED OTHER _3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Changes in AOCI (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Accumulated Other Comprehensive Loss [Roll Forward] | |
Beginning balance | $ 2,150 |
Other Comprehensive (Loss) Income before Reclassifications | 13 |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) | 15 |
Net Current-period Other Comprehensive Income | 28 |
Ending balance | 2,450 |
Derivatives Instruments: | |
Accumulated Other Comprehensive Loss [Roll Forward] | |
Beginning balance | (4) |
Other Comprehensive (Loss) Income before Reclassifications | (11) |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) | 14 |
Net Current-period Other Comprehensive Income | 3 |
Ending balance | (1) |
Pension and Postretirement Benefit Plans | |
Accumulated Other Comprehensive Loss [Roll Forward] | |
Beginning balance | (103) |
Other Comprehensive (Loss) Income before Reclassifications | 0 |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) | 1 |
Net Current-period Other Comprehensive Income | 1 |
Ending balance | (102) |
Currency Translation Adjustments | |
Accumulated Other Comprehensive Loss [Roll Forward] | |
Beginning balance | (270) |
Other Comprehensive (Loss) Income before Reclassifications | 24 |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) | 0 |
Net Current-period Other Comprehensive Income | 24 |
Currency Translation Adjustments | |
Accumulated Other Comprehensive Loss [Roll Forward] | |
Ending balance | (246) |
Total | |
Accumulated Other Comprehensive Loss [Roll Forward] | |
Beginning balance | (377) |
Ending balance | $ (349) |
CHANGES IN ACCUMULATED OTHER _4
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | $ 1,886 | $ 1,917 | $ 3,764 | $ 3,775 |
Other Expense, Net | (15) | (2) | (33) | 0 |
Income tax expense (benefit) | 57 | 39 | 121 | 85 |
Total, Net of Tax | $ (150) | $ (66) | (357) | (173) |
Interest Rate Swap Agreements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense (benefit) | $ 10 | |||
Amount Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total Reclassifications for the Period | 15 | |||
Amount Reclassified from Accumulated Other Comprehensive Loss | Derivatives Instruments: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before Tax | 19 | |||
Income tax expense (benefit) | (5) | |||
Total, Net of Tax | 14 | |||
Amount Reclassified from Accumulated Other Comprehensive Loss | Derivatives Instruments: | Commodity Contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | 20 | |||
Amount Reclassified from Accumulated Other Comprehensive Loss | Derivatives Instruments: | Interest Rate Swap Agreements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Expense, Net | (1) | |||
Amount Reclassified from Accumulated Other Comprehensive Loss | Pension and Postretirement Benefit Plans | Pension Benefits | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before Tax | 3 | |||
Income tax expense (benefit) | (1) | |||
Actuarial Losses (Gains) | 3 | |||
Total, Net of Tax | 2 | |||
Amount Reclassified from Accumulated Other Comprehensive Loss | Pension and Postretirement Benefit Plans | Other Postretirement Benefits Plan | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Actuarial Losses (Gains) | (1) | |||
Total, Net of Tax | $ (1) |
EXIT ACTIVITIES - Additional In
EXIT ACTIVITIES - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Feb. 07, 2023 USD ($) mill | Jun. 30, 2023 USD ($) foldingCartonFacility | Jun. 30, 2022 foldingCartonFacility | Sep. 30, 2021 mill | Jun. 30, 2023 USD ($) mill | Jun. 30, 2022 USD ($) | Dec. 31, 2019 mill | |
Restructuring Cost and Reserve [Line Items] | |||||||
Number of folding carton plants | foldingCartonFacility | 3 | 2 | |||||
CRB Mill | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Investments | $ 1,000 | ||||||
Folding Carton Plant | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of folding carton plants | foldingCartonFacility | 3 | ||||||
Facility Closing | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of mills expected to be closed | mill | 3 | 3 | 2 | ||||
Number of mills remaining open | mill | 1 | ||||||
Restructuring costs | $ 49 | $ 17 | |||||
Number of additional mills expected to be closed | mill | 2 | ||||||
Expected costs associated with closures associated with severance activity | $ 8 | $ 8 | |||||
Restructuring and Related Activities, Number of Mills with Accelerated Closure | mill | 1 | ||||||
Facility Closing | Minimum | CRB Mills | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 20 | ||||||
Accelerated depreciation related to plant closure | 15 | ||||||
Facility Closing | Minimum | Folding Carton Plant | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 5 | ||||||
Accelerated depreciation related to plant closure | 5 | ||||||
Facility Closing | Maximum | CRB Mills | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 25 | ||||||
Accelerated depreciation related to plant closure | 20 | ||||||
Facility Closing | Maximum | Folding Carton Plant | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 10 | ||||||
Accelerated depreciation related to plant closure | 10 | ||||||
Facility Closing | Construction in Progress | Folding Carton Plant | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Accelerated depreciation related to plant closure | 2 | ||||||
Start-Up Costs | Minimum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Start-up charges | 25 | ||||||
Start-Up Costs | Maximum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Start-up charges | 30 | ||||||
Start-Up Costs | Construction in Progress | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Start-up charges | 1 | ||||||
Start-Up Costs | Construction in Progress | CRB Mills | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 3 | ||||||
One-time Termination Benefits | Tama Closure | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 2 | ||||||
One-time Termination Benefits | Folding Carton Plant | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | $ 2 | ||||||
One-time Termination Benefits | Construction in Progress | Tama Closure | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | $ 27 |
EXIT ACTIVITIES - Restructuring
EXIT ACTIVITIES - Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total | $ 36 | $ 7 | $ 49 | $ 17 |
Business Combinations, Shutdown and Other Special Charges, and Exit Activities, Net | Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs and Other | 4 | 0 | 12 | 1 |
Asset Write-Offs and Start-Up Costs | 2 | 4 | 5 | 9 |
Cost of Sales | Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accelerated Depreciation | $ 30 | $ 3 | $ 32 | $ 7 |
EXIT ACTIVITIES - Roll Forward
EXIT ACTIVITIES - Roll Forward (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 1 |
Costs Incurred | 12 |
Payments | (1) |
Adjustments | (1) |
Ending balance | $ 11 |
IMPAIRMENT AND DIVESTITURE OF_3
IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) foldingCartonFacility | Jun. 30, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of folding carton facilities | foldingCartonFacility | 2 | ||
Disposal group’s outstanding shares (in percent) | 100% | ||
Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax loss | $ 91 | ||
Impairment charges | $ 3 | ||
Intercompany note receivable | 14 | 14 | |
Goodwill | $ 12 | ||
Discontinued Operations, Held-for-sale | Total | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cumulative translation adjustment | 2 | ||
Discontinued Operations, Held-for-sale | Notes Receivable | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Intercompany note receivable | $ 33 | $ 33 |
IMPAIRMENT AND DIVESTITURE OF_4
IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS - Summarizes of Assets and Liabilities (Details) - Discontinued Operations, Held-for-sale $ in Millions | Jun. 30, 2023 USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash and Cash Equivalents | $ 12 |
Receivables, Net | 14 |
Inventories, Net | 17 |
Property, Plant and Equipment, Net | 24 |
Intangible Assets, Net | 15 |
Other Assets | 1 |
Assets Held for Sale | 83 |
Valuation Allowance to Adjust Carrying Value of Russian Operations to Fair Value Less Costs to Sell | (91) |
Total Assets Held for Sale, Net Included in Other Current Assets | (8) |
Accounts Payable | 4 |
Other Accrued Liabilities | 2 |
Deferred Income Tax Liabilities | 7 |
Other Noncurrent Liabilities | 1 |
Total Liabilities Held for Sale Included in Other Accrued Liabilities | $ 14 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 31, 2023 | Jul. 28, 2023 | May 24, 2023 | Feb. 20, 2023 | Jul. 27, 2023 |
Subsequent Event [Line Items] | |||||
Cash Dividends Declared Per Share (in dollars per share) | $ 0.10 | $ 0.10 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash Dividends Declared Per Share (in dollars per share) | $ 0.10 | ||||
Subsequent Event | Bell Packaging Inc. | |||||
Subsequent Event [Line Items] | |||||
Total purchase consideration | $ 262.5 | ||||
Subsequent Event | Share Repurchase Program, July 27, 2023 | |||||
Subsequent Event [Line Items] | |||||
Share repurchase program, authorized amount | $ 500 |