Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2022 shares | |
Cover | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Jun. 30, 2022 |
Entity File Number | 1-9576 |
Entity Registrant Name | O-I GLASS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 22-2781933 |
Entity Address, Address Line One | One Michael Owens Way |
Entity Address, City or Town | Perrysburg |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 43551 |
City Area Code | 567 |
Local Phone Number | 336-5000 |
Title of 12(b) Security | Common Stock, $.01 par value |
Security Exchange Name | NYSE |
Trading Symbol | OI |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 155,716,434 |
Entity Central Index Key | 0000812074 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED RESULTS
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS | ||||
Net sales | $ 1,778 | $ 1,660 | $ 3,469 | $ 3,161 |
Revenue, Product and Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Cost of goods sold | $ (1,453) | $ (1,354) | $ (2,841) | $ (2,609) |
Gross profit | 325 | 306 | 628 | 552 |
Selling and administrative expense | (123) | (116) | (243) | (218) |
Research, development and engineering expense | (20) | (19) | (42) | (37) |
Interest expense, net | (46) | (52) | (112) | (103) |
Equity earnings | 24 | 22 | 47 | 40 |
Other income (expense), net | 168 | 57 | 220 | (101) |
Earnings before income taxes | 328 | 198 | 498 | 133 |
Provision for income taxes | (72) | (75) | (120) | (100) |
Net earnings | 256 | 123 | 378 | 33 |
Net earnings attributable to non-controlling interests | (4) | (5) | (38) | (12) |
Net earnings attributable to the Company | $ 252 | $ 118 | $ 340 | $ 21 |
Basic earnings per share: | ||||
Net earnings attributable to the Company (in dollars per share) | $ 1.62 | $ 0.75 | $ 2.18 | $ 0.13 |
Weighted average shares outstanding (thousands) (in shares) | 155,683 | 157,902 | 155,765 | 157,737 |
Diluted earnings per share: | ||||
Net earnings attributable to the Company (in dollars per share) | $ 1.59 | $ 0.73 | $ 2.14 | $ 0.13 |
Weighted average diluted shares outstanding (thousands) (in shares) | 158,951 | 160,791 | 158,874 | 160,459 |
CONDENSED CONSOLIDATED COMPREHE
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS) | ||||
Net earnings | $ 256 | $ 123 | $ 378 | $ 33 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (123) | 125 | 12 | 38 |
Pension and other postretirement benefit adjustments, net of tax | 26 | 17 | 44 | 37 |
Change in fair value of derivative instruments, net of tax | 20 | 23 | 13 | |
Other comprehensive income (loss) attributable to the Company | (77) | 142 | 79 | 88 |
Total comprehensive income | 179 | 265 | 457 | 121 |
Comprehensive (income) loss attributable to non-controlling interests | 4 | (7) | (35) | (8) |
Comprehensive income attributable to the Company | $ 183 | $ 258 | $ 422 | $ 113 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 661 | $ 725 | $ 531 |
Trade receivables, net of allowance of $29 million, $28 million, and $32 million at June 30, 2022, December 31, 2021 and June 30, 2021 | 957 | 692 | 855 |
Inventories | 775 | 816 | 796 |
Prepaid expenses and other current assets | 224 | 237 | 217 |
Assets held for sale | 49 | ||
Total current assets | 2,617 | 2,519 | 2,399 |
Property, plant and equipment, net | 2,758 | 2,817 | 2,842 |
Goodwill | 1,792 | 1,840 | 1,932 |
Intangibles, net | 272 | 286 | 309 |
Other assets | 1,434 | 1,370 | 1,392 |
Total assets | 8,873 | 8,832 | 8,874 |
Current liabilities: | |||
Accounts payable | 1,190 | 1,210 | 1,038 |
Short-term loans and long-term debt due within one year | 65 | 72 | 85 |
Other liabilities | 530 | 551 | 564 |
Liabilities held for sale | 13 | ||
Total current liabilities | 1,785 | 1,846 | 1,687 |
Long-term debt | 4,427 | 4,753 | 4,977 |
Paddock support agreement liability | 625 | 625 | 625 |
Other long-term liabilities | 777 | 781 | 1,083 |
Share owners' equity | 1,259 | 827 | 502 |
Total liabilities and share owners' equity | $ 8,873 | $ 8,832 | $ 8,874 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
Trade receivables allowance | $ 29 | $ 28 | $ 32 |
CONDENSED CONSOLIDATED CASH FLO
CONDENSED CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash flows from operating activities: | |||
Net earnings | $ 378 | $ 33 | |
Non-cash charges | |||
Depreciation and amortization | 232 | 232 | |
Pension expense | 16 | 16 | |
Charge related to Paddock support agreement liability | 154 | ||
Brazil indirect tax credit | (69) | ||
Restructuring, asset impairment and related charges | 11 | 8 | |
Gain on sale of divested business | (55) | ||
Gain on sale leaseback | (182) | ||
Cash payments | |||
Pension contributions | (12) | (24) | |
Cash paid for restructuring activities | (8) | (10) | |
Change in components of working capital | (250) | (229) | |
Other, net (a) | [1] | (10) | 32 |
Cash provided by operating activities | 120 | 143 | |
Cash flows from investing activities: | |||
Cash payments for property, plant and equipment | (199) | (175) | |
Contributions and advances to joint ventures | (11) | ||
Cash proceeds on disposal of other businesses and misc. assets | 96 | 8 | |
Cash proceeds on sale leaseback | 190 | ||
Cash proceeds on sale of ANZ businesses, net of transaction costs | 58 | ||
Other | (10) | ||
Cash provided by (utilized in) investing activities | 66 | (109) | |
Cash flows from financing activities: | |||
Changes in borrowings, net | (213) | (26) | |
Payment of finance fees | (20) | ||
Shares repurchased | (20) | (20) | |
Net cash receipts (payments) for hedging activity | 38 | (10) | |
Distributions to non-controlling interests | (26) | (10) | |
Issuance of common stock and other | (2) | (2) | |
Cash utilized in financing activities | (243) | (68) | |
Effect of exchange rate fluctuations on cash | (7) | 2 | |
Change in cash | (64) | (32) | |
Cash at beginning of period | 725 | 563 | |
Cash at end of period | $ 661 | $ 531 | |
[1] Other, net includes other non-cash charges plus other changes in non-current assets and liabilities. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Information | |
Segment Information | 1. Segment Information The Company has two reportable segments and two operating segments based on its geographic locations: the Americas and Europe. These segments are aligned with the Company’s internal approach to managing, reporting, and evaluating performance of its global glass operations. Certain assets and activities not directly related to one of the segments or to glass manufacturing are reported with Retained corporate costs and other. These include licensing, equipment manufacturing, global engineering, certain equity investments and the remaining businesses in the Asia Pacific region that do not meet the criteria of an individually reportable segment after the sale of the Company’s Australia and New Zealand businesses in 2020. Retained corporate costs and other also includes certain headquarters administrative and facilities costs and certain incentive compensation and other benefit plan costs that are global in nature and are not allocable to the reportable segments. The Company’s measure of profit for its reportable segments is segment operating profit, which consists of consolidated earnings before interest income, interest expense, and benefit (provision) for income taxes and excludes amounts related to certain items that management considers not representative of ongoing operations and other adjustments, as well as certain retained corporate costs. The Company’s management, including the chief operating decision maker (defined as our chief executive officer), uses segment operating profit, in combination with net sales and selected cash flow information, to evaluate performance and to allocate resources. Segment operating profit for reportable segments includes an allocation of some corporate expenses based on both a percentage of sales and direct billings based on the costs of specific services provided. Segment operating profit is not a recognized term under accounting principles generally accepted in the United States (“U.S. GAAP”) and, therefore, does not purport to be an alternative to earnings before income taxes. Further, the Company's measure of segment operating profit may not be comparable to similarly titled measures of other companies. Financial information for the three and six months ended June 30, 2022 and 2021 regarding the Company’s reportable segments is as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Net sales: Americas $ 971 $ 890 $ 1,912 $ 1,727 Europe 765 745 1,474 1,384 Reportable segment totals 1,736 1,635 3,386 3,111 Other 42 25 83 50 Net sales $ 1,778 $ 1,660 $ 3,469 $ 3,161 Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Earnings before income taxes $ 328 $ 198 $ 498 $ 133 Items excluded from segment operating profit: Retained corporate costs and other 53 42 103 77 Gain on sale of divested business (55) Gain on sale leaseback (182) (182) Restructuring, asset impairment and other charges 12 9 12 9 Brazil indirect tax credit (69) (69) Charge related to Paddock support agreement liability 154 Interest expense, net 46 52 112 103 Segment operating profit $ 257 $ 232 $ 488 $ 407 Americas $ 130 $ 124 $ 258 $ 224 Europe 127 108 230 183 Reportable segment totals $ 257 $ 232 $ 488 $ 407 Financial information regarding the Company’s total assets is as follows: June 30, December 31, June 30, 2022 2021 2021 Total assets: Americas $ 5,028 $ 4,853 $ 4,972 Europe 3,325 3,513 3,502 Reportable segment totals 8,353 8,366 8,474 Other 520 466 400 Consolidated totals $ 8,873 $ 8,832 $ 8,874 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue | |
Revenue | 2. Revenue Revenue is recognized at a point in time when obligations under the terms of the Company’s contracts and related purchase orders with its customers are satisfied. This occurs with the transfer of control of glass containers, which primarily takes place when products are shipped from the Company’s manufacturing or warehousing facilities to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, which includes estimated provisions for rebates, discounts, returns and allowances. Sales, value-added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company’s payment terms are based on customary business practices and can vary by customer type. The term between invoicing and when payment is due is not significant. Also, the Company elected to account for shipping and handling costs as a fulfillment cost at the time of shipment. For the three- and six-month periods ended June 30, 2022 and June 30, 2021, the Company had no material bad debt expense, and there were no material contract assets, contract liabilities or deferred contract costs recorded on the Condensed Consolidated Balance Sheet. The following tables for the three months ended June 30, 2022 and 2021 disaggregate the Company’s revenue by customer end use: Three months ended June 30, 2022 Americas Europe Total Alcoholic beverages (beer, wine, spirits) $ 613 $ 576 $ 1,189 Food and other 199 122 321 Non-alcoholic beverages 159 67 226 Reportable segment totals $ 971 $ 765 $ 1,736 Other 42 Net sales $ 1,778 Three months ended June 30, 2021 Americas Europe Total Alcoholic beverages (beer, wine, spirits) $ 546 $ 564 $ 1,110 Food and other 204 123 327 Non-alcoholic beverages 140 58 198 Reportable segment totals $ 890 $ 745 $ 1,635 Other 25 Net sales $ 1,660 The following tables for the six months ended June 30, 2022 and 2021 disaggregate the Company’s revenue by customer end use: Six months ended June 30, 2022 Americas Europe Total Alcoholic beverages (beer, wine, spirits) $ 1,189 $ 1,113 $ 2,302 Food and other 413 232 645 Non-alcoholic beverages 310 129 439 Reportable segment totals $ 1,912 $ 1,474 $ 3,386 Other 83 Net sales $ 3,469 Six months ended June 30, 2021 Americas Europe Total Alcoholic beverages (beer, wine, spirits) $ 1,049 $ 1,040 $ 2,089 Food and other 413 242 655 Non-alcoholic beverages 265 102 367 Reportable segment totals $ 1,727 $ 1,384 $ 3,111 Other 50 Net sales $ 3,161 |
Credit Losses
Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
Credit Losses | |
Credit Losses | 3. Credit Losses The Company is exposed to credit losses primarily through its sales of glass containers to customers. The Company’s trade receivables from customers are due within one year or less. The Company assesses each customer’s ability to pay for the glass containers it sells to them by conducting a credit review. The credit review considers the expected billing exposure and timing for payment and the customer’s established credit rating or the Company’s assessment of the customer’s creditworthiness, based on an analysis of their financial statements when a credit rating is not available. The Company also considers contract terms and conditions, country and political risk, and business strategy in its evaluation. A credit limit is established for each customer based on the outcome of this review. The Company may require collateralized asset support or a prepayment to mitigate credit risk. The Company monitors its ongoing credit exposure through the active review of customer balances against contract terms and due dates, including timely account reconciliation, dispute resolution and payment confirmation. The Company may employ collection agencies and legal counsel to pursue the recovery of defaulted receivables. At June 30, 2022 and June 30, 2021, the Company reported $957 million and $855 million of accounts receivable, respectively, net of allowances of $29 million and $32 million, respectively. Changes in the allowance were not material for each of the three and six months ended June 30, 2022 and June 30, 2021. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventories | |
Inventories | 4. Inventories Major classes of inventory at June 30, 2022, December 31, 2021 and June 30, 2021 are as follows: June 30, December 31, June 30, 2022 2021 2021 Finished goods $ 618 $ 659 $ 636 Raw materials 115 119 122 Operating supplies 42 38 38 $ 775 $ 816 $ 796 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments | |
Derivative Instruments | 5. Derivative Instruments The Company has certain derivative assets and liabilities, which consist of natural gas forwards and collars, foreign exchange option and forward contracts, interest rate swaps and cross-currency swaps. The valuation of these instruments is determined primarily using the income approach, including discounted cash flow analysis on the expected cash flows of each derivative. Natural gas prices, foreign exchange rates and interest rates are the significant inputs into the valuation models. The Company also evaluates counterparty risk in determining fair values. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. Estimates of the fair value of foreign currency and commodity derivative instruments are determined using exchange traded prices and rates. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. These inputs are observable in active markets over the terms of the instruments the Company holds, and, accordingly, the Company classifies its derivative assets and liabilities as Level 2 in the hierarchy. Commodity Forward Contracts and Collars Designated as Cash Flow Hedges An unrecognized loss of Cash Flow Hedges of Foreign Exchange Risk An unrecognized gain of $1 million at June 30, 2022, an unrecognized gain of $6 million at December 31, 2021 and an unrecognized gain of $9 million at June 30, 2021, related to these cross-currency swaps, was included in Accumulated OCI, and will be reclassified into earnings within the next 12 months. Fair Value Hedges of Foreign Exchange Risk The Company has fixed interest rate borrowings denominated in currencies other than the functional currency of the borrowing subsidiaries. As a result, the Company is exposed to fluctuations in the currency of the borrowing against the subsidiaries’ functional currency. The Company uses derivatives to manage these exposures and designates these derivatives as fair value hedges of foreign exchange risk. Approximately $6 million of the components were excluded from the assessment of effectiveness and are included in Accumulated OCI at June 30, 2022 and December 31, 2021. Interest Rate Swaps Designated as Fair Value Hedges The Company enters into interest rate swaps in order to maintain a capital structure containing targeted amounts of fixed and floating-rate debt and manage interest rate risk. The Company’s fixed-to-variable interest rate swaps are accounted for as fair value hedges. The relevant terms of the swap agreements match the corresponding terms of the notes, and therefore, there is no hedge ineffectiveness. The Company recorded the net of the fair market values of the swaps as a long-term liability and short-term asset, along with a corresponding net decrease in the carrying value of the hedged debt. Net Investment Hedges The Company is exposed to fluctuations in foreign exchange rates on investments it holds in non-U.S. subsidiaries and uses cross-currency swaps to partially hedge this exposure. Foreign Exchange Derivative Contracts Not Designated as Hedging Instruments The Company uses short-term forward exchange or option agreements to purchase foreign currencies at set rates in the future. These agreements are used to limit exposure to fluctuations in foreign currency exchange rates for significant planned purchases of fixed assets or commodities that are denominated in currencies other than the subsidiaries’ functional currency. The Company also uses foreign exchange agreements to offset the foreign currency exchange rate risk for receivables and payables, including intercompany receivables, payables, and loans, not denominated in, or indexed to, their functional currencies. Balance Sheet Classification The following table shows the amount and classification (as noted above) of the Company’s derivatives at June 30, 2022, December 31, 2021 and June 30, 2021: Fair Value of Fair Value of Hedge Assets Hedge Liabilities June 30, December 31, June 30, June 30, December 31, June 30, 2022 2021 2021 2022 2021 2021 Derivatives designated as hedging instruments: Commodity forward contracts and collars (a) $ 2 $ — $ — $ 6 $ — $ — Interest rate swaps - fair value hedges (b) 4 11 28 2 1 Cash flow hedges of foreign exchange risk (c) 2 6 1 23 75 Fair value hedges of foreign exchange risk (d) 17 9 2 Net investment hedges (e) 16 3 2 17 40 Total derivatives accounted for as hedges $ 35 $ 18 $ 19 $ 37 $ 42 $ 116 Derivatives not designated as hedges: Foreign exchange derivative contracts (f) 2 1 1 2 2 Total derivatives $ 37 $ 19 $ 20 $ 37 $ 44 $ 118 Current $ 14 $ 14 $ 13 $ 12 $ 2 $ 3 Noncurrent 23 5 7 25 42 115 Total derivatives $ 37 $ 19 $ 20 $ 37 $ 44 $ 118 (a) The notional amount of the commodity forward contracts and collars was approximately 44 million British Thermal Units (“BTUs”) at June 30, 2022. The maximum maturity dates were in 2027 at June 30, 2022. (b) The notional amounts of the interest rate swaps designated as fair value hedges were €725 million at June 30, 2022, December 31, 2021 and June 30, 2021. The maximum maturity dates were in 2024 at June 30, 2022, December 31, 2021 and June 30, 2021. (c) The notional amounts of the cash flow hedges of foreign exchange risk were 514 million Mexican pesos at June 30, 2022, $422 million at December 31, 2021 and $878 million at June 30, 2021. The maximum maturity dates were in 2022 at June 30, 2022 and in 2023 at December 31, 2021 and June 30, 2021. (d) The notional amounts of the fair value hedges of foreign exchange risk were $850 million at June 30, 2022 and $400 million at December 31, 2021. The maximum maturity dates were in 2030 at June 30, 2022 and December 31, 2021. (e) The notional amounts of the net investment hedges were €324 million at June 30, 2022 and €311 million at December 31, 2021 and June 30, 2021. The maximum maturity dates were in 2026 for June 30, 2022, 2027 for December 31, 2021 and 2027 for June 30, 2021. (f) The notional amounts of the foreign exchange derivative contracts were $334 million, $202 million and $305 million at June 30, 2022, December 31, 2021 and June 30, 2021, respectively. The maximum maturity dates were in 2023 for June 30, 2022 and in 2022 for December 31, 2021 and June 30, 2021. Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1) Three months ended June 30, Three months ended June 30, Derivatives designated as hedging instruments: 2022 2021 2022 2021 Cash Flow Hedges Commodity forward contracts and collars(a) $ (3) $ — $ 2 $ — Cash flow hedges of foreign exchange risk (b) (16) (16) Net Investment Hedges Net Investment Hedges (c) 27 2 $ 24 $ (16) $ 4 $ (16) Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1) Six months ended June 30, Six months ended June 30, Derivatives designated as hedging instruments: 2022 2021 2022 2021 Cash Flow Hedges Commodity forward contracts and collars (a) $ (3) $ — $ 2 $ — Cash flow hedges of foreign exchange risk (b) 13 32 14 33 Net Investment Hedges Net Investment Hedges (c) 32 15 3 1 $ 42 $ 47 $ 19 $ 34 Amount of Gain (Loss) Recognized in Other income (expense), net Amount of Gain (Loss) Recognized in Other income (expense), net Three months ended June 30, Six months ended June 30, Derivatives not designated as hedges: 2022 2021 2022 2021 Foreign exchange derivative contracts $ (19) $ (3) $ (16) $ 5 (1) Gains and losses reclassified from Accumulated OCI and recognized in income are recorded to (a) cost of goods sold, (b) other income (expense), net or (c) interest expense, net. |
Restructuring Accruals
Restructuring Accruals | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring Accruals | |
Restructuring Accruals | 6 . Restructuring Accruals Selected information related to the restructuring accruals for the three months ended June 30, 2022 and 2021 is as follows: Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at April 1, 2022 $ 17 $ $ 10 $ 27 Charges 3 1 7 11 Write-down of assets to net realizable value (1) (1) Net cash paid, principally severance and related benefits (2) (2) (4) Other, including foreign exchange translation (1) (1) Balance at June 30, 2022 $ 17 $ — $ 15 $ 32 Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at April 1, 2021 $ 35 $ — $ 8 $ 43 Charges 2 6 8 Net cash paid, principally severance and related benefits (5) (2) (7) Balance at June 30, 2021 $ 32 $ — $ 12 $ 44 Selected information related to the restructuring accruals for the six months ended June 30, 2022 and 2021 is as follows: Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at January 1, 2022 $ 20 $ — $ 11 $ 31 Charges 3 1 7 11 Write-down of assets to net realizable value (1) (1) Net cash paid, principally severance and related benefits (5) (3) (8) Other, including foreign exchange translation (1) (1) Balance at June 30, 2022 $ 17 $ — $ 15 $ 32 Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at January 1, 2021 $ 38 $ $ 7 $ 45 Charges 2 6 8 Net cash paid, principally severance and related benefits (8) (2) (10) Other, including foreign exchange translation 1 1 Balance at June 30, 2021 $ 32 $ — $ 12 $ 44 When a decision is made to take restructuring actions, the Company manages and accounts for them programmatically apart from the ongoing operations of the business. Information related to major programs is presented separately, while minor initiatives are presented on a combined basis. As of June 30, 2022 and 2021, no major restructuring programs were in effect. For the three and six months ended June 30, 2022, the Company implemented several discrete restructuring initiatives and recorded restructuring and other charges of $11 million. These charges consisted of employee costs, such as severance and benefit-related costs and other exit costs (including related consulting costs attributed to restructuring of managed services activities) at a number of the Company’s locations in the Americas and Europe. These restructuring charges were discrete actions and are expected to approximate the total cumulative costs for those actions as no significant additional costs are expected to be incurred. For the three and six months ended June 30, 2022, these charges were recorded to Other income (expense), net on the Condensed Consolidated Results of Operations. The Company expects that the majority of the remaining cash expenditures related to the accrued employee and other exit costs will be paid out over the next several years. For the three and six months ended June 30, 2021, the Company implemented several discrete restructuring initiatives and recorded restructuring and other charges of $8 million. These charges consisted of employee costs, such as severance and benefit-related costs and other exit costs (including related consulting costs attributed to restructuring of managed services activities) at a number of the Company’s locations in the Americas and Europe. These restructuring charges were discrete actions and are expected to approximate the total cumulative costs for those actions as no significant additional costs are expected to be incurred. For the three and six months ended June 30, 2021, these charges were recorded to Other income (expense), net on the Condensed Consolidated Results of Operations. The Company expects that the majority of the remaining cash expenditures related to the accrued employee and other exit costs will be paid out over the next several years. The Company’s decisions to curtail selected production capacity have resulted in write-downs of certain long-lived assets to the extent their carrying value exceeded fair value or fair value less cost to sell. The Company classified the assumptions used to determine the fair value of the impaired assets in the period that the measurement was taken as Level 3 (third-party appraisal) in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. For the asset impairments recorded through June 30, 2022, the remaining carrying value of the impaired assets was approximately $0 . |
Pension Benefit Plans
Pension Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Pension Benefit Plans. | |
Pension Benefit Plans | 7. Pension Benefit Plans The components of the net periodic pension cost for the three months ended June 30, 2022 and 2021 are as follows: U.S. Non-U.S. Three months ended June 30, Three months ended June 30, 2022 2021 2022 2021 Service cost $ 3 $ 3 $ 2 $ 3 Interest cost 8 10 6 5 Expected asset return (15) (21) (8) (11) Amortization of actuarial loss 10 16 2 3 Net periodic pension cost $ 6 $ 8 $ 2 $ — The components of the net periodic pension cost for the six months ended June 30, 2022 and 2021 are as follows: U.S. Non-U.S. Six months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Service cost $ 6 $ 6 $ 5 $ 6 Interest cost 17 20 11 10 Expected asset return (30) (42) (17) (23) Amortization of actuarial loss 20 32 4 7 Net periodic pension cost $ 13 $ 16 $ 3 $ — The components of pension expense, other than the service cost component, are included in Other income (expense), net on the Condensed Consolidated Results of Operations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes. | |
Income Taxes | 8. Income Taxes The Company calculates its interim tax provision using the estimated annual effective tax rate (“EAETR”) methodology in accordance with ASC 740-270. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income or loss in each tax jurisdiction in which the Company operates. The tax effects of discrete items are recognized in the tax provision in the quarter they occur, in accordance with U.S. GAAP. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. The Company’s annual effective tax rate may be affected by the mix of earnings in the U.S. and foreign jurisdictions, and factors such as changes in tax laws, tax rates or regulations, changes in business, changing interpretation of existing tax laws or regulations, the finalization of tax audits and reviews, as well as other factors. As such, there can be significant volatility in interim tax provisions. The annual effective tax rate differs from the statutory U.S. Federal tax rate of 21% primarily because of varying non-U.S. tax rates and the impact of the U.S. valuation allowance. The Company is currently under income tax examination in various tax jurisdictions in which it operates, including Brazil, Canada, Colombia, France, Indonesia, Mexico and Peru. The years under examination range from 2004 through 2021. The Company has received tax assessments in excess of established reserves. The Company is contesting these tax assessments, and will continue to do so, including pursuing all available remedies, such as appeals and litigation, if necessary. The Company believes that adequate provisions for all income tax uncertainties have been made. However, if tax assessments are settled against the Company at amounts in excess of established reserves, it could have a material impact on the Company’s consolidated results of operations, financial position or cash flows |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt | |
Debt | 9. Debt The following table summarizes the long-term debt of the Company at June 30, 2022, December 31, 2021, and June 30, 2021: June 30, December 31, June 30, 2022 2021 2021 Secured Credit Agreement: Revolving Credit Facility: Revolving Loans $ — $ — $ — Term Loans: Term Loan A 946 Previous Secured Credit Agreement: Revolving Credit Facility: Revolving Loans 83 Term Loans: Term Loan A 923 1,068 Other secured debt Senior Notes: 4.00%, due 2023 308 5.875%, due 2023 547 695 693 3.125%, due 2024 (€725 million) 734 826 878 6.375%, due 2025 297 297 297 5.375%, due 2025 299 298 298 2.875%, due 2025 (€500 million) 519 561 589 6.625%, due 2027 606 693 692 4.750%, due 2030 395 395 Finance leases 105 98 105 Other 4 5 6 Total long-term debt 4,452 4,791 5,017 Less amounts due within one year 25 38 40 Long-term debt $ 4,427 $ 4,753 $ 4,977 The Company presents debt issuance costs in the Condensed Consolidated Balance Sheet as a deduction of the carrying amount of the related debt liability. On March 25, 2022, certain of the Company’s subsidiaries entered into a Credit Agreement and Syndicated Facility Agreement (the “Agreement”), which refinances in full the previous credit agreement (the “Previous Agreement”). The Agreement provides for up to billion of borrowings pursuant to term loans, revolving credit facilities and a delayed draw term loan facility. (see Note 10 for more information). Subsequent to quarter end, on July 18, 2022, the Company drew down the The term loans mature, and the revolving credit facilities terminate, in March 2027. The delayed draw term loan matures in December 2023. The Company recorded approximately At June 30, 2022, the Agreement includes a $300 million revolving credit facility, a $950 million multicurrency revolving credit facility and $950 million in term loan A facilities ($946 million outstanding balance at June 30, 2022, net of debt issuance costs ). At June 30, 2022, the Company had unused credit of . The Agreement contains various covenants that restrict, among other things and subject to certain exceptions, the ability of the Company to incur certain indebtedness and liens, make certain investments, become liable under contingent obligations in certain defined instances only, make restricted payments, make certain asset sales within guidelines and limits, engage in certain affiliate transactions, participate in sale and leaseback financing arrangements, alter its fundamental business, and amend certain subordinated debt obligations. The Agreement also contains one financial maintenance covenant, a Secured Leverage Ratio (as defined in the Agreement), that requires the Company not to exceed a ratio of 2.50 x calculated by dividing consolidated Net Indebtedness that is then secured by Liens on property or assets of the Company and certain of its subsidiaries by Consolidated EBITDA, as each term is defined and as described in the Credit Agreement. The Secured Leverage Ratio could restrict the ability of the Company to undertake additional financing or acquisitions to the extent that such financing or acquisitions would cause the Secured Leverage Ratio to exceed the specified maximum. Failure to comply with these covenants and restrictions could result in an event of default under the Agreement. In such an event, the Company could not request additional borrowings under the revolving facilities, and all amounts outstanding under the Agreement, together with accrued interest, could then be declared immediately due and payable. Upon the occurrence and for the duration of a payment event of default, an additional default interest rate equal to per annum will apply to all overdue obligations under the Agreement. If an event of default occurs under the Agreement and the lenders cause all of the outstanding debt obligations under the Agreement to become due and payable, this would result in a default under the indentures governing the Company’s outstanding debt securities and could lead to an acceleration of obligations related to these debt securities. As of June 30, 2022, the Company was in compliance with all covenants and restrictions in the Agreement. In addition, the Company believes that it will remain in compliance and that its ability to borrow additional funds under the Agreement will not be adversely affected by the covenants and restrictions. The Total Leverage Ratio (as defined in the Agreement) determines pricing under the Agreement. The interest rate on borrowings under the Agreement is, at the Company’s option, the Base Rate, Term SOFR or, for non-U.S. dollar borrowings only, the Eurocurrency Rate (each as defined in the Agreement), plus an applicable margin. The applicable margin is linked to the Total Leverage Ratio. The margins range from for Base Rate loans. In addition, a commitment fee is payable on the unused revolving credit facility commitments ranging from Obligations under the Agreement are secured by substantially all of the assets, excluding real estate and certain other excluded assets, of certain of the Company’s domestic subsidiaries and certain foreign subsidiaries. Such obligations are also secured by a pledge of intercompany debt and equity investments in certain of the Company’s domestic subsidiaries and, in the case of foreign obligations, of stock of certain foreign subsidiaries. All obligations under the Agreement are guaranteed by certain domestic subsidiaries of the Company, and certain foreign obligations under the Agreement are guaranteed by certain foreign subsidiaries of the Company. On February 10, 2022, the Company announced the commencement, by an indirect wholly owned subsidiary of the Company, of a tender offer to purchase for cash up to $250.0 million aggregate purchase price of its outstanding (i) 5.875% Senior Notes due 2023, (ii) 5.375% Senior Notes due 2025, (iii) 6.375% Senior Notes due 2025 and (iv) 6.625% Senior Notes due 2027. On February 28, 2022, the Company repurchased $150.0 million aggregate principal amount of the outstanding 5.875% Senior Notes due 2023 and $88.2 million aggregate principal amount of the outstanding 6.625% Senior Notes due 2027. Following the repurchase, $550.0 million and $611.8 million aggregate principal amounts of the 5.875% Senior Notes due 2023 and 6.625% Senior Notes due 2027, respectively, remained outstanding. The repurchases were funded with cash on hand. The Company recorded approximately $16 million of additional interest charges for note repurchase premiums and the write-off of unamortized finance fees related to the senior note repurchases conducted in the first quarter of 2022. In November 2021, the Company issued $400 million aggregate principal amount of senior notes. The senior notes bear interest at a rate of 4.75% per annum and mature on February 15, 2030. The senior notes were issued via a private placement and are guaranteed by certain of the Company’s domestic subsidiaries. The net proceeds, after deducting debt issuance costs, totaled approximately $395 million and, together with cash on hand, were used to redeem the $310 million aggregate principal amount of the Company’s outstanding 4.00% Senior Notes due 2023 and approximately $128 million of term loan A borrowings under the Previous Agreement. The Company recorded approximately $13 million of additional interest charges for note repurchase premiums and write-off of unamortized finance fees related to these redemptions. In order to maintain a capital structure containing appropriate amounts of fixed and floating-rate debt, the Company has entered into a series of interest rate swap agreements. These interest rate swap agreements were accounted for as fair value hedges (see Note 5 for more information). The Company assesses its capital raising and refinancing needs on an ongoing basis and may enter into additional credit facilities and seek to issue equity and/or debt securities in the domestic and international capital markets if market conditions are favorable. Also, depending on market conditions, the Company may elect to repurchase portions of its debt securities in the open market. The carrying amounts reported for certain long-term debt obligations subject to frequently redetermined interest rates approximate fair value. Fair values for the Company’s significant fixed rate debt obligations are based on published market quotations, and are classified as Level 1 in the fair value hierarchy. Principal Indicated Market Amount Price Fair Value Senior Notes: 5.875%, due 2023 $ 550 $ 99.12 $ 545 3.125%, due 2024 (€725 million) 758 94.66 718 6.375%, due 2025 300 95.50 287 5.375%, due 2025 300 94.57 284 2.875%, due 2025 (€500 million) 523 90.97 476 6.625%, due 2027 612 93.65 573 4.750% due 2030 400 84.86 339 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Contingencies | |
Contingencies | 10. Contingencies Asbestos From 1948 to 1958, one of the Company’s former business units commercially produced and sold approximately $40 million of a high-temperature, calcium-silicate based pipe and block insulation material containing asbestos. The Company sold its insulation business unit in April 1958. The Company historically received claims from individuals alleging bodily injury and death as a result of exposure to asbestos from this product (“Asbestos Claims”). Some Asbestos Claims were brought as personal injury lawsuits that typically allege various theories of liability, including negligence, gross negligence and strict liability and seek compensatory and, in some cases, punitive damages. Predominantly, however, Asbestos Claims were historically presented to the Company under administrative claims-handling agreements, which the Company had in place with many plaintiffs’ counsel throughout the country (“Administrative Claims”). Administrative Claims required evaluation and negotiation regarding whether particular claimants qualify under the criteria established by the related claims-handling agreements. The criteria for Administrative Claims included verification of a compensable illness and a reasonable probability of exposure to a product manufactured by the Company’s former business unit during its manufacturing period ending in 1958. Plaintiffs’ counsel presented, and the Company negotiated, Administrative Claims under these various agreements in differing quantities, at different times, and under a variety of conditions. On December 26 and 27, 2019, the Company implemented the Corporate Modernization, whereby O-I Glass became the new parent entity with Owens-Illinois Group, Inc. (“O-I Group”) and Paddock as direct, wholly owned subsidiaries, with Paddock as the successor-by-merger to O-I (the “Corporate Modernization”). The Company’s legacy asbestos-related liabilities remained within Paddock, with the Company’s glass-making operations remaining under O-I Group. As part of the Corporate Modernization transactions, O-I Glass entered into a support agreement with Paddock that required O-I Glass to provide funding to Paddock for all permitted uses, subject to the terms of the support agreement. The key objectives of the Paddock support agreement were to ensure that Paddock retained the ability to fund the costs and expenses of managing the Chapter 11 process, and ultimately settle Asbestos Claims through the establishment of a trust as described below and fund certain other liabilities. On January 6, 2020 (the “Petition Date”), Paddock voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) to equitably and finally resolve all of its current and future Asbestos Claims. O-I Glass and O-I Group were not included in the Chapter 11 filing. During the course of the Chapter 11 proceeding, Paddock operated in the ordinary course and with court protection from Asbestos Claims by operation of the automatic stay in Paddock’s Chapter 11 filing, which stayed ongoing litigation and submission of claims against Paddock outside the Bankruptcy Court between the Petition Date and the Effective Date (as defined below). Upon the Effective Date, Asbestos Claims were channeled to the Paddock Trust as more fully described herein. The bankruptcy process provided a centralized forum to fully resolve presently pending and anticipated future lawsuits and claims associated with asbestos. Paddock’s goals in its Chapter 11 case were to (i) confirm and achieve the effective date (the “Effective Date”) of a plan of reorganization under section 524(g) of the Bankruptcy Code, hereby utilizing this specialized provision to establish the Paddock Trust, to address all current and future Asbestos Claims, and (ii) obtain permanent injunctive relief, protecting the Company, each of its current and former affiliates and certain other related parties (the “Company Protected Parties”) from any Asbestos Claims based on products manufactured, sold, used, and/or distributed by Owens-Illinois, Inc in exchange for funding of the Paddock Trust. Following the Petition Date, the activities of Paddock became subject to review and oversight by the Bankruptcy Court until the Effective Date. As a result, during that period, the Company no longer had exclusive control over Paddock’s activities. Therefore, Paddock was deconsolidated as of the Petition Date, and its assets and liabilities, which primarily included On February 23, 2021, Paddock and O-I Glass commenced a court-approved non-binding mediation process regarding the terms of a potential consensual plan of reorganization pursuant to section 524(g) of the Bankruptcy Code with the Official Committee of Asbestos Personal Injury Claimants (the “ACC” or “Asbestos Claimants Committee”) appointed in the Paddock Chapter 11 case as the representative of current Paddock asbestos claimants, and the Legal Representative of Future Asbestos Claimants (the “FCR” or “Future Claimants’ Representative”) appointed in the Paddock Chapter 11 case as the representative of future Paddock asbestos claimants. On April 26, 2021, the Company announced that Paddock, the ACC and the FCR reached an agreement in principle, supported by O-I Glass, by accepting a proposal from the mediators setting forth total consideration to fund a trust created under section 524(g) of the Bankruptcy Code upon the Effective Date. This agreement in principle, which was subject to definitive documentation and satisfaction of certain conditions, was implemented through the Plan (as defined below) and resolved as of the Effective Date, among other things, the potential liability of Paddock and the Company Protected Parties for pending and future personal injury claims related to exposure to asbestos-containing products that were allegedly manufactured, distributed, used and/or sold by Owens-Illinois, Inc. Under the Plan, which implements the agreement in principle, the Paddock Trust was created pursuant to the provisions of section 524(g) of the Bankruptcy Code and was funded with $610 million in total consideration (“Settlement Consideration”). In exchange for the Settlement Consideration, each of the Company Protected Parties received the benefit of a release from Paddock, and Paddock and the Company Protected Parties received the benefit of an injunction under section 524(g) of the Bankruptcy Code channeling Asbestos Claims to the Paddock Trust and permanently enjoining the assertion of Asbestos Claims against Paddock and the Company Protected Parties. In addition, the Paddock Trust, Paddock and O-I Glass (on behalf of itself and the Company Protected Parties) entered into an agreement through which the Paddock Trust agreed to indemnify the Company Protected Parties against any attempts to evade the channeling injunction or to otherwise bring Asbestos Claims against any Company Protected Party after the Effective Date. The agreement in principle was subject to, among other things, finalization of certain documentation necessary to implement the Plan, acceptance of the Plan by at least 75% of Paddock’s current asbestos claimants voting on such Plan, and confirmation of the Plan by the Bankruptcy Court and approval of the injunction in favor of Paddock and the Company Protected Parties by the United States District Court for the District of Delaware (“District Court”). Subsequent to quarter end, on the Effective Date of July 8, 2022, each of the foregoing conditions has been satisfied or waived, the Plan became effective, and Asbestos Claims against Paddock and the Company Protected Parties became permanently enjoined. On July 18, 2022, the Settlement Consideration was provided, and on July 20, 2022, the Trust Note (as defined below) was redeemed. In connection with the agreement in principle, the Company recorded a charge of $154 million related to its potential liability under the Paddock support agreement as a recognizable subsequent event in the Company’s consolidated results of operations for the quarter ended March 31, 2021, primarily related to an increase to Paddock’s asbestos reserve estimate in consideration for the channeling injunction to be included in the Plan protecting Company Protected Parties from Asbestos Claims, as well as certain other adjustments to Paddock’s assets and liabilities, including estimated professional fees and expenses to be incurred in confirming and implementing the Plan. This charge was recorded to Other income (expense), net on the Consolidated Results of Operations. On January 12, 2022, Paddock, O-I Glass, the Future Claimants’ Representative and the Asbestos Claimants’ Committee (collectively, the “Plan Proponents”) jointly filed the Plan of Reorganization for Paddock Enterprises, LLC Under Chapter 11 of the Bankruptcy Code, dated January 12, 2022 (including any supplements and exhibits thereto, either in its present form or as the same may be amended, modified or supplemented from time to time in accordance with the terms thereof, the “Plan”). Amended versions of the Plan were subsequently filed on February 14, 2022, April 1, 2022, and May 24, 2022. The Plan incorporates the agreement in principle described herein and thereby provides for a resolution of Asbestos Claims, a resolution of (and a release in favor of the Company and its affiliates for) all claims arising out of the Corporate Modernization and provides that upon the Effective Date, all obligations owed under the support agreement would terminate. Consistent with the Plan, the support agreement was deemed rejected as of the Effective Date, and all obligations between the parties to the support agreement were terminated. In connection with the Plan, the Plan Proponents also filed the Disclosure Statement for Plan of Reorganization for Paddock Enterprises, LLC Under Chapter 11 of the Bankruptcy Code, dated January 12, 2022 (including any supplements and exhibits thereto, either in its present form or as the same may be amended, modified or supplemented from time to time in accordance with the terms thereof, the “Disclosure Statement”). The Disclosure Statement was subsequently amended on February 14, 2022. The Bankruptcy Court held a hearing to consider approval of the Disclosure Statement on February 16, 2022. On February 17, 2022, the Bankruptcy Court entered an order approving, among other things, the Disclosure Statement and the procedures for soliciting votes on the Plan. On February 23, 2022, consistent with the Bankruptcy Court’s order, Paddock directed Kroll Restructuring Administration, the claims agent in Paddock’s Chapter 11 case, to distribute solicitation packages to holders of Asbestos Claims eligible to vote to accept or reject the Plan. Holders of Asbestos Claims (or their attorneys) entitled to vote to accept or reject the Plan were required to submit their ballots on or before April 8, 2022 at 4:00 p.m. (Prevailing Eastern Time) in order for their votes to be counted. On April 25, 2022, Paddock reported the results of the votes on the Plan. As detailed in the report filed with the Bankruptcy Court, more than in amount of asbestos claimants who voted on the Plan voted to accept the Plan, and as such, the Plan was accepted by current asbestos claimants in the requisite percentages required by the Bankruptcy Code. The Bankruptcy Court held a hearing to consider confirmation of the Plan on May 16, 2022. On May 26, 2022, the Bankruptcy Court entered an order confirming the Plan and recommending that the District Court affirm such confirmation. On June 22, 2022, the District Court entered an order affirming the confirmation order previously issued by the Bankruptcy Court. On July 8, 2022, the Effective Date of the Plan occurred. Pursuant to the Plan, Paddock issued a promissory note (the “Trust Note”) in the principal amount of million to the Paddock Trust on the Effective Date. On July 18, 2022, the Company funded the Paddock Trust with million from cash. On July 20, 2022, Paddock redeemed the Trust Note by paying Other Matters In the second quarter of 2021, the Company recorded a $69 million gain based on a favorable court ruling in Brazil, which will allow the Company to recover indirect taxes paid in previous years. This gain was recorded to Other income (expense), net on the Condensed Consolidated Results of Operations, as well as $28 million of income tax expense that was recognized as a discrete item in the second quarter of 2021. Other litigation is pending against the Company, in some cases involving ordinary and routine claims incidental to the business of the Company and in others presenting allegations that are non-routine and involve compensatory, punitive or treble damage claims as well as other types of relief. The Company records a liability for such matters when it is both probable that the liability has been incurred and the amount of the liability can be reasonably estimated. Recorded amounts are reviewed and adjusted to reflect changes in the factors upon which the estimates are based, including additional information, negotiations, settlements and other events. |
Share Owners' Equity
Share Owners' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Share Owners' Equity | |
Share Owners' Equity | 11. Share Owners’ Equity The activity in share owners’ equity for the three months ended June 30, 2022 and 2021 is as follows: Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on April 1, 2022 $ 2 $ 3,085 (699) $ 389 $ (1,821) $ 146 $ 1,102 Reissuance of common stock (0.2 million shares) (1) 4 3 Shares repurchased (0.8 million shares) (10) (10) Stock compensation (0.1 million shares) 11 11 Net earnings 252 4 256 Other comprehensive loss (69) (8) (77) Distribution to noncontrolling interests (26) (26) Balance on June 30, 2022 $ 2 $ 3,085 $ (695) $ 641 $ (1,890) $ 116 $ 1,259 Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on April 1, 2021 $ 2 $ 3,131 $ (712) $ 55 $ (2,320) $ 106 $ 262 Issuance of common stock (0.05 million shares) 1 1 Reissuance of common stock (0.1 million shares) (1) 3 2 Shared repurchased (1.0 million shares) (20) (20) Stock compensation (0.3 million shares) 4 4 Net earnings 118 5 123 Other comprehensive income 140 2 142 Distributions to noncontrolling interests (10) (10) Other (2) (2) Balance on June 30, 2021 $ 2 $ 3,113 $ (709) $ 173 $ (2,180) $ 103 $ 502 The activity in share owners’ equity for the six months ended June 30, 2022 and 2021 is as follows: Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on January 1, 2022 $ 2 $ 3,090 $ (701) $ 301 $ (1,972) $ 107 $ 827 Reissuance of common stock (0.4 million shares) (3) 9 6 Shares repurchased (1.5 million shares) (20) (20) Stock compensation (0.5 million shares) 18 18 Net earnings 340 38 378 Other comprehensive income (loss) 82 (3) 79 Distributions to noncontrolling interests (26) (26) Other (3) (3) Balance on June 30, 2022 $ 2 $ 3,085 $ (695) $ 641 $ (1,890) $ 116 $ 1,259 Share Owners’ Equity of the Company Accumulated Capital in Retained Other Non- Total Share Common Excess of Treasury Earnings Comprehensive controlling Owners' Stock Par Value Stock (Loss) Loss Interests Equity Balance on January 1, 2021 $ 2 $ 3,129 $ (714) $ 152 $ (2,272) $ 104 $ 401 Issuance of common stock (0.05 million shares) 1 1 Reissuance of common stock (0.3 million shares) (3) 7 4 Shares repurchased (1.0 million shares) (20) (20) Stock compensation (0.6 million shares) 8 8 Net earnings 21 12 33 Other comprehensive income (loss) 92 (4) 88 Distributions to noncontrolling interests (10) (10) Other (2) (2) 1 (3) Balance on June 30, 2021 $ 2 $ 3,113 $ (709) $ 173 $ (2,180) $ 103 $ 502 During the three months ended June 30, 2022 the Company purchased 770,710 shares of its common stock for approximately $10 million. The share purchases were The Company has 250,000,000 shares of common stock authorized with a par value of $.01 per share. Shares outstanding are as follows: Shares Outstanding (in thousands) June 30, December 31, June 30, 2022 2021 2021 Shares of common stock issued (including treasury shares) 186,936 187,752 189,029 Treasury shares 31,220 31,397 31,745 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | 12. Accumulated Other Comprehensive Loss The activity in accumulated other comprehensive loss for the three months ended June 30, 2022 and 2021 is as follows: Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on April 1, 2022 $ (1,160) $ (18) $ (643) $ (1,821) Change before reclassifications (115) 25 (1) (91) Amounts reclassified from accumulated other comprehensive loss (4) (a) 12 (b) 8 Translation effect (1) 15 14 Other comprehensive income (loss) attributable to the Company (115) 20 26 (69) Balance on June 30, 2022 $ (1,275) $ 2 $ (617) $ (1,890) Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on April 1, 2021 $ (1,310) $ (47) $ (963) $ (2,320) Change before reclassifications 123 (17) (2) 104 Amounts reclassified from accumulated other comprehensive income (loss) 16 (a) 19 (b) 35 Translation effect 1 1 Other comprehensive income (loss) attributable to the Company 123 — 17 140 Balance on June 30, 2021 $ (1,187) $ (47) $ (946) $ (2,180) (a) Amount is recorded to Other income (expense), net and interest expense, net on the Condensed Consolidated Results of Operations (see Note 5 for additional information). (b) Amount is included in the computation of net periodic pension cost (see Note 7 for additional information) and net post-retirement benefit cost. The activity in accumulated other comprehensive loss for the six months ended June 30, 2022 and 2021 is as follows: Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on January 1, 2022 $ (1,290) $ (21) $ (661) $ (1,972) Change before reclassifications 15 43 (1) 57 Amounts reclassified from accumulated other comprehensive income (loss) (19) (a) 24 (b) 5 Translation effect (1) 21 20 Tax effect — Other comprehensive income attributable to the Company 15 23 44 82 Balance on June 30, 2022 $ (1,275) $ 2 $ (617) $ (1,890) Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on January 1, 2021 $ (1,229) $ (60) $ (983) $ (2,272) Change before reclassifications 42 46 (2) 86 Amounts reclassified from accumulated other comprehensive income (loss) (34) (a) 39 (b) 5 Translation effect 1 1 Other comprehensive income (loss) attributable to the Company 42 13 37 92 Balance on June 30, 2021 $ (1,187) $ (47) $ (946) $ (2,180) (a) Amount is recorded to Other income (expense), net and interest expense, net on the Condensed Consolidated Results of Operations (see Note 5 for additional information). (b) Amount is included in the computation of net periodic pension cost (see Note 7 for additional information) and net post-retirement benefit cost. |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jun. 30, 2022 | |
Other Income (Expense), Net | |
Other Income (Expense), Net | 13. Other Income (Expense), Net Other income (expense), net for the three and six months ended June 30, 2022 and 2021 included the following: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Gain on sale of divested business (see Note 17) $ $ $ 55 $ Gain on sale leaseback (see Note 17) 182 182 Restructuring, asset impairment and other charges (12) (9) (12) (9) Brazil indirect tax credit (see Note 10) 69 69 Charge related to Paddock support agreement liability (see Note 10) (154) Intangible amortization expense (8) (9) (16) (17) Foreign currency exchange loss (2) (2) (2) Royalty income 5 6 11 11 Other 3 2 1 Other income (expense), net $ 168 $ 57 $ 220 $ (101) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share | |
Earnings Per Share | 14. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share for the three months ended June 30, 2022 and 2021: Three months ended June 30, 2022 2021 Numerator: Net earnings attributable to the Company $ 252 $ 118 Denominator (in thousands): Denominator for basic earnings per share-weighted average shares outstanding 155,683 157,902 Effect of dilutive securities: Stock options and other 3,268 2,889 Denominator for diluted earnings per share-adjusted weighted average shares outstanding 158,951 160,791 Basic earnings per share: Net earnings attributable to the Company $ 1.62 $ 0.75 Diluted earnings per share: Net earnings attributable to the Company $ 1.59 $ 0.73 The diluted earnings per share computation for the three months ended June 30, 2022 and 2021 excludes 804,953 and 772,521 weighted average shares of common stock, respectively, due to their antidilutive effect, which includes options to purchase, unvested restricted stock units and performance vested restricted share units. Options to purchase shares were excluded because the exercise prices of the options were greater than the average market price of the shares of common stock. The following table sets forth the computation of basic and diluted earnings per share for the six months ended June 30, 2022 and 2021: Six months ended June 30, 2022 2021 Numerator: Net earnings attributable to the Company $ 340 $ 21 Denominator (in thousands): Denominator for basic earnings per share-weighted average shares outstanding 155,765 157,737 Effect of dilutive securities: Stock options and other 3,109 2,722 Denominator for diluted earnings per share-adjusted weighted average shares outstanding 158,874 160,459 Basic earnings per share: Net earnings attributable to the Company $ 2.18 $ 0.13 Diluted earnings per share: Net earnings attributable to the Company $ 2.14 $ 0.13 The diluted earnings per share computation for the six months ended June 30, 2022 and 2021 excludes 1,190,747 and 1,331,298 weighted average shares of common stock, respectively, due to their antidilutive effect, which includes options to purchase, unvested restricted stock units and performance vested restricted share units. Options to purchase shares were excluded because the exercise prices of the options were greater than the average market price of the shares of common stock. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 15. Supplemental Cash Flow Information Income taxes paid in cash were as follows: Six months ended June 30, 2022 2021 U.S. $ 6 $ 4 Non-U.S. 93 38 Total income taxes paid in cash $ 99 $ 42 Interest paid, including note repurchase premiums, in cash for the six months ended June 30, 2022 and 2021 was $112 million and $97 million, respectively. Cash interest for the six months ended June 30, 2022 included $12 million of note repurchase premiums. The Company uses various factoring programs to sell certain receivables to financial institutions as part of managing its cash flows. At June 30, 2022, December 31, 2021 and June 30, 2021, the amount of receivables sold by the Company was These amounts included $158 million, $180 million and $206 million at June 30, 2022, December 31, 2021, and June 30, 2021, respectively, for trade receivable amounts factored under supply chain financing programs linked to commercial arrangements with key customers. million for the same period in 2021. For the six months ended June 30, 2022 and 2021, the Company recorded expenses related to these factoring programs of approximately |
COVID-19 Impacts
COVID-19 Impacts | 6 Months Ended |
Jun. 30, 2022 | |
COVID-19 Impacts | |
COVID-19 Impacts | 16. COVID-19 Impacts On March 11, 2020, the World Health Organization characterized COVID-19 as a global pandemic and recommended containment and mitigation measures. The Company is actively monitoring the impact of the COVID-19 pandemic, which negatively impacted its business in 2020 and, to a lesser extent, in 2021 and the first six months of 2022 and may negatively impact its business and results of operations in the future. The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates particularly as it relates to estimates reliant on forecasts and other assumptions reasonably available to the Company and the uncertain future impacts of the COVID-19 pandemic and related economic disruptions. The extent to which the COVID-19 pandemic and related economic disruptions impact the Company’s business and financial results will depend on future developments including, but not limited to, the continued spread, duration and severity of the COVID-19 pandemic; the occurrence, spread, duration and severity of any subsequent wave or waves of outbreaks after the initial outbreak has subsided; the actions taken by the U.S. and foreign governments to contain the COVID-19 pandemic, address its impact or respond to the reduction in global and local economic activity; the occurrence, duration and severity of a global, regional or national recession, depression or other sustained adverse market event; the impact of the developments described above on its customers and suppliers; and how quickly and to what extent normal economic and operating conditions can resume. The accounting matters assessed included, but were not limited to: ● allowance for doubtful accounts and credit losses; ● carrying value of inventory; and ● the carrying value of goodwill and other long-lived assets. There was not a material impact to the above estimates in the Company’s Condensed Consolidated Financial Statements for the six-month period ended June 30, 2022 or June 30, 2021. The Company’s future assessment of the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material changes to the estimates and material impacts to the Company’s Condensed Consolidated Financial Statements in future reporting periods. |
Divestitures and Sale Leaseback
Divestitures and Sale Leaseback of Land and Building | 6 Months Ended |
Jun. 30, 2022 | |
Divestitures and Sale Leaseback of Land and Building | |
Divestitures and Sale Leaseback of Land and Building | 17. Divestitures and Sale Leaseback of Land and Building In May 2022, the Company completed the sale of the land and building related to its Brampton, Ontario, Canada plant to an affiliate of Crestpoint Real Estate Investments Ltd. (“Crestpoint”). Net proceeds were approximately $190 million and the Company recorded a pretax gain of approximately $182 million (approximately $158 million after tax) on the sale, which is reflected in Other income (expense), net on the Condensed Consolidated Results of Operations. In connection with this transaction, the Company entered into a lease for the land and building with Crestpoint for the Brampton, Ontario plant for an initial term of 10 years. The lease requires the Company to make rent payments of approximately $7.3 million in the first year, gradually increasing to approximately $9.1 million in the tenth year. The lease is classified as operating and was recorded as a right-of-use asset current noncurrent In March 2022, the Company completed the sale of its Cristar TableTop S.A.S. (“Cristar”) business to Vidros Colombia S.A.S, an affiliate of Nadir Figueiredo S.A., a glass tableware producer based in Brazil. Gross proceeds received were approximately $96 million and the related pretax gain recorded was approximately $55 million (approximately $16 million after tax and non-controlling interest) in the first quarter of 2022. The pretax gain was recorded to Other income (expense), net on the Condensed Consolidated Results of Operations. In January 2021, the Company completed the sale of its plant in Argentina. Gross proceeds were approximately $10 million, and the gain on the sale was not material. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events | |
Subsequent Events | 18. Subsequent Events Paddock Support Agreement Liability Subsequent to the second quarter of 2022, on July 8, 2022, the Effective Date of the Plan occurred, the Paddock support agreement was terminated, and the channeling injunction went into effect. Pursuant to the Plan, Paddock issued the Trust Note in the principal amount of $8.5 million to the Paddock Trust on the Effective Date. On July 18, 2022, the Company drew down the million from cash. On July 20, 2022, Paddock redeemed the Trust Note by paying million in cash to the Paddock Trust. Having funded the entire $610 million required by the Plan to the Paddock Trust, on July 20, 2022, the Pledge Agreement made by the Company was terminated, the pledge of the shares of Paddock to the Paddock Trust was released and the Compan y regained exclusive control over Reorganized Paddock’s activities. Therefore, at that date in the third quarter of 2022, Reorganized Paddock was reconsolidated, and its remaining assets and liabilities were recognized in the Company’s consolidated financial statements on a prospective basis. The funding of the Paddock Trust and certain related expenses will result in an estimated operating cash outflow of |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Information | |
Net sales for the Company's reportable segments | Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Net sales: Americas $ 971 $ 890 $ 1,912 $ 1,727 Europe 765 745 1,474 1,384 Reportable segment totals 1,736 1,635 3,386 3,111 Other 42 25 83 50 Net sales $ 1,778 $ 1,660 $ 3,469 $ 3,161 |
Segment operating profit (loss) for the Company's reportable segments | Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Earnings before income taxes $ 328 $ 198 $ 498 $ 133 Items excluded from segment operating profit: Retained corporate costs and other 53 42 103 77 Gain on sale of divested business (55) Gain on sale leaseback (182) (182) Restructuring, asset impairment and other charges 12 9 12 9 Brazil indirect tax credit (69) (69) Charge related to Paddock support agreement liability 154 Interest expense, net 46 52 112 103 Segment operating profit $ 257 $ 232 $ 488 $ 407 Americas $ 130 $ 124 $ 258 $ 224 Europe 127 108 230 183 Reportable segment totals $ 257 $ 232 $ 488 $ 407 |
Total assets for the Company's reportable segments | June 30, December 31, June 30, 2022 2021 2021 Total assets: Americas $ 5,028 $ 4,853 $ 4,972 Europe 3,325 3,513 3,502 Reportable segment totals 8,353 8,366 8,474 Other 520 466 400 Consolidated totals $ 8,873 $ 8,832 $ 8,874 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue | |
Schedule of disaggregation of revenue by customer end use | The following tables for the three months ended June 30, 2022 and 2021 disaggregate the Company’s revenue by customer end use: Three months ended June 30, 2022 Americas Europe Total Alcoholic beverages (beer, wine, spirits) $ 613 $ 576 $ 1,189 Food and other 199 122 321 Non-alcoholic beverages 159 67 226 Reportable segment totals $ 971 $ 765 $ 1,736 Other 42 Net sales $ 1,778 Three months ended June 30, 2021 Americas Europe Total Alcoholic beverages (beer, wine, spirits) $ 546 $ 564 $ 1,110 Food and other 204 123 327 Non-alcoholic beverages 140 58 198 Reportable segment totals $ 890 $ 745 $ 1,635 Other 25 Net sales $ 1,660 The following tables for the six months ended June 30, 2022 and 2021 disaggregate the Company’s revenue by customer end use: Six months ended June 30, 2022 Americas Europe Total Alcoholic beverages (beer, wine, spirits) $ 1,189 $ 1,113 $ 2,302 Food and other 413 232 645 Non-alcoholic beverages 310 129 439 Reportable segment totals $ 1,912 $ 1,474 $ 3,386 Other 83 Net sales $ 3,469 Six months ended June 30, 2021 Americas Europe Total Alcoholic beverages (beer, wine, spirits) $ 1,049 $ 1,040 $ 2,089 Food and other 413 242 655 Non-alcoholic beverages 265 102 367 Reportable segment totals $ 1,727 $ 1,384 $ 3,111 Other 50 Net sales $ 3,161 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventories | |
Major classes of inventory | June 30, December 31, June 30, 2022 2021 2021 Finished goods $ 618 $ 659 $ 636 Raw materials 115 119 122 Operating supplies 42 38 38 $ 775 $ 816 $ 796 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments | |
Balance Sheet Classification of derivative instruments | Fair Value of Fair Value of Hedge Assets Hedge Liabilities June 30, December 31, June 30, June 30, December 31, June 30, 2022 2021 2021 2022 2021 2021 Derivatives designated as hedging instruments: Commodity forward contracts and collars (a) $ 2 $ — $ — $ 6 $ — $ — Interest rate swaps - fair value hedges (b) 4 11 28 2 1 Cash flow hedges of foreign exchange risk (c) 2 6 1 23 75 Fair value hedges of foreign exchange risk (d) 17 9 2 Net investment hedges (e) 16 3 2 17 40 Total derivatives accounted for as hedges $ 35 $ 18 $ 19 $ 37 $ 42 $ 116 Derivatives not designated as hedges: Foreign exchange derivative contracts (f) 2 1 1 2 2 Total derivatives $ 37 $ 19 $ 20 $ 37 $ 44 $ 118 Current $ 14 $ 14 $ 13 $ 12 $ 2 $ 3 Noncurrent 23 5 7 25 42 115 Total derivatives $ 37 $ 19 $ 20 $ 37 $ 44 $ 118 (a) The notional amount of the commodity forward contracts and collars was approximately 44 million British Thermal Units (“BTUs”) at June 30, 2022. The maximum maturity dates were in 2027 at June 30, 2022. (b) The notional amounts of the interest rate swaps designated as fair value hedges were €725 million at June 30, 2022, December 31, 2021 and June 30, 2021. The maximum maturity dates were in 2024 at June 30, 2022, December 31, 2021 and June 30, 2021. (c) The notional amounts of the cash flow hedges of foreign exchange risk were 514 million Mexican pesos at June 30, 2022, $422 million at December 31, 2021 and $878 million at June 30, 2021. The maximum maturity dates were in 2022 at June 30, 2022 and in 2023 at December 31, 2021 and June 30, 2021. (d) The notional amounts of the fair value hedges of foreign exchange risk were $850 million at June 30, 2022 and $400 million at December 31, 2021. The maximum maturity dates were in 2030 at June 30, 2022 and December 31, 2021. (e) The notional amounts of the net investment hedges were €324 million at June 30, 2022 and €311 million at December 31, 2021 and June 30, 2021. The maximum maturity dates were in 2026 for June 30, 2022, 2027 for December 31, 2021 and 2027 for June 30, 2021. (f) The notional amounts of the foreign exchange derivative contracts were $334 million, $202 million and $305 million at June 30, 2022, December 31, 2021 and June 30, 2021, respectively. The maximum maturity dates were in 2023 for June 30, 2022 and in 2022 for December 31, 2021 and June 30, 2021. |
Effects of derivative instruments on the results of operations | Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1) Three months ended June 30, Three months ended June 30, Derivatives designated as hedging instruments: 2022 2021 2022 2021 Cash Flow Hedges Commodity forward contracts and collars(a) $ (3) $ — $ 2 $ — Cash flow hedges of foreign exchange risk (b) (16) (16) Net Investment Hedges Net Investment Hedges (c) 27 2 $ 24 $ (16) $ 4 $ (16) Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1) Six months ended June 30, Six months ended June 30, Derivatives designated as hedging instruments: 2022 2021 2022 2021 Cash Flow Hedges Commodity forward contracts and collars (a) $ (3) $ — $ 2 $ — Cash flow hedges of foreign exchange risk (b) 13 32 14 33 Net Investment Hedges Net Investment Hedges (c) 32 15 3 1 $ 42 $ 47 $ 19 $ 34 Amount of Gain (Loss) Recognized in Other income (expense), net Amount of Gain (Loss) Recognized in Other income (expense), net Three months ended June 30, Six months ended June 30, Derivatives not designated as hedges: 2022 2021 2022 2021 Foreign exchange derivative contracts $ (19) $ (3) $ (16) $ 5 (1) Gains and losses reclassified from Accumulated OCI and recognized in income are recorded to (a) cost of goods sold, (b) other income (expense), net or (c) interest expense, net. |
Restructuring Accruals (Tables)
Restructuring Accruals (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring Accruals | |
Selected information related to the restructuring accruals | Selected information related to the restructuring accruals for the three months ended June 30, 2022 and 2021 is as follows: Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at April 1, 2022 $ 17 $ $ 10 $ 27 Charges 3 1 7 11 Write-down of assets to net realizable value (1) (1) Net cash paid, principally severance and related benefits (2) (2) (4) Other, including foreign exchange translation (1) (1) Balance at June 30, 2022 $ 17 $ — $ 15 $ 32 Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at April 1, 2021 $ 35 $ — $ 8 $ 43 Charges 2 6 8 Net cash paid, principally severance and related benefits (5) (2) (7) Balance at June 30, 2021 $ 32 $ — $ 12 $ 44 Selected information related to the restructuring accruals for the six months ended June 30, 2022 and 2021 is as follows: Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at January 1, 2022 $ 20 $ — $ 11 $ 31 Charges 3 1 7 11 Write-down of assets to net realizable value (1) (1) Net cash paid, principally severance and related benefits (5) (3) (8) Other, including foreign exchange translation (1) (1) Balance at June 30, 2022 $ 17 $ — $ 15 $ 32 Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at January 1, 2021 $ 38 $ $ 7 $ 45 Charges 2 6 8 Net cash paid, principally severance and related benefits (8) (2) (10) Other, including foreign exchange translation 1 1 Balance at June 30, 2021 $ 32 $ — $ 12 $ 44 |
Pension Benefit Plans (Tables)
Pension Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Pension Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Components of net periodic pension cost | The components of the net periodic pension cost for the three months ended June 30, 2022 and 2021 are as follows: U.S. Non-U.S. Three months ended June 30, Three months ended June 30, 2022 2021 2022 2021 Service cost $ 3 $ 3 $ 2 $ 3 Interest cost 8 10 6 5 Expected asset return (15) (21) (8) (11) Amortization of actuarial loss 10 16 2 3 Net periodic pension cost $ 6 $ 8 $ 2 $ — The components of the net periodic pension cost for the six months ended June 30, 2022 and 2021 are as follows: U.S. Non-U.S. Six months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Service cost $ 6 $ 6 $ 5 $ 6 Interest cost 17 20 11 10 Expected asset return (30) (42) (17) (23) Amortization of actuarial loss 20 32 4 7 Net periodic pension cost $ 13 $ 16 $ 3 $ — |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt | |
Long-term Debt | June 30, December 31, June 30, 2022 2021 2021 Secured Credit Agreement: Revolving Credit Facility: Revolving Loans $ — $ — $ — Term Loans: Term Loan A 946 Previous Secured Credit Agreement: Revolving Credit Facility: Revolving Loans 83 Term Loans: Term Loan A 923 1,068 Other secured debt Senior Notes: 4.00%, due 2023 308 5.875%, due 2023 547 695 693 3.125%, due 2024 (€725 million) 734 826 878 6.375%, due 2025 297 297 297 5.375%, due 2025 299 298 298 2.875%, due 2025 (€500 million) 519 561 589 6.625%, due 2027 606 693 692 4.750%, due 2030 395 395 Finance leases 105 98 105 Other 4 5 6 Total long-term debt 4,452 4,791 5,017 Less amounts due within one year 25 38 40 Long-term debt $ 4,427 $ 4,753 $ 4,977 |
Fair values of the Company's significant fixed rate debt obligations | Principal Indicated Market Amount Price Fair Value Senior Notes: 5.875%, due 2023 $ 550 $ 99.12 $ 545 3.125%, due 2024 (€725 million) 758 94.66 718 6.375%, due 2025 300 95.50 287 5.375%, due 2025 300 94.57 284 2.875%, due 2025 (€500 million) 523 90.97 476 6.625%, due 2027 612 93.65 573 4.750% due 2030 400 84.86 339 |
Share Owners' Equity (Tables)
Share Owners' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share Owners' Equity | |
Activity in share owner's equity | The activity in share owners’ equity for the three months ended June 30, 2022 and 2021 is as follows: Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on April 1, 2022 $ 2 $ 3,085 (699) $ 389 $ (1,821) $ 146 $ 1,102 Reissuance of common stock (0.2 million shares) (1) 4 3 Shares repurchased (0.8 million shares) (10) (10) Stock compensation (0.1 million shares) 11 11 Net earnings 252 4 256 Other comprehensive loss (69) (8) (77) Distribution to noncontrolling interests (26) (26) Balance on June 30, 2022 $ 2 $ 3,085 $ (695) $ 641 $ (1,890) $ 116 $ 1,259 Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on April 1, 2021 $ 2 $ 3,131 $ (712) $ 55 $ (2,320) $ 106 $ 262 Issuance of common stock (0.05 million shares) 1 1 Reissuance of common stock (0.1 million shares) (1) 3 2 Shared repurchased (1.0 million shares) (20) (20) Stock compensation (0.3 million shares) 4 4 Net earnings 118 5 123 Other comprehensive income 140 2 142 Distributions to noncontrolling interests (10) (10) Other (2) (2) Balance on June 30, 2021 $ 2 $ 3,113 $ (709) $ 173 $ (2,180) $ 103 $ 502 The activity in share owners’ equity for the six months ended June 30, 2022 and 2021 is as follows: Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on January 1, 2022 $ 2 $ 3,090 $ (701) $ 301 $ (1,972) $ 107 $ 827 Reissuance of common stock (0.4 million shares) (3) 9 6 Shares repurchased (1.5 million shares) (20) (20) Stock compensation (0.5 million shares) 18 18 Net earnings 340 38 378 Other comprehensive income (loss) 82 (3) 79 Distributions to noncontrolling interests (26) (26) Other (3) (3) Balance on June 30, 2022 $ 2 $ 3,085 $ (695) $ 641 $ (1,890) $ 116 $ 1,259 Share Owners’ Equity of the Company Accumulated Capital in Retained Other Non- Total Share Common Excess of Treasury Earnings Comprehensive controlling Owners' Stock Par Value Stock (Loss) Loss Interests Equity Balance on January 1, 2021 $ 2 $ 3,129 $ (714) $ 152 $ (2,272) $ 104 $ 401 Issuance of common stock (0.05 million shares) 1 1 Reissuance of common stock (0.3 million shares) (3) 7 4 Shares repurchased (1.0 million shares) (20) (20) Stock compensation (0.6 million shares) 8 8 Net earnings 21 12 33 Other comprehensive income (loss) 92 (4) 88 Distributions to noncontrolling interests (10) (10) Other (2) (2) 1 (3) Balance on June 30, 2021 $ 2 $ 3,113 $ (709) $ 173 $ (2,180) $ 103 $ 502 |
Schedule of shares outstanding | Shares Outstanding (in thousands) June 30, December 31, June 30, 2022 2021 2021 Shares of common stock issued (including treasury shares) 186,936 187,752 189,029 Treasury shares 31,220 31,397 31,745 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Loss. | |
Component of accumulated other comprehensive loss | The activity in accumulated other comprehensive loss for the three months ended June 30, 2022 and 2021 is as follows: Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on April 1, 2022 $ (1,160) $ (18) $ (643) $ (1,821) Change before reclassifications (115) 25 (1) (91) Amounts reclassified from accumulated other comprehensive loss (4) (a) 12 (b) 8 Translation effect (1) 15 14 Other comprehensive income (loss) attributable to the Company (115) 20 26 (69) Balance on June 30, 2022 $ (1,275) $ 2 $ (617) $ (1,890) Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on April 1, 2021 $ (1,310) $ (47) $ (963) $ (2,320) Change before reclassifications 123 (17) (2) 104 Amounts reclassified from accumulated other comprehensive income (loss) 16 (a) 19 (b) 35 Translation effect 1 1 Other comprehensive income (loss) attributable to the Company 123 — 17 140 Balance on June 30, 2021 $ (1,187) $ (47) $ (946) $ (2,180) (a) Amount is recorded to Other income (expense), net and interest expense, net on the Condensed Consolidated Results of Operations (see Note 5 for additional information). (b) Amount is included in the computation of net periodic pension cost (see Note 7 for additional information) and net post-retirement benefit cost. The activity in accumulated other comprehensive loss for the six months ended June 30, 2022 and 2021 is as follows: Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on January 1, 2022 $ (1,290) $ (21) $ (661) $ (1,972) Change before reclassifications 15 43 (1) 57 Amounts reclassified from accumulated other comprehensive income (loss) (19) (a) 24 (b) 5 Translation effect (1) 21 20 Tax effect — Other comprehensive income attributable to the Company 15 23 44 82 Balance on June 30, 2022 $ (1,275) $ 2 $ (617) $ (1,890) Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on January 1, 2021 $ (1,229) $ (60) $ (983) $ (2,272) Change before reclassifications 42 46 (2) 86 Amounts reclassified from accumulated other comprehensive income (loss) (34) (a) 39 (b) 5 Translation effect 1 1 Other comprehensive income (loss) attributable to the Company 42 13 37 92 Balance on June 30, 2021 $ (1,187) $ (47) $ (946) $ (2,180) (a) Amount is recorded to Other income (expense), net and interest expense, net on the Condensed Consolidated Results of Operations (see Note 5 for additional information). (b) Amount is included in the computation of net periodic pension cost (see Note 7 for additional information) and net post-retirement benefit cost. |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income (Expense), Net | |
Schedule of other income (expense), net | Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Gain on sale of divested business (see Note 17) $ $ $ 55 $ Gain on sale leaseback (see Note 17) 182 182 Restructuring, asset impairment and other charges (12) (9) (12) (9) Brazil indirect tax credit (see Note 10) 69 69 Charge related to Paddock support agreement liability (see Note 10) (154) Intangible amortization expense (8) (9) (16) (17) Foreign currency exchange loss (2) (2) (2) Royalty income 5 6 11 11 Other 3 2 1 Other income (expense), net $ 168 $ 57 $ 220 $ (101) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share | |
Computation of basic and diluted earnings per share | Three months ended June 30, 2022 2021 Numerator: Net earnings attributable to the Company $ 252 $ 118 Denominator (in thousands): Denominator for basic earnings per share-weighted average shares outstanding 155,683 157,902 Effect of dilutive securities: Stock options and other 3,268 2,889 Denominator for diluted earnings per share-adjusted weighted average shares outstanding 158,951 160,791 Basic earnings per share: Net earnings attributable to the Company $ 1.62 $ 0.75 Diluted earnings per share: Net earnings attributable to the Company $ 1.59 $ 0.73 Six months ended June 30, 2022 2021 Numerator: Net earnings attributable to the Company $ 340 $ 21 Denominator (in thousands): Denominator for basic earnings per share-weighted average shares outstanding 155,765 157,737 Effect of dilutive securities: Stock options and other 3,109 2,722 Denominator for diluted earnings per share-adjusted weighted average shares outstanding 158,874 160,459 Basic earnings per share: Net earnings attributable to the Company $ 2.18 $ 0.13 Diluted earnings per share: Net earnings attributable to the Company $ 2.14 $ 0.13 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information | |
Income taxes paid (received) in cash | Six months ended June 30, 2022 2021 U.S. $ 6 $ 4 Non-U.S. 93 38 Total income taxes paid in cash $ 99 $ 42 |
Segment Information (Details)
Segment Information (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Information | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
Segment Information - Reportabl
Segment Information - Reportable Segments - Net Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net sales: | ||||
Net sales | $ 1,778 | $ 1,660 | $ 3,469 | $ 3,161 |
Reportable Segment Totals | ||||
Net sales: | ||||
Net sales | 1,736 | 1,635 | 3,386 | 3,111 |
Americas | ||||
Net sales: | ||||
Net sales | 971 | 890 | 1,912 | 1,727 |
Europe | ||||
Net sales: | ||||
Net sales | 765 | 745 | 1,474 | 1,384 |
Other | ||||
Net sales: | ||||
Net sales | $ 42 | $ 25 | $ 83 | $ 50 |
Segment Information - Reporta_2
Segment Information - Reportable Segments - Segment Operating Profits and Reporting Segment Totals (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment operating profit: | |||||
Earnings (loss) before income taxes | $ 328 | $ 198 | $ 498 | $ 133 | |
Items excluded from segment operating profit: | |||||
Retained corporate costs and other | 53 | 42 | 103 | 77 | |
Gain on sale of divested business | (55) | ||||
Gain on sale leaseback | (182) | (182) | |||
Restructuring, asset impairment and other charges | 12 | 9 | 12 | 9 | |
Brazil indirect tax credit | (69) | (69) | |||
Charge related to Paddock support agreement | $ 154 | 154 | |||
Interest expense, net | 46 | 52 | 112 | 103 | |
Segment operating profit | |||||
Segment operating profit | 257 | 232 | 488 | 407 | |
Americas | |||||
Segment operating profit | |||||
Segment operating profit | 130 | 124 | 258 | 224 | |
Europe | |||||
Segment operating profit | |||||
Segment operating profit | $ 127 | $ 108 | $ 230 | $ 183 |
Segment Information - Total Ass
Segment Information - Total Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Assets | |||
Total assets: | $ 8,873 | $ 8,832 | $ 8,874 |
Reportable Segment Totals | |||
Assets | |||
Total assets: | 8,353 | 8,366 | 8,474 |
Americas | |||
Assets | |||
Total assets: | 5,028 | 4,853 | 4,972 |
Europe | |||
Assets | |||
Total assets: | 3,325 | 3,513 | 3,502 |
Other | |||
Assets | |||
Total assets: | $ 520 | $ 466 | $ 400 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue | ||||
Net sales | $ 1,778 | $ 1,660 | $ 3,469 | $ 3,161 |
Reportable Segment Totals | ||||
Disaggregation of Revenue | ||||
Net sales | 1,736 | 1,635 | 3,386 | 3,111 |
Americas | ||||
Disaggregation of Revenue | ||||
Net sales | 971 | 890 | 1,912 | 1,727 |
Europe | ||||
Disaggregation of Revenue | ||||
Net sales | 765 | 745 | 1,474 | 1,384 |
Other | ||||
Disaggregation of Revenue | ||||
Net sales | 42 | 25 | 83 | 50 |
Alcoholic beverages (beer, wine, spirits) | ||||
Disaggregation of Revenue | ||||
Net sales | 1,189 | 1,110 | 2,302 | 2,089 |
Alcoholic beverages (beer, wine, spirits) | Americas | ||||
Disaggregation of Revenue | ||||
Net sales | 613 | 546 | 1,189 | 1,049 |
Alcoholic beverages (beer, wine, spirits) | Europe | ||||
Disaggregation of Revenue | ||||
Net sales | 576 | 564 | 1,113 | 1,040 |
Food and other | ||||
Disaggregation of Revenue | ||||
Net sales | 321 | 327 | 645 | 655 |
Food and other | Americas | ||||
Disaggregation of Revenue | ||||
Net sales | 199 | 204 | 413 | 413 |
Food and other | Europe | ||||
Disaggregation of Revenue | ||||
Net sales | 122 | 123 | 232 | 242 |
Non-alcoholic beverages | ||||
Disaggregation of Revenue | ||||
Net sales | 226 | 198 | 439 | 367 |
Non-alcoholic beverages | Americas | ||||
Disaggregation of Revenue | ||||
Net sales | 159 | 140 | 310 | 265 |
Non-alcoholic beverages | Europe | ||||
Disaggregation of Revenue | ||||
Net sales | $ 67 | $ 58 | $ 129 | $ 102 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Credit Losses | |||
Accounts receivable, net | $ 957 | $ 692 | $ 855 |
Allowance for doubtful accounts | $ 29 | $ 28 | $ 32 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Inventories | |||
Finished goods | $ 618 | $ 659 | $ 636 |
Raw materials | 115 | 119 | 122 |
Operating supplies | 42 | 38 | 38 |
Inventories | $ 775 | $ 816 | $ 796 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives and Hedges (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Commodity forward contracts | Cash Flow Hedges | |||
Derivatives and Hedges | |||
Unrecognized gain (loss) included in Accumulated OCI | $ (1) | ||
Foreign exchange risk | Cash Flow Hedges | |||
Derivatives and Hedges | |||
Unrecognized gain (loss) included in Accumulated OCI | 1 | $ 6 | $ 9 |
Foreign exchange risk | Fair Value Hedges | |||
Derivatives and Hedges | |||
Amount excluded from assessment of effectiveness and included in Accumulated OCI | $ 6 | $ 6 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet Classification (Details) € in Millions, $ / BTU in Millions, $ in Millions, $ in Millions | 6 Months Ended | ||||||
Jun. 30, 2022 USD ($) $ / BTU | Jun. 30, 2022 EUR (€) | Jun. 30, 2022 MXN ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Jun. 30, 2021 USD ($) | Jun. 30, 2021 EUR (€) | |
Derivatives, Fair Value | |||||||
Total asset derivatives | $ 37 | $ 19 | $ 20 | ||||
Total liability derivatives | 37 | 44 | 118 | ||||
Current derivative asset | 14 | 14 | 13 | ||||
Current derivative liability | 12 | 2 | 3 | ||||
Noncurrent derivative asset | 23 | 5 | 7 | ||||
Noncurrent derivative liability | $ 25 | 42 | 115 | ||||
Commodity forward contracts | |||||||
Derivatives, Fair Value | |||||||
British Thermal Units ("BTUs") | $ / BTU | 44 | ||||||
Derivatives designated as hedging instruments | |||||||
Derivatives, Fair Value | |||||||
Total asset derivatives | $ 35 | 18 | 19 | ||||
Total liability derivatives | 37 | 42 | 116 | ||||
Derivatives designated as hedging instruments | Commodity forward contracts and collars | |||||||
Derivatives, Fair Value | |||||||
Total asset derivatives | 2 | ||||||
Total liability derivatives | 6 | ||||||
Derivatives designated as hedging instruments | Foreign exchange risk | |||||||
Derivatives, Fair Value | |||||||
Total asset derivatives | 17 | 9 | |||||
Total liability derivatives | 2 | ||||||
Derivatives designated as hedging instruments | Interest rate swaps - fair value hedges | |||||||
Derivatives, Fair Value | |||||||
Notional amount | € | € 725 | € 725 | € 725 | ||||
Total asset derivatives | 4 | 11 | |||||
Total liability derivatives | 28 | 2 | 1 | ||||
Derivatives designated as hedging instruments | Cash flow hedges of foreign exchange risk | |||||||
Derivatives, Fair Value | |||||||
Notional amount | $ 514 | 422 | 878 | ||||
Total asset derivatives | 2 | 6 | |||||
Total liability derivatives | 1 | 23 | 75 | ||||
Derivatives designated as hedging instruments | Net investment hedges | |||||||
Derivatives, Fair Value | |||||||
Notional amount | € | 324 | 311 | € 311 | ||||
Total asset derivatives | 16 | 3 | 2 | ||||
Total liability derivatives | 17 | 40 | |||||
Derivatives not designated as hedging instruments | Foreign exchange contracts | |||||||
Derivatives, Fair Value | |||||||
Notional amount | 334 | 202 | 305 | ||||
Total asset derivatives | $ 2 | 1 | 1 | ||||
Total liability derivatives | $ 2 | $ 2 | |||||
Fair Value Hedges | Derivatives designated as hedging instruments | Foreign exchange risk | |||||||
Derivatives, Fair Value | |||||||
Notional amount | € | € 850 | € 400 |
Derivative Instruments - Effect
Derivative Instruments - Effects of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||||
Derivatives and Hedges | ||||
Amount of Gain (Loss) Recognized in Other income (expense), net | $ (19) | $ (3) | $ (16) | $ 5 |
Derivatives designated as hedging instruments | ||||
Derivatives and Hedges | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | 24 | (16) | 42 | 47 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 4 | (16) | 19 | 34 |
Derivatives designated as hedging instruments | Net Investment Hedges | Interest expense, net | ||||
Derivatives and Hedges | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | 27 | 32 | 15 | |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 2 | 3 | 1 | |
Derivatives designated as hedging instruments | Commodity forward contracts and collars | Cash Flow Hedges | Cost of goods sold | ||||
Derivatives and Hedges | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | (3) | (3) | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 2 | 2 | ||
Derivatives designated as hedging instruments | Foreign exchange risk | Cash Flow Hedges | Other Expense | ||||
Derivatives and Hedges | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | (16) | 13 | 32 | |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (16) | $ 14 | $ 33 |
Restructuring Accruals (Details
Restructuring Accruals (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring accrual | ||||
Beginning balance, restructuring reserve | $ 27 | $ 43 | $ 31 | $ 45 |
Charges | 11 | 8 | 11 | 8 |
Write-down of assets to net realizable value | (1) | (1) | ||
Net cash paid, principally severance and related benefits | (4) | (7) | (8) | (10) |
Other, including foreign exchange translation | (1) | (1) | 1 | |
Ending balance, restructuring reserve | 32 | 44 | 32 | 44 |
Restructuring, Additional Information | ||||
Miscellaneous other costs | 0 | 0 | ||
Carrying value of impaired assets | 0 | 0 | ||
Employee Costs | ||||
Restructuring accrual | ||||
Beginning balance, restructuring reserve | 17 | 35 | 20 | 38 |
Charges | 3 | 2 | 3 | 2 |
Net cash paid, principally severance and related benefits | (2) | (5) | (5) | (8) |
Other, including foreign exchange translation | (1) | (1) | ||
Ending balance, restructuring reserve | 17 | 32 | 17 | 32 |
Asset Impairment | ||||
Restructuring accrual | ||||
Charges | 1 | 1 | ||
Write-down of assets to net realizable value | (1) | (1) | ||
Other Exit Costs | ||||
Restructuring accrual | ||||
Beginning balance, restructuring reserve | 10 | 8 | 11 | 7 |
Charges | 7 | 6 | 7 | 6 |
Net cash paid, principally severance and related benefits | (2) | (2) | (3) | (2) |
Other, including foreign exchange translation | 1 | |||
Ending balance, restructuring reserve | $ 15 | $ 12 | $ 15 | $ 12 |
Pension Benefit Plans (Details)
Pension Benefit Plans (Details) - Funded Plan - Pension Benefit Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
U.S. | ||||
Components of net periodic pension cost | ||||
Service cost | $ 3 | $ 3 | $ 6 | $ 6 |
Interest cost | 8 | 10 | 17 | 20 |
Expected asset return | (15) | (21) | (30) | (42) |
Amortization of actuarial loss | 10 | 16 | 20 | 32 |
Net periodic pension cost | 6 | 8 | 13 | 16 |
Non-US | ||||
Components of net periodic pension cost | ||||
Service cost | 2 | 3 | 5 | 6 |
Interest cost | 6 | 5 | 11 | 10 |
Expected asset return | (8) | (11) | (17) | (23) |
Amortization of actuarial loss | 2 | $ 3 | 4 | $ 7 |
Net periodic pension cost | $ 2 | $ 3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Income Taxes | ||
Statutory U.S. Federal tax rate (as a percent) | 21% | |
Mexican Tax Authority | ||
Income Taxes | ||
Settlement of tax audit | $ 38 |
Debt (Details)
Debt (Details) $ / shares in Units, € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Jul. 18, 2022 USD ($) | Nov. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) item agreement $ / shares | Jul. 08, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Mar. 25, 2022 USD ($) | Feb. 28, 2022 USD ($) | Feb. 10, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Jun. 30, 2021 USD ($) | Jun. 30, 2021 EUR (€) | |
Debt Instrument | |||||||||||||
Total long-term debt | $ 4,452 | $ 4,791 | $ 5,017 | ||||||||||
Less amounts due within one year | 25 | 38 | 40 | ||||||||||
Long-term debt | $ 4,427 | 4,753 | 4,977 | ||||||||||
Number of financial maintenance covenants | agreement | 1 | ||||||||||||
Maximum Borrowing Capacity | $ 2,800 | ||||||||||||
Weighted average interest rate (as a percent) | 3.13% | 3.13% | |||||||||||
Paddock | Subsequent Event | |||||||||||||
Debt Instrument | |||||||||||||
Face Value | $ 8.5 | ||||||||||||
Proceeds from lines of credit | $ 600 | ||||||||||||
Maximum | |||||||||||||
Debt Instrument | |||||||||||||
Leverage Ratio | item | 2.50 | ||||||||||||
Secured Credit Agreement | |||||||||||||
Debt Instrument | |||||||||||||
Unused Credit | $ 1,240 | ||||||||||||
Additional interest charges for note repurchase premiums and write-off of unamortized finance fees | $ 2 | ||||||||||||
Secured Credit Agreement | Minimum | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate margin, Term SOFR loans and Euro currency rate loans | 1% | 1% | |||||||||||
Interest rate margin, Base Rate loans (as a percent) | 0% | ||||||||||||
Secured Credit Agreement | Maximum | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate margin, Term SOFR loans and Euro currency rate loans | 1.75% | 1.75% | |||||||||||
Interest rate margin, Base Rate loans (as a percent) | 0.75% | ||||||||||||
Revolving Loans | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | 83 | ||||||||||||
Term Loan A | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 946 | ||||||||||||
Term Loan A | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | 923 | 1,068 | |||||||||||
Face Value | 950 | ||||||||||||
Debt redeemed | $ 128 | ||||||||||||
Increase in long term debt, net of debt issuance costs | 946 | ||||||||||||
Senior Notes | |||||||||||||
Debt Instrument | |||||||||||||
Debt Repurchase offer price | $ 250 | ||||||||||||
Additional interest charges for note repurchase premiums and write-off of unamortized finance fees | $ 13 | $ 16 | |||||||||||
Senior Notes 4.00%, due 2023 | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | 308 | ||||||||||||
Interest rate, stated percentage | 4% | 4% | 4% | ||||||||||
Senior Notes 5.875%, due 2023 | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 547 | 695 | 693 | ||||||||||
Interest rate, stated percentage | 5.875% | 5.875% | 5.875% | 5.875% | |||||||||
Debt repurchased amount | $ 150 | ||||||||||||
Fair values of fixed rate debt obligations | |||||||||||||
Principal Amount | $ 550 | ||||||||||||
Indicated Market Price (in dollars per share) | $ / shares | $ 99.12 | ||||||||||||
Fair Value | $ 545 | ||||||||||||
Senior Notes 3.125%, due 2024 (725 million EUR) | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 734 | € 725 | 826 | € 725 | 878 | € 725 | |||||||
Interest rate, stated percentage | 3.125% | 3.125% | |||||||||||
Fair values of fixed rate debt obligations | |||||||||||||
Principal Amount | $ 758 | ||||||||||||
Indicated Market Price (in dollars per share) | $ / shares | $ 94.66 | ||||||||||||
Fair Value | $ 718 | ||||||||||||
Senior Notes 6.375%, due 2025 | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 297 | 297 | 297 | ||||||||||
Interest rate, stated percentage | 6.375% | 6.375% | 6.375% | ||||||||||
Fair values of fixed rate debt obligations | |||||||||||||
Principal Amount | $ 300 | ||||||||||||
Indicated Market Price (in dollars per share) | $ / shares | $ 95.50 | ||||||||||||
Fair Value | $ 287 | ||||||||||||
Senior Notes, 5.375% due 2025 | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 299 | 298 | 298 | ||||||||||
Interest rate, stated percentage | 5.375% | 5.375% | 5.375% | ||||||||||
Fair values of fixed rate debt obligations | |||||||||||||
Principal Amount | $ 300 | ||||||||||||
Indicated Market Price (in dollars per share) | $ / shares | $ 94.57 | ||||||||||||
Fair Value | $ 284 | ||||||||||||
Senior Notes 2.875%, due 2025 (500 million EUR) | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 519 | € 500 | 561 | € 500 | 589 | € 500 | |||||||
Interest rate, stated percentage | 2.875% | 2.875% | |||||||||||
Fair values of fixed rate debt obligations | |||||||||||||
Principal Amount | $ 523 | ||||||||||||
Indicated Market Price (in dollars per share) | $ / shares | $ 90.97 | ||||||||||||
Fair Value | $ 476 | ||||||||||||
Senior Notes 6.625%, due 2027 | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 606 | 693 | 692 | ||||||||||
Interest rate, stated percentage | 6.625% | 6.625% | 6.625% | 6.625% | |||||||||
Debt repurchased amount | $ 88.2 | ||||||||||||
Fair values of fixed rate debt obligations | |||||||||||||
Principal Amount | $ 611.8 | ||||||||||||
Indicated Market Price (in dollars per share) | $ / shares | $ 93.65 | ||||||||||||
Fair Value | $ 573 | ||||||||||||
Senior Notes 4.75% due 2030 | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 400 | $ 395 | 395 | ||||||||||
Interest rate, stated percentage | 4.75% | 4.75% | 4.75% | ||||||||||
Debt redeemed | $ 310 | ||||||||||||
Increase in long term debt, net of debt issuance costs | $ 395 | ||||||||||||
Fair values of fixed rate debt obligations | |||||||||||||
Principal Amount | $ 400 | ||||||||||||
Indicated Market Price (in dollars per share) | $ / shares | $ 84.86 | ||||||||||||
Fair Value | $ 339 | ||||||||||||
Finance leases | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | 105 | 98 | 105 | ||||||||||
Other debt | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | 4 | $ 5 | $ 6 | ||||||||||
Revolving Credit Facility | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 300 | ||||||||||||
Additional default interest rate per annum applied to all obligations owed under the Agreement | 2% | ||||||||||||
Revolving Credit Facility | Minimum | |||||||||||||
Debt Instrument | |||||||||||||
Facility fee payable (as a percent) | 0.20% | ||||||||||||
Revolving Credit Facility | Maximum | |||||||||||||
Debt Instrument | |||||||||||||
Facility fee payable (as a percent) | 0.35% | ||||||||||||
Delayed draw term loan facility | |||||||||||||
Debt Instrument | |||||||||||||
Maximum Borrowing Capacity | $ 600 | ||||||||||||
Multicurrency Revolving Credit Facility | |||||||||||||
Debt Instrument | |||||||||||||
Total long-term debt | $ 950 |
Contingencies - Asbestos (Detai
Contingencies - Asbestos (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||||
Jul. 20, 2022 | Jul. 18, 2022 | Apr. 25, 2022 | Apr. 26, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 08, 2022 | Dec. 31, 2021 | Jun. 01, 2020 | |
Loss contingencies | |||||||||||
Sale of goods containing asbestos from 1948 to 1958 | $ 40 | ||||||||||
Settlement consideration | $ 610 | ||||||||||
Percentage of current asbestos claimants voting on the Plan | 75% | ||||||||||
Charge related to Paddock support agreement | $ 154 | $ 154 | |||||||||
Liability from deconsolidation | $ 625 | $ 625 | $ 625 | ||||||||
Paddock | |||||||||||
Loss contingencies | |||||||||||
Cash | $ 47 | ||||||||||
Loss for deconsolidation of Paddock | $ 14 | ||||||||||
Deconsolidation investing outflow | $ 47 | ||||||||||
Liability from deconsolidation | $ 471 | ||||||||||
Percentage in number of asbestos claimants voted on plan to accept plan | 99% | ||||||||||
Percentage in amount asbestos claimants voted on plan to accept plan | 99% | ||||||||||
Paddock | Subsequent Event | |||||||||||
Loss contingencies | |||||||||||
Funding to trust | $ 601.5 | ||||||||||
Funding to trust through borrowings | 600 | ||||||||||
Funding to trust through cash | $ 8.5 | $ 1.5 | |||||||||
Face Value | $ 8.5 | ||||||||||
Settlement consideration | $ 610 |
Contingencies - Other Matters (
Contingencies - Other Matters (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Contingencies | ||
Gain from favorable court ruling | $ 69 | $ 69 |
Income tax expense related to litigation settlement | $ 28 |
Share Owners' Equity - Rollforw
Share Owners' Equity - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) in Share Owners' Equity | ||||
Balance | $ 1,102 | $ 262 | $ 827 | $ 401 |
Issuance of common stock | 1 | 1 | ||
Reissuance of common stock | 3 | 2 | 6 | 4 |
Shares repurchased | (10) | (20) | (20) | (20) |
Stock compensation | 11 | 4 | 18 | 8 |
Net earnings | 256 | 123 | 378 | 33 |
Other comprehensive income (loss) | (77) | 142 | 79 | 88 |
Distributions to noncontrolling interests | (26) | (10) | (26) | (10) |
Other | (2) | (3) | (3) | |
Balance | 1,259 | 502 | 1,259 | 502 |
Common Stock | ||||
Increase (Decrease) in Share Owners' Equity | ||||
Balance | 2 | 2 | 2 | 2 |
Balance | 2 | 2 | 2 | 2 |
Capital in Excess of Par Value | ||||
Increase (Decrease) in Share Owners' Equity | ||||
Balance | 3,085 | 3,131 | 3,090 | 3,129 |
Issuance of common stock | 1 | 1 | ||
Reissuance of common stock | (1) | (1) | (3) | (3) |
Shares repurchased | (10) | (20) | (20) | (20) |
Stock compensation | 11 | 4 | 18 | 8 |
Other | (2) | (2) | ||
Balance | 3,085 | 3,113 | 3,085 | 3,113 |
Treasury Stock | ||||
Increase (Decrease) in Share Owners' Equity | ||||
Balance | (699) | (712) | (701) | (714) |
Reissuance of common stock | 4 | 3 | 9 | 7 |
Other | (3) | (2) | ||
Balance | (695) | (709) | (695) | (709) |
Retained Earnings | ||||
Increase (Decrease) in Share Owners' Equity | ||||
Balance | 389 | 55 | 301 | 152 |
Net earnings | 252 | 118 | 340 | 21 |
Balance | 641 | 173 | 641 | 173 |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Share Owners' Equity | ||||
Balance | (1,821) | (2,320) | (1,972) | (2,272) |
Other comprehensive income (loss) | (69) | 140 | 82 | 92 |
Balance | (1,890) | (2,180) | (1,890) | (2,180) |
Non-controlling Interests | ||||
Increase (Decrease) in Share Owners' Equity | ||||
Balance | 146 | 106 | 107 | 104 |
Net earnings | 4 | 5 | 38 | 12 |
Other comprehensive income (loss) | (8) | 2 | (3) | (4) |
Distributions to noncontrolling interests | (26) | (10) | (26) | (10) |
Other | 1 | |||
Balance | $ 116 | $ 103 | $ 116 | $ 103 |
Share Owners' Equity - Rollfo_2
Share Owners' Equity - Rollforward Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Owners' Equity | ||||
Issuance of common stock (in shares) | 50,000 | 50,000 | ||
Reissuance of common stock (in shares) | 200,000 | 100,000 | 400,000 | 300,000 |
Shares repurchased (in shares) | 770,710 | 1,000,000 | 1,500,000 | 1,000,000 |
Stock compensation (in shares) | 100,000 | 300,000 | 500,000 | 600,000 |
Share Owners' Equity - Share Re
Share Owners' Equity - Share Repurchase (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Owners' Equity | ||||
Shares repurchased | $ 10 | $ 20 | $ 20 | $ 20 |
Shares repurchased (in shares) | 770,710 | 1,000,000 | 1,500,000 | 1,000,000 |
Stock repurchase plan authorized | $ 150 | $ 150 | ||
Remaining repurchase of common stock available | $ 90 | $ 90 |
Share Owners' Equity -Authoriza
Share Owners' Equity -Authorization of Common Stock (Details) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Authorization of common stock | |||
Shares of common stock issued (including treasury shares) | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Shares of common stock issued (including treasury shares) | 186,936,000 | 187,752,000 | 189,029,000 |
Treasury shares | 31,220,000 | 31,397,000 | 31,745,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax | ||||
Other comprehensive income (loss) attributable to the Company | $ (77) | $ 142 | $ 79 | $ 88 |
Net Effect of Exchange Rate Fluctuations | ||||
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax | ||||
Balance at beginning of the period | (1,160) | (1,310) | (1,290) | (1,229) |
Change before reclassifications | (115) | 123 | 15 | 42 |
Other comprehensive income (loss) attributable to the Company | (115) | 123 | 15 | 42 |
Balance at end of the period | (1,275) | (1,187) | (1,275) | (1,187) |
Change in Certain Derivative Instruments | ||||
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax | ||||
Balance at beginning of the period | (18) | (47) | (21) | (60) |
Change before reclassifications | 25 | (17) | 43 | 46 |
Amounts reclassified from accumulated other comprehensive loss | (4) | 16 | (19) | (34) |
Translation effect | (1) | 1 | (1) | 1 |
Other comprehensive income (loss) attributable to the Company | 20 | 23 | 13 | |
Balance at end of the period | 2 | (47) | 2 | (47) |
Employee Benefit Plans | ||||
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax | ||||
Balance at beginning of the period | (643) | (963) | (661) | (983) |
Change before reclassifications | (1) | (2) | (1) | (2) |
Amounts reclassified from accumulated other comprehensive loss | 12 | 19 | 24 | 39 |
Translation effect | 15 | 21 | ||
Other comprehensive income (loss) attributable to the Company | 26 | 17 | 44 | 37 |
Balance at end of the period | (617) | (946) | (617) | (946) |
Accumulated Other Comprehensive Loss. | ||||
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax | ||||
Balance at beginning of the period | (1,821) | (2,320) | (1,972) | (2,272) |
Change before reclassifications | (91) | 104 | 57 | 86 |
Amounts reclassified from accumulated other comprehensive loss | 8 | 35 | 5 | 5 |
Translation effect | 14 | 1 | 20 | 1 |
Other comprehensive income (loss) attributable to the Company | (69) | 140 | 82 | 92 |
Balance at end of the period | $ (1,890) | $ (2,180) | $ (1,890) | $ (2,180) |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income (Expense), Net | |||||
Gain on sale of divested business (see Note 17) | $ 55 | ||||
Gain on sale leaseback (see Note 17) | $ 182 | 182 | |||
Restructuring, asset impairment and other charges | (12) | $ (9) | (12) | $ (9) | |
Brazil indirect tax credit (see Note 10) | 69 | 69 | |||
Charge related to Paddock support agreement liability (see Note 10) | $ (154) | (154) | |||
Intangible amortization expense | (8) | (9) | (16) | (17) | |
Foreign currency exchange loss | (2) | (2) | (2) | ||
Royalty income | 5 | 6 | 11 | 11 | |
Other | 3 | 2 | 1 | ||
Other income (expense), net | $ 168 | $ 57 | $ 220 | $ (101) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net earnings attributable to the Company | $ 252 | $ 118 | $ 340 | $ 21 |
Denominator (in thousands): | ||||
Denominator for basic earnings per share - weighted average shares outstanding (in shares) | 155,683,000 | 157,902,000 | 155,765,000 | 157,737,000 |
Effect of dilutive securities: | ||||
Stock options and other (in shares) | 3,268,000 | 2,889,000 | 3,109,000 | 2,722,000 |
Denominator for diluted earnings per share - adjusted weighted average shares outstanding (in shares) | 158,951,000 | 160,791,000 | 158,874,000 | 160,459,000 |
Basic earnings per share: | ||||
Net earnings (loss) attributable to the Company (in dollars per share) | $ 1.62 | $ 0.75 | $ 2.18 | $ 0.13 |
Diluted earnings per share: | ||||
Net earnings (loss) attributable to the Company (in dollars per share) | $ 1.59 | $ 0.73 | $ 2.14 | $ 0.13 |
Weighted average shares of common stock attributable to options not included in diluted earnings per share (in shares) | 804,953 | 772,521 | 1,190,747 | 1,331,298 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Supplemental Cash Flow Information | |||
Amount of receivables sold | $ 453 | $ 440 | $ 481 |
Receivables sold under supply chain factoring program | 158 | 206 | $ 180 |
Interest paid in cash | 112 | 97 | |
Increase or decrease to cash from operating activities from factoring programs | (28) | 4 | |
Interest expense due to factoring program | 3 | 3 | |
Income taxes paid in cash | |||
Income taxes paid in cash | 99 | 42 | |
Cash interest included in note repurchase premiums | 12 | ||
U.S. operations | |||
Income taxes paid in cash | |||
Income taxes paid in cash | 6 | 4 | |
Non-U.S. | |||
Income taxes paid in cash | |||
Income taxes paid in cash | $ 93 | $ 38 |
Divestitures and Sale Leaseba_2
Divestitures and Sale Leaseback of Land and Building (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2022 | Jan. 31, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | |
Divestitures | |||||
Gain on sale leaseback | $ 182 | $ 182 | |||
Gain on sale of divested business | $ 55 | ||||
Argentina | Disposal Group, Not Discontinued Operations | |||||
Divestitures | |||||
Gross proceeds | $ 10 | ||||
Cristar TableTop S.A.S. | Disposal Group, Not Discontinued Operations | |||||
Divestitures | |||||
Gross proceeds | $ 96 | ||||
Gain on sale of businesses, after tax | 16 | ||||
Cristar TableTop S.A.S. | Other operating income (expense) | Disposal Group, Not Discontinued Operations | |||||
Divestitures | |||||
Gain on sale of divested business | $ 55 | ||||
Brampton, Ontario, Canada Plant | |||||
Lease | |||||
Lease term | 10 years | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent | |||
Operating lease right-of-use assets (included in Other assets) | $ 59 | $ 59 | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | Other Liabilities, Current | |||
Current operating lease liabilities (included in Other current liabilities) | $ 4 | $ 4 | |||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | |||
Noncurrent operating lease liabilities (included in Other long-term liabilities) | $ 55 | $ 55 | |||
Brampton, Ontario, Canada Plant | Minimum | |||||
Lease | |||||
Rent payment | $ 7.3 | ||||
Brampton, Ontario, Canada Plant | Maximum | |||||
Lease | |||||
Rent payment | 9.1 | ||||
Brampton, Ontario, Canada Plant | Disposal Group, Not Discontinued Operations | |||||
Divestitures | |||||
Net proceeds | 190 | ||||
Gain on sale of businesses, after tax | 158 | ||||
Brampton, Ontario, Canada Plant | Other operating income (expense) | Disposal Group, Not Discontinued Operations | |||||
Divestitures | |||||
Gain on sale leaseback | $ 182 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 20, 2022 | Jul. 18, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 08, 2022 | Apr. 26, 2021 | |
Subsequent Events | |||||||
Estimated operating cash outflow | $ 120 | $ 143 | |||||
Total consideration ("Settlement Consideration") | $ 610 | ||||||
Subsequent Event | Paddock | |||||||
Subsequent Events | |||||||
Estimated operating cash outflow | $ 620 | ||||||
Face Value | $ 8.5 | ||||||
Funding to trust | $ 601.5 | ||||||
Funding to trust through borrowings | 600 | ||||||
Funding to trust through cash | $ 8.5 | $ 1.5 | |||||
Total consideration ("Settlement Consideration") | $ 610 |