Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity File Number | 001-39528 | |
Entity Registrant Name | PACTIV EVERGREEN INC. | |
Entity Central Index Key | 0001527508 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-1538656 | |
Entity Address, Address Line One | 1900 W. Field Court | |
Entity Address, City or Town | Lake Forest | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60045 | |
City Area Code | 847 | |
Local Phone Number | 482-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 177,157,710 | |
Title of each class | Common stock, $0.001 par value | |
Trading Symbol(s) | PTVE | |
Name of each exchange on which registered | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net revenues | $ 1,164 | $ 1,212 |
Cost of sales | (1,056) | (1,038) |
Gross profit | 108 | 174 |
Selling, general and administrative expenses | (126) | (123) |
Restructuring, asset impairment and other related charges | 2 | (3) |
Other income, net | 6 | 77 |
Operating (loss) income from continuing operations | (10) | 125 |
Non-operating income, net | 23 | 16 |
Interest expense, net | (42) | (102) |
(Loss) income from continuing operations before tax | (29) | 39 |
Income tax benefit | 18 | 94 |
(Loss) income from continuing operations | (11) | 133 |
(Loss) income from discontinued operations, net of income taxes | (3) | 3 |
Net (loss) income | (14) | 136 |
Income attributable to non-controlling interests | (1) | |
Net (loss) income attributable to Pactiv Evergreen Inc. common shareholders | $ (15) | $ 136 |
From continuing operations | ||
Basic | $ (0.07) | $ 0.99 |
Diluted | (0.07) | 0.99 |
From discontinued operations | ||
Basic | (0.02) | 0.02 |
Diluted | (0.02) | 0.02 |
Total | ||
Basic | (0.09) | 1.01 |
Diluted | $ (0.09) | $ 1.01 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Other Comprehensive Income [Abstract] | ||
Net (loss) income | $ (14) | $ 136 |
Other comprehensive loss, net of income taxes: | ||
Currency translation adjustments | (20) | (173) |
Other comprehensive loss | (20) | (173) |
Comprehensive loss | (34) | (37) |
Comprehensive income attributable to non-controlling interests | (1) | |
Comprehensive loss attributable to Pactiv Evergreen Inc. common shareholders | $ (35) | $ (37) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 328 | $ 458 |
Accounts receivable, net of allowances for doubtful accounts of $3 and $3 | 425 | 375 |
Related party receivables | 49 | 55 |
Inventories | 816 | 784 |
Other current assets | 150 | 175 |
Assets held for sale | 0 | 26 |
Total current assets | 1,768 | 1,873 |
Property, plant and equipment, net | 1,687 | 1,685 |
Operating lease right-of-use assets, net | 278 | 260 |
Goodwill | 1,760 | 1,760 |
Intangible assets, net | 1,079 | 1,092 |
Deferred income taxes | 9 | 7 |
Other noncurrent assets | 170 | 166 |
Total assets | 6,751 | 6,843 |
Liabilities | ||
Accounts payable | 356 | 313 |
Related party payables | 8 | 10 |
Current portion of long-term debt | 15 | 15 |
Current portion of operating lease liabilities | 56 | 57 |
Income taxes payable | 10 | 10 |
Accrued and other current liabilities | 332 | 322 |
Liabilities held for sale | 0 | 12 |
Total current liabilities | 777 | 739 |
Long-term debt | 3,903 | 3,965 |
Long-term operating lease liabilities | 236 | 217 |
Deferred income taxes | 170 | 193 |
Long-term employee benefit obligations | 496 | 519 |
Other noncurrent liabilities | 143 | 136 |
Total liabilities | 5,725 | 5,769 |
Commitments and contingencies (Note 13) | ||
Equity | ||
Common stock, $0.001 par value; 2,000,000,000 shares authorized; 177,157,710 shares issued and outstanding as of March 31, 2021 and December 31, 2020 | 0 | 0 |
Preferred stock, $0.001 par value; 200,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Additional paid in capital | 618 | 614 |
Accumulated other comprehensive loss | (369) | (349) |
Retained earnings | 773 | 806 |
Total equity attributable to Pactiv Evergreen Inc. common shareholders | 1,022 | 1,071 |
Non-controlling interests | 4 | 3 |
Total equity | 1,026 | 1,074 |
Total liabilities and equity | $ 6,751 | $ 6,843 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3 | $ 3 |
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 177,157,710 | 177,157,710 |
Common stock, shares outstanding (in shares) | 177,157,710 | 177,157,710 |
Preferred stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Non-controlling Interests |
Beginning balance at Dec. 31, 2019 | $ 2,082 | $ 103 | $ (518) | $ 2,494 | $ 3 | |
Beginning balance, Shares at Dec. 31, 2019 | 134,400,000 | |||||
Net (loss) income | 136 | 136 | ||||
Other comprehensive loss, net of income taxes | (173) | (173) | ||||
Distribution of Reynolds Consumer Products Inc. | (46) | (48) | (11) | 13 | ||
Dividends paid to non-controlling interests | (1) | (1) | ||||
Ending balance at Mar. 31, 2020 | 1,998 | 55 | (702) | 2,643 | 2 | |
Ending balance, Shares at Mar. 31, 2020 | 134,400,000 | |||||
Beginning balance at Dec. 31, 2020 | $ 1,074 | 614 | (349) | 806 | 3 | |
Beginning balance, Shares at Dec. 31, 2020 | 177,157,710 | 177,200,000 | ||||
Net (loss) income | $ (14) | (15) | 1 | |||
Other comprehensive loss, net of income taxes | (20) | (20) | ||||
Dividends paid to common shareholders ($0.10 per share) | (18) | (18) | ||||
Equity based compensation | 4 | 4 | ||||
Ending balance at Mar. 31, 2021 | $ 1,026 | $ 618 | $ (369) | $ 773 | $ 4 | |
Ending balance, Shares at Mar. 31, 2021 | 177,157,710 | 177,200,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2021$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Common stock, dividends | $ 0.10 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash provided by (used in) operating activities | |||
Net (loss) income | $ (14) | $ 136 | |
Adjustments to reconcile net (loss) income to operating cash flows: | |||
Depreciation and amortization | 73 | 135 | |
Deferred income taxes | (27) | (14) | |
Unrealized loss on derivatives | 1 | 19 | |
Other asset impairment charges | (2) | 1 | |
Non-cash portion of employee benefit obligations | (21) | (15) | |
Non-cash portion of operating lease expense | 20 | 26 | |
Amortization of OID and DIC | 1 | 3 | |
Loss on extinguishment of debt | 1 | 5 | |
Other non-cash items, net | 2 | (4) | |
Change in assets and liabilities: | |||
Accounts receivable, net | (51) | (47) | |
Inventories | (35) | (59) | |
Other current assets | (3) | (1) | |
Accounts payable | 41 | 34 | |
Operating lease payments | (19) | (25) | |
Income taxes payable/receivable | 25 | (68) | |
Accrued and other current liabilities | 13 | (153) | |
Employee benefit obligation contributions | (2) | ||
Other assets and liabilities | 4 | (7) | |
Net cash provided by (used in) operating activities | 9 | (36) | |
Cash used in investing activities | |||
Acquisition of property, plant and equipment and intangible assets | (60) | (115) | |
Disposal of businesses, net of cash disposed | (6) | ||
Net cash used in investing activities | (66) | (115) | |
Cash (used in) provided by financing activities | |||
Long-term debt proceeds | 3,640 | ||
Long-term debt repayments | (62) | (3,206) | $ (8,944) |
Deferred financing transaction costs on long-term debt | (24) | ||
Premium on redemption of long-term debt | (1) | ||
Dividends paid to common shareholders | (18) | ||
Cash held by Reynolds Consumer Products at the time of distribution | (31) | ||
Other financing activities | (2) | ||
Net cash (used in) provided by financing activities | (81) | 377 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2) | (9) | |
(Decrease) increase in cash, cash equivalents and restricted cash | (140) | 217 | |
Cash, cash equivalents and restricted cash as of beginning of the period | 468 | 1,294 | 1,294 |
Cash, cash equivalents and restricted cash as of end of the period | 328 | 1,511 | 468 |
Cash, cash equivalents and restricted cash are comprised of: | |||
Cash and cash equivalents | 328 | 1,453 | 458 |
Cash and cash equivalents classified as assets held for sale or distribution | 54 | ||
Restricted cash included within other current assets | 4 | ||
Cash, cash equivalents and restricted cash as of end of the period | 328 | 1,511 | $ 468 |
Cash paid (received): | |||
Interest | 20 | 175 | |
Income taxes (refunded) paid | $ (16) | $ 11 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Right-of-use assets and lease liabilities recorded during period | $ 33 | $ 73 |
Reynolds Consumer Products Inc. | Discontinued Operations | ||
Shares repurchased and canceled during the period (in shares) | 35,791,985 | |
Ownership interest transferred | 100.00% |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Note 1. Nature of Operations and Basis of Presentation The accompanying condensed consolidated financial statements comprise the accounts of Pactiv Evergreen Inc. (“PTVE”) and its subsidiaries (“we”, “us”, “our” or the “Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and the related notes thereto included in our latest Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 25, 2021. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021. All significant intercompany transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that actual conditions could differ from what was anticipated in those estimates, which could materially affect our results of operations and balance sheet. Among other effects, such changes could result in future impairments of goodwill, intangibles and long-lived assets, and adjustments to reserves for employee benefits and income taxes. The estimated recoverable amounts associated with asset impairments recognized in all periods presented represents a Level 3 measurement in the fair value hierarchy, which includes inputs that are not based on observable market data. The worldwide COVID-19 pandemic has had, and will continue to have, a significant impact on our results of operations, and it may also have additional far-reaching impacts on many aspects of our operations including the impact on customer behaviors, business and manufacturing operations, our employees and the market in general. The extent to which the COVID-19 pandemic impacts our business, financial condition, results of operations, cash flows and liquidity may differ from management’s current estimates due to inherent uncertainties regarding the duration and further spread of the outbreak, actions taken to contain the virus and how quickly and to what extent normal economic and operating conditions can resume. On February 4, 2020, we distributed our interest in the operations that represented our former Reynolds Consumer Products ("RCP") business to our shareholder, PFL. The distribution was effected in a tax-free manner. The distribution occurred prior to and in preparation for the IPO of shares of common stock of RCPI ("RCPI IPO"), which was completed on February 4, 2020. To effect the distribution of RCP, we bought back 35,791,985 of our shares from PFL in consideration of us transferring all of our shares in RCPI to PFL. Upon the distribution of RCPI to PFL, we determined that our former RCP business met the criteria to be classified as a discontinued operation. On September 16, 2020, we distributed our interest in the operations that represented our former Graham Packaging Company ("GPC") business to our shareholder, PFL. The distribution was effected in a tax-free manner. The distribution occurred prior to and in preparation for our initial public offering (“IPO”), which was completed on September 21, 2020. To effect the distribution of GPC, we bought back 14,036,726 of our shares from PFL in consideration of us transferring all of our shares in Graham Packaging Company Inc. (“GPCI”) to PFL. Upon the distribution of GPCI to PFL, we determined that our former GPC business met the criteria to be classified as a discontinued operation. Unless otherwise indicated, information in these notes to the condensed consolidated financial statements relates to our continuing operations. Certain of our operations have been presented as discontinued. We present businesses that represent components as discontinued operations when the components either meet the criteria as held for sale, or are sold or distributed, and their expected or actual disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results. As discussed in Note 2, Discontinued Operations Related Party Transactions, Recently Adopted Accounting Guidance In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) Disclosure - Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU requires sponsors of defined benefit pension or other post-retirement plans to provide additional disclosures, including a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period. It also eliminates certain previous disclosure requirements. This ASU is effective for fiscal years beginning after December 15, 2020 and must be applied on a retrospective basis to all years presented. The requirements of this guidance have an impact on our annual disclosures but have no impact on the measurement and recognition of amounts in our condensed consolidated financial statements. Accounting Guidance Issued but Not Yet Adopted as of March 31, 2021 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). This ASU provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. This ASU is effective upon issuance and generally can be applied through the end of calendar year 2022. We are currently evaluating the impact and whether we plan to adopt the optional expedients and exceptions provided under this new standard. We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our condensed consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | Note 2. Discontinued Operations Our discontinued operations for the three months ended March 31, 2020 was primarily comprised of our former RCP and GPC businesses. Income from discontinued operations, which includes the results of GPC through September 16, 2020 and the results of RCP through February 4, 2020, were as follows: For the Three Months Ended March 31, 2020 Net revenues $ 652 Cost of sales (519 ) Gross profit 133 Selling, general and administrative expenses (82 ) Restructuring, asset impairment and other related charges (5 ) Interest expense, net (1) (21 ) Other expense, net — Income before income taxes from discontinued operations 25 Income tax expense (22 ) Net income from discontinued operations, before gain on disposal 3 Gain on disposal, net of income taxes — Net income from discontinued operations $ 3 (1) Includes interest expense and amortization of deferred transaction costs related to debt repaid in conjunction with the distribution of RCPI; also includes a $5 million loss on extinguishment of debt from the repayment of corporate debt on February 4, 2020 During the three months ended March 31, 2021, we recognized a charge of $3 million related to certain historical tax agreements from previously divested businesses. The income from discontinued operations for the three months ended March 31, 2020 includes depreciation and amortization expenses of $67 million. The income from discontinued operations for the three months ended March 31, 2020, includes asset impairment charges of $1 million and restructuring and other related charges of $4 million arising from the ongoing rationalization of GPC's manufacturing footprint, which are included in restructuring, asset impairment and other related charges in the above table. We have no significant continuing involvement in relation to GPCI. Subsequent to February 4, 2020, we continue to trade with RCPI in the ordinary course of business. Refer to Note 16, Related Party Transactions Cash flows from discontinued operations were as follows: For the Three Months Ended March 31, 2020 Net cash provided by operating activities $ 35 Net cash used in investing activities (42 ) Net cash provided by financing activities 478 Net cash from discontinued operations $ 471 Note 3. Assets and Liabilities Held for Sale On March 31, 2021, we completed the sale of the remaining South American closures businesses for an immaterial amount and recognized a partial reversal of the initial impairment charge of $2 million during the three months ended March 31, 2021 which was reflected in restructuring, asset impairment and other related charges in the condensed consolidated statement of (loss) income. This partial reversal was driven by a change in the carrying value of the assets held for sale as of the disposal date. The operations of the South American closures businesses did not meet the criteria to be presented as discontinued operations. The results of this business have historically been reported within the Other operating segment. The South American closures businesses' income from operations before income taxes for the three months ended March 31, 2020 and March 31, 2021, respectively, were insignificant. |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | Note 2. Discontinued Operations Our discontinued operations for the three months ended March 31, 2020 was primarily comprised of our former RCP and GPC businesses. Income from discontinued operations, which includes the results of GPC through September 16, 2020 and the results of RCP through February 4, 2020, were as follows: For the Three Months Ended March 31, 2020 Net revenues $ 652 Cost of sales (519 ) Gross profit 133 Selling, general and administrative expenses (82 ) Restructuring, asset impairment and other related charges (5 ) Interest expense, net (1) (21 ) Other expense, net — Income before income taxes from discontinued operations 25 Income tax expense (22 ) Net income from discontinued operations, before gain on disposal 3 Gain on disposal, net of income taxes — Net income from discontinued operations $ 3 (1) Includes interest expense and amortization of deferred transaction costs related to debt repaid in conjunction with the distribution of RCPI; also includes a $5 million loss on extinguishment of debt from the repayment of corporate debt on February 4, 2020 During the three months ended March 31, 2021, we recognized a charge of $3 million related to certain historical tax agreements from previously divested businesses. The income from discontinued operations for the three months ended March 31, 2020 includes depreciation and amortization expenses of $67 million. The income from discontinued operations for the three months ended March 31, 2020, includes asset impairment charges of $1 million and restructuring and other related charges of $4 million arising from the ongoing rationalization of GPC's manufacturing footprint, which are included in restructuring, asset impairment and other related charges in the above table. We have no significant continuing involvement in relation to GPCI. Subsequent to February 4, 2020, we continue to trade with RCPI in the ordinary course of business. Refer to Note 16, Related Party Transactions Cash flows from discontinued operations were as follows: For the Three Months Ended March 31, 2020 Net cash provided by operating activities $ 35 Net cash used in investing activities (42 ) Net cash provided by financing activities 478 Net cash from discontinued operations $ 471 Note 3. Assets and Liabilities Held for Sale On March 31, 2021, we completed the sale of the remaining South American closures businesses for an immaterial amount and recognized a partial reversal of the initial impairment charge of $2 million during the three months ended March 31, 2021 which was reflected in restructuring, asset impairment and other related charges in the condensed consolidated statement of (loss) income. This partial reversal was driven by a change in the carrying value of the assets held for sale as of the disposal date. The operations of the South American closures businesses did not meet the criteria to be presented as discontinued operations. The results of this business have historically been reported within the Other operating segment. The South American closures businesses' income from operations before income taxes for the three months ended March 31, 2020 and March 31, 2021, respectively, were insignificant. |
Impairment, Restructuring and O
Impairment, Restructuring and Other Related Charges | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Impairment, Restructuring and Other Related Charges | Note 4. Impairment, Restructuring and Other Related Charges During the three months ended March 31, 2021, we recorded the following impairment, restructuring and other related charges: Other asset impairment Total Other $ (2 ) $ (2 ) Total $ (2 ) $ (2 ) For the three months ended March 31, 2021, we recorded a partial reversal of the initial impairment charge relating to the sale of the South American closures business of $2 million. Refer to Note 3, Assets and Liabilities Held for Sale During the three months ended March 31, 2020, we recorded the following impairment, restructuring and other related charges: Other asset impairment Employee terminations Other restructuring charges Total Foodservice $ 1 $ — $ 1 $ 2 Beverage Merchandising — 1 — 1 Total $ 1 $ 1 $ 1 $ 3 For the three months ended March 31, 2020, we recorded non-cash impairment charges of $1 million relating to obsolete property, plant and equipment, $1 million for employee termination costs and $1 million for other restructuring costs. The remaining aggregate carrying values of the assets impaired at Foodservice was less than $1 million. The following table summarizes the changes to our restructuring liability for the three months ended March 31, 2021: December 31, 2020 Charges to earnings Cash paid March 31, 2021 Employee termination costs $ 7 $ — $ (3 ) $ 4 Total $ 7 $ — $ (3 ) $ 4 We expect to settle our restructuring liability within twelve months. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories The components of inventories consisted of the following: As of March 31, 2021 As of December 31, 2020 Raw materials $ 190 $ 180 Work in progress 108 108 Finished goods 429 410 Spare parts 89 86 Inventories $ 816 $ 784 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 6. Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following: As of March 31, 2021 As of December 31, 2020 Land and land improvements $ 86 $ 87 Buildings and building improvements 533 532 Machinery and equipment 3,236 3,148 Construction in progress 157 191 Property, plant and equipment, at cost 4,012 3,958 Less: accumulated depreciation (2,325 ) (2,273 ) Property, plant and equipment, net $ 1,687 $ 1,685 Depreciation expense related to property, plant and equipment was recognized in the following components in the condensed consolidated statements of (loss) income: For the Three Months March 31, 2021 March 31, 2020 Cost of sales $ 54 $ 50 Selling, general and administrative expenses 6 4 Total depreciation expense $ 60 $ 54 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7. Goodwill and Intangible Assets Goodwill by reportable segment was as follows: Foodservice Food Merchandising Beverage Merchandising Other (1) (2) Total Balance as of December 31, 2020 $ 924 $ 770 $ 66 $ — $ 1,760 Impairment charges — — — — — Balance as of March 31, 2021 $ 924 $ 770 $ 66 $ — $ 1,760 Accumulated impairment losses $ — $ — $ — $ 15 $ 15 (1) Other includes operations that do not meet the quantitative threshold for reportable segments. (2) During the three months ended March 31, 2021, we reduced the gross carrying amount of goodwill and accumulated impairment losses by $7 million for the disposition of the remaining South American closures businesses within the Other operating segment. Refer to Note 3, Assets and Liabilities Held for Sale , for additional details. Intangible assets, net consisted of the following: As of March 31, 2021 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible assets Customer relationships $ 1,019 $ (553 ) $ 466 $ 1,019 $ (540 ) $ 479 Other 20 (20 ) — 20 (20 ) — Total finite-lived intangible assets $ 1,039 $ (573 ) $ 466 $ 1,039 $ (560 ) $ 479 Indefinite-lived intangible assets Trademarks $ 554 $ — $ 554 $ 554 $ — $ 554 Other 59 — 59 59 — 59 Total indefinite-lived intangible assets $ 613 $ — $ 613 $ 613 $ — $ 613 Total intangible assets $ 1,652 $ (573 ) $ 1,079 $ 1,652 $ (560 ) $ 1,092 Amortization expense for intangible assets was $13 million and $14 million for the three months ended March 31, 2021 and 2020, respectively, and was recognized in selling, general and administrative expenses. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued and Other Current Liabilities | Note 8. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following: As of March 31, 2021 As of December 31, 2020 Accrued personnel costs $ 101 $ 117 Accrued rebates and credits 74 68 Accrued interest 34 16 Other (1) 123 121 Accrued and other current liabilities $ 332 $ 322 (1) Other includes items such as accruals for freight, utilities and property and other non-income related taxes. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 9. Debt Debt consisted of the following: As of March 31, 2021 As of December 31, 2020 Credit Agreement $ 2,453 $ 2,457 Notes: 5.125% Senior Secured Notes due 2023 — 59 4.000% Senior Secured Notes due 2027 1,000 1,000 Pactiv Debentures: 7.950% Debentures due 2025 276 276 8.375% Debentures due 2027 200 200 Other 12 12 Total principal amount of borrowings 3,941 4,004 Deferred financing transaction costs ("DIC") (14 ) (14 ) Original issue discounts, net of premiums ("OID") (9 ) (10 ) 3,918 3,980 Less: current portion (15 ) (15 ) Long-term debt $ 3,903 $ 3,965 We were in compliance with all debt covenants during the three months ended March 31, 2021 and the year ended December 31, 2020. As detailed in our Annual Report on Form 10-K for the year ended December 31, 2020, during the year ended December 31, 2020, we repaid portions of term loans, the securitization facility and notes totaling $8,944 million, for an aggregate price, including premiums, of $8,978 million, prior to maturity. This included first quarter repayments of $3,206 million of term loans, borrowings under the securitization facility and notes. The repayment of these borrowings resulted in a $5 million loss on extinguishment of debt reported within discontinued operations. Refer to Note 2, Discontinued Operations, Credit Agreement Certain subsidiaries of the Company are parties to a senior secured credit agreement dated August 5, 2016 as amended (the “Credit Agreement”). The Credit Agreement comprises the following term and revolving tranches: Maturity Date Value Drawn or Utilized as of March 31, 2021 Applicable Interest Rate as of March 31, 2021 Term Tranches U.S. term loans Tranche B-1 February 5, 2023 $ 1,207 LIBOR (floor of 0.000%) + 2.750% U.S. term loans Tranche B-2 February 5, 2026 $ 1,246 LIBOR (floor of 0.000%) + 3.250% Revolving Tranche (1) U.S. Revolving Loans August 5, 2024 $ 43 — (1) The Revolving Tranche represents a $250 million facility. The amount utilized is in the form of bank guarantees and letters of The weighted average contractual interest rates related to our U.S. term loans Tranche B-1 for the three months ended March 31, 2021 and 2020 were 2.88% and 4.44%, respectively. The weighted average contractual interest rates related to our U.S. term loans Tranche B-2 for the three months ended March 31, 2021 was 3.38%. The effective interest rates of our debt obligations under the Credit Agreement are not materially different from the contractual interest rates. Certain of our U.S. subsidiaries have guaranteed on a senior basis the obligations under the Credit Agreement and related documents to the extent permitted by law. The guarantors have granted security over substantially all of their assets to support the obligations under the Credit Agreement. This security is expected to be shared on a first priority basis with the note holders under the senior secured notes. Indebtedness under the Credit Agreement may be voluntarily repaid, in whole or in part, and must be mandatorily repaid in certain circumstances. We are required to make quarterly amortization payments of 0.25% of the principal amount of Tranche B-2 term loans. Additionally, we are required to make annual prepayments of term loans with up to 50% of excess cash flow (which will be reduced to 25% or 0% if specified senior secured first lien leverage ratios are met) as determined in accordance with the Credit Agreement. No excess cash flow prepayments were due in 2020 or are due in 2021 for the year ended December 31, 2020. Notes Outstanding Notes, as of March 31, 2021, are summarized below: Description Maturity date Semi-annual interest payment dates 4.000% Senior Secured Notes due 2027 October 15, 2027 April 15 and October 15, commencing April 15, 2021 On February 16, 2021, we repaid the remaining $59 million of the 5.125% senior secured notes at a price of 101.281%. The early repayment of these senior secured notes resulted in a loss on extinguishment of debt of $1 million in respect of the premium on redemption, which was recognized in interest expense, net in the consolidated statement of (loss) income. Assets pledged as security for borrowings We, and certain of our U.S. subsidiaries, have pledged substantially all of our assets as collateral to support the obligations under the Credit Agreement and the senior secured notes to the extent permitted by law. This security is expected to be shared on a first priority basis with the creditors under the Credit Agreement. Notes indentures restrictions The indenture governing the Notes contains customary covenants which restrict us from certain activities including, among other things, incurring debt, creating liens over assets, selling assets and making restricted payments, in each case except as permitted under the indenture governing the Notes. Early redemption option and change in control provisions Under the indenture governing the Notes, we can, at our option, elect to redeem the Notes under terms and conditions specified in the indenture. Under the indenture governing the Notes, in certain circumstances which would constitute a change in control, the holders of the Notes have the right to require us to repurchase the Notes at a premium. Pactiv Debentures As of March 31, 2021, we had outstanding the following debentures (together, the “Pactiv Debentures”): Description Maturity date Semi-annual interest payment dates 7.950% Debentures due 2025 December 15, 2025 June 15 and December 15 8.375% Debentures due 2027 April 15, 2027 April 15 and October 15 The effective interest rates of our debt obligations under the Pactiv Debentures are not materially different from the contractual interest rates. The Pactiv Debentures are not guaranteed and are unsecured. The indentures governing the Pactiv Debentures contain a negative pledge clause limiting the ability of certain of our entities, subject to certain exceptions, to (i) incur or guarantee debt that is secured by liens on “Principal Manufacturing Properties” (as such term is defined in the indentures governing the Pactiv Debentures) or on the capital stock or debt of certain subsidiaries that own or lease any such Principal Manufacturing Property and (ii) sell and then take an immediate lease back of such Principal Manufacturing Property. The 8.375% Debentures due 2027 may be redeemed at any time at our option, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus a make-whole premium, if any, plus accrued and unpaid interest to the date of the redemption. Other borrowings Other borrowings include finance lease obligations of $12 million as of March 31, 2021 and December 31, 2020, respectively. Scheduled Maturities Below is a schedule of required future repayments on our debt outstanding as of March 31, 2021: 2021 $ 11 2022 16 2023 1,220 2024 13 2025 289 Thereafter 2,392 Total principal amount of borrowings $ 3,941 Fair value of our long-term debt The fair value of our long-term debt as of March 31, 2021 and December 31, 2020 is a Level 2 fair value measurement. Below is a schedule of carrying values and fair values of our debt outstanding: As of March 31, 2021 As of December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Credit Agreement $ 2,444 $ 2,437 $ 2,447 $ 2,443 Notes: 5.125% Senior Secured Notes due 2023 — — 59 60 4.000% Senior Secured Notes due 2027 991 981 991 1,024 Pactiv Debentures: 7.950% Debentures due 2025 273 308 273 318 8.375% Debentures due 2027 198 229 198 235 Other 12 12 12 12 Total $ 3,918 $ 3,967 $ 3,980 $ 4,092 Interest expense, net Interest expense, net consisted of the following: As of March 31, 2021 As of March 31, 2020 Interest expense: Securitization Facility $ — $ 3 Credit Agreement 19 38 Notes 10 43 Pactiv Debentures 10 10 Interest income, related party (1) — (4 ) Interest income, other (1 ) (4 ) Amortization: Deferred financing transaction costs 1 6 Original issue discounts — 2 Derivative losses — 12 Net foreign currency exchange losses (gains) 1 (6 ) Loss on extinguishment of debt: Write-off of unamortized DIC and OID — — Redemption premiums 1 — Other 1 2 Interest expense, net (2) $ 42 $ 102 (1) Refer to Note 16, Related Party Transactions, for additional details (2) Amounts presented in the above table exclude interest expense and amortization of deferred financing transaction costs in respect of our 5.750 % Senior Secured Notes which were due 2020. Such amounts are presented within discontinued operations as these senior secured notes were required to be repaid in conjunction with the distribution of RCPI. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 10. Financial Instruments We had the following derivative instruments recorded at fair value in our condensed consolidated balance sheets: As of March 31, 2021 As of December 31, 2020 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Commodity swap contracts $ 6 $ — $ 9 $ (2 ) Total fair value $ 6 $ — $ 9 $ (2 ) Recorded in: Other current assets $ 6 $ — $ 9 $ — Accrued and other current liabilities — — — (2 ) Total fair value $ 6 $ — $ 9 $ (2 ) Our derivatives comprise commodity swaps. All derivatives represent Level 2 financial assets and liabilities. Our derivatives are valued using an income approach based on the observable market index prices less the contract rate multiplied by the notional amount or based on pricing models that rely on market observable inputs such as commodity prices. Our calculation of the fair value of these financial instruments takes into consideration the risk of non-performance, including counterparty credit risk. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with our derivatives by limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. During the three months ended March 31, 2021 and 2020, we recognized an unrealized loss of $1 million and $17 million, respectively, in cost of sales in the condensed consolidated statements of (loss) income. The following table provides the detail of outstanding commodity derivative contracts as of March 31, 2021: Type Unit of measure Contracted volume Contracted price range Contracted date of maturity Natural gas swaps Million BTU 2,148,395 $2.47 - $2.94 May 2021 - Sep 2022 Polymer-grade propylene swaps Pound 24,571,427 $0.38 - $0.52 Apr 2021 - Aug 2021 Benzene swaps U.S. liquid gallon 5,518,856 $1.51 - $2.96 May 2021 - Dec 2021 Diesel swaps U.S. liquid gallon 233,160 $2.41 - $2.50 Apr 2021 - Dec 2021 Low-density polyethylene swaps Pound 9,000,000 $ 0.71 Apr 2021 - Dec 2021 Ethylene swaps Pound 161,944 $ 0.26 Apr 2021 - Apr 2021 |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | Note 11. Employee Benefits Net periodic benefit income for defined benefit pension plans and other post-employment benefit plans consisted of the following: For the Three Months Ended March 31, 2021 2020 Service cost $ (2 ) $ (2 ) Interest cost (27 ) (35 ) Expected return on plan assets 50 51 Total net periodic benefit income $ 21 $ 14 Net periodic benefit income for defined benefit pension plans and other post-employment benefit plans has been recognized as follows: For the Three Months Ended March 31, 2021 2020 Cost of sales $ (2 ) $ (2 ) Non-operating income, net 23 16 Total net periodic benefit income $ 21 $ 14 No contributions to the Pactiv Evergreen Pension Plan (“PEPP”) are expected to be made in 2021. |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2021 | |
Other Income And Expenses [Abstract] | |
Other Income, Net | Note 12. Other Income, Net Other income, net consisted of the following: For the Three Months Ended March 31, 2021 2020 Related party management fee (1) $ — $ (5 ) Foreign exchange gains on cash (2) — 84 Transition service agreement income (1) 4 4 Other 2 (6 ) Other income, net $ 6 $ 77 (1) See Note 16, Related Party Transactions, for additional details. The transition services agreement income is primarily attributable to services provided to our former segments, RCP and GPC, and our former closures businesses. (2) Primarily arose from holding U.S. dollars in non-U.S. dollar functional currency entities. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies We are from time to time party to litigation, legal proceedings and tax examinations arising from our operations. Most of these matters involve allegations of damages against us relating to employment matters, personal injury and commercial or contractual disputes. We record estimates for claims and proceedings that constitute a present obligation when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of such obligation can be made. While it is not possible to predict the outcome of any of these matters, based on our assessment of the facts and circumstances, we do not believe any of these matters, individually or in the aggregate, will have a material adverse effect on our balance sheet, results of operations or cash flows. However, actual outcomes may differ from those expected and could have a material effect on our balance sheet, results of operations or cash flows in a future period. On April 14, 2021, MP2 Energy LLC (“MP2”) filed a lawsuit against Pactiv LLC (“Pactiv”), one of our indirect subsidiaries, in state court in Montgomery County, Texas. In this lawsuit, MP2 seeks to collect approximately $40 million from Pactiv that MP2 claims that Pactiv owes MP2 under an energy management services agreement (“EMSA”). Under the EMSA, Pactiv agreed, among other things, to sell MP2 a certain contract quantity of energy at a specified price. If this contract quantity of energy became unavailable for Pactiv to sell to MP2, the EMSA granted MP2 the right to contract for the purchase of the shortfall in the contract quantity, and to charge Pactiv for the cost incurred by MP2 in contracting for that shortfall, “unless due to an event of Force Majeure.” On February 15, 2021, Pactiv notified MP2 that Pactiv was excused by Force Majeure under the EMSA to the extent that the contract quantity of energy was not available for Pactiv to sell to MP2 because of the winter weather emergency caused by Winter Storm Uri. Even though MP2 does not dispute that Winter Storm Uri constituted an event of Force Majeure under the EMSA, MP2 nevertheless seeks to hold Pactiv responsible in this lawsuit for $40 million in costs that MP2 claims it incurred in contracting for a shortfall in Pactiv’s contract quantity of energy during the event of Force Majeure. Pactiv disputes any liability to MP2 and maintains that Pactiv acted reasonably at all times and that the event of Force Majeure excused any obligation Pactiv had to supply the contract quantity under the EMSA or to reimburse MP2 for its cost in contracting for any shortfall in the contract quantity. Pactiv believes that MP2’s claim is without merit and that Pactiv has strong defenses against MP2’s claim, including, but not limited to, Force Majeure. Pactiv intends to vigorously defend itself against MP2’s claim in this lawsuit. Although we are confident of Pactiv’s legal position in this matter and do not consider it probable that this matter will result in a material loss, we can offer no assurance that Pactiv will in fact obtain a favorable outcome. As part of the agreements for the sale of various businesses, we have provided certain warranties and indemnities to the respective purchasers as set out in the respective sale agreements. These warranties and indemnities are subject to various terms and conditions affecting the duration and total amount of the indemnities. As of March 31, 2021, we are not aware of any material claims under these agreements that would give rise to an additional liability. However, if such claims arise in the future, they could have a material effect on our balance sheet, results of operations and cash flows. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 14. Accumulated Other Comprehensive Loss The following table summarizes the changes in our balances of each component of accumulated other comprehensive loss (“AOCL”): For the Three Months Ended March 31, 2021 2020 Currency translation adjustments: Balance as of beginning of period $ (189 ) $ (354 ) Currency translation adjustments (9 ) (174 ) Amounts reclassified from AOCL (1) (11 ) 1 Other comprehensive income (loss) (20 ) (173 ) Distribution of RCPI (2)(3) — 2 Balance as of end of period $ (209 ) $ (525 ) Defined benefit plans: Plans associated with continuing operations Balance as of beginning of period $ (160 ) $ (176 ) Balance as of end of period $ (160 ) $ (176 ) Plans held for sale or distribution Balance as of beginning of period $ — $ 12 Distribution of RCPI (2)(3) — (13 ) Balance as of end of period $ — $ (1 ) AOCL Balance as of beginning of period $ (349 ) $ (518 ) Other comprehensive income (loss) (20 ) (173 ) Distribution of RCPI (2)(3) — (11 ) Balance as of end of period $ (369 ) $ (702 ) (1) The reclassification of currency translation adjustment amounts to earnings during the three months ended March 31, 2021 relates to the sale of the remaining South American closures business. See Note 3, Assets and Liabilities Held for Sale , for additional details. (2) Currency Discontinued Operations, for additional details. (3) Defined benefit plan reclassifications associated with the distribution of RCPI are recorded directly to retained earnings. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes The effective tax rates for the three months ended March 31, 2021 and 2020 represent our estimate of the annual effective tax rates expected to be applicable for the respective full fiscal years, adjusted for any discrete events which are recorded in the period that they occur. During the three months ended March 31, 2021, we recognized a tax benefit of $18 million on a loss from continuing operations before tax of $29 million. The effective tax rate was driven primarily by a $10 million discrete benefit from the partial release of our valuation allowance for deferred interest deductions, which was partially offset by certain nondeductible expenses and varying rates among the jurisdictions in which we operate. During the three months ended March 31, 2020, we recognized a tax benefit of $94 million on income from continuing operations before tax of $39 million. The effective tax rate is primarily attributable to the enactment of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act in March 2020 and the mix of income and losses taxed at varying rates among the jurisdictions in which we operate. Retroactive provisions of the CARES Act enabled us to utilize additional deferred interest deductions, which lowered taxable income for both the year ended December 31, 2019 and the year ended December 31, 2020. We recognized in the three months ended March 31, 2020 a discrete tax benefit of $90 million in respect of our taxable income for the year ended December 31, 2019. We are under audit by the Internal Revenue Service (“IRS”) and other taxing authorities. The IRS is currently auditing our U.S. income tax returns for 2016-2017. It is possible the audit will be completed in the next 12 months. As of March 31, 2021, we have not received any proposed adjustments from taxing authorities that would be material. Although the ultimate timing is uncertain, it is reasonably possible that a reduction of up to $10 million of unrecognized tax benefits could occur within the next twelve months due to changes in audit status, settlements of tax assessments and other events. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16. Related Party Transactions As of March 31, 2021, 78% of our shares are owned by PFL or another entity of which Mr. Graeme Hart is the ultimate shareholder (together with PFL, the “Hart Stockholders”). In addition to the distributions of RCPI and GPCI to PFL in 2020, as described further in Note 1, Nature of Operations and Basis of Presentation Transaction Value for the Three Months Ended Balance Outstanding as of: March 31, 2021 March 31, 2020 March 31, 2021 December 31, 2020 Balances and transactions with joint ventures Included in other current assets $ 11 $ 7 Sale of goods and services (1) $ 10 $ 11 Balances and transactions with other entities controlled by Mr. Graeme Hart Current related party receivables 49 55 Sale of goods and services (2) 78 87 Transition services agreements and rental income (2) 4 3 Tax loss transfer (3) — 13 Recharges (4) 5 — Noncurrent related party receivables (5) — — Interest income — 3 Related party payables (8 ) (10 ) Purchase of goods (2) (25 ) (39 ) Recharges (4) (6 ) (6 ) Management fee (6) — (5 ) Tax loss transfer (3) — (1 ) (1) (2) Discontinued Operations (3) (4) (5 ) Our previous loan with R ank accrued interest at a rate based on the average 90-day New Zealand bank bill rate, set quarterly, plus a margin of 3.25 %. During the three months ended March 31, 2020, interest was charged at 4.28 % . In September 2020, in preparation for our IPO, the loan receivable was forgiven and was recognized as a reduction in retained earnings. (6 ) |
Equity Based Compensation
Equity Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Based Compensation | Note 17. Equity Based Compensation In conjunction with our IPO, we established the Pactiv Evergreen Inc. Equity Incentive Plan (the “Equity Incentive Plan”) for purposes of granting stock or other equity based compensation awards to our employees (including our senior management), directors, consultants and advisors. The maximum number of shares of common stock initially available for issuance under our Equity Incentive Plan was 9,079,395 shares. We recognized $4 million of equity based compensation expense for the three months ended March 31, 2021 which is reflected in selling, general and administrative expenses in the condensed consolidated statement of (loss) income. There was no equity based compensation expense recorded during the three months ended March 31, 2020. Restricted Stock Units During the three months ended March 31, 2021, we granted additional restricted stock units (“RSUs”) to certain members of management. These RSUs required future service to be provided and vest in annual installments over a period ranging from 1 to 4 years beginning on the first anniversary of the original grant date. The following table summarizes RSU activity during 2021: (in thousands, except per share amounts) Number of Stock Units Weighted- Average Grant Date Fair Value Non-vested, at January 1 297 $ 14.00 Granted 686 $ 15.04 Non-vested, at March 31 983 $ 14.73 Unrecognized compensation cost related to unvested RSUs as of March 31, 2021 was $9 million Performance Share Units We may grant performance share units (“PSUs”) which vest based on the achievement of various company performance targets achieved during a performance period set by our Compensation Committee. We use our stock price on the grant date to estimate the fair value of our PSUs. We adjust the expense based on the likelihood of future achievement of performance metrics. If any of the performance targets are not achieved, the awards are forfeited. Each PSU is equal to one common share once vested with varying maximum award value limitations. During the three months ended March 31, 2021, we granted PSUs to certain members of management which The following table summarizes PSU activity during 2021: (in thousands, except per share amounts) Number of Stock Units Weighted- Average Grant Date Fair Value Non-vested, at January 1 — $ — Granted 298 $ 15.05 Non-vested, at March 31 298 $ 15.05 Unrecognized compensation cost related to unvested PSUs as of March 31, 2021 was $ 4 average period of 3.0 years |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 18. Earnings Per Share A reconciliation of the number of shares used for our (loss) earnings per share calculation was as follows: For the Three Months Ended March 31, 2021 2020 Net (loss) income attributable to Pactiv Evergreen Inc. common shareholders From continuing operations $ (12 ) $ 133 From discontinued operations (3 ) 3 Total $ (15 ) $ 136 Weighted average number of shares outstanding Basic 177.2 134.4 Effect of dilutive securities — — Diluted 177.2 134.4 (Loss) earnings per share attributable to Pactiv Evergreen Inc. common shareholders From continuing operations Basic $ (0.07 ) $ 0.99 Diluted $ (0.07 ) $ 0.99 From discontinued operations Basic $ (0.02 ) $ 0.02 Diluted $ (0.02 ) $ 0.02 Total Basic $ (0.09 ) $ 1.01 Diluted $ (0.09 ) $ 1.01 The weighted average number of shares outstanding prior to our IPO reflects our conversion to a Delaware incorporated entity and the subsequent stock split, as detailed in our Annual Report on Form 10-K for the year ended December 31, 2020. The stock split has been retroactively reflected, resulting in 134.4 million weighted average number of shares outstanding for the three months ended March 31, 2020. The weighted average number of anti-dilutive potential common shares excluded from the calculation above was 0.2 million shares for the three months ended March 31, 2021. Our Board of Directors approved a dividend of $0.10 per share on May 3, 2021 to be paid on June 15, 2021 to shareholders of record as of May 28, 2021. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 19. Segment Information ASC 280 Segment Reporting establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in ASC 280, we have three reportable segments: Foodservice, Food Merchandising and Beverage Merchandising. These reportable segments reflect our operating structure and the manner in which our Chief Operating Decision Maker (“CODM”) assesses information for decision-making purposes. The key factors used to identify these reportable segments are the organization and alignment of our internal operations and the nature of our products. This reflects how our CODM monitors performance, allocates capital and makes strategic and operational decisions. Our reportable segments are described as follows: Foodservice - Manufactures a broad range of products that enable consumers to eat and drink where they want and when they want with convenience. Foodservice manufactures food containers, drinkware (hot and cold cups and lids), dinnerware, serviceware and other products which make eating on-the-go more enjoyable and easy to do. Food Merchandising - Manufactures products that protect and attractively display food while preserving freshness. Food Merchandising products include clear rigid-display containers, containers for prepared and ready-to-eat food, trays for meat and poultry and molded fiber cartons. Beverage Merchandising - M anufactures cartons for fresh refrigerated beverage products, primarily serving dairy (including plant-based, organic and specialties), juice and other specialty beverage end-markets. Beverage Merchandising manufactures and supplies integrated fresh carton systems, which include printed cartons, spouts and filling machinery. It also produces fiber-based liquid packaging board for its internal requirements and to sell to other fres h beverage carton manufacturers as well as a range of paper-based products which it sells to paper and packaging converters. Other/Unallocated - In addition to our reportable segments, we have other operating segments that do not meet the threshold for presentation as a reportable segment. These operating segments include the remaining components of our former closures business, which generate revenue from the sale of caps and closures, and are presented as “Other” in the reconciliation between total reportable segment amounts and the equivalent consolidated measure. Unallocated includes corporate costs, primarily relating to companywide functions such as finance, tax and legal and the effects of the PEPP and equity based compensation. Information by Segment We present reportable segment adjusted EBITDA ("Adjusted EBITDA") as this is the financial measure by which management and our CODM allocate resources and analyze the performance of our reportable segments. Adjusted EBITDA represents each segment's earnings before interest, tax, depreciation and amortization and is further adjusted to exclude certain items of a significant or unusual nature, including but not limited to, foreign exchange gains or losses on cash, related party management fees, unrealized gains or losses on derivatives, gains or losses on the sale of businesses and noncurrent assets, impairment charges, restructuring, asset impairment and other related charges, operational process engineering-related consultancy costs, non-cash pension income or expense, strategic review and transaction-related costs, and executive transition charges. Reportable segment assets represent trade receivables, inventory and property, plant and equipment: Foodservice Food Merchandising Beverage Merchandising Reportable Segment Total For the Three Months Ended March 31, 2021 Net revenues $ 454 $ 342 $ 339 $ 1,135 Intersegment revenues — — 18 18 Total reportable segment net revenues $ 454 $ 342 $ 357 $ 1,153 Adjusted EBITDA $ 61 $ 55 $ (32 ) $ 84 For the Three Months Ended March 31, 2020 Net revenues $ 473 $ 344 $ 363 $ 1,180 Intersegment revenues — — 34 34 Total reportable segment net revenues $ 473 $ 344 $ 397 $ 1,214 Adjusted EBITDA $ 56 $ 53 $ 49 $ 158 Reportable segment assets consisted of the following: Foodservice Food Merchandising Beverage Merchandising Reportable Segment Total As of March 31, 2021 $ 1,099 $ 722 $ 1,065 $ 2,886 As of December 31, 2020 1,064 703 1,039 2,806 The following table presents a reconciliation of reportable segment Adjusted EBITDA to consolidated U.S. GAAP (loss) income from continuing operations before income taxes: For the Three Months Ended March 31, 2021 2020 Reportable segment Adjusted EBITDA $ 84 $ 158 Other 1 2 Unallocated (8 ) (15 ) 77 145 Adjustments to reconcile to U.S. GAAP (loss) income from continuing operations before income taxes Interest expense, net (42 ) (102 ) Depreciation and amortization (73 ) (68 ) Restructuring, asset impairment and other related charges 2 (3 ) Non-cash pension income 23 18 Operational process engineering related consultancy costs (3 ) (8 ) Related party management fee — (5 ) Strategic review and transaction-related costs — (6 ) Foreign exchange gains on cash — 84 Unrealized losses on derivatives (1 ) (17 ) Executive transition charges (10 ) — Other (2 ) 1 (Loss) income from continuing operations before tax $ (29 ) $ 39 The following table presents a reconciliation of reportable segment assets to consolidated assets: As of March 31, 2021 As of December 31, 2020 Reportable segment assets $ 2,886 $ 2,806 Other 40 34 Unallocated (1) 3,825 4,003 Total assets $ 6,751 $ 6,843 (1) Unallocated includes unallocated assets, which are comprised of cash and cash equivalents, other current assets, assets held for sale or distribution, entity-wide property, plant and equipment, operating lease right-of-use assets, goodwill, intangible assets, deferred income taxes, related party receivables and other noncurrent assets. Information in Relation to Products Net revenues by product line are as follows: For the Three Months Ended March 31, 2021 2020 Foodservice Drinkware (1) $ 165 $ 182 Containers (1) 209 179 Tableware (1) 38 64 Serviceware and other (1) 42 48 Food Merchandising Meat trays 87 95 Bakery/snack/produce/fruit containers 69 64 Prepared food trays 34 34 Egg cartons 26 26 Tableware (2) 82 87 Other 44 38 Beverage Merchandising Cartons for fresh beverage products 192 200 Liquid packaging board 91 115 Paper products 74 82 Reportable segment net revenues 1,153 1,214 Other / Unallocated Other 29 32 Inter-segment eliminations (18 ) (34 ) Net revenues $ 1,164 $ 1,212 (1) Certain product sales in the prior year have been re-categorized to conform with the current year presentation as the segment realigned its go-to-market product strategy. (2) During the current year, Food Merchandising changed the name of its historical Dinnerware product line to Tableware. For all product lines, there is a relatively short time period between the receipt of the order and the transfer of control over the goods to the customer. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recently Adopted and Recently Issued But Not Yet Accounting Guidance | Recently Adopted Accounting Guidance In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) Disclosure - Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU requires sponsors of defined benefit pension or other post-retirement plans to provide additional disclosures, including a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period. It also eliminates certain previous disclosure requirements. This ASU is effective for fiscal years beginning after December 15, 2020 and must be applied on a retrospective basis to all years presented. The requirements of this guidance have an impact on our annual disclosures but have no impact on the measurement and recognition of amounts in our condensed consolidated financial statements. Accounting Guidance Issued but Not Yet Adopted as of March 31, 2021 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). This ASU provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. This ASU is effective upon issuance and generally can be applied through the end of calendar year 2022. We are currently evaluating the impact and whether we plan to adopt the optional expedients and exceptions provided under this new standard. We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our condensed consolidated financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Discontinued Operations Financial Information | Income from discontinued operations, which includes the results of GPC through September 16, 2020 and the results of RCP through February 4, 2020, were as follows: For the Three Months Ended March 31, 2020 Net revenues $ 652 Cost of sales (519 ) Gross profit 133 Selling, general and administrative expenses (82 ) Restructuring, asset impairment and other related charges (5 ) Interest expense, net (1) (21 ) Other expense, net — Income before income taxes from discontinued operations 25 Income tax expense (22 ) Net income from discontinued operations, before gain on disposal 3 Gain on disposal, net of income taxes — Net income from discontinued operations $ 3 (1) Includes interest expense and amortization of deferred transaction costs related to debt repaid in conjunction with the distribution of RCPI; also includes a $5 million loss on extinguishment of debt from the repayment of corporate debt on February 4, 2020 Cash flows from discontinued operations were as follows: For the Three Months Ended March 31, 2020 Net cash provided by operating activities $ 35 Net cash used in investing activities (42 ) Net cash provided by financing activities 478 Net cash from discontinued operations $ 471 |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Related Charges (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Summary of Impairment, Restructuring and Other Related Charges | During the three months ended March 31, 2021, we recorded the following impairment, restructuring and other related charges: Other asset impairment Total Other $ (2 ) $ (2 ) Total $ (2 ) $ (2 ) During the three months ended March 31, 2020, we recorded the following impairment, restructuring and other related charges: Other asset impairment Employee terminations Other restructuring charges Total Foodservice $ 1 $ — $ 1 $ 2 Beverage Merchandising — 1 — 1 Total $ 1 $ 1 $ 1 $ 3 |
Summary of Restructuring Liability | The following table summarizes the changes to our restructuring liability for the three months ended March 31, 2021: December 31, 2020 Charges to earnings Cash paid March 31, 2021 Employee termination costs $ 7 $ — $ (3 ) $ 4 Total $ 7 $ — $ (3 ) $ 4 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of the Components of Inventory | The components of inventories consisted of the following: As of March 31, 2021 As of December 31, 2020 Raw materials $ 190 $ 180 Work in progress 108 108 Finished goods 429 410 Spare parts 89 86 Inventories $ 816 $ 784 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment, Net and Depreciation Expense | Property, plant and equipment, net consisted of the following: As of March 31, 2021 As of December 31, 2020 Land and land improvements $ 86 $ 87 Buildings and building improvements 533 532 Machinery and equipment 3,236 3,148 Construction in progress 157 191 Property, plant and equipment, at cost 4,012 3,958 Less: accumulated depreciation (2,325 ) (2,273 ) Property, plant and equipment, net $ 1,687 $ 1,685 Depreciation expense related to property, plant and equipment was recognized in the following components in the condensed consolidated statements of (loss) income: For the Three Months March 31, 2021 March 31, 2020 Cost of sales $ 54 $ 50 Selling, general and administrative expenses 6 4 Total depreciation expense $ 60 $ 54 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reportable Segment | Goodwill by reportable segment was as follows: Foodservice Food Merchandising Beverage Merchandising Other (1) (2) Total Balance as of December 31, 2020 $ 924 $ 770 $ 66 $ — $ 1,760 Impairment charges — — — — — Balance as of March 31, 2021 $ 924 $ 770 $ 66 $ — $ 1,760 Accumulated impairment losses $ — $ — $ — $ 15 $ 15 (1) Other includes operations that do not meet the quantitative threshold for reportable segments. (2) During the three months ended March 31, 2021, we reduced the gross carrying amount of goodwill and accumulated impairment losses by $7 million for the disposition of the remaining South American closures businesses within the Other operating segment. Refer to Note 3, Assets and Liabilities Held for Sale , for additional details. |
Summary of Indefinite-Lived Intangible Assets | Intangible assets, net consisted of the following: As of March 31, 2021 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible assets Customer relationships $ 1,019 $ (553 ) $ 466 $ 1,019 $ (540 ) $ 479 Other 20 (20 ) — 20 (20 ) — Total finite-lived intangible assets $ 1,039 $ (573 ) $ 466 $ 1,039 $ (560 ) $ 479 Indefinite-lived intangible assets Trademarks $ 554 $ — $ 554 $ 554 $ — $ 554 Other 59 — 59 59 — 59 Total indefinite-lived intangible assets $ 613 $ — $ 613 $ 613 $ — $ 613 Total intangible assets $ 1,652 $ (573 ) $ 1,079 $ 1,652 $ (560 ) $ 1,092 |
Summary of Finite-Lived Intangible Assets | Intangible assets, net consisted of the following: As of March 31, 2021 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible assets Customer relationships $ 1,019 $ (553 ) $ 466 $ 1,019 $ (540 ) $ 479 Other 20 (20 ) — 20 (20 ) — Total finite-lived intangible assets $ 1,039 $ (573 ) $ 466 $ 1,039 $ (560 ) $ 479 Indefinite-lived intangible assets Trademarks $ 554 $ — $ 554 $ 554 $ — $ 554 Other 59 — 59 59 — 59 Total indefinite-lived intangible assets $ 613 $ — $ 613 $ 613 $ — $ 613 Total intangible assets $ 1,652 $ (573 ) $ 1,079 $ 1,652 $ (560 ) $ 1,092 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following: As of March 31, 2021 As of December 31, 2020 Accrued personnel costs $ 101 $ 117 Accrued rebates and credits 74 68 Accrued interest 34 16 Other (1) 123 121 Accrued and other current liabilities $ 332 $ 322 (1) Other includes items such as accruals for freight, utilities and property and other non-income related taxes. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Debt consisted of the following: As of March 31, 2021 As of December 31, 2020 Credit Agreement $ 2,453 $ 2,457 Notes: 5.125% Senior Secured Notes due 2023 — 59 4.000% Senior Secured Notes due 2027 1,000 1,000 Pactiv Debentures: 7.950% Debentures due 2025 276 276 8.375% Debentures due 2027 200 200 Other 12 12 Total principal amount of borrowings 3,941 4,004 Deferred financing transaction costs ("DIC") (14 ) (14 ) Original issue discounts, net of premiums ("OID") (9 ) (10 ) 3,918 3,980 Less: current portion (15 ) (15 ) Long-term debt $ 3,903 $ 3,965 |
Summary of Components of the Credit Agreement | The Credit Agreement comprises the following term and revolving tranches: Maturity Date Value Drawn or Utilized as of March 31, 2021 Applicable Interest Rate as of March 31, 2021 Term Tranches U.S. term loans Tranche B-1 February 5, 2023 $ 1,207 LIBOR (floor of 0.000%) + 2.750% U.S. term loans Tranche B-2 February 5, 2026 $ 1,246 LIBOR (floor of 0.000%) + 3.250% Revolving Tranche (1) U.S. Revolving Loans August 5, 2024 $ 43 — (1) The Revolving Tranche represents a $250 million facility. The amount utilized is in the form of bank guarantees and letters of |
Schedule of Outstanding Senior Secured Notes | Outstanding Notes, as of March 31, 2021, are summarized below: Description Maturity date Semi-annual interest payment dates 4.000% Senior Secured Notes due 2027 October 15, 2027 April 15 and October 15, commencing April 15, 2021 As of March 31, 2021, we had outstanding the following debentures (together, the “Pactiv Debentures”): Description Maturity date Semi-annual interest payment dates 7.950% Debentures due 2025 December 15, 2025 June 15 and December 15 8.375% Debentures due 2027 April 15, 2027 April 15 and October 15 |
Schedule of Required Future Repayments of Outstanding Debt | Below is a schedule of required future repayments on our debt outstanding as of March 31, 2021: 2021 $ 11 2022 16 2023 1,220 2024 13 2025 289 Thereafter 2,392 Total principal amount of borrowings $ 3,941 |
Schedule of Carrying Values and Fair Values of Debt Outstanding | Below is a schedule of carrying values and fair values of our debt outstanding: As of March 31, 2021 As of December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Credit Agreement $ 2,444 $ 2,437 $ 2,447 $ 2,443 Notes: 5.125% Senior Secured Notes due 2023 — — 59 60 4.000% Senior Secured Notes due 2027 991 981 991 1,024 Pactiv Debentures: 7.950% Debentures due 2025 273 308 273 318 8.375% Debentures due 2027 198 229 198 235 Other 12 12 12 12 Total $ 3,918 $ 3,967 $ 3,980 $ 4,092 |
Interest Expense, Net | Interest expense, net consisted of the following: As of March 31, 2021 As of March 31, 2020 Interest expense: Securitization Facility $ — $ 3 Credit Agreement 19 38 Notes 10 43 Pactiv Debentures 10 10 Interest income, related party (1) — (4 ) Interest income, other (1 ) (4 ) Amortization: Deferred financing transaction costs 1 6 Original issue discounts — 2 Derivative losses — 12 Net foreign currency exchange losses (gains) 1 (6 ) Loss on extinguishment of debt: Write-off of unamortized DIC and OID — — Redemption premiums 1 — Other 1 2 Interest expense, net (2) $ 42 $ 102 (1) Refer to Note 16, Related Party Transactions, for additional details (2) Amounts presented in the above table exclude interest expense and amortization of deferred financing transaction costs in respect of our 5.750 % Senior Secured Notes which were due 2020. Such amounts are presented within discontinued operations as these senior secured notes were required to be repaid in conjunction with the distribution of RCPI. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | We had the following derivative instruments recorded at fair value in our condensed consolidated balance sheets: As of March 31, 2021 As of December 31, 2020 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Commodity swap contracts $ 6 $ — $ 9 $ (2 ) Total fair value $ 6 $ — $ 9 $ (2 ) Recorded in: Other current assets $ 6 $ — $ 9 $ — Accrued and other current liabilities — — — (2 ) Total fair value $ 6 $ — $ 9 $ (2 ) |
Summary of Outstanding Commodity Derivative Contracts | The following table provides the detail of outstanding commodity derivative contracts as of March 31, 2021: Type Unit of measure Contracted volume Contracted price range Contracted date of maturity Natural gas swaps Million BTU 2,148,395 $2.47 - $2.94 May 2021 - Sep 2022 Polymer-grade propylene swaps Pound 24,571,427 $0.38 - $0.52 Apr 2021 - Aug 2021 Benzene swaps U.S. liquid gallon 5,518,856 $1.51 - $2.96 May 2021 - Dec 2021 Diesel swaps U.S. liquid gallon 233,160 $2.41 - $2.50 Apr 2021 - Dec 2021 Low-density polyethylene swaps Pound 9,000,000 $ 0.71 Apr 2021 - Dec 2021 Ethylene swaps Pound 161,944 $ 0.26 Apr 2021 - Apr 2021 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Periodic Benefit Income for Defined Benefit Pension Plans and Other Post-employment Benefit Plans | Net periodic benefit income for defined benefit pension plans and other post-employment benefit plans consisted of the following: For the Three Months Ended March 31, 2021 2020 Service cost $ (2 ) $ (2 ) Interest cost (27 ) (35 ) Expected return on plan assets 50 51 Total net periodic benefit income $ 21 $ 14 Net periodic benefit income for defined benefit pension plans and other post-employment benefit plans has been recognized as follows: For the Three Months Ended March 31, 2021 2020 Cost of sales $ (2 ) $ (2 ) Non-operating income, net 23 16 Total net periodic benefit income $ 21 $ 14 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Income, Net | Other income, net consisted of the following: For the Three Months Ended March 31, 2021 2020 Related party management fee (1) $ — $ (5 ) Foreign exchange gains on cash (2) — 84 Transition service agreement income (1) 4 4 Other 2 (6 ) Other income, net $ 6 $ 77 (1) See Note 16, Related Party Transactions, for additional details. The transition services agreement income is primarily attributable to services provided to our former segments, RCP and GPC, and our former closures businesses. (2) Primarily arose from holding U.S. dollars in non-U.S. dollar functional currency entities. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in our balances of each component of accumulated other comprehensive loss (“AOCL”): For the Three Months Ended March 31, 2021 2020 Currency translation adjustments: Balance as of beginning of period $ (189 ) $ (354 ) Currency translation adjustments (9 ) (174 ) Amounts reclassified from AOCL (1) (11 ) 1 Other comprehensive income (loss) (20 ) (173 ) Distribution of RCPI (2)(3) — 2 Balance as of end of period $ (209 ) $ (525 ) Defined benefit plans: Plans associated with continuing operations Balance as of beginning of period $ (160 ) $ (176 ) Balance as of end of period $ (160 ) $ (176 ) Plans held for sale or distribution Balance as of beginning of period $ — $ 12 Distribution of RCPI (2)(3) — (13 ) Balance as of end of period $ — $ (1 ) AOCL Balance as of beginning of period $ (349 ) $ (518 ) Other comprehensive income (loss) (20 ) (173 ) Distribution of RCPI (2)(3) — (11 ) Balance as of end of period $ (369 ) $ (702 ) (1) The reclassification of currency translation adjustment amounts to earnings during the three months ended March 31, 2021 relates to the sale of the remaining South American closures business. See Note 3, Assets and Liabilities Held for Sale , for additional details. (2) Currency Discontinued Operations, for additional details. (3) Defined benefit plan reclassifications associated with the distribution of RCPI are recorded directly to retained earnings. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Transaction Value for the Three Months Ended Balance Outstanding as of: March 31, 2021 March 31, 2020 March 31, 2021 December 31, 2020 Balances and transactions with joint ventures Included in other current assets $ 11 $ 7 Sale of goods and services (1) $ 10 $ 11 Balances and transactions with other entities controlled by Mr. Graeme Hart Current related party receivables 49 55 Sale of goods and services (2) 78 87 Transition services agreements and rental income (2) 4 3 Tax loss transfer (3) — 13 Recharges (4) 5 — Noncurrent related party receivables (5) — — Interest income — 3 Related party payables (8 ) (10 ) Purchase of goods (2) (25 ) (39 ) Recharges (4) (6 ) (6 ) Management fee (6) — (5 ) Tax loss transfer (3) — (1 ) (1) (2) Discontinued Operations (3) (4) (5 ) Our previous loan with R ank accrued interest at a rate based on the average 90-day New Zealand bank bill rate, set quarterly, plus a margin of 3.25 %. During the three months ended March 31, 2020, interest was charged at 4.28 % . In September 2020, in preparation for our IPO, the loan receivable was forgiven and was recognized as a reduction in retained earnings. (6 ) |
Equity Based Compensation (Tabl
Equity Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restricted Stock Units (RSUs) | |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity during 2021: (in thousands, except per share amounts) Number of Stock Units Weighted- Average Grant Date Fair Value Non-vested, at January 1 297 $ 14.00 Granted 686 $ 15.04 Non-vested, at March 31 983 $ 14.73 |
Performance Stock Units (PSU) | |
Summary of Performance Stock Unit Activity | The following table summarizes PSU activity during 2021: (in thousands, except per share amounts) Number of Stock Units Weighted- Average Grant Date Fair Value Non-vested, at January 1 — $ — Granted 298 $ 15.05 Non-vested, at March 31 298 $ 15.05 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of the Basic and Diluted Earnings Per Share | A reconciliation of the number of shares used for our (loss) earnings per share calculation was as follows: For the Three Months Ended March 31, 2021 2020 Net (loss) income attributable to Pactiv Evergreen Inc. common shareholders From continuing operations $ (12 ) $ 133 From discontinued operations (3 ) 3 Total $ (15 ) $ 136 Weighted average number of shares outstanding Basic 177.2 134.4 Effect of dilutive securities — — Diluted 177.2 134.4 (Loss) earnings per share attributable to Pactiv Evergreen Inc. common shareholders From continuing operations Basic $ (0.07 ) $ 0.99 Diluted $ (0.07 ) $ 0.99 From discontinued operations Basic $ (0.02 ) $ 0.02 Diluted $ (0.02 ) $ 0.02 Total Basic $ (0.09 ) $ 1.01 Diluted $ (0.09 ) $ 1.01 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | We present reportable segment adjusted EBITDA ("Adjusted EBITDA") as this is the financial measure by which management and our CODM allocate resources and analyze the performance of our reportable segments. Adjusted EBITDA represents each segment's earnings before interest, tax, depreciation and amortization and is further adjusted to exclude certain items of a significant or unusual nature, including but not limited to, foreign exchange gains or losses on cash, related party management fees, unrealized gains or losses on derivatives, gains or losses on the sale of businesses and noncurrent assets, impairment charges, restructuring, asset impairment and other related charges, operational process engineering-related consultancy costs, non-cash pension income or expense, strategic review and transaction-related costs, and executive transition charges. Reportable segment assets represent trade receivables, inventory and property, plant and equipment: Foodservice Food Merchandising Beverage Merchandising Reportable Segment Total For the Three Months Ended March 31, 2021 Net revenues $ 454 $ 342 $ 339 $ 1,135 Intersegment revenues — — 18 18 Total reportable segment net revenues $ 454 $ 342 $ 357 $ 1,153 Adjusted EBITDA $ 61 $ 55 $ (32 ) $ 84 For the Three Months Ended March 31, 2020 Net revenues $ 473 $ 344 $ 363 $ 1,180 Intersegment revenues — — 34 34 Total reportable segment net revenues $ 473 $ 344 $ 397 $ 1,214 Adjusted EBITDA $ 56 $ 53 $ 49 $ 158 Reportable segment assets consisted of the following: Foodservice Food Merchandising Beverage Merchandising Reportable Segment Total As of March 31, 2021 $ 1,099 $ 722 $ 1,065 $ 2,886 As of December 31, 2020 1,064 703 1,039 2,806 |
Reconciliation of Operating Profit (Loss) | The following table presents a reconciliation of reportable segment Adjusted EBITDA to consolidated U.S. GAAP (loss) income from continuing operations before income taxes: For the Three Months Ended March 31, 2021 2020 Reportable segment Adjusted EBITDA $ 84 $ 158 Other 1 2 Unallocated (8 ) (15 ) 77 145 Adjustments to reconcile to U.S. GAAP (loss) income from continuing operations before income taxes Interest expense, net (42 ) (102 ) Depreciation and amortization (73 ) (68 ) Restructuring, asset impairment and other related charges 2 (3 ) Non-cash pension income 23 18 Operational process engineering related consultancy costs (3 ) (8 ) Related party management fee — (5 ) Strategic review and transaction-related costs — (6 ) Foreign exchange gains on cash — 84 Unrealized losses on derivatives (1 ) (17 ) Executive transition charges (10 ) — Other (2 ) 1 (Loss) income from continuing operations before tax $ (29 ) $ 39 |
Reconciliation of Assets from Segment to Consolidated | The following table presents a reconciliation of reportable segment assets to consolidated assets: As of March 31, 2021 As of December 31, 2020 Reportable segment assets $ 2,886 $ 2,806 Other 40 34 Unallocated (1) 3,825 4,003 Total assets $ 6,751 $ 6,843 (1) Unallocated includes unallocated assets, which are comprised of cash and cash equivalents, other current assets, assets held for sale or distribution, entity-wide property, plant and equipment, operating lease right-of-use assets, goodwill, intangible assets, deferred income taxes, related party receivables and other noncurrent assets. |
Summary of Net Revenues by Product Line | Net revenues by product line are as follows: For the Three Months Ended March 31, 2021 2020 Foodservice Drinkware (1) $ 165 $ 182 Containers (1) 209 179 Tableware (1) 38 64 Serviceware and other (1) 42 48 Food Merchandising Meat trays 87 95 Bakery/snack/produce/fruit containers 69 64 Prepared food trays 34 34 Egg cartons 26 26 Tableware (2) 82 87 Other 44 38 Beverage Merchandising Cartons for fresh beverage products 192 200 Liquid packaging board 91 115 Paper products 74 82 Reportable segment net revenues 1,153 1,214 Other / Unallocated Other 29 32 Inter-segment eliminations (18 ) (34 ) Net revenues $ 1,164 $ 1,212 (1) Certain product sales in the prior year have been re-categorized to conform with the current year presentation as the segment realigned its go-to-market product strategy. (2) During the current year, Food Merchandising changed the name of its historical Dinnerware product line to Tableware. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation - Additional Information (Details) - shares | Sep. 16, 2020 | Feb. 04, 2020 | Mar. 31, 2020 | Mar. 31, 2021 |
ASU 2018-14 | ||||
Subsidiary Sale Of Stock [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle accounting standards update immaterial effect | true | |||
Discontinued Operations | Reynolds Consumer Products Inc. | ||||
Subsidiary Sale Of Stock [Line Items] | ||||
Shares repurchased and canceled during the period (in shares) | 35,791,985 | 35,791,985 | ||
Discontinued Operations | Graham Packaging Company Inc. | ||||
Subsidiary Sale Of Stock [Line Items] | ||||
Shares repurchased and canceled during the period (in shares) | 14,036,726 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Income from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income from discontinued operations | $ (3) | $ 3 |
Discontinued operations, disposed of by sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 652 | |
Cost of sales | (519) | |
Gross profit | 133 | |
Selling, general and administrative expenses | (82) | |
Restructuring, asset impairment and other related charges | (5) | |
Interest expense, net | (21) | |
Income before income taxes from discontinued operations | 25 | |
Income tax expense | (22) | |
Net income from discontinued operations, before gain on disposal | 3 | |
Net income from discontinued operations | $ 3 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Income from Discontinued Operations (Parenthetical) (Details) - USD ($) $ in Millions | Feb. 04, 2020 | Mar. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on extinguishment of debt | $ 5 | |
5.750% Senior Secured Notes due 2020 | Senior notes | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on extinguishment of debt | $ 5 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - Discontinued operations, disposed of by sale - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Charges related to historical tax agreements | $ 3 | |
Depreciation and amortization expense | $ 67 | |
Graham Packaging Company Inc. | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Asset impairment | 1 | |
Restructuring and other related charges | $ 4 |
Discontinued Operations - Sum_3
Discontinued Operations - Summary of Cash Flows (Details) - Discontinued operations, disposed of by sale $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net cash provided by operating activities | $ 35 |
Net cash used in investing activities | (42) |
Net cash provided by financing activities | 478 |
Net cash from discontinued operations | $ 471 |
Assets and Liabilities Held f_2
Assets and Liabilities Held for Sale - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Discontinued Operations And Disposal Groups [Abstract] | |
Initial impairment charge related to assets and liabilities held-for-sale | $ 2 |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Related Charges - Summary of Impairment, Restructuring and Other Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||
Other asset impairment charges | $ (2) | $ 1 |
Employee terminations | 1 | |
Other restructuring charges | 1 | |
Total | (2) | 3 |
Other | ||
Restructuring Cost And Reserve [Line Items] | ||
Other asset impairment charges | (2) | |
Total | $ (2) | |
Foodservice | ||
Restructuring Cost And Reserve [Line Items] | ||
Other asset impairment charges | 1 | |
Other restructuring charges | 1 | |
Total | 2 | |
Beverage Merchandising | ||
Restructuring Cost And Reserve [Line Items] | ||
Employee terminations | 1 | |
Total | $ 1 |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Related Charges - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||
Impairment related to property, plant and equipment | $ 1 | |
Employee terminations | 1 | |
Other restructuring charges | 1 | |
Other | South American Closures Business | ||
Restructuring Cost And Reserve [Line Items] | ||
Partial reversal of initial impairment charge | $ 2 | |
Foodservice | ||
Restructuring Cost And Reserve [Line Items] | ||
Other restructuring charges | 1 | |
Carrying values of the impaired assets (less than) | $ 1 |
Impairment, Restructuring and_5
Impairment, Restructuring and Other Related Charges - Summary of Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring liability, beginning balance | $ 4 | $ 7 |
Cash paid | (3) | |
Employee terminations | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability, beginning balance | 4 | $ 7 |
Cash paid | $ (3) |
Inventories - Summary of the Co
Inventories - Summary of the Components of Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 190 | $ 180 |
Work in progress | 108 | 108 |
Finished goods | 429 | 410 |
Spare parts | 89 | 86 |
Inventories | $ 816 | $ 784 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 4,012 | $ 3,958 |
Less: accumulated depreciation | (2,325) | (2,273) |
Property, plant and equipment, net | 1,687 | 1,685 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 86 | 87 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 533 | 532 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 3,236 | 3,148 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 157 | $ 191 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Depreciation Expense Related to Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Cost of sales | $ 54 | $ 50 |
Selling, general and administrative expenses | 6 | 4 |
Total depreciation expense | $ 60 | $ 54 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill by Reportable Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 1,760 |
Impairment charges | 0 |
Ending Balance | 1,760 |
Accumulated impairment losses | 15 |
Foodservice | |
Goodwill [Line Items] | |
Beginning Balance | 924 |
Impairment charges | 0 |
Ending Balance | 924 |
Food Merchandising | |
Goodwill [Line Items] | |
Beginning Balance | 770 |
Impairment charges | 0 |
Ending Balance | 770 |
Beverage Merchandising | |
Goodwill [Line Items] | |
Beginning Balance | 66 |
Impairment charges | 0 |
Ending Balance | 66 |
Other | |
Goodwill [Line Items] | |
Impairment charges | 0 |
Accumulated impairment losses | $ 15 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Goodwill by Reportable Segment (Details) (Parenthetical) $ in Millions | Mar. 31, 2021USD ($) |
Finite Lived Intangible Assets [Line Items] | |
Goodwill, accumulated impairment loss | $ 15 |
Discontinued operations, disposed of by sale | |
Finite Lived Intangible Assets [Line Items] | |
Goodwill, gross carrying amount | 7 |
Goodwill, accumulated impairment loss | $ 7 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets, Net (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,039 | $ 1,039 |
Accumulated Amortization | (573) | (560) |
Net | 466 | 479 |
Indefinite-lived intangible assets | 613 | 613 |
Gross Carrying Amount | 1,652 | 1,652 |
Net | 1,079 | 1,092 |
Trademarks | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 554 | 554 |
Other | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 59 | 59 |
Customer Relationships | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,019 | 1,019 |
Accumulated Amortization | (553) | (540) |
Net | 466 | 479 |
Other | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 20 | 20 |
Accumulated Amortization | $ (20) | $ (20) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 13 | $ 14 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued personnel costs | $ 101 | $ 117 |
Accrued rebates and credits | 74 | 68 |
Accrued interest | 34 | 16 |
Other | 123 | 121 |
Accrued and other current liabilities | $ 332 | $ 322 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Other | $ 12 | $ 12 |
Total principal amount of borrowings | 3,941 | 4,004 |
Deferred financing transaction costs ("DIC") | (14) | (14) |
Original issue discounts, net of premiums ("OID") | (9) | (10) |
Debt, net | 3,918 | 3,980 |
Less: current portion | (15) | (15) |
Long-term debt | 3,903 | 3,965 |
5.125% Senior Secured Notes due 2023 | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 59 | |
4.000% Notes due 2027 | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 1,000 | 1,000 |
7.950% Debentures due 2025 | Unsecured debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 276 | 276 |
8.375% Debentures due 2027 | Unsecured debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 200 | 200 |
Secured debt | Credit Agreement | Line of credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,453 | $ 2,457 |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Feb. 16, 2021 | |
5.125% Senior Secured Notes due 2023 | Senior notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.125% | 5.125% | |
Debt instrument maturity year | 2023 | ||
4.000% Notes due 2027 | Senior notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.00% | 4.00% | |
Debt instrument maturity year | 2027 | 2027 | |
7.950% Debentures due 2025 | Unsecured debt | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.95% | 7.95% | |
Debt instrument maturity year | 2025 | 2025 | |
8.375% Debentures due 2027 | Unsecured debt | |||
Debt Instrument [Line Items] | |||
Interest rate | 8.375% | 8.375% | |
Debt instrument maturity year | 2027 | 2027 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Repayment of debt | $ 62 | $ 3,206 | $ 8,944 |
Aggregate price of debt | $ 8,978 | ||
Loss on extinguishment of debt | $ 5 |
Debt -Summary of Components of
Debt -Summary of Components of the Credit Agreement (Details) - Line of credit - Credit Agreement $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
U S Term Loans Tranche B1 | |
Line Of Credit Facility [Line Items] | |
Maturity Date | Feb. 5, 2023 |
Long-term debt, gross | $ 1,207 |
U S Term Loans Tranche B1 | London Interbank Offered Rate (LIBOR) | |
Line Of Credit Facility [Line Items] | |
Variable rate floor | 0.00% |
Basis spread on variable rate | 2.75% |
U S Term Loans Tranche B2 | |
Line Of Credit Facility [Line Items] | |
Maturity Date | Feb. 5, 2026 |
Long-term debt, gross | $ 1,246 |
U S Term Loans Tranche B2 | London Interbank Offered Rate (LIBOR) | |
Line Of Credit Facility [Line Items] | |
Variable rate floor | 0.00% |
Basis spread on variable rate | 3.25% |
U.S. Revolving Loans | |
Line Of Credit Facility [Line Items] | |
Maturity Date | Aug. 5, 2024 |
Value Utilized | $ 43 |
Debt - Summary of Components of
Debt - Summary of Components of the Credit Agreement (Parenthetical) (Details) | Mar. 31, 2021USD ($) |
Line of credit | Credit Agreement | U.S. Revolving Loans | |
Line Of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 250,000,000 |
Debt - Credit Agreement - Addit
Debt - Credit Agreement - Additional Information (Details) - Credit Agreement - Line of credit - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
U S Term Loans Tranche B1 | |||
Line Of Credit Facility [Line Items] | |||
Weighted average contractual interest rates | 2.88% | 4.44% | |
U S Term Loans Tranche B2 | |||
Line Of Credit Facility [Line Items] | |||
Weighted average contractual interest rates | 3.38% | ||
Secured debt | |||
Line Of Credit Facility [Line Items] | |||
Percentage of quarterly amortization payments | 0.25% | ||
Due amount of excess cash flow prepayments | $ 0 | ||
Secured debt | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Percentage of quarterly amortization payments | 50.00% | ||
Periodic prepayment percentage if leverage ratio threshold met | 25.00% | ||
Secured debt | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Periodic prepayment percentage if leverage ratio threshold met | 0.00% |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Senior Secured Notes (Details) - Senior Secured Notes - 4.000% Notes due 2027 | 3 Months Ended |
Mar. 31, 2021 | |
Debt Instrument [Line Items] | |
Maturity date | Oct. 15, 2027 |
Semi-annual interest payment dates | April 15 and October 15, commencing April 15, 2021 |
Debt - Schedule of Outstandin_2
Debt - Schedule of Outstanding Senior Secured Notes (Parenthetical) (Details) - 4.000% Notes due 2027 - Senior Secured Notes | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | 4.00% |
Debt instrument maturity year | 2027 | 2027 |
Debt - Notes - Additional Infor
Debt - Notes - Additional Information (Details) - USD ($) $ in Millions | Feb. 16, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Long-term debt repayments | $ 62 | $ 3,206 | $ 8,944 | |
Loss on extinguishment of debt | $ 5 | |||
5.125% Senior Secured Notes due 2023 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt repayments | $ 59 | |||
Interest rate | 5.125% | 5.125% | ||
Redemption price percentage | 101.281% | |||
Loss on extinguishment of debt | $ 1 |
Debt - Debentures (Details)
Debt - Debentures (Details) - Unsecured debt | 3 Months Ended |
Mar. 31, 2021 | |
7.950% Debentures due 2025 | |
Debt Instrument [Line Items] | |
Maturity date | Dec. 15, 2025 |
Semi-annual interest payment dates | June 15 and December 15 |
8.375% Debentures due 2027 | |
Debt Instrument [Line Items] | |
Maturity date | Apr. 15, 2027 |
Semi-annual interest payment dates | April 15 and October 15 |
Debt - Debentures (Parenthetica
Debt - Debentures (Parenthetical) (Details) - Unsecured debt | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
7.950% Debentures due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.95% | 7.95% |
Debt instrument maturity year | 2025 | 2025 |
8.375% Debentures due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.375% | 8.375% |
Debt instrument maturity year | 2027 | 2027 |
Debt - Debentures - Additional
Debt - Debentures - Additional Information (Details) - Unsecured debt - 8.375% Debentures due 2027 | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Interest rate | 8.375% | 8.375% |
Redemption price percentage | 100.00% |
Debt - Other Debt - Additional
Debt - Other Debt - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Finance lease obligations | $ 12 | $ 12 |
Debt -Schedule of Required Futu
Debt -Schedule of Required Future Repayments of Outstanding Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2021 | $ 11 | |
2022 | 16 | |
2023 | 1,220 | |
2024 | 13 | |
2025 | 289 | |
Thereafter | 2,392 | |
Total principal amount of borrowings | $ 3,941 | $ 4,004 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values and Fair Values of Debt Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other | $ 12 | $ 12 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other | 12 | 12 |
Total | 3,918 | 3,980 |
Carrying Value | 5.125% Senior Secured Notes due 2023 | Senior notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 59 | |
Carrying Value | 4.000% Notes due 2027 | Senior notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 991 | 991 |
Carrying Value | 7.950% Debentures due 2025 | Unsecured debt | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 273 | 273 |
Carrying Value | 8.375% Debentures due 2027 | Unsecured debt | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 198 | 198 |
Carrying Value | Secured debt | Credit Agreement | Line of credit | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 2,444 | 2,447 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other | 12 | 12 |
Total | 3,967 | 4,092 |
Fair Value | 5.125% Senior Secured Notes due 2023 | Senior notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 60 | |
Fair Value | 4.000% Notes due 2027 | Senior notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 981 | 1,024 |
Fair Value | 7.950% Debentures due 2025 | Unsecured debt | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 308 | 318 |
Fair Value | 8.375% Debentures due 2027 | Unsecured debt | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 229 | 235 |
Fair Value | Secured debt | Credit Agreement | Line of credit | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,437 | $ 2,443 |
Debt - Schedule of Carrying V_2
Debt - Schedule of Carrying Values and Fair Values of Debt Outstanding (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Feb. 16, 2021 | |
Senior notes | 5.125% Senior Secured Notes due 2023 | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Interest rate | 5.125% | 5.125% | |
Debt instrument maturity year | 2023 | ||
Senior notes | 4.000% Notes due 2027 | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Interest rate | 4.00% | 4.00% | |
Debt instrument maturity year | 2027 | 2027 | |
Unsecured debt | 7.950% Debentures due 2025 | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Interest rate | 7.95% | 7.95% | |
Debt instrument maturity year | 2025 | 2025 | |
Unsecured debt | 8.375% Debentures due 2027 | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Interest rate | 8.375% | 8.375% | |
Debt instrument maturity year | 2027 | 2027 |
Debt - Interest Expense, Net (D
Debt - Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Interest income, related party | $ (4) | |
Interest income, other | $ (1) | (4) |
Amortization of deferred financing transaction costs | 1 | 6 |
Amortization of original issue discounts | 2 | |
Derivative losses | 12 | |
Net foreign currency exchange losses (gains) | 1 | (6) |
Redemption premiums | 1 | |
Other | 1 | 2 |
Interest expense, net | 42 | 102 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 10 | 43 |
Unsecured debt | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 10 | 10 |
Secured debt | Securitization Facility | Line of credit | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 3 | |
Secured debt | Credit Agreement | Line of credit | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | $ 19 | $ 38 |
Debt - Interest Expense, Net (P
Debt - Interest Expense, Net (Parenthetical) (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Senior notes | 5.750% Senior Secured Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.75% | 5.75% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Asset Derivatives | $ 6 | $ 9 |
Liability Derivatives | (2) | |
Other current assets | ||
Derivative [Line Items] | ||
Asset Derivatives | 6 | 9 |
Commodity swap contracts | ||
Derivative [Line Items] | ||
Asset Derivatives | $ 6 | 9 |
Liability Derivatives | (2) | |
Accrued and other current liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ (2) |
Financial Instruments - Additio
Financial Instruments - Additional information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Unrealized loss on derivatives | $ 1 | $ 17 |
Financial Instruments - Summary
Financial Instruments - Summary of Outstanding Commodity Derivative Contracts (Details) | 3 Months Ended |
Mar. 31, 2021MMBTUlb$ / MMBTU$ / lb$ / galgal | |
Natural gas swaps | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 2,148,395 |
Natural gas swaps | Minimum | |
Derivative [Line Items] | |
Contracted price range | $ / MMBTU | 2.47 |
Natural gas swaps | Maximum | |
Derivative [Line Items] | |
Contracted price range | $ / MMBTU | 2.94 |
Polymer-grade propylene swaps | |
Derivative [Line Items] | |
Contracted volume | lb | 24,571,427 |
Polymer-grade propylene swaps | Minimum | |
Derivative [Line Items] | |
Contracted price range | $ / lb | 0.38 |
Polymer-grade propylene swaps | Maximum | |
Derivative [Line Items] | |
Contracted price range | $ / lb | 0.52 |
Benzene swaps | |
Derivative [Line Items] | |
Contracted volume | gal | 5,518,856 |
Benzene swaps | Minimum | |
Derivative [Line Items] | |
Contracted price range | $ / gal | 1.51 |
Benzene swaps | Maximum | |
Derivative [Line Items] | |
Contracted price range | $ / gal | 2.96 |
Diesel swaps | |
Derivative [Line Items] | |
Contracted volume | gal | 233,160 |
Diesel swaps | Minimum | |
Derivative [Line Items] | |
Contracted price range | $ / gal | 2.41 |
Diesel swaps | Maximum | |
Derivative [Line Items] | |
Contracted price range | $ / gal | 2.50 |
Low-density polyethylene swaps | |
Derivative [Line Items] | |
Contracted volume | lb | 9,000,000 |
Contracted price range | $ / lb | 0.71 |
Ethylene swaps | |
Derivative [Line Items] | |
Contracted volume | lb | 161,944 |
Contracted price range | $ / lb | 0.26 |
Employee Benefits - Net Periodi
Employee Benefits - Net Periodic Benefit Income for Defined Benefit Pension Plans and Other Post-employment Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | ||
Service cost | $ (2) | $ (2) |
Interest cost | (27) | (35) |
Expected return on plan assets | 50 | 51 |
Total net periodic benefit income | $ 21 | $ 14 |
Employee Benefits - Net Perio_2
Employee Benefits - Net Periodic Defined Benefit Income for Defined Benefit Pension Plans and Other Post-employment Benefit Plans Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Total net periodic benefit income | $ 21 | $ 14 |
Cost of Sales | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total net periodic benefit income | (2) | (2) |
Non-operating Income, Net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total net periodic benefit income | $ 23 | $ 16 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Pactiv Evergreen Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions made | $ 0 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income And Expenses [Abstract] | ||
Related party management fee | $ (5) | |
Foreign exchange gains on cash | 84 | |
Transition service agreement income | $ 4 | 4 |
Other | 2 | (6) |
Other income, net | $ 6 | $ 77 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Subsequent Event - MP2 Energy LLC $ in Millions | Apr. 14, 2021USD ($) |
Loss Contingencies [Line Items] | |
Loss contingency, damages sought, value | $ 40 |
Loss contingency, shortfall in contract | $ 40 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,074 | $ 2,082 |
Ending balance | 1,026 | 1,998 |
Currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (189) | (354) |
Currency translation adjustments | (9) | (174) |
Amounts reclassified from AOCL | (11) | 1 |
Other comprehensive income (loss) | (20) | (173) |
Distribution of RCPI | 2 | |
Ending balance | (209) | (525) |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (349) | (518) |
Other comprehensive income (loss) | (20) | (173) |
Distribution of RCPI | (11) | |
Ending balance | (369) | (702) |
Continuing Operations | Defined benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (160) | (176) |
Ending balance | $ (160) | (176) |
Discontinued Operations | Defined benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 12 | |
Distribution of RCPI | (13) | |
Ending balance | $ (1) |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) from continuing operations before tax | $ (29) | $ 39 |
Income tax benefit | 18 | 94 |
Tax rate benefit amount | 10 | $ 90 |
Unrecognized tax benefits decrease in income tax returns | $ 10 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | Mar. 31, 2021 |
Packaging Finance Limited And Other Entities | |
Related Party Transaction [Line Items] | |
Ownership percentage | 78.00% |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Due from related parties, current | $ 49 | $ 55 | |
Interest income | $ 4 | ||
Purchase of goods | (25) | (39) | |
Joint Ventures | |||
Related Party Transaction [Line Items] | |||
Due from related parties, current | 11 | 7 | |
Sale of goods and services | 10 | 11 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Current related party receivables | 49 | 55 | |
Noncurrent related party receivables | 0 | 0 | |
Interest income | 0 | 3 | |
Related party payables | (8) | $ (10) | |
Sale of goods and services | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Sale of goods and services | 78 | 87 | |
Transition services agreements and rental income | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Transition services agreements and rental income | 4 | 3 | |
Tax loss transfer | |||
Related Party Transaction [Line Items] | |||
Related party transactions, expenses | 0 | (1) | |
Tax loss transfer | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 13 | |
Recharges | |||
Related Party Transaction [Line Items] | |||
Related party transactions, expenses | (6) | (6) | |
Recharges | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 5 | 0 | |
Management fee, related parties | |||
Related Party Transaction [Line Items] | |||
Related party transactions, expenses | $ 0 | $ (5) |
Related Party Transactions - _2
Related Party Transactions - Related Party Transactions (Parenthetical) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($)lease_agreement | Mar. 31, 2020USD ($) | Dec. 31, 2019 | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | ||||
Related party management fee | $ 5 | |||
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Current related party receivables | $ 49 | $ 55 | ||
Affiliated Entity | Tax Matters Agreement | ||||
Related Party Transaction [Line Items] | ||||
Current related party receivables | $ 12 | |||
Affiliated Entity | Loan Transaction With Related Party | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, rate | 4.28% | 3.25% | ||
Affiliated Entity | Lease Agreements | ||||
Related Party Transaction [Line Items] | ||||
Number of lease agreements | lease_agreement | 2 |
Equity Based Compensation - Add
Equity Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 21, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 9,079,395 | ||
Stock-based compensation expense | $ 0 | ||
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation | $ 9,000,000 | ||
Unrecognized share-based compensation, weighted-average recognition period (in years) | 2 years 7 months 6 days | ||
Restricted Stock Units (RSUs) | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Performance Stock Units (PSU) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation | $ 4,000,000 | ||
Unrecognized share-based compensation, weighted-average recognition period (in years) | 3 years | ||
Selling, General and Administrative Expenses | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,000,000 |
Equity Based Compensation - Sum
Equity Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number of Stock Units | |
Beginning balance, Non-vested | shares | 297 |
Granted | shares | 686 |
Ending balance, Non-vested | shares | 983 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, Non-vested | $ / shares | $ 14 |
Granted | $ / shares | 15.04 |
Ending balance, Non-vested | $ / shares | $ 14.73 |
Equity Based Compensation - S_2
Equity Based Compensation - Summary of Performance Share Units Activity (Details) - Performance Stock Units (PSU) shares in Thousands | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number of Stock Units | |
Granted | shares | 298 |
Ending balance, Non-vested | shares | 298 |
Weighted-Average Grant Date Fair Value | |
Granted | $ / shares | $ 15.05 |
Ending balance, Non-vested | $ / shares | $ 15.05 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of the Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net (loss) income attributable to Pactiv Evergreen Inc. common shareholders | ||
From continuing operations | $ (12) | $ 133 |
From discontinued operations | (3) | 3 |
Net (loss) income attributable to Pactiv Evergreen Inc. common shareholders | $ (15) | $ 136 |
Weighted average number of shares outstanding | ||
Basic | 177.2 | 134.4 |
Diluted | 177.2 | 134.4 |
(Loss) earnings per share attributable to Pactiv Evergreen Inc. common stockholders, from continuing operations | ||
Basic | $ (0.07) | $ 0.99 |
Diluted | (0.07) | 0.99 |
(Loss) earnings per share attributable to Pactiv Evergreen Inc. common stockholders, from discontinued operations | ||
Basic | (0.02) | 0.02 |
Diluted | (0.02) | 0.02 |
(Loss) earnings per share attributable to Pactiv Evergreen Inc. common stockholders, total | ||
Basic | (0.09) | 1.01 |
Diluted | $ (0.09) | $ 1.01 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - $ / shares shares in Millions | May 03, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Earnings Per Share Basic [Line Items] | |||
Weighted average number of shares outstanding (in shares) | 134.4 | ||
Weighted average number of shares outstanding (in shares) | 0.2 | ||
Subsequent event | |||
Earnings Per Share Basic [Line Items] | |||
Dividends payable, per share | $ 0.10 | ||
Dividends payable, date declared | May 3, 2021 | ||
Dividends payable, date to be paid | Jun. 15, 2021 | ||
Dividends payable, date of record | May 28, 2021 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Segment F
Segment Information - Segment Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 1,164 | $ 1,212 | |
Adjusted EBITDA | 77 | 145 | |
Reportable segment assets | 6,751 | $ 6,843 | |
Inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (18) | (34) | |
Unallocated | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | (8) | (15) | |
Reportable segment assets | 3,825 | 4,003 | |
Foodservice | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 454 | 473 | |
Foodservice | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 454 | 473 | |
Adjusted EBITDA | 61 | 56 | |
Reportable segment assets | 1,099 | 1,064 | |
Food Merchandising | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 342 | 344 | |
Food Merchandising | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 342 | 344 | |
Adjusted EBITDA | 55 | 53 | |
Reportable segment assets | 722 | 703 | |
Beverage Merchandising | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 339 | 363 | |
Beverage Merchandising | Inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 18 | 34 | |
Beverage Merchandising | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 357 | 397 | |
Adjusted EBITDA | (32) | 49 | |
Reportable segment assets | 1,065 | 1,039 | |
Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,135 | 1,180 | |
Reportable Segments | Inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 18 | 34 | |
Reportable Segments | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,153 | 1,214 | |
Adjusted EBITDA | 84 | 158 | |
Reportable segment assets | 2,886 | 2,806 | |
Other | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 29 | 32 | |
Adjusted EBITDA | 1 | $ 2 | |
Reportable segment assets | $ 40 | $ 34 |
Segment Information - Reconcili
Segment Information - Reconciliation of EBITDA to (Loss) Income from Continuing Operations Before Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ 77 | $ 145 |
Interest expense, net | (42) | (102) |
Depreciation and amortization | (73) | (68) |
Restructuring, asset impairment and other related charges | 2 | (3) |
Non-cash pension income | 23 | 18 |
Operational process engineering related consultancy costs | (3) | (8) |
Related party management fee | (5) | |
Strategic review and transaction-related costs | (6) | |
Foreign exchange gains on cash | 84 | |
Unrealized losses on derivatives | (1) | (17) |
Executive transition charges | (10) | |
Other | (2) | 1 |
(Loss) income from continuing operations before tax | (29) | 39 |
Unallocated | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | (8) | (15) |
Reportable Segments | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 84 | 158 |
Other | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ 1 | $ 2 |
Segment Information - Net Reven
Segment Information - Net Revenues by Product Lines (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,164 | $ 1,212 |
Foodservice | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 454 | 473 |
Food Merchandising | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 342 | 344 |
Beverage Merchandising | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 339 | 363 |
Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 1,135 | 1,180 |
Operating segments | Foodservice | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 454 | 473 |
Operating segments | Foodservice | Drinkware | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 165 | 182 |
Operating segments | Foodservice | Containers | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 209 | 179 |
Operating segments | Foodservice | Tableware | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 38 | 64 |
Operating segments | Foodservice | Serviceware and other | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 42 | 48 |
Operating segments | Food Merchandising | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 342 | 344 |
Operating segments | Food Merchandising | Tableware | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 82 | 87 |
Operating segments | Food Merchandising | Meat trays | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 87 | 95 |
Operating segments | Food Merchandising | Bakery/snack/produce/fruit containers | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 69 | 64 |
Operating segments | Food Merchandising | Prepared food trays | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 34 | 34 |
Operating segments | Food Merchandising | Egg cartons | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 26 | 26 |
Operating segments | Food Merchandising | Other | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 44 | 38 |
Operating segments | Beverage Merchandising | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 357 | 397 |
Operating segments | Beverage Merchandising | Cartons for fresh beverage products | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 192 | 200 |
Operating segments | Beverage Merchandising | Liquid packaging board | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 91 | 115 |
Operating segments | Beverage Merchandising | Paper products | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 74 | 82 |
Operating segments | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 1,153 | 1,214 |
Operating segments | Other | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 29 | 32 |
Inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Net revenues | (18) | (34) |
Inter-segment eliminations | Beverage Merchandising | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 18 | 34 |
Inter-segment eliminations | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 18 | $ 34 |