Cover
Cover - shares | 3 Months Ended | |
Jan. 31, 2024 | Feb. 26, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2024 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000043920 | |
Current Fiscal Year End Date | --10-31 | |
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 Common Stock, Shares Outstanding | 25,790,029 | |
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 Common Stock, Shares Outstanding | 21,331,127 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Net sales | $ 1,205.8 | $ 1,271 |
Cost of products sold | 984.2 | 1,019.4 |
Gross profit | 221.6 | 251.6 |
Selling, general and administrative expenses | 145.8 | 139.4 |
Acquisition and integration related costs | 2.6 | 7.5 |
Restructuring charges | 5.7 | 2.4 |
Non-cash asset impairment charges | 1.3 | 0.5 |
Gain on disposal of properties, plants and equipment, net | (2.7) | 0 |
Gain on disposal of businesses, net | 0 | (54.6) |
Operating profit | 68.9 | 156.4 |
Interest expense, net | 24.2 | 22.8 |
Other expense, net | 9.1 | 3.3 |
Income before income tax expense and equity earnings of unconsolidated affiliates, net | 35.6 | 130.3 |
Income tax (benefit) expense | (38.2) | 37.7 |
Equity earnings of unconsolidated affiliates, net of tax | (0.5) | (0.5) |
Net income | 74.3 | 93.1 |
Net income attributable to noncontrolling interests | (7.1) | (3.2) |
Net income attributable to Greif, Inc. | $ 67.2 | $ 89.9 |
Class A Common Stock | ||
Basic earnings per share attributable to Greif, Inc. common shareholders: | ||
Basic earnings per share attributable to Greif, Inc. common shareholders (in usd per share) | $ 1.17 | $ 1.55 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: | ||
Diluted earnings per share attributable to Greif, Inc. common shareholders (in usd per share) | $ 1.17 | $ 1.54 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 25,531,221 | 25,652,383 |
Diluted (in shares) | 25,626,836 | 25,787,459 |
Cash dividends declared per common share: | ||
Cash dividends declared per common share (in usd per share) | $ 0.52 | $ 0.50 |
Class B Common Stock | ||
Basic earnings per share attributable to Greif, Inc. common shareholders: | ||
Basic earnings per share attributable to Greif, Inc. common shareholders (in usd per share) | 1.75 | 2.31 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: | ||
Diluted earnings per share attributable to Greif, Inc. common shareholders (in usd per share) | $ 1.75 | $ 2.31 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 21,331,127 | 21,721,601 |
Diluted (in shares) | 21,331,127 | 21,721,601 |
Cash dividends declared per common share: | ||
Cash dividends declared per common share (in usd per share) | $ 0.77 | $ 0.74 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 74.3 | $ 93.1 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation | 27.6 | 51.3 |
Derivative financial instruments | (36.2) | (25.7) |
Minimum pension liabilities | (2.7) | (2.4) |
Other comprehensive income (loss), net of tax | (11.3) | 23.2 |
Comprehensive income | 63 | 116.3 |
Comprehensive income attributable to noncontrolling interests | 7.1 | 3.5 |
Comprehensive income attributable to Greif, Inc. | $ 55.9 | $ 112.8 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jan. 31, 2024 | Oct. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 179.3 | $ 180.9 |
Trade accounts receivable, net of allowance | 639.2 | 659.4 |
Inventories: | ||
Raw materials | 282.4 | 255.8 |
Finished goods | 86.1 | 82.8 |
Assets held for sale | 5.4 | 5 |
Prepaid expenses | 66.5 | 46 |
Other current assets | 130.4 | 139.2 |
Total current assets | 1,389.3 | 1,369.1 |
Long-term assets | ||
Goodwill | 1,704.1 | 1,693 |
Other intangible assets, net of amortization | 773.5 | 792.2 |
Deferred tax assets | 23.5 | 22.9 |
Pension assets | 38.2 | 36.2 |
Operating lease right-of-use assets | 298 | 290.3 |
Finance lease right-of-use assets | 31.2 | 30.5 |
Other long-term assets | 139.8 | 164 |
Total long term assets | 3,008.3 | 3,029.1 |
Properties, plants and equipment | ||
Timber properties, net of depletion | 230.2 | 229.6 |
Land | 154.9 | 153.7 |
Buildings | 557.3 | 544.3 |
Machinery and equipment | 2,178.6 | 2,138.8 |
Capital projects in progress | 207.6 | 200.5 |
Properties, plants and equipment, gross | 3,328.6 | 3,266.9 |
Accumulated depreciation | (1,757.1) | (1,704.3) |
Properties, plants and equipment, net | 1,571.5 | 1,562.6 |
Total assets | 5,969.1 | 5,960.8 |
Current liabilities | ||
Accounts payable | 468 | 497.8 |
Accrued payroll and employee benefits | 101.5 | 137.7 |
Restructuring reserves | 17.1 | 16.8 |
Current portion of long-term debt | 88.3 | 88.3 |
Short-term borrowings | 18.2 | 5.4 |
Current portion of operating lease liabilities | 55.3 | 53.8 |
Current portion of finance lease liabilities | 3.4 | 3.4 |
Other current liabilities | 130.9 | 136.1 |
Total current liabilities | 882.7 | 939.3 |
Long-term liabilities | ||
Long-term debt | 2,185.3 | 2,121.4 |
Operating lease liabilities | 246.1 | 240.2 |
Finance lease liabilities | 28.8 | 27.9 |
Deferred tax liabilities | 258 | 325.6 |
Pension liabilities | 55.9 | 56.3 |
Postretirement benefit obligations | 6.3 | 6.2 |
Contingent liabilities and environmental reserves | 18.3 | 17.3 |
Long-term income tax payable | 21.2 | 21.2 |
Other long-term liabilities | 105.2 | 93.8 |
Total long-term liabilities | 2,925.1 | 2,909.9 |
Commitments and contingencies (Note 9) | ||
Redeemable noncontrolling interests | 124.9 | 125.3 |
Equity | ||
Common stock, without par value | 222.1 | 208.4 |
Treasury stock, at cost | (279.5) | (281.9) |
Retained earnings | 2,377.7 | 2,337.9 |
Accumulated other comprehensive loss, net of tax: | ||
Foreign currency translation | (290.1) | (317.7) |
Derivative financial instruments | 35.5 | 71.7 |
Minimum pension liabilities | (73.2) | (70.5) |
Total Greif, Inc. shareholders’ equity | 1,992.5 | 1,947.9 |
Noncontrolling interests | 43.9 | 38.4 |
Total shareholders’ equity | 2,036.4 | 1,986.3 |
Total liabilities and shareholders’ equity | $ 5,969.1 | $ 5,960.8 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 74.3 | $ 93.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 60.4 | 55.1 |
Non-cash asset impairment charges | 1.3 | 0.5 |
Gain on disposals of properties, plants and equipment, net | (2.7) | 0 |
Gain on disposals of businesses, net | 0 | (54.6) |
Unrealized foreign exchange loss | 7.6 | 0.1 |
Deferred income tax (benefit) expense | (49.2) | 0.7 |
Non-cash lease expense | 12.2 | 12.9 |
Other, net | 0.5 | 0.5 |
Increase (decrease) in cash from changes in certain assets and liabilities, net of impacts from acquisitions: | ||
Trade accounts receivable | 21.5 | 112 |
Inventories | (28) | (2.6) |
Accounts payable | (21.1) | (103.1) |
Restructuring reserves | 0.2 | 0.5 |
Operating leases | (12.5) | (12.8) |
Pension and post-retirement benefit liabilities | (3.3) | (8.1) |
Other, net | (56.7) | (61.3) |
Net cash provided by operating activities | 4.5 | 32.9 |
Cash flows from investing activities: | ||
Purchases of business, net of cash acquired | 0 | (301.9) |
Purchases of properties, plants and equipment | (55.6) | (49.3) |
Purchases of timber properties | (1.8) | (2.3) |
Payments for deferred purchase price of acquisitions | (1.2) | (21.7) |
Proceeds from the sale of properties, plants, equipment and other assets | 5 | 0.5 |
Proceeds from the sale of businesses | 0 | 105.6 |
Net cash used in investing activities | (53.6) | (269.1) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 529.1 | 836.3 |
Payments on long-term debt | (419.2) | (538.3) |
Proceeds (payments) on short-term borrowings, net | 12.7 | (1.6) |
Proceeds from trade accounts receivable credit facility | 0.7 | 55.5 |
Payments on trade accounts receivable credit facility | (49.2) | (48.7) |
Dividends paid to Greif, Inc. shareholders | (29.7) | (28.9) |
Payments for share repurchases | 0 | (17.8) |
Tax withholding payments for stock-based awards | (6.8) | (12.4) |
Purchases of redeemable noncontrolling interest | 0 | (3.3) |
Other, net | (1.5) | (1.3) |
Net cash provided by financing activities | 36.1 | 239.5 |
Effects of exchange rates on cash | 11.4 | 10.6 |
Net (decrease) increase in cash and cash equivalents | (1.6) | 13.9 |
Cash and cash equivalents at beginning of period | 180.9 | 147.1 |
Cash and cash equivalents at end of period | $ 179.3 | $ 161 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Millions | Total | Greif, Inc. Equity | Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non controlling interests |
Beginning balance (in shares) at Oct. 31, 2022 | 47,443 | ||||||
Beginning balance at Oct. 31, 2022 | $ 1,794.3 | $ 1,761.3 | $ 173.5 | $ (205.1) | $ 2,095.2 | $ (302.3) | $ 33 |
Beginning balance (in shares) at Oct. 31, 2022 | 29,399 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 93.1 | 89.9 | 89.9 | 3.2 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation | 51.3 | 51 | 51 | 0.3 | |||
Derivative financial instruments, net of income tax expense/benefit | (25.7) | (25.7) | (25.7) | ||||
Minimum pension liability adjustment, net of income tax expense/benefit | (2.4) | (2.4) | (2.4) | ||||
Comprehensive income | 116.3 | 112.8 | |||||
Current period mark to redemption value of redeemable noncontrolling interest and other | 0.8 | 0.8 | 0.8 | ||||
Net income allocated to redeemable noncontrolling interests | 0.3 | 0.3 | |||||
Dividends paid to Greif, Inc. shareholders | (28.9) | (28.9) | (28.9) | ||||
Dividends earned on RSU shares | 0.4 | 0.4 | 0.4 | ||||
Share repurchases (in shares) | (232) | 232 | |||||
Share repurchases | (17.8) | (17.8) | $ 0 | $ (17.8) | |||
Long-term incentive shares issued (in shares) | 331 | (331) | |||||
Long-term incentive shares issued | 15.6 | 15.6 | $ 13.8 | $ 1.8 | |||
Share based compensation | 1.2 | 1.2 | $ 1.2 | ||||
Ending balance (in shares) at Jan. 31, 2023 | 47,542 | ||||||
Ending balance at Jan. 31, 2023 | 1,882.2 | 1,845.4 | $ 188.5 | $ (221.1) | 2,157.4 | (279.4) | 36.8 |
Ending balance (in shares) at Jan. 31, 2023 | 29,300 | ||||||
Beginning balance (in shares) at Oct. 31, 2023 | 46,805 | ||||||
Beginning balance at Oct. 31, 2023 | 1,986.3 | 1,947.9 | $ 208.4 | $ (281.9) | 2,337.9 | (316.5) | 38.4 |
Beginning balance (in shares) at Oct. 31, 2023 | 30,037 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 74.3 | 67.2 | 67.2 | 7.1 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation | 27.6 | 27.6 | 27.6 | 0 | |||
Derivative financial instruments, net of income tax expense/benefit | (36.2) | (36.2) | (36.2) | ||||
Minimum pension liability adjustment, net of income tax expense/benefit | (2.7) | (2.7) | (2.7) | ||||
Comprehensive income | 63 | 55.9 | |||||
Current period mark to redemption value of redeemable noncontrolling interest and other | 2.3 | 2.3 | 2.3 | ||||
Net income allocated to redeemable noncontrolling interests | (1.6) | (1.6) | |||||
Dividends paid to Greif, Inc. shareholders | (29.7) | (29.7) | (29.7) | ||||
Colleague stock purchase plan (in shares) | 33 | (33) | |||||
Colleague stock purchase plan | 2 | 2 | $ 1.8 | $ 0.2 | |||
Long-term incentive shares issued (in shares) | 283 | (283) | |||||
Long-term incentive shares issued | 12.7 | 12.7 | $ 10.5 | $ 2.2 | |||
Share based compensation | 1.4 | 1.4 | $ 1.4 | ||||
Ending balance (in shares) at Jan. 31, 2024 | 47,121 | ||||||
Ending balance at Jan. 31, 2024 | $ 2,036.4 | $ 1,992.5 | $ 222.1 | $ (279.5) | $ 2,377.7 | $ (327.8) | $ 43.9 |
Ending balance (in shares) at Jan. 31, 2024 | 29,721 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Derivative, income tax expense | $ (11.9) | $ (8.5) |
Minimum pension liability adjustment, income tax expense | $ 0.1 | $ (0.9) |
Class A Common Stock | ||
Dividend paid (in usd per share) | $ 0.52 | $ 0.50 |
Class B Common Stock | ||
Dividend paid (in usd per share) | $ 0.77 | $ 0.74 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jan. 31, 2024 | |
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 Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates. The fiscal year of Greif, Inc. and its subsidiaries (the “Company”) 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. The information filed herein reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated balance sheet as of January 31, 2024 and the condensed consolidated balance sheet as of October 31, 2023, the interim condensed consolidated statements of income, comprehensive income and changes in shareholders’ equity for the three months ended January 31, 2024 and 2023 and the interim condensed consolidated statements of cash flows for the three months ended January 31, 2024 and 2023 of the Company. The interim condensed consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and consolidated subsidiaries and investments in limited liability companies, partnerships and joint ventures in which it has controlling influence or is the primary beneficiary. Non-majority owned entities include investments in limited liability companies, partnerships and joint ventures in which the Company does not have controlling interest and are accounted for using either the equity or cost method, as appropriate. The unaudited interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2023 (the “2023 Form 10-K”). Newly Adopted Accounting Standards There have been no new accounting standards adopted since the filing of the 2023 Form 10-K that have significance, or potential significance, to the interim condensed consolidated financial statements. Recently Issued Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, "Income Taxes (Topic 740): Improvements to Tax Disclosures,” which is intended to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The effective date for the Company to adopt this ASU for fiscal year-end is November 1, 2025. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flow and disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosure requirements. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The effective date for the Company to adopt this ASU for fiscal year-end and interim periods is November 1, 2024 and November 1, 2025 respectively. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flow and disclosures. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended |
Jan. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Acquisitions ColePak Acquisition The Company acquired a 51% ownership interest in ColePak, LLC (“ColePak”) on August 23, 2023 (the “ColePak Acquisition”). ColePak is a manufacturer of bulk and specialty partitions made from both containerboard and uncoated recycled board and is the second largest supplier of paper partitions in North America . The total purchase price for this acquisition, net of cash acquired, was $74.6 million. The fair value of the remaining noncontrolling interest of 49% after the acquisition was $72.1 million, which was determined using a Monte Carlo option pricing model, and is redeemable through contractual terms. The following table summarizes the consideration transferred to acquire ColePak and the preliminary valuation of identifiable assets acquired and liabilities assumed at the acquisition date: (in millions) Amounts Recognized as of the Acquisition Date Measurement Period Adjustments Amount Recognized as of Acquisition Date (as Adjusted) Fair value of consideration transferred Cash consideration $ 74.6 $ — $ 74.6 Noncontrolling interest 72.1 — 72.1 Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 6.7 $ — $ 6.7 Inventories 3.3 — 3.3 Intangibles 59.0 — 59.0 Operating lease right-of use assets 8.6 — 8.6 Properties, plants and equipment 19.4 — 19.4 Total assets acquired 97.0 — 97.0 Accounts payable and other current liabilities (1.8) — (1.8) Operating lease liabilities (8.6) — (8.6) Total liabilities assumed (10.4) — (10.4) Total identifiable net assets $ 86.6 $ — $ 86.6 Goodwill $ 60.1 $ — $ 60.1 The Company recognized goodwill related to this acquisition of $60.1 million. The goodwill recognized in this acquisition was attributable to the acquired assembled workforce, expected synergies, economies of scale and expanded market presence, none of which qualify for recognition as a separate intangible asset. ColePak is reported within the Paper Packaging & Services segment to which the goodwill was assigned. The goodwill is expected to be deductible for tax purposes. The fair value for acquired customer relationship intangibles was determined as of the acquisition date based on estimates and judgments regarding expectations for the future after-tax cash flows arising from the revenue from customer relationships that existed on the acquisition date over their estimated lives, including the probability of expected future contract renewals and revenue, less a contributory assets charge, all of which is discounted to present value. The fair values of the trademark intangible assets were determined utilizing the relief from royalty method, which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the trademarks and discounted to present value using an appropriate discount rate. Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the preliminary purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired as of the acquisition date: (in millions) Purchase Price Allocation Weighted Average Estimated Useful Life Customer relationships $ 50.6 15.0 Trademarks 8.4 5.0 Total intangible assets $ 59.0 The Company has not yet finalized the determination of the fair value of assets acquired and liabilities assumed, including income taxes and contingencies. The Company expects to finalize these amounts within one year of the acquisition date. The estimate of fair value and purchase price allocation were based on information available at the time of closing the acquisition, and the Company continues to evaluate the underlying inputs and assumptions that are being used in fair value estimates. Accordingly, these preliminary estimates are subject to adjustments during the measurement period, not to exceed one year from the date of the acquisition, based upon new information obtained about facts and circumstances that existed as of the date of closing the acquisition. Centurion Acquisition The Company completed its acquisition of controlling influence over Centurion Container LLC (“Centurion”) on March 31, 2023 (the “Centurion Acquisition”), by increasing the Company’s ownership interest in Centurion from approximately 10% to 80%. Centurion is a leader in the North American intermediate bulk container (“IBC”) reconditioning industry and is involved in IBC rebottling, reconditioning, and distribution . The total purchase price for this acquisition, net of cash acquired, was $144.5 million. The fair value of the remaining noncontrolling interest of 20% after the acquisition was $40.9 million, which was determined using the implied enterprise value based on the purchase price and redemption mechanism, and is redeemable through contractual terms. Prior to the acquisition, the Company accounted for its approximately 10% ownership interest under the equity method of accounting. The acquisition of a controlling financial interest was accounted for as a step acquisition in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations”. As a result, fair value of our previously held interest in Centurion of $16.8 million was valued using a discounted cash flow model, resulting in a gain of $9.8 million. The gain was reflected in the consolidated statements of income within the gain on disposal of businesses, net line. The following table summarizes the consideration transferred to acquire Centurion and the preliminary valuation of identifiable assets acquired and liabilities assumed at the acquisition date: (in millions) Amounts Recognized as of the Acquisition Date Measurement Period Adjustments Amount Recognized as of Acquisition Date (as Adjusted) Fair value of consideration transferred Cash consideration $ 144.5 $ — $ 144.5 Noncontrolling interest 40.9 — 40.9 Previously held interest 16.8 — 16.8 Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 12.4 $ — $ 12.4 Inventories 2.0 — 2.0 Prepaid and other current assets 0.4 — 0.4 Intangibles 83.4 9.4 92.8 Operating lease right-of use assets 10.2 — 10.2 Properties, plants and equipment 7.7 — 7.7 Total assets acquired 116.1 9.4 125.5 Accounts payable (4.2) — (4.2) Other current liabilities (4.3) — (4.3) Operating lease liabilities (10.2) — (10.2) Total liabilities assumed (18.7) — (18.7) Total identifiable net assets $ 97.4 $ 9.4 $ 106.8 Goodwill $ 104.8 $ (9.4) $ 95.4 The Company recognized goodwill related to this acquisition of $95.4 million. The goodwill recognized in this acquisition was attributable to the acquired assembled workforce, expanded market presence and enhanced business network, none of which qualify for recognition as a separate intangible asset. Centurion is reported within the Global Industrial Packaging segment to which the goodwill was assigned. The goodwill is expected to be deductible for tax purposes. The fair value for acquired customer relationship intangibles was determined as of the acquisition date based on estimates and judgments regarding expectations for the future after-tax cash flows arising from the revenue from customer relationships that existed on the acquisition date over their estimated lives, including the probability of expected future contract renewals and revenue, less a contributory assets charge, all of which is discounted to present value. The fair values of the trademark intangible assets were determined utilizing the relief from royalty method, which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the trademarks and discounted to present value using an appropriate discount rate. Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the preliminary purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired as of the acquisition date: (in millions) Purchase Price Allocation Weighted Average Estimated Useful Life Customer relationships $ 77.5 12.0 Favorable leases 1.6 19.0 Trademarks 13.7 5.0 Total intangible assets $ 92.8 The Company has not yet finalized the determination of the fair value of assets acquired and liabilities assumed, including income taxes and contingencies. The Company expects to finalize these amounts within one year of the acquisition date. The estimate of fair value and purchase price allocation were based on information available at the time of closing the acquisition, and the Company continues to evaluate the underlying inputs and assumptions that are being used in fair value estimates. Accordingly, these preliminary estimates are subject to adjustments during the measurement period, not to exceed one year from the date of the acquisition, based upon new information obtained about facts and circumstances that existed as of the date of closing the acquisition. Lee Container Acquisition The Company acquired Lee Container Corporation, Inc. (“Lee Container”) on December 15, 2022 (the “Lee Container Acquisition”). Lee Container is an industry-leading manufacturer of high-performance barrier and conventional blow molded containers, jerrycans, and small plastics . The total purchase price for this acquisition, net of cash acquired, was $303.0 million. The following table summarizes the consideration transferred to acquire Lee Container and the final valuation of identifiable assets acquired and liabilities assumed at the acquisition date: (in millions) Amounts Recognized as of the Acquisition Date Measurement Period Adjustments Amount Recognized as of Acquisition Date (as Adjusted) Fair value of consideration transferred Cash consideration $ 302.8 $ 0.2 $ 303.0 Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 21.9 $ (0.4) $ 21.5 Inventories 27.5 (5.2) 22.3 Prepaid and other current assets 0.5 — 0.5 Intangibles 133.5 — 133.5 Finance lease right-of use assets 32.4 1.0 33.4 Properties, plants and equipment 54.7 — 54.7 Total assets acquired 270.5 (4.6) 265.9 Accounts payable (3.9) — (3.9) Accrued payroll and employee benefits (1.3) — (1.3) Other current liabilities (3.1) 2.9 (0.2) Finance lease liabilities (30.6) (2.8) (33.4) Total liabilities assumed (38.9) 0.1 (38.8) Total identifiable net assets $ 231.6 (4.5) 227.1 Goodwill $ 71.2 $ 4.7 $ 75.9 The Company recognized goodwill related to this acquisition of $75.9 million. The goodwill recognized in this acquisition was attributable to the acquired assembled workforce, expected synergies and economies of scale, none of which qualify for recognition as a separate intangible asset. Lee Container is reported within the Global Industrial Packaging segment to which the goodwill was assigned. The goodwill is expected to be deductible for tax purposes. The cost approach was used to determine the fair value for building improvements and equipment. The cost approach measures the value by estimating the cost to acquire, or construct, comparable assets and adjusts for age and condition. The Company assigned building improvements a useful life ranging from 1 year to 9 years and equipment a useful life ranging from 1 year to 19 years. Acquired property, plant and equipment are being depreciated over their estimated remaining useful lives on a straight-line basis. The fair value for acquired customer relationship intangibles was determined as of the acquisition date based on estimates and judgments regarding expectations for the future after-tax cash flows arising from the revenue from customer relationships that existed on the acquisition date over their estimated lives, including the probability of expected future contract renewals and revenue, less a contributory assets charge, all of which is discounted to present value. The fair values of the trademark intangible assets were determined utilizing the relief from royalty method, which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the trademarks and discounted to present value using an appropriate discount rate. Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the preliminary purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired as of the acquisition date: (in millions) Purchase Price Allocation Weighted Average Estimated Useful Life Customer relationships $ 120.0 15.0 Trademarks 13.5 5.0 Total intangible assets $ 133.5 As of January 31, 2024, the Company had completed the determination of the fair value of assets acquired and liabilities assumed related to the Lee Container Acquisition. Pro Forma Results The following unaudited supplemental pro forma data presents consolidated information as if the Lee Container Acquisition had been completed on November 1, 2021. These amounts were calculated after adjusting Lee Container’s results to reflect interest expense incurred on the debt to finance the acquisition, additional depreciation and amortization that would have been charged assuming the fair value of property, plant and equipment and intangible assets had been applied from November 1, 2021, the adjusted tax expense, and related transaction costs. Three Months Ended January 31, (in millions, except per share amounts) 2023 Pro forma net sales $ 1,288.4 Pro forma net income attributable to Greif, Inc. 102.2 Basic earnings per share attributable to Greif, Inc. common shareholders: Class A common stock $ 1.76 Class B common stock $ 2.63 Diluted earnings per share attributable to Greif, Inc. common shareholders: Class A common stock $ 1.75 Class B common stock $ 2.63 The unaudited supplemental pro forma financial information is based on the Company’s preliminary assignment of purchase price and therefore subject to adjustment upon finalizing the purchase price assignment. The pro forma data should not be considered indicative of the results that would have occurred if the acquisition and related financing had been consummated on the assumed completion dates, nor are they indicative of future results. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Jan. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES The following is a reconciliation of the beginning and ending restructuring reserve balances for the three months ended January 31, 2024: (in millions) Employee Other Total Balance at October 31, 2023 $ 16.4 $ 0.4 $ 16.8 Costs incurred and charged to expense 2.9 2.8 5.7 Costs paid or otherwise settled (2.5) (2.9) (5.4) Balance at January 31, 2024 $ 16.8 $ 0.3 $ 17.1 The focus for restructuring activities in 2024 is to optimize operations and close under-performing assets. During the three months ended January 31, 2024, the Company recorded restructuring charges of $5.7 million, as compared to $2.4 million of restructuring charges recorded during the three months ended January 31, 2023. The restructuring activity for the three months ended January 31, 2024 consisted of $2.9 million in employee separation costs and $2.8 million in other restructuring costs, primarily consisting of professional fees and other fees associated with restructuring activities. 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-Q. Remaining amounts expected to be incurred were $13.8 million as of January 31, 2024: (in millions) Total Amounts Amounts Incurred During the Three Months Ended January 31, 2024 Amounts Global Industrial Packaging Employee separation costs $ 4.2 $ 0.7 $ 3.5 Other restructuring costs 1.2 0.2 1.0 5.4 0.9 4.5 Paper Packaging & Services Employee separation costs 2.3 2.2 0.1 Other restructuring costs 11.8 2.6 9.2 14.1 4.8 9.3 $ 19.5 $ 5.7 $ 13.8 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Jan. 31, 2024 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt is summarized as follows: (in millions) January 31, 2024 October 31, 2023 2022 Credit Agreement - Term Loans $ 1,473.7 $ 1,493.8 2023 Credit Agreement - Term Loan 294.4 296.3 Accounts receivable credit facilities 304.6 351.0 2022 Credit Agreement - Revolving Credit Facility 208.9 77.3 2,281.6 2,218.4 Less: current portion 88.3 88.3 Less: deferred financing costs 8.0 8.7 Long-term debt, net $ 2,185.3 $ 2,121.4 Credit Agreements The Company and certain of its subsidiaries are parties to a senior secured credit agreement (the “2022 Credit Agreement”) with a syndicate of financial institutions. 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 that commenced on July 31, 2022 and continue 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 that commenced on July 31, 2022 and continue 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. 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. Interest is based on Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment or a base rate that resets periodically plus, in each case, a calculated margin amount that is based on the Company’s leverage ratio. On May 17, 2023, the Company and Greif Packaging LLC, a direct wholly owned subsidiary of Greif, Inc. (“Greif Packaging”), entered into a $300.0 million senior secured credit agreement (the “2023 Credit Agreement” and, together with the 2022 Credit Agreement, the “2022 and 2023 Credit Agreements”) with CoBank, ACB (“CoBank”), which acted as a lender and is acting as administrative agent of the 2023 Credit Agreement. The 2023 Credit Agreement is permitted incremental equivalent debt under the terms of the 2022 Credit Agreement. The 2023 Credit Agreement provides for a $300.0 million secured term loan facility with quarterly principal installments that commenced on July 31, 2023 and will continue through January 31, 2028, with any outstanding principal balance of such term loan being due and payable on maturity on May 17, 2028. The Company used the borrowing under the 2023 Credit Agreement to repay and refinance a portion of the outstanding borrowings under the 2022 Credit Agreement. Interest accruing under the 2023 Credit Agreement is based on SOFR plus a credit spread adjustment or a base rate that resets periodically plus, in each case, a calculated margin amount that is based on the Company’s leverage ratio. As of January 31, 2024, $1,977.0 million was outstanding under the 2022 and 2023 Credit Agreements. The current portion was $88.3 million, and the long-term portion was $1,888.7 million. The weighted average interest rate for borrowings under the 2022 and 2023 Credit Agreements was 6.32% for the three months ended January 31, 2024. The actual interest rate for borrowings under the 2022 and 2023 Credit Agreements was 6.64% as of January 31, 2024. The deferred financing costs associated with the term loan portion of the 2022 and 2023 Credit Agreements totaled $8.0 million as of January 31, 2024 and are recorded as a reduction of long-term debt on the interim condensed consolidated balance sheets. The deferred financing costs associated with the revolving portion of the 2022 Credit Agreement totaled $3.2 million as of January 31, 2024 and are recorded within other long-term assets on the interim condensed consolidated balance sheets. United States Trade Accounts Receivable Credit Facility Greif Receivables Funding LLC (“Greif Funding”), Greif Packaging, and certain other U.S. subsidiaries of the Company are parties to an amended and restated U.S. Receivables Financing Facility Agreement (the “U.S. RFA”). On May 17, 2023, the maturity date of the U.S. RFA was extended to May 17, 2024. The U.S. RFA provides an accounts receivable financing facility of $300.0 million. As of January 31, 2024, there was $230.8 million ($270.9 million as of October 31, 2023) outstanding under the U.S. RFA that is reported as long-term debt on the interim condensed 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. 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. International Trade Accounts Receivable Credit Facility Cooperage Receivables Finance B.V. and Greif Services Belgium BV, an indirect wholly owned subsidiary of Greif, Inc., are parties to an amended and restated Nieuw Amsterdam Receivables Financing Agreement (the “European RFA”) with affiliates of a major international bank. On April 14, 2023, the maturity date of the European RFA was extended to April 23, 2024. The European RFA provides an accounts receivable financing facility of up to €100.0 million ($108.3 million as of January 31, 2024) secured by certain European accounts receivable. As of January 31, 2024, $73.8 million ($80.1 million as of October 31, 2023) was outstanding on the European RFA that is reported as long-term debt on the interim condensed 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. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jan. 31, 2024 | |
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 for those assets and (liabilities) measured on a recurring basis as of January 31, 2024 and October 31, 2023: January 31, 2024 Assets Liabilities (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives $ — $ 49.4 $ — $ 49.4 $ — $ (13.2) $ — $ (13.2) Foreign exchange hedges — 3.3 — 3.3 — (0.9) — (0.9) Insurance annuity — — 19.3 19.3 — — — — Cross currency swap — 17.4 — 17.4 — (7.0) — (7.0) October 31, 2023 Assets Liabilities (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives $ — $ 78.4 $ — $ 78.4 $ — $ — $ — $ — Foreign exchange hedges — 0.1 — 0.1 — (0.1) — (0.1) Insurance annuity — — 18.8 18.8 — — — — Cross currency swap — 18.9 — 18.9 — — — — The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts payable, current liabilities and short-term borrowings as of January 31, 2024 and October 31, 2023 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 January 31, 2024, the Company has various interest rate swaps with a total notional amount of $1,600.0 million, maturing between March 11, 2024 and July 16, 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 2.9%. This effectively converted 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. These derivatives are designated as cash flow hedges for accounting purposes. Accordingly, the gain or loss on these derivative instruments is 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 12 to the interim condensed consolidated financial statements 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. Gains reclassified to earnings under these contracts were $9.7 million and $4.7 million for the three months ended January 31, 2024, and 2023, respectively. A derivative gain of $25.2 million, based upon interest rates at January 31, 2024, 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 January 31, 2024, and October 31, 2023, the Company had outstanding foreign currency forward contracts in the notional amount of $465.5 million and $66.0 million, respectively. 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 are based on observable market pricing for similar instruments, principally foreign exchange futures contracts. For the three months ended January 31, 2024, and 2023, the Company recorded realized gains of $0.0 million and $0.1 million under fair value contracts in other expense, net. For the three months ended January 31, 2024, and 2023, the Company recorded unrealized net gains (losses) of $2.4 million and $(2.8) million in other expense, net. Cross Currency Swap The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. As of January 31, 2024, the Company has various cross currency interest rate swaps that synthetically swap $532.5 million of U.S. fixed rate debt to Euro denominated fixed rate debt. The Company receives a weighted average rate of 1.36% on these swaps. These agreements are designated as either net investment hedges or cash flow hedges for accounting purposes and will mature between March 2, 2024 and November 3, 2028. The gain or loss on these 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 12 to the interim condensed consolidated financial statements for additional disclosures 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 three months ended January 31, 2024 and 2023, gains recorded in interest expense, net under the cross currency swap agreements were $1.9 million and $1.4 million. Other Financial Instruments The fair values of the Company’s 2022 Credit Agreement, the 2023 Credit Agreement, the U.S. RFA, and the 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.” |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Jan. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Long-Term Incentive Plan The Company granted 120,843 restricted stock units (“RSUs”) on December 12, 2023, for the performance period commencing on November 1, 2023 and ending September 30, 2026. The weighted average fair value of the RSUs granted on that date was $62.83. During 2024, the Company issued 53,060 shares of Class A Common Stock excluding shares withheld for the payment of taxes owed by recipients for RSUs vested for the performance period commenced on November 1, 2020 and ended October 31, 2023. The Company granted 202,402 performance stock units (“PSUs”) on December 12, 2023, for the performance period commencing on November 1, 2023 and ending September 30, 2026. If earned, the PSUs are to be awarded in shares of Class A Common Stock. The weighted average fair value of the PSUs granted on that date was $60.77. The weighted average fair value of the PSUs at January 31, 2024 was $60.54. During 2024, the Company issued 229,859 shares of Class A Common Stock excluding shares withheld for the payment of taxes owed by recipients for PSUs vested for the performance period commenced on November 1, 2020 and ended October 31, 2023. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the quarter and year to date was computed in accordance with ASC 740-270 "Income Taxes - Interim Reporting." Under this method, losses from jurisdictions for which a valuation allowance has been provided have not been included in the amount to which the ASC 740-270 rate was applied. Income tax expense of the Company may fluctuate due to changes in estimated losses and income from jurisdictions for which a valuation allowance has been provided, the timing of recognition of the related tax expense under ASC 740-270, and the impact of discrete items in the respective quarter. For the three months ended January 31, 2024 and January 31, 2023, income tax (benefit) expense was $(38.2) million and $37.7 million, respectively. The $75.9 million net decrease in income tax expense was primarily attributable to the following: • |
POST RETIREMENT BENEFIT PLANS
POST RETIREMENT BENEFIT PLANS | 3 Months Ended |
Jan. 31, 2024 | |
Retirement Benefits [Abstract] | |
POST RETIREMENT BENEFIT PLANS | POST RETIREMENT BENEFIT PLANS The components of net periodic pension cost include the following: Three Months Ended (in millions) 2024 2023 Service cost $ 1.7 $ 2.0 Interest cost 8.6 8.7 Expected return on plan assets (10.8) (9.7) Amortization of prior service benefit (0.1) (0.1) Recognized net actuarial gain (0.2) (0.5) Net periodic pension (benefit) cost $ (0.8) $ 0.4 The Company expects to make employer contributions of $5.9 million, including benefits paid directly by the Company, during 2024. The components of net periodic pension cost and net periodic post-retirement benefit, other than the service cost components, are included in the line item “Other expense, net” in the interim condensed consolidated statements of income. |
CONTINGENT LIABILITIES AND ENVI
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES | 3 Months Ended |
Jan. 31, 2024 | |
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 interim condensed consolidated financial statements. The Company may 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. Environmental Reserves As of January 31, 2024, and October 31, 2023, the Company’s environmental reserves were $18.3 million and $17.3 million, respectively (including $9.8 million for the Diamond Alkali Superfund Site in the New Jersey). 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. It is possible that there could be resolution of uncertainties in the future that would require the Company to record charges that could be material to future earnings. The Company’s exposure to adverse developments with respect to any individual site is not expected to be material. Although environmental remediation could have a material effect on results of operations if a series of adverse developments occur in a particular quarter or year, the Company believes that the chance of a series of adverse developments occurring in the same quarter or year is remote. Future information and developments will require the Company to continually reassess the expected impact of these environmental matters. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jan. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The 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: Three Months Ended (in millions) 2024 2023 Numerator for basic and diluted EPS Net income attributable to Greif, Inc. $ 67.2 $ 89.9 Cash dividends (29.7) (28.9) Undistributed earnings attributable to Greif, Inc. $ 37.5 $ 61.0 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. The following table summarizes the shares of the Company’s Class A and Class B Common Stock as of the specified dates: Authorized Issued Outstanding Treasury January 31, 2024 Class A Common Stock 128,000,000 42,281,920 25,790,029 16,491,891 Class B Common Stock 69,120,000 34,560,000 21,331,127 13,228,873 October 31, 2023 Class A Common Stock 128,000,000 42,281,920 25,474,254 16,807,666 Class B Common Stock 69,120,000 34,560,000 21,331,127 13,228,873 The following is a reconciliation of the shares used to calculate basic and diluted earnings per share: Three Months Ended 2024 2023 Class A Common Stock: Basic shares 25,531,221 25,652,383 Assumed conversion of restricted shares 95,615 135,076 Diluted shares 25,626,836 25,787,459 Class B Common Stock: Basic and diluted shares 21,331,127 21,721,601 |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Jan. 31, 2024 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) The following table provides the rollforward of accumulated other comprehensive income (loss) for the three months ended January 31, 2024: (in millions) Foreign Derivative Financial Instruments Minimum Accumulated Balance as of October 31, 2023 $ (317.7) $ 71.7 $ (70.5) $ (316.5) Other comprehensive income (loss) 27.6 (36.2) (2.7) (11.3) Balance as of January 31, 2024 $ (290.1) $ 35.5 $ (73.2) $ (327.8) The following table provides the rollforward of accumulated other comprehensive income (loss) for the three months ended January 31, 2023: (in millions) Foreign Currency Derivative Minimum Pension Accumulated Other Balance as of October 31, 2022 $ (316.5) $ 72.8 $ (58.6) $ (302.3) Other comprehensive income (loss) 51.0 (25.7) (2.4) 22.9 Balance as of January 31, 2023 $ (265.5) $ 47.1 $ (61.0) $ (279.4) The components of accumulated other comprehensive income (loss) above are presented net of tax, as applicable. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Jan. 31, 2024 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has six operating segments, which are aggregated into three reportable business segments: Global Industrial Packaging; Paper Packaging & Services; and Land Management. The Company’s reportable business segments offer different products and services. The accounting policies of the reportable business segments are substantially the same as those described in the “Basis of Presentation and Summary of Significant Accounting Policies” note in the 2023 Form 10-K. The following tables present net sales disaggregated by geographic area for each reportable segment for the three months ended January 31, 2024: Three Months Ended January 31, 2024 (in millions) United States Europe, Middle East and Africa Asia Pacific and Other Americas Total Global Industrial Packaging $ 253.7 $ 294.7 $ 138.2 $ 686.6 Paper Packaging & Services 505.5 — 9.1 514.6 Land Management 4.6 — — 4.6 Total net sales $ 763.8 $ 294.7 $ 147.3 $ 1,205.8 The following tables present net sales disaggregated by geographic area for each reportable segment for the three months ended January 31, 2023: Three Months Ended January 31, 2023 (in millions) United States Europe, Middle East and Africa Asia Pacific and Other Americas Total Global Industrial Packaging $ 259.3 $ 314.8 $ 131.7 $ 705.8 Paper Packaging & Services 550.5 — 9.7 560.2 Land Management 5.0 — — 5.0 Total net sales $ 814.8 $ 314.8 $ 141.4 $ 1,271.0 The following segment information is presented for the periods indicated: Three Months Ended (in millions) 2024 2023 Operating profit: Global Industrial Packaging $ 50.9 $ 45.9 Paper Packaging & Services 16.8 109.1 Land Management 1.2 1.4 Total operating profit $ 68.9 $ 156.4 Depreciation, depletion and amortization expense: Global Industrial Packaging $ 25.4 $ 21.4 Paper Packaging & Services 34.5 33.1 Land Management 0.5 0.6 Total depreciation, depletion and amortization expense $ 60.4 $ 55.1 The following table presents total assets by segment and total properties, plants and equipment, net by geographic area: (in millions) January 31, October 31, Assets: Global Industrial Packaging $ 2,749.8 $ 2,737.5 Paper Packaging & Services 2,545.7 2,541.1 Land Management 255.1 253.2 Total segments 5,550.6 5,531.8 Corporate and other 418.5 429.0 Total assets $ 5,969.1 $ 5,960.8 Property, plant and equipment, net and lease right-of-use assets: United States $ 1,474.7 $ 1,468.6 Europe, Middle East and Africa 318.9 311.9 Asia Pacific and other Americas 107.1 102.9 Total long-lived assets, net $ 1,900.7 $ 1,883.4 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jan. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates. The fiscal year of Greif, Inc. and its subsidiaries (the “Company”) 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. The information filed herein reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated balance sheet as of January 31, 2024 and the condensed consolidated balance sheet as of October 31, 2023, the interim condensed consolidated statements of income, comprehensive income and changes in shareholders’ equity for the three months ended January 31, 2024 and 2023 and the interim condensed consolidated statements of cash flows for the three months ended January 31, 2024 and 2023 of the Company. The interim condensed consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and consolidated subsidiaries and investments in limited liability companies, partnerships and joint ventures in which it has controlling influence or is the primary beneficiary. Non-majority owned entities include investments in limited liability companies, partnerships and joint ventures in which the Company does not have controlling interest and are accounted for using either the equity or cost method, as appropriate. The unaudited interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2023 (the “2023 Form 10-K”). |
Newly Adopted Accounting Standards and Recently Issued Accounting Standards | Newly Adopted Accounting Standards There have been no new accounting standards adopted since the filing of the 2023 Form 10-K that have significance, or potential significance, to the interim condensed consolidated financial statements. Recently Issued Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, "Income Taxes (Topic 740): Improvements to Tax Disclosures,” which is intended to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The effective date for the Company to adopt this ASU for fiscal year-end is November 1, 2025. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flow and disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosure requirements. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The effective date for the Company to adopt this ASU for fiscal year-end and interim periods is November 1, 2024 and November 1, 2025 respectively. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flow and disclosures. |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration transferred to acquire ColePak and the preliminary valuation of identifiable assets acquired and liabilities assumed at the acquisition date: (in millions) Amounts Recognized as of the Acquisition Date Measurement Period Adjustments Amount Recognized as of Acquisition Date (as Adjusted) Fair value of consideration transferred Cash consideration $ 74.6 $ — $ 74.6 Noncontrolling interest 72.1 — 72.1 Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 6.7 $ — $ 6.7 Inventories 3.3 — 3.3 Intangibles 59.0 — 59.0 Operating lease right-of use assets 8.6 — 8.6 Properties, plants and equipment 19.4 — 19.4 Total assets acquired 97.0 — 97.0 Accounts payable and other current liabilities (1.8) — (1.8) Operating lease liabilities (8.6) — (8.6) Total liabilities assumed (10.4) — (10.4) Total identifiable net assets $ 86.6 $ — $ 86.6 Goodwill $ 60.1 $ — $ 60.1 The following table summarizes the consideration transferred to acquire Centurion and the preliminary valuation of identifiable assets acquired and liabilities assumed at the acquisition date: (in millions) Amounts Recognized as of the Acquisition Date Measurement Period Adjustments Amount Recognized as of Acquisition Date (as Adjusted) Fair value of consideration transferred Cash consideration $ 144.5 $ — $ 144.5 Noncontrolling interest 40.9 — 40.9 Previously held interest 16.8 — 16.8 Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 12.4 $ — $ 12.4 Inventories 2.0 — 2.0 Prepaid and other current assets 0.4 — 0.4 Intangibles 83.4 9.4 92.8 Operating lease right-of use assets 10.2 — 10.2 Properties, plants and equipment 7.7 — 7.7 Total assets acquired 116.1 9.4 125.5 Accounts payable (4.2) — (4.2) Other current liabilities (4.3) — (4.3) Operating lease liabilities (10.2) — (10.2) Total liabilities assumed (18.7) — (18.7) Total identifiable net assets $ 97.4 $ 9.4 $ 106.8 Goodwill $ 104.8 $ (9.4) $ 95.4 The following table summarizes the consideration transferred to acquire Lee Container and the final valuation of identifiable assets acquired and liabilities assumed at the acquisition date: (in millions) Amounts Recognized as of the Acquisition Date Measurement Period Adjustments Amount Recognized as of Acquisition Date (as Adjusted) Fair value of consideration transferred Cash consideration $ 302.8 $ 0.2 $ 303.0 Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 21.9 $ (0.4) $ 21.5 Inventories 27.5 (5.2) 22.3 Prepaid and other current assets 0.5 — 0.5 Intangibles 133.5 — 133.5 Finance lease right-of use assets 32.4 1.0 33.4 Properties, plants and equipment 54.7 — 54.7 Total assets acquired 270.5 (4.6) 265.9 Accounts payable (3.9) — (3.9) Accrued payroll and employee benefits (1.3) — (1.3) Other current liabilities (3.1) 2.9 (0.2) Finance lease liabilities (30.6) (2.8) (33.4) Total liabilities assumed (38.9) 0.1 (38.8) Total identifiable net assets $ 231.6 (4.5) 227.1 Goodwill $ 71.2 $ 4.7 $ 75.9 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the preliminary purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired as of the acquisition date: (in millions) Purchase Price Allocation Weighted Average Estimated Useful Life Customer relationships $ 50.6 15.0 Trademarks 8.4 5.0 Total intangible assets $ 59.0 (in millions) Purchase Price Allocation Weighted Average Estimated Useful Life Customer relationships $ 77.5 12.0 Favorable leases 1.6 19.0 Trademarks 13.7 5.0 Total intangible assets $ 92.8 (in millions) Purchase Price Allocation Weighted Average Estimated Useful Life Customer relationships $ 120.0 15.0 Trademarks 13.5 5.0 Total intangible assets $ 133.5 |
Business Acquisition, Pro Forma Information | The following unaudited supplemental pro forma data presents consolidated information as if the Lee Container Acquisition had been completed on November 1, 2021. These amounts were calculated after adjusting Lee Container’s results to reflect interest expense incurred on the debt to finance the acquisition, additional depreciation and amortization that would have been charged assuming the fair value of property, plant and equipment and intangible assets had been applied from November 1, 2021, the adjusted tax expense, and related transaction costs. Three Months Ended January 31, (in millions, except per share amounts) 2023 Pro forma net sales $ 1,288.4 Pro forma net income attributable to Greif, Inc. 102.2 Basic earnings per share attributable to Greif, Inc. common shareholders: Class A common stock $ 1.76 Class B common stock $ 2.63 Diluted earnings per share attributable to Greif, Inc. common shareholders: Class A common stock $ 1.75 Class B common stock $ 2.63 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
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 three months ended January 31, 2024: (in millions) Employee Other Total Balance at October 31, 2023 $ 16.4 $ 0.4 $ 16.8 Costs incurred and charged to expense 2.9 2.8 5.7 Costs paid or otherwise settled (2.5) (2.9) (5.4) Balance at January 31, 2024 $ 16.8 $ 0.3 $ 17.1 |
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-Q. Remaining amounts expected to be incurred were $13.8 million as of January 31, 2024: (in millions) Total Amounts Amounts Incurred During the Three Months Ended January 31, 2024 Amounts Global Industrial Packaging Employee separation costs $ 4.2 $ 0.7 $ 3.5 Other restructuring costs 1.2 0.2 1.0 5.4 0.9 4.5 Paper Packaging & Services Employee separation costs 2.3 2.2 0.1 Other restructuring costs 11.8 2.6 9.2 14.1 4.8 9.3 $ 19.5 $ 5.7 $ 13.8 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt is summarized as follows: (in millions) January 31, 2024 October 31, 2023 2022 Credit Agreement - Term Loans $ 1,473.7 $ 1,493.8 2023 Credit Agreement - Term Loan 294.4 296.3 Accounts receivable credit facilities 304.6 351.0 2022 Credit Agreement - Revolving Credit Facility 208.9 77.3 2,281.6 2,218.4 Less: current portion 88.3 88.3 Less: deferred financing costs 8.0 8.7 Long-term debt, net $ 2,185.3 $ 2,121.4 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Recurring Fair Value Measurements | The following table presents the fair value for those assets and (liabilities) measured on a recurring basis as of January 31, 2024 and October 31, 2023: January 31, 2024 Assets Liabilities (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives $ — $ 49.4 $ — $ 49.4 $ — $ (13.2) $ — $ (13.2) Foreign exchange hedges — 3.3 — 3.3 — (0.9) — (0.9) Insurance annuity — — 19.3 19.3 — — — — Cross currency swap — 17.4 — 17.4 — (7.0) — (7.0) October 31, 2023 Assets Liabilities (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives $ — $ 78.4 $ — $ 78.4 $ — $ — $ — $ — Foreign exchange hedges — 0.1 — 0.1 — (0.1) — (0.1) Insurance annuity — — 18.8 18.8 — — — — Cross currency swap — 18.9 — 18.9 — — — — |
POST RETIREMENT BENEFIT PLANS (
POST RETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Components Of Net Periodic Pension Cost | The components of net periodic pension cost include the following: Three Months Ended (in millions) 2024 2023 Service cost $ 1.7 $ 2.0 Interest cost 8.6 8.7 Expected return on plan assets (10.8) (9.7) Amortization of prior service benefit (0.1) (0.1) Recognized net actuarial gain (0.2) (0.5) Net periodic pension (benefit) cost $ (0.8) $ 0.4 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
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: Three Months Ended (in millions) 2024 2023 Numerator for basic and diluted EPS Net income attributable to Greif, Inc. $ 67.2 $ 89.9 Cash dividends (29.7) (28.9) Undistributed earnings attributable to Greif, Inc. $ 37.5 $ 61.0 |
Schedule of Company's Class A and Class B Common and Treasury Shares | The following table summarizes the shares of the Company’s Class A and Class B Common Stock as of the specified dates: Authorized Issued Outstanding Treasury January 31, 2024 Class A Common Stock 128,000,000 42,281,920 25,790,029 16,491,891 Class B Common Stock 69,120,000 34,560,000 21,331,127 13,228,873 October 31, 2023 Class A Common Stock 128,000,000 42,281,920 25,474,254 16,807,666 Class B Common Stock 69,120,000 34,560,000 21,331,127 13,228,873 |
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: Three Months Ended 2024 2023 Class A Common Stock: Basic shares 25,531,221 25,652,383 Assumed conversion of restricted shares 95,615 135,076 Diluted shares 25,626,836 25,787,459 Class B Common Stock: Basic and diluted shares 21,331,127 21,721,601 |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income (loss) for the three months ended January 31, 2024: (in millions) Foreign Derivative Financial Instruments Minimum Accumulated Balance as of October 31, 2023 $ (317.7) $ 71.7 $ (70.5) $ (316.5) Other comprehensive income (loss) 27.6 (36.2) (2.7) (11.3) Balance as of January 31, 2024 $ (290.1) $ 35.5 $ (73.2) $ (327.8) The following table provides the rollforward of accumulated other comprehensive income (loss) for the three months ended January 31, 2023: (in millions) Foreign Currency Derivative Minimum Pension Accumulated Other Balance as of October 31, 2022 $ (316.5) $ 72.8 $ (58.6) $ (302.3) Other comprehensive income (loss) 51.0 (25.7) (2.4) 22.9 Balance as of January 31, 2023 $ (265.5) $ 47.1 $ (61.0) $ (279.4) |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
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 three months ended January 31, 2024: Three Months Ended January 31, 2024 (in millions) United States Europe, Middle East and Africa Asia Pacific and Other Americas Total Global Industrial Packaging $ 253.7 $ 294.7 $ 138.2 $ 686.6 Paper Packaging & Services 505.5 — 9.1 514.6 Land Management 4.6 — — 4.6 Total net sales $ 763.8 $ 294.7 $ 147.3 $ 1,205.8 The following tables present net sales disaggregated by geographic area for each reportable segment for the three months ended January 31, 2023: Three Months Ended January 31, 2023 (in millions) United States Europe, Middle East and Africa Asia Pacific and Other Americas Total Global Industrial Packaging $ 259.3 $ 314.8 $ 131.7 $ 705.8 Paper Packaging & Services 550.5 — 9.7 560.2 Land Management 5.0 — — 5.0 Total net sales $ 814.8 $ 314.8 $ 141.4 $ 1,271.0 |
Schedule of Segment Information | The following segment information is presented for the periods indicated: Three Months Ended (in millions) 2024 2023 Operating profit: Global Industrial Packaging $ 50.9 $ 45.9 Paper Packaging & Services 16.8 109.1 Land Management 1.2 1.4 Total operating profit $ 68.9 $ 156.4 Depreciation, depletion and amortization expense: Global Industrial Packaging $ 25.4 $ 21.4 Paper Packaging & Services 34.5 33.1 Land Management 0.5 0.6 Total depreciation, depletion and amortization expense $ 60.4 $ 55.1 |
Schedule of Properties, Plants and Equipment, Net by Geographical Area | The following table presents total assets by segment and total properties, plants and equipment, net by geographic area: (in millions) January 31, October 31, Assets: Global Industrial Packaging $ 2,749.8 $ 2,737.5 Paper Packaging & Services 2,545.7 2,541.1 Land Management 255.1 253.2 Total segments 5,550.6 5,531.8 Corporate and other 418.5 429.0 Total assets $ 5,969.1 $ 5,960.8 Property, plant and equipment, net and lease right-of-use assets: United States $ 1,474.7 $ 1,468.6 Europe, Middle East and Africa 318.9 311.9 Asia Pacific and other Americas 107.1 102.9 Total long-lived assets, net $ 1,900.7 $ 1,883.4 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||
Aug. 23, 2023 | Mar. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | Oct. 31, 2023 | Mar. 30, 2023 | Dec. 15, 2022 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,704.1 | $ 1,693 | |||||
Proceeds from the sale of businesses | 0 | $ 105.6 | |||||
Gain on disposal of business | $ 0 | 54.6 | |||||
Tama Divestiture | |||||||
Business Acquisition [Line Items] | |||||||
Gain on disposal of business | 54.6 | ||||||
Discontinued Operations, Disposed of by Sale | Tama Divestiture | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from the sale of businesses | 100.2 | ||||||
Disposal group, including discontinued operation, goodwill | $ 22.5 | ||||||
ColePak Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percent acquired | 51% | ||||||
Fair value of remaining non-controlling interest | 49% | ||||||
Goodwill | $ 60.1 | ||||||
Centurion Container LLC | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percent acquired | 80% | 10% | |||||
Fair value of remaining non-controlling interest | 20% | ||||||
Goodwill | $ 95.4 | ||||||
Previously held interest | 16.8 | ||||||
Business combination, step acquisition, equity interest in acquiree, remeasurement gain (loss) | $ 9.8 | ||||||
Lee Container Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 75.9 | ||||||
Lee Container Acquisition | Building and Building Improvements | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Useful life | 1 year | ||||||
Lee Container Acquisition | Building and Building Improvements | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Useful life | 9 years | ||||||
Lee Container Acquisition | Equipment | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Useful life | 1 year | ||||||
Lee Container Acquisition | Equipment | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Useful life | 19 years |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Aug. 23, 2023 | Mar. 31, 2023 | Dec. 15, 2022 | Jan. 31, 2024 | Oct. 31, 2023 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Goodwill | $ 1,704.1 | $ 1,693 | |||
ColePak Acquisition | |||||
Fair value of consideration transferred | |||||
Cash consideration | $ 74.6 | ||||
Noncontrolling interest | 72.1 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Accounts receivable | 6.7 | ||||
Inventories | 3.3 | ||||
Intangibles | 59 | ||||
Operating lease right-of use assets | 8.6 | ||||
Properties, plants and equipment | 19.4 | ||||
Total assets acquired | 97 | ||||
Other current liabilities | (1.8) | ||||
Operating lease liabilities | (8.6) | ||||
Total liabilities assumed | (10.4) | ||||
Total identifiable net assets | 86.6 | ||||
Goodwill | 60.1 | ||||
ColePak Acquisition | Previously Reported | |||||
Fair value of consideration transferred | |||||
Cash consideration | 74.6 | ||||
Noncontrolling interest | 72.1 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Accounts receivable | 6.7 | ||||
Inventories | 3.3 | ||||
Intangibles | 59 | ||||
Operating lease right-of use assets | 8.6 | ||||
Properties, plants and equipment | 19.4 | ||||
Total assets acquired | 97 | ||||
Other current liabilities | (1.8) | ||||
Operating lease liabilities | (8.6) | ||||
Total liabilities assumed | (10.4) | ||||
Total identifiable net assets | 86.6 | ||||
Goodwill | $ 60.1 | ||||
Centurion Container LLC | |||||
Fair value of consideration transferred | |||||
Cash consideration | $ 144.5 | ||||
Noncontrolling interest | 40.9 | ||||
Previously held interest | 16.8 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Accounts receivable | 12.4 | ||||
Inventories | 2 | ||||
Prepaid and other current assets | 0.4 | ||||
Intangibles | 92.8 | ||||
Operating lease right-of use assets | 10.2 | ||||
Properties, plants and equipment | 7.7 | ||||
Total assets acquired | 125.5 | ||||
Accounts payable | (4.2) | ||||
Other current liabilities | (4.3) | ||||
Operating lease liabilities | (10.2) | ||||
Total liabilities assumed | (18.7) | ||||
Total identifiable net assets | 106.8 | ||||
Goodwill | 95.4 | ||||
Measurement Period Adjustments | |||||
Intangibles | 9.4 | ||||
Total assets acquired | 9.4 | ||||
Total identifiable net assets | 9.4 | ||||
Goodwill | (9.4) | ||||
Centurion Container LLC | Previously Reported | |||||
Fair value of consideration transferred | |||||
Cash consideration | 144.5 | ||||
Noncontrolling interest | 40.9 | ||||
Previously held interest | 16.8 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Accounts receivable | 12.4 | ||||
Inventories | 2 | ||||
Prepaid and other current assets | 0.4 | ||||
Intangibles | 83.4 | ||||
Operating lease right-of use assets | 10.2 | ||||
Properties, plants and equipment | 7.7 | ||||
Total assets acquired | 116.1 | ||||
Accounts payable | (4.2) | ||||
Other current liabilities | (4.3) | ||||
Operating lease liabilities | (10.2) | ||||
Total liabilities assumed | (18.7) | ||||
Total identifiable net assets | 97.4 | ||||
Goodwill | $ 104.8 | ||||
Lee Container Acquisition | |||||
Fair value of consideration transferred | |||||
Cash consideration | $ 303 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Accounts receivable | 21.5 | ||||
Inventories | 22.3 | ||||
Prepaid and other current assets | 0.5 | ||||
Intangibles | 133.5 | ||||
Finance lease right-of use assets | 33.4 | ||||
Properties, plants and equipment | 54.7 | ||||
Total assets acquired | 265.9 | ||||
Accounts payable | (3.9) | ||||
Accrued payroll and employee benefits | (1.3) | ||||
Other current liabilities | (0.2) | ||||
Finance lease liabilities | (33.4) | ||||
Total liabilities assumed | (38.8) | ||||
Total identifiable net assets | 227.1 | ||||
Goodwill | 75.9 | ||||
Measurement Period Adjustments | |||||
Cash consideration | 0.2 | ||||
Accounts receivable | (0.4) | ||||
Inventories | (5.2) | ||||
Finance lease right-of use assets | 1 | ||||
Total assets acquired | (4.6) | ||||
Other current liabilities | 2.9 | ||||
Finance lease liabilities | (2.8) | ||||
Total liabilities assumed | 0.1 | ||||
Total identifiable net assets | (4.5) | ||||
Goodwill | 4.7 | ||||
Lee Container Acquisition | Previously Reported | |||||
Fair value of consideration transferred | |||||
Cash consideration | 302.8 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Accounts receivable | 21.9 | ||||
Inventories | 27.5 | ||||
Prepaid and other current assets | 0.5 | ||||
Intangibles | 133.5 | ||||
Finance lease right-of use assets | 32.4 | ||||
Properties, plants and equipment | 54.7 | ||||
Total assets acquired | 270.5 | ||||
Accounts payable | (3.9) | ||||
Accrued payroll and employee benefits | (1.3) | ||||
Other current liabilities | (3.1) | ||||
Finance lease liabilities | (30.6) | ||||
Total liabilities assumed | (38.9) | ||||
Total identifiable net assets | 231.6 | ||||
Goodwill | $ 71.2 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - Schedule of Intangible Assets Assumed (Details) - USD ($) $ in Millions | Aug. 23, 2023 | Mar. 31, 2023 | Dec. 15, 2022 |
ColePak Acquisition | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 59 | ||
Centurion Container LLC | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 92.8 | ||
Lee Container Acquisition | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 133.5 | ||
Customer relationships | ColePak Acquisition | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 50.6 | ||
Weighted Average Estimated Useful Life | 15 years | ||
Customer relationships | Centurion Container LLC | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 77.5 | ||
Weighted Average Estimated Useful Life | 12 years | ||
Customer relationships | Lee Container Acquisition | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 120 | ||
Weighted Average Estimated Useful Life | 15 years | ||
Favorable leases | Centurion Container LLC | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 1.6 | ||
Weighted Average Estimated Useful Life | 19 years | ||
Trademarks | ColePak Acquisition | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 8.4 | ||
Weighted Average Estimated Useful Life | 5 years | ||
Trademarks | Centurion Container LLC | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 13.7 | ||
Weighted Average Estimated Useful Life | 5 years | ||
Trademarks | Lee Container Acquisition | |||
Business Acquisition [Line Items] | |||
Purchase Price Allocation | $ 13.5 | ||
Weighted Average Estimated Useful Life | 5 years |
ACQUISITIONS AND DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES - Pro forma (Details) - Lee Container Acquisition $ / shares in Units, $ in Millions | 3 Months Ended |
Jan. 31, 2023 USD ($) $ / shares | |
Business Acquisition [Line Items] | |
Pro forma net sales | $ | $ 1,288.4 |
Pro forma net income attributable to Greif, Inc. | $ | $ 102.2 |
Class A Common Stock | |
Business Acquisition [Line Items] | |
Basic earnings per share attributable to Greif, Inc. common shareholders: (in dollars per share) | $ 1.76 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: (in dollars per share) | 1.75 |
Class B Common Stock | |
Business Acquisition [Line Items] | |
Basic earnings per share attributable to Greif, Inc. common shareholders: (in dollars per share) | 2.63 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: (in dollars per share) | $ 2.63 |
RESTRUCTURING CHARGES - Reconci
RESTRUCTURING CHARGES - Reconciliation of Beginning and Ending Restructuring Reserve Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 16.8 | |
Costs incurred and charged to expense | 5.7 | $ 2.4 |
Costs paid or otherwise settled | (5.4) | |
Restructuring reserve, ending balance | 17.1 | |
Employee Separation Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 16.4 | |
Costs incurred and charged to expense | 2.9 | |
Costs paid or otherwise settled | (2.5) | |
Restructuring reserve, ending balance | 16.8 | |
Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0.4 | |
Costs incurred and charged to expense | 2.8 | |
Costs paid or otherwise settled | (2.9) | |
Restructuring reserve, ending balance | $ 0.3 |
RESTRUCTURING CHARGES - Additio
RESTRUCTURING CHARGES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Restructuring and Related Costs [Line Items] | ||
Restructuring charges | $ 5.7 | $ 2.4 |
Amounts remaining to be incurred | 13.8 | |
Employee Separation Costs | ||
Restructuring and Related Costs [Line Items] | ||
Restructuring charges | 2.9 | |
Other restructuring costs | ||
Restructuring and Related Costs [Line Items] | ||
Restructuring charges | $ 2.8 |
RESTRUCTURING CHARGES - Amounts
RESTRUCTURING CHARGES - Amounts Expected to be Incurred, Amounts Incurred, and Amounts Remaining to Be Incurred (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Restructuring and Related Costs [Line Items] | ||
Total Amounts Expected to be Incurred | $ 19.5 | |
Amounts Incurred During the Three Months Ended January 31, 2024 | 5.7 | $ 2.4 |
Amounts Remaining to be Incurred | 13.8 | |
Employee separation costs | ||
Restructuring and Related Costs [Line Items] | ||
Amounts Incurred During the Three Months Ended January 31, 2024 | 2.9 | |
Other restructuring costs | ||
Restructuring and Related Costs [Line Items] | ||
Amounts Incurred During the Three Months Ended January 31, 2024 | 2.8 | |
Global Industrial Packaging | ||
Restructuring and Related Costs [Line Items] | ||
Total Amounts Expected to be Incurred | 5.4 | |
Amounts Incurred During the Three Months Ended January 31, 2024 | 0.9 | |
Amounts Remaining to be Incurred | 4.5 | |
Global Industrial Packaging | Employee separation costs | ||
Restructuring and Related Costs [Line Items] | ||
Total Amounts Expected to be Incurred | 4.2 | |
Amounts Incurred During the Three Months Ended January 31, 2024 | 0.7 | |
Amounts Remaining to be Incurred | 3.5 | |
Global Industrial Packaging | Other restructuring costs | ||
Restructuring and Related Costs [Line Items] | ||
Total Amounts Expected to be Incurred | 1.2 | |
Amounts Incurred During the Three Months Ended January 31, 2024 | 0.2 | |
Amounts Remaining to be Incurred | 1 | |
Paper Packaging & Services | ||
Restructuring and Related Costs [Line Items] | ||
Total Amounts Expected to be Incurred | 14.1 | |
Amounts Incurred During the Three Months Ended January 31, 2024 | 4.8 | |
Amounts Remaining to be Incurred | 9.3 | |
Paper Packaging & Services | Employee separation costs | ||
Restructuring and Related Costs [Line Items] | ||
Total Amounts Expected to be Incurred | 2.3 | |
Amounts Incurred During the Three Months Ended January 31, 2024 | 2.2 | |
Amounts Remaining to be Incurred | 0.1 | |
Paper Packaging & Services | Other restructuring costs | ||
Restructuring and Related Costs [Line Items] | ||
Total Amounts Expected to be Incurred | 11.8 | |
Amounts Incurred During the Three Months Ended January 31, 2024 | 2.6 | |
Amounts Remaining to be Incurred | $ 9.2 |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Jan. 31, 2024 | Oct. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,281.6 | $ 2,218.4 |
Less: current portion | 88.3 | 88.3 |
Less: deferred financing costs | 8 | 8.7 |
Long-term debt, net | 2,185.3 | 2,121.4 |
Term Loan | 2022 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,473.7 | 1,493.8 |
Term Loan | 2023 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 294.4 | 296.3 |
Accounts receivable credit facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt | 304.6 | 351 |
Revolving Credit Facility | 2022 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 208.9 | $ 77.3 |
LONG-TERM DEBT - Credit Agreeme
LONG-TERM DEBT - Credit Agreement (Details) - USD ($) | Jan. 31, 2024 | Oct. 31, 2023 | May 17, 2023 | Mar. 01, 2022 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 2,281,600,000 | $ 2,218,400,000 | ||
Current portion of long-term debt | 88,300,000 | 88,300,000 | ||
Long-term debt, net | 2,185,300,000 | 2,121,400,000 | ||
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 1,977,000,000 | |||
Term Loan | Secured Term Loan A-1 Facility | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 1,100,000,000 | |||
Term Loan | Secured Term Loan A-2 Facility | ||||
Debt Instrument [Line Items] | ||||
Debt issued | 515,000,000 | |||
Revolving Credit Facility | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | 88,300,000 | |||
Long-term debt, net | $ 1,888,700,000 | |||
Weighted average interest rate | 6.32% | |||
Actual interest rate | 6.64% | |||
Revolving Credit Facility | 2022 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 208,900,000 | $ 77,300,000 | ||
Debt issuance costs | 3,200,000 | |||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 300,000,000 | 800,000,000 | ||
Multicurrency Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 725,000,000 | |||
U.S. Dollar Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 75,000,000 | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 8,000,000 |
LONG-TERM DEBT - Trade Accounts
LONG-TERM DEBT - Trade Accounts Receivable Credit Facility (Details) $ in Millions | Jan. 31, 2024 USD ($) | Jan. 31, 2024 EUR (€) | Oct. 31, 2023 USD ($) | May 17, 2023 USD ($) |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 2,281.6 | $ 2,218.4 | ||
Accounts receivable credit facilities | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 304.6 | 351 | ||
United States Trade Accounts receivable credit facilities | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 300 | |||
United States Trade Accounts receivable credit facilities | Accounts receivable credit facilities | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | 230.8 | 270.9 | ||
International Trade Accounts Receivable Credit Facilities | European RPA | ||||
Debt Instrument [Line Items] | ||||
Financing receivable maximum amount under receivable purchase agreement | 108.3 | € 100,000,000 | ||
International Trade Accounts Receivable Credit Facilities | Foreign Line of Credit | European RPA | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 73.8 | $ 80.1 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jan. 31, 2024 | Oct. 31, 2023 |
Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 49.4 | $ 78.4 |
Liabilities | (13.2) | 0 |
Foreign exchange hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3.3 | 0.1 |
Liabilities | (0.9) | (0.1) |
Insurance annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 19.3 | 18.8 |
Liabilities | 0 | 0 |
Cross currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 17.4 | 18.9 |
Liabilities | (7) | 0 |
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 | 49.4 | 78.4 |
Liabilities | (13.2) | 0 |
Level 2 | Foreign exchange hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3.3 | 0.1 |
Liabilities | (0.9) | (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 | 17.4 | 18.9 |
Liabilities | (7) | 0 |
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 | 19.3 | 18.8 |
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 ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gains recorded in interest expense | $ (24.2) | $ (22.8) | |
Interest rate derivatives | Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | $ 1,600 | ||
Derivative, forward interest rate | 2.90% | ||
Gains (losses) reclassified to earnings | $ 9.7 | 4.7 | |
Gain to be reclassified within next twelve months | 25.2 | ||
Foreign Currency Forward Contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | 465.5 | $ 66 | |
Gain (losses) recorded under fair value contracts | 0 | 0.1 | |
Unrealized gain (losses) on foreign currency | 2.4 | (2.8) | |
Cross currency swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | $ 532.5 | ||
Derivative, forward interest rate | 1.36% | ||
Gains recorded in interest expense | $ 1.9 | $ 1.4 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - $ / shares | 3 Months Ended | |
Dec. 12, 2023 | Jan. 31, 2024 | |
RSUs | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued in period (in shares) | 53,060 | |
RSUs | 2020 LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of restricted stock (in shares) | 120,843 | |
Weighted average grant date fair value (in usd per share) | $ 62.83 | |
PSUs | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued in period (in shares) | 229,859 | |
PSUs | 2020 LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of restricted stock (in shares) | 202,402 | |
Weighted average grant date fair value (in usd per share) | $ 60.77 | $ 60.54 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax (benefit) expense | $ (38.2) | $ 37.7 |
Increase in tax expense | 75.9 | |
Miscellaneous other items | 9 | |
One-time discrete tax benefit | 48.1 | |
Nondeductible expense | $ 18.8 |
POST RETIREMENT BENEFIT PLANS -
POST RETIREMENT BENEFIT PLANS - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 1.7 | $ 2 |
Interest cost | 8.6 | 8.7 |
Expected return on plan assets | (10.8) | (9.7) |
Amortization of prior service benefit | (0.1) | (0.1) |
Recognized net actuarial gain | (0.2) | (0.5) |
Net periodic pension (benefit) cost | $ (0.8) | $ 0.4 |
POST RETIREMENT BENEFIT PLANS_2
POST RETIREMENT BENEFIT PLANS - Additional Information (Details) $ in Millions | Oct. 31, 2024 USD ($) |
Scenario, Forecast | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future employer contributions | $ 5.9 |
CONTINGENT LIABILITIES AND EN_2
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES (Details) - USD ($) $ in Millions | Jan. 31, 2024 | Oct. 31, 2023 |
Site Contingency [Line Items] | ||
Environmental liability reserves | $ 18.3 | $ 17.3 |
Diamond Alkali | ||
Site Contingency [Line Items] | ||
Environmental liability reserves | $ 9.8 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) | 3 Months Ended |
Jan. 31, 2024 class_of_stock $ / shares | |
Class of Stock [Line Items] | |
Number of classes of stock | class_of_stock | 2 |
Class A Common Stock | |
Class of Stock [Line Items] | |
Dividend proportions (in usd per share) | $ 0.01 |
Percentage of shares outstanding used in two class method calculation | 40% |
Class B Common Stock | |
Class of Stock [Line Items] | |
Dividend proportions (in usd per share) | $ 0.015 |
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 ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Numerator for basic and diluted EPS | ||
Net income attributable to Greif, Inc. | $ 67.2 | $ 89.9 |
Cash dividends | (29.7) | (28.9) |
Undistributed earnings attributable to Greif, Inc. | $ 37.5 | $ 61 |
EARNINGS PER SHARE - Summarizat
EARNINGS PER SHARE - Summarization of Company's Class A and Class B Common and Treasury Shares (Details) - shares | Jan. 31, 2024 | Oct. 31, 2023 |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Authorized Shares (in shares) | 128,000,000 | 128,000,000 |
Issued Shares (in shares) | 42,281,920 | 42,281,920 |
Outstanding Shares (in shares) | 25,790,029 | 25,474,254 |
Treasury Shares (in shares) | 16,491,891 | 16,807,666 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Authorized Shares (in shares) | 69,120,000 | 69,120,000 |
Issued Shares (in shares) | 34,560,000 | 34,560,000 |
Outstanding Shares (in shares) | 21,331,127 | 21,331,127 |
Treasury Shares (in shares) | 13,228,873 | 13,228,873 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of Shares Used to Calculate Basic and Diluted Earnings Per Share (Details) - shares | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Basic shares (in shares) | 25,531,221 | 25,652,383 |
Assumed conversion of restricted shares (in shares) | 95,615 | 135,076 |
Diluted shares (in shares) | 25,626,836 | 25,787,459 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Basic shares (in shares) | 21,331,127 | 21,721,601 |
Diluted shares (in shares) | 21,331,127 | 21,721,601 |
COMPREHENSIVE INCOME (LOSS) - S
COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | $ 1,986.3 | $ 1,794.3 |
Ending balance | 2,036.4 | 1,882.2 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (316.5) | (302.3) |
Other comprehensive income (loss) | (11.3) | 22.9 |
Ending balance | (327.8) | (279.4) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (317.7) | (316.5) |
Other comprehensive income (loss) | 27.6 | 51 |
Ending balance | (290.1) | (265.5) |
Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | 71.7 | 72.8 |
Other comprehensive income (loss) | (36.2) | (25.7) |
Ending balance | 35.5 | 47.1 |
Minimum Pension Liability Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (70.5) | (58.6) |
Other comprehensive income (loss) | (2.7) | (2.4) |
Ending balance | $ (73.2) | $ (61) |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Additional Information (Details) | 3 Months Ended |
Jan. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 6 |
Number of reportable segment | 3 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total net sales | $ 1,205.8 | $ 1,271 |
Global Industrial Packaging | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 686.6 | 705.8 |
Paper Packaging & Services | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 514.6 | 560.2 |
Land Management | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 4.6 | 5 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 763.8 | 814.8 |
United States | Global Industrial Packaging | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 253.7 | 259.3 |
United States | Paper Packaging & Services | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 505.5 | 550.5 |
United States | Land Management | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 4.6 | 5 |
Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 294.7 | 314.8 |
Europe, Middle East and Africa | Global Industrial Packaging | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 294.7 | 314.8 |
Europe, Middle East and Africa | Paper Packaging & Services | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 0 | 0 |
Europe, Middle East and Africa | Land Management | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 0 | 0 |
Asia Pacific and Other Americas | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 147.3 | 141.4 |
Asia Pacific and Other Americas | Global Industrial Packaging | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 138.2 | 131.7 |
Asia Pacific and Other Americas | Paper Packaging & Services | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 9.1 | 9.7 |
Asia Pacific and Other Americas | Land Management | ||
Segment Reporting Information [Line Items] | ||
Total net sales | $ 0 | $ 0 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Operating profit: | ||
Total operating profit | $ 68.9 | $ 156.4 |
Depreciation, depletion and amortization expense: | ||
Total depreciation, depletion and amortization expense | 60.4 | 55.1 |
Global Industrial Packaging | ||
Operating profit: | ||
Total operating profit | 50.9 | 45.9 |
Depreciation, depletion and amortization expense: | ||
Total depreciation, depletion and amortization expense | 25.4 | 21.4 |
Paper Packaging & Services | ||
Operating profit: | ||
Total operating profit | 16.8 | 109.1 |
Depreciation, depletion and amortization expense: | ||
Total depreciation, depletion and amortization expense | 34.5 | 33.1 |
Land Management | ||
Operating profit: | ||
Total operating profit | 1.2 | 1.4 |
Depreciation, depletion and amortization expense: | ||
Total depreciation, depletion and amortization expense | $ 0.5 | $ 0.6 |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Properties, Plants and Equipment, Net by Geographical Area (Details) - USD ($) $ in Millions | Jan. 31, 2024 | Oct. 31, 2023 |
Assets: | ||
Total assets | $ 5,969.1 | $ 5,960.8 |
Long lived assets, net: | ||
Total long-lived assets, net | 1,900.7 | 1,883.4 |
United States | ||
Long lived assets, net: | ||
Total long-lived assets, net | 1,474.7 | 1,468.6 |
Europe, Middle East and Africa | ||
Long lived assets, net: | ||
Total long-lived assets, net | 318.9 | 311.9 |
Asia Pacific and Other Americas | ||
Long lived assets, net: | ||
Total long-lived assets, net | 107.1 | 102.9 |
Operating Segments | ||
Assets: | ||
Total assets | 5,550.6 | 5,531.8 |
Operating Segments | Global Industrial Packaging | ||
Assets: | ||
Total assets | 2,749.8 | 2,737.5 |
Operating Segments | Paper Packaging & Services | ||
Assets: | ||
Total assets | 2,545.7 | 2,541.1 |
Operating Segments | Land Management | ||
Assets: | ||
Total assets | 255.1 | 253.2 |
Corporate and other | ||
Assets: | ||
Total assets | $ 418.5 | $ 429 |