Magnera (MAGN) 10-Q 6 Feb 25 2025 Q1 Quarterly report Financial data

Cover

Cover - shares shares in Millions	3 Months Ended
	Dec. 28, 2024	Feb. 06, 2025
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 28, 2024
Document Transition Report	false
Entity Address, Address Line One	9335 Harris Corners Pkwy
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28269
City Area Code	866
Local Phone Number	744-7380
Entity File Number	1-03560
Entity Registrant Name	Magnera Corporation
Entity Tax Identification Number	23-0628360
Entity Incorporation, State or Country Code	PA
Title of 12(b) Security	Common Stock
Trading Symbol	MAGN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		35.4
Amendment Flag	false
Entity Central Index Key	0000041719
Current Fiscal Year End Date	--09-27
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2025
Former Address
Document Information [Line Items]
Entity Address, Address Line One	4350 Congress Street
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28209

Consolidated and Combined State

Consolidated and Combined Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Income Statement [Abstract]
Net sales	$ 702	$ 519
Costs and expenses:
Cost of goods sold	631	477
Selling, general and administrative	44	28
Amortization of intangibles	14	12
Transaction and other activities	32	10
Corporate expense allocation	3	4
Operating income (loss)	(22)	(12)
Other expense (income), net	21	(2)
Interest expense	26	0
Income (loss) before income taxes	(69)	(10)
Income tax benefit	(9)	(2)
Net income (loss)	$ (60)	$ (8)
Net income (loss) per share:
Basic (in dollars per share)	$ (1.69)	$ (0.25)
Diluted (in dollars per share)	$ (1.69)	$ (0.25)

Consolidated and Combined Sta_2

Consolidated and Combined Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (60)	$ (8)
Other comprehensive income, net of tax:
Currency translation gain (loss)	(71)	39
Other comprehensive income (loss)	(71)	39
Comprehensive income (loss)	$ (131)	$ 31

Consolidated and Combined Balan

Consolidated and Combined Balance Sheets - USD ($) $ in Millions	Dec. 28, 2024	Sep. 28, 2024
Current assets:
Cash and cash equivalents	$ 215	$ 230
Accounts receivable	475	359
Finished goods	303	156
Raw materials	205	103
Prepaid expenses and other current assets	140	38
Total current assets	1,338	886
Noncurrent assets:
Property, plant and equipment	1,532	949
Goodwill and intangible assets	876	850
Right-of-use assets	74	49
Other assets	173	73
Total assets	3,993	2,807
Current liabilities:
Accounts payable	333	295
Accrued expenses	205	162
Current portion of long-term debt	8	0
Total current liabilities	546	457
Noncurrent liabilities:
Long-term debt	1,988	0
Deferred income taxes	110	78
Operating lease liabilities	57	39
Other long-term liabilities	186	94
Total liabilities	2,887	668
Stockholders’ equity:
Berry net investment	0	2,307
Additional paid-in capital	1,405	0
Retained loss	(60)	0
Accumulated other comprehensive loss	(239)	(168)
Total stockholders’ equity	1,106	2,139
Total liabilities and stockholders’ equity	$ 3,993	$ 2,807

Consolidated and Combined Sta_3

Consolidated and Combined Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Cash Flows from Operating Activities:
Net income (loss)	$ (60)	$ (8)
Adjustments to reconcile net cash from operating activities:
Depreciation	39	32
Amortization of intangibles	14	12
Non-cash interest expense	3	1
Deferred income tax	8	(7)
Share-based compensation expense	6	3
Other non-cash operating activities, net	32	(3)
Changes in working capital, net	(106)	(59)
Change in other assets and liabilities	6	2
Net cash from (used in) operating activities	(58)	(27)
Cash Flows from Investing Activities:
Additions to property, plant and equipment, net	(16)	(16)
Cash acquired from GLT acquisition	37	0
Other investing activities and other	0	30
Net cash from investing activities	21	14
Cash Flows from Financing Activities:
Proceeds from long-term borrowings	1,556	0
Repayments on long-term borrowings	(430)	(1)
Transfers from (to) Berry, net	34	(8)
Cash distribution to Berry	(1,111)	0
Debt fees	(15)	0
Other, net	(1)	0
Net cash from financing activities	33	(9)
Effect of currency translation on cash	(11)	4
Net change in cash and cash equivalents	(15)	(18)
Cash and cash equivalents at beginning of period	230	185
Cash and cash equivalents at the end of period	$ 215	$ 167

Consolidated and Combined Sta_4

Consolidated and Combined Statements of Changes in Stockholders’ Equity - USD ($) $ in Millions	Total	Berry Net Investment	Additional Paid-in Capital	Other Comprehensive Income (Loss) - Currency Translation	Retained Loss
Beginning balance at Sep. 30, 2023	$ 2,390	$ 2,561	$ 0	$ (171)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(8)	(8)
Other comprehensive income (loss)	39			39
Cash distribution to Berry	(5)	(5)
Ending balance at Dec. 30, 2023	2,416	2,548	0	(132)	0
Beginning balance at Sep. 28, 2024	2,139	2,307	0	(168)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(60)				(60)
Other comprehensive income (loss)	(71)			(71)
Cash distribution to Berry	(1,111)	(1,111)
Transfers from Berry, net	129	129
Distribution of Berry’s net investment	0	(1,325)	1,325
Acquisition of GLT	74		74
Share-based compensation	6		6
Ending balance at Dec. 28, 2024	$ 1,106	$ 0	$ 1,405	$ (239)	$ (60)

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation On November 4, 2024 (the “Closing Date”), Treasure Holdco, Inc. (“Treasure”), which was a wholly owned subsidiary of Berry Global Group, Inc. (“Berry”), completed its merger (the “Transaction”) with the Glatfelter Corporation (“GLT”) which concurrently changed its name to Magnera Corporation (“the Company,” “we,” or “Magnera”). As a result, pre-Transaction Treasure shareholders received shares of Magnera representing 90% of the combined company and GLT shareholders retained 10%. The Company’s shares trade on the New York Stock Exchange under the trading symbol MAGN. The accompanying unaudited Consolidated and Combined Financial Statements of Magnera Corporation have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included, and all subsequent events up to the time of the filing have been evaluated. For further information, refer to the Company’s Form 8-K/A filed on January 31, 2024 with the SEC. The pre-Transaction combined financial results of operations, financial position, and cash flows have been prepared on a carve-out basis which include assumptions underlying the preparation that management believes are reasonable. However, the combined pre-Transaction financial information included herein may not necessarily reflect the Company’s results of operations, financial position, and cash flows had the Company been an independent stand-alone company during the periods presented. For periods prior to the Closing Date, transactions between Berry and Treasure were reflected as a component of Berry's net investment in the Consolidated and Combined Balance Sheets and as a financing activity within the accompanying Consolidated and Combined Statements of Cash Flows. Berry's net investment on the Consolidated and Combined Balance Sheet and Consolidated and Combined Statement of Stockholders’ Equity represents the cumulative net investment by Berry in Treasure. Concurrent with the closing of the Transaction, Berry received a cash distribution and, in turn, transferred Berry’s health, hygiene and specialties global nonwovens and films business to Treasure. As a result, Berry's net investment in Treasure was reduced to zero with a corresponding adjustment to Additional Paid-in Capital. Treasure was deemed to be the accounting acquirer of GLT; therefore, the historical financial statements of Treasure are reflected in this filing as the Company’s historical financial statements. Accordingly, the financial results of Magnera as of and for any period prior to the Closing Date do not include the financial results of operations, financial position, and cash flows of GLT. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No.2023-07 "Segment Reporting (Topic 280): Improvements to Reporting Segment Disclosures." The ASU was issued to improve reportable segment disclosure requirements, primarily through enhanced disclosures of significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance. In December 2023, the FASB issued ASU No.2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The ASU was issued to improve transparency and disclosure requirements for the rate recognition, income taxes paid and other tax disclosures. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this guidance. In November 2024, the FASB issued ASU No.2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which requires an entity to disclose disaggregated information about certain income statement expense line items on the face of the income statement. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this guidance.

Revenue and Accounts Receivable

Revenue and Accounts Receivable	3 Months Ended
	Dec. 28, 2024
Disaggregation of Revenue [Abstract]
Revenue and Accounts Receivable	Revenue and Accounts Receivable Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled. We consider the promise to transfer products to be our sole performance obligation. Generally, our revenue is recognized for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. The Company disaggregates revenue based on geography. See Note 9—Segment and Geographic Data. The Company records current expected credit losses based on a variety of factors including historical loss experience and current customer financial condition. The changes to our current expected credit losses, write-off activity, and recoveries were not material for any of the periods presented. The Company has entered into various factoring agreements, primarily customer-based supply chain financing programs, to sell certain receivables to third-party financial institutions. These agreements result in true sales of the transferred receivables, which occur when receivables are transferred without recourse to the Company, are reflected as a reduction of trade receivables, net on the consolidated and combined balance sheets and the proceeds are included in the cash flows from operating activities in the consolidated and combined statements of cash flows.

Acquisition

Acquisition	3 Months Ended
	Dec. 28, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Acquisition	Acquisition Glatfelter On November 4, 2024, the Transaction was completed with GLT. The Transaction combined GLT’s sustainable solutions and product portfolio with Treasure’s proprietary technologies and global scale. The Company is now a global leader in growing markets while serving some of the world’s largest brand owners. The results of GLT have been included in the consolidated results of the Company since the Closing Date. The GLT acquisition has been accounted for under the purchase method of accounting. Under this method, the assets acquired and liabilities assumed have been recorded based on estimated fair values as of the Closing Date. Certain assets, including inventory, intangibles, and property, plant, and equipment included in the purchase price allocation have been estimated based on historical acquisitions. The Company will have a full valuation analysis performed over the acquired business during subsequent quarters and will continue to update the purchase price allocation throughout the year. The Company has recognized goodwill on this Transaction primarily as a result of expected cost synergies, and expects goodwill not to be deductible for tax purposes. The following table summarizes the purchase price allocation which is preliminary and subject to change within one year of the Closing Date: Fair value of GLT common stock concurrent with closing $ 74 Identifiable assets acquired and liabilities assumed Cash 37 Working capital (a) 259 Property, plant and equipment 637 Identifiable intangible assets 51 Other assets 81 Other long-term liabilities (131) Debt (869) Goodwill 9 Total consideration $ 74 (a) Includes a $12 million step up of inventory to fair value When including GLT results for the periods prior to the Closing Date, unaudited pro forma net sales and net loss were $814 million and $79 million, respectively, for the quarterly period ended December 28, 2024 and $839 million and $35 million, respectively, for the quarterly period ended December 30, 2023. The unaudited pro forma net sales and net income figures assume that the Transaction was consummated as of the beginning of the relevant period.

Transaction and Other Activitie

Transaction and Other Activities	3 Months Ended
	Dec. 28, 2024
Restructuring and Related Activities [Abstract]
Transaction and Other Activities	Transaction and Other Activities The table below sets forth the significant components of the Transaction and other activities, including supply chain financings activity charges recognized for the periods presented, by reportable segment: Quarterly Period Ended December 28, 2024 December 30, 2023 Americas $ 20 $ 3 Rest of World 12 7 Consolidated $ 32 $ 10 Employee Severance and Benefits (a) Transaction Activities (b) Other Activities Total Balance at September 28, 2024 $ 8 $ — $ — $ 8 Charges 6 18 8 32 Cash payments (6) (18) (8) (32) Balance at December 28, 2024 $ 8 $ — $ — $ 8 (a) Restructuring activities (b)

Leases

Leases	3 Months Ended
	Dec. 28, 2024
Leases [Abstract]
Leases	Leases The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. Supplemental lease information is as follows: Leases Classification December 28, 2024 September 28, 2024 Operating leases: Operating lease right-of-use assets Right-of-use asset $ 74 $ 49 Current operating lease liabilities Accrued expenses 18 11 Noncurrent operating lease liabilities Operating lease liability 57 39 Finance leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 5 $ 6
Leases	Leases The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. Supplemental lease information is as follows: Leases Classification December 28, 2024 September 28, 2024 Operating leases: Operating lease right-of-use assets Right-of-use asset $ 74 $ 49 Current operating lease liabilities Accrued expenses 18 11 Noncurrent operating lease liabilities Operating lease liability 57 39 Finance leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 5 $ 6

Long-Term Debt

Long-Term Debt	3 Months Ended
	Dec. 28, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consists of the following: Facility Maturity Date December 28, 2024 September 28, 2024 Revolving credit facility November 2029 $ — $ — Term loan November 2031 785 — 7.250% First Priority Senior Secured Notes November 2031 800 — 4.75% First Priority Senior Secured Notes October 2029 500 — Debt discounts, deferred fees and other (89) — Total long-term debt 1,996 — Current portion of long-term debt (8) — Long-term debt, less current portion $ 1,988 $ — As part of the Transaction, the Company consummated a $785 million Term Loan due 2031 (the “Term Loan”), an $800 million issuance of 7.25% First Priority Senior Secured Notes due 2031 (the “7.25% Notes”), and a $350 million revolving credit facility (the “Revolving Credit Facility”). The proceeds from the Term Loan and 7.25% Notes were used to retire a portion of GLT outstanding debt and fund a cash distribution to Berry. Despite not having financial maintenance covenants on our Term Loan and secured notes, these agreements do contain certain negative covenants. The failure to comply with these negative covenants could restrict our ability to incur additional indebtedness, effect acquisitions, enter into certain significant business combinations, make distributions or redeem indebtedness. The current portion of long-term debt consists of quarterly principal payments on the term loan due within one year. We are in compliance with all covenants as of December 28, 2024. Debt discounts, deferred financing fees and the purchase price adjustment related to the retained GLT 4.75% First Priority Senior Secured Notes are presented net of Long-term debt, less the current portion on the Consolidated and Combined Balance Sheets and are amortized to Interest expense on the Consolidated and Combined Statements of Operations through maturity.

Financial Instruments and Fair

Financial Instruments and Fair Value Measurements	3 Months Ended
	Dec. 28, 2024
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value Measurements	Financial Instruments and Fair Value Measurements In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. The Company may use derivative financial instruments to help manage market risk and reduce the exposure to fluctuations in foreign currencies. These financial instruments are not used for trading or other speculative purposes. Cross-Currency Swaps The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk. The swap agreements mature November 2027 (€200 million) and November 2029 (€375 million). The swaps are designated as a hedge of the Company’s foreign currency investment in foreign subsidiaries. The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Balances on a gross basis are as follows: Derivative Instruments Hedge Designation Balance Sheet Location December 28, 2024 September 28, 2024 Cross-currency swaps Designated Other assets $ 10 $ — The effect of the Company’s derivative instruments on the Consolidated and Combined Statements of Operations is as follows: Quarterly Period Ended Derivative Instruments Statements of Income Location December 28, 2024 December 30, 2023 Cross-currency swaps Interest expense $ 2 $ — Non-recurring Fair Value Measurements The Company has certain assets that are measured at fair value on a non-recurring basis when impairment indicators are present or when the Company completes an acquisition. The Company adjusts certain long-lived assets to fair value only when the carrying values exceed the fair values. The categorization of the framework used to value the assets is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. These assets that are subject to our impairment analysis primarily include our definite lived and indefinite lived intangible assets, including Goodwill and our Property, plant and equipment. The Company reviews Goodwill and other indefinite lived assets for impairment as of the first day of the fourth fiscal quarter each year and more frequently if impairment indicators exist. As a result of the fiscal 2024 assessment, the Company recorded an impairment charge of $172 million. No impairment indicators were identified in the current quarter. Included in the following tables are the major categories of assets and their current carrying values, along with the impairment loss recognized on the fair value measurement for the period then ended: December 28, 2024 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 26 $ 26 $ — Goodwill — — 617 617 — Definite lived intangible assets — — 233 233 — Property, plant, and equipment — — 1,532 1,532 — Total $ — $ — $ 2,408 $ 2,408 $ — September 28, 2024 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 26 $ 26 $ — Goodwill — — 624 624 (171) Definite lived intangible assets — — 200 200 (1) Property, plant, and equipment — — 949 949 — Total $ — $ — $ 1,799 $ 1,799 $ (172)

Income Taxes

Income Taxes	3 Months Ended
	Dec. 28, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The effective income tax rate for the quarter was unfavorably impacted by the jurisdictional mix of pre-tax results among the Company and its subsidiaries and losses which generate no tax benefit in domestic and certain foreign jurisdictions.

Segment and Geographic Data

Segment and Geographic Data	3 Months Ended
	Dec. 28, 2024
Segment Reporting [Abstract]
Segment and Geographic Data	Segment and Geographic Data The Company’s operations are organized into two operating and reportable segments: Americas and Rest of World. The structure is designed to align us with our customers, provide improved service, drive future growth, and to facilitate synergy realization. Selected information by reportable segment is presented in the following tables: Quarterly Period Ended December 28, 2024 December 30, 2023 Net Sales Americas $ 420 $ 348 Rest of World 282 171 Total net sales $ 702 $ 519 Operating income (loss) Americas $ (7) $ (3) Rest of World (15) (9) Total operating income (loss) $ (22) $ (12) Depreciation and amortization Americas $ 33 $ 30 Rest of World 20 14 Total depreciation and amortization $ 53 $ 44 Selected information by geographical region is presented in the following table: Quarterly Period Ended December 28, 2024 December 30, 2023 Net Sales United States and Canada $ 306 $ 224 Latin America 114 124 Rest of World 282 171 Total net sales $ 702 $ 519 Selected information by category is presented in the following tables: Quarterly Period Ended December 28, 2024 December 30, 2023 Net Sales Personal Care 53 % 64 % Consumer Solutions 47 % 36 %

Contingencies and Commitments

Contingencies and Commitments	3 Months Ended
	Dec. 28, 2024
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	Contingencies and Commitments Litigation The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company believes that any ultimate liability would not be material to its consolidated and combined financial position, results of operations or cash flows. Environmental Claims Over the next 30 years, we are primarily responsible for the reimbursement of government oversight costs associated with certain environmental claims in lower Fox River located in Neenah. At December 28, 2024 the outstanding balance of the environmental liability and corresponding escrow asset was $14 million and $9 million, respectively. Tax Claims

Basic and Diluted Net Income (L

Basic and Diluted Net Income (Loss) Per Share	3 Months Ended
	Dec. 28, 2024
Earnings Per Share [Abstract]
Basic and Diluted Net Income (Loss) Per Share	Basic and Diluted Net Income (Loss) Per Share Basic net income or earnings per share ("EPS") is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations: Quarterly Period Ended (in millions, except share amounts) December 28, 2024 December 30, 2023 Numerator Consolidated net income (loss) $ (60) $ (8) Denominator Weighted average common shares outstanding - basic and dilutive 35.4 31.8

Corporate Expense Allocation

Corporate Expense Allocation	3 Months Ended
	Dec. 28, 2024
Corporate Expense Allocations [Abstract]
Corporate Expense Allocation	Corporate Expense Allocation Based on management estimates, $3 million and $4 million of general corporate expenses including information technology, accounting, legal, human resources, and other services were allocated to Treasure periods prior to the Closing Date for the quarterly period ended December 28, 2024 and December 30, 2023, respectively. Management estimates corporate costs on a standalone basis would have been approximately $17 million to $22 million per year.

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 28, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In January 2025, the Company entered into a transaction to cash settle existing cross-currency swaps and received proceeds of $22 million. The swap settlement impact will be included as a component of Currency translation within Accumulated other comprehensive loss. Concurrently with the settlement of the existing cross-currency swaps, the Company entered into new cross-currency swap agreements that mature November 2027 (€250 million) and November 2029 (€425 million).

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Pay vs Performance Disclosure
Consolidated net income (loss)	$ (60)	$ (8)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 28, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Dec. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	On November 4, 2024 (the “Closing Date”), Treasure Holdco, Inc. (“Treasure”), which was a wholly owned subsidiary of Berry Global Group, Inc. (“Berry”), completed its merger (the “Transaction”) with the Glatfelter Corporation (“GLT”) which concurrently changed its name to Magnera Corporation (“the Company,” “we,” or “Magnera”). As a result, pre-Transaction Treasure shareholders received shares of Magnera representing 90% of the combined company and GLT shareholders retained 10%. The Company’s shares trade on the New York Stock Exchange under the trading symbol MAGN.
Use of Estimates	In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No.2023-07 "Segment Reporting (Topic 280): Improvements to Reporting Segment Disclosures." The ASU was issued to improve reportable segment disclosure requirements, primarily through enhanced disclosures of significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance. In December 2023, the FASB issued ASU No.2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The ASU was issued to improve transparency and disclosure requirements for the rate recognition, income taxes paid and other tax disclosures. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this guidance. In November 2024, the FASB issued ASU No.2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which requires an entity to disclose disaggregated information about certain income statement expense line items on the face of the income statement. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this guidance.
Revenue Recognition	Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled. We consider the promise to transfer products to be our sole performance obligation. Generally, our revenue is recognized for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. The Company disaggregates revenue based on geography.

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
	Dec. 28, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the purchase price allocation which is preliminary and subject to change within one year of the Closing Date: Fair value of GLT common stock concurrent with closing $ 74 Identifiable assets acquired and liabilities assumed Cash 37 Working capital (a) 259 Property, plant and equipment 637 Identifiable intangible assets 51 Other assets 81 Other long-term liabilities (131) Debt (869) Goodwill 9 Total consideration $ 74 (a) Includes a $12 million step up of inventory to fair value

Transaction and Other Activit_2

Transaction and Other Activities (Tables)	3 Months Ended
	Dec. 28, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring and Related Costs	The table below sets forth the significant components of the Transaction and other activities, including supply chain financings activity charges recognized for the periods presented, by reportable segment: Quarterly Period Ended December 28, 2024 December 30, 2023 Americas $ 20 $ 3 Rest of World 12 7 Consolidated $ 32 $ 10
Schedule of Restructuring Reserve by Type of Cost	Employee Severance and Benefits (a) Transaction Activities (b) Other Activities Total Balance at September 28, 2024 $ 8 $ — $ — $ 8 Charges 6 18 8 32 Cash payments (6) (18) (8) (32) Balance at December 28, 2024 $ 8 $ — $ — $ 8 (a) Restructuring activities (b)

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 28, 2024
Leases [Abstract]
Schedule of Information Related to Leases	Supplemental lease information is as follows: Leases Classification December 28, 2024 September 28, 2024 Operating leases: Operating lease right-of-use assets Right-of-use asset $ 74 $ 49 Current operating lease liabilities Accrued expenses 18 11 Noncurrent operating lease liabilities Operating lease liability 57 39 Finance leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 5 $ 6

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Dec. 28, 2024
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consists of the following: Facility Maturity Date December 28, 2024 September 28, 2024 Revolving credit facility November 2029 $ — $ — Term loan November 2031 785 — 7.250% First Priority Senior Secured Notes November 2031 800 — 4.75% First Priority Senior Secured Notes October 2029 500 — Debt discounts, deferred fees and other (89) — Total long-term debt 1,996 — Current portion of long-term debt (8) — Long-term debt, less current portion $ 1,988 $ —

Financial Instruments and Fai_2

Financial Instruments and Fair Value Measurements (Tables)	3 Months Ended
	Dec. 28, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Derivatives and Location on Consolidated Balance Sheets	The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Balances on a gross basis are as follows: Derivative Instruments Hedge Designation Balance Sheet Location December 28, 2024 September 28, 2024 Cross-currency swaps Designated Other assets $ 10 $ —
Schedule of Income or (Loss) from Derivative Instruments	The effect of the Company’s derivative instruments on the Consolidated and Combined Statements of Operations is as follows: Quarterly Period Ended Derivative Instruments Statements of Income Location December 28, 2024 December 30, 2023 Cross-currency swaps Interest expense $ 2 $ —
Schedule of Assets Measured at Fair Value on Non-recurring Basis	Included in the following tables are the major categories of assets and their current carrying values, along with the impairment loss recognized on the fair value measurement for the period then ended: December 28, 2024 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 26 $ 26 $ — Goodwill — — 617 617 — Definite lived intangible assets — — 233 233 — Property, plant, and equipment — — 1,532 1,532 — Total $ — $ — $ 2,408 $ 2,408 $ — September 28, 2024 Level 1 Level 2 Level 3 Total Impairment Indefinite-lived trademarks $ — $ — $ 26 $ 26 $ — Goodwill — — 624 624 (171) Definite lived intangible assets — — 200 200 (1) Property, plant, and equipment — — 949 949 — Total $ — $ — $ 1,799 $ 1,799 $ (172)

Segment and Geographic Data (Ta

Segment and Geographic Data (Tables)	3 Months Ended
	Dec. 28, 2024
Segment Reporting [Abstract]
Schedule of Financial and Other Information by Segment	Selected information by reportable segment is presented in the following tables: Quarterly Period Ended December 28, 2024 December 30, 2023 Net Sales Americas $ 420 $ 348 Rest of World 282 171 Total net sales $ 702 $ 519 Operating income (loss) Americas $ (7) $ (3) Rest of World (15) (9) Total operating income (loss) $ (22) $ (12) Depreciation and amortization Americas $ 33 $ 30 Rest of World 20 14 Total depreciation and amortization $ 53 $ 44
Schedule of Selected Information by Geographical Region	Selected information by geographical region is presented in the following table: Quarterly Period Ended December 28, 2024 December 30, 2023 Net Sales United States and Canada $ 306 $ 224 Latin America 114 124 Rest of World 282 171 Total net sales $ 702 $ 519
Schedule of Selected Information by Product Line	Selected information by category is presented in the following tables: Quarterly Period Ended December 28, 2024 December 30, 2023 Net Sales Personal Care 53 % 64 % Consumer Solutions 47 % 36 %

Basic and Diluted Net Income _2

Basic and Diluted Net Income (Loss) Per Share (Tables)	3 Months Ended
	Dec. 28, 2024
Earnings Per Share [Abstract]
Schedule of Details of Basic and Diluted Earnings Per Share (EPS)	The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations: Quarterly Period Ended (in millions, except share amounts) December 28, 2024 December 30, 2023 Numerator Consolidated net income (loss) $ (60) $ (8) Denominator Weighted average common shares outstanding - basic and dilutive 35.4 31.8

Basis of Presentation (Details)

Basis of Presentation (Details)	Nov. 04, 2024
Magnera Corporation | Treasure Shareholders
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest	90%
Magnera Corporation | Glatfelter Shareholders
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest	10%
Treasure Holdco, Inc. | Berry Global Group, Inc.
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest	0%

Acquisition - Schedule of Recog

Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - GLT Acquisition - Berry Global Group, Inc. $ in Millions	Nov. 04, 2024 USD ($)
Asset Acquisition [Line Items]
Fair value of GLT common stock concurrent with closing	$ 74
Identifiable assets acquired and liabilities assumed
Cash	37
Working capital	259
Property, plant and equipment	637
Identifiable intangible assets	51
Other assets	81
Other long-term liabilities	(131)
Debt	(869)
Goodwill	9
Total consideration	74
Inventory step up	$ 12

Acquisition - Narrative (Detail

Acquisition - Narrative (Details) - GLT Acquisition - Berry Global Group, Inc. - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Asset Acquisition [Line Items]
Business acquisition, pro forma net sales	$ 814	$ 839
Business acquisition, pro forma loss	$ 79	$ 35

Transaction and Other Activit_3

Transaction and Other Activities - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Restructuring Cost And Reserve [Line Items]
Charges	$ 32	$ 10
Americas
Restructuring Cost And Reserve [Line Items]
Charges	20	3
Rest of World
Restructuring Cost And Reserve [Line Items]
Charges	$ 12	$ 7

Transaction and Other Activit_4

Transaction and Other Activities - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Restructuring Reserve [Roll Forward]
Balance at September 28, 2024	$ 8
Charges	32	$ 10
Cash payments	(32)
Balance at December 28, 2024	8
Employee Severance and Benefits
Restructuring Reserve [Roll Forward]
Balance at September 28, 2024	8
Charges	6
Cash payments	(6)
Balance at December 28, 2024	8
Transaction Activities
Restructuring Reserve [Roll Forward]
Balance at September 28, 2024	0
Charges	18
Cash payments	(18)
Balance at December 28, 2024	0
Transaction bonuses	17
Other Activities
Restructuring Reserve [Roll Forward]
Balance at September 28, 2024	0
Charges	8
Cash payments	(8)
Balance at December 28, 2024	$ 0

Leases (Details)

Leases (Details) - USD ($) $ in Millions	Dec. 28, 2024	Sep. 28, 2024
Operating leases:
Operating lease right-of-use assets	$ 74	$ 49
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses	Accrued expenses
Current operating lease liabilities	$ 18	$ 11
Noncurrent operating lease liabilities	$ 57	$ 39
Finance leases:
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment	Property, plant and equipment
Finance lease right-of-use assets	$ 5	$ 6

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions	Dec. 28, 2024	Nov. 04, 2024	Sep. 28, 2024
Debt Instrument [Line Items]
Debt discounts, deferred fees and other	$ (89)		$ 0
Total long-term debt	1,996		0
Current portion of long-term debt	(8)		0
Long-term debt, less current portion	1,988		0
Revolving credit facility | Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	0		0
Term loan | Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	785		0
7.250% First Priority Senior Secured Notes | Senior Notes
Debt Instrument [Line Items]
Interest rate on debt (as a percent)		7.25%
Long-term debt, gross	$ 800		0
4.75% First Priority Senior Secured Notes | Senior Notes
Debt Instrument [Line Items]
Interest rate on debt (as a percent)	4.75%
Long-term debt, gross	$ 500		$ 0

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($) $ in Millions	Dec. 28, 2024	Nov. 04, 2024
Term loan | Line of Credit
Debt Instrument [Line Items]
Debt instrument		$ 785
7.250% First Priority Senior Secured Notes | Senior Notes
Debt Instrument [Line Items]
Debt instrument		$ 800
Interest rate on debt (as a percent)		7.25%
Revolving credit facility | Line of Credit
Debt Instrument [Line Items]
Debt instrument		$ 350
4.75% First Priority Senior Secured Notes | Senior Notes
Debt Instrument [Line Items]
Interest rate on debt (as a percent)	4.75%

Financial Instruments and Fai_3

Financial Instruments and Fair Value Measurements - Narrative (Details) - 3 months ended Dec. 28, 2024 € in Millions, $ in Millions	USD ($)	EUR (€)	USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment charges | $	$ 172
Fair value of long-term indebtedness greater/(less) than book value | $			$ 73
Cross-Currency Swap Maturing November 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative notional amount | €		€ 200
Cross-Currency Swap Maturing November 2029
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative notional amount | €		€ 375

Financial Instruments and Fai_4

Financial Instruments and Fair Value Measurements - Schedule of Fair Value of Derivatives and Location on Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Dec. 28, 2024	Sep. 28, 2024
Currency Swap | Designated as Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of derivative instruments	$ 10	$ 0

Financial Instruments and Fai_5

Financial Instruments and Fair Value Measurements - Schedule of Income or (Loss) from Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Currency Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest expense	$ 2	$ 0

Financial Instruments and Fai_6

Financial Instruments and Fair Value Measurements - Schedule of Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 28, 2024	Sep. 28, 2024
Impairment
Total	$ (172)
Fair Value, Nonrecurring
Assets, Fair Value Disclosure [Abstract]
Indefinite-lived trademarks	26	$ 26
Goodwill	617	624
Definite lived intangible assets	233	200
Property, plant, and equipment	1,532	949
Total	2,408	1,799
Impairment
Indefinite-lived trademarks	0	0
Goodwill	0	(171)
Definite lived intangible assets	0	(1)
Property, plant, and equipment	0	0
Total	0	(172)
Level 1 | Fair Value, Nonrecurring
Assets, Fair Value Disclosure [Abstract]
Indefinite-lived trademarks	0	0
Goodwill	0	0
Definite lived intangible assets	0	0
Property, plant, and equipment	0	0
Total	0	0
Level 2 | Fair Value, Nonrecurring
Assets, Fair Value Disclosure [Abstract]
Indefinite-lived trademarks	0	0
Goodwill	0	0
Definite lived intangible assets	0	0
Property, plant, and equipment	0	0
Total	0	0
Level 3 | Fair Value, Nonrecurring
Assets, Fair Value Disclosure [Abstract]
Indefinite-lived trademarks	26	26
Goodwill	617	624
Definite lived intangible assets	233	200
Property, plant, and equipment	1,532	949
Total	$ 2,408	$ 1,799

Segment and Geographic Data - N

Segment and Geographic Data - Narrative (Details)	3 Months Ended
	Dec. 28, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	2
Number of operating segments	2

Segment and Geographic Data - S

Segment and Geographic Data - Schedule of Financial and Other Information by Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Segment Reporting Information [Line Items]
Net sales	$ 702	$ 519
Operating income (loss)	(22)	(12)
Depreciation and amortization	53	44
Americas
Segment Reporting Information [Line Items]
Net sales	420	348
Operating income (loss)	(7)	(3)
Depreciation and amortization	33	30
Rest of World
Segment Reporting Information [Line Items]
Net sales	282	171
Operating income (loss)	(15)	(9)
Depreciation and amortization	$ 20	$ 14

Segment and Geographic Data -_2

Segment and Geographic Data - Schedule of Selected Information by Geographical Region (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Segment Reporting Information [Line Items]
Net sales	$ 702	$ 519
United States and Canada
Segment Reporting Information [Line Items]
Net sales	306	224
Latin America
Segment Reporting Information [Line Items]
Net sales	114	124
Rest of World
Segment Reporting Information [Line Items]
Net sales	$ 282	$ 171

Segment and Geographic Data -_3

Segment and Geographic Data - Schedule of Selected Information by Product Line (Details) - Product Concentration Risk - Revenue Benchmark	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Personal Care
Segment Reporting Information [Line Items]
Concentration risk percentage	53%	64%
Consumer Solutions
Segment Reporting Information [Line Items]
Concentration risk percentage	47%	36%

Contingencies and Commitments (

Contingencies and Commitments (Details) $ in Millions	3 Months Ended
	Dec. 28, 2024 USD ($)	Dec. 30, 2023 USD ($)
Loss Contingencies [Line Items]
Agreement term for environmental remediation (in years)	30 years
Accrual for environmental loss contingencies	$ 14
Escrow asset	$ 9
Previous Acquisition
Loss Contingencies [Line Items]
Deferred consideration accretion rate	0.095
Deferred consideration	$ 48	$ 55

Basic and Diluted Net Income _3

Basic and Diluted Net Income (Loss) Per Share (Details) $ in Millions	3 Months Ended
	Dec. 28, 2024 USD ($) shares	Dec. 30, 2023 USD ($) shares	Nov. 04, 2024
Numerator
Consolidated net income (loss) | $	$ (60)	$ (8)
Denominator
Weighted average common shares outstanding - basic (in shares)	35,400,000	31,800,000
Weighted average common shares outstanding - diluted (in shares)	35,400,000	31,800,000
Percent of shares outstanding allocated			0.90
Potential common shares (in shares)	1,100,000

Corporate Expense Allocation (D

Corporate Expense Allocation (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Corporate Expense Allocations [Line Items]
Corporate expense allocation	$ 3	$ 4
Minimum
Corporate Expense Allocations [Line Items]
Estimated corporate expenses on standalone basis	17
Maximum
Corporate Expense Allocations [Line Items]
Estimated corporate expenses on standalone basis	22
Treasure Holdco, Inc.
Corporate Expense Allocations [Line Items]
Corporate expense allocation	$ 3	$ 4

Subsequent Events (Details)

Subsequent Events (Details) € in Millions, $ in Millions	1 Months Ended
	Jan. 31, 2025 USD ($)	Jan. 31, 2025 EUR (€)	Dec. 28, 2024 EUR (€)
Currency Swap | Subsequent Event
Subsequent Event [Line Items]
Cash received on hedge | $	$ 22
Cross-Currency Swap Maturing November 2027
Subsequent Event [Line Items]
Derivative notional amount			€ 200
Cross-Currency Swap Maturing November 2027 | Subsequent Event
Subsequent Event [Line Items]
Derivative notional amount		€ 250
Cross-Currency Swap Maturing November 2029
Subsequent Event [Line Items]
Derivative notional amount			€ 375
Cross-Currency Swap Maturing November 2029 | Subsequent Event
Subsequent Event [Line Items]
Derivative notional amount		€ 425