☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 |
A Delaware corporation | 101 Oakley Street, Evansville, Indiana, 47710 (812) 424-2904 | IRS employer identification number 20-5234618 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.01 par value per share | BERY | New York Stock Exchange LLC |
Large Accelerated Filer ☒ | Accelerated Filer ☐ | Non-Accelerated Filer ☐ | Smaller Reporting Company ☐ | Emerging Growth Company ☐ |
Part I. | Financial Information | Page No. | |
Item 1. | Financial Statements: | ||
4 | |||
5 | |||
6 | |||
7 | |||
8 | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Part II. | Other Information | ||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. | |||
Item 1. | Financial Statements |
Quarterly Period Ended | Three Quarterly Periods Ended | Quarterly Period Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | January 1, 2022 | January 2, 2021 | |||||||||||||||||||
Net sales | $ | 3,675 | $ | 2,910 | $ | 10,181 | $ | 8,701 | $ | 3,573 | $ | 3,136 | ||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of goods sold | 3,049 | 2,272 | 8,273 | 6,959 | 3,038 | 2,518 | ||||||||||||||||||
Selling, general and administrative | 207 | 198 | 668 | 631 | 235 | 241 | ||||||||||||||||||
Amortization of intangibles | 72 | 74 | 219 | 226 | 68 | 74 | ||||||||||||||||||
Restructuring and transaction activities | 4 | 19 | 41 | 55 | 3 | (1 | ) | |||||||||||||||||
Operating income | 343 | 347 | 980 | 830 | 229 | 304 | ||||||||||||||||||
Other expense, net | 14 | (7 | ) | 45 | 6 | |||||||||||||||||||
Interest expense, net | 76 | 110 | 257 | 339 | ||||||||||||||||||||
Other expense | 0 | 25 | ||||||||||||||||||||||
Interest expense | 71 | 97 | ||||||||||||||||||||||
Income before income taxes | 253 | 244 | 678 | 485 | 158 | 182 | ||||||||||||||||||
Income tax expense | 59 | 53 | 173 | 121 | 37 | 52 | ||||||||||||||||||
Net income | $ | 194 | $ | 191 | $ | 505 | $ | 364 | $ | 121 | $ | 130 | ||||||||||||
Net income per share: | ||||||||||||||||||||||||
Basic | $ | 1.44 | $ | 1.44 | $ | 3.76 | $ | 2.75 | $ | 0.89 | $ | 0.97 | ||||||||||||
Diluted | 1.40 | 1.42 | 3.67 | 2.71 | 0.87 | 0.96 |
Quarterly Period Ended | Three Quarterly Periods Ended | Quarterly Period Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | January 1, 2022 | January 2, 2021 | |||||||||||||||||||
Net income | $ | 194 | $ | 191 | $ | 505 | $ | 364 | $ | 121 | $ | 130 | ||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Currency translation | 91 | 11 | 196 | (54 | ) | (22 | ) | 178 | ||||||||||||||||
Pension | 0 | 0 | 0 | (1 | ) | |||||||||||||||||||
Derivative instruments | (2 | ) | (13 | ) | 69 | (109 | ) | 29 | 17 | |||||||||||||||
Other comprehensive income (loss) | 89 | (2 | ) | 265 | (164 | ) | ||||||||||||||||||
Other comprehensive income | 7 | 195 | ||||||||||||||||||||||
Comprehensive income | $ | 283 | $ | 189 | $ | 770 | $ | 200 | $ | 128 | $ | 325 |
July 3, 2021 | September 26, 2020 | January 1, 2022 | October 2, 2021 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 804 | $ | 750 | $ | 582 | $ | 1,091 | ||||||||
Accounts receivable, net | 1,851 | 1,469 | ||||||||||||||
Accounts receivable | 1,828 | 1,879 | ||||||||||||||
Finished goods | 913 | 708 | 1,056 | 960 | ||||||||||||
Raw materials and supplies | 822 | 560 | 985 | 947 | ||||||||||||
Prepaid expenses and other current assets | 198 | 168 | 237 | 217 | ||||||||||||
Assets held for sale | 0 | 162 | ||||||||||||||
Total current assets | 4,588 | 3,817 | 4,688 | 5,094 | ||||||||||||
Noncurrent assets: | ||||||||||||||||
Property, plant, and equipment | 4,731 | 4,561 | ||||||||||||||
Property, plant and equipment | 4,672 | 4,677 | ||||||||||||||
Goodwill and intangible assets | 7,599 | 7,670 | 7,329 | 7,434 | ||||||||||||
Right-of-use assets | 577 | 562 | 543 | 562 | ||||||||||||
Other assets | 82 | 91 | 109 | 115 | ||||||||||||
Total assets | $ | 17,577 | $ | 16,701 | $ | 17,341 | $ | 17,882 | ||||||||
Liabilities and stockholders’ equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 1,556 | $ | 1,115 | $ | 1,582 | $ | 2,041 | ||||||||
Accrued employee costs | 327 | 324 | 259 | 336 | ||||||||||||
Other current liabilities | 771 | 644 | 803 | 788 | ||||||||||||
Current portion of long-term debt | 225 | 75 | 20 | 21 | ||||||||||||
Liabilities held for sale | 0 | 25 | ||||||||||||||
Total current liabilities | 2,879 | 2,183 | 2,664 | 3,186 | ||||||||||||
Noncurrent liabilities: | ||||||||||||||||
Long-term debt, less current portion | 9,469 | 10,162 | ||||||||||||||
Long-term debt | 9,411 | 9,439 | ||||||||||||||
Deferred income taxes | 546 | 601 | 578 | 568 | ||||||||||||
Employee benefit obligations | 354 | 368 | 264 | 276 | ||||||||||||
Operating lease liabilities | 480 | 464 | 448 | 466 | ||||||||||||
Other long-term liabilities | 896 | 831 | 682 | 767 | ||||||||||||
Total liabilities | 14,624 | 14,609 | 14,047 | 14,702 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Common stock (135.4 and 133.6 million shares issued, respectively) | 1 | 1 | ||||||||||||||
Common stock (135.2 and 135.5 million shares issued, respectively) | 1 | 1 | ||||||||||||||
Additional paid-in capital | 1,125 | 1,034 | 1,170 | 1,134 | ||||||||||||
Retained earnings | 2,113 | 1,608 | 2,412 | 2,341 | ||||||||||||
Accumulated other comprehensive loss | (286 | ) | (551 | ) | (289 | ) | (296 | ) | ||||||||
Total stockholders’ equity | 2,953 | 2,092 | 3,294 | 3,180 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 17,577 | $ | 16,701 | $ | 17,341 | $ | 17,882 |
Quarterly Period Ended | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||
Balance at April 3, 2021 | $ | 1 | $ | 1,101 | $ | (375 | ) | $ | 1,919 | $ | 2,646 | |||||||||
Net income | 0 | 0 | 0 | 194 | 194 | |||||||||||||||
Other comprehensive income | 0 | 0 | 89 | 0 | 89 | |||||||||||||||
Share-based compensation | 0 | 6 | 0 | 0 | 6 | |||||||||||||||
Proceeds from issuance of common stock | 0 | 18 | 0 | 0 | 18 | |||||||||||||||
Balance at July 3, 2021 | $ | 1 | $ | 1,125 | $ | (286 | ) | $ | 2,113 | $ | 2,953 | |||||||||
Balance at March 28, 2020 | $ | 1 | $ | 976 | $ | (548 | ) | $ | 1,222 | $ | 1,651 | |||||||||
Net income | 0 | 0 | 0 | 191 | 191 | |||||||||||||||
Other comprehensive loss | 0 | 0 | (2 | ) | 0 | (2 | ) | |||||||||||||
Share-based compensation | 0 | 4 | 0 | 0 | 4 | |||||||||||||||
Proceeds from issuance of common stock | 0 | 3 | 0 | 0 | 3 | |||||||||||||||
Acquisition (a) | 0 | 22 | 0 | 0 | 22 | |||||||||||||||
Balance at June 27, 2020 | $ | 1 | $ | 1,005 | $ | (550 | ) | $ | 1,413 | $ | 1,869 |
Three Quarterly Periods Ended | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||
Balance at September 26, 2020 | $ | 1 | $ | 1,034 | $ | (551 | ) | $ | 1,608 | $ | 2,092 | |||||||||
Net income | 0 | 0 | 0 | 505 | 505 | |||||||||||||||
Other comprehensive income | 0 | 0 | 265 | 0 | 265 | |||||||||||||||
Share-based compensation | 0 | 34 | 0 | 0 | 34 | |||||||||||||||
Proceeds from issuance of common stock | 0 | 57 | 0 | 0 | 57 | |||||||||||||||
Balance at July 3, 2021 | $ | 1 | $ | 1,125 | $ | (286 | ) | $ | 2,113 | $ | 2,953 | |||||||||
Balance at September 28, 2019 | $ | 1 | $ | 949 | $ | (386 | ) | $ | 1,054 | $ | 1,618 | |||||||||
Net income | 0 | 0 | 0 | 364 | 364 | |||||||||||||||
Other comprehensive loss | 0 | 0 | (164 | ) | 0 | (164 | ) | |||||||||||||
Share-based compensation | 0 | 28 | 0 | 0 | 28 | |||||||||||||||
Proceeds from issuance of common stock | 0 | 6 | 0 | 0 | 6 | |||||||||||||||
Acquisition (a) | 0 | 22 | 0 | 0 | 22 | |||||||||||||||
Adoption of lease accounting standard | 0 | 0 | 0 | (5 | ) | (5 | ) | |||||||||||||
Balance at June 27, 2020 | $ | 1 | $ | 1,005 | $ | (550 | ) | $ | 1,413 | $ | 1,869 |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total | ||||||||||||||||
Balance at October 2, 2021 | $ | 1 | $ | 1,134 | $ | (296 | ) | $ | 2,341 | $ | 3,180 | |||||||||
Net income | 0 | 0 | 0 | 121 | 121 | |||||||||||||||
Other comprehensive income | 0 | 0 | 7 | 0 | 7 | |||||||||||||||
Share-based compensation | 0 | 21 | 0 | 0 | 21 | |||||||||||||||
Proceeds from issuance of common stock | 0 | 16 | 0 | 0 | 16 | |||||||||||||||
Common stock repurchased and retired | 0 | (1 | ) | 0 | (50 | ) | (51 | ) | ||||||||||||
Balance at January 1, 2022 | $ | 1 | $ | 1,170 | $ | (289 | ) | $ | 2,412 | $ | 3,294 | |||||||||
Balance at September 26, 2020 | $ | 1 | $ | 1,034 | $ | (551 | ) | $ | 1,608 | $ | 2,092 | |||||||||
Net income | 0 | 0 | 0 | 130 | 130 | |||||||||||||||
Other comprehensive income | 0 | 0 | 195 | 0 | 195 | |||||||||||||||
Share-based compensation | 0 | 21 | 0 | 0 | 21 | |||||||||||||||
Proceeds from issuance of common stock | 0 | 7 | 0 | 0 | 7 | |||||||||||||||
Balance at January 2, 2021 | $ | 1 | $ | 1,062 | $ | (356 | ) | $ | 1,738 | $ | 2,445 |
Three Quarterly Periods Ended | Quarterly Period Ended | |||||||||||||||
July 3, 2021 | June 27, 2020 | January 1, 2022 | January 2, 2021 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 505 | $ | 364 | $ | 121 | $ | 130 | ||||||||
Adjustments to reconcile net cash provided by operating activities: | ||||||||||||||||
Adjustments to reconcile net cash from operating activities: | ||||||||||||||||
Depreciation | 420 | 412 | 143 | 141 | ||||||||||||
Amortization of intangibles | 219 | 226 | 68 | 74 | ||||||||||||
Non-cash interest | 26 | 18 | ||||||||||||||
Non-cash interest expense | 3 | 8 | ||||||||||||||
Deferred income tax | (53 | ) | 30 | (12 | ) | (19 | ) | |||||||||
Share-based compensation expense | 34 | 28 | 21 | 21 | ||||||||||||
Other non-cash operating activities, net | 60 | 23 | (8 | ) | 5 | |||||||||||
Changes in working capital | (278 | ) | (93 | ) | (637 | ) | (49 | ) | ||||||||
Changes in other assets and liabilities | (21 | ) | (29 | ) | (3 | ) | 4 | |||||||||
Net cash from operating activities | 912 | 979 | (304 | ) | 315 | |||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment, net | (520 | ) | (419 | ) | (162 | ) | (162 | ) | ||||||||
Divestitures | 165 | 0 | ||||||||||||||
Settlement of net investment hedges | 0 | 281 | ||||||||||||||
Other | 0 | (14 | ) | |||||||||||||
Divestiture of business | 0 | 140 | ||||||||||||||
Net cash from investing activities | (355 | ) | (152 | ) | (162 | ) | (22 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term borrowings | 2,716 | 1,202 | 0 | 750 | ||||||||||||
Repayments on long-term borrowings | (3,287 | ) | (1,859 | ) | (5 | ) | (985 | ) | ||||||||
Proceeds from issuance of common stock | 57 | 6 | 16 | 7 | ||||||||||||
Repurchase of common stock | (51 | ) | 0 | |||||||||||||
Debt financing costs | (20 | ) | (16 | ) | 0 | (6 | ) | |||||||||
Net cash from financing activities | (534 | ) | (667 | ) | (40 | ) | (234 | ) | ||||||||
Effect of exchange rate changes on cash | 31 | (4 | ) | |||||||||||||
Net change in cash | 54 | 156 | ||||||||||||||
Effect of currency translation on cash | (3 | ) | 38 | |||||||||||||
Net change in cash and cash equivalents | (509 | ) | 97 | |||||||||||||
Cash and cash equivalents at beginning of period | 750 | 750 | 1,091 | 750 | ||||||||||||
Cash and cash equivalents at end of period | $ | 804 | $ | 906 | $ | 582 | $ | 847 |
Quarterly Period Ended | Three Quarterly Periods Ended | Quarterly Period Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | January 1, 2022 | January 2, 2021 | |||||||||||||||||||
Consumer Packaging International | $ | 3 | $ | 14 | $ | 44 | $ | 37 | $ | 2 | $ | 3 | ||||||||||||
Consumer Packaging North America | 0 | 2 | 1 | 6 | 1 | 1 | ||||||||||||||||||
Health, Hygiene & Specialties | 0 | 1 | 0 | 6 | (1 | ) | 0 | |||||||||||||||||
Engineered Materials | 1 | 2 | (4 | ) | 6 | 1 | (5 | ) | ||||||||||||||||
Consolidated | $ | 4 | $ | 19 | $ | 41 | $ | 55 | $ | 3 | $ | (1 | ) |
(1) | January 2, 2021 includes $7 million pretax gain on the sale of U.S. Flexible Packaging Converting business |
Restructuring | ||||||||||||||||||||
Employee Severance and Benefits | Facility Exit Costs | Non-cash Impairment Charges | Transaction Activities | Total | ||||||||||||||||
Balance as of September 26, 2020 | $ | 10 | $ | 7 | $ | 0 | $ | 0 | $ | 17 | ||||||||||
Charges | 7 | 2 | 1 | 31 | 41 | |||||||||||||||
Non-cash items | 0 | 0 | (1 | ) | (30 | ) | (31 | ) | ||||||||||||
Cash | (14 | ) | (3 | ) | 0 | (1 | ) | (18 | ) | |||||||||||
Balance as of July 3, 2021 | $ | 3 | $ | 6 | $ | 0 | $ | 0 | $ | 9 |
Restructuring | ||||||||||||
Employee Severance and Benefits | Facility Exit Costs | Total | ||||||||||
Balance at October 2, 2021 | $ | 6 | $ | 5 | $ | 11 | ||||||
Charges | 2 | 1 | 3 | |||||||||
Cash | (2 | ) | (1 | ) | (3 | ) | ||||||
Balance at January 1, 2022 | $ | 6 | $ | 5 | $ | 11 |
Leases | Classification | July 3, 2021 | September 26, 2020 | Classification | January 1, 2022 | October 2, 2021 | ||||||||||||
Operating leases: | ||||||||||||||||||
Operating lease right-of-use assets | Right-of-use assets | $ | 577 | $ | 562 | Right-of-use asset | $ | 543 | $ | 562 | ||||||||
Current operating lease liabilities | Other current liabilities | 114 | 115 | Other current liabilities | 111 | 113 | ||||||||||||
Noncurrent operating lease liabilities | Operating lease liability | 480 | 464 | Operating lease liability | 448 | 466 | ||||||||||||
Finance leases: | ||||||||||||||||||
Finance lease right-of-use assets | Property, plant, and equipment, net | $ | 62 | $ | 78 | Property, plant, and equipment, net | $ | 53 | $ | 57 | ||||||||
Current finance lease liability | Current portion of long-term debt | 16 | 17 | |||||||||||||||
Current finance lease liabilities | Current portion of long-term debt | 14 | 14 | |||||||||||||||
Noncurrent finance lease liabilities | Long-term debt, less current portion | 41 | 59 | Long-term debt, less current portion | 35 | 38 |
Cash paid for amounts included in lease liabilities | Three Quarterly Periods Ended July 3, 2021 | Three Quarterly Periods Ended June 27, 2020 | ||||||
Operating cash flows from operating leases | $ | 85 | $ | 86 | ||||
Operating cash flows from finance leases | 2 | 3 | ||||||
Financing cash flows from finance leases | 19 | 25 |
Quarterly Period Ended | ||||||||||
Lease Type | Cash Flow Classification | Lease Expense Category | January 1, 2022 | January 2, 2021 | ||||||
Operating | Operating | Lease cost | $ | 34 | $ | 31 | ||||
Finance | Operating | Interest expense | 1 | 1 | ||||||
Finance | Financing | 2 | 11 | |||||||
Finance | _ | Amortization of right-of-use assets | 3 | 4 |
Facility | Maturity Date | July 3, 2021 | September 26, 2020 | Maturity Date | January 1, 2022 | October 2, 2021 | ||||||||||||
Term loan | July 2026 | $ | 3,440 | 4,208 | July 2026 | $ | 3,440 | 3,440 | ||||||||||
Revolving line of credit | May 2024 | 0 | 0 | May 2024 | 0 | 0 | ||||||||||||
0.95% First Priority Senior Secured Notes | February 2024 | 800 | 0 | February 2024 | 800 | 800 | ||||||||||||
1.00% First Priority Senior Secured Notes (a) | July 2025 | 829 | 814 | July 2025 | 792 | 810 | ||||||||||||
1.57% First Priority Senior Secured Notes | January 2026 | 1,525 | 0 | January 2026 | 1,525 | 1,525 | ||||||||||||
4.875% First Priority Senior Secured Notes | July 2026 | 1,250 | 1,250 | July 2026 | 1,250 | 1,250 | ||||||||||||
1.65% First Priority Senior Secured Notes | January 2027 | 400 | 0 | January 2027 | 400 | 400 | ||||||||||||
1.50% First Priority Senior Secured Notes (a) | July 2027 | 445 | 436 | July 2027 | 424 | 434 | ||||||||||||
5.125% Second Priority Senior Secured Notes | July 2023 | 200 | 300 | |||||||||||||||
4.50% Second Priority Senior Secured Notes | February 2026 | 300 | 500 | February 2026 | 300 | 300 | ||||||||||||
5.625% Second Priority Senior Secured Notes | July 2027 | 500 | 500 | July 2027 | 500 | 500 | ||||||||||||
Debt discounts and deferred fees | (81 | ) | (85 | ) | (73 | ) | (77 | ) | ||||||||||
Finance leases and other | Various | 86 | 121 | Various | 73 | 78 | ||||||||||||
Retired debt | Various | 0 | 2,193 | |||||||||||||||
Total long-term debt | 9,694 | 10,237 | 9,431 | 9,460 | ||||||||||||||
Current portion of long-term debt | (225 | ) | (75 | ) | (20 | ) | (21 | ) | ||||||||||
Long-term debt, less current portion | $ | 9,469 | 10,162 | $ | 9,411 | 9,439 |
(a) | Euro denominated |
Derivative Instruments | Hedge Designation | Balance Sheet Location | July 3, 2021 | September 26, 2020 | Hedge Designation | Balance Sheet Location | January 1, 2022 | October 2, 2021 | ||||||||||||
Cross-currency swaps | Designated | Other long-term liabilities | $ | 419 | $ | 270 | Designated | Other long-term liabilities | 286 | 323 | ||||||||||
Interest rate swaps | Designated | Other long-term liabilities | 92 | 226 | Designated | Other long-term liabilities | 47 | 82 | ||||||||||||
Interest rate swaps | Not designated | Other long-term liabilities | 53 | 0 | Not designated | Other long-term liabilities | 46 | 49 |
Quarterly Period Ended | Three Quarterly Periods Ended | Quarterly Period Ended | ||||||||||||||||||||||||
Derivative Instruments | Statements of Income Location | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | Statements of Income Location | January 1, 2022 | January 2, 2021 | ||||||||||||||||||
Cross-currency swaps | Interest expense, net | $ | (2 | ) | $ | (2 | ) | $ | (6 | ) | $ | (5 | ) | Interest expense | $ | (3 | ) | $ | (3 | ) | ||||||
Interest rate swaps | Interest expense, net | 18 | 13 | 52 | 17 | Interest expense | 13 | 17 |
As of July 3, 2021 | As of January 1, 2022 | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | �� | Impairment | Level 1 | Level 2 | Level 3 | Total | Impairment | ||||||||||||||||||||||||||||||
Indefinite-lived trademarks | $ | 0 | $ | 0 | $ | 248 | $ | 248 | $ | 0 | $ | 0 | $ | 0 | $ | 248 | $ | 248 | $ | 0 | ||||||||||||||||||||
Goodwill | 0 | 0 | 5,265 | 5,265 | 0 | 0 | 0 | 5,162 | 5,162 | 0 | ||||||||||||||||||||||||||||||
Definite lived intangible assets | 0 | 0 | 2,086 | 2,086 | 0 | 0 | 0 | 1,919 | 1,919 | 0 | ||||||||||||||||||||||||||||||
Property, plant, and equipment | 0 | 0 | 4,731 | 4,731 | 1 | 0 | 0 | 4,672 | 4,672 | 0 | ||||||||||||||||||||||||||||||
Total | $ | 0 | $ | 0 | $ | 12,330 | $ | 12,330 | $ | 1 | $ | 0 | $ | 0 | $ | 12,001 | $ | 12,001 | $ | 0 |
As of September 26, 2020 | As of October 2, 2021 | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Impairment | Level 1 | Level 2 | Level 3 | Total | Impairment | |||||||||||||||||||||||||||||||
Indefinite-lived trademarks | $ | 0 | $ | 0 | $ | 248 | $ | 248 | $ | 0 | $ | 0 | $ | 0 | $ | 248 | $ | 248 | $ | 0 | ||||||||||||||||||||
Goodwill | 0 | 0 | 5,173 | 5,173 | 0 | 0 | 0 | 5,192 | 5,192 | 0 | ||||||||||||||||||||||||||||||
Definite lived intangible assets | 0 | 0 | 2,249 | 2,249 | 0 | 0 | 0 | 1,994 | 1,994 | 0 | ||||||||||||||||||||||||||||||
Property, plant, and equipment | 0 | 0 | 4,561 | 4,561 | 2 | 0 | 0 | 4,677 | 4,677 | 1 | ||||||||||||||||||||||||||||||
Total | $ | 0 | $ | 0 | $ | 12,231 | $ | 12,231 | $ | 2 | $ | 0 | $ | 0 | $ | 12,111 | $ | 12,111 | $ | 1 |
Quarterly Period Ended | Three Quarterly Periods Ended | Quarterly Period Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | January 1, 2022 | January 2, 2021 | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
Consumer Packaging International | $ | 1,095 | $ | 904 | $ | 3,143 | $ | 2,804 | $ | 1,056 | $ | 988 | ||||||||||||
Consumer Packaging North America | 847 | 644 | 2,264 | 1,888 | 852 | 686 | ||||||||||||||||||
Health, Hygiene & Specialties | 828 | 669 | 2,349 | 1,923 | 818 | 740 | ||||||||||||||||||
Engineered Materials | 905 | 693 | 2,425 | 2,086 | 847 | 722 | ||||||||||||||||||
Total net sales | $ | 3,675 | $ | 2,910 | $ | 10,181 | $ | 8,701 | $ | 3,573 | $ | 3,136 | ||||||||||||
Operating income: | ||||||||||||||||||||||||
Consumer Packaging International | $ | 79 | $ | 80 | $ | 214 | $ | 176 | $ | 69 | $ | 76 | ||||||||||||
Consumer Packaging North America | 76 | 78 | 212 | 191 | 46 | 59 | ||||||||||||||||||
Health, Hygiene & Specialties | 113 | 95 | 323 | 208 | 62 | 96 | ||||||||||||||||||
Engineered Materials | 75 | 94 | 231 | 255 | 52 | 73 | ||||||||||||||||||
Total operating income | $ | 343 | $ | 347 | $ | 980 | $ | 830 | $ | 229 | $ | 304 | ||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||
Consumer Packaging International | $ | 88 | $ | 78 | $ | 258 | $ | 239 | $ | 82 | $ | 84 | ||||||||||||
Consumer Packaging North America | 53 | 58 | 164 | 174 | 54 | 56 | ||||||||||||||||||
Health, Hygiene & Specialties | 43 | 45 | 130 | 138 | 45 | 45 | ||||||||||||||||||
Engineered Materials | 28 | 28 | 87 | 87 | 30 | 30 | ||||||||||||||||||
Total depreciation and amortization | $ | 212 | $ | 209 | $ | 639 | $ | 638 | $ | 211 | $ | 215 |
Quarterly Period Ended | Three Quarterly Periods Ended | |||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||
Net sales: | ||||||||||||||||
United States and Canada | $ | 1,937 | $ | 1,430 | $ | 5,342 | $ | 4,648 | ||||||||
Europe | 1,308 | 1,172 | 3,658 | 3,156 | ||||||||||||
Rest of world | 430 | 308 | 1,181 | 897 | ||||||||||||
Total net sales | $ | 3,675 | $ | 2,910 | $ | 10,181 | $ | 8,701 |
Quarterly Period Ended | Three Quarterly Periods Ended | |||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||
Net sales: | ||||||||||||||||
Packaging | 81 | 83 | 80 | 82 | ||||||||||||
Non-packaging | 19 | 17 | 20 | 18 | ||||||||||||
Consumer Packaging International | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Rigid Open Top | 58 | 54 | 56 | 55 | ||||||||||||
Rigid Closed Top | 42 | 46 | 44 | 45 | ||||||||||||
Consumer Packaging North America | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Health | 19 | 19 | 19 | 16 | ||||||||||||
Hygiene | 47 | 47 | 46 | 48 | ||||||||||||
Specialties | 34 | 34 | 35 | 36 | ||||||||||||
Health, Hygiene & Specialties | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Core Films | 66 | 64 | 63 | 62 | ||||||||||||
Retail & Industrial | 34 | 36 | 37 | 38 | ||||||||||||
Engineered Materials | 100 | % | 100 | % | 100 | % | 100 | % |
Quarterly Period Ended | ||||||||
January 1, 2022 | January 2, 2021 | |||||||
Net sales: | ||||||||
United States & Canada | $ | 1,952 | $ | 1,677 | ||||
Europe | 1,217 | 1,093 | ||||||
Rest of world | 404 | 366 | ||||||
Total net sales | $ | 3,573 | $ | 3,136 |
Quarterly Period Ended | Three Quarterly Periods Ended | Quarterly Period Ended | ||||||||||||||||||||||
(in millions, except per share amounts) | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | January 1, 2022 | January 2, 2021 | ||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Consolidated net income | $ | 194 | $ | 191 | $ | 505 | $ | 364 | $ | 121 | $ | 130 | ||||||||||||
Denominator | ||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 135.1 | 132.5 | 134.3 | 132.4 | 135.4 | 133.6 | ||||||||||||||||||
Dilutive shares | 3.4 | 1.7 | 3.4 | 1.9 | 3.5 | 2.1 | ||||||||||||||||||
Weighted average common and common equivalent shares outstanding - diluted | 138.5 | 134.2 | 137.7 | 134.3 | 138.9 | 135.7 | ||||||||||||||||||
Per common share income | ||||||||||||||||||||||||
Per common share earnings | ||||||||||||||||||||||||
Basic | $ | 1.44 | $ | 1.44 | $ | 3.76 | $ | 2.75 | $ | 0.89 | $ | 0.97 | ||||||||||||
Diluted | $ | 1.40 | $ | 1.42 | $ | 3.67 | $ | 2.71 | $ | 0.87 | $ | 0.96 |
Quarterly Period Ended | Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Derivative Instruments | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at April 3, 2021 | $ | (173 | ) | $ | (116 | ) | $ | (86 | ) | $ | (375 | ) | ||||
Other comprehensive income (loss) before reclassifications | 91 | 0 | (5 | ) | 86 | |||||||||||
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | 3 | 3 | ||||||||||||
Balance at July 3, 2021 | $ | (82 | ) | $ | (116 | ) | $ | (88 | ) | $ | (286 | ) |
Quarterly Period Ended | Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Derivative Instruments | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at October 2, 2021 | $ | (154 | ) | $ | (67 | ) | $ | (75 | ) | $ | (296 | ) | ||||
Other comprehensive income before reclassifications | (22 | ) | 0 | 26 | 4 | |||||||||||
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | 3 | 3 | ||||||||||||
Balance at January 1, 2022 | $ | (176 | ) | $ | (67 | ) | $ | (46 | ) | $ | (289 | ) |
Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Derivative Instruments | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at March 28, 2020 | $ | (344 | ) | $ | (57 | ) | $ | (147 | ) | $ | (548 | ) | ||||
Other comprehensive loss before reclassifications | 11 | 0 | (23 | ) | (12 | ) | ||||||||||
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | 10 | 10 | ||||||||||||
Balance at June 27, 2020 | $ | (333 | ) | $ | (57 | ) | $ | (160 | ) | $ | (550 | ) |
Three Quarterly Periods Ended | Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Derivative Instruments | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at September 26, 2020 | $ | (278 | ) | $ | (116 | ) | $ | (157 | ) | $ | (551 | ) | ||||
Other comprehensive income before reclassifications | 196 | 0 | 62 | 258 | ||||||||||||
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | 7 | 7 | ||||||||||||
Balance at July 3, 2021 | $ | (82 | ) | $ | (116 | ) | $ | (88 | ) | $ | (286 | ) |
Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Derivative Instruments | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at September 28, 2019 | $ | (279 | ) | $ | (56 | ) | $ | (51 | ) | $ | (386 | ) | ||||
Other comprehensive loss before reclassifications | (54 | ) | (1 | ) | (126 | ) | (181 | ) | ||||||||
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | 17 | 17 | ||||||||||||
Balance at June 27, 2020 | $ | (333 | ) | $ | (57 | ) | $ | (160 | ) | $ | (550 | ) |
Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Derivative Instruments | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at September 26, 2020 | $ | (278 | ) | $ | (116 | ) | $ | (157 | ) | $ | (551 | ) | ||||
Other comprehensive income before reclassifications | 178 | 0 | 15 | 193 | ||||||||||||
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | 2 | 2 | ||||||||||||
Balance at January 2, 2021 | $ | (100 | ) | $ | (116 | ) | $ | (140 | ) | $ | (356 | ) |
Consolidated Overview | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 3,675 | $ | 2,910 | $ | 765 | 26 | % | $ | 3,573 | $ | 3,136 | $ | 437 | 14 | % | ||||||||||||||||
Cost of goods sold | 3,049 | 2,272 | 777 | 34 | % | 3,038 | 2,518 | 520 | 21 | % | ||||||||||||||||||||||
Other operating expenses | 283 | 291 | (8 | ) | (3 | )% | 306 | 314 | (8 | ) | (3 | )% | ||||||||||||||||||||
Operating income | $ | 343 | $ | 347 | $ | (4 | ) | (1 | )% | $ | 229 | $ | 304 | $ | (75 | ) | (25 | )% |
Consumer Packaging International | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 1,095 | $ | 904 | $ | 191 | 21 | % | $ | 1,056 | $ | 988 | $ | 68 | 7 | % | ||||||||||||||||
Cost of goods sold | 894 | 694 | 200 | 29 | % | |||||||||||||||||||||||||||
Other operating expenses | 122 | 130 | (8 | ) | (6 | )% | ||||||||||||||||||||||||||
Operating income | $ | 79 | $ | 80 | $ | (1 | ) | (1 | )% | $ | 69 | $ | 76 | $ | (7 | ) | (9 | )% |
Consumer Packaging North America | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 847 | $ | 644 | $ | 203 | 32 | % | $ | 852 | $ | 686 | $ | 166 | 24 | % | ||||||||||||||||
Cost of goods sold | 716 | 511 | 205 | 40 | % | |||||||||||||||||||||||||||
Other operating expenses | 55 | 55 | — | — | ||||||||||||||||||||||||||||
Operating income | $ | 76 | $ | 78 | $ | (2 | ) | (3 | )% | $ | 46 | $ | 59 | $ | (13 | ) | (22 | )% |
Health, Hygiene & Specialties | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 828 | $ | 669 | $ | 159 | 24 | % | ||||||||
Cost of goods sold | 664 | 522 | 142 | 27 | % | |||||||||||
Other operating expenses | 51 | 52 | (1 | ) | (2 | )% | ||||||||||
Operating income | $ | 113 | $ | 95 | $ | 18 | 19 | % |
Health, Hygiene & Specialties | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 818 | $ | 740 | $ | 78 | 11 | % | ||||||||
Operating income | $ | 62 | $ | 96 | $ | (34 | ) | (35 | )% |
Engineered Materials | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 905 | $ | 693 | $ | 212 | 31 | % | $ | 847 | $ | 722 | $ | 125 | 17 | % | ||||||||||||||||
Cost of goods sold | 775 | 545 | 230 | 42 | % | |||||||||||||||||||||||||||
Other operating expenses | 55 | 54 | 1 | 2 | % | |||||||||||||||||||||||||||
Operating income | $ | 75 | $ | 94 | $ | (19 | ) | (20 | )% | $ | 52 | $ | 73 | $ | (21 | ) | (29 | )% |
Other expense, net | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Other expense, net | $ | 14 | $ | (7 | ) | $ | 21 | (300 | )% |
Other expense | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Other expense | $ | — | $ | 25 | $ | (25 | ) | (100 | )% |
Interest expense, net | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Interest expense, net | $ | 76 | $ | 110 | $ | (34 | ) | (31 | )% |
Interest expense | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Interest expense | $ | 71 | $ | 97 | $ | (26 | ) | (27 | )% |
Consolidated Overview | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 10,181 | $ | 8,701 | $ | 1,480 | 17 | % | ||||||||
Cost of goods sold | 8,273 | 6,959 | 1,314 | 19 | % | |||||||||||
Other operating expenses | 928 | 912 | 16 | 2 | % | |||||||||||
Operating income | $ | 980 | $ | 830 | $ | 150 | 18 | % |
Consumer Packaging International | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 3,143 | $ | 2,804 | $ | 339 | 12 | % | ||||||||
Cost of goods sold | 2,528 | 2,229 | 299 | 13 | % | |||||||||||
Other operating expenses | 401 | 399 | 2 | 1 | % | |||||||||||
Operating income | $ | 214 | $ | 176 | $ | 38 | 22 | % |
Consumer Packaging North America | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 2,264 | $ | 1,888 | $ | 376 | 20 | % | ||||||||
Cost of goods sold | 1,871 | 1,528 | 343 | 22 | % | |||||||||||
Other operating expenses | 181 | 169 | 12 | 7 | % | |||||||||||
Operating income | $ | 212 | $ | 191 | $ | 21 | 11 | % |
Health, Hygiene & Specialties | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 2,349 | $ | 1,923 | $ | 426 | 22 | % | ||||||||
Cost of goods sold | 1,846 | 1,535 | 311 | 20 | % | |||||||||||
Other operating expenses | 180 | 180 | — | — | ||||||||||||
Operating income | $ | 323 | $ | 208 | $ | 115 | 55 | % |
Engineered Materials | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 2,425 | $ | 2,086 | $ | 339 | 16 | % | ||||||||
Cost of goods sold | 2,028 | 1,667 | 361 | 22 | % | |||||||||||
Other operating expenses | 166 | 164 | 2 | 1 | % | |||||||||||
Operating income | $ | 231 | $ | 255 | $ | (24 | ) | (9 | )% |
Other expense, net | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Other expense, net | $ | 45 | $ | 6 | $ | 39 | 650 | % |
Interest expense, net | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Interest expense, net | $ | 257 | $ | 339 | $ | (82 | ) | (24 | )% |
January 1, 2022 | Fiscal 2022 Outlook | |||||||
Cash flow from operating activities | $ | (304 | ) | $ | 1,800 - 1,700 | |||
Additions to property, plant and equipment, net | (162 | ) | (800 | ) | ||||
Free cash flow | $ | (466 | ) | $ | 1,000 - 900 |
Three Quarterly Periods Ended | Quarterly Period Ended | |||||||
July 3, 2021 | January 1, 2022 | |||||||
Net sales | $ | 5,135 | $ | 1,890 | ||||
Gross profit | 928 | 266 | ||||||
Earnings from continuing operations | 273 | 63 | ||||||
Net income | $ | 273 | $ | 63 |
July 3, 2021 | September 26, 2020 | January 1, 2022 | October 2, 2021 | |||||||||||||
Assets | ||||||||||||||||
Current assets | $ | 2,034 | $ | 1,417 | $ | 2,094 | $ | 2,293 | ||||||||
Noncurrent assets | 5,778 | 6,153 | 5,952 | 5,979 | ||||||||||||
Liabilities | ||||||||||||||||
Current liabilities | $ | 1,470 | $ | 841 | $ | 1,258 | $ | 1,533 | ||||||||
Intercompany payable | 858 | 572 | ||||||||||||||
Noncurrent liabilities | 11,247 | 11,936 | 10,977 | 11,083 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Dollar Value of Shares that May Yet be Purchased Under the Program (in millions) | ||||||||||||
Fiscal October | — | $ | — | — | $ | 393 | ||||||||||
Fiscal November | 665,138 | 70.11 | 665,138 | 347 | ||||||||||||
Fiscal December | 62,602 | 70.17 | 62,602 | 342 | ||||||||||||
Total | 727,740 | $ | 70.11 | 727,740 | $ | 342 |
(a) | All open market purchases during the quarter were made under the fiscal 2018 authorization from our board of directors to purchase up to $500 million of shares of common stock. This program was terminated with the new authorization from our board of directors in February 2022. Under the new authorization, the Company may purchase up to $1 billion of shares of common stock. (See Note 13.) |
Exhibit No. | Description of Exhibit | |
Subsidiary Guarantors | ||
31.1* | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer. | |
31.2* | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer. | |
32.1** | Section 1350 Certification of the Chief Executive Officer. | |
32.2** | Section 1350 Certification of the Chief Financial Officer. | |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104 | Cover Page Interactive Date File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Filed herewith |
** | Furnished herewith |
Berry Global Group, Inc. | |||
By: | /s/ Mark W. Miles | ||
Mark W. Miles | |||
Chief Financial Officer |