Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7.3 | ||
Entity Common Stock, Shares Outstanding | 306,053,777 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001408075 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Atlanta, Georgia |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net Sales | $ 9,428 | $ 9,440 | $ 7,156 |
Cost of Sales | 7,311 | 7,610 | 6,085 |
Selling, General and Administrative | 805 | 774 | 528 |
Other Expense (Income), Net | 64 | 19 | (2) |
Business Combinations, Exit Activities and Other Special Charges, Net | 74 | 131 | 138 |
Income from Operations | 1,174 | 906 | 407 |
Nonoperating Pension and Postretirement Benefit (Expense) Income | (3) | 7 | 5 |
Interest Expense, Net | (239) | (197) | (123) |
Income before Income Taxes and Equity Income of Unconsolidated Entity | 932 | 716 | 289 |
Income Tax Expense | (210) | (194) | (74) |
Income before Equity Income of Unconsolidated Entity | 722 | 522 | 215 |
Equity Income of Unconsolidated Entity | 1 | 0 | 1 |
Net Income | 723 | 522 | 216 |
Net Income Attributable to Noncontrolling Interest | 0 | 0 | (12) |
Net Income Attributable to Graphic Packaging Holding Company | $ 723 | $ 522 | $ 204 |
Net Income Per Share Attributable to Graphic Packaging Holding Company — Basic (in dollars per share) | $ 2.35 | $ 1.69 | $ 0.69 |
Net Income Per Share Attributable to Graphic Packaging Holding Company — Diluted (in dollars per share) | $ 2.34 | $ 1.69 | $ 0.68 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total | |||
Net Income | $ 723 | $ 522 | $ 216 |
Other Comprehensive Income (Loss), Net of Tax | |||
Derivative Instruments | 3 | 4 | 5 |
Pension and Postretirement Benefit Plans | (4) | (9) | 45 |
Currency Translation Adjustment | 65 | (148) | (28) |
Total Other Comprehensive Income (Loss), Net of Tax | 64 | (153) | 22 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 787 | 369 | 226 |
Noncontrolling Interest | |||
Net Income | 0 | 0 | 12 |
Currency Translation Adjustment | (1) | ||
Derivative Instruments | 1 | ||
Total Other Comprehensive Loss, Net of Tax | 0 | (1) | 1 |
Total Comprehensive Income (Loss) | 0 | (1) | 13 |
Total | |||
Net Income | 723 | 522 | 204 |
Derivative Instruments | 3 | 4 | 6 |
Pension and Postretirement Benefit Plans | (4) | (9) | 45 |
Currency Translation Adjustment | 65 | (149) | (28) |
Total Other Comprehensive Income, Net of Tax | 64 | (154) | 23 |
Total Comprehensive Income | $ 787 | $ 368 | $ 239 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and Cash Equivalents | $ 162 | $ 150 |
Receivables, Net | 835 | 879 |
Inventories, Net | 1,754 | 1,606 |
Other Current Assets | 94 | 71 |
Total Current Assets | 2,845 | 2,706 |
Property, Plant and Equipment, Net | 4,992 | 4,579 |
Goodwill | 2,103 | 1,979 |
Intangible Assets, Net | 820 | 717 |
Other Assets | 415 | 347 |
Total Assets | 11,175 | 10,328 |
Current Liabilities: | ||
Short-Term Debt and Current Portion of Long-Term Debt | 764 | 53 |
Accounts Payable | 1,094 | 1,123 |
Compensation and Employee Benefits | 273 | 295 |
Interest Payable | 63 | 51 |
Other Accrued Liabilities | 395 | 411 |
Total Current Liabilities | 2,589 | 1,933 |
Long-Term Debt | 4,609 | 5,200 |
Deferred Income Tax Liabilities | 731 | 668 |
Accrued Pension and Postretirement Benefits | 104 | 111 |
Other Noncurrent Liabilities | 360 | 266 |
Commitments (Note 13) | ||
SHAREHOLDERS' EQUITY | ||
Preferred Stock, par value $.01 per share; 100,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common Stock, par value $.01 per share; 1,000,000,000 shares authorized; 306,058,815 and 307,116,089 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 3 | 3 |
Capital in Excess of Par Value | 2,062 | 2,054 |
Retained Earnings | 1,029 | 469 |
Accumulated Other Comprehensive Loss | (313) | (377) |
Total Graphic Packaging Holding Company Shareholders' Equity | 2,781 | 2,149 |
Noncontrolling Interest | 1 | 1 |
Total Equity | 2,782 | 2,150 |
Total Liabilities and Shareholders' Equity | $ 11,175 | $ 10,328 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd 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 usd 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) | 306,058,815 | 307,116,089 |
Common stock, shares, outstanding (in shares) | 306,058,815 | 307,116,089 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2020 | 267,726,373 | |||||
Beginning balance at Dec. 31, 2020 | $ 1,840 | $ 3 | $ 1,715 | $ (48) | $ (246) | $ 416 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 216 | 204 | 12 | |||
Distribution of Membership Interest | (6) | (6) | ||||
Other Comprehensive Income (Loss), Net of Tax: | ||||||
Derivative Instruments | 6 | 5 | 1 | |||
Pension and Postretirement Benefit Plans | 45 | 45 | ||||
Currency Translation Adjustment | (28) | (28) | ||||
Redemption of IP's Ownership Interest (in shares) | 38,080,072 | |||||
Redemption of IP's Ownership Interest | (104) | 319 | (423) | |||
Dividends Declared | (90) | (90) | ||||
Investment in Subsidiaries | 2 | 2 | ||||
Recognition of Stock-Based Compensation | 12 | 12 | ||||
Issuance of Shares for Stock-Based Awards (in shares) | 1,297,106 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 307,103,551 | |||||
Ending balance at Dec. 31, 2021 | 1,893 | $ 3 | 2,046 | 66 | (224) | 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 522 | 522 | 0 | |||
Other Comprehensive Income (Loss), Net of Tax: | ||||||
Derivative Instruments | 4 | 4 | ||||
Pension and Postretirement Benefit Plans | (9) | (9) | ||||
Currency Translation Adjustment | (149) | (148) | (1) | |||
Repurchase of Common Stock (in shares) | (1,315,839) | |||||
Repurchase of Common Stock | (28) | $ 0 | (8) | (20) | ||
Dividends Declared | (99) | (99) | ||||
Recognition of Stock-Based Compensation | $ 16 | 16 | ||||
Issuance of Shares for Stock-Based Awards (in shares) | 1,328,377 | |||||
Ending balance (in shares) at Dec. 31, 2022 | 307,116,089 | 307,116,089 | ||||
Ending balance at Dec. 31, 2022 | $ 2,150 | $ 3 | 2,054 | 469 | (377) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 723 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax: | ||||||
Derivative Instruments | 3 | 3 | ||||
Pension and Postretirement Benefit Plans | (4) | (4) | ||||
Currency Translation Adjustment | 65 | 65 | ||||
Repurchase of Common Stock (in shares) | (2,389,224) | |||||
Repurchase of Common Stock | (54) | (14) | (40) | |||
Dividends Declared | (123) | (123) | ||||
Recognition of Stock-Based Compensation | $ 22 | 22 | ||||
Issuance of Shares for Stock-Based Awards (in shares) | 1,331,950 | |||||
Ending balance (in shares) at Dec. 31, 2023 | 306,058,815 | 306,058,815 | ||||
Ending balance at Dec. 31, 2023 | $ 2,782 | $ 3 | $ 2,062 | $ 1,029 | $ (313) | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $ 723 | $ 522 | $ 216 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: | |||
Depreciation and Amortization | 619 | 553 | 489 |
Amortization of Deferred Debt Issuance Costs | 6 | 9 | 9 |
Deferred Income Taxes | 22 | 131 | 55 |
Amount of Postretirement Expense Less Than Funding | (5) | (18) | (24) |
Asset Impairment Charges | 29 | 96 | 0 |
Other, Net | 58 | 15 | 93 |
Changes in Operating Assets and Liabilities, Net of Acquisitions (See Note 4) | (308) | (218) | (229) |
Net Cash Provided by Operating Activities | 1,144 | 1,090 | 609 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital Spending | (781) | (522) | (775) |
Packaging Machinery Spending | (23) | (27) | (27) |
Acquisition of Businesses, Net of Cash Acquired | (361) | 0 | (1,704) |
Beneficial Interest on Sold Receivables | 184 | 125 | 130 |
Beneficial Interest Obtained in Exchange for Proceeds | (45) | (6) | (11) |
Other, Net | 1 | (5) | (5) |
Net Cash Used in Investing Activities | (1,025) | (435) | (2,392) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repurchase of Common Stock | (54) | (28) | 0 |
Payments on Debt | (26) | (14) | (16) |
Proceeds from Issuance of Debt | 0 | 0 | 2,965 |
Retirement of Long-Term Debt | 0 | (250) | (1,626) |
Redemption of Noncontrolling Interest | 0 | 0 | (150) |
Borrowings under Revolving Credit Facilities | 4,449 | 3,929 | 4,485 |
Payments on Revolving Credit Facilities | (4,314) | (4,195) | (3,649) |
IP Tax Receivable Agreement Payment | 0 | 0 | (109) |
Debt Issuance Costs | 0 | 0 | (27) |
Repurchase of Common Stock related to Share-Based Payments | (22) | (18) | (15) |
Dividends paid to shareholders and Distributions paid to GPIP Partner | (123) | (92) | (92) |
Other, Net | (16) | 2 | 12 |
Net Cash (Used in) Provided by Financing Activities | (106) | (666) | 1,778 |
Increase (Decrease) in cash and cash equivalents, including cash classified within assets held for sale | 13 | (11) | (5) |
Less Cash reclassified to Assets Held for Sale | 0 | 5 | 0 |
Effect of Exchange Rate Changes on Cash | (1) | (6) | (2) |
Net Increase (Decrease) in Cash and Cash Equivalents | 12 | (22) | (7) |
Cash and Cash Equivalents at Beginning of Year | 150 | 172 | 179 |
Cash and Cash Equivalents at End of Year | 162 | 150 | 172 |
Non-cash Investing Activities: | |||
Beneficial Interest Obtained in Exchange for Trade Receivables | 141 | 118 | 121 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | 70 | 52 | 118 |
Non-cash Financing Activities: | |||
Right-of-Use Assets Obtained in Exchange for New Finance Lease Liabilities | 0 | 42 | 11 |
Non-cash Exchange of Stock Issuance for Redemption of Noncontrolling Interest | $ 0 | $ 0 | $ (652) |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 sustainable consumer packaging provider, operates on a global basis, is one of the largest producers of cartons and containers for the packaging of consumer goods and paperboard-based foodservice packaging solutions in the United States (“U.S.”) and Europe, and holds leading market positions in paperboard used to produce consumer packaging solutions, including recycled, unbleached and bleached paperboard. 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 innovative paperboard packaging solutions preferred by consumers. The Company delivers marketing and performance benefits to its customers through its global packaging network, its proprietary carton and packaging designs, and its commitment to quality, service, and environmental stewardship. Basis of Presentation and Principles of Consolidation The Company’s 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. The Company is a party to a Japanese joint venture, Rengo Riverwood Packaging, Ltd. in which it holds a 50% ownership interest that is accounted for using the equity method. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Estimates are used in accounting for, among other things, pension benefits, retained insurable risks, slow-moving and obsolete inventory, allowance for doubtful accounts, useful lives for depreciation and amortization, impairment testing of goodwill and long-lived assets, fair values related to acquisition accounting, fair value of derivative financial instruments, share based compensation, deferred income tax assets and potential income tax assessments, and loss contingencies. Cash and Cash Equivalents Cash and cash equivalents include bank deposits and other marketable securities that are highly liquid with maturities of three months or less. 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 included in Other Expense (Income), Net in the Consolidated Statements of Operations. The following table summarizes the activity under these programs for the year ended December 31, 2023 and 2022, respectively: Year Ended December 31, In millions 2023 2022 Receivables Sold and Derecognized $ 3,696 $ 3,299 Proceeds Collected on Behalf of Financial Institutions 3,646 3,179 Net Proceeds Received from Financial Institutions 28 152 Deferred Purchase Price at December 31 (a) 1 — Pledged Receivables at December 31 150 197 (a) Included in Other Current Assets on the 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 consist principally of collection services, were $770 million and $753 million as of December 31, 2023 and 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. As of December 31, 2023 and 2022, the Company sold receivables of $1,136 million and $1,124 million, respectively, related to 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 Consolidated Balance Sheets and payments made under the SFP program are reflected in Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows. The rollforward of the Company's outstanding obligations confirmed as valid under its supplier finance program for the years ended December 31, 2023 and 2022 are as follows: Year Ended December 31, In millions 2023 2022 Confirmed Obligations Outstanding at the Beginning of the Year $ 34 $ 26 Invoices Confirmed During the Year 117 127 Confirmed Invoices Paid During the Year (121) (119) Confirmed Obligations Outstanding at the End of the Year $ 30 $ 34 Non-cash additions to Property, Plant and Equipment, Net included within Accounts Payable on the Consolidated Balance Sheets were $145 million, $55 million, and $169 million as of December 31, 2023, 2022 and 2021, respectively. Concentration of Credit Risk The Company’s cash, cash equivalents, and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. Accounts receivable are derived from revenue earned from customers located in the U.S. and internationally and generally do not require collateral. For the years ended December 31, 2023, 2022, and 2021, no customer accounted for more than 10% of net sales. Inventories Inventories are stated at the lower of cost and net realizable value with cost determined based on standard (which approximates actual), average or actual cost. Work in progress and finished goods inventories are valued at the cost of raw material consumed plus direct manufacturing costs (such as labor, utilities and supplies) as incurred and an applicable portion of manufacturing overhead. Inventories are stated net of an allowance for slow-moving and obsolete inventory. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Betterments, renewals and extraordinary repairs that extend the life of the asset are capitalized; other repairs and maintenance charges are expensed as incurred. The Company’s cost and related accumulated depreciation applicable to assets retired or sold are removed from the accounts and the gain or loss on disposition is included in income from operations. Interest is capitalized on assets under construction for one year or longer with an estimated spending of $1 million or more. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Capitalized interest was $8 million, $5 million and $14 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company assesses its long-lived assets, including certain identifiable intangibles, for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. To analyze recoverability, the Company projects future cash flows, undiscounted and before interest, over the remaining life of such assets. If these projected cash flows are less than the carrying amount, an impairment would be recognized, resulting in a write-down of assets with a corresponding charge to earnings. The impairment loss is measured based upon the difference between the carrying amount and the fair value of the assets. The Company assesses the appropriateness of the useful life of its long-lived assets periodically. Depreciation and Amortization Depreciation is computed using the straight-line method based on the following estimated useful lives of the related assets: Buildings 40 years Land improvements 15 years Machinery and equipment 3 to 40 years Furniture and fixtures 10 years Automobiles, trucks and tractors 3 to 5 years Depreciation expense, including the depreciation expense of assets under finance leases, for 2023, 2022 and 2021 was $528 million, $463 million and $420 million, respectively. Intangible Assets Intangible assets with a determinable life are amortized on a straight-line or accelerated basis over their useful lives. The amortization expense for each intangible asset is recorded in the Consolidated Statements of Operations according to the nature of that asset. Goodwill is the Company’s only intangible asset not subject to amortization. The following table displays the intangible assets that continue to be subject to amortization and accumulated amortization expense as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 In millions Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable Intangible Assets: Customer Relationships (a) $ 1,574 $ (796) $ 778 $ 1,382 $ (706) $ 676 Non-Compete Agreements (a) 3 — 3 — — — Patents, Trademarks, Licenses, Leases and Developed Technology 157 (118) 39 152 (111) 41 Total $ 1,734 $ (914) $ 820 $ 1,534 $ (817) $ 717 (a) Please see “ Note 4 - Business Combinations ” for the intangibles acquired with the Tama Paperboard, LLC ("Tama”) and Bell Incorporated (“Bell”) acquisitions. The Company recorded amortization expense for the years ended December 31, 2023, 2022 and 2021 of $91 million, $90 million and $69 million, respectively. The Company expects amortization expense for the next five consecutive years to be approximately as follows: $89 million, $64 million, $59 million, $57 million, and $56 million. Goodwill The Company tests goodwill for impairment annually as of October 1, as well as whenever events or changes in circumstances suggest that the estimated fair value of a reporting unit may no longer exceed its carrying amount. The Company tests goodwill for impairment at the reporting unit level, which is an operating segment or a level below an operating segment, which is referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. Two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. Potential goodwill impairment is measured at the reporting unit level by comparing the reporting unit’s carrying amount (including goodwill), to the fair value of the reporting unit. When performing the quantitative analysis, the estimated fair value of each reporting unit is determined by utilizing a discounted cash flow analysis based on the Company’s forecasts, discounted using a weighted average cost of capital and market indicators of terminal year cash flows based upon a multiple of EBITDA. If the carrying amount of a reporting unit exceeds its estimated fair value, goodwill is considered impaired. In determining fair value, management relies on and considers a number of factors, including but not limited to, future operating results, business plans, economic projections of revenues and operating margins, forecasts including future cash flows, and market data and analysis, including market capitalization. The assumptions used are based on what a hypothetical market participant would use in estimating fair value. Fair value determinations are sensitive to changes in the factors described above. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment. Periodically, the Company may perform a qualitative impairment analysis of goodwill associated with each of its reporting units to determine if it is more likely than not that the carrying value of a reporting unit exceeded its fair value. However, the Company performed a quantitative impairment test as of October 1, 2023, and concluded goodwill was not impaired for any of its reporting units. The following is a rollforward of goodwill by reportable segment: In millions Paperboard Manufacturing Americas Paperboard Packaging Europe Paperboard Packaging Corporate/Other (a) Total Balance at December 31, 2021 $ 506 $ 968 $ 528 $ 13 $ 2,015 Acquisition of Businesses — 10 11 — 21 Impairment of Russian Business (b) — — (12) — (12) Foreign Currency Effects — 2 (46) (1) (45) Balance at December 31, 2022 $ 506 $ 980 $ 481 $ 12 $ 1,979 Acquisition of Businesses (c) 59 42 — — 101 Foreign Currency Effects — 6 18 (1) 23 Balance at December 31, 2023 $ 565 $ 1,028 $ 499 $ 11 $ 2,103 (a) Includes Australia operating segment. (b) Relates to the Company's divestiture of its Russian business. Please see "Note 19 - Impairment and Divestiture of Russian Business" for more information. (c) Represents goodwill related to the Tama and Bell acquisitions. Retained Insurable Risks It is the Company’s policy to self-insure or fund a portion of certain expected losses related to group health benefits and workers’ compensation claims. Provisions for expected losses are recorded based on the Company’s estimates, on an undiscounted basis, of the aggregate liabilities for known claims and estimated claims incurred but not reported. Asset Retirement Obligations Asset retirement obligations are accounted for in accordance with the provisions of the Asset Retirement and Environmental Obligations topic of the FASB Codification. A liability and asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists and the liability can be reasonably estimated. The liability is accreted over time and the asset is depreciated over the remaining life of the asset. Upon settlement of the liability, the Company will recognize a gain or loss for any difference between the settlement amount and the liability recorded. Asset retirement obligations with indeterminate settlement dates are not recorded until such time that a reasonable estimate may be made. The Company's asset retirement obligations consist primarily of landfill closure and post-closure costs at certain of our paperboard manufacturing facilities. At December 31, 2023 and 2022, the Company had liabilities of $14 million and $13 million, respectively. The liabilities are primarily reflected as Other Noncurrent Liabilities on the Consolidated Balance Sheets. International Currency The functional currency of the international subsidiaries is usually the local currency for the country in which the subsidiaries own their primary assets. The translation of the applicable currencies into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. Any related translation adjustments are recorded directly to a separate component of Shareholders’ Equity, unless there is a sale or substantially complete liquidation of the underlying foreign investments. Gains and losses on foreign currency transactions are included in Other Expense (Income) in the Consolidated Statements of Operations, Net for the period in which the exchange rate changes. The Company pursues a currency hedging program which utilizes derivatives to reduce the impact of foreign currency exchange fluctuations on its consolidated financial results. Under this program, the Company has entered into forward exchange contracts in the normal course of business to hedge certain foreign currency denominated transactions. Realized and unrealized gains and losses on these forward contracts are included in the measurement of the basis of the related foreign currency transaction when recorded. Revenue Recognition The Company has two primary activities, manufacturing and the converting of paperboard for and into consumer packaging made from renewable resources, from which it generates revenue from contracts with customers. Revenue is disaggregated primarily by geography and type of activity as further explained in “ Note 15 - Business Segment and Geographic Area 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 years ended December 31, 2023, 2022 and 2021, the Company recognized $9,383 million, $9,410 million and $7,131 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 December 31, 2023 and 2022, contract assets were $28 million and $8 million, respectively. The Company's contract liabilities consist principally of rebates, and as of December 31, 2023 and 2022 were $60 million and $65 million, respectively. Shipping and Handling The Company includes shipping and handling costs in Cost of Sales. Research and Development Research and development costs, which relate primarily to the development and design of new packaging machines and products and are recorded as a component of Selling, General and Administrative expenses, are expensed as incurred. Expenses for the years ended December 31, 2023, 2022 and 2021 were $16 million, $14 million, and $10 million, respectively. Business Combinations, Exit Activities and Other Special Charges, Net The following table summarizes the transactions recorded in Business Combinations, Exit Activities and Other Special Charges, Net in the Consolidated Statements of Operations for the year ended December 31: In millions 2023 2022 2021 Charges Associated with Business Combinations (a) $ 4 $ 23 $ 84 Exit Activities (b) 47 10 21 Charges Associated with a Divestiture (c) 14 96 — Other Special Charges (d) 9 2 33 Total $ 74 $ 131 $ 138 (a) These costs relate to the Americraft Carton, Inc. (“Americraft”), AR Packaging Group AB (“AR Packaging”), Tama, and the Bell acquisitions (see “ Note 4 - Business Combinations ”). (b) Relates to the Company's closures of its three smaller recycled paperboard manufacturing facilities (which includes Tama), the closures of multiple packaging facilities, and the discontinuation of the Texarkana swing capacity project (see “ Note 18 - Exit Activities ”). (c) Relates to the sale of the Company's Russian operations (see “ Note 19 - Impairment and Divestiture of Russian Business ” ). (d) These costs include $9 million related to the devaluation of the Nigerian Naira in 2023. 2023 On January 31, 2023, the Company completed the acquisition of Tama, a recycled paperboard manufacturing facility 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 4 - 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 18 - Exit Activities ”. On February 7, 2023, the Company announced an approximately $1 billion investment in a new recycled paperboard manufacturing facility in Waco, Texas. In conjunction with the completion of this project, the Company expects to close two additional smaller recycled paperboard manufacturing facilities in order to strategically expand capacity while lowering costs. Charges associated with these closures are included in Exit Activities in the table above. For more information, see “ Note 18 - Exit Activities ”. During 2023, the Company decided to close multiple packaging facilities by the end of 2023 and early 2024. Production from these facilities will be consolidated into our existing packaging network. Charges associated with this project are included in Exit Activities in the table above. For more information, see “ Note 18 - Exit Activities ”. On September 8, 2023, the Company completed the acquisition of Bell, an independent packaging company for $264 million, subject to customary working capital adjustments. The acquisition included three packaging facilities located in South Dakota and Ohio and is reported within the Americas Paperboard Packaging reportable segment. Charges Associated with this acquisition are included in Charges Associated with Business Combinations in the table above. For more information, see “ Note 4 - Business Combinations ”. During the third quarter of 2023, the Company decided to discontinue its previously announced project in Texarkana to modify an existing paperboard machine to add swing capacity between bleached and unbleached paperboard in order to focus growth investments in the strategic expansion of coated recycled paperboard capacity. Through December 31, 2023, the Company incurred charges of $16 million related to the write-off of assets, which were primarily engineering, permitting, and consulting costs for this project. Charges associated with this project are included in Exit Activities in the table above. For more information, see “ Note 18 - Exit Activities ”. During the third quarter of 2023, the Company decided to permanently decommission the K3 recycled paperboard machine in Kalamazoo, Michigan as part of its recycled paperboard network optimization plan that the Company initiated in 2019. As of December 31, 2023, the Company incurred charges of $20 million related to the write-off of inventory and accelerated depreciation for the assets included in Costs of Sales in the Company's Consolidated Statements of Operations. The Company expects to incur additional charges of $5 million to $10 million as it relates to the dismantling of the K3 recycled paperboard machine through 2024. During the second quarter of 2022, the Company began the process of divesting its interest in its two packaging facilities in Russia (the “Russian Operations”). The assets and liabilities to be disposed of in connection with this transaction met the held for sale criteria as of June 30, 2022 and each subsequent quarter end through the date of sale. On November 30, 2023, the Company completed the sale of its Russian Operations. Impairment charges associated with this divestiture are included in Charges Associated with a Divestiture in the table above. For more information, see “ Note 19 - Impairment and Divestiture of Russian Business ”. 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 18 - Exit Activities ”. 2021 During 2019, the Company announced its plans to invest in a new recycled paperboard machine in Kalamazoo, Michigan. At the time of the announcement, the Company expected to close two of its smaller recycled paperboard manufacturing facilities 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 recycled paperboard manufacturing facilities. In the second quarter 2022, the Company closed the Battle Creek, Michigan recycled paperboard manufacturing facility. Severance, retention, start-up costs, and other charges associated with this project are included in Exit Activities in the table above. For more information, see “ Note 18 - Exit Activities. ” On May 14, 2021, in connection with the AR Packaging acquisition, the Company entered into deal contingent foreign exchange forward contracts, with no upfront cash cost, to hedge €700 million of the acquisition price. These forward contracts settled October 29, 2021, immediately prior to the acquisition of AR Packaging and are accounted for as derivatives under ASC 815, Derivatives and Hedging. Unrealized losses of $48 million for the year ended December 31, 2021 resulting from these contracts are recognized in Charges Associated with Business Combinations in the table above. For more information, see “ Note 10 - Financial Instruments, Derivatives and Hedging Activities. ” On July 1, 2021, the Company acquired substantially all the assets of Americraft, the largest independent operator of packaging facilities in North America for $292 million. The acquisition included seven packaging facilities across the United States and is reported within the Americas Paperboard Packaging reportable segment. Charges associated with this acquisition are included in Charges Associated with Business Combinations in the table above. For more information, see “ Note 4 - Business Combinations ”. On November 1, 2021, the Company acquired all the shares of AR Packaging, Europe's second largest producer of paperboard consumer packaging, for $1,412 million in cash, net of cash acquired of $75 million. The acquisition included 30 packaging facilities in 13 countries and is reported within the Europe Paperboard Packaging reportable segment. The costs associated with this acquisition are included in Charges Associated with Business Combinations in the table above. For more information, see “ Note 4 - Business Combinations ”. Share Repurchases and Dividends On July 27, 2023, the Company's board of directors authorized an additional 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 “2023 share repurchase program”). The previous $500 million share repurchase program was authorized January 28, 2019 (the “2019 share repurchase program”). Share repurchases are reflected as a reduction of common stock for the par value of the shares, with any excess of share repurchase price over par value allocated between capital in excess of par value and retained earnings. The following presents the Company's share repurchases for the years ended December 31, 2023, 2022, and 2021: Amount repurchased in millions, except share and per share amounts Amount Repurchased Number of Shares Repurchased Average Price, per Share 2023 $ 54 2,389,224 $ 22.80 2022 $ 28 1,315,839 $ 20.91 2021 $ — — $ — At December 31, 2023, the Company had $565 million available for additional repurchases under the 2023 and 2019 share repurchase programs. During 2023, 2022 and 2021, GPHC paid cash dividends of $123 million, $92 million and $87 million, respectively. Though the decision to distribute cash dividends rests solely with the Board of Directors, the Company presently intends to maintain a quarterly cash dividend, subject to earnings and liquidity considerations. 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 of supplier finance programs and requires buyers in a supplier finance program to disclose sufficient information about the program to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. 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 adoption of this accounting standard did not have an impact on the Company’s financial position, results of operations and cash flows. Accounting Standards Not Yet Adopted 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 . This ASU clarifies that contractual sale restrictions should not be considered in measuring the fair value of equity securities. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods therein, with early adoption permitted. The Company will continue evaluating the impact of this ASU on its disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will continue evaluating the impact of this ASU on its disclosures. |
SUPPLEMENTAL BALANCE SHEET DATA
SUPPLEMENTAL BALANCE SHEET DATA | 12 Months Ended |
Dec. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
SUPPLEMENTAL BALANCE SHEET DATA | SUPPLEMENTAL BALANCE SHEET DATA The following tables provide disclosure related to the components of certain line items included on the Consolidated Balance Sheets. Receivables, Net: In millions 2023 2022 Trade $ 739 $ 825 Less: Allowance (23) (21) 716 804 Other 119 75 Total $ 835 $ 879 Inventories, Net by major class: In millions 2023 2022 Finished Goods $ 602 $ 515 Work in Progress 201 218 Raw Materials 684 645 Supplies 267 228 Total $ 1,754 $ 1,606 Property, Plant and Equipment, Net: In millions 2023 2022 Property, Plant and Equipment, at Cost: Land and Improvements $ 195 $ 187 Buildings (a) 1,122 1,067 Machinery and Equipment (b) 7,686 7,383 Construction-in-Progress 657 234 9,660 8,871 Less: Accumulated Depreciation (a)(b) (4,668) (4,292) Total $ 4,992 $ 4,579 (a) Includes gross assets under finance lease of $146 million and related accumulated depreciation of $31 million as of December 31, 2023, and gross assets under finance lease of $146 million and related accumulated depreciation of $22 million as of December 31, 2022. (b) Includes gross assets under finance lease of $51 million and related accumulated depreciation of $21 million as of December 31, 2023, and gross assets under finance lease of $51 million and related accumulated depreciation of $16 million as of December 31, 2022. Other Accrued Liabilities: In millions 2023 2022 Operating Lease Liabilities, current portion $ 62 $ 66 Accrued Payables 61 66 Other Accrued Taxes 49 51 Accrued Customer Rebates 48 44 Dividends Payable 31 31 Deferred Revenue 30 32 Income Tax Payable 15 7 Fair Value of Derivatives, current portion 13 12 Accrued Severance 6 3 Unfavorable Supply Agreement 2 2 Other (a) 78 97 Total $ 395 $ 411 (a) Other accrued expenses include several types of expenses such as accrued bonus, external outside services and production costs. Other Noncurrent Liabilities: In millions 2023 2022 Operating Lease Liabilities, noncurrent portion $ 189 $ 184 FIN48 Liabilities 38 4 Deferred Compensation 30 19 Multi-Employer Plans 17 18 Workers Compensation Reserve 8 8 Deferred Revenue 8 8 Unfavorable Supply Agreement 2 3 Other 68 22 Total $ 360 $ 266 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Cash Flow (Used In) Provided by Operations Due to Changes in Operating Assets and Liabilities, net of acquisitions: In millions 2023 2022 2021 Receivables, Net $ (39) $ (184) $ (106) Inventories, Net (117) (268) (80) Other Current Assets (15) 2 (12) Other Assets (19) (1) (22) Accounts Payable (140) 132 77 Compensation and Employee Benefits (25) 87 (15) Income Taxes 7 (2) (6) Interest Payable 12 16 4 Other Accrued Liabilities (22) (11) 3 Other Noncurrent Liabilities 50 11 (72) Total $ (308) $ (218) $ (229) Cash paid for interest and cash paid, net of refunds, for income taxes was as follows: In millions 2023 2022 2021 Interest $ 221 $ 176 $ 116 Income Taxes $ 157 $ 43 $ 25 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The Company accounts for acquisitions as business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). Bell Incorporated On September 8, 2023, the Company completed the acquisition of Bell, adding three packaging facilities in Sioux Falls, South Dakota and Groveport, Ohio for $264 million, subject to customary working capital adjustments, using existing cash and borrowings under its revolving credit facility. The acquisition is reported within the Americas Paperboard Packaging reportable segment. The preliminary purchase price allocation as of December 31, 2023 is as follows: In millions Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 264 Cash & Cash Equivalents 3 Receivables, Net 19 Inventories, Net 17 Property, Plant and Equipment 30 Intangible Assets (a) 161 Other Assets 15 Total Assets Acquired 245 Current Liabilities 11 Other Noncurrent Liabilities 12 Total Liabilities Assumed 23 Net Assets Acquired 222 Goodwill 42 Purchase Consideration Transferred $ 264 (a) Intangible Assets primarily consists of Customer Relationships with a weighted average life of approximately 15 years. The purchase price has been preliminarily allocated to assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date and is subject to further adjustments in subsequent periods. 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. Tama Paperboard, LLC On January 31, 2023, the Company completed the acquisition of Tama, a recycled paperboard manufacturing facility 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 Manufacturing reportable segment. Americraft On July 1, 2021, the Company acquired substantially all of the assets of Americraft. The Company paid approximately $292 million, using existing cash and borrowings under its revolving credit facility. The acquisition included seven packaging facilities across the United States. The purchase price for Americraft was allocated to assets acquired and liabilities assumed based on the fair values as of the acquisition date. Tangible assets and liabilities were valued as of the acquisition date using the indirect and direct methods of the cost approach and intangible assets were valued using a discounted cash flow analysis, which represents a Level 3 measurement. The assigned goodwill, which is deductible for tax purposes, is reported within the Americas Paperboard Packaging reportable segment. The final purchase price allocation is as follows: In millions Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 292 Receivables, Net 22 Inventories, Net 36 Property, Plant and Equipment, Net 94 Intangible Assets, Net (a) 74 Other Assets 1 Total Assets Acquired 227 Current Liabilities 13 Total Liabilities Assumed 13 Net Assets Acquired 214 Goodwill 78 Total Estimated Fair Value of Net Assets Acquired $ 292 (a) Intangible Assets, Net, primarily consists of Customer Relationships with a weighted average life of approximately 15 years. During the second quarter of 2022, the Company finalized the acquisition accounting for Americraft. Proforma disclosures were omitted for the Bell, Tama and Americraft acquisitions as they do not have a significant impact on the Company’s financial results. AR Packaging On November 1, 2021, the Company completed the acquisition of AR Packaging, Europe's second largest producer of paperboard consumer packaging, by acquiring all the AR Packaging Group AB shares that were issued and outstanding as of the date of acquisition. The acquisition included 30 packaging facilities in 13 countries and enhances the Company’s global scale, innovation capabilities, and value proposition for customers throughout Europe and bordering regions. The total cash consideration for the AR Packaging acquisition was $1,412 million net of cash acquired of $75 million, paid in Euros through the use of deal contingent, foreign exchange forward contracts, purchased through the use of available borrowing capacity on the Company’s Senior Secured Revolving Credit Facilities and the $400 million Incremental Facility Amendment to the Fourth Amended and Restated Credit Agreement. For more information, see “ Note 5 - Debt. ” The purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair values as of the date of acquisition. The fair values of the tangible assets acquired and liabilities assumed were determined using the income and cost approaches. In many cases, the determination of the fair values required estimates about discount rates, future expected cash flows and other future events that are judgmental and subject to change. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement of the fair value hierarchy as defined in ASC 820, Fair Value Measurements (“ASC 820”). Intangible assets consisting of customer relationships, technology, and trade names were valued using a discounted cash flow analysis. The significant assumptions used to estimate the value of the customer relationships intangible assets included the discount rate, annual revenue growth rates, customer attrition rates, projected operating expenses, projected EBITDA margins, tax rate, depreciation, and contributory asset charge. Management believes that the purchase price attributable to goodwill represents the benefits expected, including enhanced revenue growth from expanded capabilities and geographic presence as well as substantial cost savings from reduction of duplicative overhead, streamlined operations and enhanced operational efficiency. The assigned goodwill, which is not deductible for tax purposes, is reported within the Europe Paperboard Packaging reportable segment. The final purchase price allocation is as follows: In millions Amounts Recognized as of Acquisition Date (as adjusted) (a) Total Purchase Consideration $ 1,487 Cash Acquired 75 Receivables, Net 206 Inventories 166 Other Current Assets 12 Property, Plant and Equipment (b) 556 Intangible Assets (c) 409 Other Assets 62 Total Assets Acquired 1,486 Accounts Payable 109 Compensation and Employee Benefits 12 Other Accrued Liabilities 99 Short-Term Debt and Current Portion of Long-Term Debt 9 Long-Term Debt 17 Deferred Income Tax Liabilities 139 Accrued Pension and Postretirement Benefits 55 Other Noncurrent Liabilities 43 Noncontrolling Interests 2 Total Liabilities Assumed 485 Net Assets Acquired 1,001 Goodwill 486 Total Estimated Fair Value of Net Assets Acquired $ 1,487 (a) The amounts were translated from Euro to USD using the rate at the acquisition date of 1.1539. (b) Property, Plant and Equipment primarily consists of Machinery and Equipment of $374 million with a weighted average life of approximately 13 years. (c) Intangible Assets primarily consists of Customer Relationships of $401 million with a weighted average life of approximately 15 years. During the fourth quarter of 2022, the Company finalized the acquisition accounting for AR Packaging. The Consolidated Statements of Operations include $1,135 million of Net Sales and $17 million of Loss from Operations for AR Packaging for the year ended December 31, 2022 and $176 million of Net Sales and $8 million of Loss from Operations for the year ended December 31, 2021. The year ended December 31, 2022 included $96 million of impairment charges related to the divestiture of its two packaging facilities in Russia. See “ Note 19 - Impairment and Divestiture of Russian business ” for further information. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Short-Term Debt and Current Portion of Long-Term Debt is comprised of the following: In millions 2023 2022 Short Term Borrowings $ 18 $ 16 Current Portion of Finance Leases 7 11 Current Portion of Long-Term Debt (a) 739 26 Total Short-Term Debt and Current Portion of Long-Term Debt $ 764 $ 53 (a) Includes the 0.821% and 4.125% Senior Notes due 2024. Short-term borrowings are principally at the Company’s international subsidiaries. The weighted average interest rate on short-term borrowings as of December 31, 2023 and 2022 was 6.5% and 6.2%, respectively. Long-Term Debt is comprised of the following: In millions 2023 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 4.13%, 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 4.78%, 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 3.53%, 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) 321 311 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) 106 108 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 December 31, 2023), effective rate of 6.59%, payable in 2028 (a) 250 250 Senior Secured Term Loan Facilities with interest payable at various dates at floating rates (6.32% at December 31, 2023) payable through 2026 (a) 508 529 Senior Secured Term Loan Facility (€206 million) with interest payable at various dates at floating rates (5.23% at December 31, 2023) payable through 2026 (a) 227 225 Senior Secured Revolving Credit Facilities with interest payable at floating rates (6.96% at December 31, 2023) payable in 2026 (a)(c) 774 634 Finance Leases 161 170 Other 6 15 Total Long-Term Debt Including Current Portion 5,378 5,267 Less: Current Portion 746 37 Total Long-Term Debt Excluding Current Portion 4,632 5,230 Less: Unamortized Deferred Debt Issuance Costs 23 30 Total Long-Term Debt $ 4,609 $ 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 6.61% and 3.52% as of December 31, 2023 and 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 Secured Overnight Financing Rate (“SOFR”) loans under the domestic revolving line of credit. 2022 On November 4, 2022, GPIL entered into Amendment No. 2 to the Fourth Amended and Restated Credit Agreement (the “Second Amendment”). The Second Amendment provided for a change in the floating interest rate benchmark for the domestic revolving credit facility and the USD denominated term loans, from LIBOR-based to Term SOFR plus 10bps. The Second Amendment also added JSC AR Packaging to the Schedule of Permitted Asset Sales to facilitate the sale of the Company's Russian operations. On November 15, 2022, the Company drew $250 million from the senior secured domestic revolving credit facilities and used the proceeds, together with cash on hand, to redeem its 4.875% Senior Notes due in 2022. The following describes the Company's senior secured term loans and revolving credit facilities within the Fourth Amended and Restated Credit Agreement: Document (a) Provision Expiration Fourth Amended and Restated Credit Agreement • Increased the domestic revolving credit facility by $400 million to $1,850 million. • Increased the European revolving credit facility by €7 million to €145 million. • Decreased the Japanese revolving credit facility by ¥850 million to ¥1,650 million, and • Reduced the term loan by approximately $5 million to $550 million. LIBOR plus variable spread (between 125 basis points and 200 basis points) depending on consolidated total leverage ratio. April 2026 Amendment 1 Increased the European revolving credit facility by €25 million to €170 million. Added Incremental EUR Term Loan Facility of €210 million. April 2026 Incremental Term A-2 Facility Amendment Incremental $425 million term loan facility under the Fourth Amended and Restated Credit Agreement with a delayed draw feature, which was exercised in January 2021. January 2028 Incremental Term A-3 Facility Amendment Incremental $250 million term loan facility under the Fourth Amended and Restated Credit Agreement, which was exercised in July 2021. July 2028 Second Incremental Term A-4 Facility Amendment Incremental $400 million term loan facility under the Fourth Amended and Restated Credit Agreement, which was funded in October 2021, and settled in November 2021. November 2021 (a) The Company's obligations under the Fourth Amended and Restated Credit Agreement (as amended by the Incremental Term A-3 Facility Amendment, the First Amendment, the Incremental Term A-4 Facility Amendment and the Second Amendment (collectively, the “Current Credit Agreement”) are secured by substantially all of the Company's domestic assets. At December 31, 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 Senior Secured Domestic Revolving Credit Facility (a) $ 1,850 $ 774 $ 1,071 Senior Secured International Revolving Credit Facilities 200 — 200 Other International Facilities 53 24 29 Total $ 2,103 $ 798 $ 1,300 (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 $5 million as of December 31, 2023. These letters of credit are primarily used as security against its self-insurance obligations and workers' compensation obligations. These letters of credit expire at various dates throughout 2024 unless extended. Long-Term Debt maturities (excluding finance leases) are as follows: In millions 2024 $ 739 2025 43 2026 1,938 2027 300 2028 1,125 After 2028 1,072 Total $ 5,217 Covenant Agreements The Covenants in the Company's Fourth Amended and Restated Credit Agreement (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 December 31, 2023, the Company was in compliance with the covenants in the Current Credit Agreement and the Indentures. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company determines if a contract is or contains a lease at inception. The Company has operating and finance leases for warehouses, corporate and regional offices, and machinery and equipment. The Company enters into lease contracts ranging from one of three to seven years, many of which include options to extend in various increments. Variable lease costs consist primarily of variable warehousing costs, common area maintenance, taxes, and insurance. The Company’s leases do not have any significant residual value guarantees or restrictive covenants. As the implicit rate is not readily determinable for most of the Company’s leases agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. These discount rates for leases are calculated using the Company's credit spread adjusted for current market factors, including fixed rate swaps, EURIBOR, and foreign currency rates. The components of lease costs are as follows: Year Ended December 31, In millions 2023 2022 Finance lease costs: Amortization of right-of-use asset $ 14 $ 11 Interest on lease liabilities 9 8 Operating lease costs 86 82 Short-term lease costs 29 21 Variable lease costs 14 16 Total lease costs, net $ 152 $ 138 Supplemental cash flow information related to leases was as follows: Year Ended December 31, In millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 84 $ 83 Operating cash flows from finance leases 9 8 Financing cash flows from finance leases 9 9 Right-of-use assets obtained in exchange for lease obligations: Operating leases 70 52 Finance leases — 42 Supplemental balance sheet information related to leases was as follows: December 31, In millions, except lease term and discount rate Balance Sheet Classification 2023 2022 Operating Leases: Operating lease right-of-use asset Other Assets $ 228 $ 245 Current operating lease liabilities Other Accrued Liabilities $ 62 $ 66 Noncurrent operating lease liabilities Other Noncurrent Liabilities 189 184 Total operating lease liabilities $ 251 $ 250 Finance Leases: Property, Plant and Equipment $ 197 $ 197 Accumulated depreciation (52) (38) Property, Plant and Equipment, net $ 145 $ 159 Current finance lease liabilities Short-Term Debt and Current Portion of Long-Term Debt $ 7 $ 11 Noncurrent finance lease liabilities Long-Term Debt 154 159 Total finance lease liabilities $ 161 $ 170 Weighted Average Remaining Lease Term (Years): Operating leases 6 7 Finance leases 16 16 Weighted Average Discount Rate: Operating leases 4.10 % 3.76 % Finance leases 5.17 % 5.31 % Maturities of lease liabilities are as follows: In millions Year ending December 31, Operating Leases Finance Leases 2024 $ 69 $ 16 2025 56 15 2026 43 14 2027 34 15 2028 21 16 Thereafter 59 165 Total lease payments $ 282 $ 241 Less imputed interest (31) (80) Total $ 251 $ 161 |
LEASES | LEASES The Company determines if a contract is or contains a lease at inception. The Company has operating and finance leases for warehouses, corporate and regional offices, and machinery and equipment. The Company enters into lease contracts ranging from one of three to seven years, many of which include options to extend in various increments. Variable lease costs consist primarily of variable warehousing costs, common area maintenance, taxes, and insurance. The Company’s leases do not have any significant residual value guarantees or restrictive covenants. As the implicit rate is not readily determinable for most of the Company’s leases agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. These discount rates for leases are calculated using the Company's credit spread adjusted for current market factors, including fixed rate swaps, EURIBOR, and foreign currency rates. The components of lease costs are as follows: Year Ended December 31, In millions 2023 2022 Finance lease costs: Amortization of right-of-use asset $ 14 $ 11 Interest on lease liabilities 9 8 Operating lease costs 86 82 Short-term lease costs 29 21 Variable lease costs 14 16 Total lease costs, net $ 152 $ 138 Supplemental cash flow information related to leases was as follows: Year Ended December 31, In millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 84 $ 83 Operating cash flows from finance leases 9 8 Financing cash flows from finance leases 9 9 Right-of-use assets obtained in exchange for lease obligations: Operating leases 70 52 Finance leases — 42 Supplemental balance sheet information related to leases was as follows: December 31, In millions, except lease term and discount rate Balance Sheet Classification 2023 2022 Operating Leases: Operating lease right-of-use asset Other Assets $ 228 $ 245 Current operating lease liabilities Other Accrued Liabilities $ 62 $ 66 Noncurrent operating lease liabilities Other Noncurrent Liabilities 189 184 Total operating lease liabilities $ 251 $ 250 Finance Leases: Property, Plant and Equipment $ 197 $ 197 Accumulated depreciation (52) (38) Property, Plant and Equipment, net $ 145 $ 159 Current finance lease liabilities Short-Term Debt and Current Portion of Long-Term Debt $ 7 $ 11 Noncurrent finance lease liabilities Long-Term Debt 154 159 Total finance lease liabilities $ 161 $ 170 Weighted Average Remaining Lease Term (Years): Operating leases 6 7 Finance leases 16 16 Weighted Average Discount Rate: Operating leases 4.10 % 3.76 % Finance leases 5.17 % 5.31 % Maturities of lease liabilities are as follows: In millions Year ending December 31, Operating Leases Finance Leases 2024 $ 69 $ 16 2025 56 15 2026 43 14 2027 34 15 2028 21 16 Thereafter 59 165 Total lease payments $ 282 $ 241 Less imputed interest (31) (80) Total $ 251 $ 161 |
STOCK INCENTIVE PLANS
STOCK INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 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 December 31, 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 the 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 years ended December 31 is as follows: 2023 2022 2021 RSUs — Employees and Non-Employee Directors 1,780,345 1,943,769 1,680,997 Weighted-average grant date fair value $ 23.74 $ 20.19 $ 16.14 Stock Awards — Board of Directors 25,588 34,160 55,055 Weighted-average grant date fair value $ 25.01 $ 20.49 $ 17.80 A summary of the changes in the number of unvested RSUs from December 31, 2020 to December 31, 2023 is presented below: RSUs Weighted Average Grant Date Fair Value Outstanding — December 31, 2020 5,141,706 $ 14.02 Granted (a) 1,680,997 16.14 Released (2,121,203) 14.88 Forfeited (359,100) 14.39 Performance adjustment (b) 587,461 15.09 Outstanding — December 31, 2021 4,929,861 $ 14.47 Granted (a) 1,943,769 20.19 Released (2,180,435) 12.34 Forfeited (193,145) 17.59 Performance adjustment (b) 324,814 12.52 Outstanding — December 31, 2022 4,824,864 $ 17.48 Granted (a) 1,780,345 23.74 Released (2,313,891) 15.62 Forfeited (102,583) 20.21 Performance adjustment (b) 753,702 15.59 Outstanding — December 31, 2023 4,942,437 $ 20.20 (a) Grant activity for all performance-based RSUs is disclosed at target. (b) Reflects the number of RSUs paid out above target levels based on actual performance measured at the end of the performance period. The initial value of the service-based RSUs is generally based on the closing market value of GPHC’s common stock on the date of grant, discounted to reflect that the RSUs do not accrue dividends during the vesting period. The 2023 performance-based RSU grants were valued using a Monte Carlo simulation as the total shareholder return contains a market condition. RSUs are recorded in Shareholders' Equity. The unrecognized expense at December 31, 2023 is approximately $49 million and is expected to be recognized over a weighted average period of 2 years. The value of stock awards granted to the Company's directors as compensation are based on the market value of GPHC’s common stock on the date of grant. These awards are unrestricted on the date of grant. During 2023, 2022, and 2021, $44 million, $34 million and $27 million, respectively, were charged to compensation expense for stock incentive plans and such amounts are included in Selling, General and Administrative expenses in the Consolidated Statements of Operations. During 2023, 2022, and 2021, RSUs with an aggregate fair value of $54 million, $44 million and $35 million, respectively, vested and were paid out. The RSUs vested and paid out in 2023 were granted primarily during 2020. |
PENSIONS AND OTHER POSTRETIREME
PENSIONS AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
PENSIONS AND OTHER POSTRETIREMENT BENEFITS | PENSIONS AND OTHER POSTRETIREMENT BENEFITS DEFINED BENEFIT PLANS 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. Currently, the North American plans are closed to newly-hired employees. Pension and Postretirement Expense The pension and postretirement expenses related to the Company’s plans consisted of the following: Pension Benefits Postretirement Benefits Year Ended December 31, In millions 2023 2022 2021 2023 2022 2021 Components of Net Periodic Cost: Service Cost $ 9 $ 14 $ 15 $ — $ — $ — Interest Cost 22 12 10 2 1 1 Expected Return on Plan Assets (23) (21) (19) — — — Amortization of Actuarial Loss (Gain) 5 3 5 (3) (2) (2) Net Periodic Cost (Benefit) $ 13 $ 8 $ 11 $ (1) $ (1) $ (1) Certain assumptions used in determining the pension and postretirement expenses were as follows: Pension Benefits Postretirement Benefits Year Ended December 31, 2023 2022 2021 2023 2022 2021 Weighted Average Assumptions: Discount Rate 4.86 % 2.46 % 2.11 % 5.12 % 2.92 % 2.52 % Rate of Increase in Future Compensation Levels 3.16 % 1.80 % 3.62 % — — — Expected Long-Term Rate of Return on Plan Assets 5.59 % 3.86 % 3.59 % — — — Initial Health Care Cost Trend Rate — — — 7.25 % 6.15 % 6.40 % Ultimate Health Care Cost Trend Rate — — — 4.50 % 4.50 % 4.50 % Ultimate Year — — — 2032 2031 2028 Funded Status The following table sets forth the funded status of the Company’s pension and postretirement plans as of December 31: Pension Benefits Postretirement Benefits In millions 2023 2022 2023 2022 Change in Benefit Obligation: Benefit Obligation at Beginning of Year $ 471 $ 627 $ 26 $ 33 Service Cost 9 14 — — Interest Cost 22 12 2 1 Net Actuarial Loss (Gain) 10 (152) — (7) Foreign Currency Exchange 10 (27) — — Benefits Paid (28) (24) (2) (1) Acquisition — 12 — — Other — 9 — — Benefit Obligation at End of Year $ 494 $ 471 $ 26 $ 26 Change in Plan Assets: Fair Value of Plan Assets at Beginning of Year $ 397 $ 557 $ — $ — Actual Return on Plan Assets 34 (149) — — Employer Contributions 14 24 2 1 Foreign Currency Exchange 10 (27) — — Benefits Paid (28) (24) (2) (1) Acquisition — 7 — — Other — 9 — — Fair Value of Plan Assets at End of Year $ 427 $ 397 $ — $ — Plan Assets Less than Projected Benefit Obligation $ (67) $ (74) $ (26) $ (26) Amounts Recognized on the Consolidated Balance Sheets Consist of: Pension Assets $ 18 $ 19 $ — $ — Accrued Pension and Postretirement Benefits Liability — Current $ (4) $ (5) $ (3) $ (3) Accrued Pension and Postretirement Benefits Liability — Noncurrent $ (81) $ (88) $ (23) $ (23) Accumulated Other Comprehensive Income: Net Actuarial Loss (Gain) $ 83 $ 82 $ — $ (1) Prior Service Cost (Credit) $ 4 $ 3 $ (19) $ (21) Weighted Average Calculations: Discount Rate 4.69 % 4.86 % 4.96 % 5.12 % Rates of Increase in Future Compensation Levels 2.90 % 3.16 % — — Initial Health Care Cost Trend Rate — — 8.50 % 7.25 % Ultimate Health Care Cost Trend Rate — — 4.45 % 4.50 % Ultimate Year — — 2033 2032 The Company determined pension expense using both the fair value of assets and a calculated value that averages gains and losses over a period of years. Investment gains or losses represent the difference between the expected and actual return on assets. As of December 31, 2023, the net actuarial loss in accumulated other comprehensive loss was $83 million. These net losses may increase future pension expense if not offset by (i) actual investment returns that exceed the assumed investment returns, or (ii) other factors, including reduced pension liabilities arising from higher discount rates used to calculate pension obligations, or (iii) other actuarial gains, including whether such accumulated actuarial losses at each measurement date exceed the “corridor” determined under the Compensation — Retirement Benefits topic of the FASB Codification. For the largest plan, the actuarial loss is amortized over the average remaining service period of employees expected to receive benefits. The discount rate used to determine the present value of future pension obligations at December 31, 2023 was based on a yield curve constructed from a portfolio of high-quality corporate debt securities with maturities ranging from 1 year to 30 years. Each year’s expected future benefit payments were discounted to their present value at the spot yield curve rate thereby generating the overall discount rate for the Company’s pension obligations. The weighted average discount rate used to determine the pension obligations was 4.69% and 4.86% in 2023 and 2022, respectively. The pension net actuarial loss of $10 million was primarily due to changes in the discount rate. The weighted average discount rate at December 31, 2023 was 4.69% compared to 4.86% at December 31, 2022. Accumulated Benefit Obligation The accumulated benefit obligation, (“ABO”), for all defined benefit pension plans was $491 million and $465 million at December 31, 2023 and 2022, respectively. The projected benefit obligation (“PBO”) and fair value of plan assets where the PBO exceeded plan assets were $323 million and $311 million at December 31, 2023 and 2022, respectively. The ABO and fair value of plan assets where the ABO exceeded plan assets were $319 million and $304 million at December 31, 2023 and 2022, respectively. Employer Contributions The Company made $15 million and $24 million of contributions to its pension plans during 2023 and 2022, respectively. During 2022, the Company made a $6 million contribution to the 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 in 2024. The Company also made postretirement health care benefit payments of $2 million and $1 million during 2023 and 2022, respectively. For 2024, the Company expects to make approximately $2 million of contributions to its postretirement health care plans. Pension Assets The Company’s overall investment strategy is to achieve a mix of investments for long-term growth and near-term benefit payments through diversification of asset types, fund strategies and fund managers. Investment risk is measured on an on-going basis through annual liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. The plans invest in the following major asset categories: cash, equity securities, fixed income securities, real estate and diversified growth funds. At December 31, 2023 and 2022, pension investments did not include any direct investments in the Company’s stock or the Company’s debt. The Company implemented a de-risking or liability driven investment strategy for its North America. and U.K. pension plans. This strategy moved assets from return seeking (equities) to investments that mirror the underlying benefit obligations (fixed income). The weighted average allocation of plan assets and the target allocation by asset category is as follows: Target 2023 2022 Cash 4 % 2 % 4 % Equity Securities 17 25 26 Fixed Income Securities 78 65 45 Other Investments 1 8 25 Total 100 % 100 % 100 % The plans’ investment in equity securities primarily includes investments in U.S. and international companies of varying sizes and industries. The strategy of these investments is to 1) exceed the return of an appropriate benchmark for such equity classes and 2) through diversification, reduce volatility while enhancing long term real growth. The plans’ investment in fixed income securities includes government bonds, investment grade bonds and non-investment grade bonds across a broad and diverse issuer base. The strategy of these investments is to provide income and stability and to diversify the fixed income exposure of the plan assets, thereby reducing volatility. The Company’s approach to developing the expected long-term rate of return on pension plan assets is based on fair values and combines an analysis of historical investment performance by asset class, the Company’s investment guidelines and current and expected economic fundamentals. The following tables set forth, by category and within the fair value hierarchy, the fair value of the Company’s pension assets at December 31, 2023 and 2022: Fair Value Measurements at December 31, 2023 In millions Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Net Asset Value at December 31, 2023(b) Asset Category: Cash $ 7 $ 2 $ 2 $ — $ 3 Equity Securities: Domestic 101 3 1 — 97 Foreign 6 6 — — — Fixed Income Securities 281 21 259 1 — Other Investments: Diversified growth fund (a) 23 — 15 8 — Insurance Contracts 9 — — 9 — Total $ 427 $ 32 $ 277 $ 18 $ 100 Fair Value Measurements at December 31, 2022 In millions Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Net Asset Value at December 31, 2022 (b) Asset Category: Cash $ 15 $ 10 $ 2 $ — $ 3 Equity Securities: Domestic 94 5 1 — 88 Foreign 7 7 — — — Fixed Income Securities 180 15 165 — — Other Investments: Real estate 4 — 4 — — Liability Driven Investment 56 35 21 — — Diversified growth fund (a) 32 — 8 24 — Insurance Contracts 9 — — 9 — Total $ 397 $ 72 $ 201 $ 33 $ 91 (a) The fund invests in a combination of traditional investments (equities, bonds, and foreign exchange), seeking to achieve returns through active asset allocation over a three (b) Investments that are measured at net asset value (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. A reconciliation of fair value measurements of plan assets using significant unobservable inputs (Level 3) is as follows: In millions 2023 2022 Balance at January 1, $ 33 $ 33 Purchases — 11 Transfers Out, Net (17) (7) Foreign Currency Exchange 2 (4) Balance at December 31, $ 18 $ 33 Estimated Future Benefit Payments The following represents the Company’s estimated future pension and postretirement health care benefit payments through the year 2033: In millions Pension Plans Postretirement Health Care Benefits 2024 $ 29 $ 2 2025 30 2 2026 32 2 2027 33 2 2028 34 2 2029— 2033 183 9 Multi-Employer Plans Certain of the Company’s employees participate in multi-employer plans that provide both pension and other postretirement health care benefits to employees under union-employer organization agreements. Estimated liabilities have been established related to the partial or complete withdrawal from certain multi-employment benefit plans for facilities that have been closed. At December 31, 2023 and December 31, 2022, the Company has withdrawal liabilities of $17 million and $18 million, respectively, related to these plans, which is recorded as Compensation and Employee Benefits and Other Noncurrent Liabilities on the Consolidated Balance Sheets, which represents the Company's best estimate of the expected withdrawal liability. DEFINED CONTRIBUTION PLANS |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The U.S. and international components of Income before Income Taxes and Equity Income of Unconsolidated Entity consisted of the following: Year Ended December 31, In millions 2023 2022 2021 U.S. $ 852 $ 683 $ 237 International 80 33 52 Income before Income Taxes and Equity Income of Unconsolidated Entity $ 932 $ 716 $ 289 The provisions for Income Tax (Expense) Benefit on Income before Income Taxes and Equity Income of Unconsolidated Entity consisted of the following: Year Ended December 31, In millions 2023 2022 2021 Current Expense: U.S. $ (150) $ (25) $ (2) International (38) (38) (17) Total Current $ (188) $ (63) $ (19) Deferred (Expense) Benefit: U.S. (49) (137) (57) International 27 6 2 Total Deferred $ (22) $ (131) $ (55) Income Tax Expense $ (210) $ (194) $ (74) A reconciliation of Income Tax Expense (Benefit) on Income before Income Taxes and Equity Income of Unconsolidated Entity at the federal statutory rate of 21.0% compared with the Company’s actual Income Tax (Expense) Benefit is as follows: Year Ended December 31, In millions 2023 Percent 2022 Percent 2021 Percent Income Tax Expense at U.S. Statutory Rate $ (196) 21.0 % $ (150) 21.0 % $ (61) 21.0 % U.S. State and Local Tax Expense (34) 3.6 (29) 4.1 (12) 4.1 Permanent Items 2 (0.3) 2 (0.3) (9) 3.2 Provision to Return Adjustments (3) 0.3 4 (0.5) 4 (1.4) Change in Valuation Allowance 19 (2.1) (21) 2.9 (1) 0.4 Unrealized Foreign Exchange (7) 0.8 22 (3.1) 5 (1.7) International Tax Rate Differences (4) 0.5 (6) 0.8 (3) 1.0 U.S. Federal & State Tax Credits 22 (2.3) 9 (1.3) 13 (4.5) Domestic Minority Interest — — — — 2 (0.7) Deferred Adjustment due to IP Exit — — — — (4) 1.5 Russia Impairment (3) 0.3 (20) 2.8 — — Tax Effects Released from OCI — — (10) 1.4 — — Other (6) 0.7 5 (0.6) (8) 2.8 Income Tax Expense $ (210) 22.5 % $ (194) 27.2 % $ (74) 25.7 % The effective tax rate for 2023 is different from the statutory rate primarily due to a decrease in the Company’s valuation allowances in Sweden, Norway and the Netherlands of $22 million, the establishment of a valuation allowance against certain net deferred tax assets in Nigeria of $3 million, as well as tax benefits of $22 million related to U.S. federal, state and foreign income tax credits. The Company also recognized income tax expense of $7 million related to unrealized foreign currency activity for intercompany loans where the entity’s functional currency and the loan denomination are different than the tax reporting currency (primarily in Sweden). During 2022, tax expense differs from the amount at the statutory rate by $20 million due to impairment charges from the planned sale of the Company's Russian business that resulted in no corresponding tax benefit and due to the recording of $10 million of tax expense to release the tax expense remaining in Other Comprehensive Income after the settlement of certain swaps. The Company also recognized tax benefits of approximately $22 million related to deferred tax assets and liabilities recognized on unrealized foreign currency activity for intercompany loans where the entity’s functional currency and the loan denomination currency are different than the tax reporting currency (primarily in Sweden). However, a valuation allowance of approximately $25 million was recorded during the year against deferred tax assets in Sweden, including the deferred tax asset related to the unrealized foreign currency activity. Additionally, the Company recorded a tax benefit of approximately $5 million related to the release of a valuation allowance recorded against the net deferred tax assets of its Brazilian subsidiary based on historic earnings. As a result of the North America Consumer Packaging (“NACP”) Combination, during 2021, federal and state income taxes are not recorded with respect to consolidated domestic earnings attributable to the Company’s minority interest partner, resulting in a difference between the effective tax rate and the statutory tax rate. In addition, during 2021, the Company recognized tax expense of approximately $4 million related to the remeasurement of deferred tax assets for executive compensation as a result of IP’s exchange of its remaining shares in GPIP during the period and approximately $3 million related to the remeasurement of its net deferred tax liability for its UK subsidiaries due to the statutory tax rate increase enacted during the second quarter. The tax effects of differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities as of December 31 were as follows: In millions 2023 2022 Deferred Income Tax Assets: Compensation Based Accruals $ 34 $ 37 Net Operating Loss Carryforwards 74 103 Postretirement Benefits 24 26 Tax Credits 8 26 Capitalized Research & Development Costs 64 44 Unrealized Foreign Exchange — 28 Other 89 81 Valuation Allowance (37) (57) Total Deferred Income Tax Assets $ 256 $ 288 Deferred Income Tax Liabilities: Property, Plant and Equipment (672) (661) Goodwill & Other Intangibles (263) (280) Other (3) — Net Noncurrent Deferred Income Tax Liabilities $ (938) $ (941) Net Deferred Income Tax Liability $ (682) $ (653) The Company has evaluated the need to maintain a valuation allowance for deferred tax assets based on its assessment of whether it is more likely than not that deferred tax assets will be realized through the generation of future taxable income. Appropriate consideration was given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. The Company reviewed its deferred income tax assets as of December 31, 2023 and 2022, respectively, and determined that it is more likely than not that a portion will not be realized. A valuation allowance of $37 million and $57 million as of December 31, 2023 and 2022, respectively, is maintained on the deferred income tax assets for which the Company has determined that realization is not more likely than not. Of the total valuation allowance at December 31, 2023, $10 million relates to net deferred tax assets in Sweden, $24 million relates to net deferred tax assets in various other foreign jurisdictions and $3 million relates to credit carryforwards in certain U.S. states as well as U.S. foreign tax credit carryforwards. The need for a valuation allowance is made on a jurisdiction-by-jurisdiction basis. As of December 31, 2023, the Company concluded that due to cumulative pretax losses and the lack of sufficient future taxable income of the appropriate character, realization is not more likely than not on the net deferred income tax assets related primarily to the Company’s operations in Australia as well as certain operations in Germany and Nigeria. The following table represents a summary of the valuation allowances against deferred tax assets as of and for the three years ended December 31, 2023, 2022, and 2021, respectively: In millions Additions Deductions December 31, Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Credited to Costs and Expenses Credited to Other Accounts Balance at End of Period 2023 $ 57 $ 6 $ 1 $ (25) $ (2) $ 37 2022 38 29 1 (8) (3) 57 2021 34 4 4 (3) (1) 38 During 2023, the Company utilized it's remaining U.S. federal net operating loss carryforwards. The Company's U.S. state net operating loss carryforwards total $52 million and expire in various years through 2041. International net operating loss carryforward amounts total $296 million, of which substantially all have no expiration date. Tax Credit carryforwards total $8 million which expire in various years through 2042. Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: In millions 2023 2022 2021 Balance at January 1, $ 26 $ 24 $ 20 Additions for Tax Positions of Current Year 2 2 1 Additions for Tax Positions of Prior Years 8 1 3 Reductions for Tax Positions of Prior Years (2) (1) — Balance at December 31, $ 34 $ 26 $ 24 At December 31, 2023, $30 million of the total gross unrecognized tax benefits, if recognized, would affect the annual effective income tax rate. As of December 31, 2023, none of the total gross unrecognized tax benefits recorded are related to indefinite lived deferred tax assets and did not have an impact on total tax expense. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within its global operations in Income Tax Expense. The Company had an immaterial accrual for the payment of interest and penalties at December 31, 2023. The Company anticipates that an immaterial portion of the total unrecognized tax benefits at December 31, 2023 could change within the next twelve months. The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions and our income tax filings are regularly examined by federal, state and non-U.S. tax authorities. The Company’s 2018 U.S. federal corporate and partnership income tax filings are currently under examination by the Internal Revenue Service. With few exceptions, the Company is no longer subject to U.S. federal, state and local tax examinations for years before 2018. As of December 31, 2023, the Company has provided for deferred income taxes attributable to future foreign withholding tax expense related to the Company's equity investment in the joint venture, Rengo Riverwood Packaging, Ltd. In addition, Company provides deferred income taxes for future Canadian withholding tax to the extent of excess cash available for distribution after consideration of working capital needs and other debt settlement of its Canadian subsidiary, Graphic Packaging International Canada, ULC. The Company continues to assert that it is permanently reinvested in the cumulative earnings of its Canadian subsidiary in excess of the amount of cash that is on hand and available for distribution after consideration of working capital needs and other debt settlement. The Company determined that no deferred tax liability should be recorded related to the outside basis difference of its Canadian subsidiary as of December 31, 2023. The Company has not provided for deferred U.S. income taxes on approximately $92 million of its undistributed earnings in other international subsidiaries because of the Company’s intention to indefinitely reinvest these earnings outside the U.S. The determination of the amount of the unrecognized deferred U.S. income tax liability (primarily withholding tax in certain jurisdictions) on the unremitted earnings or any other associated outside basis difference is not practicable because of the complexities associated with the calculation. The Company has elected to recognize global intangible low-taxed income (“GILTI”) as period cost as incurred, therefore there are no deferred taxes recognized for basis differences that are expected to impact the amount of the GILTI inclusion upon reversal. |
FINANCIAL INSTRUMENTS, DERIVATI
FINANCIAL INSTRUMENTS, DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS, DERIVATIVES AND HEDGING ACTIVITIES | FINANCIAL INSTRUMENTS, DERIVATIVES AND HEDGING ACTIVITIES 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. 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 December 31, 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 2023 and 2022, there were no amounts of ineffectiveness. Additionally, there were no amounts excluded from the measure of effectiveness. As of December 31, 2021, the Company had interest rate swap positions with a notional value of $200 million, which matured in January 2022. As discussed in " Note 9 - Income Taxes ", a $10 million expense was recorded to release the tax expense remaining in Other Comprehensive Income after the settlement of these swaps in the first quarter of 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 65% of its expected natural gas usage for 2024. During 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 December 31, 2023 and 2022, multiple foreign currency forward exchange contracts existed, with maturities ranging up to three months. Those foreign currency exchange contracts outstanding at December 31, 2023 and 2022, when aggregated and measured in U.S. dollars at contractual rates at December 31, 2023 and 2022, respectively, had net notional amounts totaling $131 million and $111 million. Unrealized gains and losses resulting from these contracts are recognized in Other Expense (Income), Net and approximately offset corresponding recognized but unrealized gains and losses on the remeasurement of these accounts receivable. Deal Contingent Hedge On May 14, 2021, in connection with the AR Packaging acquisition, the Company entered into deal contingent foreign exchange forward contracts, with no upfront cash cost, to hedge €700 million of the acquisition price. These forward contracts settled October 29, 2021, immediately prior to the acquisition of AR Packaging and are accounted for as derivatives under ASC 815, Derivatives and Hedging. Realized losses of $48 million for the year ended December 31, 2021 resulting from these contracts are recognized in Business Combinations, Exit Activities and Other Special Charges, Net in the Consolidated Statements of Operations. For more information, see “ Note 1 - General Information ” of the Company's 2021 Annual Report on Form 10-K for the year ended December 31, 2021. Foreign Currency Movement Effect For the year ended December 31, 2023, 2022 and 2021 net currency exchange losses included in determining Income from Operations were $6 million, $3 million, and $3 million, respectively. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT The Company follows the fair value guidance integrated into the Fair Value Measurements and Disclosures topic of the FASB Codification in regards to financial and nonfinancial assets and liabilities. Nonfinancial assets and nonfinancial liabilities include those measured at fair value in goodwill impairment testing, asset retirement obligations initially measured at fair value, and those assets and liabilities initially measured at fair value in a business combination. The FASB’s guidance defines fair value, establishes a framework for measuring fair value and expands the fair value disclosure requirements. The accounting guidance applies to accounting pronouncements that require or permit fair value measurements. It indicates, among other things, that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The guidance defines fair value based upon an exit price model, whereby fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance clarifies that fair value should be based on assumptions that market participants would use, including a consideration of non-performance risk. Valuation Hierarchy The Fair Value Measurements and Disclosures topic establishes a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs — quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs — 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. Level 3 inputs — unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. An asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company has determined that its financial assets and financial liabilities include derivative instruments which are carried at fair value and are valued using Level 2 inputs in the fair value hierarchy. The Company uses valuation techniques based on discounted cash flow analyses, which reflects the terms of the derivatives and uses observable market-based inputs, including forward rates and uses market price quotations obtained from third party derivatives brokers, corroborated with information obtained from third party pricing service providers. Fair Value of Financial Instruments As of December 31, 2023 and 2022, 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 December 31, 2023 and December 31, 2022, the Company had commodity contract derivative liabilities, which were included in Other Accrued Liabilities on the Consolidated Balance Sheets, of $7 million and $12 million, respectively. The fair values of the Company’s other financial assets and liabilities at December 31, 2023 and 2022 approximately equal the carrying values reported on the 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 $5,039 million and $4,749 million, as compared to the carrying amounts of $5,217 million and $5,097 million as of December 31, 2023 and 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 in the Consolidated Statements of Operations for the year ended December 31, 2023 and 2022 is as follows: Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss Location in Statement of Operations Amount of Loss (Gain) Recognized in Statement of Operations Year Ended December 31, Year Ended December 31, In millions 2023 2022 2021 2023 2022 2021 Commodity Contracts $ 32 $ 2 $ (11) Cost of Sales $ 35 $ (12) $ (11) Foreign Currency Contracts — — (2) Other Expense (Income), Net — — 2 Interest Rate Swap Agreements (4) — — Interest Expense, Net (3) — 6 Total $ 28 $ 2 $ (13) $ 32 $ (12) $ (3) At December 31, 2023, the Company expects to reclassify $8 million of pre-tax loss 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 in the Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 is as follows: In millions 2023 2022 2021 Foreign Currency Contracts Other Expense (Income), Net $ (3) $ (9) $ (5) Deal Contingent Foreign Exchange Hedge (a) Business Combinations, Exit Activities and Other Special Charges, Net $ — $ — $ 48 (a) For more information, see “Note 10 - Financial Instruments, Derivatives and Hedging Activities". |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of Other Comprehensive Income (Loss) attributable to Graphic Packaging Holding Company are as follows: Year Ended December 31, 2023 2022 2021 Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Derivative Instruments Gain (Loss) $ 4 $ (1) $ 3 $ 22 $ (18) $ 4 $ 7 $ (2) $ 5 Pension and Postretirement Benefit Plans (Loss) Gain (5) 1 (4) (22) 13 (9) 53 (8) 45 Currency Translation Adjustment Gain (Loss) 61 4 65 (156) 8 (148) (28) — (28) Other Comprehensive Income (Loss) $ 60 $ 4 $ 64 $ (156) $ 3 $ (153) $ 32 $ (10) $ 22 The balances of Accumulated Other Comprehensive Loss Attributable to Graphic Packaging Holding Company, net of applicable taxes are as follows: December 31, In millions 2023 2022 Accumulated Derivative Instruments Loss $ (1) $ (4) Pension and Postretirement Benefit Plans (107) (103) Currency Translation Adjustment (205) (270) Accumulated Other Comprehensive Loss $ (313) $ (377) |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS The Company has entered into other long-term contracts principally for the purchase of fiber and chip processing along with commitments associated with building a new recycled paperboard manufacturing facility in Waco, Texas. The minimum purchase commitments extend beyond 2028. At December 31, 2023, total commitments under these contracts were as follows: In millions 2024 $ 713 2025 296 2026 19 2027 9 2028 8 Thereafter 24 Total $ 1,069 |
ENVIRONMENTAL AND LEGAL MATTERS
ENVIRONMENTAL AND LEGAL MATTERS | 12 Months Ended |
Dec. 31, 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 activities 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. |
BUSINESS SEGMENT AND GEOGRAPHIC
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION | BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION The Company has three reportable segments as follows: Paperboard Manufacturing , formerly referred to as the Paperboard Mills reportable segment, includes the seven North American paperboard facilities that produce recycled, unbleached and bleached paperboard, 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 Manufacturing segment's 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 Manufacturing segment to reflect the economics of the integration of these segments. Americas Paperboard Packaging includes paperboard packaging 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 sold primarily to CPG companies serving the food, beverage and consumer product markets, including healthcare and beauty, primarily in Europe. The Company allocates certain paperboard manufacturing 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 - Nature of Business and Summary of Significant Accounting Policies. ” The Company did not have any one customer who accounted for 10% or more of the Company's net sales during 2023, 2022 or 2021. Business segment information is as follows: Year Ended December 31, In millions 2023 2022 2021 NET SALES: Paperboard Manufacturing $ 1,022 $ 1,290 $ 1,007 Americas Paperboard Packaging 6,200 6,015 4,996 Europe Paperboard Packaging 2,024 1,973 992 Corporate/Other/Eliminations (a) 182 162 161 Total $ 9,428 $ 9,440 $ 7,156 INCOME (LOSS) FROM OPERATIONS: Paperboard Manufacturing (b)(c) $ (23) $ 45 $ (10) Americas Paperboard Packaging (c)(d) 1,088 800 456 Europe Paperboard Packaging (c)(e) 127 59 82 Corporate and Other (c) (18) 2 (121) Total $ 1,174 $ 906 $ 407 CAPITAL EXPENDITURES: Paperboard Manufacturing $ 479 $ 336 $ 615 Americas Paperboard Packaging 144 131 113 Europe Paperboard Packaging 101 43 37 Corporate and Other 80 39 37 Total $ 804 $ 549 $ 802 DEPRECIATION AND AMORTIZATION: Paperboard Manufacturing (b) $ 284 $ 242 $ 231 Americas Paperboard Packaging (d) 186 173 176 Europe Paperboard Packaging 113 109 53 Corporate and Other 36 29 29 Total $ 619 $ 553 $ 489 (a) Includes revenue from customers for the Australia and Pacific Rim operating segments. (b) Includes accelerated depreciation related to exit activities in 2023, 2022, and 2021 (see “ Note 18 - Exit Activities ”). (c) Includes expenses related to business combinations, other special charges, and exit activities (see “ Note 1 - General Information ”). (d) Includes accelerated depreciation related to exit activities in 2023 (see “ Note 18 - Exit Activities ”). (e) Includes impairment charges related to Russia. (see “ Note 19 - Impairment and Divestiture of Russian Business ”). December 31, In millions 2023 2022 2021 ASSETS AT DECEMBER 31: Paperboard Manufacturing $ 3,905 $ 3,516 $ 3,482 Americas Paperboard Packaging 4,220 3,822 3,682 Europe Paperboard Packaging 2,484 2,474 2,669 Corporate and Other 566 516 624 Total $ 11,175 $ 10,328 $ 10,457 Business geographic area information is as follows: Year Ended December 31, In millions 2023 2022 2021 NET SALES: United States $ 6,646 $ 6,741 $ 5,543 International (a) 2,782 2,699 1,613 Total $ 9,428 $ 9,440 $ 7,156 In millions 2023 2022 2021 LONG-LIVED ASSETS AT DECEMBER 31: United States $ 4,178 $ 3,813 $ 3,865 International (a) 814 766 812 Total $ 4,992 $ 4,579 $ 4,677 (a) Net Sales and long-lived assets of individual countries outside of the United States are not material. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Year Ended December 31, In millions, except per share data 2023 2022 2021 Net Income Attributable to Graphic Packaging Holding Company $ 723 $ 522 $ 204 Weighted Average Shares: Basic 308.2 308.8 297.1 Dilutive effect of RSUs 0.9 0.7 0.8 Diluted 309.1 309.5 297.9 Earnings Per Share — Basic $ 2.35 $ 1.69 $ 0.69 Earnings Per Share — Diluted $ 2.34 $ 1.69 $ 0.68 |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2023: In millions Derivatives 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 (21) (6) 65 38 Amounts Reclassified from Accumulated Other Comprehensive Loss (a) 24 2 — 26 Net Current-period Other Comprehensive Income (Loss) 3 (4) 65 64 Balance at December 31, 2023 $ (1) $ (107) $ (205) $ (313) (a) See following table for details about these reclassifications. The following represents reclassifications out of Accumulated Other Comprehensive Loss for the year ended December 31, 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 $ 35 Cost of Sales Interest Rate Swap Agreements (3) Interest Expense, Net 32 Total before Tax (8) Tax Expense $ 24 Total, Net of Tax Amortization of Defined Benefit Pension Plans: Actuarial Losses $ 5 (a) Total before Tax (1) Tax Benefit $ 4 Total, Net of Tax Amortization of Postretirement Benefit Plans: Actuarial Gains $ (3) (a) Total before Tax 1 Tax Expense $ (2) Total, Net of Tax Total Reclassifications for the Period $ 26 Total, Net of Tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see “ Note 8 - Pensions and Other Postretirement Benefits ”). |
EXIT ACTIVITIES
EXIT ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
EXIT ACTIVITIES | EXIT ACTIVITIES On February 7, 2023, the Company announced its plan to invest approximately $1 billion in a new recycled paperboard manufacturing facility in Waco, Texas. In conjunction with this project, the Company announced the closure of three smaller recycled paperboard manufacturing facilities to manage capacity while lowering costs. The costs associated with these exit activities are included in the table below for the year ended December 31, 2023. In the second quarter of 2023, the Company announced its decision to accelerate the closure of one of these three recycled paperboard manufacturing facilities 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 year ended December 31, 2023. During 2023, the Company decided to close multiple packaging facilities by the end of 2023 and early 2024. Production from these facilities will be consolidated into our existing packaging network. The costs associated with these exit activities are included in the table below for the year ended December 31, 2023. During the third quarter of 2023, the Company decided to discontinue the project in Texarkana to modify an existing paperboard machine to add swing capacity between bleached and unbleached paperboard in order to focus growth investments in the strategic expansion of recycled paperboard capacity. The Company incurred charges of $16 million within the Paperboard Manufacturing reportable segment related to the write-off of assets, which were primarily engineering, consulting, and permitting costs for this project. The costs associated with this project are included in the table below for the year ended December 31, 2023. In March 2022, the Company announced its decision to close the Norwalk, Ohio packaging facility and closed the facility in September 2022. The Company 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 year ended December 31, 2022. During 2019, the Company announced its plans to invest in a new recycled paperboard machine in Kalamazoo, Michigan. At the time of the announcement, the Company expected to close two of its smaller recycled paperboard manufacturing facilities 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 recycled paperboard manufacturing facilities. In the second quarter of 2022, the Company closed the Battle Creek, Michigan recycled paperboard manufacturing facility. The Company 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 year ended December 31, 2022. During the years ended December 31, 2023, 2022, and 2021, the Company recorded $89 million, $17 million and $38 million of exit costs, respectively, associated with these restructurings. Other costs associated with the start-up of the new recycled paperboard machine recorded in the period in which they are incurred. The following table summarizes the costs incurred during 2023, 2022 and 2021 related to these restructurings: Year Ended December 31, In millions Location in Statement of Operations 2023 2022 2021 Severance Costs and Other (a) Business Combinations, Exit Activities and Other Special Charges, Net $ 25 $ 1 $ 21 Asset Write-offs and Start-Up Costs (b) Business Combinations, Exit Activities and Other Special Charges, Net 22 9 — Accelerated Depreciation Cost of Sales 42 7 17 Total $ 89 $ 17 $ 38 (a) Costs incurred include activities for post-employment benefits, retention bonuses, incentives and professional services. (see “ Note 1 - Business Combinations, Exit Activities and Other Special Charges, 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, 2021 $ 8 Costs Incurred 1 Payments (6) Adjustments (a) (2) Balance at December 31, 2022 $ 1 Costs Incurred 25 Payments (4) Adjustments (a) (1) Balance at December 31, 2023 $ 21 (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 within the Paperboard Manufacturing reportable segment for post-employment benefits, retention bonuses and incentives of $3 million, and accelerated depreciation and inventory and asset write-offs of $27 million through December 31, 2023. No further charges or accelerated depreciation are expected related to Tama. In addition, due to the expected closures of the additional two recycled paperboard manufacturing facilities, the Company incurred charges within the Paperboard Manufacturing reportable segment for post-employment benefits, retention bonuses and incentives of $13 million, and accelerated depreciation and inventory and asset write-offs of $5 million through December 31, 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 packaging facilities, the Company incurred charges within the Americas Paperboard Packaging and Europe Paperboard Packaging reportable segments for post-employment benefits, retention bonuses and incentives of $9 million through December 31, 2023. The Company also incurred charges within the Americas Paperboard Packaging reportable segment for accelerated depreciation and inventory and asset write-offs of $10 million through December 31, 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 $10 million to $15 million and for accelerated depreciation and inventory and asset write-offs in the range of $15 million to $20 million through 2024. Additionally, the Company has incurred start-up charges within the Paperboard Manufacturing reportable segment for the new recycled paperboard manufacturing facility in Waco of $2 million through December 31, 2023. The Company expects to incur total start-up charges of approximately $25 million to $30 million for the new recycled paperboard manufacturing facility through 2026. |
IMPAIRMENT AND DIVESTITURE OF R
IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS | IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS In the second quarter of 2022, the Company began the process of divesting its interests in its two packaging facilities in Russia (the “Russian Operations”), which met the criteria to be considered a business, through a sale of 100% of the outstanding shares. The assets and liabilities to be disposed of in connection with this transaction met the held for sale criteria as of June 30, 2022 and each subsequent quarter end through the date of sale. During 2022 and 2023, the Company incurred $106 million of impairment losses associated with the Russian Operations including $96 million in 2022, which includes $12 million of goodwill impairment initially recognized in Q2 2022 and $10 million in 2023, all of which are included in the Business Combinations, Exit Activities, and Other Special Charges, Net line in the Consolidated Statement of Operations. On November 30, 2023, the Company completed the sale to former members of management of its Russian Operations (the "Buyer") for total consideration of $62 million, which was primarily a long-term loan to the Buyer with a maturity date in 2038 (the “Vendor Loan”). Given the current government sanctions and restrictions on movement of currency out of Russia to satisfy payments on the notes, the Company placed a valuation allowance of $48 million against the Vendor Loan receivable. The Vendor Loan, along with the other transaction agreements, grants the Buyer full power to direct the activities that most significantly impact the Russian Operations and economic rights over the Russian Operations, with no power or participating rights granted to the Company. There are, however, security rights in place to protect and facilitate the repayment of the Vendor Loan. Other rights included in the sale are contingent in nature and the Company does not believe such rights have significant value nor do they confer power to Company in evaluating which party is the primary beneficiary of this VIE. We will continue to monitor such rights and their impacts to the Company, if any, in the future. The Company has concluded that it is not the primary beneficiary of the business upon closing of the sale, and the Russian Operations were deconsolidated as of that date. The Vendor Loan, net is included in Other Assets on the Consolidated Balance Sheet. On the date of the sale, the Company recorded a final additional loss on the sale of $4 million, which is recorded in the Business Combinations, Exit Activities, and Other Special Charges, Net line in the Consolidated Statement of Operations. The operating results of the Russian Operations for the eleven months ended November 30, 2023 are included in the Company's Sales and Net Income in the Consolidated Statements of Operations. Total Net Sales and Net Income for the Russian Operations during this time were $90 million and $8 million, respectively. In addition, the Company historically had an intercompany payable to the Russian Operations. As of the date of the sale, the intercompany payable was converted to an external third-party loan payable (the “Loan Payable”). The Loan Payable will mature in 2037. The Loan Payable totaling $35 million is reflected in the Other Noncurrent Liabilities on the Consolidated Balance Sheet. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In connection with the NACP Combination, the Company entered into agreements with International Paper Company, a New York corporation (“IP”) for transition services, fiber procurement fees, and corrugated products and ink supply. Payments to IP for the twelve months ended December 31, 2021 were $4 million for fiber procurement fees (related to pass through wood purchases of $81 million) and $13 million for corrugated products. IP has no ownership interest remaining in GPIP as of May 21, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On February 16, 2024, the Company announced that its Board of Directors declared a quarterly dividend of $0.10 per share of common stock to stockholders of record at the close of business on March 15, 2024. The dividend is payable on April 5, 2024. On February 20, 2024, the Company entered into a definitive agreement with Clearwater Paper Corporation to sell all of the assets associated with its Augusta, Georgia paperboard manufacturing facility for approximately $700 million in cash. The transaction is expected to close in the second quarter of 2024, subject to regulatory approvals and other customary closing conditions. |
NATURE OF BUSINESS AND SUMMAR_2
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Company’s 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. The Company is a party to a Japanese joint venture, Rengo Riverwood Packaging, Ltd. in which it holds a 50% ownership interest that is accounted for using the equity method. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Estimates are used in accounting for, among other things, pension benefits, retained insurable risks, slow-moving and obsolete inventory, allowance for doubtful accounts, useful lives for depreciation and amortization, impairment testing of goodwill and long-lived assets, fair values related to acquisition accounting, fair value of derivative financial instruments, share based compensation, deferred income tax assets and potential income tax assessments, and loss contingencies. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include bank deposits and other marketable securities that are highly liquid with maturities of three months or less. |
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 |
Concentration of Credit Risk | Concentration of Credit Risk The Company’s cash, cash equivalents, and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. Accounts receivable are derived from revenue earned from customers located in the U.S. and internationally and generally do not require collateral. For the years ended December 31, 2023, 2022, and 2021, no customer accounted for more than 10% of net sales. |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value with cost determined based on standard (which approximates actual), average or actual cost. Work in progress and finished goods inventories are valued at the cost of raw material consumed plus direct manufacturing costs (such as labor, utilities and supplies) as incurred and an applicable portion of manufacturing overhead. Inventories are stated net of an allowance for slow-moving and obsolete inventory. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Betterments, renewals and extraordinary repairs that extend the life of the asset are capitalized; other repairs and maintenance charges are expensed as incurred. The Company’s cost and related accumulated depreciation applicable to assets retired or sold are removed from the accounts and the gain or loss on disposition is included in income from operations. Interest is capitalized on assets under construction for one year or longer with an estimated spending of $1 million or more. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Capitalized interest was $8 million, $5 million and $14 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company assesses its long-lived assets, including certain identifiable intangibles, for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. To analyze recoverability, the Company projects future cash flows, undiscounted and before interest, over the remaining life of such assets. If these projected cash flows are less than the carrying amount, an impairment would be recognized, resulting in a write-down of assets with a corresponding charge to earnings. The impairment loss is measured based upon the difference between the carrying amount and the fair value of the assets. The Company assesses the appropriateness of the useful life of its long-lived assets periodically. |
Intangible Assets | Intangible Assets Intangible assets with a determinable life are amortized on a straight-line or accelerated basis over their useful lives. The amortization expense for each intangible asset is recorded in the Consolidated Statements of Operations according to the nature of that asset. |
Goodwill | Goodwill The Company tests goodwill for impairment annually as of October 1, as well as whenever events or changes in circumstances suggest that the estimated fair value of a reporting unit may no longer exceed its carrying amount. The Company tests goodwill for impairment at the reporting unit level, which is an operating segment or a level below an operating segment, which is referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. Two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. Potential goodwill impairment is measured at the reporting unit level by comparing the reporting unit’s carrying amount (including goodwill), to the fair value of the reporting unit. When performing the quantitative analysis, the estimated fair value of each reporting unit is determined by utilizing a discounted cash flow analysis based on the Company’s forecasts, discounted using a weighted average cost of capital and market indicators of terminal year cash flows based upon a multiple of EBITDA. If the carrying amount of a reporting unit exceeds its estimated fair value, goodwill is considered impaired. In determining fair value, management relies on and considers a number of factors, including but not limited to, future operating results, business plans, economic projections of revenues and operating margins, forecasts including future cash flows, and market data and analysis, including market capitalization. The assumptions used are based on what a hypothetical market participant would use in estimating fair value. Fair value determinations are sensitive to changes in the factors described above. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment. Periodically, the Company may perform a qualitative impairment analysis of goodwill associated with each of its reporting units to determine if it is more likely than not that the carrying value of a reporting unit exceeded its fair value. However, the Company performed a quantitative impairment test as of October 1, 2023, and concluded goodwill was not impaired for any of its reporting units. |
Retained Insurable Risks | Retained Insurable Risks It is the Company’s policy to self-insure or fund a portion of certain expected losses related to group health benefits and workers’ compensation claims. Provisions for expected losses are recorded based on the Company’s estimates, on an undiscounted basis, of the aggregate liabilities for known claims and estimated claims incurred but not reported. |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations are accounted for in accordance with the provisions of the Asset Retirement and Environmental Obligations |
Accounts Payable and Supplier Finance Program | Accounts Payable and Supplier Finance Program |
International Currency | International Currency The functional currency of the international subsidiaries is usually the local currency for the country in which the subsidiaries own their primary assets. The translation of the applicable currencies into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. Any related translation adjustments are recorded directly to a separate component of Shareholders’ Equity, unless there is a sale or substantially complete liquidation of the underlying foreign investments. Gains and losses on foreign currency transactions are included in Other Expense (Income) in the Consolidated Statements of Operations, Net for the period in which the exchange rate changes. The Company pursues a currency hedging program which utilizes derivatives to reduce the impact of foreign currency exchange fluctuations on its consolidated financial results. Under this program, the Company has entered into forward exchange contracts in the normal course of business to hedge certain foreign currency denominated transactions. Realized and unrealized gains and losses on these forward contracts are included in the measurement of the basis of the related foreign currency transaction when recorded. |
Revenue Recognition | Revenue Recognition The Company has two primary activities, manufacturing and the converting of paperboard for and into consumer packaging made from renewable resources, from which it generates revenue from contracts with customers. Revenue is disaggregated primarily by geography and type of activity as further explained in “ Note 15 - Business Segment and Geographic Area 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. 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. |
Shipping and Handling | Shipping and Handling The Company includes shipping and handling costs in Cost of Sales. |
Research and Development | Research and Development |
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 of supplier finance programs and requires buyers in a supplier finance program to disclose sufficient information about the program to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. 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 adoption of this accounting standard did not have an impact on the Company’s financial position, results of operations and cash flows. 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. Accounting Standards Not Yet Adopted 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 . This ASU clarifies that contractual sale restrictions should not be considered in measuring the fair value of equity securities. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods therein, with early adoption permitted. The Company will continue evaluating the impact of this ASU on its disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will continue evaluating the impact of this ASU on its disclosures. |
NATURE OF BUSINESS AND SUMMAR_3
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2023 and 2022, respectively: Year Ended December 31, In millions 2023 2022 Receivables Sold and Derecognized $ 3,696 $ 3,299 Proceeds Collected on Behalf of Financial Institutions 3,646 3,179 Net Proceeds Received from Financial Institutions 28 152 Deferred Purchase Price at December 31 (a) 1 — Pledged Receivables at December 31 150 197 (a) Included in Other Current Assets on the 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 Supplier Finance Program | The rollforward of the Company's outstanding obligations confirmed as valid under its supplier finance program for the years ended December 31, 2023 and 2022 are as follows: Year Ended December 31, In millions 2023 2022 Confirmed Obligations Outstanding at the Beginning of the Year $ 34 $ 26 Invoices Confirmed During the Year 117 127 Confirmed Invoices Paid During the Year (121) (119) Confirmed Obligations Outstanding at the End of the Year $ 30 $ 34 |
Schedule Of Depreciation And Amortization | Depreciation and Amortization Depreciation is computed using the straight-line method based on the following estimated useful lives of the related assets: Buildings 40 years Land improvements 15 years Machinery and equipment 3 to 40 years Furniture and fixtures 10 years Automobiles, trucks and tractors 3 to 5 years |
Schedule of Finite-Lived Intangible Assets | The following table displays the intangible assets that continue to be subject to amortization and accumulated amortization expense as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 In millions Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable Intangible Assets: Customer Relationships (a) $ 1,574 $ (796) $ 778 $ 1,382 $ (706) $ 676 Non-Compete Agreements (a) 3 — 3 — — — Patents, Trademarks, Licenses, Leases and Developed Technology 157 (118) 39 152 (111) 41 Total $ 1,734 $ (914) $ 820 $ 1,534 $ (817) $ 717 (a) Please see “ Note 4 - Business Combinations ” for the intangibles acquired with the Tama Paperboard, LLC ("Tama”) and Bell Incorporated (“Bell”) acquisitions. |
Schedule of Goodwill | The following is a rollforward of goodwill by reportable segment: In millions Paperboard Manufacturing Americas Paperboard Packaging Europe Paperboard Packaging Corporate/Other (a) Total Balance at December 31, 2021 $ 506 $ 968 $ 528 $ 13 $ 2,015 Acquisition of Businesses — 10 11 — 21 Impairment of Russian Business (b) — — (12) — (12) Foreign Currency Effects — 2 (46) (1) (45) Balance at December 31, 2022 $ 506 $ 980 $ 481 $ 12 $ 1,979 Acquisition of Businesses (c) 59 42 — — 101 Foreign Currency Effects — 6 18 (1) 23 Balance at December 31, 2023 $ 565 $ 1,028 $ 499 $ 11 $ 2,103 (a) Includes Australia operating segment. (b) Relates to the Company's divestiture of its Russian business. Please see "Note 19 - Impairment and Divestiture of Russian Business" for more information. (c) Represents goodwill related to the Tama and Bell acquisitions. |
Schedule of Restructuring and Other Special Charges | The following table summarizes the transactions recorded in Business Combinations, Exit Activities and Other Special Charges, Net in the Consolidated Statements of Operations for the year ended December 31: In millions 2023 2022 2021 Charges Associated with Business Combinations (a) $ 4 $ 23 $ 84 Exit Activities (b) 47 10 21 Charges Associated with a Divestiture (c) 14 96 — Other Special Charges (d) 9 2 33 Total $ 74 $ 131 $ 138 (a) These costs relate to the Americraft Carton, Inc. (“Americraft”), AR Packaging Group AB (“AR Packaging”), Tama, and the Bell acquisitions (see “ Note 4 - Business Combinations ”). (b) Relates to the Company's closures of its three smaller recycled paperboard manufacturing facilities (which includes Tama), the closures of multiple packaging facilities, and the discontinuation of the Texarkana swing capacity project (see “ Note 18 - Exit Activities ”). (c) Relates to the sale of the Company's Russian operations (see “ Note 19 - Impairment and Divestiture of Russian Business ” ). (d) These costs include $9 million related to the devaluation of the Nigerian Naira in 2023. |
Schedule of Share Repurchases During the Period | The following presents the Company's share repurchases for the years ended December 31, 2023, 2022, and 2021: Amount repurchased in millions, except share and per share amounts Amount Repurchased Number of Shares Repurchased Average Price, per Share 2023 $ 54 2,389,224 $ 22.80 2022 $ 28 1,315,839 $ 20.91 2021 $ — — $ — |
SUPPLEMENTAL BALANCE SHEET DA_2
SUPPLEMENTAL BALANCE SHEET DATA (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Receivables, Net | The following tables provide disclosure related to the components of certain line items included on the Consolidated Balance Sheets. Receivables, Net: In millions 2023 2022 Trade $ 739 $ 825 Less: Allowance (23) (21) 716 804 Other 119 75 Total $ 835 $ 879 |
Schedule of Inventories, Net by Major Class | Inventories, Net by major class: In millions 2023 2022 Finished Goods $ 602 $ 515 Work in Progress 201 218 Raw Materials 684 645 Supplies 267 228 Total $ 1,754 $ 1,606 |
Schedule of Property, Plant and Equipment, Net | Property, Plant and Equipment, Net: In millions 2023 2022 Property, Plant and Equipment, at Cost: Land and Improvements $ 195 $ 187 Buildings (a) 1,122 1,067 Machinery and Equipment (b) 7,686 7,383 Construction-in-Progress 657 234 9,660 8,871 Less: Accumulated Depreciation (a)(b) (4,668) (4,292) Total $ 4,992 $ 4,579 (a) Includes gross assets under finance lease of $146 million and related accumulated depreciation of $31 million as of December 31, 2023, and gross assets under finance lease of $146 million and related accumulated depreciation of $22 million as of December 31, 2022. (b) |
Schedule of Other Accrued Liabilities | Other Accrued Liabilities: In millions 2023 2022 Operating Lease Liabilities, current portion $ 62 $ 66 Accrued Payables 61 66 Other Accrued Taxes 49 51 Accrued Customer Rebates 48 44 Dividends Payable 31 31 Deferred Revenue 30 32 Income Tax Payable 15 7 Fair Value of Derivatives, current portion 13 12 Accrued Severance 6 3 Unfavorable Supply Agreement 2 2 Other (a) 78 97 Total $ 395 $ 411 (a) |
Schedule of Other Noncurrent Liabilities | Other Noncurrent Liabilities: In millions 2023 2022 Operating Lease Liabilities, noncurrent portion $ 189 $ 184 FIN48 Liabilities 38 4 Deferred Compensation 30 19 Multi-Employer Plans 17 18 Workers Compensation Reserve 8 8 Deferred Revenue 8 8 Unfavorable Supply Agreement 2 3 Other 68 22 Total $ 360 $ 266 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow Used in Operations Due to Changes in Operating Assets and Liabilities | Cash Flow (Used In) Provided by Operations Due to Changes in Operating Assets and Liabilities, net of acquisitions: In millions 2023 2022 2021 Receivables, Net $ (39) $ (184) $ (106) Inventories, Net (117) (268) (80) Other Current Assets (15) 2 (12) Other Assets (19) (1) (22) Accounts Payable (140) 132 77 Compensation and Employee Benefits (25) 87 (15) Income Taxes 7 (2) (6) Interest Payable 12 16 4 Other Accrued Liabilities (22) (11) 3 Other Noncurrent Liabilities 50 11 (72) Total $ (308) $ (218) $ (229) |
Schedule of Cash Paid for Interest and Cash Paid, Net of Refunds, for Income Taxes | Cash paid for interest and cash paid, net of refunds, for income taxes was as follows: In millions 2023 2022 2021 Interest $ 221 $ 176 $ 116 Income Taxes $ 157 $ 43 $ 25 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Allocation | The preliminary purchase price allocation as of December 31, 2023 is as follows: In millions Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 264 Cash & Cash Equivalents 3 Receivables, Net 19 Inventories, Net 17 Property, Plant and Equipment 30 Intangible Assets (a) 161 Other Assets 15 Total Assets Acquired 245 Current Liabilities 11 Other Noncurrent Liabilities 12 Total Liabilities Assumed 23 Net Assets Acquired 222 Goodwill 42 Purchase Consideration Transferred $ 264 (a) Intangible Assets primarily consists of Customer Relationships with a weighted average life of approximately 15 years. The final purchase price allocation is as follows: In millions Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 292 Receivables, Net 22 Inventories, Net 36 Property, Plant and Equipment, Net 94 Intangible Assets, Net (a) 74 Other Assets 1 Total Assets Acquired 227 Current Liabilities 13 Total Liabilities Assumed 13 Net Assets Acquired 214 Goodwill 78 Total Estimated Fair Value of Net Assets Acquired $ 292 (a) Intangible Assets, Net, primarily consists of Customer Relationships with a weighted average life of approximately 15 years. The final purchase price allocation is as follows: In millions Amounts Recognized as of Acquisition Date (as adjusted) (a) Total Purchase Consideration $ 1,487 Cash Acquired 75 Receivables, Net 206 Inventories 166 Other Current Assets 12 Property, Plant and Equipment (b) 556 Intangible Assets (c) 409 Other Assets 62 Total Assets Acquired 1,486 Accounts Payable 109 Compensation and Employee Benefits 12 Other Accrued Liabilities 99 Short-Term Debt and Current Portion of Long-Term Debt 9 Long-Term Debt 17 Deferred Income Tax Liabilities 139 Accrued Pension and Postretirement Benefits 55 Other Noncurrent Liabilities 43 Noncontrolling Interests 2 Total Liabilities Assumed 485 Net Assets Acquired 1,001 Goodwill 486 Total Estimated Fair Value of Net Assets Acquired $ 1,487 (a) The amounts were translated from Euro to USD using the rate at the acquisition date of 1.1539. (b) Property, Plant and Equipment primarily consists of Machinery and Equipment of $374 million with a weighted average life of approximately 13 years. (c) Intangible Assets primarily consists of Customer Relationships of $401 million with a weighted average life of approximately 15 years. |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 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 2023 2022 Short Term Borrowings $ 18 $ 16 Current Portion of Finance Leases 7 11 Current Portion of Long-Term Debt (a) 739 26 Total Short-Term Debt and Current Portion of Long-Term Debt $ 764 $ 53 (a) Includes the 0.821% and 4.125% Senior Notes due 2024. |
Schedule of Long-term Debt Instruments | Long-Term Debt is comprised of the following: In millions 2023 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 4.13%, 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 4.78%, 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 3.53%, 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) 321 311 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) 106 108 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 December 31, 2023), effective rate of 6.59%, payable in 2028 (a) 250 250 Senior Secured Term Loan Facilities with interest payable at various dates at floating rates (6.32% at December 31, 2023) payable through 2026 (a) 508 529 Senior Secured Term Loan Facility (€206 million) with interest payable at various dates at floating rates (5.23% at December 31, 2023) payable through 2026 (a) 227 225 Senior Secured Revolving Credit Facilities with interest payable at floating rates (6.96% at December 31, 2023) payable in 2026 (a)(c) 774 634 Finance Leases 161 170 Other 6 15 Total Long-Term Debt Including Current Portion 5,378 5,267 Less: Current Portion 746 37 Total Long-Term Debt Excluding Current Portion 4,632 5,230 Less: Unamortized Deferred Debt Issuance Costs 23 30 Total Long-Term Debt $ 4,609 $ 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 6.61% and 3.52% as of December 31, 2023 and 2022, respectively. |
Schedule of Credit Facilities | The following describes the Company's senior secured term loans and revolving credit facilities within the Fourth Amended and Restated Credit Agreement: Document (a) Provision Expiration Fourth Amended and Restated Credit Agreement • Increased the domestic revolving credit facility by $400 million to $1,850 million. • Increased the European revolving credit facility by €7 million to €145 million. • Decreased the Japanese revolving credit facility by ¥850 million to ¥1,650 million, and • Reduced the term loan by approximately $5 million to $550 million. LIBOR plus variable spread (between 125 basis points and 200 basis points) depending on consolidated total leverage ratio. April 2026 Amendment 1 Increased the European revolving credit facility by €25 million to €170 million. Added Incremental EUR Term Loan Facility of €210 million. April 2026 Incremental Term A-2 Facility Amendment Incremental $425 million term loan facility under the Fourth Amended and Restated Credit Agreement with a delayed draw feature, which was exercised in January 2021. January 2028 Incremental Term A-3 Facility Amendment Incremental $250 million term loan facility under the Fourth Amended and Restated Credit Agreement, which was exercised in July 2021. July 2028 Second Incremental Term A-4 Facility Amendment Incremental $400 million term loan facility under the Fourth Amended and Restated Credit Agreement, which was funded in October 2021, and settled in November 2021. November 2021 (a) The Company's obligations under the Fourth Amended and Restated Credit Agreement (as amended by the Incremental Term A-3 Facility Amendment, the First Amendment, the Incremental Term A-4 Facility Amendment and the Second Amendment (collectively, the “Current Credit Agreement”) are secured by substantially all of the Company's domestic assets. |
Schedule of Commitments, Amounts Outstanding, and Amounts Available Under Revolving Credit Facilities | At December 31, 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 Senior Secured Domestic Revolving Credit Facility (a) $ 1,850 $ 774 $ 1,071 Senior Secured International Revolving Credit Facilities 200 — 200 Other International Facilities 53 24 29 Total $ 2,103 $ 798 $ 1,300 (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 $5 million as of December 31, 2023. These letters of credit are primarily used as security against its self-insurance obligations and workers' compensation obligations. These letters of credit expire at various dates throughout 2024 unless extended. |
Schedule of Maturities of Long-term Debt | Long-Term Debt maturities (excluding finance leases) are as follows: In millions 2024 $ 739 2025 43 2026 1,938 2027 300 2028 1,125 After 2028 1,072 Total $ 5,217 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | The components of lease costs are as follows: Year Ended December 31, In millions 2023 2022 Finance lease costs: Amortization of right-of-use asset $ 14 $ 11 Interest on lease liabilities 9 8 Operating lease costs 86 82 Short-term lease costs 29 21 Variable lease costs 14 16 Total lease costs, net $ 152 $ 138 Supplemental cash flow information related to leases was as follows: Year Ended December 31, In millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 84 $ 83 Operating cash flows from finance leases 9 8 Financing cash flows from finance leases 9 9 Right-of-use assets obtained in exchange for lease obligations: Operating leases 70 52 Finance leases — 42 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 31, In millions, except lease term and discount rate Balance Sheet Classification 2023 2022 Operating Leases: Operating lease right-of-use asset Other Assets $ 228 $ 245 Current operating lease liabilities Other Accrued Liabilities $ 62 $ 66 Noncurrent operating lease liabilities Other Noncurrent Liabilities 189 184 Total operating lease liabilities $ 251 $ 250 Finance Leases: Property, Plant and Equipment $ 197 $ 197 Accumulated depreciation (52) (38) Property, Plant and Equipment, net $ 145 $ 159 Current finance lease liabilities Short-Term Debt and Current Portion of Long-Term Debt $ 7 $ 11 Noncurrent finance lease liabilities Long-Term Debt 154 159 Total finance lease liabilities $ 161 $ 170 Weighted Average Remaining Lease Term (Years): Operating leases 6 7 Finance leases 16 16 Weighted Average Discount Rate: Operating leases 4.10 % 3.76 % Finance leases 5.17 % 5.31 % |
Schedule of Maturities of Lease Liabilities, Operating Leases | Maturities of lease liabilities are as follows: In millions Year ending December 31, Operating Leases Finance Leases 2024 $ 69 $ 16 2025 56 15 2026 43 14 2027 34 15 2028 21 16 Thereafter 59 165 Total lease payments $ 282 $ 241 Less imputed interest (31) (80) Total $ 251 $ 161 |
Schedule of Maturities of Lease Liabilities, Finance Leases | Maturities of lease liabilities are as follows: In millions Year ending December 31, Operating Leases Finance Leases 2024 $ 69 $ 16 2025 56 15 2026 43 14 2027 34 15 2028 21 16 Thereafter 59 165 Total lease payments $ 282 $ 241 Less imputed interest (31) (80) Total $ 251 $ 161 |
STOCK INCENTIVE PLANS (Tables)
STOCK INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of RSUs and Stock Awards Granted | Data concerning RSUs and Stock Awards granted in the years ended December 31 is as follows: 2023 2022 2021 RSUs — Employees and Non-Employee Directors 1,780,345 1,943,769 1,680,997 Weighted-average grant date fair value $ 23.74 $ 20.19 $ 16.14 Stock Awards — Board of Directors 25,588 34,160 55,055 Weighted-average grant date fair value $ 25.01 $ 20.49 $ 17.80 |
Schedule of Nonvested RSU Activity | A summary of the changes in the number of unvested RSUs from December 31, 2020 to December 31, 2023 is presented below: RSUs Weighted Average Grant Date Fair Value Outstanding — December 31, 2020 5,141,706 $ 14.02 Granted (a) 1,680,997 16.14 Released (2,121,203) 14.88 Forfeited (359,100) 14.39 Performance adjustment (b) 587,461 15.09 Outstanding — December 31, 2021 4,929,861 $ 14.47 Granted (a) 1,943,769 20.19 Released (2,180,435) 12.34 Forfeited (193,145) 17.59 Performance adjustment (b) 324,814 12.52 Outstanding — December 31, 2022 4,824,864 $ 17.48 Granted (a) 1,780,345 23.74 Released (2,313,891) 15.62 Forfeited (102,583) 20.21 Performance adjustment (b) 753,702 15.59 Outstanding — December 31, 2023 4,942,437 $ 20.20 (a) Grant activity for all performance-based RSUs is disclosed at target. (b) Reflects the number of RSUs paid out above target levels based on actual performance measured at the end of the performance period. |
PENSIONS AND OTHER POSTRETIRE_2
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 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 Year Ended December 31, In millions 2023 2022 2021 2023 2022 2021 Components of Net Periodic Cost: Service Cost $ 9 $ 14 $ 15 $ — $ — $ — Interest Cost 22 12 10 2 1 1 Expected Return on Plan Assets (23) (21) (19) — — — Amortization of Actuarial Loss (Gain) 5 3 5 (3) (2) (2) Net Periodic Cost (Benefit) $ 13 $ 8 $ 11 $ (1) $ (1) $ (1) |
Schedule of Assumptions Used | Certain assumptions used in determining the pension and postretirement expenses were as follows: Pension Benefits Postretirement Benefits Year Ended December 31, 2023 2022 2021 2023 2022 2021 Weighted Average Assumptions: Discount Rate 4.86 % 2.46 % 2.11 % 5.12 % 2.92 % 2.52 % Rate of Increase in Future Compensation Levels 3.16 % 1.80 % 3.62 % — — — Expected Long-Term Rate of Return on Plan Assets 5.59 % 3.86 % 3.59 % — — — Initial Health Care Cost Trend Rate — — — 7.25 % 6.15 % 6.40 % Ultimate Health Care Cost Trend Rate — — — 4.50 % 4.50 % 4.50 % Ultimate Year — — — 2032 2031 2028 |
Schedule of Net Funded Status | The following table sets forth the funded status of the Company’s pension and postretirement plans as of December 31: Pension Benefits Postretirement Benefits In millions 2023 2022 2023 2022 Change in Benefit Obligation: Benefit Obligation at Beginning of Year $ 471 $ 627 $ 26 $ 33 Service Cost 9 14 — — Interest Cost 22 12 2 1 Net Actuarial Loss (Gain) 10 (152) — (7) Foreign Currency Exchange 10 (27) — — Benefits Paid (28) (24) (2) (1) Acquisition — 12 — — Other — 9 — — Benefit Obligation at End of Year $ 494 $ 471 $ 26 $ 26 Change in Plan Assets: Fair Value of Plan Assets at Beginning of Year $ 397 $ 557 $ — $ — Actual Return on Plan Assets 34 (149) — — Employer Contributions 14 24 2 1 Foreign Currency Exchange 10 (27) — — Benefits Paid (28) (24) (2) (1) Acquisition — 7 — — Other — 9 — — Fair Value of Plan Assets at End of Year $ 427 $ 397 $ — $ — Plan Assets Less than Projected Benefit Obligation $ (67) $ (74) $ (26) $ (26) Amounts Recognized on the Consolidated Balance Sheets Consist of: Pension Assets $ 18 $ 19 $ — $ — Accrued Pension and Postretirement Benefits Liability — Current $ (4) $ (5) $ (3) $ (3) Accrued Pension and Postretirement Benefits Liability — Noncurrent $ (81) $ (88) $ (23) $ (23) Accumulated Other Comprehensive Income: Net Actuarial Loss (Gain) $ 83 $ 82 $ — $ (1) Prior Service Cost (Credit) $ 4 $ 3 $ (19) $ (21) Weighted Average Calculations: Discount Rate 4.69 % 4.86 % 4.96 % 5.12 % Rates of Increase in Future Compensation Levels 2.90 % 3.16 % — — Initial Health Care Cost Trend Rate — — 8.50 % 7.25 % Ultimate Health Care Cost Trend Rate — — 4.45 % 4.50 % Ultimate Year — — 2033 2032 |
Schedule of Allocation of Plan Assets | The weighted average allocation of plan assets and the target allocation by asset category is as follows: Target 2023 2022 Cash 4 % 2 % 4 % Equity Securities 17 25 26 Fixed Income Securities 78 65 45 Other Investments 1 8 25 Total 100 % 100 % 100 % |
Schedule of Fair Value of Plan Assets | The following tables set forth, by category and within the fair value hierarchy, the fair value of the Company’s pension assets at December 31, 2023 and 2022: Fair Value Measurements at December 31, 2023 In millions Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Net Asset Value at December 31, 2023(b) Asset Category: Cash $ 7 $ 2 $ 2 $ — $ 3 Equity Securities: Domestic 101 3 1 — 97 Foreign 6 6 — — — Fixed Income Securities 281 21 259 1 — Other Investments: Diversified growth fund (a) 23 — 15 8 — Insurance Contracts 9 — — 9 — Total $ 427 $ 32 $ 277 $ 18 $ 100 Fair Value Measurements at December 31, 2022 In millions Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Net Asset Value at December 31, 2022 (b) Asset Category: Cash $ 15 $ 10 $ 2 $ — $ 3 Equity Securities: Domestic 94 5 1 — 88 Foreign 7 7 — — — Fixed Income Securities 180 15 165 — — Other Investments: Real estate 4 — 4 — — Liability Driven Investment 56 35 21 — — Diversified growth fund (a) 32 — 8 24 — Insurance Contracts 9 — — 9 — Total $ 397 $ 72 $ 201 $ 33 $ 91 (a) The fund invests in a combination of traditional investments (equities, bonds, and foreign exchange), seeking to achieve returns through active asset allocation over a three (b) Investments that are measured at net asset value (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | A reconciliation of fair value measurements of plan assets using significant unobservable inputs (Level 3) is as follows: In millions 2023 2022 Balance at January 1, $ 33 $ 33 Purchases — 11 Transfers Out, Net (17) (7) Foreign Currency Exchange 2 (4) Balance at December 31, $ 18 $ 33 |
Schedule of Expected Benefit Payments | The following represents the Company’s estimated future pension and postretirement health care benefit payments through the year 2033: In millions Pension Plans Postretirement Health Care Benefits 2024 $ 29 $ 2 2025 30 2 2026 32 2 2027 33 2 2028 34 2 2029— 2033 183 9 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The U.S. and international components of Income before Income Taxes and Equity Income of Unconsolidated Entity consisted of the following: Year Ended December 31, In millions 2023 2022 2021 U.S. $ 852 $ 683 $ 237 International 80 33 52 Income before Income Taxes and Equity Income of Unconsolidated Entity $ 932 $ 716 $ 289 |
Schedule of Components of Income Tax (Expense) Benefit | The provisions for Income Tax (Expense) Benefit on Income before Income Taxes and Equity Income of Unconsolidated Entity consisted of the following: Year Ended December 31, In millions 2023 2022 2021 Current Expense: U.S. $ (150) $ (25) $ (2) International (38) (38) (17) Total Current $ (188) $ (63) $ (19) Deferred (Expense) Benefit: U.S. (49) (137) (57) International 27 6 2 Total Deferred $ (22) $ (131) $ (55) Income Tax Expense $ (210) $ (194) $ (74) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of Income Tax Expense (Benefit) on Income before Income Taxes and Equity Income of Unconsolidated Entity at the federal statutory rate of 21.0% compared with the Company’s actual Income Tax (Expense) Benefit is as follows: Year Ended December 31, In millions 2023 Percent 2022 Percent 2021 Percent Income Tax Expense at U.S. Statutory Rate $ (196) 21.0 % $ (150) 21.0 % $ (61) 21.0 % U.S. State and Local Tax Expense (34) 3.6 (29) 4.1 (12) 4.1 Permanent Items 2 (0.3) 2 (0.3) (9) 3.2 Provision to Return Adjustments (3) 0.3 4 (0.5) 4 (1.4) Change in Valuation Allowance 19 (2.1) (21) 2.9 (1) 0.4 Unrealized Foreign Exchange (7) 0.8 22 (3.1) 5 (1.7) International Tax Rate Differences (4) 0.5 (6) 0.8 (3) 1.0 U.S. Federal & State Tax Credits 22 (2.3) 9 (1.3) 13 (4.5) Domestic Minority Interest — — — — 2 (0.7) Deferred Adjustment due to IP Exit — — — — (4) 1.5 Russia Impairment (3) 0.3 (20) 2.8 — — Tax Effects Released from OCI — — (10) 1.4 — — Other (6) 0.7 5 (0.6) (8) 2.8 Income Tax Expense $ (210) 22.5 % $ (194) 27.2 % $ (74) 25.7 % |
Schedule of Deferred Tax Assets and Liabilities | In millions 2023 2022 Deferred Income Tax Assets: Compensation Based Accruals $ 34 $ 37 Net Operating Loss Carryforwards 74 103 Postretirement Benefits 24 26 Tax Credits 8 26 Capitalized Research & Development Costs 64 44 Unrealized Foreign Exchange — 28 Other 89 81 Valuation Allowance (37) (57) Total Deferred Income Tax Assets $ 256 $ 288 Deferred Income Tax Liabilities: Property, Plant and Equipment (672) (661) Goodwill & Other Intangibles (263) (280) Other (3) — Net Noncurrent Deferred Income Tax Liabilities $ (938) $ (941) Net Deferred Income Tax Liability $ (682) $ (653) |
Schedule of Valuation Allowance | The following table represents a summary of the valuation allowances against deferred tax assets as of and for the three years ended December 31, 2023, 2022, and 2021, respectively: In millions Additions Deductions December 31, Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Credited to Costs and Expenses Credited to Other Accounts Balance at End of Period 2023 $ 57 $ 6 $ 1 $ (25) $ (2) $ 37 2022 38 29 1 (8) (3) 57 2021 34 4 4 (3) (1) 38 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: In millions 2023 2022 2021 Balance at January 1, $ 26 $ 24 $ 20 Additions for Tax Positions of Current Year 2 2 1 Additions for Tax Positions of Prior Years 8 1 3 Reductions for Tax Positions of Prior Years (2) (1) — Balance at December 31, $ 34 $ 26 $ 24 |
FINANCIAL INSTRUMENTS, DERIVA_2
FINANCIAL INSTRUMENTS, DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table summarizes the Company's current interest rate swap positions as of December 31, 2023: Start End Notional Amount (In Millions) Weighted Average Interest Rate 04/03/2023 04/01/2024 $750 4.71% |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Effect of Derivative Instruments | The pre-tax effect of derivative instruments in cash flow hedging relationships in the Consolidated Statements of Operations for the year ended December 31, 2023 and 2022 is as follows: Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss Location in Statement of Operations Amount of Loss (Gain) Recognized in Statement of Operations Year Ended December 31, Year Ended December 31, In millions 2023 2022 2021 2023 2022 2021 Commodity Contracts $ 32 $ 2 $ (11) Cost of Sales $ 35 $ (12) $ (11) Foreign Currency Contracts — — (2) Other Expense (Income), Net — — 2 Interest Rate Swap Agreements (4) — — Interest Expense, Net (3) — 6 Total $ 28 $ 2 $ (13) $ 32 $ (12) $ (3) The pre-tax effect of derivative instruments not designated as hedging instruments in the Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 is as follows: In millions 2023 2022 2021 Foreign Currency Contracts Other Expense (Income), Net $ (3) $ (9) $ (5) Deal Contingent Foreign Exchange Hedge (a) Business Combinations, Exit Activities and Other Special Charges, Net $ — $ — $ 48 (a) For more information, see “Note 10 - Financial Instruments, Derivatives and Hedging Activities". |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Change in Accumulated Other Comprehensive (Loss) Income | The components of Other Comprehensive Income (Loss) attributable to Graphic Packaging Holding Company are as follows: Year Ended December 31, 2023 2022 2021 Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Derivative Instruments Gain (Loss) $ 4 $ (1) $ 3 $ 22 $ (18) $ 4 $ 7 $ (2) $ 5 Pension and Postretirement Benefit Plans (Loss) Gain (5) 1 (4) (22) 13 (9) 53 (8) 45 Currency Translation Adjustment Gain (Loss) 61 4 65 (156) 8 (148) (28) — (28) Other Comprehensive Income (Loss) $ 60 $ 4 $ 64 $ (156) $ 3 $ (153) $ 32 $ (10) $ 22 |
Schedule of Balance in Accumulated Other Comprehensive Loss | The balances of Accumulated Other Comprehensive Loss Attributable to Graphic Packaging Holding Company, net of applicable taxes are as follows: December 31, In millions 2023 2022 Accumulated Derivative Instruments Loss $ (1) $ (4) Pension and Postretirement Benefit Plans (107) (103) Currency Translation Adjustment (205) (270) Accumulated Other Comprehensive Loss $ (313) $ (377) |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Long-Term Purchase Commitments | At December 31, 2023, total commitments under these contracts were as follows: In millions 2024 $ 713 2025 296 2026 19 2027 9 2028 8 Thereafter 24 Total $ 1,069 |
BUSINESS SEGMENT AND GEOGRAPH_2
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Business segment information is as follows: Year Ended December 31, In millions 2023 2022 2021 NET SALES: Paperboard Manufacturing $ 1,022 $ 1,290 $ 1,007 Americas Paperboard Packaging 6,200 6,015 4,996 Europe Paperboard Packaging 2,024 1,973 992 Corporate/Other/Eliminations (a) 182 162 161 Total $ 9,428 $ 9,440 $ 7,156 INCOME (LOSS) FROM OPERATIONS: Paperboard Manufacturing (b)(c) $ (23) $ 45 $ (10) Americas Paperboard Packaging (c)(d) 1,088 800 456 Europe Paperboard Packaging (c)(e) 127 59 82 Corporate and Other (c) (18) 2 (121) Total $ 1,174 $ 906 $ 407 CAPITAL EXPENDITURES: Paperboard Manufacturing $ 479 $ 336 $ 615 Americas Paperboard Packaging 144 131 113 Europe Paperboard Packaging 101 43 37 Corporate and Other 80 39 37 Total $ 804 $ 549 $ 802 DEPRECIATION AND AMORTIZATION: Paperboard Manufacturing (b) $ 284 $ 242 $ 231 Americas Paperboard Packaging (d) 186 173 176 Europe Paperboard Packaging 113 109 53 Corporate and Other 36 29 29 Total $ 619 $ 553 $ 489 (a) Includes revenue from customers for the Australia and Pacific Rim operating segments. (b) Includes accelerated depreciation related to exit activities in 2023, 2022, and 2021 (see “ Note 18 - Exit Activities ”). (c) Includes expenses related to business combinations, other special charges, and exit activities (see “ Note 1 - General Information ”). (d) Includes accelerated depreciation related to exit activities in 2023 (see “ Note 18 - Exit Activities ”). (e) Includes impairment charges related to Russia. (see “ Note 19 - Impairment and Divestiture of Russian Business ”). December 31, In millions 2023 2022 2021 ASSETS AT DECEMBER 31: Paperboard Manufacturing $ 3,905 $ 3,516 $ 3,482 Americas Paperboard Packaging 4,220 3,822 3,682 Europe Paperboard Packaging 2,484 2,474 2,669 Corporate and Other 566 516 624 Total $ 11,175 $ 10,328 $ 10,457 |
Schedule of Segment Reporting Information, by Geographical Areas | Business geographic area information is as follows: Year Ended December 31, In millions 2023 2022 2021 NET SALES: United States $ 6,646 $ 6,741 $ 5,543 International (a) 2,782 2,699 1,613 Total $ 9,428 $ 9,440 $ 7,156 In millions 2023 2022 2021 LONG-LIVED ASSETS AT DECEMBER 31: United States $ 4,178 $ 3,813 $ 3,865 International (a) 814 766 812 Total $ 4,992 $ 4,579 $ 4,677 (a) Net Sales and long-lived assets of individual countries outside of the United States are not material. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Year Ended December 31, In millions, except per share data 2023 2022 2021 Net Income Attributable to Graphic Packaging Holding Company $ 723 $ 522 $ 204 Weighted Average Shares: Basic 308.2 308.8 297.1 Dilutive effect of RSUs 0.9 0.7 0.8 Diluted 309.1 309.5 297.9 Earnings Per Share — Basic $ 2.35 $ 1.69 $ 0.69 Earnings Per Share — Diluted $ 2.34 $ 1.69 $ 0.68 |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2023: In millions Derivatives 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 (21) (6) 65 38 Amounts Reclassified from Accumulated Other Comprehensive Loss (a) 24 2 — 26 Net Current-period Other Comprehensive Income (Loss) 3 (4) 65 64 Balance at December 31, 2023 $ (1) $ (107) $ (205) $ (313) (a) See following table for details about these reclassifications. |
Schedule of Reclassifications Out of AOCI | The following represents reclassifications out of Accumulated Other Comprehensive Loss for the year ended December 31, 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 $ 35 Cost of Sales Interest Rate Swap Agreements (3) Interest Expense, Net 32 Total before Tax (8) Tax Expense $ 24 Total, Net of Tax Amortization of Defined Benefit Pension Plans: Actuarial Losses $ 5 (a) Total before Tax (1) Tax Benefit $ 4 Total, Net of Tax Amortization of Postretirement Benefit Plans: Actuarial Gains $ (3) (a) Total before Tax 1 Tax Expense $ (2) Total, Net of Tax Total Reclassifications for the Period $ 26 Total, Net of Tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see “ Note 8 - Pensions and Other Postretirement Benefits ”). |
EXIT ACTIVITIES (Tables)
EXIT ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes the costs incurred during 2023, 2022 and 2021 related to these restructurings: Year Ended December 31, In millions Location in Statement of Operations 2023 2022 2021 Severance Costs and Other (a) Business Combinations, Exit Activities and Other Special Charges, Net $ 25 $ 1 $ 21 Asset Write-offs and Start-Up Costs (b) Business Combinations, Exit Activities and Other Special Charges, Net 22 9 — Accelerated Depreciation Cost of Sales 42 7 17 Total $ 89 $ 17 $ 38 (a) Costs incurred include activities for post-employment benefits, retention bonuses, incentives and professional services. (see “ Note 1 - Business Combinations, Exit Activities and Other Special Charges, 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, 2021 $ 8 Costs Incurred 1 Payments (6) Adjustments (a) (2) Balance at December 31, 2022 $ 1 Costs Incurred 25 Payments (4) Adjustments (a) (1) Balance at December 31, 2023 $ 21 (a) |
NATURE OF BUSINESS AND SUMMAR_4
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Principles of Consolidation (Details) | Dec. 31, 2023 |
Rengo Riverwood Packaging, Ltd. | |
Investment [Line Items] | |
Ownership percentage in joint venture | 50% |
NATURE OF BUSINESS AND SUMMAR_5
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable and Allowances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Receivables Sold and Derecognized | $ 3,696 | $ 3,299 |
Proceeds Collected on Behalf of Financial Institutions | 3,646 | 3,179 |
Net Proceeds Received from Financial Institutions | 28 | 152 |
Deferred Purchase Price at December 31 | 1 | 0 |
Pledged Receivables at December 31 | 150 | 197 |
Amount transferred subject to continuing involvement | 770 | 753 |
Receivables sold | $ 1,136 | $ 1,124 |
NATURE OF BUSINESS AND SUMMAR_6
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Payable and Supplier Finance Program (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Supplier Finance Program, Obligation [Roll Forward] | ||
Confirmed Obligations Outstanding at the Beginning of the Year | $ 34 | $ 26 |
Invoices Confirmed During the Year | 117 | 127 |
Confirmed Invoices Paid During the Year | (121) | (119) |
Confirmed Obligations Outstanding at the End of the Year | $ 30 | $ 34 |
NATURE OF BUSINESS AND SUMMAR_7
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Payable and Supplier Finance Program Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplier Finance Program [Line Items] | |||
Supplier Finance Program Obligation Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | supplier finance program | ||
Property, Plant and Equipment | |||
Supplier Finance Program [Line Items] | |||
Accounts payable | $ 145 | $ 55 | $ 169 |
NATURE OF BUSINESS AND SUMMAR_8
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) - customer | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Customer Concentration Risk | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Number of customers | 0 | 0 | 0 |
NATURE OF BUSINESS AND SUMMAR_9
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 01, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Spending threshold for capitalization of interest | $ 1 | |||
Capitalized interest | 8 | $ 5 | $ 14 | |
Useful life (in years) | 13 years | |||
Depreciation | $ 528 | $ 463 | $ 420 | |
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 40 years | |||
Land improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 15 years | |||
Machinery and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 3 years | |||
Machinery and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 40 years | |||
Furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 10 years | |||
Automobiles, trucks and tractors | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 3 years | |||
Automobiles, trucks and tractors | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 5 years |
NATURE OF BUSINESS AND SUMMA_10
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Finite-lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,734 | $ 1,534 | |
Accumulated Amortization | (914) | (817) | |
Net Carrying Amount | 820 | 717 | |
Amortization expense | 91 | 90 | $ 69 |
Future amortization expense, 2023 | 89 | ||
Future amortization expense, 2024 | 64 | ||
Future amortization expense, 2025 | 59 | ||
Future amortization expense, 2026 | 57 | ||
Future amortization expense, 2027 | 56 | ||
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,574 | 1,382 | |
Accumulated Amortization | (796) | (706) | |
Net Carrying Amount | 778 | 676 | |
Non-Compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3 | 0 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | 3 | 0 | |
Patents, Trademarks, Licenses, Leases and Developed Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 157 | 152 | |
Accumulated Amortization | (118) | (111) | |
Net Carrying Amount | $ 39 | $ 41 |
NATURE OF BUSINESS AND SUMMA_11
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,979 | $ 2,015 |
Acquisition of Businesses | 101 | 21 |
Impairment of Russian Business | (12) | |
Foreign Currency Effects | 23 | (45) |
Goodwill, ending balance | 2,103 | 1,979 |
Corporate/Other | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 12 | 13 |
Acquisition of Businesses | 0 | 0 |
Impairment of Russian Business | 0 | |
Foreign Currency Effects | (1) | (1) |
Goodwill, ending balance | 11 | 12 |
Paperboard Manufacturing | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 506 | 506 |
Acquisition of Businesses | 59 | 0 |
Impairment of Russian Business | 0 | |
Foreign Currency Effects | 0 | 0 |
Goodwill, ending balance | 565 | 506 |
Americas Paperboard Packaging | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 980 | 968 |
Acquisition of Businesses | 42 | 10 |
Impairment of Russian Business | 0 | |
Foreign Currency Effects | 6 | 2 |
Goodwill, ending balance | 1,028 | 980 |
Europe Paperboard Packaging | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 481 | 528 |
Acquisition of Businesses | 0 | 11 |
Impairment of Russian Business | (12) | |
Foreign Currency Effects | 18 | (46) |
Goodwill, ending balance | $ 499 | $ 481 |
NATURE OF BUSINESS AND SUMMA_12
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Asset Retirement Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Asset retirement obligation | $ 14 | $ 13 |
NATURE OF BUSINESS AND SUMMA_13
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) revenueGeneratingActivity | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of revenue generating activities | revenueGeneratingActivity | 2 | ||
Net sales | $ 9,383 | $ 9,410 | $ 7,131 |
Contract assets | 28 | 8 | |
Contract liabilities | $ 60 | $ 65 |
NATURE OF BUSINESS AND SUMMA_14
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Research and development expense | $ 16 | $ 14 | $ 10 |
NATURE OF BUSINESS AND SUMMA_15
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Business Combinations, Exit Activities and Other Special Charges, Net (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Feb. 07, 2023 facilities | Sep. 30, 2021 facilities | Dec. 31, 2023 USD ($) mill | Dec. 31, 2022 USD ($) mill | Dec. 31, 2021 USD ($) | Dec. 31, 2019 facilities | |
Business Acquisition [Line Items] | ||||||
Charges Associated with Business Combinations | $ 4 | $ 23 | $ 84 | |||
Exit Activities | 47 | 10 | 21 | |||
Charges Associated with a Divestiture | 14 | 96 | 0 | |||
Other Special Charges | 9 | 2 | 33 | |||
Total | 74 | $ 131 | $ 138 | |||
Nigeria, Nairas | ||||||
Business Acquisition [Line Items] | ||||||
Other Special Charges | $ (9) | |||||
Facility Closing | ||||||
Business Acquisition [Line Items] | ||||||
Number of mills expected to close | 3 | 2 | 3 | 2 | 2 |
NATURE OF BUSINESS AND SUMMA_16
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Business Combinations, Exit Activities and Other Special Charges, Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 4 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||||
Sep. 08, 2023 USD ($) packaging_facility | Feb. 07, 2023 USD ($) facilities | Jan. 31, 2023 USD ($) | Nov. 01, 2021 USD ($) packaging_facility | Jul. 01, 2021 USD ($) factory facilities | May 14, 2021 EUR (€) | Sep. 30, 2023 USD ($) | Jun. 30, 2022 packaging_facility | Sep. 30, 2021 facilities | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) mill | Dec. 31, 2022 USD ($) mill | Dec. 31, 2021 USD ($) | Dec. 31, 2019 facilities | Nov. 01, 2021 country | Nov. 01, 2021 factory | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Number of packaging facilities | packaging_facility | 2 | ||||||||||||||||
Number of converting facilities acquired | facilities | 7 | ||||||||||||||||
Payments to acquire businesses | $ 361 | $ 0 | $ 1,704 | ||||||||||||||
Deal Contingent Foreign Exchange Contract | Business Combinations, Exit Activities and Other Special Charges, Net | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Foreign Currency Contracts | 0 | 0 | 48 | ||||||||||||||
Euro Member Countries, Euro | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Deal contingent hedge | € | € 700 | ||||||||||||||||
Tama Paperboard, LLC | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Business combination, integration related costs | $ 1 | ||||||||||||||||
Investments | $ 1,000 | ||||||||||||||||
Total Purchase Consideration | $ 100 | ||||||||||||||||
Bell Incorporated | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Total Purchase Consideration | $ 264 | $ 264 | |||||||||||||||
Number of packaging facilities | packaging_facility | 3 | ||||||||||||||||
Americraft Carton, Inc. | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Total Purchase Consideration | $ 292 | 292 | |||||||||||||||
Number of factories acquired | factory | 7 | ||||||||||||||||
AR Packaging Group AB | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Total Purchase Consideration | 1,487 | ||||||||||||||||
Payments to acquire businesses | $ 1,412 | ||||||||||||||||
Cash Acquired from Acquisition | $ 75 | ||||||||||||||||
Number of factories acquired | 30 | 30 | |||||||||||||||
Number of countries | country | 13 | ||||||||||||||||
Facility Closing | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Exit activities | $ 89 | $ 17 | $ 38 | ||||||||||||||
Number of mills expected to close | 3 | 2 | 3 | 2 | 2 | ||||||||||||
Number of mills remaining open | facilities | 1 | ||||||||||||||||
Facility Closing | Tama Paperboard, LLC | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Restructuring and related activities, number of additional closures expected | facilities | 2 | ||||||||||||||||
Discontinued Project | Texarkana, Texas | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Exit activities | $ 16 | $ 16 | |||||||||||||||
Decommission | MICHIGAN | K3 CRB Machine | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Accelerated depreciation related to plant closure | $ 20 | ||||||||||||||||
Decommission | MICHIGAN | K3 CRB Machine | Minimum | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Expected cost remaining | 5 | 5 | 5 | ||||||||||||||
Decommission | MICHIGAN | K3 CRB Machine | Maximum | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||||
Expected cost remaining | $ 10 | $ 10 | $ 10 |
NATURE OF BUSINESS AND SUMMA_17
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchases Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 27, 2023 | Jan. 28, 2019 | |
Accelerated Share Repurchases [Line Items] | |||||
Dividends paid in cash | $ 123 | $ 92 | $ 87 | ||
Share Repurchase Program 2019 | |||||
Accelerated Share Repurchases [Line Items] | |||||
Share repurchase program, authorized amount | $ 500 | $ 500 | |||
Share repurchase program, authorized amount remaining | 565 | ||||
Share Repurchase Program 2023 | |||||
Accelerated Share Repurchases [Line Items] | |||||
Share repurchase program, authorized amount remaining | $ 565 |
NATURE OF BUSINESS AND SUMMA_18
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Amount Repurchased | $ 54 | $ 28 | |
Share Repurchase Program 2019 | |||
Class of Stock [Line Items] | |||
Amount Repurchased | $ 54 | $ 28 | $ 0 |
Repurchased common stock (in shares) | 2,389,224 | 1,315,839 | 0 |
Average price, per share (in dollars per share) | $ 22.80 | $ 20.91 | $ 0 |
SUPPLEMENTAL BALANCE SHEET DA_3
SUPPLEMENTAL BALANCE SHEET DATA - Schedule of Receivables, Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Trade | $ 739 | $ 825 |
Less: Allowance | (23) | (21) |
Trade receivables, net, current | 716 | 804 |
Other | 119 | 75 |
Total | $ 835 | $ 879 |
SUPPLEMENTAL BALANCE SHEET DA_4
SUPPLEMENTAL BALANCE SHEET DATA - Schedule of Inventories, Net by Major Class (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished Goods | $ 602 | $ 515 |
Work in Progress | 201 | 218 |
Raw Materials | 684 | 645 |
Supplies | 267 | 228 |
Total | $ 1,754 | $ 1,606 |
SUPPLEMENTAL BALANCE SHEET DA_5
SUPPLEMENTAL BALANCE SHEET DATA - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,660 | $ 8,871 |
Less: Accumulated Depreciation | (4,668) | (4,292) |
Total | 4,992 | 4,579 |
Finance lease accumulated depreciation and amortization | 52 | 38 |
Land and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 195 | 187 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,122 | 1,067 |
Gross assets under finance lease | 146 | 146 |
Finance lease accumulated depreciation and amortization | 31 | 22 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,686 | 7,383 |
Gross assets under finance lease | 51 | 51 |
Finance lease accumulated depreciation and amortization | 21 | 16 |
Construction-in-Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 657 | $ 234 |
SUPPLEMENTAL BALANCE SHEET DA_6
SUPPLEMENTAL BALANCE SHEET DATA - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating Lease Liabilities, current portion | $ 62 | $ 66 |
Accrued Payables | 61 | 66 |
Other Accrued Taxes | 49 | 51 |
Accrued Customer Rebates | 48 | 44 |
Dividends Payable | 31 | 31 |
Deferred Revenue | 30 | 32 |
Income Tax Payable | 15 | 7 |
Fair Value of Derivatives, current portion | 13 | 12 |
Accrued Severance | 6 | 3 |
Unfavorable Supply Agreement | 2 | 2 |
Other | 78 | 97 |
Total | $ 395 | $ 411 |
SUPPLEMENTAL BALANCE SHEET DA_7
SUPPLEMENTAL BALANCE SHEET DATA - Schedule of Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating Lease Liabilities, noncurrent portion | $ 189 | $ 184 |
FIN48 Liabilities | 38 | 4 |
Deferred Compensation | 30 | 19 |
Multi-Employer Plans | 17 | 18 |
Workers Compensation Reserve | 8 | 8 |
Deferred Revenue | 8 | 8 |
Unfavorable Supply Agreement | 2 | 3 |
Other | 68 | 22 |
Total | $ 360 | $ 266 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flow Provided by (Used in) Operations Due to Changes in Operating Assets and Liabilities | |||
Receivables, Net | $ (39) | $ (184) | $ (106) |
Inventories, Net | (117) | (268) | (80) |
Other Current Assets | (15) | 2 | (12) |
Other Assets | (19) | (1) | (22) |
Accounts Payable | (140) | 132 | 77 |
Compensation and Employee Benefits | (25) | 87 | (15) |
Income Taxes | 7 | (2) | (6) |
Interest Payable | 12 | 16 | 4 |
Other Accrued Liabilities | (22) | (11) | 3 |
Other Noncurrent Liabilities | 50 | 11 | (72) |
Total | (308) | (218) | (229) |
Cash paid for interest and cash paid, net of refunds, for income taxes | |||
Interest | 221 | 176 | 116 |
Income Taxes | $ 157 | $ 43 | $ 25 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) | 4 Months Ended | 12 Months Ended | ||||||||||
Sep. 08, 2023 USD ($) packaging_facility | Jan. 31, 2023 USD ($) | Nov. 01, 2021 USD ($) | Jul. 01, 2021 USD ($) factory | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) foldingCartonFacility | Dec. 31, 2021 USD ($) | Nov. 01, 2021 packaging_facility | Nov. 01, 2021 country | Nov. 01, 2021 factory | Oct. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||||||||
Number of folding carton plants | foldingCartonFacility | 2 | |||||||||||
Currency Translation Adjustment | $ 292,000,000 | $ 65,000,000 | $ (149,000,000) | $ (28,000,000) | ||||||||
Payments to acquire businesses | 361,000,000 | 0 | 1,704,000,000 | |||||||||
Income (loss) from operations | 1,174,000,000 | 906,000,000 | 407,000,000 | |||||||||
RUSSIAN FEDERATION | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Asset impairment charges | 96,000,000 | |||||||||||
Fair Value Adjustment to Inventory | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Income (loss) from operations | 1,135,000,000 | |||||||||||
Acquisition-related Costs | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Income (loss) from operations | $ 17,000,000 | 176,000,000 | ||||||||||
Gain (Loss) on Derivative Instruments | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Income (loss) from operations | $ 8,000,000 | |||||||||||
Term A-4 Facility | Senior Term Notes | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Aggregate principal amount | $ 400,000,000 | $ 400,000,000 | ||||||||||
Bell Incorporated | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of folding carton plants | packaging_facility | 3 | |||||||||||
Total Purchase Consideration | $ 264,000,000 | $ 264,000,000 | ||||||||||
Tama Paperboard, LLC | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total Purchase Consideration | $ 100,000,000 | |||||||||||
Americraft Carton, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total Purchase Consideration | $ 292,000,000 | 292,000,000 | ||||||||||
Number of factories acquired | factory | 7 | |||||||||||
AR Packaging Group AB | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total Purchase Consideration | $ 1,487,000,000 | |||||||||||
Number of factories acquired | 30 | 30 | ||||||||||
Number of countries | country | 13 | |||||||||||
Payments to acquire businesses | 1,412,000,000 | |||||||||||
Cash Acquired from Acquisition | $ 75,000,000 |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Millions | 4 Months Ended | 12 Months Ended | |||||
Sep. 08, 2023 | Nov. 01, 2021 | Jul. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 2,103 | $ 2,103 | $ 1,979 | $ 2,015 | |||
Property, plant and equipment, useful life | 13 years | ||||||
Machinery and Equipment | |||||||
Business Acquisition [Line Items] | |||||||
Property, Plant and Equipment | $ 374 | ||||||
Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average useful life of customer relationships (in years) | 15 years | 15 years | |||||
Intangible Assets, Net | $ 401 | ||||||
Bell Incorporated | |||||||
Business Acquisition [Line Items] | |||||||
Total Purchase Consideration | $ 264 | 264 | |||||
Cash Acquired | 3 | 3 | |||||
Receivables, Net | 19 | 19 | |||||
Inventories, Net | 17 | 17 | |||||
Property, Plant and Equipment | 30 | 30 | |||||
Intangible Assets | 161 | 161 | |||||
Other Assets | 15 | 15 | |||||
Total Assets Acquired | 245 | 245 | |||||
Current Liabilities | 11 | 11 | |||||
Other Noncurrent Liabilities | 12 | 12 | |||||
Total Liabilities Assumed | 23 | 23 | |||||
Net Assets Acquired | 222 | 222 | |||||
Goodwill | 42 | 42 | |||||
Purchase Consideration Transferred | $ 264 | 264 | |||||
Bell Incorporated | Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average useful life of customer relationships (in years) | 15 years | ||||||
Americraft Carton, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Total Purchase Consideration | $ 292 | 292 | |||||
Receivables, Net | $ 22 | 22 | |||||
Inventories, Net | 36 | 36 | |||||
Property, Plant and Equipment | 94 | 94 | |||||
Intangible Assets | 74 | 74 | |||||
Other Assets | 1 | 1 | |||||
Total Assets Acquired | 227 | 227 | |||||
Current Liabilities | 13 | 13 | |||||
Total Liabilities Assumed | 13 | 13 | |||||
Net Assets Acquired | 214 | 214 | |||||
Goodwill | 78 | 78 | |||||
Purchase Consideration Transferred | 292 | 292 | |||||
AR Packaging Group AB | |||||||
Business Acquisition [Line Items] | |||||||
Total Purchase Consideration | 1,487 | ||||||
Cash Acquired | 75 | 75 | |||||
Receivables, Net | 206 | 206 | |||||
Inventories, Net | 166 | 166 | |||||
Property, Plant and Equipment | 556 | 556 | |||||
Other Current Assets | 12 | 12 | |||||
Intangible Assets | 409 | 409 | |||||
Other Assets | 62 | 62 | |||||
Total Assets Acquired | 1,486 | 1,486 | |||||
Accounts Payable | 109 | 109 | |||||
Compensation and Employee Benefits | 12 | 12 | |||||
Other Accrued Liabilities | 99 | 99 | |||||
Short-Term Debt and Current Portion of Long-Term Debt | 9 | 9 | |||||
Long-Term Debt | 17 | 17 | |||||
Deferred Income Tax Liabilities | 139 | 139 | |||||
Accrued Pension and Postretirement Benefits | 55 | 55 | |||||
Other Noncurrent Liabilities | 43 | 43 | |||||
Total Liabilities Assumed | 485 | 485 | |||||
Net Assets Acquired | 1,001 | 1,001 | |||||
Goodwill | 486 | 486 | |||||
Purchase Consideration Transferred | 1,487 | 1,487 | |||||
Noncontrolling Interests | $ 2 | $ 2 | |||||
Exchange rate used for valuation | 115.39% |
DEBT - Schedule of Short-Term D
DEBT - Schedule of Short-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Short Term Borrowings | $ 18 | $ 16 |
Current Portion of Finance Leases | 7 | 11 |
Current Portion of Long-Term Debt | 739 | 26 |
Total Short-Term Debt and Current Portion of Long-Term Debt | $ 764 | $ 53 |
0.821% Senior Notes Due in 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 0.821% | |
Senior Notes with interest payable semi-annually at 4.125%, effective rate of 4.13%, payable in 2024(b) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.125% |
DEBT - Additional Information (
DEBT - Additional Information (Details) | 1 Months Ended | ||||||||
Jan. 31, 2018 | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 | Nov. 15, 2022 USD ($) | Nov. 01, 2021 USD ($) | Oct. 31, 2021 USD ($) | Jul. 23, 2021 EUR (€) | Jul. 22, 2021 USD ($) | Apr. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate on short-term borrowings | 6.50% | 6.20% | |||||||
4.875% Senior Notes Due in 2022 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.875% | ||||||||
Term Loan A-2 Facility | Senior Term Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 2.67% | ||||||||
4.75 % Senior Notes Due in 2027 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.75% | ||||||||
0.821% Senior Notes Due in 2024 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 0.821% | ||||||||
1.512% Senior Notes Due In 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 1.512% | ||||||||
Term Loan A-1 Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 550,000,000 | ||||||||
Term Loan A-1 Facility | Revolving Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate plus variable spread | 1.25% | ||||||||
Term A-3 Facility | Senior Term Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 250,000,000 | ||||||||
Stated interest rate | 6.57% | ||||||||
Euro Term Loan | Senior Term Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | € | € 206,000,000 | € 210,000,000 | |||||||
Term A-4 Facility | Senior Term Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 400,000,000 | $ 400,000,000 | |||||||
3.75% Senior Notes Due 2030 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 3.75% | ||||||||
3.75% Senior Notes Due 2030 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 3.75% | ||||||||
Euro Note | Senior Term Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 5.23% | ||||||||
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% | ||||||||
0.821% Senior Notes Due 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% | ||||||||
1.512% Senior Notes Due In 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 1.512% | ||||||||
2.625% Senior Notes Due 2029 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 2.625% | ||||||||
Senior Secured Revolving Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 250,000,000 |
DEBT - Schedule of Long-term De
DEBT - Schedule of Long-term Debt Instruments (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Jul. 23, 2021 EUR (€) | Jul. 22, 2021 USD ($) |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 5,217,000,000 | $ 5,097,000,000 | |||
Finance Leases | 161,000,000 | 170,000,000 | |||
Total Long-Term Debt Including Current Portion | 5,378,000,000 | 5,267,000,000 | |||
Less: Current Portion | 746,000,000 | 37,000,000 | |||
Total Long-Term Debt Excluding Current Portion | 4,632,000,000 | 5,230,000,000 | |||
Less: Unamortized Deferred Debt Issuance Costs | 23,000,000 | 30,000,000 | |||
Total Long-Term Debt | $ 4,609,000,000 | 5,200,000,000 | |||
3.75% Senior 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 | $ 400,000,000 | 400,000,000 | |||
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 | $ 300,000,000 | 300,000,000 | |||
Stated interest rate | 4.125% | 4.125% | |||
Interest rate at period end | 4.13% | 4.13% | |||
Senior Notes | 1.512% Senior Notes Due In 2026 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 400,000,000 | 400,000,000 | |||
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 | $ 300,000,000 | 300,000,000 | |||
Stated interest rate | 4.75% | 4.75% | |||
Interest rate at period end | 4.78% | 4.78% | |||
Senior Notes | 3.50% Senior Notes Due in 2028 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 450,000,000 | 450,000,000 | |||
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 | $ 350,000,000 | 350,000,000 | |||
Stated interest rate | 3.50% | 3.50% | |||
Interest rate at period end | 3.53% | 3.53% | |||
Senior Notes | 2.625% Senior Notes Due 2029 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 321,000,000 | 311,000,000 | |||
Stated interest rate | 2.625% | 2.625% | |||
Interest rate at period end | 2.65% | 2.65% | |||
Senior Notes | 3.75% Senior Notes Due 2030 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 400,000,000 | 400,000,000 | |||
Stated interest rate | 3.75% | 3.75% | |||
Interest rate at period end | 3.79% | 3.79% | |||
Senior Notes | 2.625% 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 | $ 106,000,000 | 108,000,000 | |||
Stated interest rate | 4% | 4% | |||
Interest rate at period end | 1.72% | 1.72% | |||
Senior Term Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 508,000,000 | 529,000,000 | |||
Interest rate at period end | 6.32% | 6.32% | |||
Senior Term Notes | Term Loan A-2 Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 425,000,000 | 425,000,000 | |||
Stated interest rate | 2.67% | 2.67% | |||
Interest rate at period end | 2.68% | 2.68% | |||
Senior Term Notes | Term A-3 Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 250,000,000 | 250,000,000 | |||
Stated interest rate | 6.57% | 6.57% | |||
Interest rate at period end | 6.59% | 6.59% | |||
Aggregate principal amount | $ 250,000,000 | ||||
Senior Term Notes | Euro Note | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 227,000,000 | 225,000,000 | |||
Stated interest rate | 5.23% | 5.23% | |||
Senior Term Notes | Euro Term Loan | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | € | € 206,000,000 | € 210,000,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 774,000,000 | $ 634,000,000 | |||
Interest rate at period end | 6.61% | 6.61% | 3.52% | ||
Line of credit interest rate at period end | 6.96% | 6.96% | |||
Other | |||||
Debt Instrument [Line Items] | |||||
Other | $ 6,000,000 | $ 15,000,000 |
DEBT - Schedule of Credit Facil
DEBT - Schedule of Credit Facilities (Details) ¥ in Millions | 1 Months Ended | ||||||||||||||
Jul. 31, 2021 EUR (€) | Apr. 30, 2021 USD ($) | Apr. 30, 2021 EUR (€) | Apr. 30, 2021 JPY (¥) | Jan. 31, 2018 | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Nov. 15, 2022 USD ($) | Nov. 01, 2021 USD ($) | Oct. 31, 2021 USD ($) | Jul. 23, 2021 EUR (€) | Jul. 22, 2021 USD ($) | Apr. 30, 2021 EUR (€) | Apr. 30, 2021 JPY (¥) | Oct. 31, 2020 USD ($) | |
Line of Credit Facility [Line Items] | |||||||||||||||
Revolving credit facility | $ 2,103,000,000 | ||||||||||||||
Senior Secured Domestic Revolving Credit Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Revolving credit facility | 1,850,000,000 | ||||||||||||||
Senior Secured International Revolving Credit Facilities | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Revolving credit facility | $ 200,000,000 | ||||||||||||||
Senior Secured Revolving Credit Facility | Senior Secured Domestic Revolving Credit Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Increase in credit facility maximum borrowing capacity | $ 400,000,000 | ||||||||||||||
Revolving credit facility | 1,850,000,000 | ||||||||||||||
Senior Secured Revolving Credit Facility | Revolving Credit Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Aggregate principal amount | $ 250,000,000 | ||||||||||||||
European Revolving Credit Facility | Senior Secured International Revolving Credit Facilities | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Increase in credit facility maximum borrowing capacity | € | € 7,000,000 | ||||||||||||||
Revolving credit facility | € | € 145,000,000 | ||||||||||||||
European Revolving Credit Facility | Revolving Credit Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Increase in credit facility maximum borrowing capacity | € | € 25,000,000 | ||||||||||||||
Revolving credit facility | € | € 170,000,000 | ||||||||||||||
Japanese Revolving Credit Line | Senior Secured International Revolving Credit Facilities | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Increase in credit facility maximum borrowing capacity | ¥ | ¥ 850 | ||||||||||||||
Revolving credit facility | ¥ | ¥ 1,650 | ||||||||||||||
Term Loan A-1 Facility | Secured Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Repayments of medium-term notes | 5,000,000 | ||||||||||||||
Term Loan A-1 Facility | Revolving Credit Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Aggregate principal amount | $ 550,000,000 | ||||||||||||||
Term Loan A-1 Facility | Minimum | Revolving Credit Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Interest rate plus variable spread | 1.25% | ||||||||||||||
Term Loan A-1 Facility | Maximum | Secured Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Interest rate plus variable spread | 2% | ||||||||||||||
Euro Term Loan | Senior Term Notes | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Aggregate principal amount | € | € 206,000,000 | € 210,000,000 | |||||||||||||
Term Loan A-2 Facility | Graphic Packaging International, LLC | Secured Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Aggregate principal amount | $ 425,000,000 | ||||||||||||||
Term A-3 Facility | Senior Term Notes | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Aggregate principal amount | $ 250,000,000 | ||||||||||||||
Term A-4 Facility | Senior Term Notes | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Aggregate principal amount | $ 400,000,000 | $ 400,000,000 |
DEBT - Schedule of Commitments,
DEBT - Schedule of Commitments, Amounts Outstanding, and Amounts Available Under Revolving Credit Facilities (Details) | Dec. 31, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
Total Commitments | $ 2,103,000,000 |
Total Outstanding | 798,000,000 |
Total Available | 1,300,000,000 |
Standby letters of credit issued | 5,000,000 |
Senior Secured Domestic Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Total Commitments | 1,850,000,000 |
Total Outstanding | 774,000,000 |
Total Available | 1,071,000,000 |
Senior Secured International Revolving Credit Facilities | |
Line of Credit Facility [Line Items] | |
Total Commitments | 200,000,000 |
Total Outstanding | 0 |
Total Available | 200,000,000 |
Other International Facilities | |
Line of Credit Facility [Line Items] | |
Total Commitments | 53,000,000 |
Total Outstanding | 24,000,000 |
Total Available | $ 29,000,000 |
DEBT - Schedule of Maturities o
DEBT - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term Debt Maturities | ||
2024 | $ 739 | |
2025 | 43 | |
2026 | 1,938 | |
2027 | 300 | |
2028 | 1,125 | |
After 2028 | 1,072 | |
Total | $ 5,217 | $ 5,097 |
LEASES - Additional Information
LEASES - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease contract term (in years) | 1 year |
Lease contract term (in years) | 1 year |
Lease term of majority of lease contracts (in years) | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease contract term (in years) | 25 years |
Lease contract term (in years) | 25 years |
Lease term of majority of lease contracts (in years) | 7 years |
LEASES - Schedule of Components
LEASES - Schedule of Components of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finance lease costs: | ||
Amortization of right-of-use asset | $ 14 | $ 11 |
Interest on lease liabilities | 9 | 8 |
Operating lease costs | 86 | 82 |
Short-term lease costs | 29 | 21 |
Variable lease costs | 14 | 16 |
Total lease costs, net | $ 152 | $ 138 |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 84 | $ 83 | |
Operating cash flows from finance leases | 9 | 8 | |
Financing cash flows from finance leases | 9 | 9 | |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 70 | 52 | $ 118 |
Finance leases | $ 0 | $ 42 | $ 11 |
LEASES - Schedule of Suppleme_2
LEASES - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases: | ||
Operating lease right-of-use asset | $ 228 | $ 245 |
Current operating lease liabilities | 62 | 66 |
Noncurrent operating lease liabilities | 189 | 184 |
Total operating lease liabilities | 251 | 250 |
Finance Leases: | ||
Property, Plant and Equipment | 197 | 197 |
Accumulated depreciation | (52) | (38) |
Total | 145 | 159 |
Current finance lease liabilities | 7 | 11 |
Noncurrent finance lease liabilities | 154 | 159 |
Total finance lease liabilities | $ 161 | $ 170 |
Weighted Average Remaining Lease Term (Years): | ||
Operating leases | 6 years | 7 years |
Finance leases | 16 years | 16 years |
Weighted Average Discount Rate: | ||
Operating leases | 4.10% | 3.76% |
Finance leases | 5.17% | 5.31% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Debt, Current | Debt, Current |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-Term Debt, Excluding Current Maturities | Long-Term Debt, Excluding Current Maturities |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 69 | |
2025 | 56 | |
2026 | 43 | |
2027 | 34 | |
2028 | 21 | |
Thereafter | 59 | |
Total lease payments | 282 | |
Less imputed interest | (31) | |
Total operating lease liabilities | 251 | $ 250 |
Finance Leases | ||
2024 | 16 | |
2025 | 15 | |
2026 | 14 | |
2027 | 15 | |
2028 | 16 | |
Thereafter | 165 | |
Total lease payments | 241 | |
Less imputed interest | (80) | |
Total | $ 161 |
STOCK INCENTIVE PLANS - Additio
STOCK INCENTIVE PLANS - Additional Disclosures (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) compensationPlan shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of active equity compensation plans | compensationPlan | 1 | ||
Recognized share-based compensation expense | $ 44 | $ 34 | $ 27 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit vesting period (in years) | 3 years | ||
Unrecognized compensation expense | $ 49 | ||
Unrecognized compensation expense, weighted average recognition period (in years) | 2 years | ||
Aggregate fair value of awards vested | $ 54 | $ 44 | $ 35 |
2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | shares | 8.9 |
STOCK INCENTIVE PLANS - Schedul
STOCK INCENTIVE PLANS - Schedule of RSUs and Stock Awards Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RSUs - Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants during period (in shares) | 1,780,345 | 1,943,769 | 1,680,997 |
Weighted-average grant date fair value (in dollars per share) | $ 23.74 | $ 20.19 | $ 16.14 |
RSUs - Employees | Employees And Nonemployee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants during period (in shares) | 1,780,345 | 1,943,769 | 1,680,997 |
Weighted-average grant date fair value (in dollars per share) | $ 23.74 | $ 20.19 | $ 16.14 |
Stock Awards - Board of Directors | Board Of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants during period (in shares) | 25,588 | 34,160 | 55,055 |
Weighted-average grant date fair value (in dollars per share) | $ 25.01 | $ 20.49 | $ 17.80 |
STOCK INCENTIVE PLANS - Sched_2
STOCK INCENTIVE PLANS - Schedule of RSUs and Stock Awards Granted (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Outstanding - beginning of period (in shares) | 4,824,864 | 4,929,861 | 5,141,706 |
Granted (in shares) | 1,780,345 | 1,943,769 | 1,680,997 |
Released (in shares) | (2,313,891) | (2,180,435) | (2,121,203) |
Forfeited (in shares) | (102,583) | (193,145) | (359,100) |
Performance adjustment (in shares) | 753,702 | 324,814 | 587,461 |
Outstanding - end of period (in shares) | 4,942,437 | 4,824,864 | 4,929,861 |
Weighted Average Grant Date Fair Value | |||
Outstanding - beginning of period (in dollars per share) | $ 17.48 | $ 14.47 | $ 14.02 |
Granted (in dollars per share) | 23.74 | 20.19 | 16.14 |
Released (in dollars per share) | 15.62 | 12.34 | 14.88 |
Forfeited (in dollars per share) | 20.21 | 17.59 | 14.39 |
Performance adjustment (in dollars per share) | 15.59 | 12.52 | 15.09 |
Outstanding - end of period (in dollars per share) | $ 20.20 | $ 17.48 | $ 14.47 |
PENSIONS AND OTHER POSTRETIRE_3
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Additional Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2024 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss | $ (10) | |||
Multiemployer withdrawal liability | 17 | $ 18 | ||
Contributions to defined contribution plans | $ 87 | 73 | $ 69 | |
Corporate Debt Securities | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Debt securities maturity term (in years) | 1 year | |||
Corporate Debt Securities | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Debt securities maturity term (in years) | 30 years | |||
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial loss | $ (83) | $ (82) | ||
Weighted average discount rate | 4.69% | 4.86% | ||
Net actuarial loss | $ (10) | $ 152 | ||
Accumulated benefit obligation | 491 | 465 | ||
Aggregate PBO | 323 | 311 | ||
Aggregate fair value of plan assets | 319 | 304 | ||
Employer contributions, including immaterial timing differences from adopted plan | 15 | |||
Company's contributions to its pension plans | 14 | 24 | ||
Contribution to defined benefit plan utilizing funds from terminated plan | 6 | |||
Benefit payments made | 28 | 24 | ||
Pension Plans | Minimum | Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions | $ 10 | |||
Pension Plans | Maximum | Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions | $ 20 | |||
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial loss | $ 0 | $ 1 | ||
Weighted average discount rate | 4.96% | 5.12% | ||
Net actuarial loss | $ 0 | $ 7 | ||
Company's contributions to its pension plans | 2 | 1 | ||
Expected contributions | 2 | |||
Benefit payments made | $ 2 | $ 1 |
PENSIONS AND OTHER POSTRETIRE_4
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Schedule of Net Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Benefits | |||
Components of Net Periodic Cost: | |||
Service Cost | $ 9 | $ 14 | $ 15 |
Interest Cost | 22 | 12 | 10 |
Expected Return on Plan Assets | (23) | (21) | (19) |
Amortization of Actuarial Loss (Gain) | 5 | 3 | 5 |
Net Periodic Cost (Benefit) | 13 | 8 | 11 |
Postretirement Benefits | |||
Components of Net Periodic Cost: | |||
Service Cost | 0 | 0 | 0 |
Interest Cost | 2 | 1 | 1 |
Expected Return on Plan Assets | 0 | 0 | 0 |
Amortization of Actuarial Loss (Gain) | (3) | (2) | (2) |
Net Periodic Cost (Benefit) | $ (1) | $ (1) | $ (1) |
PENSIONS AND OTHER POSTRETIRE_5
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Benefits | |||
Weighted Average Assumptions: | |||
Discount Rate | 4.86% | 2.46% | 2.11% |
Rate of Increase in Future Compensation Levels | 3.16% | 1.80% | 3.62% |
Expected Long-Term Rate of Return on Plan Assets | 5.59% | 3.86% | 3.59% |
Initial Health Care Cost Trend Rate | 0% | 0% | 0% |
Ultimate Health Care Cost Trend Rate | 0 | 0 | 0 |
Postretirement Benefits | |||
Weighted Average Assumptions: | |||
Discount Rate | 5.12% | 2.92% | 2.52% |
Rate of Increase in Future Compensation Levels | 0% | 0% | 0% |
Expected Long-Term Rate of Return on Plan Assets | 0% | 0% | 0% |
Initial Health Care Cost Trend Rate | 7.25% | 6.15% | 6.40% |
Ultimate Health Care Cost Trend Rate | 0.0450 | 0.0450 | 0.0450 |
PENSIONS AND OTHER POSTRETIRE_6
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Schedule of Net Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Benefit Obligation: | |||
Net Actuarial Loss (Gain) | $ 10 | ||
Amounts Recognized on the Consolidated Balance Sheets Consist of: | |||
Accrued Pension and Postretirement Benefits Liability — Noncurrent | (104) | $ (111) | |
Pension Benefits | |||
Change in Benefit Obligation: | |||
Benefit Obligation at Beginning of Year | 471 | 627 | |
Service Cost | 9 | 14 | $ 15 |
Interest Cost | 22 | 12 | 10 |
Net Actuarial Loss (Gain) | 10 | (152) | |
Foreign Currency Exchange | 10 | (27) | |
Benefits Paid | (28) | (24) | |
Acquisition | 0 | 12 | |
Other | 0 | 9 | |
Benefit Obligation at End of Year | 494 | 471 | 627 |
Change in Plan Assets: | |||
Fair Value of Plan Assets at Beginning of Year | 397 | 557 | |
Actual Return on Plan Assets | 34 | (149) | |
Employer Contributions | 14 | 24 | |
Foreign Currency Exchange | 10 | (27) | |
Benefits Paid | (28) | (24) | |
Acquisition | 0 | 7 | |
Other | 0 | 9 | |
Fair Value of Plan Assets at End of Year | 427 | 397 | 557 |
Plan Assets Less than Projected Benefit Obligation | (67) | (74) | |
Amounts Recognized on the Consolidated Balance Sheets Consist of: | |||
Pension Assets | 18 | 19 | |
Accrued Pension and Postretirement Benefits Liability — Current | (4) | (5) | |
Accrued Pension and Postretirement Benefits Liability — Noncurrent | (81) | (88) | |
Accumulated Other Comprehensive Income: | |||
Net Actuarial Loss (Gain) | 83 | 82 | |
Prior Service Cost (Credit) | $ 4 | $ 3 | |
Weighted Average Calculations: | |||
Discount Rate | 4.69% | 4.86% | |
Rates of Increase in Future Compensation Levels | 2.90% | 3.16% | |
Initial Health Care Cost Trend Rate | 0% | 0% | |
Ultimate Health Care Cost Trend Rate | 0% | 0% | |
Postretirement Benefits | |||
Change in Benefit Obligation: | |||
Benefit Obligation at Beginning of Year | $ 26 | $ 33 | |
Service Cost | 0 | 0 | 0 |
Interest Cost | 2 | 1 | 1 |
Net Actuarial Loss (Gain) | 0 | (7) | |
Foreign Currency Exchange | 0 | 0 | |
Benefits Paid | (2) | (1) | |
Acquisition | 0 | 0 | |
Other | 0 | 0 | |
Benefit Obligation at End of Year | 26 | 26 | 33 |
Change in Plan Assets: | |||
Fair Value of Plan Assets at Beginning of Year | 0 | 0 | |
Actual Return on Plan Assets | 0 | 0 | |
Employer Contributions | 2 | 1 | |
Foreign Currency Exchange | 0 | 0 | |
Benefits Paid | (2) | (1) | |
Acquisition | 0 | 0 | |
Other | 0 | 0 | |
Fair Value of Plan Assets at End of Year | 0 | 0 | $ 0 |
Plan Assets Less than Projected Benefit Obligation | (26) | (26) | |
Amounts Recognized on the Consolidated Balance Sheets Consist of: | |||
Pension Assets | 0 | 0 | |
Accrued Pension and Postretirement Benefits Liability — Current | (3) | (3) | |
Accrued Pension and Postretirement Benefits Liability — Noncurrent | (23) | (23) | |
Accumulated Other Comprehensive Income: | |||
Net Actuarial Loss (Gain) | 0 | (1) | |
Prior Service Cost (Credit) | $ (19) | $ (21) | |
Weighted Average Calculations: | |||
Discount Rate | 4.96% | 5.12% | |
Rates of Increase in Future Compensation Levels | 0% | 0% | |
Initial Health Care Cost Trend Rate | 8.50% | 7.25% | |
Ultimate Health Care Cost Trend Rate | 4.45% | 4.50% |
PENSIONS AND OTHER POSTRETIRE_7
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Schedule of Allocation of Plan Assets (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target plan asset allocations | 100% | |
Actual plan asset allocations | 100% | 100% |
Cash | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target plan asset allocations | 4% | |
Actual plan asset allocations | 2% | 4% |
Equity Securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target plan asset allocations | 17% | |
Actual plan asset allocations | 25% | 26% |
Fixed Income Securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target plan asset allocations | 78% | |
Actual plan asset allocations | 65% | 45% |
Other Investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target plan asset allocations | 1% | |
Actual plan asset allocations | 8% | 25% |
PENSIONS AND OTHER POSTRETIRE_8
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Schedule of Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation horizon term (in years) | 3 years | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation horizon term (in years) | 5 years | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 427 | $ 397 | $ 557 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32 | 72 | |
Significant Observable Inputs (Level 2) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 277 | 201 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 33 | $ 33 |
Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 33 | |
Net Asset Value | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 100 | 91 | |
Cash | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 15 | |
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 10 | |
Cash | Significant Observable Inputs (Level 2) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Cash | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash | Net Asset Value | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
Equity Securities, Domestic | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 101 | 94 | |
Equity Securities, Domestic | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 5 | |
Equity Securities, Domestic | Significant Observable Inputs (Level 2) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Equity Securities, Domestic | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities, Domestic | Net Asset Value | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 97 | 88 | |
Equity Securities, Foreign | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 7 | |
Equity Securities, Foreign | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 7 | |
Equity Securities, Foreign | Significant Observable Inputs (Level 2) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities, Foreign | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities, Foreign | Net Asset Value | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed Income Securities | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 281 | 180 | |
Fixed Income Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21 | 15 | |
Fixed Income Securities | Significant Observable Inputs (Level 2) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 259 | 165 | |
Fixed Income Securities | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0 | |
Fixed Income Securities | Net Asset Value | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real Estate | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | ||
Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Real Estate | Significant Observable Inputs (Level 2) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | ||
Real Estate | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Real Estate | Net Asset Value | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Liability Driven Investment | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56 | ||
Liability Driven Investment | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35 | ||
Liability Driven Investment | Significant Observable Inputs (Level 2) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21 | ||
Liability Driven Investment | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Liability Driven Investment | Net Asset Value | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Diversified growth fund | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23 | 32 | |
Diversified growth fund | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Diversified growth fund | Significant Observable Inputs (Level 2) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 8 | |
Diversified growth fund | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 24 | |
Diversified growth fund | Net Asset Value | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Insurance Contracts | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 9 | |
Insurance Contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Insurance Contracts | Significant Observable Inputs (Level 2) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Insurance Contracts | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 9 | |
Insurance Contracts | Net Asset Value | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
PENSIONS AND OTHER POSTRETIRE_9
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value of Plan Assets at Beginning of Year | $ 33 | $ 33 |
Purchases | 0 | 11 |
Transfers Out, Net | (17) | (7) |
Foreign Currency Exchange | 2 | (4) |
Fair Value of Plan Assets at End of Year | $ 18 | $ 33 |
PENSIONS AND OTHER POSTRETIR_10
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | $ 29 |
2025 | 30 |
2026 | 32 |
2027 | 33 |
2028 | 34 |
2029— 2033 | 183 |
Postretirement Health Care Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | 2 |
2025 | 2 |
2026 | 2 |
2027 | 2 |
2028 | 2 |
2029— 2033 | $ 9 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 852 | $ 683 | $ 237 |
International | 80 | 33 | 52 |
Income before Income Taxes and Equity Income of Unconsolidated Entity | $ 932 | $ 716 | $ 289 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax (Expense) Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current Expense: | |||
U.S. | $ (150) | $ (25) | $ (2) |
International | (38) | (38) | (17) |
Total Current | (188) | (63) | (19) |
Deferred (Expense) Benefit: | |||
U.S. | (49) | (137) | (57) |
International | 27 | 6 | 2 |
Total Deferred | (22) | (131) | (55) |
Income Tax Expense | $ (210) | $ (194) | $ (74) |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income Tax Expense at U.S. Statutory Rate | $ (196) | $ (150) | $ (61) |
U.S. State and Local Tax Expense | (34) | (29) | (12) |
Permanent Items | 2 | 2 | (9) |
Provision to Return Adjustments | (3) | 4 | 4 |
Change in Valuation Allowance | 19 | (21) | (1) |
Unrealized Foreign Exchange | (7) | 22 | 5 |
International Tax Rate Differences | (4) | (6) | (3) |
U.S. Federal & State Tax Credits | 22 | 9 | 13 |
Domestic Minority Interest | 0 | 0 | 2 |
Deferred Adjustment due to IP Exit | 0 | 0 | (4) |
Russia Impairment | (3) | (20) | 0 |
Tax Effects Released from OCI | 0 | (10) | 0 |
Other | (6) | 5 | (8) |
Income Tax Expense | $ (210) | $ (194) | $ (74) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income Tax Expense at U.S. Statutory Rate | 21% | 21% | 21% |
U.S. State and Local Tax Expense | 3.60% | 4.10% | 4.10% |
Permanent Items | (0.30%) | (0.30%) | 3.20% |
Provision to Return Adjustments | 0.30% | (0.50%) | (1.40%) |
Change in Valuation Allowance | (2.10%) | 2.90% | 0.40% |
Unrealized Foreign Exchange | 0.80% | (3.10%) | (1.70%) |
International Tax Rate Differences | 0.50% | 0.80% | 1% |
U.S. Federal & State Tax Credits | (2.30%) | (1.30%) | (4.50%) |
Domestic Minority Interest | 0% | 0% | (0.70%) |
Deferred Adjustment due to IP Exit | 0% | 0% | 1.50% |
Russia Impairment | 0.30% | 2.80% | 0% |
Tax Effects Released from OCI | 0% | 1.40% | 0% |
Other | 0.70% | (0.60%) | 2.80% |
Income Tax Expense | 22.50% | 27.20% | 25.70% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Valuation Allowance [Line Items] | |||||
Deferred tax valuation allowance | $ 37,000,000 | $ 57,000,000 | $ 38,000,000 | $ 34,000,000 | |
U.S. federal, state and foreign income tax credits | (22,000,000) | ||||
Unrealized Foreign Exchange | (7,000,000) | 22,000,000 | 5,000,000 | ||
Russia impairment | 3,000,000 | 20,000,000 | 0 | ||
Tax Effects Released from OCI | 0 | 10,000,000 | 0 | ||
Tax expense related to deferred tax assets for executive compensation as a result of IP's exchange of remaining shares in GPIP | $ 4,000,000 | ||||
Tax credit carryforwards | 8,000,000 | ||||
Total gross unrecognized tax benefits | 30,000,000 | ||||
Deferred tax liability related to undistributed earnings of foreign subsidiary | 0 | ||||
Undistributed earnings on international subsidiaries | 92,000,000 | ||||
Foreign Tax Authority | |||||
Valuation Allowance [Line Items] | |||||
Deferred tax valuation allowance | 24,000,000 | ||||
Remeasurement of deferred tax liability for UK subsidiaries | $ 3,000,000 | ||||
Operating loss carryforwards not subject to expiration | 296,000,000 | ||||
Domestic Tax Authority | |||||
Valuation Allowance [Line Items] | |||||
Operating loss carryforwards subject to expiration | 52,000,000 | ||||
Domestic Tax Authority | Capital loss carryforward | |||||
Valuation Allowance [Line Items] | |||||
Deferred tax valuation allowance | 3,000,000 | ||||
SWEDEN | |||||
Valuation Allowance [Line Items] | |||||
Valuation allowances | (22,000,000) | 25,000,000 | |||
Deferred tax valuation allowance | 10,000,000 | ||||
NORWAY | |||||
Valuation Allowance [Line Items] | |||||
Valuation allowances | (22,000,000) | ||||
NETHERLANDS | |||||
Valuation Allowance [Line Items] | |||||
Valuation allowances | (22,000,000) | ||||
NIGERIA | |||||
Valuation Allowance [Line Items] | |||||
Deferred tax valuation allowance | $ 3,000,000 | ||||
BRAZIL | |||||
Valuation Allowance [Line Items] | |||||
Valuation allowances | $ 5,000,000 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Income Tax Assets: | ||||
Compensation Based Accruals | $ 34 | $ 37 | ||
Net Operating Loss Carryforwards | 74 | 103 | ||
Postretirement Benefits | 24 | 26 | ||
Tax Credits | 8 | 26 | ||
Capitalized Research & Development Costs | 64 | 44 | ||
Unrealized Foreign Exchange | 0 | 28 | ||
Other | 89 | 81 | ||
Valuation Allowance | (37) | (57) | $ (38) | $ (34) |
Total Deferred Income Tax Assets | 256 | 288 | ||
Deferred Income Tax Liabilities: | ||||
Property, Plant and Equipment | (672) | (661) | ||
Goodwill & Other Intangibles | (263) | (280) | ||
Other | (3) | 0 | ||
Net Noncurrent Deferred Income Tax Liabilities | (938) | (941) | ||
Net Deferred Income Tax Liability | $ (682) | $ (653) |
INCOME TAXES - Schedule of Valu
INCOME TAXES - Schedule of Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in valuation allowance | |||
Balance at Beginning of Period | $ 57 | $ 38 | $ 34 |
Balance at End of Period | 37 | 57 | 38 |
Adjustments to valuation allowance | |||
Changes in valuation allowance | |||
Additions Charge to Cost and Expense | 6 | 29 | 4 |
Additions Charge to Other Account | 1 | 1 | 4 |
Deduction Charged to Costs and Expenses | (25) | (8) | (3) |
Deductions Credited to Other Accounts | $ (2) | $ (3) | $ (1) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits | |||
Beginning Balance | $ 26 | $ 24 | $ 20 |
Additions for Tax Positions of Current Year | 2 | 2 | 1 |
Additions for Tax Positions of Prior Years | 8 | 1 | 3 |
Reductions for Tax Positions of Prior Years | (2) | (1) | 0 |
Ending Balance | $ 34 | $ 26 | $ 24 |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT - Schedule Of Interest Rate Swap Positions (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional amount | $ 750 |
Weighted Average Interest Rate | 4.71% |
FINANCIAL INSTRUMENTS, DERIVA_3
FINANCIAL INSTRUMENTS, DERIVATIVES AND HEDGING ACTIVITIES (Details) € in Millions | 3 Months Ended | 12 Months Ended | ||||
May 14, 2021 EUR (€) | Mar. 31, 2022 USD ($) | Dec. 31, 2024 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Interest Rate Risk | ||||||
Notional amount | $ 750,000,000 | |||||
Income tax expense (benefit) | 210,000,000 | $ 194,000,000 | $ 74,000,000 | |||
Derivatives not Designated as Hedges | ||||||
Notional amount | 750,000,000 | |||||
Foreign Currency Movement Effect | ||||||
Net currency exchange losses included in determining Income from Operations | $ 6,000,000 | $ 3,000,000 | 3,000,000 | |||
Euro Member Countries, Euro | ||||||
Deal Contingent Hedge | ||||||
Deal contingent hedge | € | € 700 | |||||
Not Designated as Hedging Instrument | Maximum | ||||||
Derivatives not Designated as Hedges | ||||||
Forward foreign exchange contracts, maximum range of maturities | 3 months | 3 months | ||||
Interest Rate Swap Agreements | ||||||
Interest Rate Risk | ||||||
Notional amount | 200,000,000 | |||||
Income tax expense (benefit) | $ 10,000,000 | |||||
Derivatives not Designated as Hedges | ||||||
Notional amount | 200,000,000 | |||||
Interest Rate Swap Agreements | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Interest Rate Risk | ||||||
Amount of ineffectiveness | $ 0 | $ 0 | ||||
Amounts excluded from the measure of effectiveness | 0 | 0 | ||||
Commodity Risk | ||||||
Amount of ineffectiveness | 0 | 0 | ||||
Amounts excluded from the measure of effectiveness | 0 | 0 | ||||
Commodity Contracts | Cash Flow Hedging | Forecast | ||||||
Commodity Risk | ||||||
Percentage of natural gas use hedged | 65% | |||||
Commodity Contracts | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Interest Rate Risk | ||||||
Amount of ineffectiveness | 0 | 0 | ||||
Amounts excluded from the measure of effectiveness | 0 | 0 | ||||
Commodity Risk | ||||||
Amount of ineffectiveness | 0 | 0 | ||||
Amounts excluded from the measure of effectiveness | 0 | 0 | ||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||||||
Interest Rate Risk | ||||||
Notional amount | 131,000,000 | 111,000,000 | ||||
Derivatives not Designated as Hedges | ||||||
Notional amount | 131,000,000 | 111,000,000 | ||||
Deal Contingent Foreign Exchange Contract | Business Combinations, Exit Activities and Other Special Charges, Net | ||||||
Deal Contingent Hedge | ||||||
Foreign Currency Contracts | $ 0 | $ 0 | $ 48,000,000 |
FAIR VALUE MEASUREMENT - Additi
FAIR VALUE MEASUREMENT - Additional Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 5,039 | $ 4,749 |
Long-term debt, carrying value | 5,217 | 5,097 |
Expected reclassification of pre-tax losses in the next twelve months from ACOL to earnings | 8 | |
Commodity Contracts | Designated as Hedging Instrument | Other Accrued Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | $ 7 | $ 12 |
FAIR VALUE MEASUREMENT - Schedu
FAIR VALUE MEASUREMENT - Schedule of Effect of Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss | $ 28 | $ 2 | $ (13) |
Amount of Loss (Gain) Recognized in Statement of Operations | 32 | (12) | (3) |
Commodity Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss | 32 | 2 | (11) |
Commodity Contracts | Cost of Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss (Gain) Recognized in Statement of Operations | 35 | (12) | (11) |
Foreign Currency Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss | 0 | 0 | (2) |
Foreign Currency Contracts | Other Expense (Income), Net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss (Gain) Recognized in Statement of Operations | 0 | 0 | 2 |
Unrealized losses | (3) | (9) | (5) |
Interest Rate Swap Agreements | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss | (4) | 0 | 0 |
Interest Rate Swap Agreements | Interest Expense, Net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss (Gain) Recognized in Statement of Operations | (3) | 0 | 6 |
Deal Contingent Foreign Exchange Contract | Business Combinations, Exit Activities and Other Special Charges, Net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized losses | $ 0 | $ 0 | $ 48 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Change in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total Other Comprehensive Income, Net of Tax | $ 64 | $ (154) | $ 23 |
Derivative Instruments Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pretax Amount | 4 | 22 | 7 |
Tax Effect | (1) | (18) | (2) |
Total Other Comprehensive Income, Net of Tax | 3 | 4 | 5 |
Pension and Postretirement Benefit Plans (Loss) Gain | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pretax Amount | (5) | (22) | 53 |
Tax Effect | 1 | 13 | (8) |
Total Other Comprehensive Income, Net of Tax | (4) | (9) | 45 |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pretax Amount | 61 | (156) | (28) |
Tax Effect | 4 | 8 | 0 |
Total Other Comprehensive Income, Net of Tax | 65 | (148) | (28) |
Accumulated Other Comprehensive (Loss) Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pretax Amount | 60 | (156) | 32 |
Tax Effect | 4 | 3 | (10) |
Total Other Comprehensive Income, Net of Tax | $ 64 | $ (153) | $ 22 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Balance in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Accumulated Derivative Instruments Loss | $ (1) | $ (4) |
Pension and Postretirement Benefit Plans | (107) | (103) |
Currency Translation Adjustment | (205) | (270) |
Accumulated Other Comprehensive Loss | $ (313) | $ (377) |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Minimum purchase commitments | $ 1,069 |
2024 | |
Long-term Purchase Commitment [Line Items] | |
Minimum purchase commitments | 713 |
2025 | |
Long-term Purchase Commitment [Line Items] | |
Minimum purchase commitments | 296 |
2026 | |
Long-term Purchase Commitment [Line Items] | |
Minimum purchase commitments | 19 |
2027 | |
Long-term Purchase Commitment [Line Items] | |
Minimum purchase commitments | 9 |
2028 | |
Long-term Purchase Commitment [Line Items] | |
Minimum purchase commitments | 8 |
Thereafter | |
Long-term Purchase Commitment [Line Items] | |
Minimum purchase commitments | $ 24 |
BUSINESS SEGMENT AND GEOGRAPH_3
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION - Additional Details (Details) | 12 Months Ended |
Dec. 31, 2023 facilities segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 3 |
Number of paperboard mills | facilities | 7 |
BUSINESS SEGMENT AND GEOGRAPH_4
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 9,383 | $ 9,410 | $ 7,131 |
Net sales | 9,428 | 9,440 | 7,156 |
Income (loss) from operations | 1,174 | 906 | 407 |
Capital Expenditures | 804 | 549 | 802 |
Depreciation and Amortization | 619 | 553 | 489 |
Assets | 11,175 | 10,328 | 10,457 |
Operating Segments | Paperboard Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,022 | 1,290 | 1,007 |
Income (loss) from operations | (23) | 45 | (10) |
Capital Expenditures | 479 | 336 | 615 |
Depreciation and Amortization | 284 | 242 | 231 |
Assets | 3,905 | 3,516 | 3,482 |
Operating Segments | Americas Paperboard Packaging | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,200 | 6,015 | 4,996 |
Income (loss) from operations | 1,088 | 800 | 456 |
Capital Expenditures | 144 | 131 | 113 |
Depreciation and Amortization | 186 | 173 | 176 |
Assets | 4,220 | 3,822 | 3,682 |
Operating Segments | Europe Paperboard Packaging | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,024 | 1,973 | 992 |
Income (loss) from operations | 127 | 59 | 82 |
Capital Expenditures | 101 | 43 | 37 |
Depreciation and Amortization | 113 | 109 | 53 |
Assets | 2,484 | 2,474 | 2,669 |
Corporate/Other/Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | 182 | 162 | 161 |
Income (loss) from operations | (18) | 2 | (121) |
Capital Expenditures | 80 | 39 | 37 |
Depreciation and Amortization | 36 | 29 | 29 |
Assets | $ 566 | $ 516 | $ 624 |
BUSINESS SEGMENT AND GEOGRAPH_5
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION - Schedule of Segment Reporting Information, by Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 9,383 | $ 9,410 | $ 7,131 |
Net Sales | 9,428 | 9,440 | 7,156 |
Long-lived assets | 4,992 | 4,579 | 4,677 |
Reportable Geographical Components | Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 6,646 | 6,741 | 5,543 |
Long-lived assets | 4,178 | 3,813 | 3,865 |
Reportable Geographical Components | International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 2,782 | 2,699 | 1,613 |
Long-lived assets | $ 814 | $ 766 | $ 812 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net Income Attributable to Graphic Packaging Holding Company | $ 723 | $ 522 | $ 204 |
Weighted Average Shares: | |||
Basic (in shares) | 308.2 | 308.8 | 297.1 |
Dilutive effect of RSUs (in shares) | 0.9 | 0.7 | 0.8 |
Diluted (in shares) | 309.1 | 309.5 | 297.9 |
Earnings Per Share — Basic (in dollars per share) | $ 2.35 | $ 1.69 | $ 0.69 |
Earnings Per Share — Diluted (in dollars per share) | $ 2.34 | $ 1.69 | $ 0.68 |
CHANGES IN ACCUMULATED OTHER _3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule Of Changes In Accumulated Other Comprehensive Loss (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 2,150 |
Other Comprehensive (Loss) Income before Reclassifications | 38 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 26 |
Total Other Comprehensive Income, Net of Tax | 64 |
Ending balance | 2,782 |
Derivatives Instruments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (4) |
Other Comprehensive (Loss) Income before Reclassifications | (21) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 24 |
Total Other Comprehensive Income, Net of Tax | 3 |
Ending balance | (1) |
Pension and Postretirement Benefit Plans (Loss) Gain | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (103) |
Other Comprehensive (Loss) Income before Reclassifications | (6) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 2 |
Total Other Comprehensive Income, Net of Tax | (4) |
Ending balance | (107) |
Currency Translation Adjustments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (270) |
Other Comprehensive (Loss) Income before Reclassifications | 65 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 0 |
Total Other Comprehensive Income, Net of Tax | 65 |
Ending balance | (205) |
Accumulated Other Comprehensive (Loss) Income | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (377) |
Ending balance | $ (313) |
CHANGES IN ACCUMULATED OTHER _4
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cost of Sales | $ 7,311 | $ 7,610 | $ 6,085 | |
Total before Tax | (932) | (716) | (289) | |
Tax Expense (Benefit) | 210 | 194 | 74 | |
Total, Net of Tax | (723) | (522) | (216) | |
Total Reclassifications for the Period | (722) | $ (522) | $ (215) | |
Interest Rate Swap Agreements | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax Expense (Benefit) | $ 10 | |||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total Reclassifications for the Period | 26 | |||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Instruments Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before Tax | 32 | |||
Tax Expense (Benefit) | (8) | |||
Total, Net of Tax | 24 | |||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Instruments Gain (Loss) | Commodity Contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cost of Sales | 35 | |||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Instruments Gain (Loss) | Interest Rate Swap Agreements | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest Expense, Net | (3) | |||
Reclassification out of Accumulated Other Comprehensive Income | Pension and Postretirement Benefit Plans (Loss) Gain | Pension Benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before Tax | 5 | |||
Tax Expense (Benefit) | (1) | |||
Total, Net of Tax | 4 | |||
Reclassification out of Accumulated Other Comprehensive Income | Pension and Postretirement Benefit Plans (Loss) Gain | Other Postretirement Benefits Plan | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before Tax | 3 | |||
Tax Expense (Benefit) | 1 | |||
Total, Net of Tax | $ 2 |
EXIT ACTIVITIES - Additional In
EXIT ACTIVITIES - Additional Information (Details) $ in Millions | 3 Months Ended | 7 Months Ended | 12 Months Ended | ||||||
Feb. 07, 2023 USD ($) facilities | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) facilities | Sep. 30, 2021 facilities | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) mill Facility | Dec. 31, 2022 USD ($) mill | Dec. 31, 2021 USD ($) | Dec. 31, 2019 facilities | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Incurred Cost Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | incurred charges | ||||||||
Facility Closing | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of mills expected to close | 3 | 2 | 3 | 2 | 2 | ||||
Number of mills with accelerated closure | facilities | 1 | ||||||||
Restructuring costs | $ 89 | $ 17 | $ 38 | ||||||
Number of mills remaining open | facilities | 1 | ||||||||
Number of additional mills expected to be closed | Facility | 2 | ||||||||
Expected costs associated with closures associated with severance activity | $ 13 | $ 13 | |||||||
Facility Closing | Folding Carton Plant | Minimum | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 10 | ||||||||
Accelerated depreciation related to plant closure | 15 | ||||||||
Facility Closing | Folding Carton Plant | Maximum | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 15 | ||||||||
Accelerated depreciation related to plant closure | 20 | ||||||||
Facility Closing | Folding Carton Plant | Construction-in-Progress | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Accelerated depreciation related to plant closure | 10 | ||||||||
Facility Closing | Recycled Paperboard Manufacturing | Minimum | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 20 | ||||||||
Accelerated depreciation related to plant closure | 15 | ||||||||
Facility Closing | Recycled Paperboard Manufacturing | Maximum | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 25 | ||||||||
Accelerated depreciation related to plant closure | 20 | ||||||||
Discontinued Project | Texarkana, Texas | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | $ 16 | $ 16 | |||||||
One-time Termination Benefits | Folding Carton Plant | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 9 | ||||||||
One-time Termination Benefits | Tama Closure | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | $ 3 | ||||||||
One-time Termination Benefits | Tama Closure | Construction-in-Progress | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 27 | ||||||||
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 | 2 | ||||||||
Start Up Costs | Recycled Paperboard Manufacturing | Construction-in-Progress | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | $ 5 | ||||||||
Recycled Paperboard Manufacturing | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Investments | $ 1,000 |
EXIT ACTIVITIES - Schedule of R
EXIT ACTIVITIES - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Total | $ 89 | $ 17 | $ 38 |
Special Charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Write-offs and Start-Up Costs | 22 | 9 | 0 |
Special Charges | Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs and other | 25 | 1 | 21 |
Cost of Sales | Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Accelerated Depreciation | $ 42 | $ 7 | $ 17 |
EXIT ACTIVITIES - Schedule of_2
EXIT ACTIVITIES - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 1 | $ 8 |
Costs Incurred | 25 | 1 |
Payments | (4) | (6) |
Adjustments | (1) | (2) |
Ending balance | $ 21 | $ 1 |
IMPAIRMENT AND DIVESTITURE OF_2
IMPAIRMENT AND DIVESTITURE OF RUSSIAN BUSINESS - Additional Information (Details) $ in Millions | 3 Months Ended | 11 Months Ended | 12 Months Ended | 24 Months Ended | ||||
Nov. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) foldingCartonFacility | Nov. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Impairment of Russian Business | $ 12 | |||||||
Valuation allowance | $ 37 | 57 | $ 37 | $ 38 | $ 34 | |||
Russian Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of packaging facilities | foldingCartonFacility | 2 | |||||||
Disposal group’s outstanding shares (in percent) | 100% | |||||||
Held-for-sale | Russian Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Asset impairment charges | $ 10 | $ 96 | $ 106 | |||||
Impairment of Russian Business | $ 12 | |||||||
Disposed of by Sale | Russian Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales | $ 62 | $ 62 | ||||||
Valuation allowance | 48 | 48 | ||||||
Gain (loss) on disposition of business | 4 | |||||||
Total net sales | 90 | |||||||
Net operating income | 8 | |||||||
Loans payable | $ 35 | $ 35 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - International Paper Company - NACP Combination $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Fiber Procurement And Corrugated Products | |
Related Party Transaction [Line Items] | |
Payments to suppliers | $ 4 |
Wood | |
Related Party Transaction [Line Items] | |
Payments to suppliers | 81 |
Ink Supply | |
Related Party Transaction [Line Items] | |
Payments to suppliers | $ 13 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | Feb. 16, 2024 | Feb. 19, 2024 |
Subsequent Event [Line Items] | ||
Cash dividends declared (in dollars per share) | $ 0.10 | |
Augusta, Georgia Paperboard Manufacturing Facility | Disposed of by Sale | ||
Subsequent Event [Line Items] | ||
Sales | $ 700 |