Reynolds Consumer Products (REYN) 10-Q 10 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Entity File Number	001-39205
Entity Registrant Name	REYNOLDS CONSUMER PRODUCTS INC.
Entity Central Index Key	0001786431
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-3464426
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	800
Local Phone Number	879-5067
Title of 12(b) Security	Common stock, $0.001 par value
Trading Symbol	REYN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		209,862,658
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net revenues	$ 818	$ 732
Related party net revenues	27	25
Total net revenues	845	757
Cost of sales	(677)	(565)
Gross profit	168	192
Selling, general and administrative expenses	(83)	(78)
Other expense, net	(5)	(3)
Income from operations	80	111
Interest expense, net	(12)	(12)
Income before income taxes	68	99
Income tax expense	(16)	(25)
Net income	$ 52	$ 74
Earnings per share:
Basic	$ 0.25	$ 0.35
Diluted	$ 0.25	$ 0.35
Weighted average shares outstanding:
Basic	209.8	209.7
Effect of dilutive securities		0.1
Diluted	209.8	209.8

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 52	$ 74
Other comprehensive income, net of income taxes:
Interest rate derivatives	7	3
Other comprehensive income, net of income taxes	7	3
Comprehensive income	$ 59	$ 77

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 101	$ 164
Accounts receivable (net of allowance for doubtful accounts of $1 and $1)	322	316
Other receivables	9	12
Related party receivables	11	10
Inventories	648	583
Other current assets	18	19
Total current assets	1,109	1,104
Property, plant and equipment (net of accumulated depreciation of $770 and $752)	676	677
Operating lease right-of-use assets, net	53	55
Goodwill	1,879	1,879
Intangible assets, net	1,054	1,061
Other assets	39	36
Total assets	4,810	4,812
Liabilities
Accounts payable	258	261
Related party payables	41	38
Current portion of long-term debt	25	25
Income taxes payable	18	1
Accrued and other current liabilities	140	159
Total current liabilities	482	484
Long-term debt	2,082	2,087
Long-term operating lease liabilities	44	46
Deferred income taxes	349	351
Long-term postretirement benefit obligation	49	50
Other liabilities	37	38
Total liabilities	3,043	3,056
Commitments and contingencies (Note 7)
Stockholders’ equity
Additional paid-in capital	1,381	1,381
Accumulated other comprehensive income	17	10
Retained earnings	369	365
Total stockholders' equity	1,767	1,756
Total liabilities and stockholders' equity	$ 4,810	$ 4,812

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1	$ 1
Property, plant and equipment, accumulated depreciation	$ 770	$ 752
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	210,000,000	210,000,000
Common stock, shares outstanding	210,000,000	210,000,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income
Beginning balance at Dec. 31, 2020	$ 1,615	$ 1,381	$ 233	$ 1
Net income	74		74
Other comprehensive income, net of income taxes	3			3
Dividends	(48)		(48)
Other	(1)	(1)
Ending balance at Mar. 31, 2021	1,643	1,380	259	4
Beginning balance at Dec. 31, 2021	1,756	1,381	365	10
Net income	52		52
Other comprehensive income, net of income taxes	7			7
Dividends	(48)		(48)
Ending balance at Mar. 31, 2022	$ 1,767	$ 1,381	$ 369	$ 17

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Stockholders Equity [Abstract]
Dividends, per share, declared	$ 0.23	$ 0.23
Dividends, per share, paid	$ 0.23	$ 0.23

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash provided by operating activities
Net income	$ 52	$ 74
Adjustments to reconcile net income to operating cash flows:
Depreciation and amortization	28	26
Deferred income taxes	(4)	(6)
Stock compensation expense	2	2
Change in assets and liabilities:
Accounts receivable, net	(6)	9
Other receivables	3	4
Related party receivables	(1)	(2)
Inventories	(64)	(88)
Accounts payable	5	23
Related party payables	3	(4)
Income taxes payable / receivable	20	29
Accrued and other current liabilities	(18)	(50)
Other assets and liabilities	(1)	(8)
Net cash provided by operating activities	19	9
Cash used in investing activities
Acquisition of property, plant and equipment	(28)	(23)
Net cash used in investing activities	(28)	(23)
Cash used in financing activities
Repayment of long-term debt	(6)	(106)
Dividends paid	(48)	(48)
Net cash used in financing activities	(54)	(154)
Net decrease in cash and cash equivalents	(63)	(168)
Cash and cash equivalents at beginning of period	164	312
Cash and cash equivalents at end of period	$ 101	$ 144

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Note 1 – Description of Business and Basis of Presentation Description of Business: Reynolds Consumer Products Inc. and its subsidiaries (“we”, “us” or “our”) produce and sell products across three broad categories: cooking products, waste and storage products and tableware. We sell our products under brands such as Reynolds and Hefty, and also under store brands. Our product portfolio includes aluminum foil, wraps, disposable bakeware, trash bags, food storage bags and disposable tableware. We report four business segments: Reynolds Cooking & Baking; Hefty Waste & Storage; Hefty Tableware; and Presto Products. Basis of Presentation: We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by GAAP for comprehensive annual financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2021, and should be read in conjunction with the disclosures therein. In our opinion, these interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly the financial condition, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results.

New Accounting Standards

New Accounting Standards	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
New Accounting Standards	Note 2 – New Accounting Standards Accounting Guidance Issued But Not Yet Adopted: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

Inventories

Inventories	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventories	Note 3 – Inventories Inventories consisted of the following: March 31, 2022 December 31, 2021 (in millions) Raw materials $ 198 $ 206 Work in progress 72 63 Finished goods 339 276 Spare parts 39 38 Inventories $ 648 $ 583

Debt

Debt	3 Months Ended
	Mar. 31, 2022
Debt Instruments [Abstract]
Debt	Note 4 – Debt Long-term debt consisted of the following: March 31, 2022 December 31, 2021 (in millions) Term loan facility $ 2,126 $ 2,132 Deferred financing transaction costs (17 ) (18 ) Original issue discounts (2 ) (2 ) 2,107 2,112 Less: current portion (25 ) (25 ) Long-term debt $ 2,082 $ 2,087 External Debt Facilities In February 2020, we entered into new external debt facilities (“External Debt Facilities”), which consist of (i) a $2,475 million senior secured term loan facility (“Term Loan Facility”); and (ii) a $250 million senior secured revolving credit facility (“Revolving Facility”). Borrowings under the External Debt Facilities bear interest at a rate per annum equal to, at our option, either a base rate plus an applicable margin of 0.75% or a LIBO rate plus an applicable margin of 1.75%. During September 2020, we entered into a series of interest rate swaps to hedge a portion of the interest rate exposure resulting from these borrowings. Refer to Note 5 – Financial Instruments for further details. The External Debt Facilities contain a springing financial covenant requiring compliance with a ratio of first lien net indebtedness to consolidated EBITDA, 35% If an event of default occurs, the lenders under the External Debt Facilities are entitled to take various actions, including the acceleration of amounts due under the External Debt Facilities and all actions permitted to be taken by secured creditors. Term Loan Facility The Term Loan Facility matures in February 2027 . Revolving Facility The Revolving Facility matures in February 2025 Fair Value of Our Long-Term Debt The fair value of our long-term debt as of March 31, 2022, which is a Level 2 fair value measurement, approximates the carrying value due to the variable market interest rate and the stability of our credit profile.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2022
Financial Instruments [Abstract]
Financial Instruments	Note 5 - Financial Instruments Interest Rate Derivatives During 2020, we entered into a series of interest rate swaps which fixed the LIBO rate to an annual rate of 0.18% to 0.47% (for an annual effective interest rate of 1.93% to 2.22%, including margin) for an aggregate notional amount of $1,650 million, of which $800 million notional value was still in effect as of March 31, 2022. These interest rate swaps hedge a portion of the interest rate exposure resulting from our Term Loan Facility. We classified these instruments as cash flow hedges. Our cash flow hedge contracts outstanding as of March 31, 2022 cover periods ranging from one to four years. The effective portion of the gain or loss on the open hedging instrument is recorded in accumulated other comprehensive income and will be reclassified into earnings as interest expense, net when settled. The associated asset or liability on the open hedges is recorded at its fair value in other assets or other liabilities The following table provides the notional amounts, the annual rates, the annual effective rates, and the fair value of our interest rate derivatives: (In millions) Notional Amount Annual Rate Annual Effective Rate Fair Value Asset As of March 31, 2022 $ 800 0.20% to 0.47% 1.96% to 2.22% $ 14 As of December 31, 2021 $ 800 0.20% to 0.47% 1.96% to 2.22% $ 5 The following table provides the before tax effect of our interest rate derivatives on accumulated other comprehensive income and the consolidated statements of income: (In millions) Amount of Gain (Loss) Recognized in Other Comprehensive Income Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income Into Income For the three months ended March 31, 2022 $ 9 $ — For the three months ended March 31, 2021 $ 3 $ —

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	Note 6 – Stock-based Compensation We granted restricted stock units (“RSUs”) in July 2019 to certain members of management, pursuant to retention agreements entered into with these employees (the “IPO Grants”). These RSUs vest upon satisfaction of both a performance-based vesting condition (the “IPO Condition”), which was satisfied when we completed our IPO on February 4, 2020, and a service-based vesting condition, which will be satisfied with respect to one-third Additionally, we established an equity incentive plan for purposes of granting stock-based compensation awards to certain members of our senior management, our non-executive directors and to certain employees, to incentivize their performance and align their interests with ours. We have granted RSUs to certain employees and non-employee directors that have a service-based vesting condition. In addition, we have granted performance stock units (“PSUs”) to certain members of management that have a performance-based vesting condition. We account for forfeitures of outstanding but unvested grants in the period they occur. 10.5 . In the three months ended March 31, 2022, 0.2 million As of March 31, 2022, there were stock-based compensation awards representing 0.7 $2

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7 – Commitments and Contingencies Legal Proceedings: 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, consumer complaints, 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 financial position, results of operations or cash flows. However, actual outcomes may differ from those expected and could have a material effect on our financial position, results of operations or cash flows in a future period. As of March 31, 2022, there were no legal proceedings pending other than those for which we have determined that the possibility of a material outflow is remote.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Accumulated Other Comprehensive Income	Note 8 – Accumulated Other Comprehensive Income The following table summarizes the changes in our balances of each component of accumulated other comprehensive income. (In millions) Currency Translation Adjustments Employee Benefit Plans Interest Rate Derivatives Accumulated Other Comprehensive Income Balance as of December 31, 2020 $ (6 ) $ 8 $ (1 ) $ 1 Other comprehensive income — — 3 3 Balance as of March 31, 2021 (6 ) 8 2 4 Balance as of December 31, 2021 (6 ) 12 4 10 Other comprehensive income — — 7 7 Balance as of March 31, 2022 $ (6 ) $ 12 $ 11 $ 17

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 9 – Income Taxes Our effective tax rate for the three months ended March 31, 2022 was 24.3%, compared to 25.0% in the prior year period.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Segment Information	Note 10 – Segment Information Our Chief Executive Officer, who has been identified as our Chief Operating Decision Maker ("CODM"), has evaluated how he views and measures our performance. In applying the criteria set forth in the standards for reporting information about segments in financial statements, we have determined that we have four reportable segments - Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware and Presto Products. 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 segments are described as follows: Reynolds Cooking & Baking Our Reynolds Cooking & Baking segment produces branded and store brand foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners. Our branded products are sold under the Reynolds Wrap, Reynolds KITCHENS and E-Z Foil brands in the United States and selected international markets, under the ALCAN brand in Canada and under the Diamond brand outside of North America. Hefty Waste & Storage Our Hefty Waste & Storage segment produces both branded and store brand trash and food storage bags. Our branded products are sold under the Hefty Ultra Strong and Hefty Strong brands for trash bags, and as the Hefty and Baggies brands for our food storage bags. Hefty Tableware Our Hefty Tableware segment sells both branded and store brand disposable and compostable plates, bowls, platters, cups and cutlery. Our Hefty branded products include dishes and party cups. Presto Products Our Presto Products segment primarily sells store brand products in four main categories: food storage bags, trash bags, reusable storage containers and plastic wrap. Our Presto Products segment also includes our specialty business, which serves other consumer products companies by providing Fresh-Lock and Slide-Rite resealable closure systems. Information by Segment We present 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 e xclude IPO and separation-related costs. Total assets by segment are those assets directly associated with the respective operating activities, comprising inventory, property, plant and equipment and operating lease right-of-use assets. Other assets, such as cash, accounts receivable and intangible assets, are monitored on an entity-wide basis and not included in segment information that is regularly reviewed by our CODM. Transactions between segments are at negotiated prices. Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total Three Months Ended March 31, 2022 (in millions) Net revenues $ 268 $ 226 $ 210 $ 140 $ 844 $ 1 $ 845 Intersegment revenues — 2 — 1 3 (3 ) — Total segment net revenues 268 228 210 141 847 (2 ) 845 Adjusted EBITDA 28 45 23 19 115 Depreciation and amortization 6 4 4 5 19 9 28 Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total Three Months Ended March 31, 2021 (in millions) Net revenues $ 272 $ 192 $ 170 $ 126 $ 760 $ (3 ) $ 757 Intersegment revenues — 2 — — 2 (2 ) — Total segment net revenues 272 194 170 126 762 (5 ) 757 Adjusted EBITDA 53 44 34 18 149 Depreciation and amortization 5 4 4 5 18 8 26 Segment assets consisted of the following: Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total (in millions) As of March 31, 2022 $ 615 $ 292 $ 171 $ 251 $ 1,329 $ 3,481 $ 4,810 As of December 31, 2021 562 290 165 247 $ 1,264 3,548 4,812 (1) Unallocated includes the elimination of intersegment revenues, other revenue adjustments and certain corporate costs, depreciation and amortization and assets not allocated to segments. Unallocated assets are comprised of cash, accounts receivable, other receivables, entity-wide property, plant and equipment, entity-wide operating lease right-of-use assets, goodwill, intangible assets, related party receivables and other assets. The following table presents a reconciliation of segment Adjusted EBITDA to GAAP income before income taxes: Three Months Ended March 31, 2022 2021 (in millions) Segment Adjusted EBITDA $ 115 $ 149 Corporate / unallocated expenses (3 ) (9 ) 112 140 Adjustments to reconcile to GAAP income before income taxes Depreciation and amortization (28 ) (26 ) Interest expense, net (12 ) (12 ) IPO and separation-related costs (4 ) (3 ) Consolidated GAAP income before income taxes $ 68 $ 99 Information in Relation to Products Net revenues by product line are as follows: Three Months Ended March 31, 2022 2021 (in millions) Waste and storage products (1) $ 369 $ 320 Cooking products 268 272 Tableware 210 170 Unallocated (2 ) (5 ) Net revenues $ 845 $ 757 (1) Waste and storage products are comprised of our Hefty Waste & Storage and Presto Products segments. Our different product lines are generally sold to a common group of customers. 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.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Note 11 – Related Party Transactions Packaging Finance Limited (“PFL”) owns the majority of our outstanding common stock and owns the majority of the outstanding common stock of Pactiv Evergreen Inc. and its subsidiaries (“PEI Group”). Transactions between us and PEI Group are described below. For the three months ended March 31, 2022, revenues from products sold to PEI Group were $27 million, compared to $25 million in the comparable prior year period. For the three months ended March 31, 2022, products purchased from PEI Group were $93 million, compared to $74 million in the comparable prior year period. For each of the three months ended March 31, 2022, and March 31, 2021, PEI Group charged us freight and warehousing costs of $14 million, which were included in cost of sales. The resulting related party receivables and payables are settled regularly in the normal course of business. Furthermore, $36 million of the dividends paid during each of the three months ended March 31, 2022 and March 31, 2021, were paid to PFL.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 12 – Subsequent Events Quarterly Cash Dividend On April 28, 2022, our Board of Directors approved a cash dividend of $0.23 per common share to be paid on May 31, 2022 to shareholders of record on May 17, 2022. Except as described above, there have been no events subsequent to March 31, 2022 which would require accrual or disclosure in these condensed consolidated financial statements.

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Description of Business	Description of Business: Reynolds Consumer Products Inc. and its subsidiaries (“we”, “us” or “our”) produce and sell products across three broad categories: cooking products, waste and storage products and tableware. We sell our products under brands such as Reynolds and Hefty, and also under store brands. Our product portfolio includes aluminum foil, wraps, disposable bakeware, trash bags, food storage bags and disposable tableware. We report four business segments: Reynolds Cooking & Baking; Hefty Waste & Storage; Hefty Tableware; and Presto Products.
Basis of Presentation	Basis of Presentation: We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by GAAP for comprehensive annual financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2021, and should be read in conjunction with the disclosures therein. In our opinion, these interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly the financial condition, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results.
Accounting Guidance Issued But Not Yet Adopted	Accounting Guidance Issued But Not Yet Adopted: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following: March 31, 2022 December 31, 2021 (in millions) Raw materials $ 198 $ 206 Work in progress 72 63 Finished goods 339 276 Spare parts 39 38 Inventories $ 648 $ 583

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Instruments [Abstract]
Schedule of Long-term Debt	Long-term debt consisted of the following: March 31, 2022 December 31, 2021 (in millions) Term loan facility $ 2,126 $ 2,132 Deferred financing transaction costs (17 ) (18 ) Original issue discounts (2 ) (2 ) 2,107 2,112 Less: current portion (25 ) (25 ) Long-term debt $ 2,082 $ 2,087

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2022
Financial Instruments [Abstract]
Summary of Notional Amounts, Annual Rates, Annual Effective Rates and Fair Value of Interest Rate Derivatives	The following table provides the notional amounts, the annual rates, the annual effective rates, and the fair value of our interest rate derivatives: (In millions) Notional Amount Annual Rate Annual Effective Rate Fair Value Asset As of March 31, 2022 $ 800 0.20% to 0.47% 1.96% to 2.22% $ 14 As of December 31, 2021 $ 800 0.20% to 0.47% 1.96% to 2.22% $ 5
Summary of Before Tax Effect of Interest Rate Derivatives on Accumulated Other Comprehensive Income	The following table provides the before tax effect of our interest rate derivatives on accumulated other comprehensive income and the consolidated statements of income: (In millions) Amount of Gain (Loss) Recognized in Other Comprehensive Income Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income Into Income For the three months ended March 31, 2022 $ 9 $ — For the three months ended March 31, 2021 $ 3 $ —

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Summary of Changes in Balances for Each Component of Accumulated Other Comprehensive Income	The following table summarizes the changes in our balances of each component of accumulated other comprehensive income. (In millions) Currency Translation Adjustments Employee Benefit Plans Interest Rate Derivatives Accumulated Other Comprehensive Income Balance as of December 31, 2020 $ (6 ) $ 8 $ (1 ) $ 1 Other comprehensive income — — 3 3 Balance as of March 31, 2021 (6 ) 8 2 4 Balance as of December 31, 2021 (6 ) 12 4 10 Other comprehensive income — — 7 7 Balance as of March 31, 2022 $ (6 ) $ 12 $ 11 $ 17

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Summary of Adjusted EBITDA	Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total Three Months Ended March 31, 2022 (in millions) Net revenues $ 268 $ 226 $ 210 $ 140 $ 844 $ 1 $ 845 Intersegment revenues — 2 — 1 3 (3 ) — Total segment net revenues 268 228 210 141 847 (2 ) 845 Adjusted EBITDA 28 45 23 19 115 Depreciation and amortization 6 4 4 5 19 9 28 Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total Three Months Ended March 31, 2021 (in millions) Net revenues $ 272 $ 192 $ 170 $ 126 $ 760 $ (3 ) $ 757 Intersegment revenues — 2 — — 2 (2 ) — Total segment net revenues 272 194 170 126 762 (5 ) 757 Adjusted EBITDA 53 44 34 18 149 Depreciation and amortization 5 4 4 5 18 8 26
Summary of Segment Assets	Segment assets consisted of the following: Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total (in millions) As of March 31, 2022 $ 615 $ 292 $ 171 $ 251 $ 1,329 $ 3,481 $ 4,810 As of December 31, 2021 562 290 165 247 $ 1,264 3,548 4,812 (1) Unallocated includes the elimination of intersegment revenues, other revenue adjustments and certain corporate costs, depreciation and amortization and assets not allocated to segments. Unallocated assets are comprised of cash, accounts receivable, other receivables, entity-wide property, plant and equipment, entity-wide operating lease right-of-use assets, goodwill, intangible assets, related party receivables and other assets.
Reconciliation of Segment Adjusted EBITDA to GAAP Income Before Income Taxes	The following table presents a reconciliation of segment Adjusted EBITDA to GAAP income before income taxes: Three Months Ended March 31, 2022 2021 (in millions) Segment Adjusted EBITDA $ 115 $ 149 Corporate / unallocated expenses (3 ) (9 ) 112 140 Adjustments to reconcile to GAAP income before income taxes Depreciation and amortization (28 ) (26 ) Interest expense, net (12 ) (12 ) IPO and separation-related costs (4 ) (3 ) Consolidated GAAP income before income taxes $ 68 $ 99
Summary of Net Revenues by Product Line	Net revenues by product line are as follows: Three Months Ended March 31, 2022 2021 (in millions) Waste and storage products (1) $ 369 $ 320 Cooking products 268 272 Tableware 210 170 Unallocated (2 ) (5 ) Net revenues $ 845 $ 757 (1) Waste and storage products are comprised of our Hefty Waste & Storage and Presto Products segments.

Description of Business and B_3

Description of Business and Basis of Presentation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022Segment
Accounting Policies [Abstract]
Number of reportable segments	4

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 198	$ 206
Work in progress	72	63
Finished goods	339	276
Spare parts	39	38
Inventories	$ 648	$ 583

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Deferred financing transaction costs	$ (17)	$ (18)
Original issue discounts	(2)	(2)
Total debt	2,107	2,112
Less: current portion	(25)	(25)
Long-term debt	2,082	2,087
Term Loan Facility
Debt Instrument [Line Items]
Debt	$ 2,126	$ 2,132

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 29, 2020	Mar. 31, 2022
Debt Instrument [Line Items]
Line of credit facility, description		The External Debt Facilities contain a springing financial covenant requiring compliance with a ratio of first lien net indebtedness to consolidated EBITDA, applicable solely to the Revolving Facility. The financial covenant is tested on the last day of any fiscal quarter only if the aggregate principal amount of borrowings under the Revolving Facility and drawn but unreimbursed letters of credit exceed 35% of the total amount of commitments under the Revolving Facility on such day. We are currently in compliance with the covenants contained in our External Debt Facilities.
Quarterly unreimbursed letters of credit minimum percentage	35.00%
Debt instrument, maturity period		Feb. 28, 2025
Letters of credit outstanding		$ 8,000,000
Outstanding borrowings under revolving facility		$ 0
Term Loan Facility
Debt Instrument [Line Items]
Debt instrument, maturity period		Feb. 28, 2027
Debt instrument, periodic payment		$ 6,000,000
External Debt Facilities | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, interest rate	1.75%
External Debt Facilities | Base Rate
Debt Instrument [Line Items]
Debt instrument, interest rate	0.75%
External Debt Facilities | Term Loan Facility
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity	$ 2,475,000,000
External Debt Facilities | Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity	$ 250,000,000

Financial Instruments - Additio

Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments Gain Loss [Line Items]
Aggregate notional amount	$ 800	$ 800
Interest Rate Swaps | Cash Flow Hedges
Derivative Instruments Gain Loss [Line Items]
Aggregate notional amount	$ 800		$ 1,650
Minimum
Derivative Instruments Gain Loss [Line Items]
Derivative, annual LIBO rate	0.20%	0.20%
Derivative, effective interest rate	1.96%	1.96%
Minimum | Interest Rate Swaps | Cash Flow Hedges
Derivative Instruments Gain Loss [Line Items]
Derivative, annual LIBO rate			0.18%
Derivative, effective interest rate			1.93%
Cash flow hedge contracts period	1 year
Maximum
Derivative Instruments Gain Loss [Line Items]
Derivative, annual LIBO rate	0.47%	0.47%
Derivative, effective interest rate	2.22%	2.22%
Maximum | Interest Rate Swaps | Cash Flow Hedges
Derivative Instruments Gain Loss [Line Items]
Derivative, annual LIBO rate			0.47%
Derivative, effective interest rate			2.22%
Cash flow hedge contracts period	4 years

Financial Instruments - Summary

Financial Instruments - Summary of Notional Amounts, Annual Rates, Annual Effective Rates and Fair Value of Interest Rate Derivatives (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Derivative Instruments Gain Loss [Line Items]
Notional Amount	$ 800	$ 800
Fair Value Asset	$ 14	$ 5
Minimum
Derivative Instruments Gain Loss [Line Items]
Annual Rate	0.20%	0.20%
Annual Effective Rate	1.96%	1.96%
Maximum
Derivative Instruments Gain Loss [Line Items]
Annual Rate	0.47%	0.47%
Annual Effective Rate	2.22%	2.22%

Financial Instruments - Summa_2

Financial Instruments - Summary of Before Tax Effect of Interest Rate Derivatives on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Financial Instruments [Abstract]
Amount of Gain (Loss) Recognized in Other Comprehensive Income	$ 9	$ 3

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of employees can satisfied the service condition	33.33%
Minimum period of employees need to continued employment	3 years
Number of common stock available for issuance	10,500,000
Shares issued	700,000		400,000
Stock-based compensation expense	$ 2	$ 2
RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted	0.2
PSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted	0.2

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income - Summary of Changes in Balances for Each Component of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	$ 1,756	$ 1,615
Other comprehensive income	7	3
Ending balance	1,767	1,643
Currency Translation Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(6)	(6)
Ending balance	(6)	(6)
Employee Benefit Plans
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	12	8
Ending balance	12	8
Interest Rate Derivatives
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	4	(1)
Other comprehensive income	7	3
Ending balance	11	2
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	10	1
Other comprehensive income	7	3
Ending balance	$ 17	$ 4

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Expected annualized effective tax rate	24.30%	25.00%

Segment Information - Additiona

Segment Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022Segment
Segment Reporting [Abstract]
Number of reportable segments	4

Segment Information - Summary o

Segment Information - Summary of Adjusted EBITDA (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 845	$ 757
Adjusted EBITDA	112	140
Depreciation and amortization	28	26
Net Revenues
Segment Reporting Information [Line Items]
Net revenues	845	757
Operating Segment
Segment Reporting Information [Line Items]
Net revenues	847	762
Adjusted EBITDA	115	149
Depreciation and amortization	19	18
Operating Segment | Net Revenues
Segment Reporting Information [Line Items]
Net revenues	844	760
Operating Segment | Intersegment Revenues
Segment Reporting Information [Line Items]
Net revenues	3	2
Operating Segment | Reynolds Cooking & Baking
Segment Reporting Information [Line Items]
Net revenues	268	272
Adjusted EBITDA	28	53
Depreciation and amortization	6	5
Operating Segment | Reynolds Cooking & Baking | Net Revenues
Segment Reporting Information [Line Items]
Net revenues	268	272
Operating Segment | Hefty Waste & Storage
Segment Reporting Information [Line Items]
Net revenues	228	194
Adjusted EBITDA	45	44
Depreciation and amortization	4	4
Operating Segment | Hefty Waste & Storage | Net Revenues
Segment Reporting Information [Line Items]
Net revenues	226	192
Operating Segment | Hefty Waste & Storage | Intersegment Revenues
Segment Reporting Information [Line Items]
Net revenues	2	2
Operating Segment | Hefty Tableware
Segment Reporting Information [Line Items]
Net revenues	210	170
Adjusted EBITDA	23	34
Depreciation and amortization	4	4
Operating Segment | Hefty Tableware | Net Revenues
Segment Reporting Information [Line Items]
Net revenues	210	170
Operating Segment | Presto Products
Segment Reporting Information [Line Items]
Net revenues	141	126
Adjusted EBITDA	19	18
Depreciation and amortization	5	5
Operating Segment | Presto Products | Net Revenues
Segment Reporting Information [Line Items]
Net revenues	140	126
Operating Segment | Presto Products | Intersegment Revenues
Segment Reporting Information [Line Items]
Net revenues	1
Unallocated
Segment Reporting Information [Line Items]
Net revenues	(2)	(5)
Adjusted EBITDA	(3)	(9)
Depreciation and amortization	9	8
Unallocated | Net Revenues
Segment Reporting Information [Line Items]
Net revenues	1	(3)
Unallocated | Intersegment Revenues
Segment Reporting Information [Line Items]
Net revenues	$ (3)	$ (2)

Segment Information - Summary_2

Segment Information - Summary of Segment Assets (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Assets	$ 4,810	$ 4,812
Operating Segment
Segment Reporting Information [Line Items]
Assets	1,329	1,264
Operating Segment | Reynolds Cooking & Baking
Segment Reporting Information [Line Items]
Assets	615	562
Operating Segment | Hefty Waste & Storage
Segment Reporting Information [Line Items]
Assets	292	290
Operating Segment | Hefty Tableware
Segment Reporting Information [Line Items]
Assets	171	165
Operating Segment | Presto Products
Segment Reporting Information [Line Items]
Assets	251	247
Unallocated
Segment Reporting Information [Line Items]
Assets	$ 3,481	$ 3,548

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Adjusted EBITDA to GAAP Income Before Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Adjusted EBITDA	$ 112	$ 140
Adjustments to reconcile to GAAP income before income taxes
Depreciation and amortization	(28)	(26)
Interest expense, net	(12)	(12)
IPO and separation-related costs	(4)	(3)
Income before income taxes	68	99
Segment Adjusted EBITDA
Segment Reporting Information [Line Items]
Adjusted EBITDA	115	149
Adjustments to reconcile to GAAP income before income taxes
Depreciation and amortization	(19)	(18)
Corporate / Unallocated Expenses
Segment Reporting Information [Line Items]
Adjusted EBITDA	(3)	(9)
Adjustments to reconcile to GAAP income before income taxes
Depreciation and amortization	$ (9)	$ (8)

Segment Information - Summary_3

Segment Information - Summary of Net Revenues by Product Line (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 845	$ 757
Waste and Storage Products
Segment Reporting Information [Line Items]
Net revenues	369	320
Cooking Products
Segment Reporting Information [Line Items]
Net revenues	268	272
Tableware
Segment Reporting Information [Line Items]
Net revenues	210	170
Unallocated
Segment Reporting Information [Line Items]
Net revenues	$ (2)	$ (5)

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Related Party Transaction [Line Items]
Revenues	$ 845	$ 757
Costs of sales	677	565
PEI Group
Related Party Transaction [Line Items]
Revenues	27	25
Products purchased	93	74
PFL
Related Party Transaction [Line Items]
Dividend paid	36	36
Freight and Warehousing Costs | PEI Group
Related Party Transaction [Line Items]
Costs of sales	$ 14	$ 14

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - $ / shares	Apr. 28, 2022	Mar. 31, 2022	Mar. 31, 2021
Subsequent Event [Line Items]
Cash dividend per common share		$ 0.23	$ 0.23
Subsequent Events
Subsequent Event [Line Items]
Cash dividend per common share	$ 0.23
Cash dividend per common share, date to be paid	May 31, 2022
Cash dividend per common share, date of record	May 17, 2022