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A N N U A L R E P O RT
DEAR FELLOW SHAREHOLDERS,
Greif made meaningful progress across our strategic priorities - Engaged Teams, Differentiated Customer Service and Enhanced Performance - in 2020. While the ongoing global health pandemic created unprecedented challenges to our daily lives, we overcame these obstacles to accomplish much during this past year. This highlights our Greif team's discipline, resolve and extraordinary dedication to our business and customers.
Engaged Teams - Safe and engaged teams fuel Greif's ongoing success. To help counter potential colleague exposure to COVID-19, we changed how we worked and implemented advanced safety and health protocols across our global workplace this year. We also advanced toward our "zero harm" workplace aspiration with more than 50 percent of our manufacturing sites recording zero medical cases in 2020. To further improve our workplace, we completed our third annual colleague engagement survey and achieved a companywide engagement score placing Greif among the best performers in the manufacturing sector. Lastly, we expanded our colleague resource group offering to strengthen our commitment to diversity and inclusion. We also engaged our colleagues in active listening sessions about race and equality to ensure our behaviors align to our value systems outlined in The Greif Way.
Differentiated Customer Service - Our vision is, in industrial packaging, be the best performing customer service company in the world. Although COVID-19 forced us to interact with customers in new ways, it did not prevent us from serving their needs with excellence. In 2020 we launched an in-depth customer interview process to identify new markets and customer needs. We also completed our 10th Net Promoter Score (NPS) survey and achieved an all-time best score of 67, which represents a 10% improvement over our 2019 result.
Enhanced Performance - While macroeconomic uncertainty caused by COVID-19 impacted our profitability in 2020, we still advanced our financial priorities of generating cash and paying down debt. Adjusted Free Cash Flow improved by more than 29 percent versus 2019 thanks to disciplined operational execution and sharp working capital focus. We reduced net debt by more than $293 million dollars and rewarded our investors with more than $104 million in dividends. In addition to solid financial results, we made great progress on our sustainability journey. More than 35 of our manufacturing facilities achieved "zero waste to landfill" status, and we commenced third party assessments of our suppliers' sustainability performance to find opportunities for improvement. Finally, we were awarded with our third consecutive gold rating from EcoVadis for sustainability leadership and our third consecutive A- rating from CDP as part of their annual climate change assessment.
In summary, I am incredibly proud of how our global team adapted and responded to the unique and unprecedented challenges presented this past year. Looking ahead to 2021, the Greif team will remain laser focused on controlling the execution levers within our control as the world emerges from the pandemic. We have a solid foundation - our vision is clear; our teams are engaged; we are focused on serving our customers; and our financial priorities are sound. We will leverage our position and scale as the world's leading industrial packaging company to drive greater value for our colleagues, our communities and our shareholders. I am excited about our future. Thank you for your support and continued investment in Greif.
Best regards,
Peter G. Watson
President and Chief Executive Officer
GAAP TO NON-GAAP RECONCILIATION | ||||||
ADJUSTED FREE CASH FLOW (1) | ||||||
UNAUDITED | Twelve months ended October 31, | |||||
(in millions) | 2020 | 2019 | 2018 | |||
Net cash provided by operating activities | $ | 454.7 | $ | 389.5 | $ | 253.0 |
Cash paid for purchases of properties, plants and equipment | (131.4) | (156.8) | (140.2) | |||
Free Cash Flow | $ | 323.3 | $ | 232.7 | $ | 112.8 |
Cash paid for acquisition and integration related costs | 17.0 | 29.7 | 0.7 | |||
Cash paid for debt issuance costs(2) | - | 5.1 | - | |||
Additional U.S. pension contribution | - | - | 65.0 | |||
Cash paid for incremental COVID-19 costs, net (3) | 2.6 | - | - | |||
Cash paid for acquisition-related ERP systems (4) | 3.3 | 0.3 | - | |||
Adjusted Free Cash Flow | $ | 346.2 | $ | 267.8 | $ | 178.5 |
(1)Adjusted free cash flow is defined as net cash provided by operating activities, less cash paid for purchases of properties, plants and equipment, plus cash paid for aacquisition and integration related costs, plus cash paid for debt issuance costs, plus an additional one-time $65.0 million contribution made by the Company to its U.S. defined benefit plan during the third quarter of 2018, plus cash paid for incremental COVID-19 costs, net, plus cash paid for acquisition-related ERP systems.
(2)Cash paid for debt issuance costs is defined as cash payments for debt issuance related expenses included within net cash used in operating activities.
(3)Incremental COVID-19 costs, net includes costs directly attributable to COVID-19 such as costs incurred for incremental cleaning and sanitation efforts and employee safety measures, offset by economic relief received from foreign governments.
(4)Cash paid for acquisition-related ERP systems is defined as capital expenditures for the integration of Caraustar into Grief's global enterprise resource planning system.
GAAP TO NON-GAAP RECONCILIATION
NET DEBT (5)
UNAUDITED
(in millions) | October 31, 2020 | October 31, 2019 |
Total Debt | 2,487.0 | 2,751.9 |
Cash and cash equivalents | (105.9) | (77.3) |
Net Debt | 2,381.1 | 2,674.6 |
- Net debt is dened as total debt less cash and cash equivalents.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended October 31, 2020 or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934□
GREIF, INC.
Delaware
(State or other jurisdiction of incorporation or organization)
425 Winter Road Delaware Ohio (Address of principal executive offices)
31-4388903
(I.R.S. Employer
Identification No.)
43015
(Zip Code)
Registrant's telephone number, including area code (740) 549-6000 | ||
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
Class A Common Stock | GEF | New York Stock Exchange |
Class B Common Stock | GEF-B | New York Stock Exchange |
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IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
Index to Form 10-K Annual Report for the Fiscal Year ended October 31, 2020
Form | Description | Page | |
10-K Item | |||
Part I | 1 | Business | 4 |
(a) General Development of Business | 4 | ||
(b) Financial Information about Segments | 4 | ||
(c) Narrative Description of Business | 4 | ||
(d) Financial Information about Geographic Areas | 7 | ||
(e) Available Information | 7 | ||
1A. | (f) Other Matters | 7 | |
Risk Factors | 8 | ||
1B. | Unresolved Staff Comments | 18 | |
2 | Properties | 19 | |
3 | Legal Proceedings | 22 | |
Part II | 4 | Mine Safety Disclosures | 22 |
5 | Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 23 | |
6 | Selected Financial Data | 24 | |
7 | Management's Discussion and Analysis of Financial Condition and Results of Operations | 25 | |
7A. | Quantitative and Qualitative Disclosures about Market Risk | 40 | |
8 | Financial Statements and Supplementary Data | 43 | |
Consolidated Statements of Income | 43 | ||
Consolidated Statements of Comprehensive Income | 43 | ||
Consolidated Balance Sheets | 44 | ||
Consolidated Statements of Cash Flows | 46 | ||
Consolidated Statements of Changes in Shareholders' Equity | 47 | ||
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies | 48 | ||
Note 2 - Acquisitions and Divestitures | 56 | ||
Note 3 - Goodwill and Other Intangible Assets | 58 | ||
Note 4 - Restructuring Charges | 60 | ||
Note 5 - Consolidation of Variable Interest Entities | 61 | ||
Note 6 - Long-Term Debt | 63 | ||
Note 7 - Financial Instruments and Fair Value Measurements | 66 | ||
Note 8 - Stock-Based Compensation | 69 | ||
Note 9 - Income Taxes | 70 | ||
Note 10 - Post-Retirement Benefit Plans | 73 | ||
Note 11 - Contingent Liabilities and Environmental Reserves | 78 | ||
Note 12 - Earnings Per Share | 80 | ||
Note 13 - Equity Earnings of Unconsolidated Affiliates, Net of Tax | 82 | ||
Note 14 - Leases | 82 | ||
Note 15 - Business Segment Information | 83 | ||
Note 16 - Comprehensive Income (Loss) | 86 | ||
Note 17 - Quarterly Financial Data (Unaudited) | 86 | ||
Note 18 - Redeemable Noncontrolling Interests | 88 | ||
Note 19 - Subsequent Events | 89 | ||
9 | Report of Independent Registered Public Accounting Firm | 90 | |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosures | 92 | ||
9A. | Controls and Procedures | 92 | |
9B. | Report of Independent Registered Public Accounting Firm | 93 | |
Other Information | 93 |
Form | Description | Page | |
10-K Item | |||
Part III | 10 | Directors, Executive Officers and Corporate Governance | 94 |
11 | Executive Compensation | 94 | |
12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 94 | |
13 | Certain Relationships and Related Transactions, and Director Independence | 94 | |
Part IV | 14 | Principal Accountant Fees and Services | 95 |
15 | Exhibits and Financial Statement Schedules | 95 | |
16 | Form 10-K Summary | 98 | |
Schedules | Signatures | 99 | |
Schedule II | 100 |
PART I
ITEM 1. BUSINESS
(a) General Development of Business
- Financial Information about Segments
- Narrative Description of Business Sales
COVID-19
Markets
Resources
Government Laws and Regulations
Human Capital
Health and Safety
Diversity and Inclusion
Talent Development
- Financial Information about Geographic Areas
- Available Information
- Other Matters
ITEM 1A. RISK FACTORS
Risks Related to Market and Economic Factors
Historically, our Business has been Sensitive to Changes in General Economic or Business Conditions.
Our Global Operations Subject us to Currency Exchange and Political Risks that Could Adversely Affect our Results of Operations.
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The COVID-19 Pandemic Could Continue to Impact Any Combination of our Business, Financial Condition, Results of Operations and Cash Flows.
The Current and Future Challenging Global Economy and Disruption and Volatility of the Financial and Credit Markets may Adversely Affect our Business.
Risks Related to Industry Conditions
The Continuing Consolidation of our Customer Base and Suppliers may Intensify Pricing Pressure.
We Operate in Highly Competitive Industries.
Our Business is Sensitive to Changes in Industry Demands and Customer Preferences.
Raw Material, Energy and Transportation Price Fluctuations and Shortages may Adversely Impact our Manufacturing Operations and Costs.
The Frequency and Volume of our Timber and Timberland Sales Will Impact our Financial Performance.
Risks Related to our Operations
We may not Successfully Implement our Business Strategies, Including Achieving our Growth Objectives.
We may Encounter Difficulties or Liabilities Arising from Acquisitions or Divestitures.
The Acquisition of Caraustar Subjects us to Various Risks and Uncertainties.
We may Incur Additional Restructuring Costs and there is no Guarantee that our Efforts to Reduce Costs will be Successful.
Several Operations are Conducted by Joint Ventures that we Cannot Operate Solely for our Benefit.
Certain of the Agreements that Govern our Joint Ventures Provide our Partners With Put or Call Options.
Our Ability to Attract, Develop and Retain Talented and Qualified Employees, Managers and Executives is Critical to our Success.
Our Business may be Adversely Impacted by Work Stoppages and Other Labor Relations Matters.
We may be Subject to Losses that Might not be Covered in Whole or in Part by Existing Insurance Reserves or Insurance Coverage and General Insurance Premium and Deductible Increases.
Our Business Depends on the Uninterrupted Operations of our Facilities, Systems and Business Functions, Including our Information Technology (''IT'') and Other Business Systems.
A Security Breach of Customer, Employee, Supplier or Company Information may have a Material Adverse Effect on our Business, Financial Condition, Results of Operations and Cash Flows.
Risks Related to Financial Reporting
Changes in U.S. Generally Accepted Accounting Principles (''GAAP'') and SEC Rules and Regulations Concerning the Maintenance of Effective Internal Controls Could Materially Impact our Reported Financial Results.
We Could be Subject to Changes in our Tax Rates, the Adoption of New U.S. or Foreign Tax Legislation or Exposure to Additional Tax Liabilities.
Full Realization of our Deferred Tax Assets may be Affected by a Number of Factors.
Our Level of Indebtedness Could Adversely Affect our Liquidity, Limit our Flexibility in Responding to Business Opportunities, and Increase our Vulnerability to Adverse Changes in Economic and Industry Conditions.
We have a Significant Amount of Goodwill and Long-lived Assets Which, if Impaired in the Future, Would Adversely Impact our Results of Operations.
Our Pension and Post-retirement Plans are Underfunded and will Require Future Cash Contributions, and our Required Future Cash Contributions Could be Higher than we Expect, Each of Which Could Have a Material Adverse Effect on our Financial Condition and Liquidity.
Risks Related to Regulatory and Legal Costs
Legislation/Regulation Related to Environmental and Health and Safety Matters and Corporate Social Responsibility Could Negatively Impact our Operations and Financial Performance.
Product Liability Claims and Other Legal Proceedings Could Adversely Affect our Operations and Financial Performance.
We may Incur Fines or Penalties, Damage to our Reputation or other Adverse Consequences if our Employees, Agents or Business Partners Violate, or are Alleged to have Violated, Anti-bribery, Competition or Other Laws.
Changing Climate, Climate Change Regulations and Greenhouse Gas Effects may Adversely Affect our Operations and Financial Performance.
ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 2. PROPERTIES
Location | Products or Use | Owned | Leased |
RIGID INDUSTRIAL PACKAGING & SERVICES: | - | 1 | |
Algeria | Steel drums | ||
Argentina | Steel and plastic drums, pails and water bottles | 2 | 1 |
Austria | Steel drums, intermediate bulk containers and reconditioned containers and services | - | 1 |
Belgium | Steel and plastic drums | 2 | - |
Brazil | Steel and plastic drums, steel lids and closures | 5 | 2 |
Canada | Plastic drums and warehouse | 1 | 1 |
Chile | Steel drums, water bottles and warehouse | 1 | 1 |
China | Steel and plastic drums, closures and intermediate bulk containers and packaging | 7 | - |
services | |||
Colombia | Steel and plastic drums and water bottles | - | 1 |
Costa Rica | Steel drums | - | 1 |
Czech Republic | Steel drums | 1 | - |
Denmark | Fibre drums | - | 1 |
Egypt | Steel drums | 1 | - |
France | Steel and plastic drums, intermediate bulk containers, reconditioned containers and | 3 | - |
closures | |||
Germany | Steel drums, water bottles, intermediate bulk containers and closures | 4 | - |
Greece | Steel drums | 1 | - |
Guatemala | Steel drums | 1 | - |
Hungary | Steel drums | 1 | - |
Israel | Steel, plastic and fibre drums and intermediate bulk containers | - | 1 |
Italy | Steel and plastic drums, jerry cans, intermediate bulk containers and accessories and | 1 | 2 |
rebottling and post-consumer recycling | |||
Kenya | Steel drums | - | 1 |
Malaysia | Steel drums | 1 | 1 |
Mexico | Steel, plastic and fibre drums and warehouse | 1 | 2 |
Morocco | Steel and plastic drums | 1 | - |
Netherlands | Steel drums and disks, paints and linings, intermediate bulk containers, | 4 | 3 |
reconditioned containers and closures | |||
Nigeria | Corporate housing | 1 | - |
Poland | Steel drums and water bottles | 1 | - |
Location | Products or Use | Owned | Leased | |
Portugal | Steel drums | 1 | - | |
Russia | Steel drums, clovertainers, intermediate bulk containers and general office | 6 | 4 | |
Saudi Arabia | Steel drums | - | 2 | |
Singapore | Steel and plastic drums | - | 1 | |
South Africa | Steel and plastic drums | 2 | 1 | |
Spain | Steel drums and intermediate bulk containers | 2 | 1 | |
Sweden | Steel and plastic drums and intermediate bulk containers | 1 | 1 | |
Turkey | Steel drums | 1 | - | |
Ukraine | Water bottles and distribution center | - | 1 | |
United Kingdom | Steel drums and intermediate bulk containers | 2 | - | |
United States | Fibre, steel and plastic drums, intermediate bulk containers, reconditioned | 15 | 22 | |
Vietnam | containers, closures, warehouse and packaging services | |||
Steel drums | 1 | - | ||
FLEXIBLE PRODUCTS & SERVICES: | Manufacturing plant | - | 1 | |
Belgium | ||||
Brazil | General office | - | 1 | |
Chile | General office | - | 1 | |
China | Manufacturing plant | - | 1 | |
France | Manufacturing plant | 1 | - | |
Germany | General offices and warehouse | - | 2 | |
India | General office | - | 1 | |
Ireland | Distribution center | - | 1 | |
Mexico | Manufacturing plant | - | 1 | |
Netherlands | General offices and warehouse | - | 1 | |
Romania | Manufacturing plants | - | 2 | |
Turkey | Manufacturing plants | - | 3 | |
Ukraine | Manufacturing plant | 1 | - | |
United Kingdom | Manufacturing plant | - | 1 | |
United States | General offices and warehouse | - | 2 | |
Vietnam | Manufacturing plant | - | 1 | |
PAPER PACKAGING & SERVICES: | Spiral-wound paper tubes and cores and warehouse | 2 | 3 | |
Canada | ||||
United States | Corrugated sheets and containers, spiral-wound paper tubes and cores, | headers, | ||
adhesives, protect-a-board, containerboard, coated and uncoated recycled | 59 | 46 | ||
paperboard, recycled fibre plants, general offices and warehouses |
Location | Products or Use | Owned | Leased |
LAND MANAGEMENT: | General offices | 2 | 2 |
United States | |||
CORPORATE: | General office | - | 1 |
Belgium | |||
Hungary | Shared service center | - | 1 |
Netherlands | General office | - | 1 |
United States | Principal and general offices | 3 | - |
ITEM 3. LEGAL PROCEEDINGS
ITEM 4. MINE SAFETY DISCLOSURES
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
2020 Dividends per Share - Class A $1.76; Class B $2.63 2019 Dividends per Share - Class A $1.76; Class B $2.63
Performance Graph
ITEM 6. SELECTED FINANCIAL DATA
(in millions, except per share amounts) | Year Ended October 31, | |||||||||||||
2020 | 2019(1) | 2018 | 2017 | 2016 | ||||||||||
Net sales | $ | 4,515.0 | $ | 4,595.0 | $ | 3,873.8 | $ | 3,638.2 | $ | 3,323.6 | ||||
Net income attributable to Greif, Inc. | $ | 108.8 | $ | 171.0 | $ | 209.4 | $ | 118.6 | $ | 74.9 | ||||
Total assets | $ | 5,510.9 | $ | 5,426.7 | $ | 3,194.8 | $ | 3,232.3 | $ | 3,153.0 | ||||
Long-term debt, including current portion of long-term debt | $ | 2,469.7 | $ | 2,756.3 | $ | 907.6 | $ | 952.8 | $ | 974.6 | ||||
Basic earnings per share: | $ | 1.83 | $ | 2.89 | $ | 3.56 | $ | 2.02 | $ | 1.28 | ||||
Class A common stock | ||||||||||||||
Class B common stock | $ | 2.74 | $ | 4.33 | $ | 5.33 | $ | 3.02 | $ | 1.90 | ||||
Diluted earnings per share: | $ | 1.83 | $ | 2.89 | $ | 3.55 | $ | 2.02 | $ | 1.28 | ||||
Class A common stock | ||||||||||||||
Class B common stock | $ | 2.74 | $ | 4.33 | $ | 5.33 | $ | 3.02 | $ | 1.90 | ||||
Dividends per share: | $ | 1.76 | $ | 1.76 | $ | 1.70 | $ | 1.68 | $ | 1.68 | ||||
Class A common stock | ||||||||||||||
Class B common stock | $ | 2.63 | $ | 2.63 | $ | 2.54 | $ | 2.51 | $ | 2.51 | ||||
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
COVID-19
RESULTS OF OPERATIONS
Year Ended October 31, (in millions) | 2020 | 2019 | 2018 | |||
Net sales: | $ | 2,298.9 | $ | 2,490.6 | $ | 2,623.6 |
Rigid Industrial Packaging & Services | ||||||
Paper Packaging & Services | 1,916.9 | 1,780.0 | 898.5 | |||
Flexible Products & Services | 272.9 | 297.5 | 324.2 | |||
Land Management | $ | 26.3 | $ | 26.9 | $ | 27.5 |
Total net sales | 4,515.0 | 4,595.0 | 3,873.8 | |||
Operating profit: | $ | 209.9 | $ | 179.6 | $ | 183.2 |
Rigid Industrial Packaging & Services | ||||||
Paper Packaging & Services | 71.0 | 184.3 | 158.3 | |||
Flexible Products & Services | 15.5 | 25.3 | 19.4 | |||
Land Management | $ | 8.5 | $ | 9.9 | $ | 9.6 |
Total operating profit | 304.9 | 399.1 | 370.5 | |||
EBITDA: | $ | 284.6 | $ | 251.6 | $ | 249.0 |
Rigid Industrial Packaging & Services | ||||||
Paper Packaging & Services | 225.9 | 307.0 | 191.8 | |||
Flexible Products & Services | 22.4 | 32.7 | 25.7 | |||
Land Management | $ | 13.0 | $ | 14.2 | $ | 14.2 |
Total EBITDA | 545.9 | 605.5 | 480.7 | |||
Adjusted EBITDA: | $ | 297.5 | $ | 269.9 | $ | 273.4 |
Rigid Industrial Packaging & Services | ||||||
Paper Packaging & Services | 306.4 | 348.3 | 192.3 | |||
Flexible Products & Services | 26.8 | 28.6 | 25.6 | |||
Land Management | $ | 11.9 | $ | 12.1 | $ | 11.9 |
Total Adjusted EBITDA | 642.6 | 658.9 | 503.2 |
Year Ended October 31, (in millions) | 2020 | 2019 | 2018 | |
Net income | $124.3 | $194.2 | $229.5 | |
Plus: interest expense, net | 115.8 | 112.5 | 51.0 | |
Plus: debt extinguishment charges | - | 22.0 | - | |
Plus: income tax expense | 63.3 | 70.7 | 73.3 | |
Plus: depreciation, depletion and amortization expense | 242.5 | 206.1 | 126.9 | |
EBITDA | $545.9 | $605.5 | $480.7 | |
Net income | $124.3 | $194.2 | $229.5 | |
Plus: interest expense, net | 115.8 | 112.5 | 51.0 | |
Plus: debt extinguishment charges | - | 22.0 | - | |
Plus: income tax expense | 63.3 | 70.7 | 73.3 | |
Plus: non-cash pension settlement charges | 0.3 | - | 1.3 | |
Plus: other expense, net | 2.7 | 2.6 | 18.4 | |
Plus: equity earnings of unconsolidated affiliates, net of tax | (1.5) | (2.9) | (3.0) | |
Operating profit | 304.9 | 399.1 | 370.5 | |
Less: other expense, net | 2.7 | 2.6 | 18.4 | |
Less: non-cash pension settlement charges | 0.3 | - | 1.3 | |
Less: equity earnings of unconsolidated affiliates, net of tax | (1.5) | (2.9) | (3.0) | |
Plus: depreciation, depletion and amortization expense | 242.5 | 206.1 | 126.9 | |
EBITDA | 545.9 | 605.5 | 480.7 | |
Plus: restructuring charges | 38.7 | 26.1 | 18.6 | |
Plus: acquisition and integration related costs | 17.0 | 29.7 | 0.7 | |
Plus: non-cash asset impairment charges | 18.5 | 7.8 | 8.3 | |
Plus: non-cash pension settlement charges | 0.3 | - | 1.3 | |
Plus: incremental COVID-19 costs, net | 2.6 | - | - | |
Less: (gain) loss on disposal of properties, plants, equipment, and businesses, net | 19.6 | (10.2) | (6.4) | |
Adjusted EBITDA | $642.6 | $658.9 | $503.2 |
Year Ended October 31, (in millions) | 2020 | 2019 | 2018 | |||||||||
Rigid Industrial Packaging & Services | $ | 209.9 | $ | 179.6 | $ | 183.2 | ||||||
Operating profit | ||||||||||||
Less: other expense, net | 5.3 | 7.2 | 17.1 | |||||||||
Less: non-cash pension settlement charges | 0.4 | - | 1.3 | |||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (1.5) | (2.9) | (3.0) | |||||||||
Plus: depreciation and amortization expense | 78.9 | 76.3 | 81.2 | |||||||||
EBITDA | ||||||||||||
284.6 | 251.6 | 249.0 | ||||||||||
Plus: restructuring charges | ||||||||||||
26.0 | 18.8 | 17.3 | ||||||||||
Plus: acquisition and integration related costs | - | 0.6 | 0.7 | |||||||||
Plus: non-cash asset impairment charges | 5.1 | 2.7 | 8.3 | |||||||||
Plus: non-cash pension settlement charges | 0.4 | - | 1.3 | |||||||||
Plus: incremental COVID-19 costs, net | 0.1 | - | - | |||||||||
Less: gain on disposal of properties, plants, equipment, and businesses, net | $ | (18.7) | $ | (3.8) | $ | (3.2) | ||||||
Adjusted EBITDA | 297.5 | 269.9 | 273.4 | |||||||||
Paper Packaging & Services | ||||||||||||
$ | 71.0 | $ | 184.3 | $ | 158.3 | |||||||
Operating profit | ||||||||||||
Less: other (income) expense, net | (1.3) | (3.4) | 0.7 | |||||||||
Less: non-cash pension settlement charges | (0.1) | - | - | |||||||||
Plus: depreciation and amortization expense | 153.5 | 119.3 | 34.2 | |||||||||
EBITDA | ||||||||||||
225.9 | 307.0 | 191.8 | ||||||||||
Plus: restructuring charges | ||||||||||||
9.9 | 6.2 | 0.4 | ||||||||||
Plus: acquisition and integration related costs | 17.0 | 29.1 | - | |||||||||
Plus: non-cash asset impairment charges | 12.5 | 5.1 | - | |||||||||
Plus: non-cash pension settlement charges | (0.1) | - | - | |||||||||
Plus: incremental COVID-19 costs, net | 1.9 | - | - | |||||||||
Less: loss on disposal of properties, plants, equipment, and businesses, net | $ | 39.3 | $ | 0.9 | $ | 0.1 | ||||||
Adjusted EBITDA | 306.4 | 348.3 | 192.3 | |||||||||
Flexible Products & Services | ||||||||||||
$ | 15.5 | $ | 25.3 | $ | 19.4 | |||||||
Operating profit | ||||||||||||
Less: other (income) expense, net | (1.3) | (1.2) | 0.6 | |||||||||
Plus: depreciation and amortization expense | 5.6 | 6.2 | 6.9 | |||||||||
EBITDA | ||||||||||||
22.4 | 32.7 | 25.7 | ||||||||||
Plus: restructuring charges | ||||||||||||
2.8 | 1.0 | 0.9 | ||||||||||
Plus: non-cash asset impairment charges | 0.9 | - | - | |||||||||
Plus: incremental COVID-19 costs, net | 0.6 | - | - | |||||||||
Less: (gain) loss on disposal of properties, plants, equipment, and businesses, net | $ | 0.1 | $ | (5.1) | $ | (1.0) | ||||||
Adjusted EBITDA | 26.8 | 28.6 | 25.6 | |||||||||
Land Management | ||||||||||||
$ | 8.5 | $ | 9.9 | $ | 9.6 | |||||||
Operating profit | ||||||||||||
Plus: depreciation, depletion and amortization expense | 4.5 | 4.3 | 4.6 | |||||||||
EBITDA | ||||||||||||
13.0 | 14.2 | 14.2 | ||||||||||
Plus: restructuring charges | ||||||||||||
- | 0.1 | - | ||||||||||
Less: gain on disposal of properties, plants, equipment, and businesses, net | $ | (1.1) | $ | (2.2) | $ | (2.3) | ||||||
Adjusted EBITDA | 11.9 | 12.1 | 11.9 | |||||||||
Year 2020 Compared to Year 2019
Net Sales
Gross Profit
Selling, General and Administrative Expenses
Restructuring Charges
Acquisition and Integration Related Costs
Impairment Charges
Gain on Disposal of Properties, Plants and Equipment, net Loss on Disposal of Businesses, net
Financial Measures
Trends
Segment Review
Rigid Industrial Packaging & Services
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Paper Packaging & Services
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Flexible Products & Services
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Land Management
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sU.S. and Non-U.S. Income before Income Tax Expense
Summary | |||||||||||||||||
Year ended | |||||||||||||||||
October 31, | |||||||||||||||||
Non-U.S. % of Consolidated Net Sales | 2020 2019 | ||||||||||||||||
38.9% | 40.6% | ||||||||||||||||
U.S. % of Consolidated Net Sales | 61.1% | 59.4% | |||||||||||||||
Non-U.S. % of Consolidated I.B.I.T. | 100.0% | 100.0% | |||||||||||||||
86.3% | 50.4% | ||||||||||||||||
U.S. % of Consolidated I.B.I.T. | 13.7% | 49.6% | |||||||||||||||
Non-U.S. % of Consolidated I.B.I.T. before Adjustments | 100.0% | 100.0% | |||||||||||||||
60.0% | 44.0% | ||||||||||||||||
U.S. % of Consolidated I.B.I.T. before Adjustments | 40.0% | 56.0% | |||||||||||||||
100.0% | 100.0% | ||||||||||||||||
Non-U.S. I.B.I.T. Reconciliation | |||||||||||||||||
Year ended | |||||||||||||||||
October 31, | |||||||||||||||||
Non-U.S. I.B.I.T. | 2020 2019 | ||||||||||||||||
$ | 160.6 | $ | 132.1 | ||||||||||||||
Non-cash asset impairment charges | 5.5 | 2.7 | |||||||||||||||
Non-cash pension settlement charge | 0.4 | - | |||||||||||||||
Restructuring charges | 12.0 | 16.3 | |||||||||||||||
Acquisition and integration related costs | 0.1 | 0.5 | |||||||||||||||
Loss on sale of businesses | 0.9 | 2.9 | |||||||||||||||
Total Non-U.S. Adjustments | |||||||||||||||||
$ | 18.9 | $ | 22.4 | ||||||||||||||
Non-U.S. I.B.I.T. before Adjustments | 179.5 | 154.5 | |||||||||||||||
U.S. I.B.I.T. Reconciliation | |||||||||||||||||
Year ended | |||||||||||||||||
October 31, | |||||||||||||||||
U.S. I.B.I.T. | 2020 2019 | ||||||||||||||||
$ | 25.5 | $ | 129.9 | ||||||||||||||
Non-cash asset impairment charges | 13.0 | 5.1 | |||||||||||||||
Non-cash pension settlement charge | (0.1) | - | |||||||||||||||
Restructuring charges | 26.7 | 9.8 | |||||||||||||||
Acquisition and integration related costs | 16.9 | 29.2 | |||||||||||||||
Debt extinguishment charges | - | 22.0 | |||||||||||||||
Loss on sale of businesses | 37.9 | 0.8 | |||||||||||||||
Total U.S. Adjustments | |||||||||||||||||
$ | 94.4 | $ | 66.9 | ||||||||||||||
U.S. I.B.I.T. before Adjustments | 119.9 | 196.8 | |||||||||||||||
Income Tax Expense
Net Income Attributable to Noncontrolling Interests
Year 2019 Compared to Year 2018
OTHER COMPREHENSIVE INCOME CHANGES
Foreign Currency Translation
Derivative Financial Instruments
Minimum Pension Liability, net
BALANCE SHEET CHANGES
Working Capital Changes
LIQUIDITY AND CAPITAL RESOURCES
Capital Expenditures
United States Trade Accounts Receivable Credit Facility
International Trade Accounts Receivable Credit Facilities
Borrowing Arrangements
(in millions) | October 31, | October 31, | ||||
2020 | 2019 | |||||
2019 Credit Agreement - Term Loans | $1,429.8 | $1,612.2 | ||||
Senior Notes due 2027 | 495.1 | 494.3 | ||||
Senior Notes due 2021 | 234.8 | 221.7 | ||||
Accounts receivable credit facilities | 310.0 | 351.6 | ||||
2019 Credit Agreement - Revolving Credit Facility | - | 76.1 | ||||
Other debt | - | 0.4 | ||||
Less current portion | 2,469.7 | 2,756.3 | ||||
123.1 | 83.7 | |||||
Less deferred financing costs | 11.1 | 13.6 | ||||
Long-term debt, net | $2,335.5 | $2,659.0 | ||||
2019 Credit Agreement
pari passu
Senior Notes
Financial Instruments
Interest Rate Derivatives
Foreign Exchange Hedges
Cross Currency Swap
Contractual Obligations
Payments Due by Period | ||||||||||||||||
(in millions) | Total | Less than 1 | 1-3 years | 3-5 years | After 5 years | |||||||||||
year | ||||||||||||||||
Long-term debt, net of deferred financing costs | $2,335.5 | $ | 541.8 | $ | 270.8 | $ 780.3 | $ | 742.6 | ||||||||
Short-term borrowings | 28.4 | 28.4 | 120.7 | 87.6 | 172.1 | |||||||||||
Operating and capital lease obligations | 447.4 | 67.0 | ||||||||||||||
Liabilities held by special purpose entities | 43.3 | 43.3 | 12.0 | 0.5 | 7.4 | |||||||||||
Legal and environmental reserves | 20.2 | 0.3 | ||||||||||||||
Current portion of long-term debt | 123.1 | 123.1 | 5.0 | 3.4 | ||||||||||||
Mandatorily redeemable noncontrolling interests | 8.4 | - | ||||||||||||||
Deferred purchase price of Tholu | 28.1 | $ | 3.3 | $ | 24.8 | $ 871.8 | $ | 922.1 | ||||||||
Total | $3,034.4 | 807.2 | 433.3 | |||||||||||||
Stock Repurchase Program and Other Share Acquisitions
Effects of Inflation
Critical Accounting Policies
Goodwill and Indefinite-Lived Intangibles Impairment Testing.
Goodwill Balance | |||||||||
(in millions) | October 31, | October 31, | |||||||
2020 | 2019 | ||||||||
Rigid Industrial Packaging & Services | $ | 252.0 | $ | 252.9 | |||||
North America | |||||||||
Europe, Middle East and Africa | 331.4 | 313.0 | |||||||
Asia Pacific | 89.0 | 88.6 | |||||||
Tri-Sure | 78.1 | 77.2 | |||||||
Paper Packaging & Services | $ | 767.9 | $ | 786.1 | |||||
Total | 1,518.4 | 1,517.8 | |||||||
Recent Accounting Standards
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk
Financial Instruments
Expected Maturity Date | Fair | ||||||||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | After | Total | |||||||||||
2025 | Value | ||||||||||||||||
2019 Credit Agreement: | $ | 123 | $ | 138 | $ 138 | $ | 48 | $ | 19 | $ | 5 | $ 471 | $471 | ||||
Scheduled amortizations | |||||||||||||||||
Scheduled maturity | $ | - | - | - | 716 | - | $ | 243 | $ 959 | $959 | |||||||
Average interest rate(1) | 2.49% | 2.49% | 2.49% | 2.49% | 2.49% | 2.49% | 2.49% | ||||||||||
Senior Notes due 2021: | $ | 235 | $ | - | - | - | - | - | $ 235 | $242 | |||||||
Scheduled maturity | |||||||||||||||||
Average interest rate | 7.38% | - | - | - | - | - | 7.38% | ||||||||||
Senior Notes due 2027: | - | - | - | - | - | $ | 500 | $ 500 | $524 | ||||||||
Scheduled maturity | |||||||||||||||||
Average interest rate | - | - | - | - | - | 6.50% | 6.50% | ||||||||||
Receivables Facilities: | $ | 310 | - | - | - | - | - | $ 310 | $310 | ||||||||
Scheduled maturity | |||||||||||||||||
Weighted average interest rate | 2.06% | - | - | - | - | - | 2.06% | ||||||||||
Expected Maturity Date | Fair | ||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | After | Total | |||||||||||
2024 | Value | ||||||||||||||||
2019 Credit Agreement: | $ | 84 | $ 131 | $ 148 | $ 148 | $ | 51 | $ | 25 | $ | 587 | $ | 587 | ||||
Scheduled amortizations | |||||||||||||||||
Scheduled maturity | - | - | - | - | $ | 841 | $ | 260 | $ | 1,101 | $ | 1,101 | |||||
Average interest rate(1) | 3.71% | 3.71% | 3.71% | 3.71% | 3.71% | - | 3.71% | ||||||||||
Senior Notes due 2021: | - | $ 222 | - | - | - | - | $ | 222 | $ | 248 | |||||||
Scheduled maturity | |||||||||||||||||
Average interest rate | - | 7.38% | - | - | - | - | 7.38% | ||||||||||
Senior Notes due 2027: | - | - | - | - | - | $ | 500 | $ | 500 | $ | 538 | ||||||
Scheduled maturity | |||||||||||||||||
Average interest rate | - | - | - | - | - | 6.50% | 6.50% | ||||||||||
Receivables Facility: | $ | 352 | - | - | - | - | - | $ | 352 | $ | 352 | ||||||
Scheduled maturity | |||||||||||||||||
Weighted average interest rate | 2.00% | - | - | - | - | - | 2.00% | ||||||||||
Currency Risk
Commodity Price Risk
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
GREIF, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
Year Ended October 31, (in millions, except per share amounts) | 2020 | 2019 | 2018 | |||||||||||
Net sales | $4,515.0 | $4,595.0 | $3,873.8 | |||||||||||
Costs of products sold | 3,600.3 | 3,635.1 | 3,084.9 | |||||||||||
Gross profit | ||||||||||||||
914.7 | 959.9 | 788.9 | ||||||||||||
Selling, general and administrative expenses | 516.0 | 507.4 | 397.2 | |||||||||||
Restructuring charges | 38.7 | 26.1 | 18.6 | |||||||||||
Acquisition and integration related costs | 17.0 | 29.7 | 0.7 | |||||||||||
Non-cash asset impairment charges | 18.5 | 7.8 | 8.3 | |||||||||||
Gain on disposal of properties, plants and equipment, net | (19.2) | (13.9) | (5.6) | |||||||||||
(Gain) loss on disposal of businesses, net | 38.8 | 3.7 | (0.8) | |||||||||||
Operating profit | ||||||||||||||
304.9 | 399.1 | 370.5 | ||||||||||||
Interest expense, net | 115.8 | 112.5 | 51.0 | |||||||||||
Debt extinguishment charges | - | 22.0 | - | |||||||||||
Non-cash pension settlement charges | 0.3 | - | 1.3 | |||||||||||
Other expense, net | 2.7 | 2.6 | 18.4 | |||||||||||
Income before income tax expense and equity earnings of unconsolidated affiliates, net | ||||||||||||||
186.1 | 262.0 | 299.8 | ||||||||||||
Income tax expense | 63.3 | 70.7 | 73.3 | |||||||||||
Equity earnings of unconsolidated affiliates, net of tax | (1.5) | (2.9) | (3.0) | |||||||||||
Net income | ||||||||||||||
124.3 | 194.2 | 229.5 | ||||||||||||
Net income attributable to noncontrolling interests | $ | (15.5) | $ | (23.2) | $ | (20.1) | ||||||||
Net income attributable to Greif, Inc. | 108.8 | 171.0 | 209.4 | |||||||||||
Basic earnings per share attributable to Greif, Inc. common shareholders: | ||||||||||||||
$ | 1.83 | $ | 2.89 | $ | 3.56 | |||||||||
Class A common stock | ||||||||||||||
Class B common stock | $ | 2.74 | $ | 4.33 | $ | 5.33 | ||||||||
Diluted earnings per share attributed to Greif, Inc. common shareholders: | $ | 1.83 | $ | 2.89 | $ | 3.55 | ||||||||
Class A common stock | ||||||||||||||
Class B common stock | $ | 2.74 | $ | 4.33 | $ | 5.33 | ||||||||
GREIF, INC. AND SUBSIDIARY COMPANIES | ||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||
Year Ended October 31, (in millions) | 2020 | 2019 | 2018 | |||||||||||
Net income | $124.3 | $194.2 | $229.5 | |||||||||||
Other comprehensive income (loss), net of tax: | (9.8) | (4.5) | (45.5) | |||||||||||
Foreign currency translation | ||||||||||||||
Derivative financial instruments | (12.0) | (26.1) | 7.7 | |||||||||||
Minimum pension liabilities | 15.1 | (25.3) | 16.3 | |||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||
(6.7) | (55.9) | (21.5) | ||||||||||||
Comprehensive income | ||||||||||||||
117.6 | 138.3 | 208.0 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | 2.6 | 23.9 | 18.1 | |||||||||||
Comprehensive income attributable to Greif, Inc. | $115.0 | $114.4 | $189.9 | |||||||||||
See accompanying Notes to Consolidated Financial Statements.
GREIF, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in millions) | October 31, | October 31, | |||||||
2020 | 2019 | ||||||||
ASSETS | |||||||||
Current assets | $ | 105.9 | $ | 77.3 | |||||
Cash and cash equivalents | |||||||||
Trade accounts receivable, less allowance of $9.4 in 2020 and $6.8 in 2019 | 636.6 | 664.2 | |||||||
Inventories: | 208.4 | 238.4 | |||||||
Raw materials | |||||||||
Work-in-process | 5.4 | 11.3 | |||||||
Finished goods | 79.8 | 108.5 | |||||||
Assets held for sale | 57.0 | 4.1 | |||||||
Assets held by special purpose entities | 50.9 | - | |||||||
Prepaid expenses | 43.0 | 44.0 | |||||||
Other current assets | 115.8 | 101.2 | |||||||
Long-term assets | 1,302.8 | 1,249.0 | |||||||
1,518.4 | 1,517.8 | ||||||||
Goodwill | |||||||||
Other intangible assets, net of amortization | 715.3 | 776.5 | |||||||
Deferred tax assets | 11.3 | 15.9 | |||||||
Assets held by special purpose entities | - | 50.9 | |||||||
Pension assets | 29.5 | 35.4 | |||||||
Operating lease assets | 307.5 | - | |||||||
Other long-term assets | 99.2 | 90.9 | |||||||
Properties, plants and equipment | 2,681.2 | 2,487.4 | |||||||
224.5 | 272.4 | ||||||||
Timber properties, net of depletion | |||||||||
Land | 162.6 | 178.0 | |||||||
Buildings | 524.7 | 531.0 | |||||||
Machinery and equipment | 1,930.6 | 1,866.2 | |||||||
Capital projects in progress | 120.6 | 170.4 | |||||||
Accumulated depreciation | 2,963.0 | 3,018.0 | |||||||
(1,436.1) | (1,327.7) | ||||||||
Total assets | $ | 1,526.9 | $ | 1,690.3 | |||||
5,510.9 | 5,426.7 | ||||||||
See accompanying Notes to Consolidated Financial Statements.
GREIF, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in millions) | October 31, | October 31, | |||||||
2020 | 2019 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Current liabilities | $ | 450.7 | $ | 435.2 | |||||
Accounts payable | |||||||||
Accrued payroll and employee benefits | 122.3 | 142.4 | |||||||
Restructuring reserves | 21.6 | 11.3 | |||||||
Current portion of long-term debt | 123.1 | 83.7 | |||||||
Short-term borrowings | 28.4 | 9.2 | |||||||
Liabilities held by special purpose entities | 43.3 | - | |||||||
Current portion of operating lease liabilities | 52.3 | - | |||||||
Other current liabilities | 158.4 | 143.6 | |||||||
Long-term liabilities | 1,000.1 | 825.4 | |||||||
2,335.5 | 2,659.0 | ||||||||
Long-term debt | |||||||||
Operating lease liabilities | 257.7 | - | |||||||
Deferred tax liabilities | 339.2 | 313.0 | |||||||
Pension liabilities | 137.7 | 177.6 | |||||||
Post-retirement benefit obligations | 11.6 | 12.2 | |||||||
Liabilities held by special purpose entities | - | 43.3 | |||||||
Contingent liabilities and environmental reserves | 20.2 | 18.7 | |||||||
Mandatorily redeemable noncontrolling interests | 8.4 | 8.4 | |||||||
Long-term income tax payable | 27.8 | 27.8 | |||||||
Other long-term liabilities | 152.0 | 128.9 | |||||||
Commitments and Contingencies (Note 11) | 3,290.1 | 3,388.9 | |||||||
20.0 | 21.3 | ||||||||
Redeemable Noncontrolling Interests (Note 18) | |||||||||
Equity | 170.2 | 162.6 | |||||||
Common stock, without par value | |||||||||
Treasury stock, at cost | (134.4) | (134.8) | |||||||
Retained earnings | 1,543.9 | 1,539.0 | |||||||
Accumulated other comprehensive income (loss), net of tax: | (294.9) | (298.0) | |||||||
Foreign currency translation | |||||||||
Derivative financial instruments | (24.7) | (12.7) | |||||||
Minimum pension liabilities | (107.9) | (123.0) | |||||||
Total Greif, Inc. shareholders' equity | |||||||||
1,152.2 | 1,133.1 | ||||||||
Noncontrolling interests | |||||||||
48.5 | 58.0 | ||||||||
Total shareholders' equity | |||||||||
$ | 1,200.7 | $ | 1,191.1 | ||||||
Total liabilities and shareholders' equity | 5,510.9 | 5,426.7 | |||||||
See accompanying Notes to Consolidated Financial Statements.
GREIF, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended October 31, (in millions) | 2020 | 2019 | 2018 | ||||||
Cash flows from operating activities: | $ | 124.3 | $ | 194.2 | $ | 229.5 | |||
Net income | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | 242.5 | 206.1 | 126.9 | ||||||
Depreciation, depletion and amortization | |||||||||
Non-cash asset impairment charges | 18.5 | 7.8 | 8.3 | ||||||
Non-cash pension settlement charges | 0.3 | - | 1.3 | ||||||
Gain on disposals of properties, plants and equipment, net | (19.2) | (13.9) | (5.6) | ||||||
(Gain) loss on disposals of businesses, net | 38.8 | 3.7 | (0.8) | ||||||
Unrealized foreign exchange (gain) loss | (4.2) | 3.0 | (0.7) | ||||||
Deferred income tax (benefit) expense | 16.7 | 2.1 | (44.8) | ||||||
Transition tax (benefit) expense | - | (0.8) | 52.8 | ||||||
Debt extinguishment charges | - | 14.0 | - | ||||||
Non-cash lease expense | 57.4 | - | - | ||||||
Other, net | (3.0) | 4.2 | (2.8) | ||||||
Increase (decrease) in cash from changes in certain assets and liabilities: | (9.1) | 55.1 | (34.0) | ||||||
Trade accounts receivable | |||||||||
Inventories | 27.1 | 33.9 | (24.8) | ||||||
Deferred purchase price on sold receivables | - | (6.9) | 2.1 | ||||||
Accounts payable | 38.1 | (69.9) | 24.3 | ||||||
Restructuring reserves | 10.2 | 6.7 | (0.8) | ||||||
Operating leases | (56.8) | - | - | ||||||
Pension and post-retirement benefit liabilities | (13.3) | (15.3) | (66.8) | ||||||
Other, net | (13.6) | (34.5) | (11.1) | ||||||
Net cash provided by operating activities | 454.7 | 389.5 | 253.0 | ||||||
Cash flows from investing activities: | |||||||||
- | (1,857.9) | - | |||||||
Acquisitions of companies, net of cash acquired | |||||||||
Purchases of properties, plants and equipment | (131.4) | (156.8) | (140.2) | ||||||
Purchases of and investments in timber properties | (5.4) | (5.4) | (8.9) | ||||||
Purchases of equity method investments | (3.6) | - | - | ||||||
Proceeds from the sale of properties, plants, equipment and other assets | 33.4 | 28.7 | 12.5 | ||||||
Proceeds from the sale of businesses | 80.9 | 1.5 | 1.4 | ||||||
Proceeds on insurance recoveries | 0.9 | 0.6 | - | ||||||
Net cash used in investing activities | (25.2) | (1,989.3) | (135.2) | ||||||
Cash flows from financing activities: | |||||||||
1,319.9 | 3,732.3 | 1,020.7 | |||||||
Proceeds from issuance of long-term debt | |||||||||
Payments on long-term debt | (1,578.4) | (2,075.6) | (1,065.4) | ||||||
Proceeds (payments) on short-term borrowings, net | 17.0 | 2.2 | (11.0) | ||||||
Proceeds from trade accounts receivable credit facility | 76.8 | 181.4 | 2.8 | ||||||
Payments on trade accounts receivable credit facility | (122.9) | (89.2) | (2.8) | ||||||
Dividends paid to Greif, Inc. shareholders | (104.3) | (104.0) | (100.0) | ||||||
Dividends paid to noncontrolling interests | (13.4) | (9.2) | (4.6) | ||||||
Payments for debt extinguishment and issuance costs | - | (44.1) | - | ||||||
Purchases of redeemable noncontrolling interest | - | (11.9) | - | ||||||
Cash contribution from noncontrolling interest holder | - | 1.6 | 2.0 | ||||||
Net cash provided (used in) by financing activities | (405.3) | 1,583.5 | (158.3) | ||||||
Effects of exchange rates on cash | 4.4 | (0.6) | (7.6) | ||||||
Net increase (decrease) in cash and cash equivalents | 28.6 | (16.9) | (48.1) | ||||||
Cash and cash equivalents at beginning of year | $ | 77.3 | $ | 94.2 | $ | 142.3 | |||
Cash and cash equivalents at end of year | 105.9 | 77.3 | 94.2 | ||||||
Supplemental information: | |||||||||
Non-cash transactions: | $ | 17.2 | $ | 18.6 | $ | 11.4 | |||
Capital expenditures included in accounts payable | |||||||||
Schedule of interest and income taxes paid: | $ | 119.9 | $ | 161.8 | $ | 58.3 | |||
Cash payments for interest expense | |||||||||
Cash payments for taxes | $ | 65.1 | $ | 71.4 | $ | 65.2 |
See accompanying Notes to Consolidated Financial Statements.
GREIF, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Amounts in millions, except shares amounts in thousands and per share amounts)
As of October 31, 2017
Net income
Other comprehensive income (loss):
- Foreign currency translation
- Derivative financial instruments, net of income tax expense of $3.3 million
- Minimum pension liability adjustment, net of income tax expense of $4.1 million
Comprehensive income
Current period mark to redemption value of redeemable noncontrolling interest
Net income allocated to redeemable noncontrolling interests
Dividends paid to Greif, Inc., Shareholders ($1.70 per Class A share and $2.54 per Class B share)
Dividends paid to noncontrolling interests Restricted stock executives and directors Long-term incentive shares issued
As of October 31, 2018
Net income
Other comprehensive income (loss):
- Foreign currency translation
- Derivative financial instruments, net of income tax expense of $8.6 million
- Minimum pension liability adjustment, net of income tax benefit of
$1.1 million Comprehensive income Adoption of ASU 2016-16
Current period mark to redemption value of redeemable noncontrolling interest
Net income allocated to redeemable noncontrolling interests
Dividends paid to Greif, Inc., Shareholders ($1.76 per Class A share and $2.63 per Class B share)
Dividends paid to noncontrolling interests Acquisition of noncontrolling interest and
other
Restricted stock directors
Long-term incentive shares issued
As of October 31, 2019
Net income
Other comprehensive income (loss):
- Foreign currency translation
- Derivative financial instruments, net of $4.0 million income tax benefit
- Minimum pension liability adjustment, net of $4.8 million income tax expense
Comprehensive income
Current period mark to redemption value of redeemable noncontrolling interest
Net income allocated to redeemable noncontrolling interests
Dividends paid to Greif, Inc., Shareholders ($1.76 and $2.63 per Class A share and Class B share, respectively)
Dividends paid to noncontrolling interests and other
Long-term incentive shares issued
Share based compensation
Restricted stock, executive
Restricted stock, directors
As of October 31, 2020
Accumulated | Greif, | ||||||
Capital Stock | Treasury Stock | Retained | Other | ||||
Comprehensive | Inc. | ||||||
Shares | Amount | Shares | Amount | Earnings | Income (Loss) | Equity | |
47,843 | $144.2 | 28,999 | $(135.6) | $1,360.5 | $(358.2) | ||
$1,010.9 | |||||||
209.4 | 209.4 | ||||||
(43.5) | (43.5) | ||||||
(0.6) | 8.3 | 7.7 | |||||
16.3 | 16.3 | ||||||
189.9 | |||||||
0.5 | 0.5 | ||||||
(100.0) | (100.0) | ||||||
21 | 1.2 | (21) | - | 1.2 | |||
85 | 5.1 | (85) | 0.2 | $1,469.8 | $(377.1) | 5.3 | |
47,949 | $150.5 | 28,893 | $(135.4) | $1,107.8 | |||
171.0 | 171.0 | ||||||
(5.2) | (5.2) | ||||||
(26.1) | (26.1) | ||||||
(25.3) | (25.3) | ||||||
114.4 | |||||||
(2.1) | (2.1) | ||||||
4.9 | 4.9 | ||||||
(104.0) | (104.0) | ||||||
25 | 1.1 | (25) | - | (0.6) | (0.6) | ||
1.1 | |||||||
292 | 11.0 | (292) | 0.6 | $1,539.0 | $(433.7) | 11.6 | |
48,266 | $162.6 | 28,576 | $(134.8) | $1,133.1 | |||
108.8 | 108.8 | ||||||
3.1 | 3.1 | ||||||
(12.0) | (12.0) | ||||||
15.1 | 15.1 | ||||||
115.0 | |||||||
0.4 | 0.4 | ||||||
(104.3) | (104.3) | ||||||
153 | 5.0 | (153) | 0.3 | 5.3 | |||
- | 1.5 | - | - | 1.5 | |||
3 | 0.1 | (3) | - | 0.1 | |||
28 | 1.0 | (28) | 0.1 | $1,543.9 | $(427.5) | 1.1 | |
48,450 | $170.2 | 28,392 | $(134.4) | $1,152.2 |
Noncontrolling | Total | |||
Interests | Equity | |||
$ 36.6 | $1,047.5 | |||
20.1 | 229.5 | |||
(2.0) | (45.5) | |||
7.7 | ||||
16.3 | ||||
208.0 | ||||
0.5 | ||||
(3.7) | (3.7) | |||
(4.6) | (100.0) | |||
(4.6) | ||||
1.2 | ||||
$ 46.4 | 5.3 | |||
$1,154.2 | ||||
23.2 | 194.2 |
0.7 (4.5)
(26.1)
(25.3) | ||
138.3 | ||
(2.1) | ||
4.9 | ||
(2.3) | (2.3) | |
(7.9) | (104.0) | |
(7.9) | ||
(2.1) | (2.7) | |
1.1 | ||
$ 58.0 | 11.6 | |
$1,191.1 | ||
15.5 | 124.3 | |
(12.9) | (9.8) | |
(12.0) | ||
15.1 | ||
117.6 | ||
0.4 | ||
(0.1) | (0.1) | |
(104.3) | ||
(12.0) | (12.0) | |
5.3 | ||
1.5 | ||
0.1 | ||
$ 48.5 | 1.1 | |
$1,200.7 |
See accompanying Notes to Consolidated Financial Statements.
GREIF, INC. AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe Business
Principles of Consolidation and Basis of Presentation
Argentina Currency
Use of Estimates
Cash and Cash Equivalents
Allowance for Doubtful Accounts
Concentration of Credit Risk and Major Customers
Inventory
Net Assets Held for Sale
Goodwill and Indefinite-Lived Intangibles
Other Intangibles
Years | ||
Trade names | 1-15 | |
Customer relationships | 5-25 | |
Non-compete agreements | 1-10 | |
Other intangibles | 1-20 |
Acquisitions
Internal Use Software
Long-Lived Assets
Years | |||
Buildings | 30-40 | ||
Machinery and equipment | 5-15 |
Contingencies
Environmental Cleanup Costs
Self-insurance
Income Taxes
Equity earnings of unconsolidated affiliates, net of tax
Other Comprehensive Income
Restructuring Charges
Pension and Post-retirement Benefits
Stock-Based Compensation Expense
Revenue Recognition
Shipping and Handling Fees and Costs Other Expense, net
Currency Translation
Derivative Financial Instruments
Variable Interest Entities
Fair Value
•
•
•
Newly Adopted Accounting Standards
Recently Issued Accounting Standards
NOTE 2 - ACQUISITIONS AND DIVESTITURES
Caraustar Acquisition
Amounts | Measurement | Amount | |||||||||||||
Recognized as of | Recognized as of | ||||||||||||||
(in millions) | the Acquisition | Period | Acquisition Date | ||||||||||||
Date | Adjustments(1) | (as Adjusted) | |||||||||||||
Fair value of consideration transferred | $ | 1,834.9 | $ | - | 1,834.9 | ||||||||||
Cash consideration | |||||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | 147.0 | - | 147.0 | ||||||||||||
Accounts receivable | |||||||||||||||
Inventories | 103.9 | (4.4) | 99.5 | ||||||||||||
Prepaid and other current assets | 21.5 | (9.3) | 12.2 | ||||||||||||
Intangibles | 717.1 | 8.4 | 725.5 | ||||||||||||
Other long-term assets | 1.3 | 4.3 | 5.6 | ||||||||||||
Properties, plants and equipment | 521.3 | (17.6) | 503.7 | ||||||||||||
Total assets acquired | |||||||||||||||
1,512.1 | (18.6) | 1,493.5 | |||||||||||||
Accounts payable | (99.5) | - | (99.5) | ||||||||||||
Accrued payroll and employee benefits | (42.9) | (7.2) | (50.1) | ||||||||||||
Other current liabilities | (21.8) | 4.5 | (17.3) | ||||||||||||
Long-term deferred tax liability | (185.7) | 37.4 | (148.3) | ||||||||||||
Pension and post-retirement obligations | (67.1) | - | (67.1) | ||||||||||||
Other long-term liabilities | (12.7) | (7.5) | (20.2) | ||||||||||||
Total liabilities assumed | |||||||||||||||
$ | (429.7) | $ | 27.2 | $ | (402.5) | ||||||||||
Total identifiable net assets | 1,082.4 | 8.6 | 1,091.0 | ||||||||||||
Goodwill | $ | 752.5 | $ | (8.6) | $ | 743.9 | |||||||||
Current | Weighted | |||
Preliminary | Average | |||
(in millions) | Purchase Price | Estimated | ||
Allocation | Useful Life | |||
Customer relationships | $708.0 | 15.0 | ||
Trademarks | 15.0 | 3.0 | ||
Other | 2.5 | 4.6 | ||
Total intangible assets | $725.5 |
Divestitures
NOTE 3 - GOODWILL AND OTHER INTANGIBLE ASSETS
Rigid Industrial | Paper | ||||||||||
Packaging & | |||||||||||
(in millions) | Services | Packaging & | Total | ||||||||
(1) | Services | ||||||||||
Balance at October 31, 2018 | $716.5 | $ | 59.5 | $ | 776.0 | ||||||
Goodwill acquired | 22.3 | 726.6 | 748.9 | ||||||||
Goodwill allocated to divestitures and businesses held for sale | - | - | - | ||||||||
Goodwill adjustments | - | - | |||||||||
Currency translation | (7.1) | $ | - | $ | (7.1) | ||||||
Balance at October 31, 2019 | $731.7 | 786.1 | 1,517.8 | ||||||||
Goodwill acquired | - | - | - | ||||||||
Goodwill allocated to divestitures and businesses held for sale | (0.7) | (35.6) | (36.3) | ||||||||
Goodwill adjustments related to acquisitions | 1.1 | 17.4 | 18.5 | ||||||||
Currency translation | 18.4 | $ | - | $ | 18.4 | ||||||
Balance at October 31, 2020 | $750.5 | 767.9 | 1,518.4 | ||||||||
(in millions) October 31, 2020: Indefinite lived:
Trademarks and patents Definite lived:
Customer relationships Trademarks and patents Non-compete agreements OtherTotal
October 31, 2019:
Indefinite lived:
Trademarks and patents Definite lived:
Customer relationships Trademarks and patents Non-compete agreements OtherTotal
Gross
Intangible Accumulated Net Intangible
Assets Amortization Assets
$ | 13.5 | $ | - | $ | 13.5 | ||
$ | 891.8 | $ | 204.9 | $ | 686.9 | ||
27.4 | 14.9 | 12.5 | |||||
1.7 | 1.2 | 0.5 | |||||
$ | 20.9 | $ | 19.0 | $ | 1.9 | ||
955.3 | 240.0 | 715.3 | |||||
$ | 13.1 | $ | - | $ | 13.1 | ||
$ | 890.6 | $ | 150.3 | $ | 740.3 | ||
27.0 | 9.3 | 17.7 | |||||
2.3 | 0.7 | 1.6 | |||||
$ | 21.9 | $ | 18.1 | $ | 3.8 | ||
954.9 | 178.4 | 776.5 | |||||
NOTE 4 - RESTRUCTURING CHARGES
Employee | |||||||||||
(in millions) | Separation | Other Costs | Total | ||||||||
Costs | |||||||||||
Balance at October 31, 2018 | $ | 4.2 | $ | 0.2 | $ | 4.4 | |||||
Costs incurred and charged to expense | |||||||||||
22.5 | 3.6 | 26.1 | |||||||||
Costs paid or otherwise settled | $ | (17.2) | $ | (2.0) | $ | (19.2) | |||||
Balance at October 31, 2019 | 9.5 | 1.8 | 11.3 | ||||||||
Costs incurred and charged to expense | |||||||||||
26.4 | 12.3 | 38.7 | |||||||||
Costs paid or otherwise settled | $ | (18.0) | $ | (10.4) | $ | (28.4) | |||||
Balance at October 31, 2020 | 17.9 | 3.7 | 21.6 | ||||||||
Total Amounts | Amounts | Amounts | |||||||
Incurred During | |||||||||
(in millions) | Expected to be | the year ended | Remaining to be | ||||||
Incurred | October 31, 2020 | Incurred | |||||||
Rigid Industrial Packaging & Services: | $31.6 | $21.0 | 10.6 | ||||||
Employee separation costs | |||||||||
Other restructuring costs | 10.9 | 5.3 | 5.6 | ||||||
Flexible Products & Services: | 42.5 | 26.3 | 16.2 | ||||||
1.9 | 0.9 | 1.0 | |||||||
Employee separation costs | |||||||||
Other restructuring costs | 2.4 | 1.9 | 0.5 | ||||||
Paper Packaging & Services: | 4.3 | 2.8 | 1.5 | ||||||
4.5 | 4.5 | - | |||||||
Employee separation costs | |||||||||
Other restructuring costs | 10.2 | 5.1 | 5.1 | ||||||
Total | 14.7 | 9.6 | 5.1 | ||||||
$61.5 | $38.7 | $22.8 | |||||||
NOTE 5 - CONSOLIDATION OF VARIABLE INTEREST ENTITIES
Significant Nonstrategic Timberland Transactions
Flexible Packaging Joint Venture
(in millions) | October 31, | October 31, | ||||||
2020 | 2019 | |||||||
Cash and cash equivalents | $ | 19.0 | $ | 16.9 | ||||
Trade accounts receivable, less allowance of $0.7 in 2020 and $0.7 in 2019 | 47.5 | 51.2 | ||||||
Inventories | 36.0 | 46.4 | ||||||
Properties, plants and equipment, net | 22.8 | 22.3 | ||||||
Other assets | $ | 20.3 | $ | 29.3 | ||||
Total assets | 145.6 | 166.1 | ||||||
Accounts payable | $ | 29.4 | $ | 28.9 | ||||
Other liabilities | $ | 22.8 | $ | 23.6 | ||||
Total liabilities | 52.2 | 52.5 | ||||||
Paper Packaging Joint Venture
(in millions) | October 31, | |||
2020 | ||||
Trade accounts receivable, less allowance of $0.0 in 2020 | 5.5 | |||
Inventories | 6.3 | |||
Properties, plants and equipment, net | 34.3 | |||
Other assets | $ | 0.6 | ||
Total assets | 46.7 | |||
Accounts payable | 5.2 | |||
Other liabilities | $ | 1.3 | ||
Total liabilities | 6.5 |
Non-United States Accounts Receivable VIE
NOTE 6 - LONG-TERM DEBT
(in millions) | October 31, | October 31, | ||||
2020 | 2019 | |||||
2019 Credit Agreement - Term Loans | $1,429.8 | $1,612.2 | ||||
Senior Notes due 2027 | 495.1 | 494.3 | ||||
Senior Notes due 2021 | 234.8 | 221.7 | ||||
Accounts receivable credit facilities | 310.0 | 351.6 | ||||
2019 Credit Agreement - Revolving Credit Facility | - | 76.1 | ||||
Other debt | - | 0.4 | ||||
Less current portion | 2,469.7 | 2,756.3 | ||||
123.1 | 83.7 | |||||
Less deferred financing costs | 11.1 | 13.6 | ||||
Long-term debt, net | $2,335.5 | $2,659.0 | ||||
2019 Credit Agreement
pari passu
Senior Notes due 2027
Senior Notes due 2021
United States Trade Accounts Receivable Credit Facility
International Trade Accounts Receivable Credit Facilities
Other
NOTE 7 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Recurring Fair Value Measurements
October 31, 2020 | ||||||||||||||||
(in millions) | Fair Value Measurement | Balance Sheet Location | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Interest rate derivatives | $- | $(37.9) | $ | - | $(37.9) | Other current liabilities and other long-term liabilities | ||||||||||
Foreign exchange hedges | - | 1.5 | - | 1.5 | Other current assets | |||||||||||
Foreign exchange hedges | - | (1.6) | - | (1.6) | Other current liabilities | |||||||||||
Insurance annuity | - | - | 21.4 | 21.4 | Other long-term assets | |||||||||||
Cross currency swap | - | 8.9 | - | $ | 8.9 | Other current assets and other long-term assets | ||||||||||
Total | $- | $(29.1) | $21.4 | (7.7) | ||||||||||||
October 31, 2019 | ||||||||||||||||
(in millions) | Fair Value Measurement | Balance Sheet Location | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Interest rate derivatives | $- | $ 1.3 | $ | - | $ | 1.3 | Other long-term assets and other current assets | |||||||||
Interest rate derivatives | - | (25.0) | - | (25.0) | Other long-term liabilities and other current liabilities | |||||||||||
Foreign exchange hedges | - | 0.9 | - | 0.9 | Other current assets | |||||||||||
Foreign exchange hedges | - | (0.2) | - | (0.2) | Other current liabilities | |||||||||||
Insurance annuity | - | - | 20.0 | 20.0 | Other long-term assets | |||||||||||
Cross currency swap | - | 10.6 | - | $ | 10.6 | Other long-term assets and other current assets | ||||||||||
Total | $- | $(12.4) | $20.0 | 7.6 | ||||||||||||
Interest Rate Derivatives
Foreign Exchange Hedges
Cross Currency Swap
Other Financial Instruments
(in millions) | October 31, | October 31, |
2020 | 2019 | |
Senior Notes due 2021 estimated fair value | 242.0 | 248.1 |
Senior Notes due 2027 estimated fair value | 524.4 | 537.9 |
Assets held by special purpose entities estimated fair value | 50.9 | 51.9 |
Pension Plan Assets
•
•
•
•
•
•
Non-Recurring Fair Value Measurements
Quantitative Information about Level 3 Fair Value Measurements | |||||||
(in millions) | Fair Value of | Valuation | Unobservable | Range | |||
Impairment | Technique | Input | of Input Values | ||||
October 31, 2020 | 18.5 | Discounted | Discounted | N/A | |||
Impairment of Long Lived Assets | |||||||
Cash Flows, | Cash Flows, | ||||||
Total | $ | 18.5 | Indicative Bids | Indicative Bids | |||
October 31, 2019 | $ | 2.1 | Indicative Bids | Indicative Bids | N/A | ||
Impairment of Net Assets Held for Sale | |||||||
Impairment of Long Lived Assets | $ | 5.7 | Sales Value | Sales Value | N/A | ||
Total | 7.8 |
Long-Lived Assets
Assets and Liabilities Held for Sale
Goodwill and Indefinite-Lived Intangibles
NOTE 8 - STOCK-BASED COMPENSATION
Long-Term Incentive Plan
Performance Stock Units | |||
Performance period | 11/1/2019 - 10/31/2022 | ||
Valuation date stock price | $40.59 | ||
Risk-free rate | 0.10% - 1.59% | ||
Estimated volatility | 46.4% |
2005 Directors Plan
2001 Plan
NOTE 9 - INCOME TAXES
(in millions) | Year Ended October 31, | ||||||||
2020 | 2019 | 2018 | |||||||
Current | $ (9.7) | $26.6 | $ | 74.0 | |||||
Federal | |||||||||
State and local | 3.3 | 6.1 | 8.0 | ||||||
Non-U.S. | 53.0 | 35.9 | 36.1 | ||||||
Deferred | 46.6 | 68.6 | 118.1 | ||||||
7.9 | 2.1 | (45.2) | |||||||
Federal | |||||||||
State and local | 10.2 | 0.9 | 0.8 | ||||||
Non-U.S. | (1.4) | (0.9) | (0.4) | ||||||
16.7 | 2.1 | $ | (44.8) | ||||||
$63.3 | $70.7 | 73.3 | |||||||
Year Ended October 31, | |||||||||
2020 | 2019 | 2018 | |||||||
Federal statutory rate | 21.00% | 23.33% | |||||||
21.00% | |||||||||
Impact of foreign tax rate differential | 0.49% | 0.10% | (0.57)% | ||||||
State and local taxes, net of federal tax benefit | 5.71% | 1.99% | 2.38% | ||||||
Net impact of changes in valuation allowances | (15.23)% | 2.41% | 5.65% | ||||||
Non-deductiblewrite-off and impairment of goodwill and other intangible assets | 4.02% | 0.29% | 0.06% | ||||||
Unrecognized tax benefits | (0.75)% | (0.76)% | 3.41% | ||||||
Permanent book-tax differences | 16.56% | (0.87)% | (4.03)% | ||||||
Withholding taxes | 5.28% | 2.43% | 1.84% | ||||||
Tax Reform Act(1) | -% | (0.19)% | (7.31)% | ||||||
Other items, net | (3.07)% | 0.58% | (0.33)% | ||||||
26.98% | 24.43% | ||||||||
34.01% | |||||||||
(in millions) | 2020 | 2019 | ||
Deferred Tax Assets | $ 179.3 | $ 206.9 | ||
Net operating loss and other carryforwards | ||||
Foreign tax credits | - | 21.5 | ||
Pension liabilities | 12.9 | 24.1 | ||
Incentive liabilities | 8.2 | 12.0 | ||
Workers compensation accruals | 10.0 | 12.1 | ||
Inventories | 7.8 | 6.7 | ||
Operating lease liabilities | 76.9 | - | ||
State income taxes | 10.2 | 9.4 | ||
Other reserves | 21.0 | 17.0 | ||
Deferred compensation | 2.4 | 2.3 | ||
Other | 28.5 | 24.2 | ||
Total Deferred Tax Assets | ||||
357.2 | 336.2 | |||
Valuation allowance | (146.4) | (175.0) | ||
Net Deferred Tax Assets | $ 210.8 | $ 161.2 | ||
Deferred Tax Liabilities | ||||
$ 158.1 | $ 152.7 | |||
Properties, plants and equipment | ||||
Operating lease assets | 76.9 | - | ||
Timberland transactions | 74.2 | 74.2 | ||
Goodwill and other intangible assets | 200.2 | 207.5 | ||
Other | 29.3 | 23.9 | ||
Total Deferred Tax Liabilities | ||||
538.7 | 458.3 | |||
Net Deferred Tax Liability | $ 327.9 | $ 297.1 | ||
(in millions) | 2020 | 2019 | 2018 | |||
Balance of unrecognized tax benefit at November 1 | $ 38.8 | $36.2 | $26.8 | |||
Increases in tax positions for prior years | 10.1 | 5.1 | 7.8 | |||
Decreases in tax positions for prior years | (10.5) | (0.7) | (1.4) | |||
Increases in tax positions for current years | 2.6 | 4.3 | 8.0 | |||
Settlements with taxing authorities | - | (3.6) | - | |||
Lapse in statute of limitations | (5.5) | (2.0) | (3.6) | |||
Currency translation | 0.5 | (0.5) | (1.4) | |||
Balance at October 31 | $ 36.0 | $38.8 | $36.2 | |||
NOTE 10 - POST-RETIREMENT BENEFIT PLANS
Defined Benefit Pension Plans
October 31, 2020 | Consolidated | United States | Germany | United Kingdom | Netherlands | Other | |
International | |||||||
Active participants | 2,226 | 2,127 | 36 | - | 63 | - | |
Vested former employees and deferred | 3,385 | 2,788 | 82 | 366 | 105 | 44 | |
members | |||||||
Retirees and beneficiaries | 6,526 | 5,138 | 267 | 662 | 405 | 54 | |
October 31, 2019 | Consolidated | United States | Germany | United Kingdom | Netherlands | Other | |
International | |||||||
Active participants | 2,455 | 2,351 | 41 | - | 63 | - | |
Vested former employees and deferred | 5,236 | 4,643 | 86 | 366 | 97 | 44 | |
members | |||||||
Retirees and beneficiaries | 6,462 | 5,074 | 258 | 662 | 414 | 54 |
As of October 31, | 2020 | 2019 | ||
Discount rate | 2.48% | 2.74% | ||
Rate of compensation increase | 2.91% | 2.85% | ||
For the year ended October 31, | 2020 | 2019 | 2018 | |
Discount rate | 2.74% | 3.48% | 3.01% | |
Expected Return on plan assets | 4.64% | 4.12% | 4.53% | |
Rate of compensation increase | 2.85% | 2.85% | 2.85% |
Benefit Obligations
For the year ended October 31, 2020 | Consolidated | United | Germany | United | Netherlands | Other |
(in millions) | States | Kingdom | International | |||
Service cost | $ 12.8 | $ 11.5 | $0.4 | $ 0.5 | $ 0.3 | $ 0.1 |
Interest cost | 25.9 | 22.4 | 0.2 | 2.7 | 0.3 | 0.3 |
Expected return on plan assets | (37.9) | (31.4) | - | (5.2) | (0.7) | (0.6) |
Amortization of prior service (benefit) cost | (0.1) | (0.1) | - | 0.1 | (0.1) | - |
Recognized net actuarial loss | 13.2 | 10.2 | 1.8 | 1.1 | - | 0.1 |
Special Events | 0.3 | (0.1) | - | 0.4 | - | - |
Settlement | ||||||
Net periodic pension (benefit) cost | $ 14.2 | $ 12.5 | $2.4 | $(0.4) | $(0.2) | $(0.1) |
For the year ended October 31, 2019 | Consolidated | United | Germany | United | Netherlands | Other |
(in millions) | States | Kingdom | International | |||
Service cost | $ 14.1 | $ 12.7 | $0.3 | $ 0.5 | $ 0.5 | $ 0.1 |
Interest cost | 31.0 | 25.4 | 0.5 | 3.9 | 0.9 | 0.3 |
Expected return on plan assets | (38.8) | (30.5) | - | (6.2) | (1.3) | (0.8) |
Amortization of prior service (benefit) cost | (0.1) | (0.1) | - | 0.1 | (0.1) | - |
Recognized net actuarial loss | 7.1 | 5.0 | 0.9 | 1.2 | - | - |
Net periodic pension (benefit) cost | $ 13.3 | $ 12.5 | $1.7 | $(0.5) | $ - | $(0.4) |
For the year ended October 31, 2018 | Consolidated | United | Germany | United | Netherlands | Other |
(in millions) | States | Kingdom | International | |||
Service cost | $ 12.3 | $ 10.8 | $0.4 | $ 0.5 | $ 0.5 | $ 0.1 |
Interest cost | 18.9 | 13.2 | 0.5 | 4.0 | 0.9 | 0.3 |
Expected return on plan assets | (25.5) | (16.8) | - | (6.5) | (1.4) | (0.8) |
Amortization of prior service (benefit) cost | (0.2) | (0.1) | - | - | (0.1) | - |
Recognized net actuarial loss | 11.0 | 8.1 | 1.1 | 1.7 | - | 0.1 |
Other Adjustments | 2.8 | - | - | 2.8 | - | - |
Special Events | 1.3 | - | - | 1.3 | - | - |
Settlement | ||||||
Net periodic pension (benefit) cost | $ 20.6 | $ 15.2 | $2.0 | $ 3.8 | $(0.1) | $(0.3) |
For the year ended October 31, 2020 | Consolidated | United | Germany | United | Netherlands | Other | |||
(in millions) | States | Kingdom | International | ||||||
Change in benefit obligation: | $1,158.7 | $831.0 | $44.1 | $180.8 | $91.3 | $11.5 | |||
Benefit obligation at beginning of year | |||||||||
Service cost | 12.8 | 11.5 | 0.4 | 0.5 | 0.3 | 0.1 | |||
Interest cost | 25.9 | 22.4 | 0.2 | 2.7 | 0.3 | 0.3 | |||
Plan participant contributions | 0.2 | - | - | - | 0.2 | - | |||
Expenses paid from assets | (3.4) | (2.6) | - | (0.9) | 0.2 | (0.1) | |||
Actuarial loss (gain) | 17.4 | 14.6 | (3.5) | 7.6 | (1.6) | 0.3 | |||
Foreign currency effect | 8.6 | - | 2.3 | 1.7 | 5.0 | (0.4) | |||
Benefits paid | (109.9) | (94.9) | (1.4) | (7.8) | (4.8) | (1.0) | |||
Benefit obligation at end of year | $1,110.3 | $782.0 | $42.1 | $184.6 | $90.9 | $10.7 | |||
For the year ended October 31, 2019 | Consolidated | United | Germany | United | Netherlands | Other | |||
(in millions) | States | Kingdom | International | ||||||
Change in benefit obligation: | $ | 662.4 | $351.9 | $38.1 | $176.3 | $85.4 | $10.7 | ||
Benefit obligation at beginning of year | |||||||||
Service cost | 14.1 | 12.7 | 0.3 | 0.5 | 0.5 | 0.1 | |||
Interest cost | 31.0 | 25.4 | 0.5 | 3.9 | 0.9 | 0.3 | |||
Plan participant contributions | 0.2 | - | - | - | 0.2 | - | |||
Expenses paid from assets | (5.9) | (5.1) | - | (0.7) | - | (0.1) | |||
Actuarial loss | 131.0 | 105.5 | 7.4 | 6.0 | 11.0 | 1.1 | |||
Foreign currency effect | (1.8) | - | (0.9) | 1.1 | (1.9) | (0.1) | |||
Benefits paid | (61.6) | (48.7) | (1.3) | (6.3) | (4.8) | (0.5) | |||
Acquisitions | 389.3 | 389.3 | - | - | - | - | |||
Benefit obligation at end of year | $1,158.7 | $831.0 | $44.1 | $180.8 | $91.3 | $11.5 | |||
Actuarial value of benefit obligations | Consolidated | United | Germany | United | Netherlands | Other | |||
(in millions) | States | Kingdom | International | ||||||
October 31, 2020 | $1,110.3 | $782.0 | $42.1 | $184.6 | $90.9 | $10.7 | |||
Projected benefit obligation | |||||||||
Accumulated benefit obligation | 1,086.1 | 760.3 | 41.0 | 184.6 | 89.3 | 10.9 | |||
Plan assets | 1,002.1 | 687.0 | - | 210.0 | 92.0 | 13.1 | |||
October 31, 2019 | $1,158.7 | $831.0 | $44.1 | $180.8 | $91.3 | $11.5 | |||
Projected benefit obligation | |||||||||
Accumulated benefit obligation | 1,131.3 | 806.8 | 42.6 | 180.8 | 89.6 | 11.5 | |||
Plan assets | 1,017.0 | 698.7 | - | 209.8 | 94.5 | 14.0 | |||
Plans with ABO in excess of Plan assets | |||||||||
October 31, 2020 | $ | 812.2 | $760.3 | $41.0 | $ | - | $ | - | $10.9 |
Accumulated benefit obligation | |||||||||
Plan assets | 697.2 | 687.2 | - | - | - | 10.0 | |||
October 31, 2019 | $ | 860.9 | $806.8 | $42.6 | $ | - | $ | - | $11.5 |
Accumulated benefit obligation | |||||||||
Plan assets | 709.7 | 698.9 | - | - | - | 10.8 |
(in millions) | Expected Benefit |
Payments | |
Year(s) | $ 63.3 |
2021 | |
2022 | 62.8 |
2023 | 64.7 |
2024 | 65.5 |
2025 | 63.6 |
2026-2030 | 313.0 |
Plan assets
Asset Category | 2021 Target | 2020 Target | 2020 Actual | |
Equity securities | 21% | 29% | 22% | |
Debt securities | 63% | 55% | 61% | |
Other | 16% | 16% | 17% | |
Total | 100% | 100% | 100% |
For the year ended October 31, 2020 | Consolidated | United | Germany | United | Netherlands | Other |
(in millions) | States | Kingdom | International | |||
Change in plan assets: | $1,017.0 | $698.7 | $- | $209.8 | $94.5 | $14.0 |
Fair value of plan assets at beginning of year | ||||||
Actual return on plan assets | 65.4 | 62.2 | - | 4.6 | (2.1) | 0.7 |
Expenses paid | (3.4) | (2.6) | - | (0.9) | 0.2 | (0.1) |
Plan participant contributions | 0.2 | - | - | - | 0.2 | - |
Foreign currency impact | 6.4 | - | - | 1.9 | 5.0 | (0.5) |
Employer contributions | 22.4 | 21.0 | - | 2.4 | (1.0) | - |
Benefits paid out of plan | (105.9) | (92.3) | - | (7.8) | (4.8) | (1.0) |
Fair value of plan assets at end of year | $1,002.1 | $687.0 | $- | $210.0 | $92.0 | $13.1 |
For the year ended October 31, 2019 | Consolidated | United | Germany | United | Netherlands | Other |
(in millions) | States | Kingdom | International | |||
Change in plan assets: | $ 594.8 | $311.9 | $- | $178.7 | $90.6 | $13.6 |
Fair value of plan assets at beginning of year | ||||||
Actual return on plan assets | 140.1 | 93.4 | - | 35.2 | 10.7 | 0.8 |
Expenses paid | (5.9) | (5.1) | - | (0.7) | - | (0.1) |
Plan participant contributions | 0.2 | - | - | - | 0.2 | - |
Foreign currency impact | (0.7) | - | - | 1.3 | (2.1) | 0.1 |
Employer contributions | 22.7 | 21.0 | - | 1.6 | - | 0.1 |
Benefits paid out of plan | (57.8) | (46.1) | - | (6.3) | (4.9) | (0.5) |
Acquisitions | 323.6 | 323.6 | - | - | - | - |
Fair value of plan assets at end of year | $1,017.0 | $698.7 | $- | $209.8 | $94.5 | $14.0 |
As of October 31, 2020 (in millions) | Fair Value Measurement | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Asset Category | $ 9.2 | $122.4 | $- | $ | 131.6 | |||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||
Common stock | 9.3 | - | - | 9.3 | ||||||||||||||||||||||
Cash | 14.8 | - | - | 14.8 | ||||||||||||||||||||||
Corporate bonds | - | 250.3 | - | 250.3 | ||||||||||||||||||||||
Government bonds | - | 34.2 | - | 34.2 | ||||||||||||||||||||||
Other assets | - | 0.7 | - | $ | 0.7 | |||||||||||||||||||||
Total Assets in the Fair Value Hierarchy | $33.3 | $407.6 | $- | 440.9 | ||||||||||||||||||||||
Investments Measured at Net Asset Value | 0.5 | |||||||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||
Insurance contracts | 132.9 | |||||||||||||||||||||||||
Common stock funds | 215.4 | |||||||||||||||||||||||||
Corporate bond funds | 203.1 | |||||||||||||||||||||||||
Government bond funds | $33.3 | $407.6 | $- | 9.3 | ||||||||||||||||||||||
Investments at Fair Value | $1,002.1 | |||||||||||||||||||||||||
As of October 31, 2019 (in millions) | Fair Value Measurement | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Asset Category | $25.6 | $137.4 | $- | $ | 163.0 | |||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||
Common stock | 27.6 | - | - | 27.6 | ||||||||||||||||||||||
Cash | 6.5 | - | - | 6.5 | ||||||||||||||||||||||
Corporate bonds | - | 134.8 | - | 134.8 | ||||||||||||||||||||||
Government bonds | - | 39.8 | - | 39.8 | ||||||||||||||||||||||
Other assets | - | 0.2 | - | $ | 0.2 | |||||||||||||||||||||
Total Assets in the Fair Value Hierarchy | $59.7 | $312.2 | $- | 371.9 | ||||||||||||||||||||||
Investments Measured at Net Asset Value | 358.5 | |||||||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||
Insurance contracts | 130.2 | |||||||||||||||||||||||||
Common stock funds | 81.5 | |||||||||||||||||||||||||
Corporate bond funds | 70.8 | |||||||||||||||||||||||||
Government bond funds | $59.7 | $312.2 | $- | 4.1 | ||||||||||||||||||||||
Investments at Fair Value | $1,017.0 | |||||||||||||||||||||||||
As of October 31, 2020 | ||||||||||||||||||||||||||
Consolidated | United | Germany | United | Netherlands | Other | |||||||||||||||||||||
(in millions) | States | Kingdom | International | |||||||||||||||||||||||
Unrecognized net actuarial loss | $ | 149.7 | $ | 94.1 | $ | 14.8 | $32.4 | $ 4.5 | $ 3.9 | |||||||||||||||||
Unrecognized prior service cost (credit) | $ | 0.9 | $ | (0.8) | $ | - | 3.2 | (1.5) | - | |||||||||||||||||
Accumulated other comprehensive loss (gain) - Pre-tax | 150.6 | 93.3 | 14.8 | $35.6 | $ 3.0 | $ 3.9 | ||||||||||||||||||||
Amounts recognized in the Consolidated Balance | ||||||||||||||||||||||||||
Sheets consist of: | $ | 29.5 | $ | - | $ | - | $25.3 | $ 1.1 | $ 3.1 | |||||||||||||||||
Prepaid benefit cost | ||||||||||||||||||||||||||
Accrued benefit liability | (137.7) | (94.7) | (42.1) | - | - | (0.9) | ||||||||||||||||||||
Accumulated other comprehensive loss | $ | 150.6 | $ | 93.3 | $ | 14.8 | 35.6 | 3.0 | 3.9 | |||||||||||||||||
Net amount recognized | 42.4 | (1.4) | (27.3) | $60.9 | $ 4.1 | $ 6.1 | ||||||||||||||||||||
As of October 31, 2019 | Consolidated | United | Germany | United | Netherlands | Other | ||||||||||||||||||
(in millions) | States | Kingdom | International | |||||||||||||||||||||
Unrecognized net actuarial loss | $ | 171.8 | $ | 120.5 | $ | 19.2 | $25.3 | $ 3.1 | $ 3.7 | |||||||||||||||
Unrecognized prior service cost (credit) | $ | 0.8 | $ | (1.0) | $ | - | 3.3 | (1.5) | - | |||||||||||||||
Accumulated other comprehensive loss (gain) - Pre-tax | 172.6 | 119.5 | 19.2 | $28.6 | $ 1.6 | $ 3.7 | ||||||||||||||||||
Amounts recognized in the Consolidated Balance | ||||||||||||||||||||||||
Sheets consist of: | $ | 35.4 | $ | - | $ | - | $29.0 | $ 3.2 | $ 3.2 | |||||||||||||||
Prepaid benefit cost | ||||||||||||||||||||||||
Accrued benefit liability | (177.0) | (132.2) | (44.1) | - | - | (0.7) | ||||||||||||||||||
Accumulated other comprehensive loss (gain) | $ | 172.6 | $ | 119.5 | $ | 19.2 | 28.6 | 1.6 | 3.7 | |||||||||||||||
Net amount recognized | 31.0 | (12.7) | (24.9) | $57.6 | $ 4.8 | $ 6.2 | ||||||||||||||||||
(in millions) | October 31, | October 31, | ||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||
Accumulated other comprehensive loss at beginning of year | $172.6 | $ 150.4 | ||||||||||||||||||||||
Increase or (decrease) in accumulated other comprehensive loss | 0.1 | 0.1 | ||||||||||||||||||||||
Net prior service benefit amortized | ||||||||||||||||||||||||
Net loss amortized | (13.2) | (7.1) | ||||||||||||||||||||||
Loss recognized due to settlement | (0.3) | - | ||||||||||||||||||||||
Liability loss (gain) | 17.4 | 131.0 | ||||||||||||||||||||||
Asset (gain) loss | (27.4) | (101.3) | ||||||||||||||||||||||
Increase (decrease) in accumulated other comprehensive loss | $ (23.4) | $ 22.7 | ||||||||||||||||||||||
Foreign currency impact | 1.4 | (0.5) | ||||||||||||||||||||||
Accumulated other comprehensive loss at year end | $150.6 | $ 172.6 | ||||||||||||||||||||||
Supplemental Employee Retirement Plan
Defined contribution plans
Post-retirement Health Care and Life Insurance Benefits
NOTE 11 - CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES
Litigation-related Liabilities
Environmental Reserves
NOTE 12 - EARNINGS PER SHARE
Basic | = | 40% * Average Class A Shares Outstanding | * | Undistributed Net Income | + Class A Dividends Per Share | |
Class A EPS | 40% * Average Class A Shares Outstanding + | Average Class A Shares Outstanding | ||||
Diluted | 60% * Average Class B Shares Outstanding | * | Undistributed Net Income | + Class A Dividends Per Share | ||
= | 40% * Average Class A Shares Outstanding | |||||
Class A EPS | 40% * Average Class A Shares Outstanding + | Average Diluted Class A Shares Outstanding | ||||
Basic | 60% * Average Class B Shares Outstanding | * | Undistributed Net Income | + Class B Dividends Per Share | ||
= | 60% * Average Class B Shares Outstanding | |||||
Class B EPS | 40% * Average Class A Shares Outstanding + | Average Class B Shares Outstanding | ||||
60% * Average Class B Shares Outstanding | ||||||
(in millions, except per share data) | Year Ended October 31, | ||||||
2020 | 2019 | 2018 | |||||
Numerator | |||||||
Numerator for basic and diluted EPS - | $ | 108.8 | $ | 171.0 | $ | 209.4 | |
Net income attributable to Greif | |||||||
Cash dividends | $ | (104.3) | $ | (104.0) | $ | (100.0) | |
Undistributed net income (loss) attributable to Greif, Inc. | 4.5 | 67.0 | 109.4 | ||||
Denominator | |||||||
Denominator for basic EPS - | 26.4 | 26.2 | 25.9 | ||||
Class A common stock | |||||||
Class B common stock | 22.0 | 22.0 | 22.0 | ||||
Denominator for diluted EPS - | 26.4 | 26.2 | 26.0 | ||||
Class A common stock | |||||||
Class B common stock | 22.0 | 22.0 | 22.0 | ||||
EPS Basic | $ | 1.83 | $ | 2.89 | $ | 3.56 | |
Class A common stock | |||||||
Class B common stock | $ | 2.74 | $ | 4.33 | $ | 5.33 | |
EPS Diluted | $ | 1.83 | $ | 2.89 | $ | 3.55 | |
Class A common stock | |||||||
Class B common stock | $ | 2.74 | $ | 4.33 | $ | 5.33 |
Common Stock Repurchases
October 31, 2020: | Authorized Shares | Issued Shares | Outstanding Shares | Treasury Shares |
128,000,000 | 42,281,920 | 26,441,986 | 15,839,934 | |
Class A common stock | ||||
Class B common stock | 69,120,000 | 34,560,000 | 22,007,725 | 12,552,275 |
October 31, 2019: | 128,000,000 | 42,281,920 | 26,257,943 | 16,023,977 |
Class A common stock | ||||
Class B common stock | 69,120,000 | 34,560,000 | 22,007,725 | 12,552,275 |
Year Ended October 31, | ||||||
2020 | 2019 | 2018 | ||||
Class A Common Stock: | 26,382,838 | 26,189,445 | 25,915,887 | |||
Basic shares | ||||||
Assumed conversion of stock options and unvested shares | 7,805 | 25,666 | 49,969 | |||
Diluted shares | 26,390,643 | 26,215,111 | 25,965,856 | |||
Class B Common Stock: | ||||||
22,007,725 | 22,007,725 | 22,007,725 | ||||
Basic and diluted shares | ||||||
NOTE 13 - EQUITY EARNINGS OF UNCONSOLIDATED AFFILIATES, NET OF TAXCenturion Container LLC
NOTE 14 - LEASES
(in millions) | Balance Sheet Classification |
Lease Assets | Operating lease assets |
Operating lease assets | |
Finance lease assets | Other long-term assets |
Total lease assets | |
Lease Liabilities | Current portion of operating lease liabilities |
Current operating lease liabilities | |
Current finance lease liabilities | Other current liabilities |
Total current lease liabilities | |
Non-current operating lease liabilities | Operating lease liabilities |
Non-current finance lease liabilities | Other long-term liabilities |
Total non-current lease liabilities | |
Total lease liabilities |
(in millions) Operating lease cost Finance lease cost Variable lease cost*
Total lease cost
October 31,
2020
$307.5 4.6 $312.1
$ 52.3 1.7 54.0
257.7
2.9
260.6 $314.6
Year EndedOctober 31, 2020 $67.0 1.4
25.4 $93.8
(in millions) | Operating | Finance | Total expected | |
Leases | Leases | payments | ||
2021 | $ | 65.6 | $ 1.4 | $ 67.0 |
2022 | 63.1 | 1.4 | 64.5 | |
2023 | 55.1 | 1.1 | 56.2 | |
2024 | 47.4 | 0.9 | 48.3 | |
2025 | 38.8 | 0.5 | 39.3 | |
Thereafter | $ | 171.8 | 0.3 | 172.1 |
Total lease payments | 441.8 | $ 5.6 | $ 447.4 | |
Less: Interest | $ | (131.8) | (1.0) | (132.8) |
Lease liabilities | 310.0 | $ 4.6 | $ 314.6 | |
Weighted-average remaining lease term (years): | 11.1 | |||
Operating leases | ||||
Finance leases | 3.6 | |||
Weighted-average discount rate: | 3.63% | |||
Operating leases | ||||
Finance leases | 3.32% | |||
(in millions) | October 31, | |||
2020 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | $69.4 | |||
Operating cash flows used for operating leases | ||||
Financing cash flows used for finance leases | 1.3 | |||
Leased assets obtained in exchange for new operating lease liabilities | 67.4 | |||
Leased assets obtained in exchange for new finance lease liabilities | 0.4 |
(in millions) | Year Ended October 31, | ||||
2019 | 2018 | 2017 | |||
Rent Expense | $86.2 | $47.1 | $41.0 | ||
(in millions) | Operating Leases | Capital Leases | |||
Year(s): | $ 64.8 | $1.8 | |||
2021 | |||||
2022 | 57.0 | 1.6 | |||
2023 | 48.7 | 1.3 | |||
2024 | 40.1 | 1.0 | |||
2025 | 31.6 | 0.6 | |||
Thereafter | 117.5 | 0.3 | |||
Total | $359.7 | $6.6 |
NOTE 15 - BUSINESS SEGMENT INFORMATION
•
•
•
•
Year Ended October 31, 2020 | |||||
(in millions) | United States | Europe, Middle | Asia Pacific and | Total | |
East and Africa | Other Americas | ||||
Rigid Industrial Packaging & Services | $ 814.0 | $1,074.3 | $410.6 | $2,298.9 | |
Paper Packaging & Services | 1,888.4 | - | 28.5 | 1,916.9 |
Year Ended October 31, 2020 | ||||||||||||||||||||||
(in millions) | United States | Europe, Middle | Asia Pacific and | Total | ||||||||||||||||||
East and Africa | Other Americas | |||||||||||||||||||||
Flexible Products & Services | 28.2 | 214.5 | 30.2 | 272.9 | ||||||||||||||||||
Land Management | 26.3 | - | - | 26.3 | ||||||||||||||||||
Total net sales | $2,756.9 | $1,288.8 | $469.3 | $4,515.0 | ||||||||||||||||||
Year Ended October 31, 2019 | ||||||||||||||||||||||
(in millions) | United States | Europe, Middle | Asia Pacific and | Total | ||||||||||||||||||
East and Africa | Other Americas | |||||||||||||||||||||
Rigid Industrial Packaging & Services | $ 906.3 | $1,118.0 | $466.3 | $2,490.6 | ||||||||||||||||||
Paper Packaging & Services | 1,758.8 | - | 21.2 | 1,780.0 | ||||||||||||||||||
Flexible Products & Services | 35.7 | 232.4 | 29.4 | 297.5 | ||||||||||||||||||
Land Management | 26.9 | - | - | 26.9 | ||||||||||||||||||
Total net sales | $2,727.7 | $1,350.4 | $516.9 | $4,595.0 | ||||||||||||||||||
(in millions) | 2020 | 2019 | 2018 | |||||||||||||||||||
Operating profit: | 209.9 | 179.6 | 183.2 | |||||||||||||||||||
Rigid Industrial Packaging & Services | ||||||||||||||||||||||
Paper Packaging & Services | 71.0 | 184.3 | 158.3 | |||||||||||||||||||
Flexible Products & Services | 15.5 | 25.3 | 19.4 | |||||||||||||||||||
Land Management | 8.5 | 9.9 | 9.6 | |||||||||||||||||||
Total operating profit | $304.9 | $399.1 | $370.5 | |||||||||||||||||||
Depreciation, depletion and amortization expense: | ||||||||||||||||||||||
$ 78.9 | $ 76.3 | $ 81.2 | ||||||||||||||||||||
Rigid Industrial Packaging & Services | ||||||||||||||||||||||
Paper Packaging & Services | 153.5 | 119.3 | 34.2 | |||||||||||||||||||
Flexible Products & Services | 5.6 | 6.2 | 6.9 | |||||||||||||||||||
Land Management | 4.5 | 4.3 | 4.6 | |||||||||||||||||||
Total depreciation, depletion and amortization expense | $242.5 | $206.1 | $126.9 | |||||||||||||||||||
Capital expenditures: | ||||||||||||||||||||||
$ 48.3 | $ 53.6 | $ 76.8 | ||||||||||||||||||||
Rigid Industrial Packaging & Services | ||||||||||||||||||||||
Paper Packaging & Services | 61.4 | 81.2 | 39.2 | |||||||||||||||||||
Flexible Products & Services | 7.5 | 4.8 | 3.7 | |||||||||||||||||||
Land Management | 0.2 | 0.2 | 0.4 | |||||||||||||||||||
Total segment | ||||||||||||||||||||||
117.4 | 139.8 | 120.1 | ||||||||||||||||||||
Corporate and other | 12.6 | 17.1 | 19.0 | |||||||||||||||||||
Total capital expenditures | $130.0 | $156.9 | $139.1 | |||||||||||||||||||
(in millions) | October 31, | October 31, | October 31, | |||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||
Assets: | $2,189.7 | $2,006.3 | $1,963.0 | |||||||||||||||||||
Rigid Industrial Packaging & Services | ||||||||||||||||||||||
Paper Packaging & Services | 2,524.3 | 2,686.3 | 474.3 | |||||||||||||||||||
Flexible Products & Services | 148.8 | 148.2 | 153.9 | |||||||||||||||||||
Land Management | 348.6 | 348.7 | 347.2 | |||||||||||||||||||
Total segment | ||||||||||||||||||||||
5,211.4 | 5,189.5 | 2,938.4 | ||||||||||||||||||||
Corporate and other | 299.5 | 237.2 | 256.4 | |||||||||||||||||||
Total assets | $5,510.9 | $5,426.7 | $3,194.8 | |||||||||||||||||||
(in millions) | October 31, | October 31, | October 31, | ||||||||
2020 | 2019 | 2018 | |||||||||
Long lived assets, net*: | $1,345.8 | $1,295.8 | $ | 796.3 | |||||||
United States | |||||||||||
Europe, Middle East, and Africa | 377.6 | 277.1 | 276.9 | ||||||||
Asia Pacific and other Americas | 111.0 | 117.4 | $ | 118.7 | |||||||
Total properties, plants and equipment, net | $1,834.4 | $1,690.3 | 1,191.9 | ||||||||
NOTE 16 - COMPREHENSIVE INCOME (LOSS)
Foreign | Derivative | Minimum | Accumulated | |||||||||||||||
Pension | Other | |||||||||||||||||
(in millions) | Currency | Financial | Liability | Comprehensive | ||||||||||||||
Translation | Instruments | Adjustment | Loss | |||||||||||||||
Balance as of October 31, 2019 | $(298.0) | $(12.7) | $(123.0) | $(433.7) | ||||||||||||||
Other Comprehensive Income (Loss) | 3.1 | (12.0) | 15.1 | 6.2 | ||||||||||||||
Balance as of October 31, 2020 | $(294.9) | $(24.7) | $(107.9) | $(427.5) | ||||||||||||||
Foreign | Derivative | Minimum | Accumulated | |||||||||||||||
Pension | Other | |||||||||||||||||
(in millions) | Currency | Financial | Liability | Comprehensive | ||||||||||||||
Translation | Instruments | Adjustment | Loss | |||||||||||||||
Balance as of October 31, 2018 | $(292.8) | $ 13.4 | $ | (97.7) | $(377.1) | |||||||||||||
Other Comprehensive Loss | (5.2) | (26.1) | (25.3) | (56.6) | ||||||||||||||
Balance as of October 31, 2019 | $(298.0) | $(12.7) | $(123.0) | $(433.7) | ||||||||||||||
NOTE 17 - QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||
(in millions, except per share amounts) | 2020 | |||||||||||||||||
January 31, | April 30, | July 31, | October 31, | |||||||||||||||
Net sales | $ | 1,112.4 | $ | 1,158.3 | $ | 1,083.0 | $ | 1,161.3 | ||||||||||
Gross profit | $ | 222.6 | $ | 240.7 | $ | 219.7 | $ | 231.7 | ||||||||||
Net income(1) | $ | 36.1 | $ | 15.8 | $ | 24.4 | $ | 48.0 | ||||||||||
Net income attributable to Greif, Inc.(1) | $ | 32.3 | $ | 11.4 | $ | 20.7 | $ | 44.4 | ||||||||||
Earnings per share | ||||||||||||||||||
Basic:Class A Common Stock | $ | 0.55 | $ | 0.19 | $ | 0.35 | $ | 0.74 | ||||||||||
Class B Common Stock | $ | 0.81 | $ | 0.29 | $ | 0.52 | $ | 1.12 | ||||||||||
Diluted: | $ | 0.55 | $ | 0.19 | $ | 0.35 | $ | 0.74 | ||||||||||
Class A Common Stock | ||||||||||||||||||
Class B Common Stock | $ | 0.81 | $ | 0.29 | $ | 0.52 | $ | 1.12 | ||||||||||
Earnings per share were calculated using the following number of shares: | ||||||||||||||||||
Basic:Class A Common Stock | 26,260,943 | 26,386,439 | 26,441,986 | 26,441,986 | ||||||||||||||
Class B Common Stock | 22,007,725 | 22,007,725 | 22,007,725 | 22,007,725 | ||||||||||||||
Diluted: | 26,414,280 | 26,386,439 | 26,442,595 | 26,512,331 | ||||||||||||||
Class A Common Stock | ||||||||||||||||||
Class B Common Stock | 22,007,725 | 22,007,725 | 22,007,725 | 22,007,725 | ||||||||||||||
Market price (Class A Common Stock): | $ | 44.63 | $ | 40.82 | $ | 40.56 | $ | 43.82 | ||||||||||
High |
(in millions, except per share amounts) | 2020 | ||||
January 31, | April 30, | July 31, | October 31, | ||
Low | $38.64 | $24.10 | $27.57 | $34.44 | |
Close | $38.77 | $33.08 | $34.38 | $40.59 | |
Market price (Class B Common Stock): | $51.40 | $48.45 | $43.65 | $47.19 | |
High | |||||
Low | $45.05 | $30.80 | $34.94 | $38.29 | |
Close | $45.05 | $38.50 | $38.67 | $43.25 | |
(in millions, except per share amounts) | 2019 | ||||||||||||
January 31 | April 30 | July 31 | October 31 | ||||||||||
Net sales | $ | 897.0 | $ | 1,213.3 | $ | 1,252.6 | $ | 1,232.1 | |||||
Gross profit | $ | 172.8 | $ | 248.7 | $ | 279.4 | $ | 259.0 | |||||
Net income(1) | $ | 35.8 | $ | 21.1 | $ | 67.5 | $ | 69.8 | |||||
Net income attributable to Greif, Inc.(1) | $ | 29.7 | $ | 13.6 | $ | 62.7 | $ | 65.0 | |||||
Earnings per share | |||||||||||||
Basic:Class A Common Stock | $ | 0.51 | $ | 0.23 | $ | 1.06 | $ | 1.09 | |||||
Class B Common Stock | $ | 0.75 | $ | 0.34 | $ | 1.59 | $ | 1.65 | |||||
Diluted: | $ | 0.51 | $ | 0.23 | $ | 1.06 | $ | 1.09 | |||||
Class A Common Stock | |||||||||||||
Class B Common Stock | $ | 0.75 | $ | 0.34 | $ | 1.59 | $ | 1.65 | |||||
Earnings per share were calculated using the following number of shares: | |||||||||||||
Basic:Class A Common Stock | 25,991,433 | 26,250,460 | 26,257,943 | 26,257,943 | |||||||||
Class B Common Stock | 22,007,725 | 22,007,725 | 22,007,725 | 22,007,725 | |||||||||
Diluted: | 25,991,433 | 26,255,112 | 26,257,943 | 26,360,148 | |||||||||
Class A Common Stock | |||||||||||||
Class B Common Stock | 22,007,725 | 22,007,725 | 22,007,725 | 22,007,725 | |||||||||
Market price (Class A Common Stock): | $ | 49.28 | $ | 41.49 | $ | 39.15 | $ | 40.59 | |||||
High | |||||||||||||
Low | $ | 31.22 | $ | 37.10 | $ | 30.74 | $ | 30.05 | |||||
Close | $ | 37.67 | $ | 38.59 | $ | 34.57 | $ | 39.17 | |||||
Market price (Class B Common Stock): | $ | 50.55 | $ | 48.57 | $ | 47.69 | $ | 48.76 | |||||
High | |||||||||||||
Low | $ | 36.87 | $ | 42.48 | $ | 41.10 | $ | 37.96 | |||||
Close | $ | 43.18 | $ | 47.23 | $ | 42.39 | $ | 47.03 | |||||
NOTE 18 - REDEEMABLE NONCONTROLLING INTERESTS
Mandatorily Redeemable Noncontrolling Interests
(in millions)
Balance as of October 31, 2018
Current period mark to redemption value
Balance as of October 31, 2019
Current period mark to redemption value
Balance as of October 31, 2020
Redeemable Noncontrolling Interests
(in millions)
Balance as of October 31, 2018
Current period mark to redemption value
Repurchase of redeemable shareholder interest
Redeemable noncontrolling interest share of income and other Dividends to redeemable noncontrolling interest and other Balance as of October 31, 2019
Current period mark to redemption value
Redeemable noncontrolling interest share of income and other Dividends to redeemable noncontrolling interest and other Balance as of October 31, 2020
Mandatorily Redeemable
Noncontrolling Interest
$ 8.6
(0.2)
8.4
-
$ 8.4
Redeemable
Noncontrolling Interest $ 35.5 (4.9) (11.9) 2.3 0.3 21.3 (0.4) 0.1 (1.0) $ 20.0
NOTE 19 - SUBSEQUENT EVENTS
Report of Independent Registered Public Accounting Firm
Opinion on the Financial Statements
Internal
Control-Integrated Framework (2013)
Change in Accounting Principle
Leases (Topic 842)
Basis for Opinion
Critical Audit Matters
Goodwill-Paper Packaging & Services Reporting Unit - Refer to Note 3 to the Financial Statements
Critical Audit Matter Description
How the Critical Audit Matter Was Addressed in the Audit
•
•
•
•
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES
ITEM 9A. CONTROLS AND PROCEDURES
Changes in Internal Control Over Financial Reporting
Disclosure Controls and Procedures
•
•
•
Management's Annual Report on Internal Control over Financial Reporting
•
•
•
•
Report of Independent Registered Public Accounting Firm
Opinion on Internal Control over Financial Reporting
Internal Control-Integrated Framework (2013)
Internal Control-Integrated Framework (2013)
Basis for Opinion
Definition and Limitations of Internal Control over Financial Reporting
ITEM 9B. OTHER INFORMATION
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 11. EXECUTIVE COMPENSATION
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
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Greif Inc. published this content on 13 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 January 2021 13:31:03 UTC