Cover
Cover - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Dec. 13, 2022 | Apr. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2022 | ||
Current Fiscal Year End Date | --10-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-00566 | ||
Entity Registrant Name | GREIF, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 31-4388903 | ||
Entity Address, Address Line One | 425 Winter Road | ||
Entity Address, City or Town | Delaware | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43015 | ||
City Area Code | 740 | ||
Local Phone Number | 549-6000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | 1. The Registrant’s Definitive Proxy Statement for use in connection with the Annual Meeting of Stockholders to be held on February 28, 2023 (the “2023 Proxy Statement”), portions of which are incorporated by reference into Parts II and III of this Form 10-K. The 2023 Proxy Statement will be filed within 120 days of October 31, 2022. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000043920 | ||
Class A common stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock | ||
Trading Symbol | GEF | ||
Security Exchange Name | NYSE | ||
Entity Public Float | $ 1,551,319,317 | ||
Entity Common Stock, Shares Outstanding | 25,606,287 | ||
Class B common stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class B Common Stock | ||
Trading Symbol | GEF-B | ||
Security Exchange Name | NYSE | ||
Entity Public Float | $ 1,077,550,928 | ||
Entity Common Stock, Shares Outstanding | 21,737,151 |
Audit Information
Audit Information | 12 Months Ended |
Oct. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Columbus, Ohio |
Auditor Firm ID | 34 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Net sales | $ 6,349.5 | $ 5,556.1 | $ 4,515 |
Costs of products sold | 5,064.1 | 4,463.1 | 3,600.3 |
Gross profit | 1,285.4 | 1,093 | 914.7 |
Selling, general and administrative expenses | 581 | 565.9 | 516 |
Restructuring charges | 13 | 23.1 | 38.7 |
Timberland gains, net | 0 | (95.7) | 0 |
Acquisition and integration related costs | 8.7 | 9.1 | 17 |
Non-cash asset impairment charges | 71 | 8.9 | 18.5 |
Gain on disposal of properties, plants and equipment, net | (8.1) | (3.7) | (19.2) |
(Gain) Loss on disposal of businesses, net | (1.4) | 0.2 | 38.8 |
Operating profit | 621.2 | 585.2 | 304.9 |
Interest expense, net | 61.2 | 92.7 | 115.8 |
Debt extinguishment charges | 25.4 | 0 | 0 |
Non-cash pension settlement charges | 0 | 9.1 | 0.3 |
Other expense, net | 8.9 | 4.8 | 2.7 |
Income before income tax expense and equity earnings of unconsolidated affiliates, net | 525.7 | 478.6 | 186.1 |
Income tax expense | 137.1 | 69.6 | 63.3 |
Equity earnings of unconsolidated affiliates, net of tax | (5.4) | (4.2) | (1.5) |
Net income | 394 | 413.2 | 124.3 |
Net income attributable to noncontrolling interests | (17.3) | (22.5) | (15.5) |
Net income attributable to Greif, Inc. | $ 376.7 | $ 390.7 | $ 108.8 |
Class A common stock | |||
Basic earnings per share attributable to Greif, Inc. common shareholders: | |||
Basic earnings per share attributable to Greif, Inc. common shareholders (usd per share) | $ 6.36 | $ 6.57 | $ 1.83 |
Diluted earnings per share attributed to Greif, Inc. common shareholders: | |||
Diluted earnings per share attributable to Greif, Inc. common shareholders (usd per share) | 6.30 | 6.54 | 1.83 |
Class B common stock | |||
Basic earnings per share attributable to Greif, Inc. common shareholders: | |||
Basic earnings per share attributable to Greif, Inc. common shareholders (usd per share) | 9.53 | 9.84 | 2.74 |
Diluted earnings per share attributed to Greif, Inc. common shareholders: | |||
Diluted earnings per share attributable to Greif, Inc. common shareholders (usd per share) | $ 9.53 | $ 9.84 | $ 2.74 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 394 | $ 413.2 | $ 124.3 | |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | [1] | (27.9) | (1.6) | (9.8) |
Derivative financial instruments | 76.4 | 21.1 | (12) | |
Minimum pension liabilities | (1.1) | 50.4 | 15.1 | |
Other comprehensive income (loss), net of tax | 47.4 | 69.9 | (6.7) | |
Comprehensive income | 441.4 | 483.1 | 117.6 | |
Comprehensive income attributable to noncontrolling interests | 10.5 | 21.4 | 2.6 | |
Comprehensive income attributable to Greif, Inc. | $ 430.9 | $ 461.7 | $ 115 | |
[1]Year ended October 31, 2022 amount includes $113.1 million release of foreign currency translation from business divestment. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Millions | 12 Months Ended |
Oct. 31, 2022 USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Foreign currency translation released from business divestment | $ 113.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 147.1 | $ 124.6 |
Trade accounts receivable, net of allowance | 749.1 | 889.5 |
Inventories: | ||
Raw materials | 316 | 390.7 |
Work-in-process | 0 | 1.5 |
Finished goods | 87.3 | 107 |
Assets held for sale | 1.3 | 6.9 |
Prepaid expenses | 57.3 | 54 |
Other current assets | 141.3 | 89.9 |
Total current assets | 1,499.4 | 1,664.1 |
Long-term assets | ||
Goodwill | 1,464.5 | 1,515.4 |
Other intangible assets, net of amortization | 576.2 | 648.4 |
Deferred tax assets | 10.1 | 16.3 |
Pension assets | 30.8 | 39.9 |
Operating lease assets | 254.7 | 289.4 |
Other long-term assets | 179.2 | 121.1 |
Total long-term assets | 2,515.5 | 2,630.5 |
Properties, plants and equipment | ||
Timber properties, net of depletion | 226.8 | 224.6 |
Land | 154.8 | 161.9 |
Buildings | 515.1 | 543.8 |
Machinery and equipment | 1,968.3 | 2,042.3 |
Capital projects in progress | 182.9 | 137.2 |
Properties, plants and equipment, gross | 3,047.9 | 3,109.8 |
Accumulated depreciation | (1,592.9) | (1,588.6) |
Properties, plants and equipment, net | 1,455 | 1,521.2 |
Total assets | 5,469.9 | 5,815.8 |
Current liabilities | ||
Accounts payable | 561.3 | 704.5 |
Accrued payroll and employee benefits | 174.4 | 160.3 |
Restructuring reserves | 12.3 | 20.3 |
Current portion of long-term debt | 71.1 | 120.3 |
Short-term borrowings | 5.7 | 50.5 |
Liabilities held for sale | 0 | 0.9 |
Current portion of operating lease liabilities | 48.9 | 54 |
Other current liabilities | 174.2 | 203.3 |
Total current liabilities | 1,047.9 | 1,314.1 |
Long-term liabilities | ||
Long-term debt | 1,839.3 | 2,054.8 |
Operating lease liabilities | 209.4 | 239.5 |
Deferred tax liabilities | 343.6 | 318 |
Pension liabilities | 58 | 78.3 |
Post-retirement benefit obligations | 7.2 | 11 |
Contingent liabilities and environmental reserves | 19 | 19.5 |
Long-term income tax payable | 25.6 | 27.8 |
Other long-term liabilities | 109.8 | 153.1 |
Total long-term liabilities | 2,611.9 | 2,902 |
Commitments and Contingencies (Note 10) | ||
Redeemable Noncontrolling Interests (Note 15) | 15.8 | 24.1 |
Equity | ||
Common stock, without par value | 173.5 | 179.3 |
Treasury stock, at cost | (205.1) | (134.1) |
Retained earnings | 2,095.2 | 1,825.6 |
Accumulated other comprehensive income (loss), net of tax: | ||
Foreign currency translation | (316.5) | (295.4) |
Derivative financial instruments | 72.8 | (3.6) |
Minimum pension liabilities | (58.6) | (57.5) |
Total Greif, Inc. shareholders’ equity | 1,761.3 | 1,514.3 |
Noncontrolling interests | 33 | 61.3 |
Total shareholders’ equity | 1,794.3 | 1,575.6 |
Total liabilities and shareholders’ equity | $ 5,469.9 | $ 5,815.8 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 394 | $ 413.2 | $ 124.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 216.6 | 234.4 | 242.5 |
Timberland gains, net | 0 | (95.7) | 0 |
Non-cash asset impairment charges | 71 | 8.9 | 18.5 |
Non-cash pension settlement charges | 0 | 9.1 | 0.3 |
Gain on disposal of properties, plants and equipment, net | (8.1) | (3.7) | (19.2) |
(Gain) loss on disposals of businesses, net | (1.4) | 0.2 | 38.8 |
Unrealized foreign exchange (gain) loss | (1.6) | 1 | (4.2) |
Deferred income tax expense (benefit) | 13.4 | (47.2) | 16.7 |
Debt extinguishment charges | 22.6 | 0 | 0 |
Non-cash lease expense | 35.7 | 40 | 57.4 |
Other, net | 0.8 | (2.4) | (3) |
Increase (decrease) in cash from changes in certain assets and liabilities: | |||
Trade accounts receivable | 25.1 | (247.5) | (9.1) |
Inventories | 6.1 | (205.6) | 27.1 |
Accounts payable | (40.5) | 230.4 | 38.1 |
Restructuring reserves | (6.6) | (1.4) | 10.2 |
Operating leases | (36.9) | (43.5) | (56.8) |
Pension and post-retirement benefit liabilities | (24.7) | (11.5) | (13.3) |
Other, net | (8) | 117.3 | (13.6) |
Net cash provided by operating activities | 657.5 | 396 | 454.7 |
Cash flows from investing activities: | |||
Purchases of properties, plants and equipment | (176.3) | (140.7) | (131.4) |
Purchases of and investments in timber properties | (6.7) | (6.6) | (5.4) |
Proceeds from the sale of properties, plants, equipment and other assets | 20.3 | 16.2 | 33.4 |
Proceeds from the sale of businesses | 139.2 | 2.7 | 80.9 |
Proceeds on timberlands | 0 | 145.1 | 0 |
Collections on receivables held in special purpose entities | 0 | 50.9 | 0 |
Payments for issuance of loans receivable | 0 | (15) | 0 |
Other | (4.7) | (5.8) | (2.7) |
Net cash (used in) provided by investing activities | (28.2) | 46.8 | (25.2) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 3,915.8 | 1,806.4 | 1,319.9 |
Payments on long-term debt | (4,105.2) | (2,176.4) | (1,578.4) |
Proceeds on short-term borrowings, net | (36.3) | 21.1 | 17 |
Proceeds from trade accounts receivable credit facility | 301.9 | 106 | 76.8 |
Payments on trade accounts receivable credit facility | (365.3) | (23.1) | (122.9) |
Payments for liabilities held in special purpose entities | 0 | (43.3) | 0 |
Dividends paid to Greif, Inc. shareholders | (111.3) | (105.8) | (104.3) |
Dividends paid to noncontrolling interests | (17.2) | (7.8) | (13.4) |
Payments for debt extinguishment and issuance costs | (20.8) | 0 | 0 |
Payments for share repurchases | (71.1) | 0 | 0 |
Forward contract for accelerated share repurchases | (15) | 0 | 0 |
Purchases of redeemable noncontrolling interest | (6.5) | 0 | 0 |
Net cash used in financing activities | (531) | (422.9) | (405.3) |
Reclassification of cash to assets held for sale | 0 | 0.5 | 0 |
Effects of exchange rates on cash | (75.8) | (1.7) | 4.4 |
Net increase in cash and cash equivalents | 22.5 | 18.7 | 28.6 |
Cash and cash equivalents at beginning of year | 124.6 | 105.9 | 77.3 |
Cash and cash equivalents at end of year | 147.1 | 124.6 | 105.9 |
Non-cash transactions: | |||
Capital expenditures included in accounts payable | 24.4 | 38.7 | 17.2 |
Schedule of interest and income taxes paid: | |||
Cash payments for interest expense | 70.3 | 104.5 | 119.9 |
Cash payments for taxes | $ 157 | $ 54.7 | $ 65.1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Executive Officer | Director | Class A common stock | Class B common stock | Greif, Inc. Equity | Greif, Inc. Equity Executive Officer | Greif, Inc. Equity Director | Capital Stock | Capital Stock Executive Officer | Capital Stock Director | Treasury Stock | Treasury Stock Executive Officer | Treasury Stock Director | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non controlling Interests | |
Beginning balance (shares) at Oct. 31, 2019 | 48,266,000 | |||||||||||||||||
Beginning balance, treasury stock (shares) at Oct. 31, 2019 | 28,576,000 | |||||||||||||||||
Beginning balance, value at Oct. 31, 2019 | $ 1,191.1 | $ 1,133.1 | $ 162.6 | $ (134.8) | $ 1,539 | $ (433.7) | $ 58 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | 124.3 | 108.8 | 108.8 | 15.5 | ||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||
Foreign currency translation | (9.8) | [1] | 3.1 | 3.1 | (12.9) | |||||||||||||
Derivative financial instruments, net of income tax expense (benefit) | (12) | (12) | (12) | |||||||||||||||
Minimum pension liability adjustment, net of income tax expense (benefit) | 15.1 | 15.1 | 15.1 | |||||||||||||||
Comprehensive income | 117.6 | 115 | ||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest and other | 0.4 | 0.4 | 0.4 | |||||||||||||||
Net income allocated to redeemable noncontrolling interests | (0.1) | (0.1) | ||||||||||||||||
Dividends paid to Greif, Inc., | (104.3) | (104.3) | (104.3) | |||||||||||||||
Dividends paid to noncontrolling interests and other | (12) | (12) | ||||||||||||||||
Long-term incentive shares issued (shares) | 153,000 | (153,000) | ||||||||||||||||
Long-term incentive shares issued | 5.3 | 5.3 | $ 5 | $ 0.3 | ||||||||||||||
Share based compensation | 1.5 | 1.5 | $ 1.5 | |||||||||||||||
Restricted stock executives and directors (shares) | 3,000 | 28,000 | (3,000) | (28,000) | ||||||||||||||
Restricted stock executives and directors | $ 0.1 | $ 1.1 | $ 0.1 | $ 1.1 | $ 0.1 | $ 1 | $ 0.1 | |||||||||||
Ending balance (shares) at Oct. 31, 2020 | 48,450,000 | |||||||||||||||||
Ending balance, treasury stock (shares) at Oct. 31, 2020 | 28,392,000 | |||||||||||||||||
Ending balance, value at Oct. 31, 2020 | 1,200.7 | 1,152.2 | $ 170.2 | $ (134.4) | 1,543.9 | (427.5) | 48.5 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | 413.2 | 390.7 | 390.7 | 22.5 | ||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||
Foreign currency translation | (1.6) | [1] | (0.5) | (0.5) | (1.1) | |||||||||||||
Derivative financial instruments, net of income tax expense (benefit) | 21.1 | 21.1 | 21.1 | |||||||||||||||
Minimum pension liability adjustment, net of income tax expense (benefit) | 50.4 | 50.4 | 50.4 | |||||||||||||||
Comprehensive income | 483.1 | 461.7 | ||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest and other | (2.6) | (2.6) | (2.6) | |||||||||||||||
Net income allocated to redeemable noncontrolling interests | (2.4) | (2.4) | ||||||||||||||||
Dividends paid to Greif, Inc., | (105.8) | (105.8) | (105.8) | |||||||||||||||
Dividends paid to noncontrolling interests and other | (6.2) | (6.2) | ||||||||||||||||
Dividends earned on RSU shares | (0.6) | (0.6) | (0.6) | |||||||||||||||
Long-term incentive shares issued (shares) | 80,000 | (80,000) | ||||||||||||||||
Long-term incentive shares issued | 4.1 | 4.1 | $ 3.9 | $ 0.2 | ||||||||||||||
Share based compensation | 3.9 | 3.9 | $ 3.9 | |||||||||||||||
Restricted stock executives and directors (shares) | 3,000 | 26,000 | (3,000) | (26,000) | ||||||||||||||
Restricted stock executives and directors | 0.1 | 1.3 | 0.1 | 1.3 | $ 0.1 | $ 1.2 | $ 0.1 | |||||||||||
Ending balance (shares) at Oct. 31, 2021 | 26,550,924 | 22,007,725 | 48,559,000 | |||||||||||||||
Ending balance, treasury stock (shares) at Oct. 31, 2021 | 28,283,000 | |||||||||||||||||
Ending balance, value at Oct. 31, 2021 | 1,575.6 | 1,514.3 | $ 179.3 | $ (134.1) | 1,825.6 | (356.5) | 61.3 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | 394 | 376.7 | 376.7 | 17.3 | ||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||
Foreign currency translation | (27.9) | [1] | (21.1) | (21.1) | (6.8) | |||||||||||||
Derivative financial instruments, net of income tax expense (benefit) | 76.4 | 76.4 | 76.4 | |||||||||||||||
Minimum pension liability adjustment, net of income tax expense (benefit) | (1.1) | (1.1) | (1.1) | |||||||||||||||
Comprehensive income | 441.4 | 430.9 | ||||||||||||||||
Divestment of noncontrolling interest | (23.3) | (23.3) | ||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest and other | 5.5 | 5.5 | 5.5 | |||||||||||||||
Net income allocated to redeemable noncontrolling interests | (0.1) | (0.1) | ||||||||||||||||
Dividends paid to Greif, Inc., | (111.3) | (111.3) | (111.3) | |||||||||||||||
Dividends paid to noncontrolling interests and other | (15.4) | (15.4) | ||||||||||||||||
Dividends earned on RSU shares | $ (1.3) | (1.3) | (1.3) | |||||||||||||||
Share repurchases (shares) | (170,980) | (1,192,000) | 1,192,000 | |||||||||||||||
Share repurchases | $ (86.1) | (86.1) | $ (15) | $ (71.1) | ||||||||||||||
Long-term incentive shares issued (shares) | 51,000 | (51,000) | ||||||||||||||||
Long-term incentive shares issued | 3.1 | 3.1 | $ 3 | $ 0.1 | ||||||||||||||
Share based compensation | 4.9 | 4.9 | $ 4.9 | |||||||||||||||
Restricted stock executives and directors (shares) | 3,000 | 22,000 | (3,000) | (22,000) | ||||||||||||||
Restricted stock executives and directors | $ 0.1 | $ 1.2 | $ 0.1 | $ 1.2 | $ 0.1 | $ 1.2 | $ 0 | $ 0 | ||||||||||
Ending balance (shares) at Oct. 31, 2022 | 25,606,287 | 21,836,745 | 47,443,000 | |||||||||||||||
Ending balance, treasury stock (shares) at Oct. 31, 2022 | 29,399,000 | |||||||||||||||||
Ending balance, value at Oct. 31, 2022 | $ 1,794.3 | $ 1,761.3 | $ 173.5 | $ (205.1) | $ 2,095.2 | $ (302.3) | $ 33 | |||||||||||
[1]Year ended October 31, 2022 amount includes $113.1 million release of foreign currency translation from business divestment. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Foreign currency translation released from business divestment | $ 113.1 | ||
Derivative tax | (25.2) | $ (7) | $ 4 |
Defined benefit plan, tax | $ (5.4) | $ (15.8) | $ (4.8) |
Class A common stock | |||
Dividend paid (usd per share) | $ 1.88 | $ 1.78 | $ 1.76 |
Class B common stock | |||
Dividend paid (usd per share) | $ 2.81 | $ 2.66 | $ 2.63 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Business Greif, Inc. and its subsidiaries (collectively, “Greif,” “our,” or the “Company”), principally manufacture rigid industrial packaging products, such as steel, fibre and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and remanufactured and reconditioned industrial containers, and provides services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Company produces and sells containerboard, corrugated sheets, corrugated containers, and other corrugated products to customers in North America in industries such as packaging, automotive, food and building products. The Company also produces and sells coated recycled paperboard and uncoated recycled paperboard, some of which are used to produce and sell industrial products (tubes and cores, construction products, and protective packaging). In addition, the Company also purchases and sells recycled fiber and produces and sells adhesives used in the Company's paperboard products. In addition, the Company owns timber properties in the southeastern United States which are actively harvested and regenerated. The Company has operations in over 35 countries. Due to the variety of its products, the Company has many customers buying different products and due to the scope of the Company’s sales, no one customer is considered principal in the total operations of the Company. The Company supplies a cross section of industries, such as chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agriculture, pharmaceuticals, minerals, packaging, automotive and building products, and makes spot deliveries on a day-to-day basis as its products are required by its customers. The Company does not operate on a backlog to any significant extent and maintains only limited levels of finished goods. Many customers place their orders weekly for delivery during the same week. The Company’s raw materials are principally steel, resin, containerboard, old corrugated containers, pulpwood, recycled coated and uncoated paperboard and used industrial packaging for reconditioning. There were approximately 12,000 full time employees of the Company as of October 31, 2022. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and majority-owned subsidiaries, joint ventures controlled by the Company or for which the Company is the primary beneficiary and equity earnings of unconsolidated affiliates. All intercompany transactions and balances have been eliminated in consolidation. Investments in unconsolidated affiliates are accounted for using the equity method based on the Company’s ownership interest in the unconsolidated affiliate. The Company’s consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain prior year amounts have been reclassified to conform to the current year presentation. The Company’s fiscal year begins on November 1 and ends on October 31 of the following year. Any references to years or to any quarter of those years, relates to the fiscal year or quarter, as the case may be, ended in that year, unless otherwise stated. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Though actual amounts could significantly or materially differ from estimates, the most significant estimates are related to: • Expected useful lives assigned to properties, plants and equipment; • Goodwill and other intangible assets; • Estimates of fair value; • Environmental liabilities; • Pension and post-retirement benefits, including plan assets; • Income taxes; • Net assets held for sale; and • Contingencies. Cash and Cash Equivalents The Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value. Allowance for Doubtful Accounts The allowance for doubtful accounts totaled $6.1 million and $6.1 million as of October 31, 2022 and 2021, respectively. The Company recognizes allowances for bad debts based on the length of time receivables are past due with allowance percentages, based on its historical experiences, applied on a graduated scale relative to the age of the receivable amounts. If the Company is aware of a specific customer's inability to meet its financial obligations to the Company, the Company records a specific allowance for bad debts. Amounts deemed uncollectible are written-off against the allowance for doubtful accounts. Concentration of Credit Risk and Major Customers The Company maintains cash depository accounts with banks throughout the world and invests in high quality short-term liquid instruments. Such investments are made only in instruments issued by high quality institutions and mature within three months. The Company did not incur any losses related to these investments during the years ended October 31, 2022, 2021, and 2020. Trade receivables can be potentially exposed to a concentration of credit risk with customers or in particular industries. Such credit risk is considered by management to be limited due to the Company’s many customers, none of which are considered principal in the total operations of the Company, and its geographic scope of operations in a variety of industries throughout the world. The Company does not have an individual customer that exceeds 10 percent of total revenue. In addition, the Company performs ongoing credit evaluations of its customers’ financial conditions and maintains reserves for credit losses. Such losses historically have been within management’s expectations. Inventory The Company primarily uses the FIFO method of inventory valuation. Reserves for slow moving and obsolete inventories are provided based on historical experience, inventory aging and product demand. The Company continuously evaluates the adequacy of these reserves and adjusts these reserves as required. Net Assets Held for Sale Net assets held for sale represent land, buildings and other assets and liabilities for locations that have met the criteria of “held for sale” accounting, as specified by Accounting Standards Codification ("ASC") 360, “Property, Plant, and Equipment,” at the lower of carrying value or fair value less cost to sell. Fair value is based on the estimated proceeds from the sale of the assets utilizing recent purchase offers, market comparables and/or reliable third party data. The Company's estimate as to fair value is regularly reviewed and assets are subject to changes, such as in the commercial real estate markets and the Company's continuing evaluation as to the asset’s acceptable sale price. The net assets held for sale are being marketed for sale and it is the Company’s intention to complete the sales of these assets within the upcoming year, assuming offers deemed sufficient by management are received as result of marketing efforts. See Note 6 herein for additional information regarding assets and liabilities held for sale. Goodwill and Indefinite-Lived Intangibles Goodwill is the excess of the purchase price of an acquired entity over the amounts assigned to tangible and intangible assets and liabilities assumed in the business combination. The Company accounts for goodwill and purchased indefinite-lived intangible assets in accordance with ASC 350, “Intangibles – Goodwill and Other.” Under ASC 350, goodwill and purchased intangible assets with indefinite lives are not amortized, but instead are tested for impairment at least annually. The Company tests for impairment of goodwill and indefinite-lived intangible assets as of August 1, or more frequently if certain indicators are present or changes in circumstances suggest that impairment may exist. In accordance with ASC 350, the Company has the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative test for goodwill impairment. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. The quantitative test for goodwill impairment is conducted at the reporting unit level by comparing the carrying value of each reporting unit to the estimated fair value of the unit. If the carrying value of a reporting unit exceeds its estimated fair value, then the goodwill of the reporting unit is impaired. Goodwill impairment is recognized as the amount that the carrying value exceeds the fair value; not to exceed the balance of goodwill attributable to the reporting unit. When a portion of a reporting unit is disposed of, goodwill is allocated to the gain or loss on that disposition based on the relative fair values of the portion of the reporting unit subject to disposition and the portion of the reporting unit that will be retained. The Company’s determinations of estimated fair value of the reporting units are based on both the market approach and a discounted cash flow analysis utilizing the income approach. Under the market approach, the principal inputs are market prices and valuation multiples for public companies engaged in businesses that are considered comparable to the reporting unit. Under the income approach, the principal inputs are the reporting unit’s cash-generating capabilities and the discount rate. The discount rates used in the income approach are based on a market participant’s weighted average cost of capital. The use of alternative estimates, including different peer groups or changes in the industry, or adjusting the discount rate, earnings before interest, taxes, depreciation, depletion and amortization forecasts or cash flow assumptions used could affect the estimated fair value of the reporting units and potentially result in goodwill impairment. Any identified impairment would result in an expense to the Company’s results of operations. See Note 2 herein for additional information regarding goodwill and other intangible assets. Other Intangibles The Company accounts for intangible assets in accordance with ASC 350. Definite lived intangible assets are amortized over their useful lives on a straight-line basis. The useful lives for definite lived intangible assets vary depending on the type of asset and the terms of contracts or the valuation performed. Amortization expense on intangible assets is recorded on the straight-line method over their useful lives as follows: Years Trade names 10-15 Customer relationships 5-23 Non-compete agreements 3-10 Other intangibles 7-15 Acquisitions From time to time, the Company acquires businesses and/or assets that augment and complement its operations. In accordance with ASC 805, “Business Combinations,” these acquisitions are accounted for under the purchase method of accounting. Under this method, the Company allocates the fair value of purchase consideration transferred to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the date of the acquisition. The excess purchase consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, is recorded as goodwill. The Company's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of income. Acquisition costs, such as legal and consulting fees, are expensed as incurred. The Company classifies costs incurred in connection with acquisitions and their integration as acquisition and integration related costs. These costs are expensed as incurred and consist primarily of transaction costs, legal and consulting fees, integration costs and changes in the fair value of contingent payments (earn-outs) and are recorded within Acquisition and Integration related Costs line item presented on the consolidated income statement. Acquisition transaction costs are incurred during the initial evaluation of a potential targeted acquisition and primarily relate to costs to analyze, negotiate and consummate the transaction as well as financial and legal due diligence activities. Post-acquisition integration activities are costs incurred to combine the operations of an acquired enterprise into the Company’s operations. The consolidated financial statements include the results of operations from these business combinations from the date of acquisition. Internal Use Software Internal use software is accounted for under ASC 985, “Software.” Internal use software is software that is acquired, internally developed or modified solely to meet the Company’s needs and for which, during the software’s development or modification, a plan does not exist to market the software externally. Costs incurred to develop the software during the application development stage and for upgrades and enhancements that provide additional functionality are capitalized and then amortized over a three-year period. Internal use software is capitalized as a component of machinery and equipment on the consolidated balance sheets. Long-Lived Assets Properties, plants and equipment are stated at cost. Depreciation on properties, plants and equipment is provided on the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 30 Machinery and equipment 10-15 Depreciation expense was $138.1 million, $164.6 million and $169.1 million in 2022, 2021 and 2020, respectively. Expenditures for repairs and maintenance are charged to expense as incurred. When properties are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and related allowance accounts. Gains or losses are credited or charged to income as incurred. The Company capitalizes interest on long-term fixed asset projects using a rate that approximates the weighted average cost of borrowing. For the years ended October 31, 2022, 2021 and 2020, the Company's capitalized interest costs were not material. The Company tests for impairment of properties, plants and equipment if certain indicators are present to suggest that impairment may exist. Long-lived assets are grouped together at the lowest level, generally at the plant level, for which identifiable cash flows are largely independent of cash flows of other groups of long-lived assets. As events warrant, the Company evaluates the recoverability of long-lived assets, other than goodwill and indefinite-lived intangible assets, by assessing whether the carrying value can be recovered over their remaining useful lives through the expected future undiscounted operating cash flows of the underlying business. Future decisions to change the Company's manufacturing processes, exit certain businesses, reduce excess capacity, temporarily idle facilities and close facilities could also result in material impairment losses. Any impairment loss that may be required is determined by comparing the carrying value of the assets to their estimated fair value. As of October 31, 2022, the Company's timber properties consisted of approximately 175,000 acres, all of which were located in the southeastern United States. The Company’s land costs are maintained by tract. Upon acquisition of a new timberland tract, the Company records separate amounts for land, merchantable timber and pre-merchantable timber allocated as a percentage of the values being purchased. The Company begins recording pre-merchantable timber costs at the time the site is prepared for planting. Costs capitalized during the establishment period include site preparation by aerial spray, costs of seedlings, including refrigeration rental and trucking, planting costs, herbaceous weed control, woody release and labor and machinery use. The Company does not capitalize interest costs in the process. Property taxes are expensed as incurred. New road construction costs are capitalized as land improvements and depreciated over a 10 to 20 year period. Road repairs and maintenance costs are expensed as incurred. Costs after establishment of the seedlings, including management costs, pre-commercial thinning costs and fertilization costs, are expensed as incurred. Once the timber becomes merchantable, the cost is transferred from the pre-merchantable timber category to the merchantable timber category in the depletion block. Merchantable timber costs are maintained by five product classes: pine sawtimber, pine chip-n-saw, pine pulpwood, hardwood sawtimber and hardwood pulpwood, within a depletion block, with each depletion block based upon a geographic district or subdistrict. Currently, the Company has five depletion blocks. These same depletion blocks are used for pre-merchantable timber costs. Each year, the Company estimates the volume of the Company’s merchantable timber for the five product classes by each depletion block and depletion costs recognized upon sales are calculated as volumes sold times the unit costs in the respective depletion block. For the years ended October 31, 2022, 2021 and 2020, the Company's depletion expense was not material. Contingencies Various lawsuits, claims and proceedings have been or may be instituted or asserted against the Company, including those pertaining to environmental, product liability and safety and health matters. While the amounts claimed may be substantial, the ultimate liability cannot currently be determined because of the considerable uncertainties that exist. All lawsuits, claims and proceedings are considered by the Company in establishing reserves for contingencies in accordance with ASC 450, “Contingencies.” In accordance with the provisions of ASC 450, the Company accrues for a litigation-related liability when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on currently available information known to the Company, the Company believes that its reserves for these litigation-related liabilities are reasonable and that the ultimate outcome of any pending matters is not likely to have a material effect on the Company’s financial position or results of operations. Environmental Cleanup Costs The Company accounts for environmental cleanup costs in accordance with ASC 410, “Asset Retirement and Environmental Obligations.” The Company expenses environmental expenditures related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. The Company determines its liability on a site-by-site basis and records a liability at the time when it is probable and can be reasonably estimated. The Company’s estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. Self-insurance The Company is self-insured for certain of the claims made under its employee medical and dental insurance programs. The Company had recorded liabilities totaling $7.9 million and $7.4 million for estimated costs related to outstanding claims as of October 31, 2022 and 2021, respectively. These costs include an estimate for expected settlements on pending claims, administrative fees and an estimate for claims incurred but not reported. These estimates are based on management’s assessment of outstanding claims, historical analyses and current payment trends. The Company recorded an estimate for the claims incurred, but not reported using an estimated lag period based upon historical information. The Company has certain deductibles applied to various insurance policies including general liability, product, vehicle and workers’ compensation. The Company maintains net liabilities totaling $24.7 million and $24.0 million for anticipated costs related to general liability, product, vehicle and workers’ compensation claims as of October 31, 2022 and 2021, respectively. These costs include an estimate for expected settlements on pending claims, defense costs and an estimate for claims incurred but not reported. These estimates are based on the Company’s assessment of its deductibles, outstanding claims, historical analysis, actuarial information and current payment trends. Income Taxes Income taxes are accounted for under ASC 740, “Income Taxes.” In accordance with ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as measured by enacted tax rates that are expected to be in effect in the periods when the deferred tax assets and liabilities are expected to be settled or realized. Valuation allowances are established when management believes it is more likely than not that some portion of the deferred tax assets will not be realized. The Company’s effective tax rate is impacted by the amount of income generated in each taxing jurisdiction, statutory tax rates and tax planning opportunities available to the Company in the various jurisdictions in which the Company operates. Significant judgment is required in determining the Company’s effective tax rate and in evaluating its tax positions. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company’s effective tax rate includes the impact of reserve provisions and changes to reserves on uncertain tax positions that are not more likely than not to be sustained upon examination as well as related interest and penalties. A number of years may elapse before a particular matter, for which the Company has established a reserve, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, the Company believes that its reserves reflect the probable outcome of known tax contingencies. Unfavorable settlement of any particular issue would require use of the Company’s cash. Favorable resolution would be recognized as a reduction to the Company’s effective tax rate in the period of resolution. Restructuring Charges The Company accounts for all exit or disposal activities in accordance with ASC 420, “Exit or Disposal Cost Obligations.” Under ASC 420, a liability is measured at its fair value and recognized as incurred. For termination costs associated with employees who are involuntarily terminated under the terms of a one-time benefit arrangement, the Company recognizes liabilities and associated costs as of announcement date unless the employees are required to stay for a certain period of time after restructuring announcement and ratable recognition between the announcement date and termination date is materially different from announcement date recognition. For termination costs associated with a non-lease contract and costs incurred without economic benefit as a result of restructuring activities, the Company recognizes liabilities and associated costs as of contract termination date. Facility exit and employee relocation costs are recognized and measured at their respective fair value in the period in which the liability is incurred. The liability is not recognized before it is incurred, even if the costs are incremental to other operating costs and will be incurred as a direct result of a plan. Revenue Recognition Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for transferring goods or providing services. Customer payment terms are typically less than one year and as such, transaction prices are not adjusted for the effects of a significant financing component. Standalone selling prices for each performance obligation are generally stated in the contract. Variable consideration in the form of volume rebates is estimated based on contract terms and historical experience of actual results limited to the amount which is probable will not result in reversal of cumulative revenue recognized when the variable consideration is resolved. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. For the vast majority of revenues, contracts with customers are either a purchase order or the combination of a purchase order with a master supply agreement. A performance obligation is considered an individual unit sold. The Company does not bundle products. Prices negotiated with each individual customer are representative of the stand-alone selling price of the product. The Company typically satisfies the performance obligation at a point in time when control is transferred to customers. The point in time when control of goods is transferred is largely dependent on delivery terms. Contract liabilities relate primarily to prepayments received from the Company’s customers before revenue is recognized and from volume rebates to customers. These amounts are included in other current liabilities in the consolidated balance sheets. The Company does not have any material contract assets. Freight charged to customers is included in net sales in the statement of income. The Company's contracts with customers are broadly similar in nature throughout its reportable segments, but the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic factors. See Note 13 herein for additional disclosures of revenue disaggregated by geography for each reportable segment. Shipping and Handling Fees and Costs The Company includes shipping and handling fees and costs in cost of products sold. Other Expense, net Other expense, net primarily represents foreign currency transaction gains and losses, non-service cost components of net periodic post-retirement benefit costs and other infrequent non-operating items. Currency Translation In accordance with ASC 830, “Foreign Currency Matters,” the assets and liabilities denominated in a foreign currency are translated into United States dollars at the rate of exchange existing at period-end, and revenues and expenses are translated at average exchange rates. The cumulative translation adjustments, which represent the effects of translating assets and liabilities of the Company’s international operations, are presented in the consolidated statements of changes in shareholders’ equity in accumulated other comprehensive income (loss). Transaction gains and losses on foreign currency transactions denominated in a currency other than an entity’s functional currency are credited or charged to income. The amounts included in other expense, net related to foreign currency transaction losses were not material for the years ended October 31, 2022, 2021 and 2020. Derivative Financial Instruments In accordance with ASC 815, “Derivatives and Hedging,” the Company records all derivatives in the consolidated balance sheet as either assets or liabilities measured at fair value. Dependent on the designation of the derivative instrument, changes in fair value are recorded to earnings or shareholders’ equity through other comprehensive income (loss). The Company may from time to time use interest rate swap agreements to hedge against changing interest rates. For interest rate swap agreements designated as cash flow hedges, the net gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company's interest rate swap agreements effectively convert a portion of floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. The Company's cross currency interest rate swap agreements synthetically swap United States ("U.S.") dollar denominated fixed rate debt for Euro denominated fixed rate debt and are designated as either net investment hedges or cash flow hedges for accounting purposes. The gain or loss on the net investment hedge derivative instruments is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted, or liquidated. The gain or loss on the cash flow hedge derivative instruments is included in the unrealized foreign exchange component of other expense, offset by the underlying gain or loss on the underlying cash flows that are being hedged. Interest payments received from the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net on the consolidated statements of income. The Company enters into currency forward contracts to hedge certain currency transactions and short-term intercompany loan balances with its international businesses. Such contracts limit the Company’s exposure to both favorable and unfavorable currency fluctuations. These contracts are adjusted to reflect market value as of each balance sheet date, with the resulting changes in fair value being recognized in other expense, net. Any derivative contract that is either not designated as a hedge, or is so designated but is ineffective, has its changes to market value recognized in earnings immediately. If a cash flow or fair value hedge ceases to qualify for hedge accounting, the contract would continue to be carried on the balance sheet at fair value until settled and have the adjustments to the contract’s fair value recognized in earnings. If a forecasted transaction were no longer probable to occur, amounts previously deferred in accumulated other comprehensive income (loss) would be recognized immediately in earnings. Variable Interest Entities The Company evaluates whether an entity is a variable interest entity (“VIE”) and determines if the primary beneficiary status is appropriate on a quarterly basis. The Company consolidates VIEs for which it is the primary beneficiary. If the Company is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, the Company considers all relevant facts and circumstances, including: the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; the obligation to absorb the expected losses; and/or the right to receive the expected returns of the VIE. Fair Value The Company uses ASC 820, “Fair Value Measurements and Disclosures” to account for fair value. ASC 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about assets and liabilities measured at fair value. Additionally, this standard established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows: • Level 1 – Observable inputs such as unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2 – Observable |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the changes in the carrying amount of goodwill by reportable segment for the years ended October 31, 2022 and 2021: (in millions) Global Industrial Packaging (1) Paper Total Balance at October 31, 2020 $ 750.5 $ 767.9 $ 1,518.4 Goodwill allocated to divestitures and businesses held for sale (0.4) — (0.4) Goodwill adjustments (0.2) — (0.2) Currency translation (2.6) 0.2 (2.4) Balance at October 31, 2021 $ 747.3 $ 768.1 $ 1,515.4 Currency translation (50.7) (0.2) (50.9) Balance at October 31, 2022 $ 696.6 $ 767.9 $ 1,464.5 (1) Accumulated goodwill impairment loss was $63.3 million as of October 31, 2022, 2021 and 2020, related to the Global Industrial Packaging reportable segment. The Company reviews goodwill by reporting unit and indefinite-lived intangible assets for impairment as required by ASC 350, “Intangibles – Goodwill and Other,” either annually August 1, or whenever events and circumstances indicate impairment may have occurred. A reporting unit is the operating segment, or a business unit one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. The components are aggregated into reporting units for purposes of goodwill impairment testing to the extent they share similar qualitative and quantitative characteristics. The Company performed its annual goodwill impairment test as of August 1, 2022. The fair value of the Company's goodwill reporting units exceeded the carrying value, resulting in no impairment. Discount rates and revenue growth rates are the assumptions that are most sensitive and susceptible to change as they require significant management judgment. In addition, certain future events and circumstances, including deterioration of market conditions, higher cost of capital, a decline in actual and expected consumption and demand, could result in changes to these assumptions and judgments. A revision of these assumptions could cause the fair value of the reporting unit to fall below its respective carrying value. As for all of the Company's reporting units, if in future years, the reporting unit's actual results are not consistent with the Company's estimates and assumptions used to calculate fair value, the Company may be required to recognize material impairments to goodwill. The following table summarizes the carrying amount of net intangible assets by class as of October 31, 2022 and 2021: (in millions) Gross Accumulated Net Intangible October 31, 2022: Indefinite lived: Trademarks and patents $ 7.9 $ — $ 7.9 Definite lived: Customer relationships 834.5 270.0 564.5 Trademarks and patents 8.3 4.6 3.7 Non-compete agreements 0.4 0.4 — Other 0.3 0.2 0.1 Total $ 851.4 $ 275.2 $ 576.2 October 31, 2021: Indefinite lived: Trademarks and patents $ 13.4 $ — $ 13.4 Definite lived: Customer relationships 887.0 259.4 627.6 Trademarks and patents 27.3 20.8 6.5 Non-compete agreements 0.7 0.6 0.1 Other 1.8 1.0 0.8 Total $ 930.2 $ 281.8 $ 648.4 Gross intangible ass ets decreased by $78.8 million for the year ended October 31, 2022. The decrease was attributable to the write-off of $59.6 million fully-amortized assets, $11.6 million of currency fluctuations, $4.6 million impairment of indefinite lived intangibles and $3.0 million of asset disposals. Amortization expense was $58.2 million, $66.9 million and $69.1 million for the years ended October 31, 2022, 2021 and 2020, respectively. Amortization expense for the next five years is expected to be $55.4 million in 2023, $52.2 million in 2024, $50.2 million in 2025, $50.1 million in 2026 and $49.9 million in 2027. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Oct. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES The following is a reconciliation of the beginning and ending restructuring reserve balances for the years ended October 31, 2022 and 2021: (in millions) Employee Other Costs Total Balance at October 31, 2020 $ 17.9 $ 3.7 $ 21.6 Costs incurred and charged to expense 14.9 8.2 23.1 Costs paid or otherwise settled (14.2) (10.2) (24.4) Balance at October 31, 2021 $ 18.6 $ 1.7 $ 20.3 Costs incurred and charged to expense 6.3 6.7 13.0 Costs paid or otherwise settled (13.7) (7.3) (21.0) Balance at October 31, 2022 $ 11.2 $ 1.1 $ 12.3 The focus for restructuring activities in 2022 was to optimize and integrate operations in the Paper Packaging & Services reportable segment and to rationalize operations and close underperforming assets in the Global Industrial Packaging reportable segment. During the year ended October 31, 2022, the Company recorded restructuring charges of $13.0 million, as compared to $23.1 million of restructuring charges recorded during the year ended October 31, 2021. The restructuring activity for the year ended October 31, 2022 consisted of $6.3 million in employee separation costs and $6.7 million in other restructuring costs, primarily consisting of professional fees and other fees associated with restructuring activities. There were seventeen plants closed or divested in 2022, and a total of 132 employees severed throughout 2022 as part of the Company’s restructuring efforts. The focus for restructuring activities in 2021 was to optimize and integrate operations in the Paper Packaging & Services reportable segment and to rationalize operations and close underperforming assets in the Global Industrial Packaging reportable segment. During 2021, the Company recorded restructuring charges of $23.1 million, consisting of $14.9 million in employee separation costs and $8.2 million in other restructuring costs, primarily consisting of professional fees and other fees associated with restructuring activities. There were five plants closed or divested and a total of 177 employees severed throughout 2021 as part of the Company’s restructuring efforts. The focus for restructuring activities in 2020 was to optimize and integrate operations in the Paper Packaging & Services reportable segment related to the acquisition of Caraustar Industries, Inc. and its subsidiaries ("Caraustar") on February 11, 2019 (the “Caraustar Acquisition”), and continue to rationalize operations and close underperforming assets in the Global Industrial Packaging segments. During 2020, the Company recorded restructuring charges of $38.7 million, consisting of $26.4 million in employee separation costs and $12.3 million in other restructuring costs, primarily consisting of professional fees incurred for services specifically associated with employee separation and relocation. There were sixteen plants closed or divested and a total of 658 employees severed throughout 2020 as part of the Company’s restructuring efforts. The following is a reconciliation of the total amounts expected to be incurred from open restructuring plans or plans that are being formulated and have not been announced as of the filing date of this Form 10-K. Remaining amounts expected to be incurred were $7.4 million as of October 31, 2022: (in millions) Total Amounts Amounts Incurred During the year ended October 31, 2022 Amounts Global Industrial Packaging: Employee separation costs $ 8.4 $ 4.9 3.5 Other restructuring costs 5.9 4.2 1.7 14.3 9.1 5.2 Paper Packaging & Services: Employee separation costs 2.4 1.4 1.0 Other restructuring costs 3.7 2.5 1.2 6.1 3.9 2.2 Total $ 20.4 $ 13.0 $ 7.4 |
CONSOLIDATION OF VARIABLE INTER
CONSOLIDATION OF VARIABLE INTEREST ENTITIES | 12 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATION OF VARIABLE INTEREST ENTITIES | CONSOLIDATION OF VARIABLE INTEREST ENTITIES Flexible Packaging Joint Venture On September 29, 2010, Greif, Inc. and one of its indirect subsidiaries formed a joint venture (referred to herein as the “Flexible Packaging JV” or "FPS VIE") with Dabbagh Group Holding Company Limited and one of its subsidiaries, originally National Scientific Company Limited and later Gulf Refined Packaging for Industrial Packaging Company LTD ("GRP"). The Flexible Packaging JV owned the operations in the Company's flexible packaging business, which was included in Global Industrial Packaging reportable segment. The Flexible Packaging JV was consolidated into the operations of the Company from the date of its formation until the date of its divestiture, as described below. On January 3, 2022, the Company entered into a definitive agreement to divest its approximately 50 percent equity interest in the Flexible Packaging JV (the "FPS Divestiture"). On April 1, 2022, the Company completed the FPS Divestiture for $123.0 million. As a result of the FPS Divestiture, the Company received net cash proceeds of $131.6 million, including $24.4 million of cash and cash equivalents resulting from the deconsolidation of the Flexible Packaging JV. The FPS Divestiture resulted in a loss of $0.6 million on sale of business. The Flexible Packaging JV was deemed to be a VIE since the total equity investment at risk was not sufficient to permit the legal entity to finance its activities without additional subordinated financial support. The major factors that led to the conclusion that the Company was the primary beneficiary of this VIE was that (1) the Company had the power to direct the most significant activities due to its ability to direct the operating decisions of the FPS VIE, which power was derived from the significant CEO discretion over the operations of the FPS VIE combined with the Company's sole and exclusive right to appoint the CEO of the FPS VIE, and (2) the significant variable interest through the Company's equity interest in the FPS VIE. The economic and business purpose underlying the Flexible Packaging JV was to establish a global industrial flexible products enterprise through a series of targeted acquisitions and major investments in plant, machinery and equipment. All entities contributed to the Flexible Packaging JV were existing businesses acquired by an indirect subsidiary of the Company and that were reorganized under Greif Flexibles Asset Holding B.V. and Greif Flexibles Trading Holding B.V. (“Asset Co.” and “Trading Co.”), respectively. The Company had a 51 percent ownership in Trading Co. and a 49 percent ownership in Asset Co. However, the Company and GRP had equal economic interests in the Flexible Packaging JV, notwithstanding the actual ownership interests in the various legal entities. Paper Packaging Joint Venture On April 20, 2018, Greif, Inc. and one of its indirect subsidiaries formed a joint venture (referred to herein as the “Paper Packaging JV” or "PPS VIE") with a third party. The Paper Packaging JV has been consolidated into the operations of the Company since its formation date of April 20, 2018. The Paper Packaging JV is deemed to be a VIE as the equity investors at risk, as a group, lack the characteristics of a controlling financial interest. The structure of the Paper Packaging JV has governing provisions that are the functional equivalent of a limited partnership whereby the Company is the managing member that makes all the decisions related to the activities that most significantly affect the economic performance of the PPS VIE. In addition, the third party does not have any substantive kick-out rights or substantive participating rights in the Paper Packaging JV. The major factors that led to the conclusion that the Paper Packaging JV is a VIE was that all limited partnerships are considered to be VIE’s unless the limited partners have substantive kick-out rights or substantive participating rights. The following table presents the Paper Packaging JV total net assets: (in millions) October 31, 2022 October 31, Cash and cash equivalents $ 6.7 $ 5.9 Trade accounts receivable, less allowance of $0.0 in 2022 and $0.0 in 2021 7.0 9.4 Inventories 11.8 10.8 Properties, plants and equipment, net 27.8 31.1 Other assets — 0.5 Total assets $ 53.3 $ 57.7 Accounts payable 3.3 3.4 Other liabilities 2.4 1.7 Total liabilities $ 5.7 $ 5.1 Net (loss) income attributable to the noncontrolling interest in the Paper Packaging JV for the years ended October 31, 2022, 2021 and 2020 were $(0.4) million, $0.5 million and $(1.8) million, respectively. Non-United States Accounts Receivable VIE As further described in Note 5 of the Notes to Consolidated Financial Statements, Cooperage Receivables Finance B.V. is a party to the Nieuw Amsterdam Receivables Financing Agreement (the "European RFA"). Cooperage Receivables Finance B.V. is deemed to be a VIE since this entity is not able to satisfy its liabilities without the financial support from the Company. While this entity is a separate and distinct legal entity from the Company and no ownership interest in this entity is held by the Company, the Company is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE. As a result, Cooperage Receivables Finance B.V. has been consolidated into the operations of the Company. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt is summarized as follows: (in millions) October 31, 2022 October 31, 2021 2022 Credit Agreement - Term Loans $ 1,565.0 $ — 2019 Credit Agreement - Term Loans — 1,247.3 Senior Notes due 2027 — 495.9 Accounts receivable credit facilities 311.4 391.1 2022 Credit Agreement - Revolving Credit Facility 41.9 — 2019 Credit Agreement - Revolving Credit Facility — 50.5 Other debt 0.4 0.6 1,918.7 2,185.4 Less current portion 71.1 120.3 Less deferred financing costs 8.3 10.3 Long-term debt, net $ 1,839.3 $ 2,054.8 2022 Credit Agreement On March 1, 2022, the Company and certain of its subsidiaries entered into a second amended and restated senior secured credit agreement (the “2022 Credit Agreement”) with a syndicate of financial institutions. The 2022 Credit Agreement amended, restated and replaced in its entirety the Company's previous credit agreement, referred to as the "2019 Credit Agreement". The 2022 Credit Agreement provides for (a) an $800.0 million secured revolving credit facility, consisting of a $725.0 million multicurrency facility and a $75.0 million U.S. dollar facility, maturing on March 1, 2027, (b) a $1,100.0 million secured term loan A-1 facility with quarterly principal installments commencing on July 31, 2022 and continuing through January 31, 2027, with any outstanding principal balance of such term loan A-1 facility being due and payable on maturity on March 1, 2027, and (c) a $515.0 million secured term loan A-2 facility with quarterly principal installments commencing on July 31, 2022 and continuing through January 31, 2027, with any outstanding principal balance of such term loan A-2 being due and payable on maturity on March 1, 2027. The term loan A-2 facility reflects the combination of the outstanding balances of the secured term A-2 and A-3 loans under the 2019 Credit Agreement. The Company used the borrowings under the 2022 Credit Agreement on March 1, 2022, to redeem the $500.0 million of 6.5% Senior Notes due March 1, 2027 (the "Senior Notes due 2027"), and to repay and refinance all of the outstanding borrowings under the 2019 Credit Agreement, and will use the borrowings thereunder to fund ongoing working capital and capital expenditure needs and for general corporate purposes, including acquisitions, and to pay related fees and expenses. Interest is based on Secured Overnight Financing Rate ("SOFR") plus a credit spread adjustment, Euro Interbank Offer Rate ("EURIBOR") or a base rate that resets periodically plus, in each case, a calculated margin amount that is based on the Company's leverage ratio. Subject to the terms of the 2022 Credit Agreement, the Company has an option to borrow additional funds under the 2022 Credit Agreement with the agreement of the lenders. As of October 31, 2022, $1,606.9 million was outstanding under the 2022 Credit Agreement. The current portion was $71.1 million, and the long-term portion was $1,535.8 million. The weighted average interest rate for borrowings under the 2022 Credit Agreement was 2.39% for the year ended October 31, 2022. The actual interest rate for borrowings under the 2022 Credit Agreement was 4.98% as of October 31, 2022. The deferred financing costs associated with the term loan portion of the 2022 Credit Agreement totaled $8.3 million as of October 31, 2022 and are recorded as a reduction of long-term debt on the consolidated balance sheets. The deferred financing costs associated with the revolving portion of the 2022 Credit Agreement totaled $3.7 million as of October 31, 2022 and are recorded within other long-term assets on the consolidated balance sheets. As a result of the refinancing, $0.7 million of unamortized deferred financing costs related to the 2019 Credit Agreement, and $2.8 million of newly incurred financing costs related to the 2022 Credit Agreement, were expensed as debt extinguishment charges in the consolidated statements of income. Senior Notes due 2027 On March 1, 2022, the Company redeemed all of its outstanding Senior Notes due 2027, which were issued by the Company on February 11, 2019, for $500.0 million. The total redemption price for the Senior Notes due 2027 was $516.3 million, which was equal to the aggregate principal payment outstanding of $500.0 million plus a call premium of $16.3 million. The premium was recognized as a debt extinguishment charges on the consolidated statements of income. The payment of the redemption price was funded by borrowings under the 2022 Credit Agreement. As a result of redeeming the Senior Notes due 2027, $1.8 million of unamortized deferred financing costs and $3.8 million of unamortized discount were expensed as debt extinguishment charges on the consolidated statements of income. United States Trade Accounts Receivable Credit Facility On September 24, 2019, certain U.S. subsidiaries of Greif, Inc. amended and restated the existing receivables financing facility (the “U.S. Receivables Facility”). Greif Receivables Funding LLC (“Greif Funding”), Greif Packaging LLC (“Greif Packaging”), for itself and as servicer, and certain other U.S. subsidiaries of the Company entered into a Third Amended and Restated Transfer and Administration Agreement, dated as of September 24, 2019 (the “Third Amended TAA”), with Bank of America, N.A., as the agent, managing agent, administrator and committed investor, and various investor groups, managing agents, and administrators, from time to time parties thereto. On May 17, 2022, the Third Amended TAA was amended with a new maturity date of May 17, 2023 and provides an accounts receivables facility of $300.0 million. Greif Funding is a direct subsidiary of Greif Packaging and is included in the Company’s consolidated financial statements. However, because Greif Funding is a separate and distinct legal entity from the Company, the assets of Greif Funding are not available to satisfy the liabilities and obligations of the Company, Greif Packaging or other subsidiaries of the Company, and the liabilities of Greif Funding are not the liabilities or obligations of the Company or its other subsidiaries. The U.S. Receivables Facility is secured by certain trade accounts receivables related to the Global Industrial Packaging and the Paper Packaging & Services businesses of Greif Packaging and other subsidiaries of the Company in the United States and bears interest at a variable rate based on the London InterBank Offered Rate or an applicable base rate, plus a margin, or a commercial paper rate, all as provided in the Third Amended TAA. Interest is payable on a monthly basis and the principal balance is payable upon termination of the U.S. Receivables Facility. The $215.0 million outstanding balance under the U.S. Receivables Facility as of October 31, 2022 is reported as long-term debt in the consolidated balance sheets because the Company intends to refinance this obligation on a long-term basis and has the intent and ability to consummate a long-term refinancing. International Trade Accounts Receivable Credit Facilities On April 20, 2022, Cooperage Receivables Finance B.V. and Greif Services Belgium BV, an indirect wholly owned subsidiary of Greif, Inc., amended and restated the Nieuw Amsterdam Receivables Financing Agreement (the "European RFA") with affiliates of a major international bank. The amended and restated European RFA matures April 24, 2023. The European RFA provides an accounts receivable financing facility of up to €100.0 million ($99.6 million as of October 31, 2022) secured by certain European accounts receivable. The $96.4 million outstanding on the European RFA as of October 31, 2022 is reported as long-term debt on the consolidated balance sheets because the Company intends to refinance these obligations on a long-term basis and has the intent and ability to consummate a long-term refinancing. Short-Term Borrowings The Company had short-term borrowings of $5.7 million and $50.5 million as of October 31, 2022 and 2021, respectively. There are no financial covenants associated with this other debt. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Oct. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following table presents the fair value of those assets and (liabilities) measured on a recurring basis as of October 31, 2022 and 2021: October 31, 2022 Assets Liabilities (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives $ — $ 72.1 $ — $ 72.1 $ — $ (1.0) $ — $ (1.0) Foreign exchange hedges — — — — — (0.2) — (0.2) Insurance annuity — — 17.8 17.8 — — — — Cross currency swap — 46.8 — 46.8 — — — — October 31, 2021 Assets Liabilities (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives $ — $ 7.6 $ — $ 7.6 $ — $ (16.8) $ — $ (16.8) Foreign exchange hedges — 0.1 — 0.1 — (0.1) — (0.1) Insurance annuity — — 20.9 20.9 — — — — Cross currency swap — 10.2 — 10.2 — (1.2) — (1.2) The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts payable, current liabilities and short-term borrowings as of October 31, 2022 and 2021 approximate their fair values because of the short-term nature of these items and are not included in this table. Interest Rate Derivatives As of October 31, 2022, the Company has various interest rate swaps with a total notional amount of $1,150.0 million, maturing between March 11, 2024 and July 15, 2029. The Company will receive variable rate interest payments based upon one-month U.S. dollar SOFR, and in return the Company will be obligated to pay interest at a weighted average fixed interest rate of 2.50%. This effectively will convert the borrowing rate on an amount of debt equal to the notional amount of the interest rate swaps from a variable rate to a fixed rate. The Company is actively monitoring the interest rate market and will execute new interest rate swaps as appropriate. Subsequent to October 31, 2022, the Company entered into $100.0 million of additional interest rate swaps maturing March 1, 2028. These derivatives are designated as cash flow hedges for accounting purposes. Accordingly, the gain or loss on these derivative instruments are reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. See Note 14 herein for additional disclosures of the aggregate gain or loss included within other comprehensive income. The assumptions used in measuring fair value of these interest rate derivatives are considered level 2 inputs, which are based upon observable market rates, including SOFR and interest paid based upon a designated fixed rate over the life of the swap agreements. Losses reclassified to earnings under these contracts were $8.4 million, $18.1 million and $16.5 million for the year ended October 31, 2022, 2021 and 2020. A derivative gain of $26.1 million, based upon interest rates at October 31, 2022, is expected to be reclassified from accumulated other comprehensive income (loss) to earnings in the next twelve months. Foreign Exchange Hedges The Company conducts business in various international currencies and is subject to risks associated with changing foreign exchange rates. The Company’s objective is to reduce volatility associated with foreign exchange rate changes. Accordingly, the Company enters into various contracts that change in value as foreign exchange rates change to protect the value of certain existing foreign currency assets and liabilities, commitments and anticipated foreign currency cash flows. As of October 31, 2022, the Company had outstanding foreign currency forward contracts in the notional amount of $132.1 million ($81.8 million as of October 31, 2021). Adjustments to fair value are recognized in earnings, offsetting the impact of the hedged profits. The assumptions used in measuring fair value of foreign exchange hedges are considered level 2 inputs, which were based on observable market pricing for similar instruments, principally foreign exchange futures contracts. Realized gains (losses) recorded in other expense, net under fair value contracts were $(6.2) million, $0.4 million and $(3.2) million for the years ended October 31, 2022, 2021 and 2020, respectively. Unrealized net loss recognized by the Company in other expense, net was $0.2 million, zero and $0.1 million for the years ended October 31, 2022, 2021 and 2020, respectively. Cross Currency Swap As of October 31, 2022, the Company has various cross currency interest rate swaps that synthetically swap $334.4 million of fixed rate debt to Euro denominated fixed rate debt. The Company receives a weighted average rate of 1.56% on these swaps. These agreements are designated as either net investment hedges or cash flow hedges for accounting purposes and will mature between March 6, 2023 and October 5, 2026. The gain or loss on the net investment hedge derivative instruments is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted, or liquidated. See Note 14 herein for additional disclosure of the aggregate gain or loss included within other comprehensive income. The gain or loss on the cash flow hedge derivative instruments is included in the unrealized foreign exchange component of other expense, offset by the underlying gain or loss on the underlying cash flows that are being hedged. Interest payments received for the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net on the consolidated statements of income. The assumptions used in measuring fair value of the cross currency swap are considered level 2 inputs, which are based upon the Euro to United States dollar exchange rate market. For the years ended October 31, 2022, 2021 and 2020, gains recorded in interest expense, net under the cross currency swap agreements were $5.8 million, $2.2 million and $2.4 million, respectively. Other Financial Instruments The fair values of the Company’s 2022 Credit Agreement, the U.S. Receivables Facility and European RFA do not materially differ from carrying value as the Company’s cost of borrowing is variable and approximates current borrowing rates. The fair values of the Company’s long-term obligations are estimated based on either the quoted market prices for the same or similar issues or the current interest rates offered for the debt of the same remaining maturities, which are considered level 2 inputs in accordance with ASC Topic 820, “Fair Value Measurements and Disclosures.” Pension Plan Assets On an annual basis the Company compares the asset holdings of its pension plan to targets it previously established. The pension plan assets are categorized as equity securities, debt securities, fixed income securities, insurance annuities or other assets, which are considered level 1, level 2 and level 3 fair value measurements. The typical asset holdings include: • Common stock: Valued based on quoted prices and are primarily exchange-traded. • Mutual funds: Valued at the Net Asset Value (“NAV”) available daily in an observable market. • Common collective trusts: Unit value calculated based on the observable NAV of the underlying investment. • Pooled separate accounts: Unit value calculated based on the observable NAV of the underlying investment. • Government and corporate debt securities: Valued based on readily available inputs such as yield or price of bonds of comparable quality, coupon, maturity and type. • Insurance annuity: Value is derived based on the value of the corresponding liability. Non-Recurring Fair Value Measurements The Company recognized asset impairment charges of $71.0 million and $8.9 million for the years ended October 31, 2022 and 2021. The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of long-lived assets held and used and net assets held for sale for the twelve months ended October 31, 2022 and 2021: Quantitative Information about Level 3 Fair Value Measurements (in millions) Fair Value of Valuation Unobservable Range October 31, 2022 Impairment of Net Assets Held for Sale $ 62.4 Indicative Bids Indicative Bids N/A Impairment of Long Lived Assets $ 8.6 Discounted Cash Flows, Indicative Bids Discounted Cash Flows, Indicative Bids N/A Total $ 71.0 October 31, 2021 Impairment of Net Assets Held for Sale $ 1.0 Indicative Bids Indicative Bids N/A Impairment of Long Lived Assets $ 7.9 Discounted Cash Flows, Indicative Bids Discounted Cash Flows, Indicative Bids N/A Total $ 8.9 Long-Lived Assets and Assets and Liabilities Held for Sale On January 3, 2022, the Company entered into a definitive agreement to divest approximately 50% equity interest in the Flexible Products & Services business. This agreement triggered the reclassification of the Flexible Products & Services business to assets and liabilities held for sale, which further resulted in recognized impairment charges of $62.4 million in the first quarter of 2022. See Note 4 herein for additional disclosures of the FPS Divestiture. During the year ended October 31, 2022, the Company wrote off long-lived assets with a carrying value of $4.0 million, resulting in recognized asset impairment charges of $4.0 million. These charges include $2.3 million related to properties, plants and equipment, net, in the Global Industrial Packaging reportable segment and $1.7 million related to properties, plants and equipment, net, in the Paper Packaging & Services reportable segment. During the year ended October 31, 2021, the Company wrote down long-lived assets and net assets held for sale with a carrying value of $9.9 million to a fair value of $1.0 million, resulting in recognized asset impairment charges of $8.9 million. These charges include $2.7 million related to properties, plants and equipment, net, and net assets held for sale in the Global Industrial Packaging reportable segment, $1.2 million related properties, plants and equipment, net in the Land Management reportable segment, and $5.0 million related to properties, plants and equipment, net, in the Paper Packaging & Services reportable segment. During the year ended October 31, 2020, the Company wrote down long-lived assets with a carrying value of $36.4 million to a fair value of $17.9 million, resulting in recognized asset impairment charges The assumptions used in measuring fair value of long-lived assets are considered level 3 inputs, which include bids received from third parties, recent purchase offers, market comparable information and discounted cash flows based on assumptions that market participants would use. Goodwill and Indefinite-Lived Intangibles On an annual basis or when events or circumstances indicate impairment may have occurred, the Company performs impairment tests for goodwill and indefinite-lived intangibles as defined under ASC 350, “Intangibles-Goodwill and Other.” During the year ended October 31, 2020, the Company allocated $35.6 million of goodwill to the Consumer Packaging Group ("CPG") divestiture in April 2020, on a relative fair value basis. There was no goodwill impairment for the years ended October 31, 2022, 2021 and 2020. There was $4.6 million indefinite-lived intangibles impairment for the years ended October 31, 2022. There was no indefinite-lived intangibles impairment for the years ended October 31, 2021 and October 31, 2020. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based compensation is accounted for in accordance with ASC 718, “Compensation – Stock Compensation,” which requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Company's material stock-based compensation plans include the Long-Term Incentive Plan, which consists of the 2020 Long-Term Incentive Plan (the “2020 LTIP”) and the 2006 Amended and Restated Long-Term Incentive Plan (the “2006 LTIP”); and the 2005 Outside Directors Equity Award Plan (the “2005 Directors Plan”). The total stock compensation expense (income) recorded under all plans was $34.4 million, $34.1 million and $(1.2) million for periods ended October 31, 2022, 2021 and 2020 respectively. The Long-Term Incentive Plan is intended to focus management on the key measures that drive superior performance over the longer term. The Long-Term Incentive Plan provides key employees with incentive compensation based upon consecutive and overlapping three-year performance periods that commence at the start of every year. For each three-year performance period, the performance goals are based on performance criteria as determined by the Compensation Committee. 2020 Long-Term Incentive Plan For the three-year performance periods ending after fiscal 2021, awards were or will be made under the 2020 LTIP. Participants may be granted restricted stock units (“RSUs”) or performance stock units (“PSUs”) or a combination thereof. The Company grants RSUs based on a three-year vesting period on the basis of service only. The RSUs are an equity-classified plan measured at fair value on the grant date recognized ratably over the service period. Dividend-equivalent rights may be granted in connection with an RSU award and are recognized in conjunction with the Company's dividend issuance and settled upon vesting of the award. Upon vesting, the RSUs are to be awarded in shares of Class A Common Stock. The Company has made the following grants of RSUs under the 2020 LTIP: Issuance Date December 16, 2021 December 17, 2020 February 25, 2020 Service Period 11/1/2021 - 10/31/2024 11/1/2020 - 10/31/2023 11/1/2019 - 10/31/2022 RSUs Granted 99,006 139,360 147,325 Weighted Average Fair Value of RSUs $60.54 $48.50 $37.42 The Company grants PSUs for a three-year performance period based upon service, performance criteria and market conditions. The performance criteria are based on targeted levels of (a) adjusted earnings before interest, taxes, depreciation, depletion and amortization and (b) total shareholder return as determined by the Compensation Committee. The PSUs are a liability-classified plan wherein the fair value of the PSUs awarded is determined at each reporting period using a Monte Carlo simulation. A Monte Carlo simulation uses assumptions including the risk-free interest rate, expected volatility of the Company’s stock price and expected life of the awards to determine a fair value of the market condition throughout the vesting period. If earned, the PSUs are to be awarded in shares of Class A Common Stock. The following table summarizes the key assumptions used in estimating the value of PSUs: Issuance Date December 16, 2021 December 17, 2020 February 25, 2020 Performance Period 11/1/2021 - 10/31/2024 11/1/2020 - 10/31/2023 11/1/2019 - 10/31/2022 PSUs Issued 162,392 253,102 258,519 Weighted Average Fair Value of PSUs at Issuance Date $60.08 $47.26 $35.58 Weighted Average Fair Value of PSUs at Valuation Date $114.60 $116.94 $121.80 Valuation Date Stock Price $66.21 $66.21 $66.21 Risk-Free Rate 4.3% 4.4% —% Estimated Volatility 34.5% 35.7% —% 2006 Amended and Restated Long-Term Incentive Plan For each of the three-year performance periods ending in fiscal 2021 and 2020, awards were made under the 2006 LTIP, with the performance goals based on targeted levels of adjusted earnings before interest, taxes, depreciation, depletion and amortization. For each of these periods, awards are to be paid 50% in cash and 50% in restricted stock. All restricted stock awards under the 2006 LTIP are fully vested at the date of award. Under the 2006 LTIP, the Company granted 51,593 shares of restricted Class A Common Stock with a grant date fair value of $59.83 for 2022 and 80,252 shares of restricted Class A Common Stock with a grant date fair value of $50.08 for 2021. The total stock compensation expense (income) recorded under the 2020 and 2006 LTIP was $33.1 million, $32.8 million and $(2.4) million for the periods ended October 31, 2022, 2021 and 2020, respectively. 2005 Directors Plan Under the 2005 Directors Plan, the Company granted 22,221 shares of restricted Class A Common Stock with a grant date fair value of $57.49 in 2022 and 25,686 shares of restricted Class A Common Stock with a grant date fair value of $47.29 in 2021. The total expense recorded under the 2005 Directors Plan was $1.3 million, $1.2 million and $1.1 million for the periods ended October 31, 2022, 2021 and 2020, respectively. All restricted stock awards under the 2005 Directors Plan are fully vested at the date of award. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes consists of the following: Year Ended October 31, (in millions) 2022 2021 2020 Current Federal $ 54.6 $ 45.0 $ (9.7) State and local 19.9 15.5 3.3 Non-U.S. 49.2 56.3 53.0 Total Current 123.7 116.8 46.6 Deferred Federal 12.5 (33.0) 7.9 State and local (6.6) (9.9) 10.2 Non-U.S. 7.5 (4.3) (1.4) Total Deferred 13.4 (47.2) 16.7 Tax expense $ 137.1 $ 69.6 $ 63.3 The U.S. income before income tax expense was $333.5 million, $239.3 million and $25.5 million in 2022, 2021 and 2020, respectively. The non-U.S. income before income tax expense was $192.2 million, $239.2 million and $160.4 million in 2022, 2021 and 2020, respectively. The following is a reconciliation of the provision for income taxes based on the federal statutory rate to the Company’s effective income tax rate: Year Ended October 31, 2022 2021 2020 Federal statutory rate 21.00 % 21.00 % 21.00 % Impact of foreign tax rate differential 2.03 % 0.70 % 0.49 % State and local taxes, net of federal tax benefit 2.01 % 0.93 % 5.71 % Net impact of changes in valuation allowances (1.05) % (2.57) % (15.23) % Non-deductible write-off and impairment of goodwill and other intangible assets — % — % 4.02 % Permanent book-tax differences 1.60 % 0.86 % 16.56 % Withholding taxes 2.33 % 2.86 % 5.28 % Capital losses — % (5.70) % (6.34) % Other items, net (1.83) % (3.56) % 2.52 % Company's effective income tax rate 26.09 % 14.52 % 34.01 % The primary items which increased the Company’s effective income tax rate from the federal statutory rate in 2022 were changes in the mix of earnings among tax jurisdictions, including jurisdictions for which valuation allowances have been recorded, state and local taxes, withholding taxes and the net $58.6 million book loss recorded for the disposal of the Flexibles Packaging JV and other businesses for which limited tax benefits were available. The increases were partially offset by decreases in valuation allowances and recording additional capital losses which are expected to be fully utilized. The primary items which decreased the Company’s effective income tax rate from the federal statutory rate in 2021 were capital losses, which are expected to reduce capital gains resulting from the sale of timberland; releases of unrecognized tax benefits as a result of the expiration of statute of limitations; decreases in valuation allowances; and other favorable return to provision adjustments and audit settlements. These reductions were offset by an increase in withholding taxes and other immaterial items. The primary items which increased the Company’s effective income tax rate from the federal statutory rate in 2020 were state and local taxes, non-deductible goodwill from divestment of the CPG business, increases in permanent book-tax differences including a one-time elimination related to an intra-company sale and withholding tax liabilities. Increases were offset by a reduction in valuation allowances as a result of utilization of foreign tax credits. The components of the Company’s deferred tax assets and liabilities as of October 31 for the years indicated were as follows: (in millions) 2022 2021 Deferred tax assets Net operating loss and other carryforwards $ 101.8 $ 149.0 Incentive liabilities 28.6 16.2 Workers compensation accruals 9.9 10.5 Inventories 3.6 6.4 Operating lease liabilities 65.5 74.4 State income taxes 10.3 11.6 Other reserves 13.0 18.4 Deferred compensation 2.1 2.2 Other 26.9 36.1 Total deferred tax assets 261.7 324.8 Valuation allowance (105.4) (132.7) Net deferred tax assets $ 156.3 $ 192.1 Deferred tax liabilities Properties, plants and equipment $ 138.4 $ 134.9 Operating lease assets 65.5 74.4 Timberland transactions 51.8 51.0 Goodwill and other intangible assets 174.0 190.2 Pension liabilities 8.4 4.5 Other 51.7 38.4 Total deferred tax liabilities 489.8 493.4 Net deferred tax liability $ 333.5 $ 301.3 As of October 31, 2022 and 2021, the Company had deferred income tax benefits of $101.8 million and $149.0 million, respectively, from net operating losses and other tax credit carryforwards. For the fiscal year ended October 31, 2022, these losses and carryforwards are comprised of $4.4 million, $12.2 million and $85.2 million in U.S. Federal, U.S. state and non-U.S. jurisdictions, respectively. For the fiscal year ended October 31, 2021, these losses and carryforwards are comprised of $12.3 million, $21.8 million and $110.4 million in U.S. Federal, U.S. state and non-U.S. jurisdictions, respectively. The Company has recorded valuation allowances of $92.4 million and $116.8 million against non-U.S. deferred tax assets as of October 31, 2022 and 2021, respectively. The Company has also recorded valuation allowances against U.S. deferred tax assets of $13.0 million and $15.9 million, as of October 31, 2022 and 2021, respectively. The Company had net changes in valuation allowances in 2022 of $27.3 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in millions) 2022 2021 2020 Balance of unrecognized tax benefit at November 1 $ 31.0 $ 36.0 $ 38.8 Increases in tax positions for prior years 0.2 1.2 10.1 Decreases in tax positions for prior years — — (10.5) Increases in tax positions for current years 5.9 1.7 2.6 Lapse in statute of limitations (11.4) (8.0) (5.5) Currency translation (1.4) 0.1 0.5 Balance at October 31 $ 24.3 $ 31.0 $ 36.0 The 2022 net decrease in unrecognized tax benefits is primarily related to decreases in unrecognized tax benefits related lapses in statute of limitations. The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various non-U.S. jurisdictions and is subject to audit by various taxing authorities for 2014 through the current year. The Company has completed its U.S. federal tax audit for the tax years through 2015, and years 2016 through 2018 are closed for audit. The October 31, 2022, 2021, 2020 balances include $24.3 million, $31.0 million and $36.0 million, respectively, of unrecognized tax benefits that, if recognized, would have an impact on the effective tax rate. The Company also recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense net of tax, as applicable. As of October 31, 2022 and 2021, the Company had accrued for the payment of interest and penalties in the amounts of $4.8 million and $7.7 million, respectively. The Company has estimated the reasonably possible expected net change in unrecognized tax benefits through October 31, 2022 under ASC 740, "Income Taxes." The Company’s estimate is based on lapses of the applicable statutes of limitations, settlements and payments of uncertain tax positions. Though actual results may materially differ, the estimated net decrease in unrecognized tax benefits for the next 12 months could be up to $4.6 million. |
POST-RETIREMENT BENEFIT PLANS
POST-RETIREMENT BENEFIT PLANS | 12 Months Ended |
Oct. 31, 2022 | |
Retirement Benefits [Abstract] | |
POST-RETIREMENT BENEFIT PLANS | POST-RETIREMENT BENEFIT PLANS Defined Benefit Pension Plans The Company has certain non-contributory defined benefit pension plans for salaried and hourly employees in the United States, Canada, Germany, the Netherlands, South Africa and the United Kingdom. The Company uses a measurement date of October 31 for its pension plans. The salaried employees plans’ benefits are based primarily on years of service and earnings. The hourly employees plans’ benefits are based primarily upon years of service, and certain benefit provisions are subject to collective bargaining. The Company contributes an amount that is not less than the minimum funding and not more than the maximum tax-deductible amount to these plans. Salaried employees in the United States who commence service on or after November 1, 2007 are not eligible to participate in the U.S. defined benefit pension plan, but are eligible to participate in a defined contribution retirement program. Salaried employees outside the U.S. also have various dates in which they are not eligible to participate in the respective defined benefit pension plans, but are eligible to participate in a defined contribution retirement program. The category “Other International” represents the noncontributory defined benefit pension plans in Canada, South Africa and Turkey for October 31, 2021 and 2020. Pension plan contributions by the Company totaled $31.4 million during 2022, which consisted of $27.7 million of employer contributions and $3.7 million of benefits paid directly by the Company. Pension plan contributions, including benefits paid directly by the Company, totaled $21.9 million and $26.4 million during 2021 and 2020, respectively. Contributions, including benefits paid directly by the Company, during 2023 are expected to be approximately $28.4 million. The following table presents the number of participants in the defined benefit plans: October 31, 2022 Consolidated United States Germany United Kingdom Netherlands Other Active participants 1,659 1,579 29 — 51 — Vested former employees and deferred members 3,348 2,764 75 366 115 28 Retirees and beneficiaries 3,426 2,102 281 662 330 51 October 31, 2021 Consolidated United States Germany United Netherlands Other Active participants 3,603 1,733 30 — 60 1,780 Vested former employees and deferred members 3,468 2,881 79 366 107 35 Retirees and beneficiaries 3,306 1,962 276 662 354 52 The weighted average assumptions used to measure the year-end benefit obligations as of October 31 were as follows: As of October 31, 2022 2021 Discount rate 5.61 % 2.55 % Rate of compensation increase 2.99 % 2.96 % The weighted average assumptions used to determine the pension cost for the years ended October 31 were as follows: For the year ended October 31, 2022 2021 2020 Discount rate 2.55 % 2.48 % 2.74 % Expected Return on plan assets 3.86 % 3.87 % 4.64 % Rate of compensation increase 2.96 % 2.91 % 2.85 % The discount rate is determined by developing a hypothetical portfolio of individual high-quality corporate bonds available at the measurement date, the coupon and principal payments of which would be sufficient to satisfy the plans’ expected future benefit payments as defined for the projected benefit obligation. The discount rate by country is equivalent to the average yield on that hypothetical portfolio of bonds and is a reflection of current market settlement rates on such high quality bonds, government treasuries and annuity purchase rates. To determine the expected long-term rate of return on pension plan assets, the Company considers current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. In developing future return expectations for the defined benefit pension plans’ assets, the Company formulates views on the future economic environment, both in the U.S. and globally. The Company evaluates general market trends and historical relationships among a number of key variables that impact asset class returns, such as expected earnings growth, inflation, valuations, yields and spreads, using both internal and external sources. The Company takes into account expected volatility by asset class and diversification across classes to determine expected overall portfolio results given current and expected allocations. The Company uses published mortality tables for determining the expected lives of plan participants and believes that the tables selected are most-closely associated with the expected lives of plan participants as the tables are based on the country in which the participant is employed. Based on the Company's analysis of future expectations of asset performance, past return results and its current and expected asset allocations, the Company has assumed a 3.86% long-term expected return on those assets for cost recognition in 2022. For the defined benefit pension plans, the Company applies its expected rate of return to a market-related value of assets, which stabilizes variability in the amounts to which the Company applies that expected return. The Company amortizes experience gains and losses as well as the effects of changes in actuarial assumptions and plan provisions over a period no longer than the average future service of employees. During the year ended October 31, 2022, $2.4 million of projected benefit obligation for plan participants in Turkey was irrevocably transferred to a third-party buyer through the sale of business (part of the FPS Divestiture) resulting in a $1.0 million loss in accumulated other comprehensive income that was recognized as a loss on sale of business. During the year ended October 31, 2021, an annuity contract in the amount of approximately $98.8 million was purchased with defined benefit plan assets, and the pension obligation for certain retirees in the United States was irrevocably transferred from that plan to the annuity contract settling that obligation. Additionally, lump sum payments totaling $13.9 million were made from the U.S. defined benefit plan assets to certain participants who agreed to such payments, representing the current fair value of such participants' respective pension benefits. The settlement items described above resulted in a decrease in the value of both the plan assets and the projected benefit obligation of $112.7 million and non-cash pension settlement charges of $8.8 million of unrecognized net actuarial loss included in accumulated other comprehensive loss for the year ended October 31, 2021. Additional lump sum payments in Canada, South Africa and the United Kingdom exceeded the settlement threshold for the fiscal year triggering settlement accounting. Lump sum payments for these plans resulted in non-cash pension settlement charges of $0.3 million of unrecognized net actuarial loss that was included in accumulated other comprehensive loss for the year ended October 31, 2021. Benefit Obligations The components of net periodic pension cost include the following: For the year ended October 31, 2022 Consolidated United States Germany United Netherlands Other (in millions) Service cost $ 11.5 $ 10.0 $ 0.2 $ 0.5 $ 0.5 $ 0.3 Interest cost 19.9 16.1 0.3 2.6 0.5 0.4 Expected return on plan assets (32.5) (27.0) — (3.9) (0.8) (0.8) Amortization of prior service benefit (0.4) (0.3) — — (0.1) — Recognized net actuarial loss 7.7 6.0 0.9 0.6 — 0.2 Special Events Divestiture Charge 1.0 — — — — 1.0 Net periodic pension cost (benefit) $ 7.2 $ 4.8 $ 1.4 $ (0.2) $ 0.1 $ 1.1 For the year ended October 31, 2021 Consolidated United States Germany United Netherlands Other (in millions) Service cost $ 12.1 $ 10.7 $ 0.3 $ 0.5 $ 0.5 $ 0.1 Interest cost 18.8 15.4 0.3 2.5 0.4 0.2 Expected return on plan assets (31.8) (25.8) — (4.6) (0.7) (0.7) Amortization of prior service benefit (0.3) (0.1) — — (0.2) — Recognized net actuarial loss 12.6 10.1 1.3 1.1 — 0.1 Special Events Settlement 9.1 8.8 — 0.3 — — Net periodic pension cost (benefit) $ 20.5 $ 19.1 $ 1.9 $ (0.2) $ — $ (0.3) For the year ended October 31, 2020 Consolidated United States Germany United Netherlands Other (in millions) Service cost $ 12.8 $ 11.5 $ 0.4 $ 0.5 $ 0.3 $ 0.1 Interest cost 25.9 22.4 0.2 2.7 0.3 0.3 Expected return on plan assets (37.9) (31.4) — (5.2) (0.7) (0.6) Amortization of prior service (benefit) cost (0.1) (0.1) — 0.1 (0.1) — Recognized net actuarial loss 13.2 10.2 1.8 1.1 — 0.1 Special Events Settlement 0.3 (0.1) — 0.4 — — Net periodic pension cost (benefit) $ 14.2 $ 12.5 $ 2.4 $ (0.4) $ (0.2) $ (0.1) Benefit obligations are described in the following tables. Accumulated and projected benefit obligations ("ABO" and "PBO") represent the obligations of a pension plan for past service as of the measurement date. ABO is the present value of benefits earned to date with benefits computed based on current compensation levels. PBO is ABO increased to reflect expected future compensation. The following table sets forth the plans’ change in projected benefit obligation: For the year ended October 31, 2022 Consolidated United States Germany United Netherlands Other (in millions) Change in benefit obligation: Benefit obligation at beginning of year $ 989.2 $ 679.6 $ 39.3 $ 174.1 $ 82.5 $ 13.7 Service cost 11.5 10.0 0.2 0.5 0.5 0.3 Interest cost 19.9 16.1 0.3 2.6 0.5 0.4 Plan participant contributions 0.2 — — — 0.2 — Expenses paid from assets (2.8) (1.9) — (0.8) — (0.1) Actuarial gain (265.9) (188.9) (7.6) (51.2) (17.6) (0.6) Foreign currency effect (40.3) — (5.0) (23.0) (10.2) (2.1) Benefits paid (57.7) (44.6) (1.3) (6.4) (4.5) (0.9) Divestiture (2.4) — — — — (2.4) Benefit obligation at end of year $ 651.7 $ 470.3 $ 25.9 $ 95.8 $ 51.4 $ 8.3 For the year ended October 31, 2021 Consolidated United States Germany United Netherlands Other (in millions) Change in benefit obligation: Benefit obligation at beginning of year $ 1,110.3 $ 782.0 $ 42.1 $ 184.6 $ 90.9 $ 10.7 Service cost 12.1 10.7 0.3 0.5 0.5 0.1 Interest cost 18.8 15.4 0.3 2.5 0.4 0.2 Plan participant contributions 0.2 — — — 0.2 — Expenses paid from assets (3.1) (2.3) — (0.9) 0.2 (0.1) Actuarial loss (gain) 0.3 17.1 (1.5) (11.1) (3.8) (0.4) Foreign currency effect 9.8 — (0.4) 10.9 (0.9) 0.2 Benefits paid (159.9) (143.3) (1.5) (9.0) (5.0) (1.1) Other 0.7 — — (3.4) — 4.1 Benefit obligation at end of year $ 989.2 $ 679.6 $ 39.3 $ 174.1 $ 82.5 $ 13.7 The following tables set forth the PBO, ABO, plan assets and instances where the ABO exceeds the plan assets for the respective years: (in millions) Consolidated United States Germany United Netherlands Other Actuarial value of benefit obligations and plan assets October 31, 2022 Projected benefit obligation $ 651.7 $ 470.3 $ 25.9 $ 95.8 $ 51.4 $ 8.3 Accumulated benefit obligation 636.2 456.1 25.3 95.8 50.7 8.3 Plan assets 624.6 451.1 — 111.6 50.3 11.6 October 31, 2021 Projected benefit obligation $ 989.2 $ 679.6 $ 39.3 $ 174.1 $ 82.5 $ 13.7 Accumulated benefit obligation 961.0 655.4 38.2 174.1 81.2 12.1 Plan assets 950.8 646.4 — 205.4 84.5 14.5 Plans with ABO in excess of Plan assets October 31, 2022 Accumulated benefit obligation $ 106.6 $ 30.6 $ 25.3 $ — $ 50.7 Plan assets 50.3 — — — 50.3 — October 31, 2021 Accumulated benefit obligation $ 75.1 $ 35.3 $ 38.2 $ — $ — $ 1.6 Plan assets — — — — — — The actuarial (gain) loss for all pension plans was primarily related to a change in discount rates used to measure the benefit obligations of those plans. Future benefit payments for the Company's global plans, which reflect expected future service, as appropriate, during the next five years, and in the aggregate for the five years thereafter, are as follows: (in millions) Expected Year(s) 2023 $ 54.8 2024 54.8 2025 51.7 2026 52.1 2027 53.3 2028-2032 262.1 Plan assets The assets of all the Company's plans consist of U.S. and non-U.S. equity securities, government and corporate bonds, cash, insurance annuities and mutual funds. The investment policy reflects the long-term nature of the plans’ funding obligations. The assets are invested to provide the opportunity for both income and growth of principal. This objective is pursued as a long-term goal designed to provide required benefits for participants without undue risk. It is expected that this objective can be achieved through a well-diversified asset portfolio. All equity investments are made within the guidelines of quality, marketability and diversification mandated by the Employee Retirement Income Security Act and/or other relevant statutes and laws. Investment managers are directed to maintain equity portfolios at a risk level approximately equivalent to that of the specific benchmark established for that portfolio. The Company’s weighted average asset allocations at the measurement date and the target asset allocations by category are as follows: Asset Category 2023 Target 2022 Target 2022 Actual Equity securities 20 % 20 % 22 % Debt securities 66 % 66 % 63 % Other 14 % 14 % 15 % Total 100 % 100 % 100 % The fair value of the pension plans’ investments is presented below. The inputs and valuation techniques used to measure the fair value of the assets are consistently applied and described in Note 6 of the Notes to the Consolidated Financial Statements. For the year ended October 31, 2022 Consolidated United States Germany United Netherlands Other (in millions) Change in plan assets: Fair value of plan assets at beginning of year $ 950.8 $ 646.4 $ — $ 205.4 $ 84.5 $ 14.5 Actual return on plan assets (258.4) (179.0) — (62.1) (16.6) (0.7) Expenses paid (2.8) (1.9) — (0.8) — (0.1) Plan participant contributions 0.2 — — — 0.2 — Foreign currency impact (38.8) — — (27.0) (10.3) (1.5) Employer contributions 27.6 28.0 — 2.5 (3.0) 0.1 Benefits paid out of plan (54.0) (42.4) — (6.4) (4.5) (0.7) Fair value of plan assets at end of year $ 624.6 $ 451.1 $ — $ 111.6 $ 50.3 $ 11.6 For the year ended October 31, 2021 Consolidated United States Germany United Netherlands Other (in millions) Change in plan assets: Fair value of plan assets at beginning of year $ 1,002.1 $ 687.0 $ — $ 210.0 $ 92.0 $ 13.1 Actual return on plan assets 77.1 88.4 — (9.8) (3.1) 1.6 Expenses paid (3.1) (2.3) — (0.9) 0.2 (0.1) Plan participant contributions 0.2 — — — 0.2 — Foreign currency impact 12.5 — — 12.4 (0.9) 1.0 Employer contributions 17.8 14.0 — 2.7 1.1 — Benefits paid out of plan (155.8) (140.7) — (9.0) (5.0) (1.1) Fair value of plan assets at end of year $ 950.8 $ 646.4 $ — $ 205.4 $ 84.5 $ 14.5 The following table presents the fair value measurements for the pension assets: Fair Value Measurement As of October 31, 2022 (in millions) Level 1 Level 2 Level 3 Total Asset Category Mutual funds $ 62.9 $ 58.0 $ — $ 120.9 Cash 16.0 — — 16.0 Corporate bonds — 160.5 — 160.5 Government bonds — 51.6 — 51.6 Other assets — 2.0 — 2.0 Total Assets in the Fair Value Hierarchy 78.9 272.1 — 351.0 Investments Measured at Net Asset Value Insurance contracts 72.9 Common stock funds 77.3 Corporate bond funds 123.4 Investments at Fair Value $ 78.9 $ 272.1 $ — $ 624.6 Fair Value Measurement As of October 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Asset Category Mutual funds $ 87.4 $ 128.5 $ — $ 215.9 Common stock 6.6 — — 6.6 Cash 15.7 — — 15.7 Corporate bonds — 228.5 — 228.5 Government bonds — 44.5 — 44.5 Other assets — 1.0 — 1.0 Total Assets in the Fair Value Hierarchy 109.7 402.5 — 512.2 Investments Measured at Net Asset Value Insurance contracts 122.9 Common stock funds 94.2 Corporate bond funds 209.2 Government bond funds 12.3 Investments at Fair Value $ 109.7 $ 402.5 $ — $ 950.8 Financial statement presentation including other comprehensive income: As of October 31, 2022 Consolidated United States Germany United Netherlands Other (in millions) Unrecognized net actuarial loss $ 93.4 $ 41.0 $ 2.3 $ 43.2 $ 3.9 $ 3.0 Unrecognized prior service credit (1.4) (0.4) — — (1.0) — Accumulated other comprehensive loss - Pre-tax $ 92.0 $ 40.6 $ 2.3 $ 43.2 $ 2.9 $ 3.0 Amounts recognized in the Consolidated Balance Sheets consist of: Prepaid benefit cost $ 30.8 $ 11.7 $ — $ 15.8 $ — $ 3.3 Accrued benefit liability (58.0) (30.8) (25.9) — (1.3) — Accumulated other comprehensive loss - Pre-tax 92.0 40.6 2.3 43.2 2.9 3.0 Net amount recognized $ 64.8 $ 21.5 $ (23.6) $ 59.0 $ 1.6 $ 6.3 As of October 31, 2021 Consolidated United States Germany United Kingdom Netherlands Other (in millions) Unrecognized net actuarial loss $ 87.2 $ 29.9 $ 11.9 $ 36.2 $ 4.4 $ 4.8 Unrecognized prior service cost (credit) (2.0) (0.7) — — (1.3) — Accumulated other comprehensive loss - Pre-tax $ 85.2 $ 29.2 $ 11.9 $ 36.2 $ 3.1 $ 4.8 Amounts recognized in the Consolidated Balance Sheets consist of: Prepaid benefit cost $ 39.9 $ 2.7 $ — $ 31.1 $ 2.0 $ 4.1 Accrued benefit liability (78.3) (35.5) (39.3) — — (3.5) Accumulated other comprehensive loss - Pre-tax 85.2 29.2 11.9 36.2 3.1 4.8 Net amount recognized $ 46.8 $ (3.6) $ (27.4) $ 67.3 $ 5.1 $ 5.4 (in millions) October 31, 2022 October 31, 2021 Accumulated other comprehensive loss at beginning of year $ 85.2 $ 150.6 Increase or (decrease) in accumulated other comprehensive loss Net prior service benefit amortized 0.4 0.3 Net loss amortized (7.7) (12.6) Loss recognized due to settlement — (9.1) Loss recognized due to divestiture (1.0) — Liability loss (265.9) 0.3 Asset loss (gain) 290.8 (45.3) Other adjustments (0.5) (0.9) Increase (decrease) in accumulated other comprehensive loss 16.1 (67.3) Foreign currency impact (9.3) 1.9 Accumulated other comprehensive loss at year end $ 92.0 $ 85.2 Supplemental Employee Retirement Plan The Company has a supplemental employee retirement plan which is an unfunded plan providing supplementary retirement benefits primarily to certain executives and longer-service employees. The present benefit obligation of the supplemental employee retirement plan is included in the United States defined benefit pension plans above. |
CONTINGENT LIABILITIES AND ENVI
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES | 12 Months Ended |
Oct. 31, 2022 | |
Environmental Remediation Obligations [Abstract] | |
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES | CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES Litigation-related Liabilities The Company may become involved from time-to-time in litigation and regulatory matters incidental to its business, including governmental investigations, enforcement actions, personal injury claims, product liability, employment health and safety matters, commercial disputes, intellectual property matters, disputes regarding environmental clean-up costs, litigation in connection with acquisitions and divestitures, and other matters arising out of the normal conduct of its business. The Company intends to vigorously defend itself in such litigation. The Company does not believe that the outcome of any pending litigation will have a material adverse effect on its consolidated financial statements. The Company will accrue for contingencies related to litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions can occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews contingencies to determine whether its accruals are adequate. The amount of ultimate loss may differ from these estimates. Since 2017, two reconditioning facilities in the Milwaukee, Wisconsin area that are or were owned by Container Life Cycle Management LLC ("CLCM"), the Company’s U.S. reconditioning joint venture, have been subject to investigations conducted by federal, state and local governmental agencies concerning, among other matters, potential violations of environmental laws and regulations. As a result of these investigations, the United States Environmental Protection Agency (“U.S. EPA”) and the Wisconsin Department of Natural Resources (“WDNR”) have issued notices of violations to the Company and CLCM regarding alleged violations of certain federal and state environmental laws and regulations. The U.S. EPA and the WDNR have rescinded the notices of violations relating to the Company and have reached agreement with CLCM on a proposed consent decree that would resolve these investigations and proceedings against CLCM (the “Proposed CLCM Consent Decree”). On November 30, 2022, the U.S. EPA and the WDNR filed an action in the U.S. District Court, Eastern District of Wisconsin, seeking the Court’s approval of the Proposed CLCM Consent Decree. Under the Proposed CLCM Consent Decree, CLCM, without admitting any wrongdoing, has agreed to modify certain existing operational practices, install and operate specific environmental controls and pay civil penalties of approximately $1.6 million. The Proposed CLCM Consent Decree is not final and effective unless and until approved by the Court. Environmental Reserves As of October 31, 2022 and October 31, 2021, the Company has accrued $9.8 million and $11.0 million, respectively, for the Diamond Alkali Superfund Site. It is possible that there could be resolution of uncertainties in the future that would require the Company to record charges, which could be material to future earnings. Aside from the Diamond Alkali Superfund Site, other environmental reserves of the Company as of October 31, 2022 and October 31, 2021 included $9.2 million and $8.5 million, respectively, for its various facilities around the world. As of October 31, 2022 and October 31, 2021, the Company's environmental reserves were $19.0 million and $19.5 million, respectively. These reserves are principally based on environmental studies and cost estimates provided by third parties, but also take into account management estimates. The estimated liabilities are reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of relevant costs. For sites that involve formal actions subject to joint and several liabilities, these actions have formal agreements in place to apportion the liability. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREThe Company has two classes of common stock and, as such, applies the “two-class method” of computing earnings per share (“EPS”) as prescribed in ASC 260, “Earnings Per Share.” In accordance with this guidance, earnings are allocated in the same fashion as dividends would be distributed. Under the Company’s certificate of incorporation, any distribution of dividends in any year must be made in proportion of one cent a share for Class A Common Stock to one and one-half cents a share for Class B Common Stock, which results in a 40% to 60% split to Class A and B shareholders, respectively. In accordance with this, earnings are allocated first to Class A and Class B Common Stock to the extent that dividends are actually paid, and the remainder is allocated assuming all of the earnings for the period have been distributed in the form of dividends. The Company calculates EPS as follows: Basic Class A EPS = 40% * Average Class A Shares Outstanding * Undistributed Net Income + Class A Dividends Per Share 40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding Average Class A Shares Outstanding Diluted Class A EPS = 40% * Average Class A Shares Outstanding * Undistributed Net Income + Class A Dividends Per Share 40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding Average Diluted Class A Shares Outstanding Basic Class B EPS = 60% * Average Class B Shares Outstanding * Undistributed Net Income + Class B Dividends Per Share 40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding Average Class B Shares Outstanding * Diluted Class B EPS calculation is identical to Basic Class B calculation The following table provides EPS information for each period, respectively: Year Ended October 31, (in millions, except per share data) 2022 2021 2020 Numerator Numerator for basic and diluted EPS Net income attributable to Greif, Inc. $ 376.7 $ 390.7 $ 108.8 Cash dividends (111.3) (105.8) (104.3) Undistributed net income attributable to Greif, Inc. $ 265.4 $ 284.9 $ 4.5 Denominator Denominator for basic EPS – Class A common stock 26.3 26.5 26.4 Class B common stock 22.0 22.0 22.0 Denominator for diluted EPS – Class A common stock 26.6 26.7 26.4 Class B common stock 22.0 22.0 22.0 EPS Basic Class A common stock $ 6.36 $ 6.57 $ 1.83 Class B common stock $ 9.53 $ 9.84 $ 2.74 EPS Diluted Class A common stock $ 6.30 $ 6.54 $ 1.83 Class B common stock $ 9.53 $ 9.84 $ 2.74 The Class A Common Stock has no voting rights unless four quarterly cumulative dividends upon the Class A Common Stock are in arrears. The Class B Common Stock has full voting rights. There is no cumulative voting for the election of directors. Common Stock Repurchases In June 2022, the Stock Repurchase Committee of the Company’s Board of Directors authorized a program to repurchase up to $150.0 million of shares of the Company’s Class A or Class B Common Stock or any combination thereof. On June 23, 2022, the Company entered into a $75.0 million accelerated share repurchase agreement ("ASR") with Bank of America, N.A. for the repurchase of shares of the Company's Class A Common Stock. In addition, the Company plans to repurchase an aggregate of $75.0 million of shares of its Class A or Class B Common Stock, or any combination thereof, in open market purchases ("OSR program"). Under the ASR, on June 24, 2022, the Company made a payment of $75.0 million and received an initial delivery of approximately 80% of the expected share repurchases, or 1,021,451 shares of Class A Common Stock, with any remaining shares expected to be delivered by the Company's second quarter 2023. The ASR has been accounted for as a purchase of shares of Class A Common Stock and a forward purchase contract. The final number of shares of Class A Common Stock to be repurchased will be based on the volume-weighted average price of the shares of the Company's Class A Common Stock during the term of the ASR less a discount. The Company has treated the shares of Class A Common Stock delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average shares outstanding of Class A Common Stock for both basic and diluted earnings per share. The forward stock purchase contract was determined to be indexed to the Company’s own stock and met all of the applicable criteria for equity classification. The Company began making repurchases of Class B Common Stock under the OSR program on September 9, 2022, and the Company may continue to make open market repurchases over the next 12 to 18 months under this program, all in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934. The timing of any such repurchases will depend on market conditions and will be made at the Company's discretion. While the Company intends to repurchase up to $75.0 million of shares, it is not obligated to repurchase any dollar amount or number or class of shares and may suspend or discontinue repurchases at any time. As of October 31, 2022, 170,980 shares of Class B Common Stock had been repurchased under the OSR program. The following table summarizes the Company’s Class A and Class B common and treasury shares at the specified dates: Authorized Shares Issued Shares Outstanding Treasury Shares October 31, 2022: Class A common stock 128,000,000 42,281,920 25,606,287 16,675,633 Class B common stock 69,120,000 34,560,000 21,836,745 12,723,255 October 31, 2021: Class A common stock 128,000,000 42,281,920 26,550,924 15,730,996 Class B common stock 69,120,000 34,560,000 22,007,725 12,552,275 The following is a reconciliation of the shares used to calculate basic and diluted earnings per share: Year Ended October 31, 2022 2021 2020 Class A Common Stock: Basic shares 26,251,536 26,525,529 26,382,838 Assumed conversion of stock options and unvested shares 359,176 133,692 7,805 Diluted shares 26,610,712 26,659,221 26,390,643 Class B Common Stock: Basic and diluted shares 21,995,865 22,007,725 22,007,725 No stock options were antidilutive for the years ended October 31, 2022, 2021, or 2020. |
LEASES
LEASES | 12 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASESThe Company leases certain buildings, warehouses, land, transportation equipment, operating equipment and office equipment with remaining lease terms from less than 1 year up to 20 years. The Company reviews all options to extend, terminate, or purchase a right of use asset at the time of lease inception and accounts for options deemed reasonably certain. The Company combines lease and non-lease components for all leases, except real estate, for which these components are presented separately. Leases with an initial term of twelve months or less are not capitalized and are recognized on a straight-line basis over the lease term. The implicit rate is not readily determinable for substantially all of the Company's leases, therefore the initial present value of lease payments is calculated utilizing an estimated incremental borrowing rate determined at the portfolio level based on market and Company specific information. Certain of the Company’s leases include variable costs. As the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, changes in these variable expenses are not capitalized and are expensed as incurred throughout the lease term. As of October 31, 2022, the Company had no significant leases that had not commenced. The following table presents the lease expense components: Year Ended (in millions) October 31, 2022 October 31, 2021 Operating lease cost $ 64.6 $ 70.4 Other lease cost * 24.6 24.0 Total lease cost $ 89.2 $ 94.4 * Amount includes variable, short-term and finance lease costs. Future maturity for the Company's lease liabilities, during the next five years, and in the aggregate for the years thereafter, are as follows: (in millions) October 31, 2022 2023 56.9 2024 53.8 2025 44.9 2026 39.3 2027 31.5 Thereafter 108.3 Total lease payments 334.7 Less: Interest (76.4) Lease liabilities $ 258.3 The following table presents the weighted-average lease term and discount rate as of October 31, 2022 and October 31, 2021: October 31, 2022 October 31, 2021 Weighted-average remaining lease term (years) for operating lease liabilities 9.9 10.3 Weighted-average discount rate for operating lease liabilities 3.77 % 3.61 % The following table presents other required lease related information: (in millions) October 31, 2022 October 31, 2021 Operating cash flows used for operating leases $ 63.2 $ 70.2 Leased assets obtained in exchange for new operating lease liabilities 22.3 25.0 |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATIONThe Company has six operating segments, which are aggregated into three reportable segments: Global Industrial Packaging; Paper Packaging & Services; and Land Management. The Global Industrial Packaging reportable segment is the aggregation of four operating segments: Global Industrial Packaging – North America; Global Industrial Packaging – Latin America; Global Industrial Packaging – Europe, Middle East and Africa; and Global Industrial Packaging – Asia Pacific. Operations in the Global Industrial Packaging reportable segment involve the production and sale of rigid industrial packaging products, such as steel, fibre and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and remanufactured and reconditioned industrial containers, and services, such as container life cycle management, filling, logistics, warehousing and other packaging services. These products and services are sold to customers in industries such as chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agriculture, pharmaceuticals and mineral products, among others. Operations in the Paper Packaging & Services reportable segment involve the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated and specialty products to customers in North America in industries such as packaging, automotive, food and building products. The Company’s corrugated container products are used to ship such diverse products as home appliances, small machinery, grocery products, automotive components, books and furniture, as well as numerous other applications. The Company also produces and sells coated and uncoated recycled paperboard, along with tubes and cores and a diverse mix of specialty products to customers in North America. In addition, the reportable segment is involved in the purchase and sale of recycled fiber. Operations in the Land Management reportable segment involve the management and sale of timber and special use properties from approximately 175,000 acres of timber properties in the southeastern United States. Land Management’s operations focus on the active harvesting and regeneration of its timber properties to achieve sustainable long-term yields. While timber sales are subject to fluctuations, the Company seeks to maintain a consistent cutting schedule, within the limits of market and weather conditions. The Company also sells, from time to time, timberland and special use properties, which consists of surplus properties, higher and better use ("HBU") properties and development properties. In order to maximize the value of timber property, the Company continues to review its current portfolio and explore the development of certain of these properties. This process has led the Company to characterize property as follows: • Surplus property, meaning land that cannot be efficiently or effectively managed by the Company, whether due to parcel size, lack of productivity, location, access limitations or for other reasons. • HBU property, meaning land that in its current state has a higher market value for uses other than growing and selling timber. • Development property, meaning HBU land that, with additional investment, may have a significantly higher market value than its HBU market value. • Timberland, meaning land that is best suited for growing and selling timber. The disposal of surplus and HBU property is reported in the consolidated statements of income under “gain on disposals of properties, plants and equipment, net” and the sale of development property is reported under “net sales” and “cost of products sold.” All HBU, development and surplus property is used by the Company to productively grow and sell timber until sold. Whether timberland has a higher value for uses other than growing and selling timber is a determination based upon several variables, such as proximity to population centers, anticipated population growth in the area, the topography of the land, aesthetic considerations, including access to water, the condition of the surrounding land, availability of utilities, markets for timber and economic considerations both nationally and locally. Given these considerations, the characterization of land is not a static process, but requires an ongoing review and re-characterization as circumstances change. The following tables present net sales disaggregated by geographic area for each reportable segment for the year ended October 31, 2022: Year Ended October 31, 2022 (in millions) United States Europe, Middle East and Africa Asia Pacific and Other Americas Total Global Industrial Packaging $ 1,287.1 $ 1,700.7 $ 664.6 $ 3,652.4 Paper Packaging & Services 2,630.8 — 44.3 2,675.1 Land Management 22.0 — — 22.0 Total net sales $ 3,939.9 $ 1,700.7 $ 708.9 $ 6,349.5 The following tables present net sales disaggregated by geographic area for each reportable segment for the year ended October 31, 2021: Year Ended October 31, 2021 (in millions) United States Europe, Middle East and Africa Asia Pacific and Other Americas Total Global Industrial Packaging $ 1,044.5 $ 1,673.9 $ 598.3 $ 3,316.7 Paper Packaging & Services 2,182.0 — 36.4 2,218.4 Land Management 21.0 — — 21.0 Total net sales $ 3,247.5 $ 1,673.9 $ 634.7 $ 5,556.1 The following reportable segment information is presented for each of the three years in the period ended October 31: (in millions) 2022 2021 2020 Operating profit: Global Industrial Packaging $ 313.7 $ 350.2 $ 225.4 Paper Packaging & Services 298.5 131.0 71.0 Land Management 9.0 104.0 8.5 Total operating profit $ 621.2 $ 585.2 $ 304.9 Depreciation, depletion and amortization expense: Global Industrial Packaging $ 73.9 $ 83.1 $ 84.5 Paper Packaging & Services 139.9 148.0 153.5 Land Management 2.8 3.3 4.5 Total depreciation, depletion and amortization expense $ 216.6 $ 234.4 $ 242.5 Capital expenditures: Global Industrial Packaging $ 55.1 $ 71.1 $ 55.8 Paper Packaging & Services 90.6 79.9 61.4 Land Management — 0.2 0.2 Total segment 145.7 151.2 117.4 Corporate and other 16.2 11.0 12.6 Total capital expenditures $ 161.9 $ 162.2 $ 130.0 The following table presents total assets by reportable segment and total long lived assets, net by geographic area: (in millions) October 31, 2022 October 31, 2021 October 31, 2020 Assets: Global Industrial Packaging $ 2,308.4 $ 2,735.1 $ 2,338.5 Paper Packaging & Services 2,473.9 2,506.5 2,524.3 Land Management 250.0 249.2 348.6 Total segment 5,032.3 5,490.8 5,211.4 Corporate and other 437.6 325.0 299.5 Total assets $ 5,469.9 $ 5,815.8 $ 5,510.9 Long lived assets, net*: United States $ 1,314.7 $ 1,321.8 $ 1,345.8 Europe, Middle East, and Africa 303.7 374.5 377.6 Asia Pacific and other Americas 91.3 114.3 111.0 Total properties, plants and equipment, net $ 1,709.7 $ 1,810.6 $ 1,834.4 *includes impact of capitalization of operating lease assets |
COMPREHENSIVE INCOME (LOSS) (Lo
COMPREHENSIVE INCOME (LOSS) (Loss) | 12 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) The following table provides the roll forward of accumulated other comprehensive income (loss) for the years ended October 31, 2022 and 2021: (in millions) Foreign Currency Derivative Financial Instruments Minimum Accumulated Balance as of October 31, 2020 $ (294.9) $ (24.7) $ (107.9) $ (427.5) Other Comprehensive Income (Loss) $ (0.5) $ 21.1 $ 50.4 $ 71.0 Balance as of October 31, 2021 $ (295.4) $ (3.6) $ (57.5) $ (356.5) Other Comprehensive Income (Loss) (134.2) 76.4 (1.1) (58.9) Foreign Currency Translation Released from Business Divestment 113.1 — — $ 113.1 Balance as of October 31, 2022 $ (316.5) $ 72.8 $ (58.6) $ (302.3) The components of accumulated other comprehensive income above are presented net of tax, as applicable. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Oct. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS Mandatorily Redeemable Noncontrolling Interests The terms of the joint venture agreement for one joint venture within the Global Industrial Packaging reportable segment include mandatory redemption by the Company, in cash, of the noncontrolling interest holders’ equity at a formulaic price after the expiration of a lockout period specific to each noncontrolling interest holder. The redemption features cause the noncontrolling interest to be classified as a mandatorily redeemable instrument under the accounting guidance, and this noncontrolling interest is included at the current redemption value each period in long-term or short-term liabilities of the Company, as applicable. The impact of marking to redemption value at each period end is recorded in interest expense. The carrying amount is not reduced below the initially recorded contribution. The Company has a contractual obligation to redeem the outstanding equity interest the remaining partner in 2023. The mandatorily redeemable noncontrolling interest balance is $3.4 million as of October 31, 2022 and $8.4 million as of October 31, 2021. Redeemable Noncontrolling Interests Redeemable noncontrolling interests related to two joint ventures within the Paper Packaging & Services reportable segment and one joint venture within the Global Industrial Packaging reportable segment are held by the respective noncontrolling interest owners. The holders of these interests share in the profits and losses of these entities on a pro-rata basis with the Company. However, the noncontrolling interest owners have the right to put all or a portion of those noncontrolling interests to the Company at a formulaic price after a set period of time, specific to each agreement. Redeemable noncontrolling interests are reflected in the consolidated balance sheets at redemption value. The following table provides the rollforward of the redeemable noncontrolling interest for the years ended October 31, 2022 and 2021: (in millions) Redeemable Noncontrolling Interest Balance as of October 31, 2020 $ 20.0 Current period mark to redemption value 2.6 Redeemable noncontrolling interest share of income 2.4 Dividends to redeemable noncontrolling interest and other (0.9) Balance as of October 31, 2021 24.1 Current period mark to redemption value (5.5) Repurchase of redeemable shareholder interest (1.9) Redeemable noncontrolling interest share of income 0.1 Dividends to redeemable noncontrolling interest and other (1.0) Balance as of October 31, 2022 $ 15.8 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On November 9, 2022, the Company entered into a definitive agreement to acquire Lee Container Corporation, Inc. ("Lee Container"), an industry-leading manufacturer of high-performance barrier and conventional blow molded containers, for a purchase price of $300.0 million in cash, subject to customary closing conditions, including regulatory clearances. On December 15, 2022, the Company completed the Lee Container acquisition. The all-cash transaction was funded through Greif's existing credit facility. Due to the limited time since the Company has completed the acquisition, the Company has not yet completed the initial acquisition accounting for the transaction, including the determination of the fair values of the assets acquired and the liabilities assumed. The Company anticipates completing the preliminary purchase price allocation in the first fiscal quarter of 2023, which would then be reflected in the Company's January 31, 2023 financial statements. The results of operations of the acquired business will be included in the Company's results from December 15, 2022, the date of the closing of the acquisition. |
SCHEDULE II - Consolidated Valu
SCHEDULE II - Consolidated Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Oct. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - Consolidated Valuation and Qualifying Accounts and Reserves | SCHEDULE II GREIF, INC. AND SUBSIDIARY COMPANIES Consolidated Valuation and Qualifying Accounts and Reserves (Dollars in millions) Description Balance at Charged to Charged to Deductions Balance at End Year ended October 31, 2020: Allowance for doubtful accounts $ 6.8 $ 1.3 $ 1.3 $ — $ 9.4 Year ended October 31, 2021: Allowance for doubtful accounts $ 9.4 $ 2.9 $ (6.2) $ — $ 6.1 Year ended October 31, 2022: Allowance for doubtful accounts $ 6.1 $ 1.3 $ (1.3) $ — $ 6.1 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Business | The Business Greif, Inc. and its subsidiaries (collectively, “Greif,” “our,” or the “Company”), principally manufacture rigid industrial packaging products, such as steel, fibre and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and remanufactured and reconditioned industrial containers, and provides services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Company produces and sells containerboard, corrugated sheets, corrugated containers, and other corrugated products to customers in North America in industries such as packaging, automotive, food and building products. The Company also produces and sells coated recycled paperboard and uncoated recycled paperboard, some of which are used to produce and sell industrial products (tubes and cores, construction products, and protective packaging). In addition, the Company also purchases and sells recycled fiber and produces and sells adhesives used in the Company's paperboard products. In addition, the Company owns timber properties in the southeastern United States which are actively harvested and regenerated. The Company has operations in over 35 countries. Due to the variety of its products, the Company has many customers buying different products and due to the scope of the Company’s sales, no one customer is considered principal in the total operations of the Company. The Company supplies a cross section of industries, such as chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agriculture, pharmaceuticals, minerals, packaging, automotive and building products, and makes spot deliveries on a day-to-day basis as its products are required by its customers. The Company does not operate on a backlog to any significant extent and maintains only limited levels of finished goods. Many customers place their orders weekly for delivery during the same week. The Company’s raw materials are principally steel, resin, containerboard, old corrugated containers, pulpwood, recycled coated and uncoated paperboard and used industrial packaging for reconditioning. There were approximately 12,000 full time employees of the Company as of October 31, 2022. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and majority-owned subsidiaries, joint ventures controlled by the Company or for which the Company is the primary beneficiary and equity earnings of unconsolidated affiliates. All intercompany transactions and balances have been eliminated in consolidation. Investments in unconsolidated affiliates are accounted for using the equity method based on the Company’s ownership interest in the unconsolidated affiliate. The Company’s consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain prior year amounts have been reclassified to conform to the current year presentation. The Company’s fiscal year begins on November 1 and ends on October 31 of the following year. Any references to years or to any quarter of those years, relates to the fiscal year or quarter, as the case may be, ended in that year, unless otherwise stated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Though actual amounts could significantly or materially differ from estimates, the most significant estimates are related to: • Expected useful lives assigned to properties, plants and equipment; • Goodwill and other intangible assets; • Estimates of fair value; • Environmental liabilities; • Pension and post-retirement benefits, including plan assets; • Income taxes; • Net assets held for sale; and • Contingencies. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts totaled $6.1 million and $6.1 million as of October 31, 2022 and 2021, respectively. The Company recognizes allowances for bad debts based on the length of time receivables are past due with allowance percentages, based on its historical experiences, applied on a graduated scale relative to the age of the receivable amounts. If the Company is aware of a specific customer's inability to meet its financial obligations to the Company, the Company records a specific allowance for bad debts. Amounts deemed uncollectible are written-off against the allowance for doubtful accounts. |
Concentration of Credit Risk and Major Customers | Concentration of Credit Risk and Major Customers The Company maintains cash depository accounts with banks throughout the world and invests in high quality short-term liquid instruments. Such investments are made only in instruments issued by high quality institutions and mature within three months. The Company did not incur any losses related to these investments during the years ended October 31, 2022, 2021, and 2020. Trade receivables can be potentially exposed to a concentration of credit risk with customers or in particular industries. Such credit risk is considered by management to be limited due to the Company’s many customers, none of which are considered principal in the total operations of the Company, and its geographic scope of operations in a variety of industries throughout the world. The Company does not have an individual customer that exceeds 10 percent of total revenue. In addition, the Company performs ongoing credit evaluations of its customers’ financial conditions and maintains reserves for credit losses. Such losses historically have been within management’s expectations. |
Inventory | Inventory The Company primarily uses the FIFO method of inventory valuation. Reserves for slow moving and obsolete inventories are provided based on historical experience, inventory aging and product demand. The Company continuously evaluates the adequacy of these reserves and adjusts these reserves as required. |
Net Assets Held for Sale | Net Assets Held for Sale Net assets held for sale represent land, buildings and other assets and liabilities for locations that have met the criteria of “held for sale” accounting, as specified by Accounting Standards Codification ("ASC") 360, “Property, Plant, and Equipment,” at the lower of carrying value or fair value less cost to sell. Fair value is based on the estimated proceeds from the sale of the assets utilizing recent purchase offers, market comparables and/or reliable third party data. The Company's estimate as to fair value is regularly reviewed and assets are subject to changes, such as in the commercial real estate markets and the Company's continuing evaluation as to the asset’s acceptable sale price. The net assets held for sale are being marketed for sale and it is the Company’s intention to complete the sales of these assets within the upcoming year, assuming offers deemed sufficient by management are received as result of marketing efforts. See Note 6 herein for additional information regarding assets and liabilities held for sale. |
Goodwill and Indefinite-Lived Intangibles | Goodwill and Indefinite-Lived Intangibles Goodwill is the excess of the purchase price of an acquired entity over the amounts assigned to tangible and intangible assets and liabilities assumed in the business combination. The Company accounts for goodwill and purchased indefinite-lived intangible assets in accordance with ASC 350, “Intangibles – Goodwill and Other.” Under ASC 350, goodwill and purchased intangible assets with indefinite lives are not amortized, but instead are tested for impairment at least annually. The Company tests for impairment of goodwill and indefinite-lived intangible assets as of August 1, or more frequently if certain indicators are present or changes in circumstances suggest that impairment may exist. In accordance with ASC 350, the Company has the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative test for goodwill impairment. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. The quantitative test for goodwill impairment is conducted at the reporting unit level by comparing the carrying value of each reporting unit to the estimated fair value of the unit. If the carrying value of a reporting unit exceeds its estimated fair value, then the goodwill of the reporting unit is impaired. Goodwill impairment is recognized as the amount that the carrying value exceeds the fair value; not to exceed the balance of goodwill attributable to the reporting unit. When a portion of a reporting unit is disposed of, goodwill is allocated to the gain or loss on that disposition based on the relative fair values of the portion of the reporting unit subject to disposition and the portion of the reporting unit that will be retained. The Company’s determinations of estimated fair value of the reporting units are based on both the market approach and a discounted cash flow analysis utilizing the income approach. Under the market approach, the principal inputs are market prices and valuation multiples for public companies engaged in businesses that are considered comparable to the reporting unit. Under the income approach, the principal inputs are the reporting unit’s cash-generating capabilities and the discount rate. The discount rates used in the income approach are based on a market participant’s weighted average cost of capital. The use of alternative estimates, including different peer groups or changes in the industry, or adjusting the discount rate, earnings before interest, taxes, depreciation, depletion and amortization forecasts or cash flow assumptions used could affect the estimated fair value of the reporting units and potentially result in goodwill impairment. Any identified impairment would result in an expense to the Company’s results of operations. See Note 2 herein for additional information regarding goodwill and other intangible assets. |
Other Intangibles | Other Intangibles The Company accounts for intangible assets in accordance with ASC 350. Definite lived intangible assets are amortized over their useful lives on a straight-line basis. The useful lives for definite lived intangible assets vary depending on the type of asset and the terms of contracts or the valuation performed. Amortization expense on intangible assets is recorded on the straight-line method over their useful lives as follows: Years Trade names 10-15 Customer relationships 5-23 Non-compete agreements 3-10 Other intangibles 7-15 |
Acquisitions | Acquisitions From time to time, the Company acquires businesses and/or assets that augment and complement its operations. In accordance with ASC 805, “Business Combinations,” these acquisitions are accounted for under the purchase method of accounting. Under this method, the Company allocates the fair value of purchase consideration transferred to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the date of the acquisition. The excess purchase consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, is recorded as goodwill. The Company's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of income. Acquisition costs, such as legal and consulting fees, are expensed as incurred. The Company classifies costs incurred in connection with acquisitions and their integration as acquisition and integration related costs. These costs are expensed as incurred and consist primarily of transaction costs, legal and consulting fees, integration costs and changes in the fair value of contingent payments (earn-outs) and are recorded within Acquisition and Integration related Costs line item presented on the consolidated income statement. Acquisition transaction costs are incurred during the initial evaluation of a potential targeted acquisition and primarily relate to costs to analyze, negotiate and consummate the transaction as well as financial and legal due diligence activities. Post-acquisition integration activities are costs incurred to combine the operations of an acquired enterprise into the Company’s operations. The consolidated financial statements include the results of operations from these business combinations from the date of acquisition. |
Internal Use Software | Internal Use Software Internal use software is accounted for under ASC 985, “Software.” Internal use software is software that is acquired, internally developed or modified solely to meet the Company’s needs and for which, during the software’s development or modification, a plan does not exist to market the software externally. Costs incurred to develop the software during the application development stage and for upgrades and enhancements that provide additional functionality are capitalized and then amortized over a three-year period. Internal use software is capitalized as a component of machinery and equipment on the consolidated balance sheets. |
Long-Lived Assets | Long-Lived Assets Properties, plants and equipment are stated at cost. Depreciation on properties, plants and equipment is provided on the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 30 Machinery and equipment 10-15 Depreciation expense was $138.1 million, $164.6 million and $169.1 million in 2022, 2021 and 2020, respectively. Expenditures for repairs and maintenance are charged to expense as incurred. When properties are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and related allowance accounts. Gains or losses are credited or charged to income as incurred. The Company capitalizes interest on long-term fixed asset projects using a rate that approximates the weighted average cost of borrowing. For the years ended October 31, 2022, 2021 and 2020, the Company's capitalized interest costs were not material. The Company tests for impairment of properties, plants and equipment if certain indicators are present to suggest that impairment may exist. Long-lived assets are grouped together at the lowest level, generally at the plant level, for which identifiable cash flows are largely independent of cash flows of other groups of long-lived assets. As events warrant, the Company evaluates the recoverability of long-lived assets, other than goodwill and indefinite-lived intangible assets, by assessing whether the carrying value can be recovered over their remaining useful lives through the expected future undiscounted operating cash flows of the underlying business. Future decisions to change the Company's manufacturing processes, exit certain businesses, reduce excess capacity, temporarily idle facilities and close facilities could also result in material impairment losses. Any impairment loss that may be required is determined by comparing the carrying value of the assets to their estimated fair value. As of October 31, 2022, the Company's timber properties consisted of approximately 175,000 acres, all of which were located in the southeastern United States. The Company’s land costs are maintained by tract. Upon acquisition of a new timberland tract, the Company records separate amounts for land, merchantable timber and pre-merchantable timber allocated as a percentage of the values being purchased. The Company begins recording pre-merchantable timber costs at the time the site is prepared for planting. Costs capitalized during the establishment period include site preparation by aerial spray, costs of seedlings, including refrigeration rental and trucking, planting costs, herbaceous weed control, woody release and labor and machinery use. The Company does not capitalize interest costs in the process. Property taxes are expensed as incurred. New road construction costs are capitalized as land improvements and depreciated over a 10 to 20 year period. Road repairs and maintenance costs are expensed as incurred. Costs after establishment of the seedlings, including management costs, pre-commercial thinning costs and fertilization costs, are expensed as incurred. Once the timber becomes merchantable, the cost is transferred from the pre-merchantable timber category to the merchantable timber category in the depletion block. Merchantable timber costs are maintained by five product classes: pine sawtimber, pine chip-n-saw, pine pulpwood, hardwood sawtimber and hardwood pulpwood, within a depletion block, with each depletion block based upon a geographic district or subdistrict. Currently, the Company has five depletion blocks. These same depletion blocks are used for pre-merchantable timber costs. Each year, the Company estimates the volume of the Company’s merchantable timber for the five product classes by each depletion block and depletion costs recognized upon sales are calculated as volumes sold times the unit costs in the respective depletion block. For the years ended October 31, 2022, 2021 and 2020, the Company's depletion expense was not material. |
Contingencies | Contingencies Various lawsuits, claims and proceedings have been or may be instituted or asserted against the Company, including those pertaining to environmental, product liability and safety and health matters. While the amounts claimed may be substantial, the ultimate liability cannot currently be determined because of the considerable uncertainties that exist. All lawsuits, claims and proceedings are considered by the Company in establishing reserves for contingencies in accordance with ASC 450, “Contingencies.” In accordance with the provisions of ASC 450, the Company accrues for a litigation-related liability when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on currently available information known to the Company, the Company believes that its reserves for these litigation-related liabilities are reasonable and that the ultimate outcome of any pending matters is not likely to have a material effect on the Company’s financial position or results of operations. |
Environmental Cleanup Costs | Environmental Cleanup Costs The Company accounts for environmental cleanup costs in accordance with ASC 410, “Asset Retirement and Environmental Obligations.” The Company expenses environmental expenditures related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. The Company determines its liability on a site-by-site basis and records a liability at the time when it is probable and can be reasonably estimated. The Company’s estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. |
Self-insurance | Self-insurance The Company is self-insured for certain of the claims made under its employee medical and dental insurance programs. The Company had recorded liabilities totaling $7.9 million and $7.4 million for estimated costs related to outstanding claims as of October 31, 2022 and 2021, respectively. These costs include an estimate for expected settlements on pending claims, administrative fees and an estimate for claims incurred but not reported. These estimates are based on management’s assessment of outstanding claims, historical analyses and current payment trends. The Company recorded an estimate for the claims incurred, but not reported using an estimated lag period based upon historical information. The Company has certain deductibles applied to various insurance policies including general liability, product, vehicle and workers’ compensation. The Company maintains net liabilities totaling $24.7 million and $24.0 million for anticipated costs related to general liability, product, vehicle and workers’ compensation claims as of October 31, 2022 and 2021, respectively. These costs include an estimate for expected settlements on pending claims, defense costs and an estimate for claims incurred but not reported. These estimates are based on the Company’s assessment of its deductibles, outstanding claims, historical analysis, actuarial information and current payment trends. |
Income Taxes | Income Taxes Income taxes are accounted for under ASC 740, “Income Taxes.” In accordance with ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as measured by enacted tax rates that are expected to be in effect in the periods when the deferred tax assets and liabilities are expected to be settled or realized. Valuation allowances are established when management believes it is more likely than not that some portion of the deferred tax assets will not be realized. The Company’s effective tax rate is impacted by the amount of income generated in each taxing jurisdiction, statutory tax rates and tax planning opportunities available to the Company in the various jurisdictions in which the Company operates. Significant judgment is required in determining the Company’s effective tax rate and in evaluating its tax positions. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company’s effective tax rate includes the impact of reserve provisions and changes to reserves on uncertain tax positions that are not more likely than not to be sustained upon examination as well as related interest and penalties. A number of years may elapse before a particular matter, for which the Company has established a reserve, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, the Company believes that its reserves reflect |
Restructuring Charges | Restructuring Charges The Company accounts for all exit or disposal activities in accordance with ASC 420, “Exit or Disposal Cost Obligations.” Under ASC 420, a liability is measured at its fair value and recognized as incurred. For termination costs associated with employees who are involuntarily terminated under the terms of a one-time benefit arrangement, the Company recognizes liabilities and associated costs as of announcement date unless the employees are required to stay for a certain period of time after restructuring announcement and ratable recognition between the announcement date and termination date is materially different from announcement date recognition. For termination costs associated with a non-lease contract and costs incurred without economic benefit as a result of restructuring activities, the Company recognizes liabilities and associated costs as of contract termination date. Facility exit and employee relocation costs are recognized and measured at their respective fair value in the period in which the liability is incurred. The liability is not recognized before it is incurred, even if the costs are incremental to other operating costs and will be incurred as a direct result of a plan. |
Revenue Recognition | Revenue Recognition Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for transferring goods or providing services. Customer payment terms are typically less than one year and as such, transaction prices are not adjusted for the effects of a significant financing component. Standalone selling prices for each performance obligation are generally stated in the contract. Variable consideration in the form of volume rebates is estimated based on contract terms and historical experience of actual results limited to the amount which is probable will not result in reversal of cumulative revenue recognized when the variable consideration is resolved. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. For the vast majority of revenues, contracts with customers are either a purchase order or the combination of a purchase order with a master supply agreement. A performance obligation is considered an individual unit sold. The Company does not bundle products. Prices negotiated with each individual customer are representative of the stand-alone selling price of the product. The Company typically satisfies the performance obligation at a point in time when control is transferred to customers. The point in time when control of goods is transferred is largely dependent on delivery terms. Contract liabilities relate primarily to prepayments received from the Company’s customers before revenue is recognized and from volume rebates to customers. These amounts are included in other current liabilities in the consolidated balance sheets. The Company does not have any material contract assets. Freight charged to customers is included in net sales in the statement of income. The Company's contracts with customers are broadly similar in nature throughout its reportable segments, but the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic factors. See Note 13 herein for additional disclosures of revenue disaggregated by geography for each reportable segment. Shipping and Handling Fees and Costs The Company includes shipping and handling fees and costs in cost of products sold. |
Other Expense, net | Other Expense, net Other expense, net primarily represents foreign currency transaction gains and losses, non-service cost components of net periodic post-retirement benefit costs and other infrequent non-operating items. |
Currency Translation | Currency Translation In accordance with ASC 830, “Foreign Currency Matters,” the assets and liabilities denominated in a foreign currency are translated into United States dollars at the rate of exchange existing at period-end, and revenues and expenses are translated at average exchange rates. The cumulative translation adjustments, which represent the effects of translating assets and liabilities of the Company’s international operations, are presented in the consolidated statements of changes in shareholders’ equity in accumulated other comprehensive income (loss). Transaction gains and losses on foreign currency transactions denominated in a currency other |
Derivative Financial Instruments | Derivative Financial Instruments In accordance with ASC 815, “Derivatives and Hedging,” the Company records all derivatives in the consolidated balance sheet as either assets or liabilities measured at fair value. Dependent on the designation of the derivative instrument, changes in fair value are recorded to earnings or shareholders’ equity through other comprehensive income (loss). The Company may from time to time use interest rate swap agreements to hedge against changing interest rates. For interest rate swap agreements designated as cash flow hedges, the net gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company's interest rate swap agreements effectively convert a portion of floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. The Company's cross currency interest rate swap agreements synthetically swap United States ("U.S.") dollar denominated fixed rate debt for Euro denominated fixed rate debt and are designated as either net investment hedges or cash flow hedges for accounting purposes. The gain or loss on the net investment hedge derivative instruments is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted, or liquidated. The gain or loss on the cash flow hedge derivative instruments is included in the unrealized foreign exchange component of other expense, offset by the underlying gain or loss on the underlying cash flows that are being hedged. Interest payments received from the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net on the consolidated statements of income. The Company enters into currency forward contracts to hedge certain currency transactions and short-term intercompany loan balances with its international businesses. Such contracts limit the Company’s exposure to both favorable and unfavorable currency fluctuations. These contracts are adjusted to reflect market value as of each balance sheet date, with the resulting changes in fair value being recognized in other expense, net. Any derivative contract that is either not designated as a hedge, or is so designated but is ineffective, has its changes to market value recognized in earnings immediately. If a cash flow or fair value hedge ceases to qualify for hedge accounting, the contract would continue to be carried on the balance sheet at fair value until settled and have the adjustments to the contract’s fair value recognized in earnings. If a forecasted transaction were no longer probable to occur, amounts previously deferred in accumulated other comprehensive income (loss) would be recognized immediately in earnings. |
Variable Interest Entities | Variable Interest Entities The Company evaluates whether an entity is a variable interest entity (“VIE”) and determines if the primary beneficiary status is appropriate on a quarterly basis. The Company consolidates VIEs for which it is the primary beneficiary. If the Company is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, the Company considers all relevant facts and circumstances, including: the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; the obligation to absorb the expected losses; and/or the right to receive the expected returns of the VIE. |
Fair Value | Fair Value The Company uses ASC 820, “Fair Value Measurements and Disclosures” to account for fair value. ASC 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about assets and liabilities measured at fair value. Additionally, this standard established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows: • Level 1 – Observable inputs such as unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. |
Newly Adopted and Recently Issued Accounting Standards | Newly Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which is intended to simplify accounting for income taxes. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. The Company adopted this ASU on November 1, 2021. The adoption of this guidance did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows or disclosures. Recently Issued Accounting Standards There have been no new accounting pronouncements issued since the filing of the 2021 Form 10-K. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Amortization Expense on Other Intangible Assets | Amortization expense on intangible assets is recorded on the straight-line method over their useful lives as follows: Years Trade names 10-15 Customer relationships 5-23 Non-compete agreements 3-10 Other intangibles 7-15 |
Schedule of Depreciation on Properties, Plants and Equipment | Depreciation on properties, plants and equipment is provided on the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 30 Machinery and equipment 10-15 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill by Segment | The following table summarizes the changes in the carrying amount of goodwill by reportable segment for the years ended October 31, 2022 and 2021: (in millions) Global Industrial Packaging (1) Paper Total Balance at October 31, 2020 $ 750.5 $ 767.9 $ 1,518.4 Goodwill allocated to divestitures and businesses held for sale (0.4) — (0.4) Goodwill adjustments (0.2) — (0.2) Currency translation (2.6) 0.2 (2.4) Balance at October 31, 2021 $ 747.3 $ 768.1 $ 1,515.4 Currency translation (50.7) (0.2) (50.9) Balance at October 31, 2022 $ 696.6 $ 767.9 $ 1,464.5 (1) Accumulated goodwill impairment loss was $63.3 million as of October 31, 2022, 2021 and 2020, related to the Global Industrial Packaging reportable segment. |
Summary of Carrying Amount of Net Intangible Assets by Class | The following table summarizes the carrying amount of net intangible assets by class as of October 31, 2022 and 2021: (in millions) Gross Accumulated Net Intangible October 31, 2022: Indefinite lived: Trademarks and patents $ 7.9 $ — $ 7.9 Definite lived: Customer relationships 834.5 270.0 564.5 Trademarks and patents 8.3 4.6 3.7 Non-compete agreements 0.4 0.4 — Other 0.3 0.2 0.1 Total $ 851.4 $ 275.2 $ 576.2 October 31, 2021: Indefinite lived: Trademarks and patents $ 13.4 $ — $ 13.4 Definite lived: Customer relationships 887.0 259.4 627.6 Trademarks and patents 27.3 20.8 6.5 Non-compete agreements 0.7 0.6 0.1 Other 1.8 1.0 0.8 Total $ 930.2 $ 281.8 $ 648.4 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Reconciliation of Beginning and Ended Restructuring Reserve Balances | The following is a reconciliation of the beginning and ending restructuring reserve balances for the years ended October 31, 2022 and 2021: (in millions) Employee Other Costs Total Balance at October 31, 2020 $ 17.9 $ 3.7 $ 21.6 Costs incurred and charged to expense 14.9 8.2 23.1 Costs paid or otherwise settled (14.2) (10.2) (24.4) Balance at October 31, 2021 $ 18.6 $ 1.7 $ 20.3 Costs incurred and charged to expense 6.3 6.7 13.0 Costs paid or otherwise settled (13.7) (7.3) (21.0) Balance at October 31, 2022 $ 11.2 $ 1.1 $ 12.3 |
Schedule of Reconciliation of Total Amounts Expected to be Incurred from Open Restructuring Plans Anticipated to be Realized | The following is a reconciliation of the total amounts expected to be incurred from open restructuring plans or plans that are being formulated and have not been announced as of the filing date of this Form 10-K. Remaining amounts expected to be incurred were $7.4 million as of October 31, 2022: (in millions) Total Amounts Amounts Incurred During the year ended October 31, 2022 Amounts Global Industrial Packaging: Employee separation costs $ 8.4 $ 4.9 3.5 Other restructuring costs 5.9 4.2 1.7 14.3 9.1 5.2 Paper Packaging & Services: Employee separation costs 2.4 1.4 1.0 Other restructuring costs 3.7 2.5 1.2 6.1 3.9 2.2 Total $ 20.4 $ 13.0 $ 7.4 |
CONSOLIDATION OF VARIABLE INT_2
CONSOLIDATION OF VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Total Net Assets of Paper Packaging JV | The following table presents the Paper Packaging JV total net assets: (in millions) October 31, 2022 October 31, Cash and cash equivalents $ 6.7 $ 5.9 Trade accounts receivable, less allowance of $0.0 in 2022 and $0.0 in 2021 7.0 9.4 Inventories 11.8 10.8 Properties, plants and equipment, net 27.8 31.1 Other assets — 0.5 Total assets $ 53.3 $ 57.7 Accounts payable 3.3 3.4 Other liabilities 2.4 1.7 Total liabilities $ 5.7 $ 5.1 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt is summarized as follows: (in millions) October 31, 2022 October 31, 2021 2022 Credit Agreement - Term Loans $ 1,565.0 $ — 2019 Credit Agreement - Term Loans — 1,247.3 Senior Notes due 2027 — 495.9 Accounts receivable credit facilities 311.4 391.1 2022 Credit Agreement - Revolving Credit Facility 41.9 — 2019 Credit Agreement - Revolving Credit Facility — 50.5 Other debt 0.4 0.6 1,918.7 2,185.4 Less current portion 71.1 120.3 Less deferred financing costs 8.3 10.3 Long-term debt, net $ 1,839.3 $ 2,054.8 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Recurring Fair Value Measurements | The following table presents the fair value of those assets and (liabilities) measured on a recurring basis as of October 31, 2022 and 2021: October 31, 2022 Assets Liabilities (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives $ — $ 72.1 $ — $ 72.1 $ — $ (1.0) $ — $ (1.0) Foreign exchange hedges — — — — — (0.2) — (0.2) Insurance annuity — — 17.8 17.8 — — — — Cross currency swap — 46.8 — 46.8 — — — — October 31, 2021 Assets Liabilities (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives $ — $ 7.6 $ — $ 7.6 $ — $ (16.8) $ — $ (16.8) Foreign exchange hedges — 0.1 — 0.1 — (0.1) — (0.1) Insurance annuity — — 20.9 20.9 — — — — Cross currency swap — 10.2 — 10.2 — (1.2) — (1.2) |
Schedule of Quantitative about Significant Unobservable Inputs Used to Determine Fair Value of Impairment of Long-Lived Assets Held and Used | The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of long-lived assets held and used and net assets held for sale for the twelve months ended October 31, 2022 and 2021: Quantitative Information about Level 3 Fair Value Measurements (in millions) Fair Value of Valuation Unobservable Range October 31, 2022 Impairment of Net Assets Held for Sale $ 62.4 Indicative Bids Indicative Bids N/A Impairment of Long Lived Assets $ 8.6 Discounted Cash Flows, Indicative Bids Discounted Cash Flows, Indicative Bids N/A Total $ 71.0 October 31, 2021 Impairment of Net Assets Held for Sale $ 1.0 Indicative Bids Indicative Bids N/A Impairment of Long Lived Assets $ 7.9 Discounted Cash Flows, Indicative Bids Discounted Cash Flows, Indicative Bids N/A Total $ 8.9 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | The Company has made the following grants of RSUs under the 2020 LTIP: Issuance Date December 16, 2021 December 17, 2020 February 25, 2020 Service Period 11/1/2021 - 10/31/2024 11/1/2020 - 10/31/2023 11/1/2019 - 10/31/2022 RSUs Granted 99,006 139,360 147,325 Weighted Average Fair Value of RSUs $60.54 $48.50 $37.42 |
Schedule of Valuation Assumptions | The following table summarizes the key assumptions used in estimating the value of PSUs: Issuance Date December 16, 2021 December 17, 2020 February 25, 2020 Performance Period 11/1/2021 - 10/31/2024 11/1/2020 - 10/31/2023 11/1/2019 - 10/31/2022 PSUs Issued 162,392 253,102 258,519 Weighted Average Fair Value of PSUs at Issuance Date $60.08 $47.26 $35.58 Weighted Average Fair Value of PSUs at Valuation Date $114.60 $116.94 $121.80 Valuation Date Stock Price $66.21 $66.21 $66.21 Risk-Free Rate 4.3% 4.4% —% Estimated Volatility 34.5% 35.7% —% |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended October 31, (in millions) 2022 2021 2020 Current Federal $ 54.6 $ 45.0 $ (9.7) State and local 19.9 15.5 3.3 Non-U.S. 49.2 56.3 53.0 Total Current 123.7 116.8 46.6 Deferred Federal 12.5 (33.0) 7.9 State and local (6.6) (9.9) 10.2 Non-U.S. 7.5 (4.3) (1.4) Total Deferred 13.4 (47.2) 16.7 Tax expense $ 137.1 $ 69.6 $ 63.3 |
Schedule of Reconciliation of Effective Income Tax Rate | The following is a reconciliation of the provision for income taxes based on the federal statutory rate to the Company’s effective income tax rate: Year Ended October 31, 2022 2021 2020 Federal statutory rate 21.00 % 21.00 % 21.00 % Impact of foreign tax rate differential 2.03 % 0.70 % 0.49 % State and local taxes, net of federal tax benefit 2.01 % 0.93 % 5.71 % Net impact of changes in valuation allowances (1.05) % (2.57) % (15.23) % Non-deductible write-off and impairment of goodwill and other intangible assets — % — % 4.02 % Permanent book-tax differences 1.60 % 0.86 % 16.56 % Withholding taxes 2.33 % 2.86 % 5.28 % Capital losses — % (5.70) % (6.34) % Other items, net (1.83) % (3.56) % 2.52 % Company's effective income tax rate 26.09 % 14.52 % 34.01 % |
Schedule of Significant Components of Company's Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities as of October 31 for the years indicated were as follows: (in millions) 2022 2021 Deferred tax assets Net operating loss and other carryforwards $ 101.8 $ 149.0 Incentive liabilities 28.6 16.2 Workers compensation accruals 9.9 10.5 Inventories 3.6 6.4 Operating lease liabilities 65.5 74.4 State income taxes 10.3 11.6 Other reserves 13.0 18.4 Deferred compensation 2.1 2.2 Other 26.9 36.1 Total deferred tax assets 261.7 324.8 Valuation allowance (105.4) (132.7) Net deferred tax assets $ 156.3 $ 192.1 Deferred tax liabilities Properties, plants and equipment $ 138.4 $ 134.9 Operating lease assets 65.5 74.4 Timberland transactions 51.8 51.0 Goodwill and other intangible assets 174.0 190.2 Pension liabilities 8.4 4.5 Other 51.7 38.4 Total deferred tax liabilities 489.8 493.4 Net deferred tax liability $ 333.5 $ 301.3 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in millions) 2022 2021 2020 Balance of unrecognized tax benefit at November 1 $ 31.0 $ 36.0 $ 38.8 Increases in tax positions for prior years 0.2 1.2 10.1 Decreases in tax positions for prior years — — (10.5) Increases in tax positions for current years 5.9 1.7 2.6 Lapse in statute of limitations (11.4) (8.0) (5.5) Currency translation (1.4) 0.1 0.5 Balance at October 31 $ 24.3 $ 31.0 $ 36.0 |
POST-RETIREMENT BENEFIT PLANS (
POST-RETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Number of Participants in Defined Benefit Plans | The following table presents the number of participants in the defined benefit plans: October 31, 2022 Consolidated United States Germany United Kingdom Netherlands Other Active participants 1,659 1,579 29 — 51 — Vested former employees and deferred members 3,348 2,764 75 366 115 28 Retirees and beneficiaries 3,426 2,102 281 662 330 51 October 31, 2021 Consolidated United States Germany United Netherlands Other Active participants 3,603 1,733 30 — 60 1,780 Vested former employees and deferred members 3,468 2,881 79 366 107 35 Retirees and beneficiaries 3,306 1,962 276 662 354 52 |
Schedule of Actuarial Assumptions Used to Measure Benefit Obligations and Pension Costs | The weighted average assumptions used to measure the year-end benefit obligations as of October 31 were as follows: As of October 31, 2022 2021 Discount rate 5.61 % 2.55 % Rate of compensation increase 2.99 % 2.96 % The weighted average assumptions used to determine the pension cost for the years ended October 31 were as follows: For the year ended October 31, 2022 2021 2020 Discount rate 2.55 % 2.48 % 2.74 % Expected Return on plan assets 3.86 % 3.87 % 4.64 % Rate of compensation increase 2.96 % 2.91 % 2.85 % |
Schedule of Components Of Net Periodic Pension Cost | The components of net periodic pension cost include the following: For the year ended October 31, 2022 Consolidated United States Germany United Netherlands Other (in millions) Service cost $ 11.5 $ 10.0 $ 0.2 $ 0.5 $ 0.5 $ 0.3 Interest cost 19.9 16.1 0.3 2.6 0.5 0.4 Expected return on plan assets (32.5) (27.0) — (3.9) (0.8) (0.8) Amortization of prior service benefit (0.4) (0.3) — — (0.1) — Recognized net actuarial loss 7.7 6.0 0.9 0.6 — 0.2 Special Events Divestiture Charge 1.0 — — — — 1.0 Net periodic pension cost (benefit) $ 7.2 $ 4.8 $ 1.4 $ (0.2) $ 0.1 $ 1.1 For the year ended October 31, 2021 Consolidated United States Germany United Netherlands Other (in millions) Service cost $ 12.1 $ 10.7 $ 0.3 $ 0.5 $ 0.5 $ 0.1 Interest cost 18.8 15.4 0.3 2.5 0.4 0.2 Expected return on plan assets (31.8) (25.8) — (4.6) (0.7) (0.7) Amortization of prior service benefit (0.3) (0.1) — — (0.2) — Recognized net actuarial loss 12.6 10.1 1.3 1.1 — 0.1 Special Events Settlement 9.1 8.8 — 0.3 — — Net periodic pension cost (benefit) $ 20.5 $ 19.1 $ 1.9 $ (0.2) $ — $ (0.3) For the year ended October 31, 2020 Consolidated United States Germany United Netherlands Other (in millions) Service cost $ 12.8 $ 11.5 $ 0.4 $ 0.5 $ 0.3 $ 0.1 Interest cost 25.9 22.4 0.2 2.7 0.3 0.3 Expected return on plan assets (37.9) (31.4) — (5.2) (0.7) (0.6) Amortization of prior service (benefit) cost (0.1) (0.1) — 0.1 (0.1) — Recognized net actuarial loss 13.2 10.2 1.8 1.1 — 0.1 Special Events Settlement 0.3 (0.1) — 0.4 — — Net periodic pension cost (benefit) $ 14.2 $ 12.5 $ 2.4 $ (0.4) $ (0.2) $ (0.1) |
Schedule of Change in Projected Benefit Obligation | The following table sets forth the plans’ change in projected benefit obligation: For the year ended October 31, 2022 Consolidated United States Germany United Netherlands Other (in millions) Change in benefit obligation: Benefit obligation at beginning of year $ 989.2 $ 679.6 $ 39.3 $ 174.1 $ 82.5 $ 13.7 Service cost 11.5 10.0 0.2 0.5 0.5 0.3 Interest cost 19.9 16.1 0.3 2.6 0.5 0.4 Plan participant contributions 0.2 — — — 0.2 — Expenses paid from assets (2.8) (1.9) — (0.8) — (0.1) Actuarial gain (265.9) (188.9) (7.6) (51.2) (17.6) (0.6) Foreign currency effect (40.3) — (5.0) (23.0) (10.2) (2.1) Benefits paid (57.7) (44.6) (1.3) (6.4) (4.5) (0.9) Divestiture (2.4) — — — — (2.4) Benefit obligation at end of year $ 651.7 $ 470.3 $ 25.9 $ 95.8 $ 51.4 $ 8.3 For the year ended October 31, 2021 Consolidated United States Germany United Netherlands Other (in millions) Change in benefit obligation: Benefit obligation at beginning of year $ 1,110.3 $ 782.0 $ 42.1 $ 184.6 $ 90.9 $ 10.7 Service cost 12.1 10.7 0.3 0.5 0.5 0.1 Interest cost 18.8 15.4 0.3 2.5 0.4 0.2 Plan participant contributions 0.2 — — — 0.2 — Expenses paid from assets (3.1) (2.3) — (0.9) 0.2 (0.1) Actuarial loss (gain) 0.3 17.1 (1.5) (11.1) (3.8) (0.4) Foreign currency effect 9.8 — (0.4) 10.9 (0.9) 0.2 Benefits paid (159.9) (143.3) (1.5) (9.0) (5.0) (1.1) Other 0.7 — — (3.4) — 4.1 Benefit obligation at end of year $ 989.2 $ 679.6 $ 39.3 $ 174.1 $ 82.5 $ 13.7 |
Schedule of Benefit Obligations in Excess of Plan Assets | The following tables set forth the PBO, ABO, plan assets and instances where the ABO exceeds the plan assets for the respective years: (in millions) Consolidated United States Germany United Netherlands Other Actuarial value of benefit obligations and plan assets October 31, 2022 Projected benefit obligation $ 651.7 $ 470.3 $ 25.9 $ 95.8 $ 51.4 $ 8.3 Accumulated benefit obligation 636.2 456.1 25.3 95.8 50.7 8.3 Plan assets 624.6 451.1 — 111.6 50.3 11.6 October 31, 2021 Projected benefit obligation $ 989.2 $ 679.6 $ 39.3 $ 174.1 $ 82.5 $ 13.7 Accumulated benefit obligation 961.0 655.4 38.2 174.1 81.2 12.1 Plan assets 950.8 646.4 — 205.4 84.5 14.5 Plans with ABO in excess of Plan assets October 31, 2022 Accumulated benefit obligation $ 106.6 $ 30.6 $ 25.3 $ — $ 50.7 Plan assets 50.3 — — — 50.3 — October 31, 2021 Accumulated benefit obligation $ 75.1 $ 35.3 $ 38.2 $ — $ — $ 1.6 Plan assets — — — — — — |
Schedule of Future Benefit Payments Next Five Years and Thereafter | Future benefit payments for the Company's global plans, which reflect expected future service, as appropriate, during the next five years, and in the aggregate for the five years thereafter, are as follows: (in millions) Expected Year(s) 2023 $ 54.8 2024 54.8 2025 51.7 2026 52.1 2027 53.3 2028-2032 262.1 |
Schedule of Weighted Average Asset Allocations at Measurement Date and Target Asset Allocations | The Company’s weighted average asset allocations at the measurement date and the target asset allocations by category are as follows: Asset Category 2023 Target 2022 Target 2022 Actual Equity securities 20 % 20 % 22 % Debt securities 66 % 66 % 63 % Other 14 % 14 % 15 % Total 100 % 100 % 100 % |
Schedule of Fair Value of the Pension Plans Investments | The fair value of the pension plans’ investments is presented below. The inputs and valuation techniques used to measure the fair value of the assets are consistently applied and described in Note 6 of the Notes to the Consolidated Financial Statements. For the year ended October 31, 2022 Consolidated United States Germany United Netherlands Other (in millions) Change in plan assets: Fair value of plan assets at beginning of year $ 950.8 $ 646.4 $ — $ 205.4 $ 84.5 $ 14.5 Actual return on plan assets (258.4) (179.0) — (62.1) (16.6) (0.7) Expenses paid (2.8) (1.9) — (0.8) — (0.1) Plan participant contributions 0.2 — — — 0.2 — Foreign currency impact (38.8) — — (27.0) (10.3) (1.5) Employer contributions 27.6 28.0 — 2.5 (3.0) 0.1 Benefits paid out of plan (54.0) (42.4) — (6.4) (4.5) (0.7) Fair value of plan assets at end of year $ 624.6 $ 451.1 $ — $ 111.6 $ 50.3 $ 11.6 For the year ended October 31, 2021 Consolidated United States Germany United Netherlands Other (in millions) Change in plan assets: Fair value of plan assets at beginning of year $ 1,002.1 $ 687.0 $ — $ 210.0 $ 92.0 $ 13.1 Actual return on plan assets 77.1 88.4 — (9.8) (3.1) 1.6 Expenses paid (3.1) (2.3) — (0.9) 0.2 (0.1) Plan participant contributions 0.2 — — — 0.2 — Foreign currency impact 12.5 — — 12.4 (0.9) 1.0 Employer contributions 17.8 14.0 — 2.7 1.1 — Benefits paid out of plan (155.8) (140.7) — (9.0) (5.0) (1.1) Fair value of plan assets at end of year $ 950.8 $ 646.4 $ — $ 205.4 $ 84.5 $ 14.5 |
Schedule of Fair Value Measurements for Pension Assets | The following table presents the fair value measurements for the pension assets: Fair Value Measurement As of October 31, 2022 (in millions) Level 1 Level 2 Level 3 Total Asset Category Mutual funds $ 62.9 $ 58.0 $ — $ 120.9 Cash 16.0 — — 16.0 Corporate bonds — 160.5 — 160.5 Government bonds — 51.6 — 51.6 Other assets — 2.0 — 2.0 Total Assets in the Fair Value Hierarchy 78.9 272.1 — 351.0 Investments Measured at Net Asset Value Insurance contracts 72.9 Common stock funds 77.3 Corporate bond funds 123.4 Investments at Fair Value $ 78.9 $ 272.1 $ — $ 624.6 Fair Value Measurement As of October 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Asset Category Mutual funds $ 87.4 $ 128.5 $ — $ 215.9 Common stock 6.6 — — 6.6 Cash 15.7 — — 15.7 Corporate bonds — 228.5 — 228.5 Government bonds — 44.5 — 44.5 Other assets — 1.0 — 1.0 Total Assets in the Fair Value Hierarchy 109.7 402.5 — 512.2 Investments Measured at Net Asset Value Insurance contracts 122.9 Common stock funds 94.2 Corporate bond funds 209.2 Government bond funds 12.3 Investments at Fair Value $ 109.7 $ 402.5 $ — $ 950.8 |
Schedule of Amounts Recognized in Consolidated Financial Statements | Financial statement presentation including other comprehensive income: As of October 31, 2022 Consolidated United States Germany United Netherlands Other (in millions) Unrecognized net actuarial loss $ 93.4 $ 41.0 $ 2.3 $ 43.2 $ 3.9 $ 3.0 Unrecognized prior service credit (1.4) (0.4) — — (1.0) — Accumulated other comprehensive loss - Pre-tax $ 92.0 $ 40.6 $ 2.3 $ 43.2 $ 2.9 $ 3.0 Amounts recognized in the Consolidated Balance Sheets consist of: Prepaid benefit cost $ 30.8 $ 11.7 $ — $ 15.8 $ — $ 3.3 Accrued benefit liability (58.0) (30.8) (25.9) — (1.3) — Accumulated other comprehensive loss - Pre-tax 92.0 40.6 2.3 43.2 2.9 3.0 Net amount recognized $ 64.8 $ 21.5 $ (23.6) $ 59.0 $ 1.6 $ 6.3 As of October 31, 2021 Consolidated United States Germany United Kingdom Netherlands Other (in millions) Unrecognized net actuarial loss $ 87.2 $ 29.9 $ 11.9 $ 36.2 $ 4.4 $ 4.8 Unrecognized prior service cost (credit) (2.0) (0.7) — — (1.3) — Accumulated other comprehensive loss - Pre-tax $ 85.2 $ 29.2 $ 11.9 $ 36.2 $ 3.1 $ 4.8 Amounts recognized in the Consolidated Balance Sheets consist of: Prepaid benefit cost $ 39.9 $ 2.7 $ — $ 31.1 $ 2.0 $ 4.1 Accrued benefit liability (78.3) (35.5) (39.3) — — (3.5) Accumulated other comprehensive loss - Pre-tax 85.2 29.2 11.9 36.2 3.1 4.8 Net amount recognized $ 46.8 $ (3.6) $ (27.4) $ 67.3 $ 5.1 $ 5.4 (in millions) October 31, 2022 October 31, 2021 Accumulated other comprehensive loss at beginning of year $ 85.2 $ 150.6 Increase or (decrease) in accumulated other comprehensive loss Net prior service benefit amortized 0.4 0.3 Net loss amortized (7.7) (12.6) Loss recognized due to settlement — (9.1) Loss recognized due to divestiture (1.0) — Liability loss (265.9) 0.3 Asset loss (gain) 290.8 (45.3) Other adjustments (0.5) (0.9) Increase (decrease) in accumulated other comprehensive loss 16.1 (67.3) Foreign currency impact (9.3) 1.9 Accumulated other comprehensive loss at year end $ 92.0 $ 85.2 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Class Based Basic and Diluted Earnings Per Share | The Company calculates EPS as follows: Basic Class A EPS = 40% * Average Class A Shares Outstanding * Undistributed Net Income + Class A Dividends Per Share 40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding Average Class A Shares Outstanding Diluted Class A EPS = 40% * Average Class A Shares Outstanding * Undistributed Net Income + Class A Dividends Per Share 40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding Average Diluted Class A Shares Outstanding Basic Class B EPS = 60% * Average Class B Shares Outstanding * Undistributed Net Income + Class B Dividends Per Share 40% * Average Class A Shares Outstanding + 60% * Average Class B Shares Outstanding Average Class B Shares Outstanding * Diluted Class B EPS calculation is identical to Basic Class B calculation |
Schedule of Computation of Earnings Per Share Basic and Diluted | The following table provides EPS information for each period, respectively: Year Ended October 31, (in millions, except per share data) 2022 2021 2020 Numerator Numerator for basic and diluted EPS Net income attributable to Greif, Inc. $ 376.7 $ 390.7 $ 108.8 Cash dividends (111.3) (105.8) (104.3) Undistributed net income attributable to Greif, Inc. $ 265.4 $ 284.9 $ 4.5 Denominator Denominator for basic EPS – Class A common stock 26.3 26.5 26.4 Class B common stock 22.0 22.0 22.0 Denominator for diluted EPS – Class A common stock 26.6 26.7 26.4 Class B common stock 22.0 22.0 22.0 EPS Basic Class A common stock $ 6.36 $ 6.57 $ 1.83 Class B common stock $ 9.53 $ 9.84 $ 2.74 EPS Diluted Class A common stock $ 6.30 $ 6.54 $ 1.83 Class B common stock $ 9.53 $ 9.84 $ 2.74 |
Schedule of Company's Class A and Class B Common and Treasury Shares | The following table summarizes the Company’s Class A and Class B common and treasury shares at the specified dates: Authorized Shares Issued Shares Outstanding Treasury Shares October 31, 2022: Class A common stock 128,000,000 42,281,920 25,606,287 16,675,633 Class B common stock 69,120,000 34,560,000 21,836,745 12,723,255 October 31, 2021: Class A common stock 128,000,000 42,281,920 26,550,924 15,730,996 Class B common stock 69,120,000 34,560,000 22,007,725 12,552,275 |
Schedule of Reconciliation of Shares Used to Calculate Basic and Diluted Earnings Per Share | The following is a reconciliation of the shares used to calculate basic and diluted earnings per share: Year Ended October 31, 2022 2021 2020 Class A Common Stock: Basic shares 26,251,536 26,525,529 26,382,838 Assumed conversion of stock options and unvested shares 359,176 133,692 7,805 Diluted shares 26,610,712 26,659,221 26,390,643 Class B Common Stock: Basic and diluted shares 21,995,865 22,007,725 22,007,725 |
LEASES - (Tables)
LEASES - (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The following table presents the lease expense components: Year Ended (in millions) October 31, 2022 October 31, 2021 Operating lease cost $ 64.6 $ 70.4 Other lease cost * 24.6 24.0 Total lease cost $ 89.2 $ 94.4 * Amount includes variable, short-term and finance lease costs. The following table presents other required lease related information: (in millions) October 31, 2022 October 31, 2021 Operating cash flows used for operating leases $ 63.2 $ 70.2 Leased assets obtained in exchange for new operating lease liabilities 22.3 25.0 |
Schedule of Maturities of Operating Lease Liabilities | Future maturity for the Company's lease liabilities, during the next five years, and in the aggregate for the years thereafter, are as follows: (in millions) October 31, 2022 2023 56.9 2024 53.8 2025 44.9 2026 39.3 2027 31.5 Thereafter 108.3 Total lease payments 334.7 Less: Interest (76.4) Lease liabilities $ 258.3 |
Schedule of Weighted-Average Lease Term and Discount Rate | The following table presents the weighted-average lease term and discount rate as of October 31, 2022 and October 31, 2021: October 31, 2022 October 31, 2021 Weighted-average remaining lease term (years) for operating lease liabilities 9.9 10.3 Weighted-average discount rate for operating lease liabilities 3.77 % 3.61 % |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers by Geographic Areas | The following tables present net sales disaggregated by geographic area for each reportable segment for the year ended October 31, 2022: Year Ended October 31, 2022 (in millions) United States Europe, Middle East and Africa Asia Pacific and Other Americas Total Global Industrial Packaging $ 1,287.1 $ 1,700.7 $ 664.6 $ 3,652.4 Paper Packaging & Services 2,630.8 — 44.3 2,675.1 Land Management 22.0 — — 22.0 Total net sales $ 3,939.9 $ 1,700.7 $ 708.9 $ 6,349.5 The following tables present net sales disaggregated by geographic area for each reportable segment for the year ended October 31, 2021: Year Ended October 31, 2021 (in millions) United States Europe, Middle East and Africa Asia Pacific and Other Americas Total Global Industrial Packaging $ 1,044.5 $ 1,673.9 $ 598.3 $ 3,316.7 Paper Packaging & Services 2,182.0 — 36.4 2,218.4 Land Management 21.0 — — 21.0 Total net sales $ 3,247.5 $ 1,673.9 $ 634.7 $ 5,556.1 |
Schedule of Segment Information | The following reportable segment information is presented for each of the three years in the period ended October 31: (in millions) 2022 2021 2020 Operating profit: Global Industrial Packaging $ 313.7 $ 350.2 $ 225.4 Paper Packaging & Services 298.5 131.0 71.0 Land Management 9.0 104.0 8.5 Total operating profit $ 621.2 $ 585.2 $ 304.9 Depreciation, depletion and amortization expense: Global Industrial Packaging $ 73.9 $ 83.1 $ 84.5 Paper Packaging & Services 139.9 148.0 153.5 Land Management 2.8 3.3 4.5 Total depreciation, depletion and amortization expense $ 216.6 $ 234.4 $ 242.5 Capital expenditures: Global Industrial Packaging $ 55.1 $ 71.1 $ 55.8 Paper Packaging & Services 90.6 79.9 61.4 Land Management — 0.2 0.2 Total segment 145.7 151.2 117.4 Corporate and other 16.2 11.0 12.6 Total capital expenditures $ 161.9 $ 162.2 $ 130.0 |
Schedule of Properties, Plants and Equipment, Net by Geographical Area | The following table presents total assets by reportable segment and total long lived assets, net by geographic area: (in millions) October 31, 2022 October 31, 2021 October 31, 2020 Assets: Global Industrial Packaging $ 2,308.4 $ 2,735.1 $ 2,338.5 Paper Packaging & Services 2,473.9 2,506.5 2,524.3 Land Management 250.0 249.2 348.6 Total segment 5,032.3 5,490.8 5,211.4 Corporate and other 437.6 325.0 299.5 Total assets $ 5,469.9 $ 5,815.8 $ 5,510.9 Long lived assets, net*: United States $ 1,314.7 $ 1,321.8 $ 1,345.8 Europe, Middle East, and Africa 303.7 374.5 377.6 Asia Pacific and other Americas 91.3 114.3 111.0 Total properties, plants and equipment, net $ 1,709.7 $ 1,810.6 $ 1,834.4 *includes impact of capitalization of operating lease assets |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the roll forward of accumulated other comprehensive income (loss) for the years ended October 31, 2022 and 2021: (in millions) Foreign Currency Derivative Financial Instruments Minimum Accumulated Balance as of October 31, 2020 $ (294.9) $ (24.7) $ (107.9) $ (427.5) Other Comprehensive Income (Loss) $ (0.5) $ 21.1 $ 50.4 $ 71.0 Balance as of October 31, 2021 $ (295.4) $ (3.6) $ (57.5) $ (356.5) Other Comprehensive Income (Loss) (134.2) 76.4 (1.1) (58.9) Foreign Currency Translation Released from Business Divestment 113.1 — — $ 113.1 Balance as of October 31, 2022 $ (316.5) $ 72.8 $ (58.6) $ (302.3) |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following table provides the rollforward of the redeemable noncontrolling interest for the years ended October 31, 2022 and 2021: (in millions) Redeemable Noncontrolling Interest Balance as of October 31, 2020 $ 20.0 Current period mark to redemption value 2.6 Redeemable noncontrolling interest share of income 2.4 Dividends to redeemable noncontrolling interest and other (0.9) Balance as of October 31, 2021 24.1 Current period mark to redemption value (5.5) Repurchase of redeemable shareholder interest (1.9) Redeemable noncontrolling interest share of income 0.1 Dividends to redeemable noncontrolling interest and other (1.0) Balance as of October 31, 2022 $ 15.8 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) employee in Thousands, a in Thousands | 12 Months Ended | ||
Oct. 31, 2022 USD ($) a employee productClass country block | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Number of countries in which company operates (country) | country | 35 | ||
Approximate number of employees (employees) | employee | 12 | ||
Allowance for trade accounts receivable | $ 6,100,000 | $ 6,100,000 | |
Investment in short term financial instruments, term | 3 months | ||
Losses on short term investments | $ 0 | 0 | $ 0 |
Depreciation expense on properties, plants and equipment | $ 138,100,000 | 164,600,000 | $ 169,100,000 |
Measurement area of timber properties in the south eastern United States which are actively managed in acres | a | 175 | ||
Number of product classes (class) | productClass | 5 | ||
Number of depletion blocks (block) | block | 5 | ||
Self insurance reserve | $ 7,900,000 | 7,400,000 | |
Liabilities for anticipated costs | $ 24,700,000 | $ 24,000,000 | |
Software and Software Development Costs | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Useful life | 3 years | ||
Timber Properties | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Useful life | 10 years | ||
Timber Properties | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Useful life | 20 years |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Amortization Expense on Other Intangible Assets (Details) | 12 Months Ended |
Oct. 31, 2022 | |
Minimum | Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Minimum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 5 years |
Minimum | Non-compete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 3 years |
Minimum | Other intangibles | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 7 years |
Maximum | Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 15 years |
Maximum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 23 years |
Maximum | Non-compete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Maximum | Other intangibles | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 15 years |
BASIS OF PRESENTATION AND SUM_6
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Depreciation on Properties, Plants and Equipment (Details) | 12 Months Ended |
Oct. 31, 2022 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 30 years |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Changes in Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | $ 1,515.4 | $ 1,518.4 | |
Goodwill allocated to divestitures and businesses held for sale | (0.4) | ||
Goodwill adjustments | (0.2) | ||
Currency translation | (50.9) | (2.4) | |
Goodwill ending balance | 1,464.5 | 1,515.4 | |
Accumulated goodwill impairment loss | 63.3 | 63.3 | $ 63.3 |
Global Industrial Packaging | |||
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 747.3 | 750.5 | |
Goodwill allocated to divestitures and businesses held for sale | (0.4) | ||
Goodwill adjustments | (0.2) | ||
Currency translation | (50.7) | (2.6) | |
Goodwill ending balance | 696.6 | 747.3 | |
Paper Packaging & Services | |||
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 768.1 | 767.9 | |
Goodwill allocated to divestitures and businesses held for sale | 0 | ||
Goodwill adjustments | 0 | ||
Currency translation | (0.2) | 0.2 | |
Goodwill ending balance | $ 767.9 | $ 768.1 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Carrying Amount of Net Intangible Assets by Class (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets | $ 7.9 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 851.4 | $ 930.2 |
Accumulated Amortization | 275.2 | 281.8 |
Net Intangible Assets | 576.2 | 648.4 |
Trademarks and patents | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets | 7.9 | 13.4 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 834.5 | 887 |
Accumulated Amortization | 270 | 259.4 |
Net Intangible Assets | 564.5 | 627.6 |
Trademarks and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 8.3 | 27.3 |
Accumulated Amortization | 4.6 | 20.8 |
Net Intangible Assets | 3.7 | 6.5 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 0.4 | 0.7 |
Accumulated Amortization | 0.4 | 0.6 |
Net Intangible Assets | 0 | 0.1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 0.3 | 1.8 |
Accumulated Amortization | 0.2 | 1 |
Net Intangible Assets | $ 0.1 | $ 0.8 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Goodwill [Line Items] | |||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Total | ||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total | ||
Increase (decrease) in gross intangible assets | $ (78,800,000) | ||
Impairment of intangible assets, finite-lived | 59,600,000 | ||
Impairment of indefinite lived intangibles | 4,600,000 | $ 0 | $ 0 |
Amortization expense | 58,200,000 | $ 66,900,000 | $ 69,100,000 |
Future amortization expense, 2023 | 55,400,000 | ||
Future amortization expense, 2024 | 52,200,000 | ||
Future amortization expense, 2025 | 50,200,000 | ||
Future amortization expense, 2026 | 50,100,000 | ||
Future amortization expense, 2027 | 49,900,000 | ||
Value of infinite lived intangible trademarks and trade names related to Blagden Express, Closed-loop, Box Board and Fustiplast | 7,900,000 | ||
Tholu B.V. | |||
Goodwill [Line Items] | |||
Asset disposals | 3,000,000 | ||
Caraustar | |||
Goodwill [Line Items] | |||
Increase intangible assets | $ 11,600,000 |
RESTRUCTURING CHARGES - Reconci
RESTRUCTURING CHARGES - Reconciliation of Beginning and Ended Restructuring Reserve Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 20.3 | $ 21.6 | |
Costs incurred and charged to expense | 13 | 23.1 | $ 38.7 |
Costs paid or otherwise settled | (21) | (24.4) | |
Ending balance | 12.3 | 20.3 | 21.6 |
Employee Separation Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 18.6 | 17.9 | |
Costs incurred and charged to expense | 6.3 | 14.9 | 26.4 |
Costs paid or otherwise settled | (13.7) | (14.2) | |
Ending balance | 11.2 | 18.6 | 17.9 |
Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1.7 | 3.7 | |
Costs incurred and charged to expense | 6.7 | 8.2 | 12.3 |
Costs paid or otherwise settled | (7.3) | (10.2) | |
Ending balance | $ 1.1 | $ 1.7 | $ 3.7 |
RESTRUCTURING CHARGES - Additio
RESTRUCTURING CHARGES - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 USD ($) plant employee | Oct. 31, 2021 USD ($) employee plant | Oct. 31, 2020 USD ($) employee plant | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 13 | $ 23.1 | $ 38.7 |
Number of plants closed (plant) | plant | 17 | 5 | 16 |
Number of employees severed (employee) | employee | 132 | 177 | 658 |
Amounts remaining to be incurred | $ 7.4 | ||
Employee Separation Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 6.3 | $ 14.9 | $ 26.4 |
Other Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 6.7 | $ 8.2 | $ 12.3 |
RESTRUCTURING CHARGES - Recon_2
RESTRUCTURING CHARGES - Reconciliation of Total Amounts Expected to be Incurred from Open Restructuring Plans Anticipated to be Realized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Restructuring and Related Cost [Abstract] | |||
Total Amounts Expected to be Incurred | $ 20.4 | ||
Amounts Incurred During the year ended October 31, 2022 | 13 | $ 23.1 | $ 38.7 |
Amounts Remaining to be Incurred | 7.4 | ||
Employee Separation Costs | |||
Restructuring and Related Cost [Abstract] | |||
Amounts Incurred During the year ended October 31, 2022 | 6.3 | 14.9 | 26.4 |
Other restructuring costs | |||
Restructuring and Related Cost [Abstract] | |||
Amounts Incurred During the year ended October 31, 2022 | 6.7 | $ 8.2 | $ 12.3 |
Global Industrial Packaging | |||
Restructuring and Related Cost [Abstract] | |||
Total Amounts Expected to be Incurred | 14.3 | ||
Amounts Incurred During the year ended October 31, 2022 | 9.1 | ||
Amounts Remaining to be Incurred | 5.2 | ||
Global Industrial Packaging | Employee Separation Costs | |||
Restructuring and Related Cost [Abstract] | |||
Total Amounts Expected to be Incurred | 8.4 | ||
Amounts Incurred During the year ended October 31, 2022 | 4.9 | ||
Amounts Remaining to be Incurred | 3.5 | ||
Global Industrial Packaging | Other restructuring costs | |||
Restructuring and Related Cost [Abstract] | |||
Total Amounts Expected to be Incurred | 5.9 | ||
Amounts Incurred During the year ended October 31, 2022 | 4.2 | ||
Amounts Remaining to be Incurred | 1.7 | ||
Paper Packaging & Services | |||
Restructuring and Related Cost [Abstract] | |||
Total Amounts Expected to be Incurred | 6.1 | ||
Amounts Incurred During the year ended October 31, 2022 | 3.9 | ||
Amounts Remaining to be Incurred | 2.2 | ||
Paper Packaging & Services | Employee Separation Costs | |||
Restructuring and Related Cost [Abstract] | |||
Total Amounts Expected to be Incurred | 2.4 | ||
Amounts Incurred During the year ended October 31, 2022 | 1.4 | ||
Amounts Remaining to be Incurred | 1 | ||
Paper Packaging & Services | Other restructuring costs | |||
Restructuring and Related Cost [Abstract] | |||
Total Amounts Expected to be Incurred | 3.7 | ||
Amounts Incurred During the year ended October 31, 2022 | 2.5 | ||
Amounts Remaining to be Incurred | $ 1.2 |
CONSOLIDATION OF VARIABLE INT_3
CONSOLIDATION OF VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Apr. 01, 2022 | Apr. 30, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 03, 2022 | |
Variable Interest Entity [Line Items] | ||||||
Proceeds from divestiture of businesses | $ 139.2 | $ 2.7 | $ 80.9 | |||
Ownership percentage in variable interest entity | 0% | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Flexible Packaging JV | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash consideration | $ 123 | |||||
Proceeds from divestiture of businesses | 131.6 | |||||
Cash and cash equivalents | $ 24.4 | |||||
Loss on disposal of business | $ 0.6 | |||||
Trading Co. | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage in variable interest entity | 51% | 50% | ||||
Asset Co. | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage in variable interest entity | 49% | |||||
Paper Packaging JV | Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Net loss related to interest expense | $ (0.4) | $ 0.5 | $ (1.8) |
CONSOLIDATION OF VARIABLE INT_4
CONSOLIDATION OF VARIABLE INTEREST ENTITIES - Schedule of Total Net Assets of Paper Packaging JV (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 147.1 | $ 124.6 | |
Trade accounts receivable, less allowance of $0.0 in 2022 and $0.0 in 2021 | 749.1 | 889.5 | |
Properties, plants and equipment, net | 1,455 | 1,521.2 | |
Total assets | 5,469.9 | 5,815.8 | $ 5,510.9 |
Accounts payable | 561.3 | 704.5 | |
Allowance for trade accounts receivable | 6.1 | 6.1 | |
Paper Packaging JV | |||
Variable Interest Entity [Line Items] | |||
Allowance for trade accounts receivable | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary | Paper Packaging JV | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 6.7 | 5.9 | |
Trade accounts receivable, less allowance of $0.0 in 2022 and $0.0 in 2021 | 7 | 9.4 | |
Inventories | 11.8 | 10.8 | |
Properties, plants and equipment, net | 27.8 | 31.1 | |
Other assets | 0 | 0.5 | |
Total assets | 53.3 | 57.7 | |
Accounts payable | 3.3 | 3.4 | |
Other liabilities | 2.4 | 1.7 | |
Total liabilities | $ 5.7 | $ 5.1 |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,918.7 | $ 2,185.4 |
Less current portion | 71.1 | 120.3 |
Less deferred financing costs | 8.3 | 10.3 |
Long-term debt, net | 1,839.3 | 2,054.8 |
2022 Credit Agreement - Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,606.9 | |
Less current portion | 71.1 | |
Long-term debt, net | 1,535.8 | |
Other debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0.4 | 0.6 |
Term Loan | 2022 Credit Agreement - Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,565 | 0 |
Term Loan | 2019 Credit Agreement - Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 1,247.3 |
Domestic Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 311.4 | 391.1 |
Revolving Credit Facility | 2022 Credit Agreement - Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | 41.9 | 0 |
Revolving Credit Facility | 2019 Credit Agreement - Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 50.5 |
Senior Notes | Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 495.9 |
LONG-TERM DEBT - Credit Agreeme
LONG-TERM DEBT - Credit Agreement (Details) - USD ($) | Oct. 31, 2022 | Mar. 01, 2022 | Oct. 31, 2021 | Feb. 11, 2019 |
Debt Instrument [Line Items] | ||||
Amount outstanding under Prior Credit Agreement | $ 1,918,700,000 | $ 2,185,400,000 | ||
Current portion of long-term debt | 71,100,000 | 120,300,000 | ||
Long-term debt | $ 1,839,300,000 | 2,054,800,000 | ||
2022 Credit Agreement - Term Loans | ||||
Debt Instrument [Line Items] | ||||
Actual interest rate on the prior credit agreement | 4.98% | |||
Amount outstanding under Prior Credit Agreement | $ 1,606,900,000 | |||
Current portion of long-term debt | 71,100,000 | |||
Long-term debt | $ 1,535,800,000 | |||
Weighted average interest rate on the prior credit agreement | 2.39% | |||
Deferred financing cost | $ 2,800,000 | |||
2019 Credit Agreement - Term Loans | ||||
Debt Instrument [Line Items] | ||||
Deferred financing cost | 700,000 | |||
Term Loan | Secured Term Loan A-1 Facility | ||||
Debt Instrument [Line Items] | ||||
Amount of debt | $ 1,100,000,000 | |||
Term Loan | Secured Term Loan A-2 Facility | ||||
Debt Instrument [Line Items] | ||||
Amount of debt | 515,000,000 | |||
Senior Notes | Senior Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Amount of debt | $ 500,000,000 | $ 500,000,000 | ||
Actual interest rate on the prior credit agreement | 6.50% | |||
Amount outstanding under Prior Credit Agreement | 0 | 495,900,000 | ||
Deferred financing cost | $ 1,800,000 | |||
Revolving Credit Facility | 2022 Credit Agreement - Term Loans | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding under Prior Credit Agreement | 41,900,000 | 0 | ||
Debt issuance costs | 3,700,000 | |||
Revolving Credit Facility | 2019 Credit Agreement - Term Loans | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding under Prior Credit Agreement | 0 | $ 50,500,000 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Credit facility borrowing capacity | 800,000,000 | |||
Multicurrency Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Credit facility borrowing capacity | 725,000,000 | |||
U.S. Dollar Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Credit facility borrowing capacity | $ 75,000,000 | |||
Term Loan | 2022 Credit Agreement - Term Loans | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 8,300,000 |
LONG-TERM DEBT - Senior Notes (
LONG-TERM DEBT - Senior Notes (Details) - Senior Notes due 2027 - Senior Notes - USD ($) | Mar. 01, 2022 | Feb. 11, 2019 |
Debt Instrument [Line Items] | ||
Amount of debt | $ 500,000,000 | $ 500,000,000 |
Debt instrument, repurchase amount | 516,300,000 | |
Repurchase face amount | 500,000,000 | |
Debt instrument, unamortized premium | 16,300,000 | |
Deferred financing cost | 1,800,000 | |
Debt instrument, unamortized discount | $ 3,800,000 |
LONG-TERM DEBT - United States
LONG-TERM DEBT - United States Trade Accounts Receivable Credit Facility (Details) - United States Trade Accounts Receivable Credit Facility - USD ($) | Oct. 31, 2022 | May 17, 2022 |
Debt Instrument [Line Items] | ||
Credit facility borrowing capacity | $ 300,000,000 | |
Domestic Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 215,000,000 |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) € in Millions, $ in Millions | Oct. 31, 2022 USD ($) | Oct. 31, 2022 EUR (€) | Oct. 31, 2021 USD ($) |
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,918.7 | $ 2,185.4 | |
Short-term borrowings | 5.7 | $ 50.5 | |
Annual maturities, long-term debt, 2022 | 424.8 | ||
Annual maturities, long-term debt, 2023 | 80.8 | ||
Annual maturities, long-term debt, 2024 | 80.8 | ||
Annual maturities, long-term debt, 2025 | 80.8 | ||
Annual maturities, long-term debt, 2026 | 1,251.5 | ||
Annual maturities, long-term debt, thereafter | 0 | ||
European RPA | |||
Debt Instrument [Line Items] | |||
Financing receivable maximum amount under receivable purchase agreement | 99.6 | € 100 | |
International Trade Accounts Receivable Credit Facilities | European RPA | Foreign Line of Credit | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 96.4 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 72.1 | $ 7.6 |
Liabilities | (1) | (16.8) |
Foreign exchange hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0.1 |
Liabilities | (0.2) | (0.1) |
Insurance annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 17.8 | 20.9 |
Liabilities | 0 | 0 |
Cross currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 46.8 | 10.2 |
Liabilities | 0 | (1.2) |
Level 1 | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 1 | Foreign exchange hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 1 | Insurance annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 1 | Cross currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 2 | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 72.1 | 7.6 |
Liabilities | (1) | (16.8) |
Level 2 | Foreign exchange hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0.1 |
Liabilities | (0.2) | (0.1) |
Level 2 | Insurance annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 2 | Cross currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 46.8 | 10.2 |
Liabilities | 0 | (1.2) |
Level 3 | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 3 | Foreign exchange hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 3 | Insurance annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 17.8 | 20.9 |
Liabilities | 0 | 0 |
Level 3 | Cross currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jan. 03, 2022 | Jan. 31, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Dec. 16, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Losses recorded under fair value contracts | $ (6,200,000) | $ 400,000 | $ (3,200,000) | |||
Unrealized gain (loss) on foreign currency | (200,000) | 0 | (100,000) | |||
Interest income (expense), net | (61,200,000) | (92,700,000) | (115,800,000) | |||
Non-cash asset impairment charges | 71,000,000 | 8,900,000 | 18,500,000 | |||
Long-lived assets | 4,000,000 | 9,900,000 | 36,400,000 | |||
Long-lived assets, fair value | 1,000,000 | $ 17,900,000 | ||||
Impairment of long lived assets | 4,000,000 | 8,900,000 | ||||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Non-cash asset impairment charges | |||||
Goodwill | 1,464,500,000 | 1,515,400,000 | $ 1,518,400,000 | |||
Goodwill impairment charges | 0 | 0 | 0 | |||
Impairment of indefinite lived intangibles | 4,600,000 | 0 | 0 | |||
Land and building | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Impairment of assets held for sale | $ 62,400,000 | |||||
Flexible Packaging JV | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Percent divested from joint venture | 50% | |||||
2020 Divestiture | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Goodwill | 35,600,000 | |||||
Global Industrial Packaging | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Impairment of long lived assets | 2,300,000 | 2,700,000 | 5,100,000 | |||
Impairment of intangible assets | 1,200,000 | 900,000 | ||||
Goodwill | 696,600,000 | 747,300,000 | 750,500,000 | |||
Paper Packaging & Services | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Impairment of long lived assets | 1,700,000 | 5,000,000 | 12,500,000 | |||
Goodwill | 767,900,000 | 768,100,000 | 767,900,000 | |||
Interest rate derivatives | Cash Flow Hedging | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative notional amount | $ 1,150,000,000 | |||||
Interest rate | 2.50% | |||||
Other comprehensive loss, cash flow hedge, gain (loss), before reclassification and tax | $ (8,400,000) | (18,100,000) | (16,500,000) | |||
Derivative loss | 26,100,000 | |||||
Interest rate derivatives | Cash Flow Hedging | Subsequent Event | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative notional amount | $ 100,000,000 | |||||
Foreign Currency Forward Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative notional amount | 132,100,000 | 81,800,000 | ||||
Cross currency swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative notional amount | $ 334,400,000 | |||||
Derivative, interest rate | 1.56% | |||||
Interest income (expense), net | $ 5,800,000 | $ 2,200,000 | $ 2,400,000 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Summary of Quantitative about Significant Unobservable Inputs Used to Determine Fair Value of Impairment of Long-Lived Assets Held and Used (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of Long Lived Assets | $ 4 | $ 8.9 | ||
Total | 71 | 8.9 | $ 18.5 | |
Land and building | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of Net Assets Held for Sale | $ 62.4 | |||
Land and building | Indicative Bids | Level 3 | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of Net Assets Held for Sale | 62.4 | 1 | ||
Machinery and equipment | Discounted Cash Flows, Indicative Bids | Level 3 | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of Long Lived Assets | $ 8.6 | $ 7.9 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 48 Months Ended | |||||
Dec. 16, 2021 | Dec. 17, 2020 | Feb. 25, 2020 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation expense | $ 34.4 | $ 34.1 | $ (1.2) | ||||
2020 Long Term Incentive Plan Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Long-term incentive plan, requisite service period | 3 years | 3 years | |||||
2005 Director Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options granted (shares) | 0 | 0 | 0 | ||||
Number of shares forfeited | 0 | 0 | 0 | ||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs Granted (shares) | 99,006,000 | 139,360,000 | 147,325,000 | ||||
Weighted average fair value of RSUs (in dollars per share) | $ 60.54 | $ 48.50 | $ 37.42 | ||||
Restricted Stock Units (RSUs) | 2020 Long Term Incentive Plan Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Performance Shares | Scenario, Forecast | 2020 Long Term Incentive Plan Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Long-term incentive plan, requisite service period | 3 years | ||||||
Long Term Incentive Plan Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation expense | $ 33.1 | $ 32.8 | $ (2.4) | ||||
Restricted Stock | Long Term Incentive Plan Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Long-term incentive plan, requisite service period | 3 years | 3 years | 3 years | ||||
RSUs Granted (shares) | 51,593 | 80,252 | |||||
Percent of award payable in cash | 50% | ||||||
Percent of award payable in equity instruments | 50% | ||||||
Weighted average fair value of RSUs (in dollars per share) | $ 59.83 | $ 50.08 | |||||
2005 Outside Directors Equity Award Plan Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation expense | $ 1.3 | $ 1.2 | $ 1.1 | ||||
RSUs Granted (shares) | 22,221 | 25,686 | |||||
Weighted average fair value of RSUs (in dollars per share) | $ 57.49 | $ 47.29 |
STOCK-BASED COMPENSATION - Key
STOCK-BASED COMPENSATION - Key Assumptions (Details) - $ / shares shares in Thousands | 12 Months Ended | ||||||
Dec. 16, 2021 | Dec. 17, 2020 | Oct. 17, 2020 | Feb. 25, 2020 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk-Free Rate | 4.30% | 4.40% | 0% | ||||
Estimated Volatility | 34.50% | 35.70% | 0% | ||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted Average Fair Value of PSUs at Issuance Date (in dollars per share) | $ 60.54 | $ 48.50 | $ 37.42 | ||||
Phantom Share Units (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
PSUs Issued (in shares) | 162,392 | 253,102 | 258,519 | ||||
Weighted Average Fair Value of PSUs at Issuance Date (in dollars per share) | $ 60.08 | $ 47.26 | $ 35.58 | ||||
Weighted Average Fair Value of PSUs at Valuation Date (in dollars per share) | $ 114.60 | $ 116.94 | $ 121.80 | ||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Valuation Date Stock Price (in dollars per share) | $ 66.21 | ||||||
Performance Shares | 2020 Long Term Incentive Plan Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Valuation Date Stock Price (in dollars per share) | $ 66.21 | $ 66.21 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Current | |||
Federal | $ 54.6 | $ 45 | $ (9.7) |
State and local | 19.9 | 15.5 | 3.3 |
Non-U.S. | 49.2 | 56.3 | 53 |
Total Current | 123.7 | 116.8 | 46.6 |
Deferred | |||
Federal | 12.5 | (33) | 7.9 |
State and local | (6.6) | (9.9) | 10.2 |
Non-U.S. | 7.5 | (4.3) | (1.4) |
Total Deferred | 13.4 | (47.2) | 16.7 |
Tax expense | $ 137.1 | $ 69.6 | $ 63.3 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Income (loss) before income tax expense | $ 525,700,000 | $ 478,600,000 | $ 186,100,000 |
Book impairment loss | 58,600,000 | ||
Net operating loss and other carryforwards | 101,800,000 | 149,000,000 | |
Operating loss carryforwards, U.S. Federal | 4,400,000 | 12,300,000 | |
Operating loss carryforwards, State | 12,200,000 | 21,800,000 | |
Operating loss carryforwards, Non-U.S. | 85,200,000 | 110,400,000 | |
Valuation allowance | 105,400,000 | 132,700,000 | |
Increase (decrease) in valuation allowances | 27,300,000 | ||
Unrecognized tax benefits | 24,300,000 | 31,000,000 | 36,000,000 |
Accrued interest and penalties related to unrecognized tax benefits | 4,800,000 | 7,700,000 | |
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Net decrease in unrecognized tax benefits for the next 12 months | 4,600,000 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Income (loss) before income tax expense | 333,500,000 | 239,300,000 | 25,500,000 |
Valuation allowance | 13,000,000 | 15,900,000 | |
Non-U.S. | |||
Operating Loss Carryforwards [Line Items] | |||
Income (loss) before income tax expense | 192,200,000 | 239,200,000 | $ 160,400,000 |
Valuation allowance | $ 92,400,000 | $ 116,800,000 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
Impact of foreign tax rate differential | 2.03% | 0.70% | 0.49% |
State and local taxes, net of federal tax benefit | 2.01% | 0.93% | 5.71% |
Net impact of changes in valuation allowances | (1.05%) | (2.57%) | (15.23%) |
Non-deductible write-off and impairment of goodwill and other intangible assets | 0% | 0% | 4.02% |
Permanent book-tax differences | 1.60% | 0.86% | 16.56% |
Withholding taxes | 2.33% | 2.86% | 5.28% |
Capital losses | 0% | (5.70%) | (6.34%) |
Other items, net | (1.83%) | (3.56%) | 2.52% |
Company's effective income tax rate | 26.09% | 14.52% | 34.01% |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Deferred tax assets | ||
Net operating loss and other carryforwards | $ 101.8 | $ 149 |
Incentive liabilities | 28.6 | 16.2 |
Workers compensation accruals | 9.9 | 10.5 |
Inventories | 3.6 | 6.4 |
Operating lease liabilities | 65.5 | 74.4 |
State income taxes | 10.3 | 11.6 |
Other reserves | 13 | 18.4 |
Deferred compensation | 2.1 | 2.2 |
Other | 26.9 | 36.1 |
Total deferred tax assets | 261.7 | 324.8 |
Valuation allowance | (105.4) | (132.7) |
Net deferred tax assets | 156.3 | 192.1 |
Deferred tax liabilities | ||
Properties, plants and equipment | 138.4 | 134.9 |
Operating lease assets | 65.5 | 74.4 |
Timberland transactions | 51.8 | 51 |
Goodwill and other intangible assets | 174 | 190.2 |
Pension liabilities | 8.4 | 4.5 |
Other | 51.7 | 38.4 |
Total deferred tax liabilities | 489.8 | 493.4 |
Net deferred tax liability | $ 333.5 | $ 301.3 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance of unrecognized tax benefit at November 1 | $ 31 | $ 36 | $ 38.8 |
Increases in tax positions for prior years | 0.2 | 1.2 | 10.1 |
Decreases in tax positions for prior years | 0 | 0 | (10.5) |
Increases in tax positions for current years | 5.9 | 1.7 | 2.6 |
Lapse in statute of limitations | (11.4) | (8) | (5.5) |
Currency translation | (1.4) | 0.1 | 0.5 |
Balance at October 31 | $ 24.3 | $ 31 | $ 36 |
POST-RETIREMENT BENEFIT PLANS -
POST-RETIREMENT BENEFIT PLANS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company's pension contributions | $ 31.4 | ||
Expected return on plan assets | 3.86% | 3.87% | 4.64% |
401 (k) Savings Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions to 401(k) plans | $ 24.4 | $ 21.9 | $ 25.2 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's pension contributions | 27.7 | 21.9 | 26.4 |
Company's pension contributions paid directly by the Company | 3.7 | ||
Company's estimated pension contributions | 28.4 | ||
Projected benefit obligation | 651.7 | 989.2 | 1,110.3 |
Loss on settlement | 1 | 9.1 | 0.3 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, annuity | 98.8 | ||
Lump sum payments | 13.9 | ||
Decrease for settlement | 112.7 | ||
United States | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Flexible Packaging JV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 2.4 | ||
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 470.3 | 679.6 | 782 |
Loss on settlement | 0 | 8.8 | (0.1) |
United Kingdom | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 95.8 | 174.1 | 184.6 |
Loss on settlement | $ 0 | $ 0.3 | $ 0.4 |
POST-RETIREMENT BENEFIT PLANS_2
POST-RETIREMENT BENEFIT PLANS - Number of Participants in Defined Benefit Plans (Details) - Pension Plan - participant | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Active participants | 1,659 | 3,603 |
Vested former employees and deferred members | 3,348 | 3,468 |
Retirees and beneficiaries | 3,426 | 3,306 |
United States | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Active participants | 1,579 | 1,733 |
Vested former employees and deferred members | 2,764 | 2,881 |
Retirees and beneficiaries | 2,102 | 1,962 |
Germany | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Active participants | 29 | 30 |
Vested former employees and deferred members | 75 | 79 |
Retirees and beneficiaries | 281 | 276 |
United Kingdom | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Active participants | 0 | 0 |
Vested former employees and deferred members | 366 | 366 |
Retirees and beneficiaries | 662 | 662 |
Netherlands | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Active participants | 51 | 60 |
Vested former employees and deferred members | 115 | 107 |
Retirees and beneficiaries | 330 | 354 |
Other International | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Active participants | 0 | 1,780 |
Vested former employees and deferred members | 28 | 35 |
Retirees and beneficiaries | 51 | 52 |
POST-RETIREMENT BENEFIT PLANS_3
POST-RETIREMENT BENEFIT PLANS - Actuarial Assumptions Used to Measure Benefit Obligations (Details) | Oct. 31, 2022 | Oct. 31, 2021 |
Retirement Benefits [Abstract] | ||
Discount rate | 5.61% | 2.55% |
Rate of compensation increase | 2.99% | 2.96% |
POST-RETIREMENT BENEFIT PLANS_4
POST-RETIREMENT BENEFIT PLANS - Actuarial Assumptions Used to Measure Pension Costs (Details) (Details) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Discount rate | 2.55% | 2.48% | 2.74% |
Expected Return on plan assets | 3.86% | 3.87% | 4.64% |
Rate of compensation increase | 2.96% | 2.91% | 2.85% |
POST-RETIREMENT BENEFIT PLANS_5
POST-RETIREMENT BENEFIT PLANS - Components of Net Periodic Cost for Postretirement Benefits (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 11.5 | $ 12.1 | $ 12.8 |
Interest cost | 19.9 | 18.8 | 25.9 |
Expected return on plan assets | (32.5) | (31.8) | (37.9) |
Amortization of prior service benefit | (0.4) | (0.3) | (0.1) |
Recognized net actuarial loss | 7.7 | 12.6 | 13.2 |
Special Events | |||
Divestiture Charge | 1 | 9.1 | 0.3 |
Net periodic pension cost (benefit) | 7.2 | 20.5 | 14.2 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 10 | 10.7 | 11.5 |
Interest cost | 16.1 | 15.4 | 22.4 |
Expected return on plan assets | (27) | (25.8) | (31.4) |
Amortization of prior service benefit | (0.3) | (0.1) | (0.1) |
Recognized net actuarial loss | 6 | 10.1 | 10.2 |
Special Events | |||
Divestiture Charge | 0 | 8.8 | (0.1) |
Net periodic pension cost (benefit) | 4.8 | 19.1 | 12.5 |
Germany | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.2 | 0.3 | 0.4 |
Interest cost | 0.3 | 0.3 | 0.2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service benefit | 0 | 0 | 0 |
Recognized net actuarial loss | 0.9 | 1.3 | 1.8 |
Special Events | |||
Divestiture Charge | 0 | 0 | 0 |
Net periodic pension cost (benefit) | 1.4 | 1.9 | 2.4 |
United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.5 | 0.5 | 0.5 |
Interest cost | 2.6 | 2.5 | 2.7 |
Expected return on plan assets | (3.9) | (4.6) | (5.2) |
Amortization of prior service benefit | 0 | 0 | 0.1 |
Recognized net actuarial loss | 0.6 | 1.1 | 1.1 |
Special Events | |||
Divestiture Charge | 0 | 0.3 | 0.4 |
Net periodic pension cost (benefit) | (0.2) | (0.2) | (0.4) |
Netherlands | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.5 | 0.5 | 0.3 |
Interest cost | 0.5 | 0.4 | 0.3 |
Expected return on plan assets | (0.8) | (0.7) | (0.7) |
Amortization of prior service benefit | (0.1) | (0.2) | (0.1) |
Recognized net actuarial loss | 0 | 0 | 0 |
Special Events | |||
Divestiture Charge | 0 | 0 | 0 |
Net periodic pension cost (benefit) | 0.1 | 0 | (0.2) |
Other International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.3 | 0.1 | 0.1 |
Interest cost | 0.4 | 0.2 | 0.3 |
Expected return on plan assets | (0.8) | (0.7) | (0.6) |
Amortization of prior service benefit | 0 | 0 | 0 |
Recognized net actuarial loss | 0.2 | 0.1 | 0.1 |
Special Events | |||
Divestiture Charge | 1 | 0 | 0 |
Net periodic pension cost (benefit) | $ 1.1 | $ (0.3) | $ (0.1) |
POST-RETIREMENT BENEFIT PLANS_6
POST-RETIREMENT BENEFIT PLANS - Change in Projected Benefit Obligation (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 989.2 | $ 1,110.3 | |
Service cost | 11.5 | 12.1 | $ 12.8 |
Interest cost | 19.9 | 18.8 | 25.9 |
Plan participant contributions | 0.2 | 0.2 | |
Expenses paid from assets | (2.8) | (3.1) | |
Actuarial gain | (265.9) | 0.3 | |
Foreign currency effect | (40.3) | 9.8 | |
Benefits paid | (57.7) | (159.9) | |
Divestiture | (2.4) | ||
Other | 0.7 | ||
Benefit obligation at end of year | 651.7 | 989.2 | 1,110.3 |
United States | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 679.6 | 782 | |
Service cost | 10 | 10.7 | 11.5 |
Interest cost | 16.1 | 15.4 | 22.4 |
Plan participant contributions | 0 | 0 | |
Expenses paid from assets | (1.9) | (2.3) | |
Actuarial gain | (188.9) | 17.1 | |
Foreign currency effect | 0 | 0 | |
Benefits paid | (44.6) | (143.3) | |
Divestiture | 0 | ||
Other | 0 | ||
Benefit obligation at end of year | 470.3 | 679.6 | 782 |
Germany | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 39.3 | 42.1 | |
Service cost | 0.2 | 0.3 | 0.4 |
Interest cost | 0.3 | 0.3 | 0.2 |
Plan participant contributions | 0 | 0 | |
Expenses paid from assets | 0 | 0 | |
Actuarial gain | (7.6) | (1.5) | |
Foreign currency effect | (5) | (0.4) | |
Benefits paid | (1.3) | (1.5) | |
Divestiture | 0 | ||
Other | 0 | ||
Benefit obligation at end of year | 25.9 | 39.3 | 42.1 |
United Kingdom | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 174.1 | 184.6 | |
Service cost | 0.5 | 0.5 | 0.5 |
Interest cost | 2.6 | 2.5 | 2.7 |
Plan participant contributions | 0 | 0 | |
Expenses paid from assets | (0.8) | (0.9) | |
Actuarial gain | (51.2) | (11.1) | |
Foreign currency effect | (23) | 10.9 | |
Benefits paid | (6.4) | (9) | |
Divestiture | 0 | ||
Other | (3.4) | ||
Benefit obligation at end of year | 95.8 | 174.1 | 184.6 |
Netherlands | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 82.5 | 90.9 | |
Service cost | 0.5 | 0.5 | 0.3 |
Interest cost | 0.5 | 0.4 | 0.3 |
Plan participant contributions | 0.2 | 0.2 | |
Expenses paid from assets | 0 | 0.2 | |
Actuarial gain | (17.6) | (3.8) | |
Foreign currency effect | (10.2) | (0.9) | |
Benefits paid | (4.5) | (5) | |
Divestiture | 0 | ||
Other | 0 | ||
Benefit obligation at end of year | 51.4 | 82.5 | 90.9 |
Other International | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 13.7 | 10.7 | |
Service cost | 0.3 | 0.1 | 0.1 |
Interest cost | 0.4 | 0.2 | 0.3 |
Plan participant contributions | 0 | 0 | |
Expenses paid from assets | (0.1) | (0.1) | |
Actuarial gain | (0.6) | (0.4) | |
Foreign currency effect | (2.1) | 0.2 | |
Benefits paid | (0.9) | (1.1) | |
Divestiture | (2.4) | ||
Other | 4.1 | ||
Benefit obligation at end of year | $ 8.3 | $ 13.7 | $ 10.7 |
POST-RETIREMENT BENEFIT PLANS_7
POST-RETIREMENT BENEFIT PLANS - Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets | $ 624.6 | $ 950.8 | |
Pension Plan | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation | 651.7 | 989.2 | $ 1,110.3 |
Accumulated benefit obligation | 636.2 | 961 | |
Plan assets | 624.6 | 950.8 | 1,002.1 |
Accumulated benefit obligation | 106.6 | 75.1 | |
Plan assets | 50.3 | 0 | |
Pension Plan | United States | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation | 470.3 | 679.6 | 782 |
Accumulated benefit obligation | 456.1 | 655.4 | |
Plan assets | 451.1 | 646.4 | 687 |
Accumulated benefit obligation | 30.6 | 35.3 | |
Plan assets | 0 | 0 | |
Pension Plan | Germany | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation | 25.9 | 39.3 | 42.1 |
Accumulated benefit obligation | 25.3 | 38.2 | |
Plan assets | 0 | 0 | 0 |
Accumulated benefit obligation | 25.3 | 38.2 | |
Plan assets | 0 | 0 | |
Pension Plan | United Kingdom | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation | 95.8 | 174.1 | 184.6 |
Accumulated benefit obligation | 95.8 | 174.1 | |
Plan assets | 111.6 | 205.4 | 210 |
Accumulated benefit obligation | 0 | 0 | |
Plan assets | 0 | 0 | |
Pension Plan | Netherlands | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation | 51.4 | 82.5 | 90.9 |
Accumulated benefit obligation | 50.7 | 81.2 | |
Plan assets | 50.3 | 84.5 | 92 |
Accumulated benefit obligation | 50.7 | 0 | |
Plan assets | 50.3 | 0 | |
Pension Plan | Other International | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation | 8.3 | 13.7 | 10.7 |
Accumulated benefit obligation | 8.3 | 12.1 | |
Plan assets | 11.6 | 14.5 | $ 13.1 |
Accumulated benefit obligation | 1.6 | ||
Plan assets | $ 0 | $ 0 |
POST-RETIREMENT BENEFIT PLANS_8
POST-RETIREMENT BENEFIT PLANS - Future Benefit Payments Next Five Years and Thereafter (Details) - Pension Plan $ in Millions | Oct. 31, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 54.8 |
2024 | 54.8 |
2025 | 51.7 |
2026 | 52.1 |
2027 | 53.3 |
2028-2032 | $ 262.1 |
POST-RETIREMENT BENEFIT PLANS_9
POST-RETIREMENT BENEFIT PLANS - Weighted Average Asset Allocations at Measurement Date and Target Asset Allocations (Details) | Oct. 31, 2022 | Oct. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total, Target | 100% | 100% |
Total, Actual | 100% | |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total, Target | 20% | 20% |
Total, Actual | 22% | |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total, Target | 66% | 66% |
Total, Actual | 63% | |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total, Target | 14% | 14% |
Total, Actual | 15% |
POST-RETIREMENT BENEFIT PLAN_10
POST-RETIREMENT BENEFIT PLANS - Fair Value of the Pension Plans Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | $ 950.8 | |
Fair value of plan assets at end of year | 624.6 | $ 950.8 |
Pension Plan | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 950.8 | 1,002.1 |
Actual return on plan assets | (258.4) | 77.1 |
Expenses paid | (2.8) | (3.1) |
Plan participant contributions | 0.2 | 0.2 |
Foreign currency impact | (38.8) | 12.5 |
Employer contributions | 27.6 | 17.8 |
Benefits paid out of plan | (54) | (155.8) |
Fair value of plan assets at end of year | 624.6 | 950.8 |
United States | Pension Plan | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 646.4 | 687 |
Actual return on plan assets | (179) | 88.4 |
Expenses paid | (1.9) | (2.3) |
Plan participant contributions | 0 | 0 |
Foreign currency impact | 0 | 0 |
Employer contributions | 28 | 14 |
Benefits paid out of plan | (42.4) | (140.7) |
Fair value of plan assets at end of year | 451.1 | 646.4 |
Germany | Pension Plan | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Expenses paid | 0 | 0 |
Plan participant contributions | 0 | 0 |
Foreign currency impact | 0 | 0 |
Employer contributions | 0 | 0 |
Benefits paid out of plan | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 |
United Kingdom | Pension Plan | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 205.4 | 210 |
Actual return on plan assets | (62.1) | (9.8) |
Expenses paid | (0.8) | (0.9) |
Plan participant contributions | 0 | 0 |
Foreign currency impact | (27) | 12.4 |
Employer contributions | 2.5 | 2.7 |
Benefits paid out of plan | (6.4) | (9) |
Fair value of plan assets at end of year | 111.6 | 205.4 |
Netherlands | Pension Plan | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 84.5 | 92 |
Actual return on plan assets | (16.6) | (3.1) |
Expenses paid | 0 | 0.2 |
Plan participant contributions | 0.2 | 0.2 |
Foreign currency impact | (10.3) | (0.9) |
Employer contributions | (3) | 1.1 |
Benefits paid out of plan | (4.5) | (5) |
Fair value of plan assets at end of year | 50.3 | 84.5 |
Other International | Pension Plan | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 14.5 | 13.1 |
Actual return on plan assets | (0.7) | 1.6 |
Expenses paid | (0.1) | (0.1) |
Plan participant contributions | 0 | 0 |
Foreign currency impact | (1.5) | 1 |
Employer contributions | 0.1 | 0 |
Benefits paid out of plan | (0.7) | (1.1) |
Fair value of plan assets at end of year | $ 11.6 | $ 14.5 |
POST-RETIREMENT BENEFIT PLAN_11
POST-RETIREMENT BENEFIT PLANS - Fair Value Measurements for Pension Assets (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total Assets in the Fair Value Hierarchy | $ 351 | $ 512.2 |
Assets in the Fair Value Hierarchy | 624.6 | 950.8 |
Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 78.9 | 109.7 |
Assets in the Fair Value Hierarchy | 78.9 | 109.7 |
Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 272.1 | 402.5 |
Assets in the Fair Value Hierarchy | 272.1 | 402.5 |
Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | 0 |
Assets in the Fair Value Hierarchy | 0 | 0 |
Mutual funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 120.9 | 215.9 |
Mutual funds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 62.9 | 87.4 |
Mutual funds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 58 | 128.5 |
Mutual funds | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | 0 |
Common stock | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 6.6 | |
Common stock | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 6.6 | |
Common stock | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | |
Common stock | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | |
Common stock | Investments Measured at Net Asset Value | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Investments Measured at Net Asset Value | 77.3 | 94.2 |
Cash | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 16 | 15.7 |
Cash | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 16 | 15.7 |
Cash | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | 0 |
Cash | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | 0 |
Corporate bonds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 160.5 | 228.5 |
Corporate bonds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | 0 |
Corporate bonds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 160.5 | 228.5 |
Corporate bonds | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | 0 |
Corporate bonds | Investments Measured at Net Asset Value | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Investments Measured at Net Asset Value | 123.4 | 209.2 |
Government bonds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 51.6 | 44.5 |
Government bonds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | 0 |
Government bonds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 51.6 | 44.5 |
Government bonds | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | 0 |
Government bonds | Investments Measured at Net Asset Value | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Investments Measured at Net Asset Value | 12.3 | |
Other assets | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 2 | 1 |
Other assets | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | 0 |
Other assets | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 2 | 1 |
Other assets | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset Category | 0 | 0 |
Insurance contracts | Investments Measured at Net Asset Value | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Investments Measured at Net Asset Value | $ 72.9 | $ 122.9 |
POST-RETIREMENT BENEFIT PLAN_12
POST-RETIREMENT BENEFIT PLANS - Amounts Recognized in Consolidated Financial Statements - in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Unrecognized net actuarial loss | $ 93.4 | $ 87.2 | |
Unrecognized prior service credit | (1.4) | (2) | |
Accumulated other comprehensive loss - Pre-tax | 92 | 85.2 | $ 150.6 |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Prepaid benefit cost | 30.8 | 39.9 | |
Accrued benefit liability | (58) | (78.3) | |
Accumulated other comprehensive loss - Pre-tax | 92 | 85.2 | $ 150.6 |
Net amount recognized | 64.8 | 46.8 | |
United States | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Unrecognized net actuarial loss | 41 | 29.9 | |
Unrecognized prior service credit | (0.4) | (0.7) | |
Accumulated other comprehensive loss - Pre-tax | 40.6 | 29.2 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Prepaid benefit cost | 11.7 | 2.7 | |
Accrued benefit liability | (30.8) | (35.5) | |
Accumulated other comprehensive loss - Pre-tax | 40.6 | 29.2 | |
Net amount recognized | 21.5 | (3.6) | |
Germany | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Unrecognized net actuarial loss | 2.3 | 11.9 | |
Unrecognized prior service credit | 0 | 0 | |
Accumulated other comprehensive loss - Pre-tax | 2.3 | 11.9 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Prepaid benefit cost | 0 | 0 | |
Accrued benefit liability | (25.9) | (39.3) | |
Accumulated other comprehensive loss - Pre-tax | 2.3 | 11.9 | |
Net amount recognized | (23.6) | (27.4) | |
United Kingdom | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Unrecognized net actuarial loss | 43.2 | 36.2 | |
Unrecognized prior service credit | 0 | 0 | |
Accumulated other comprehensive loss - Pre-tax | 43.2 | 36.2 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Prepaid benefit cost | 15.8 | 31.1 | |
Accrued benefit liability | 0 | 0 | |
Accumulated other comprehensive loss - Pre-tax | 43.2 | 36.2 | |
Net amount recognized | 59 | 67.3 | |
Netherlands | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Unrecognized net actuarial loss | 3.9 | 4.4 | |
Unrecognized prior service credit | (1) | (1.3) | |
Accumulated other comprehensive loss - Pre-tax | 2.9 | 3.1 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Prepaid benefit cost | 0 | 2 | |
Accrued benefit liability | (1.3) | 0 | |
Accumulated other comprehensive loss - Pre-tax | 2.9 | 3.1 | |
Net amount recognized | 1.6 | 5.1 | |
Other International | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Unrecognized net actuarial loss | 3 | 4.8 | |
Unrecognized prior service credit | 0 | 0 | |
Accumulated other comprehensive loss - Pre-tax | 3 | 4.8 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Prepaid benefit cost | 3.3 | 4.1 | |
Accrued benefit liability | 0 | (3.5) | |
Accumulated other comprehensive loss - Pre-tax | 3 | 4.8 | |
Net amount recognized | $ 6.3 | $ 5.4 |
POST-RETIREMENT BENEFIT PLAN_13
POST-RETIREMENT BENEFIT PLANS - Amounts Recognized in Consolidated Financial Statements - Changes in Accumulated Other Comprehensive (Income) or Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Defined Benefit Plan, Changes in Accumulated Other Comprehensive (Income) Loss [Roll Forward] | ||
Accumulated other comprehensive loss at beginning of year | $ 85.2 | $ 150.6 |
Increase or (decrease) in accumulated other comprehensive loss | ||
Net prior service benefit amortized | 0.4 | 0.3 |
Net loss amortized | (7.7) | (12.6) |
Loss recognized due to settlement | 0 | (9.1) |
Loss recognized due to divestiture | (1) | 0 |
Liability loss | (265.9) | 0.3 |
Asset loss (gain) | 290.8 | (45.3) |
Other adjustments | (0.5) | (0.9) |
Increase (decrease) in accumulated other comprehensive loss | 16.1 | (67.3) |
Foreign currency impact | (9.3) | 1.9 |
Accumulated other comprehensive loss at year end | $ 92 | $ 85.2 |
CONTINGENT LIABILITIES AND EN_2
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 USD ($) facility | Oct. 31, 2021 USD ($) | |
Site Contingency [Line Items] | ||
Environmental liability reserves | $ 19,000 | $ 19,500 |
Diamond Alkali | ||
Site Contingency [Line Items] | ||
Environmental liability reserves | 9,800 | 11,000 |
Other Facilities | ||
Site Contingency [Line Items] | ||
Environmental liability reserves | 9,200 | $ 8,500 |
Container Life Cycle Management LLC | ||
Site Contingency [Line Items] | ||
Payments for legal settlements | $ 1,600 | |
Container Life Cycle Management LLC | Flexible Packaging JV | ||
Site Contingency [Line Items] | ||
Number of reconditioning facilities subject to litigation | facility | 2 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Jun. 24, 2022 | Jun. 23, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 150,000,000 | ||||
Percentage of expected share repurchases | 80% | ||||
Repurchase of common stock (shares) | 170,980 | ||||
Antidilutive stock option (shares) | 0 | 0 | 0 | ||
Open Market Purchases | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 75,000,000 | ||||
Minimum | Open Market Purchases | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, repurchase period | 12 months | ||||
Maximum | Open Market Purchases | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, repurchase period | 18 months | ||||
Class A common stock | |||||
Class of Stock [Line Items] | |||||
Dividend proportions (usd per share) | $ 1 | ||||
Percentage of shares outstanding used in two class method calculation | 40% | ||||
Additional number of shares under accelerated share repurchase program | 1,021,451 | ||||
Class A common stock | Accelerated Share Repurchase Agreement | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 75,000,000 | ||||
Class B common stock | |||||
Class of Stock [Line Items] | |||||
Percentage of shares outstanding used in two class method calculation | 60% |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Numerator for basic and diluted EPS | |||
Net income attributable to Greif, Inc. | $ 376.7 | $ 390.7 | $ 108.8 |
Cash dividends | (111.3) | (105.8) | (104.3) |
Undistributed net income attributable to Greif, Inc. | $ 265.4 | $ 284.9 | $ 4.5 |
Class A common stock | |||
Denominator for basic EPS | |||
Denominator for basic EPS (shares) | 26,251,536 | 26,525,529 | 26,382,838 |
Denominator for diluted EPS | |||
Denominator for diluted EPS (shares) | 26,610,712 | 26,659,221 | 26,390,643 |
EPS Basic | |||
EPS Basic (usd per share) | $ 6.36 | $ 6.57 | $ 1.83 |
EPS Diluted | |||
EPS Diluted (usd per share) | $ 6.30 | $ 6.54 | $ 1.83 |
Class B common stock | |||
Denominator for basic EPS | |||
Denominator for basic EPS (shares) | 21,995,865 | 22,007,725 | 22,007,725 |
Denominator for diluted EPS | |||
Denominator for diluted EPS (shares) | 21,995,865 | 22,007,725 | 22,007,725 |
EPS Basic | |||
EPS Basic (usd per share) | $ 9.53 | $ 9.84 | $ 2.74 |
EPS Diluted | |||
EPS Diluted (usd per share) | $ 9.53 | $ 9.84 | $ 2.74 |
EARNINGS PER SHARE - Summarizat
EARNINGS PER SHARE - Summarization of Company's Class A and Class B Common and Treasury Shares (Details) - shares | Oct. 31, 2022 | Oct. 31, 2021 |
Class A common stock | ||
Class of Stock [Line Items] | ||
Authorized Shares (shares) | 128,000,000 | 128,000,000 |
Issued Shares (shares) | 42,281,920 | 42,281,920 |
Outstanding Shares (shares) | 25,606,287 | 26,550,924 |
Treasury Shares (shares) | 16,675,633 | 15,730,996 |
Class B common stock | ||
Class of Stock [Line Items] | ||
Authorized Shares (shares) | 69,120,000 | 69,120,000 |
Issued Shares (shares) | 34,560,000 | 34,560,000 |
Outstanding Shares (shares) | 21,836,745 | 22,007,725 |
Treasury Shares (shares) | 12,723,255 | 12,552,275 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of Shares Used to Calculate Basic and Diluted Earnings Per Share (Details) - shares | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Class A common stock | |||
Class of Stock [Line Items] | |||
Basic (shares) | 26,251,536 | 26,525,529 | 26,382,838 |
Assumed conversion of stock options and unvested shares (shares) | 359,176 | 133,692 | 7,805 |
Diluted (shares) | 26,610,712 | 26,659,221 | 26,390,643 |
Class B common stock | |||
Class of Stock [Line Items] | |||
Basic (shares) | 21,995,865 | 22,007,725 | 22,007,725 |
Diluted (shares) | 21,995,865 | 22,007,725 | 22,007,725 |
LEASES - Additional Information
LEASES - Additional Information (Details) | 12 Months Ended |
Oct. 31, 2022 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 20 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 64.6 | $ 70.4 |
Other lease cost | 24.6 | 24 |
Total lease cost | $ 89.2 | $ 94.4 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Operating Leases | |
2023 | $ 56.9 |
2024 | 53.8 |
2025 | 44.9 |
2026 | 39.3 |
2027 | 31.5 |
Thereafter | 108.3 |
Total lease payments | 334.7 |
Less: Interest | (76.4) |
Lease liabilities | $ 258.3 |
LEASES - Schedule of Weighted-A
LEASES - Schedule of Weighted-Average Lease Term and Discount Rate (Details) | Oct. 31, 2022 | Oct. 31, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) for operating lease liabilities | 9 years 10 months 24 days | 10 years 3 months 18 days |
Weighted-average discount rate for operating lease liabilities | 3.77% | 3.61% |
LEASES - Cash Flow (Details)
LEASES - Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows used for operating leases | $ 63.2 | $ 70.2 |
Leased assets obtained in exchange for new operating lease liabilities | $ 22.3 | $ 25 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Additional Information (Details) a in Thousands | 12 Months Ended |
Oct. 31, 2022 a segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 6 |
Number of reportable business segment | 3 |
Measurement area of timber properties in the south eastern United States which are actively managed in acres | a | 175 |
Global Industrial Packaging | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 4 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 6,349.5 | $ 5,556.1 | $ 4,515 |
Global Industrial Packaging | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,652.4 | 3,316.7 | |
Paper Packaging & Services | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,675.1 | 2,218.4 | |
Land Management | |||
Segment Reporting Information [Line Items] | |||
Net sales | 22 | 21 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,939.9 | 3,247.5 | |
United States | Global Industrial Packaging | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,287.1 | 1,044.5 | |
United States | Paper Packaging & Services | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,630.8 | 2,182 | |
United States | Land Management | |||
Segment Reporting Information [Line Items] | |||
Net sales | 22 | 21 | |
Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,700.7 | 1,673.9 | |
Europe, Middle East and Africa | Global Industrial Packaging | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,700.7 | 1,673.9 | |
Europe, Middle East and Africa | Paper Packaging & Services | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Europe, Middle East and Africa | Land Management | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Asia Pacific and Other Americas | |||
Segment Reporting Information [Line Items] | |||
Net sales | 708.9 | 634.7 | |
Asia Pacific and Other Americas | Global Industrial Packaging | |||
Segment Reporting Information [Line Items] | |||
Net sales | 664.6 | 598.3 | |
Asia Pacific and Other Americas | Paper Packaging & Services | |||
Segment Reporting Information [Line Items] | |||
Net sales | 44.3 | 36.4 | |
Asia Pacific and Other Americas | Land Management | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 0 | $ 0 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Operating profit: | |||
Total operating profit | $ 621.2 | $ 585.2 | $ 304.9 |
Depreciation, depletion and amortization expense: | |||
Total depreciation, depletion and amortization expense | 216.6 | 234.4 | 242.5 |
Capital expenditures: | |||
Total capital expenditures | 161.9 | 162.2 | 130 |
Assets: | |||
Total assets | 5,469.9 | 5,815.8 | 5,510.9 |
Global Industrial Packaging | |||
Operating profit: | |||
Total operating profit | 313.7 | 350.2 | 225.4 |
Depreciation, depletion and amortization expense: | |||
Total depreciation, depletion and amortization expense | 73.9 | 83.1 | 84.5 |
Paper Packaging & Services | |||
Operating profit: | |||
Total operating profit | 298.5 | 131 | 71 |
Depreciation, depletion and amortization expense: | |||
Total depreciation, depletion and amortization expense | 139.9 | 148 | 153.5 |
Land Management | |||
Operating profit: | |||
Total operating profit | 9 | 104 | 8.5 |
Depreciation, depletion and amortization expense: | |||
Total depreciation, depletion and amortization expense | 2.8 | 3.3 | 4.5 |
Operating Segments | |||
Capital expenditures: | |||
Total capital expenditures | 145.7 | 151.2 | 117.4 |
Assets: | |||
Total assets | 5,032.3 | 5,490.8 | 5,211.4 |
Operating Segments | Global Industrial Packaging | |||
Capital expenditures: | |||
Total capital expenditures | 55.1 | 71.1 | 55.8 |
Assets: | |||
Total assets | 2,308.4 | 2,735.1 | 2,338.5 |
Operating Segments | Paper Packaging & Services | |||
Capital expenditures: | |||
Total capital expenditures | 90.6 | 79.9 | 61.4 |
Assets: | |||
Total assets | 2,473.9 | 2,506.5 | 2,524.3 |
Operating Segments | Land Management | |||
Capital expenditures: | |||
Total capital expenditures | 0 | 0.2 | 0.2 |
Assets: | |||
Total assets | 250 | 249.2 | 348.6 |
Corporate and Other | |||
Capital expenditures: | |||
Total capital expenditures | 16.2 | 11 | 12.6 |
Assets: | |||
Total assets | $ 437.6 | $ 325 | $ 299.5 |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Properties, Plants and Equipment, Net by Geographical Area (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Properties, plants and equipment, net | |||
Total properties, plants and equipment, net | $ 1,709.7 | $ 1,810.6 | $ 1,834.4 |
United States | |||
Properties, plants and equipment, net | |||
Total properties, plants and equipment, net | 1,314.7 | 1,321.8 | 1,345.8 |
Europe, Middle East, and Africa | |||
Properties, plants and equipment, net | |||
Total properties, plants and equipment, net | 303.7 | 374.5 | 377.6 |
Asia Pacific and other Americas | |||
Properties, plants and equipment, net | |||
Total properties, plants and equipment, net | $ 91.3 | $ 114.3 | $ 111 |
COMPREHENSIVE INCOME (LOSS) - S
COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance, value | $ 1,514.3 | |
Foreign Currency Translation Released from Business Divestment | 113.1 | |
Ending balance, value | 1,761.3 | $ 1,514.3 |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance, value | (295.4) | (294.9) |
Other Comprehensive Income (Loss) | (134.2) | (0.5) |
Foreign Currency Translation Released from Business Divestment | 113.1 | |
Ending balance, value | (316.5) | (295.4) |
Derivative Financial Instruments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance, value | (3.6) | (24.7) |
Other Comprehensive Income (Loss) | 76.4 | 21.1 |
Foreign Currency Translation Released from Business Divestment | 0 | |
Ending balance, value | 72.8 | (3.6) |
Minimum Pension Liability Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance, value | (57.5) | (107.9) |
Other Comprehensive Income (Loss) | (1.1) | 50.4 |
Foreign Currency Translation Released from Business Divestment | 0 | |
Ending balance, value | (58.6) | (57.5) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance, value | (356.5) | (427.5) |
Other Comprehensive Income (Loss) | (58.9) | 71 |
Foreign Currency Translation Released from Business Divestment | 113.1 | |
Ending balance, value | $ (302.3) | $ (356.5) |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 USD ($) jointVenture | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | |
Noncontrolling Interest [Line Items] | |||
Redeemable noncontrolling interest | $ | $ 15.8 | $ 24.1 | $ 20 |
Container Life Cycle Management LLC | |||
Noncontrolling Interest [Line Items] | |||
Redeemable noncontrolling interest | $ | $ 3.4 | $ 8.4 | |
Global Industrial Packaging | |||
Noncontrolling Interest [Line Items] | |||
Number of joint ventures (joint venture) | jointVenture | 1 | ||
Paper Packaging & Services | |||
Noncontrolling Interest [Line Items] | |||
Number of joint ventures (joint venture) | jointVenture | 2 |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Redeemable Noncontrolling Interest, Equity [Roll Forward] | |||
Redeemable noncontrolling interests, beginning balance | $ 24.1 | $ 20 | |
Current period mark to redemption value | (5.5) | 2.6 | |
Repurchase of redeemable shareholder interest | (1.9) | ||
Redeemable noncontrolling interest share of income | 0.1 | 2.4 | $ 0.1 |
Dividends to redeemable noncontrolling interest and other | (1) | (0.9) | |
Redeemable noncontrolling interests, ending balance | $ 15.8 | $ 24.1 | $ 20 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Dec. 15, 2022 USD ($) |
Subsequent Event | Lee Container | |
Subsequent Event [Line Items] | |
Purchase price | $ 300 |
SCHEDULE II - Consolidated Va_2
SCHEDULE II - Consolidated Valuation and Qualifying Accounts and Reserves - (Details) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 6.1 | $ 9.4 | $ 6.8 |
Charged to Costs and Expenses | 1.3 | 2.9 | 1.3 |
Charged to Other Accounts | (1.3) | (6.2) | 1.3 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 6.1 | $ 6.1 | $ 9.4 |